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NEW QUESTION # 10
HOTSPOT
Extract from the Project Product Description (with errors)
The information in Column 1 may be entered in the Product Description for the chosen label design.
Column 2 is a list of the quality headings (excluding Quality Method) in a Product Description. For each entry in Column 1 decide if it should be included in the Product Description headings shown and select the heading from Column 2 under which it should be recorded.
Drop down the right answer
Hot Area:
Answer:
Explanation:
NEW QUESTION # 11
Which 2 statements should be recorded under the Business options heading?
- A. The re-engineering of selected business functions would not provide the required outcome.
- B. The lack of up-to-date technology in MFH means a re-engineering of existing services will not necessarily deliver the performance improvements required.
- C. Set up a PRINCE2 project to deliver the outsourced services.
- D. Review a list of service providers to determine a short-list of possible service providers.
- E. Use external consultants to provide guidance on the detailed design of the outsourced services.
Answer: C,E
Explanation:
Explanation/Reference: http://www.whatisprince2.net/prince2-theme-business-case.php
NEW QUESTION # 12
Scenario
Additional Information
Further information on some resources who could be involved in the project:
Outcome Account Manager: He represents Outcome which is a recruitment agency that provides specialist outsourcing resources. Outcome provided the consultants who carried out the feasibility study and the same consultants will be providing support and guidance to the Information Technology and Facilities teams during the project.
Director of Finance Division: She was transferred from the Information Technology Division 12 months ago.
She is responsible for ensuring a cost-conscious approach is adopted in all operational and project activities across the Ministry of Food Hygiene.
Hardware Manager: Reports to the Director of Information Technology. He provides computer hardware to all business functions but has little awareness of the needs of his colleagues working in software.
Payroll Manager: Reports to the Director of Finance. He is a very experienced and efficient qualified accountant who has much of the responsibility of running the Finance Division on behalf of the Director of Finance. He has been involved in drafting the Ministry's business strategy and assisting in a full business risk assessment. He also drafted the corporate Business Case standards.
Which 2 alternative actions apply to the proposed Senior User for this project?
- A. Replace with 'Director of Research and Development' because she deals with both the Information Technology and the Facilities Divisions and can make sure her division's needs are specified.
- B. Remove because he has no authority to commit user resources.
- C. Retain because he provides the outsourcing resources required to support the project.
- D. Retain because he will be providing support to the Information Technology and Facilities teams during the project.
- E. Add 'Hardware Manager' because he provides computer hardware to all business functions and will be impacted by the outcome.
Answer: A,B
NEW QUESTION # 13
Scenario
Extract from the Project Product Description (with errors)
Which 2 statements apply to the Acceptance criteria section?
- A. Delete entry 24 because this is NOT a suitable acceptance criteria for this project.
- B. Move entry 21 to Composition because the photos are part of the final product.
- C. Move entry 23 to Derivation because the Data Protection Act already exists.
- D. Delete entry 22 because the development of the new company logo is not within the scope of the Calendar project.
- E. Amend entry 21 to 'Appearance - 12 photos each showing different members of staff.
Answer: D,E
NEW QUESTION # 14
At the end of stage 2, the specialist 'e-learning course' supplier will be selected. As a result, it is decided that
the quality management approach will not be created until the end of stage 2, to take into account this
supplier's standards and techniques.
Is this appropriate, and why?
- A. No, because the quality management approach should be created during the initiation stage and updated
later. - B. No, because the quality management approach should be limited to ABC Company's quality standards.
- C. Yes, because the quality management approach should take into account the supplier's standards, tools
and techniques. - D. Yes, because the product description for each product will define the required quality approach within each
stage.
Answer: C
NEW QUESTION # 15
Scenario
Additional Information
During the initiation stage the Project Manager met with the Marketing Director to find out more about the requirements of the promotional calendar and recorded the following notes:
There has been a reduction in the order numbers at the MNO Manufacturing due in part to the increased marketing activities of its competitors. 10% of customers have not re-ordered in this financial year and staff morale is poor. A number of skilled staff have left as a result and replacement staff have not been recruited due to the reduced operation. If the project is successful, a recruitment campaign will be required to fill the existing staff vacancies and there may be a requirement for additional staff. Operational costs are likely to increase because skilled staff are expensive and difficult to find.
In financial terms, there were a total of 1,500 orders in the last financial year, each with an average profit of
£2k. The Marketing department believes that sending a promotional calendar to our current and prospective customers would increase orders by at least 10% with a minimum of 10 further orders from the list of prospective customers within 12 months from the date of distribution.
The Marketing Director will be funding the project from the business marketing budget. She believes that the effect of a good company image portrayed by a successful calendar would last into a second year. She has forecast the same increase in orders for a second year and predicts that the annual employee satisfaction survey will show a measurable improvement in staff morale.
A number of alternatives were explored, including:
* 20% discount for all repeat customers - not cost-effective and very short term
* A promotional calendar as a free Christmas gift - would target current and prospective customers and the benefits would last into a second year
* A series of television and press advertisements was too expensive
* A direct mail shot to all customers - benefit would be short term
* Creation of an internet website - would not suit all customers
The calendar is seen as the favored option, as long as the company's competitors do not increase their marketing activity. Whilst the Marketing department wants a very high quality, glossy product, the project management team must be aware of the cost this will incur.
Using the Project Scenario and the additional Information provided for this question In the Scenario Booklet, answer the following question.
Which 2 statements should be recorded under the Business options heading?
- A. Create the photographs for the calendar internally.
- B. Use a professional photographer to create the photographs for the calendar.
- C. Produce a promotional calendar as a free Christmas gift to current and prospective customers.
- D. Outsource the creation of the calendar to a professional marketing company.
- E. Do nothing.
Answer: C,E
NEW QUESTION # 16
In which strategy would the change control process be recorded?
- A. Communication Management Strategy
- B. Risk Management Strategy
- C. Quality Management Strategy
- D. Configuration Management Strategy
Answer: D
NEW QUESTION # 17
Scenario
A photographer from Portraits Ltd, a professional photographic company, has taken on the role of Team Manager after taking some time to understand the requirements of the project. A contract for their services has been set up and is being monitored by the Purchasing Manager and a Work Package has been agreed. This contract specifies that the photographer must arrange a meeting with the Engineering Manager to establish a schedule for the photo sessions to minimize the impact on the Engineering staff.
This meeting should have occurred by now.
The Engineering Manager was made aware of this requirement but when asked he reported that he has received no communication from the photographer. The Project Manager has tried to call the photographer and has had no response. The Project Manager believes there is a risk that Portraits Ltd are overbooking work and prioritizing other clients' work. If Portraits ltd do not deliver on schedule the project will be delayed and the expected benefits will be reduced.
The contract is to be reviewed and Portraits Ltd reminded of their agreement.
The project is now in stage 2. The Project Manager has heard about the possibility of a competitor also producing a calendar to be delivered earlier than the target date for this project. There is a threat that the early release of a competitor's calendar may weaken the impact of the MNO Manufacturing Company calendar, thereby reducing the anticipated benefits of the Calendar project.
Which 2 statements should be recorded under the Risk management procedure heading?
- A. 'Reduce' Response actions which result in a lower impact and/or probability rating.
- B. Any risk which has an expected value of more than £1 k will NOT be registered.
- C. When a new problem arises, a full impact analysis will be undertaken to assess the impact on the project' objectives and Business Case.
- D. Every threat and opportunity identified must be clearly defined in terms of cause, event and effect.
- E. Probability will be assessed against the scales defined in this Risk Management Strategy.
Answer: D,E
NEW QUESTION # 18
The project is now in stage 2. The Project Manager has heard about the possibility of a competitor also
producing a calendar to be delivered earlier than the target date for this project. There is a threat that the early
release of a competitor's calendar may weaken the impact of the MNO Manufacturing Company calendar,
thereby reducing the anticipated benefits of the Calendar project.
Which 2 statements should be recorded under the Risk management procedure heading?
- A. 'Reduce' Response actions which result in a lower impact and/or probability rating.
- B. Any risk which has an expected value of more than E1 k will NOT be registered.
- C. When a new problem arises, a full impact analysis will be undertaken to assess the impact on the project'
objectives and Business Case. - D. Every threat and opportunity identified must be clearly defined in terms of cause, event and effect.
- E. Probability will be assessed against the scales defined in this Risk Management Strategy.
Answer: D,E
NEW QUESTION # 19
ABC Company has decided to include the Health and Safety Training Project in a programme to support their
strategy to deliver globally. The programme team has provided the detailed business justification and, as a
result, the project board has decided that the business case will not need refining further during the 'initiating a
project' process.
Is this an appropriate action for the project board, and why?
- A. Yes, because the project board are able to use the business case provided by the programme.
- B. No, because each project in the programme will need a revised business case.
- C. Yes, because when the project is part of a programme, the programme team provides the business case.
- D. No, because the programme team cannot constrain the project manager's choices.
Answer: A
NEW QUESTION # 20
Which of the following should NOT be included in the business case?
- A. Major Risks
- B. Business options
- C. Business approach
- D. Reasons
Answer: C
NEW QUESTION # 21
Who is responsible for appointing the Project Manager?
- A. The Project Board
- B. Project Assurance
- C. Corporate or Programme Management
- D. The Executive
Answer: D
NEW QUESTION # 22
The service level agreement contains a number of technical terms that are missing from its glossary of terms.
- A. Raise an issue (request for change).
- B. Raise an issue (off-specification).
- C. Obtain agreement from the Director of Facilities Division to add these into the glossary of terms within the
remaining +2 days tolerance. - D. No action required.
Answer: C
NEW QUESTION # 23
During stage 3, the project scope was extended to include a practice test for learners to take during the training course. The cost of this test will be included in the cost of the course.
The change to project scope was approved and the cost of £2,500 was paid for from the change budget. The project manager documented an increase of £2,500 in the project budget in the business case.
Is this an appropriate action, and why?
- A. Yes, because the project manager determines which costs need to be updated at the end of each stage
- B. Yes, because the justification for the project should be recalculated based on the revised project budget.
- C. No, because the use of the change budget means that the project budget does not need to be increased.
- D. No, because changes to operational costs post-project should have been included in the business case.
Answer: A
NEW QUESTION # 24
A construction company that is one of ABC Company's key clients has agreed to provide a member of the staff to review and comment on the 'e-learning course'.
Which stakeholder interest should the member of staff represent, and why?
- A. Supplier, because this stakeholder provides the expertise required by the project.
- B. User, because this stakeholder may train its staff using the 'e-learning course'.
- C. Supplier, because this stakeholder is an external supplier.
- D. User, because this stakeholder ensures that the project provides value for money.
Answer: B
NEW QUESTION # 25
Project Scenario
Calendar Project (Note: The companies and people within the scenario are fictional.) There has been a reduction in fie number of orders at the MNO Manufacturing Company due in part to the increased marketing activities of its competitors. To help counter this, the company has decided to create a promotional calendar for next year for all its current and prospective customers. The end product of this project will be a prepared calendar pack, ready for printing. The design of the calendar will be similar to one sent out previously, and must reflect the company image as described in the existing corporate branding standards. Another project is currently producing a new company logo when is to be printed on each page of the promotional calendar. The prepared calendar pack will consist of:
* Design for each month - correctly showing at public holidays and new company logo
* Selected photographs- 12 professionally-produced photographs, showing different members of staff
* Selected paper and selected envelope - for printing and mailing the calendar
* Chosen label design - a competition to design a label will be held as part of this project
* List of customers - names and addresses of customers to whom the calendar will be sent.
The project is currently in initiation and will have two further stages:
Stage 2 will include tie activities to:
* Create the customer fast using information from the Accounts and Marketing departments
* Confirm compliance with the Data Protection Legislation
* Create a design for each month - this will be done by the internal creative team
* Select and appoint a professional photographer
* Gather photograph design ideas from previous project and agree photographic session schedule
* Prepare a production cost forecast
* Select paper and envelope.
Stage 3 will include the activities to:
* Produce and select tie professionally-taken photographs
* Hold the label design competition and choose the label design
* Assemble the prepared calendar pack.
A production cost forecast, based on the options and costs for the paper, envelope, printing and marketing of the calendar is to be produced in stage 2. However, the actual production and distribution of the calendars is not within the scope of the project. The product cost forecast will be reviewed by the Project Board to determine whether tie project should continue.
It is now 05 October and the prepared calendar pack must be delivered to the print company by 30 November, to enable printing and distribution of the calendar in time for Christmas. The cost of the activities to develop the specialist products and the cost of the project management activities are estimated to be £20,000. There is a project time tolerance of +1 week /-2 weeks and a project cost tolerance of +£6,000 / -£6,000. A change budget of £500 has been allocated but there is no risk budget.
During stage 2, if the Project Manager decides to recommend that the Project Plan is revised to finish three weeks later, which statement is correct?
- A. The revision of the Project Plan would have to wait until the end stage assessment of stage 2.
- B. The current project must close prematurely and be restarted with a new Project Plan, a new Business Case and new Risk Register.
- C. The tolerances stated in the Project Plan CANNOT be changed.
- D. The Executive needs to seek formal approval from corporate management to implement this change.
Answer: D
NEW QUESTION # 26
Which 2 statements correctly define a Business Case risk which should be recorded under the Major risks heading?
- A. If any competitors launch a calendar at the same time this will reduce the impact of the MNO calendar and benefits will be reduced.
- B. Operational costs will increase as a result of the recruitment campaign.
- C. The prepared calendar pack is to be delivered to the printers by the first week in December.
- D. If the calendar quality is poor customers will not use it, creating the reverse effect and reducing orders further.
- E. Staff morale will improve as a result of the promotional calendar.
Answer: A,D
Explanation:
Explanation/Reference:
Business Case Theme
Testlet 2
Scenario
A central government department, the Ministry of Food Hygiene (MFH), faces increasing pressure to cut costs, better manage suppliers' performance and reduce the confusion caused by inadequate internal controls, outdated standards and outdated technology. External consultants were employed to conduct a feasibility study to identify options to address the problems, and the likely costs and benefits. The following options were considered:
● Do nothing.
● Re-engineer selected business functions.
● Outsource selected business functions.
The feasibility study concluded that there was a case for outsourcing the MFH Information Technology Division and the Facilities Division (maintenance of buildings and grounds). The recommendations were:
● One service provider should be contracted to provide the services currently provided by the Information Technology Division and the Facilities Division.
● A 10-year service contract should be agreed with the selected service provider.
The feasibility study developed high-level designs of the current organization, processes, systems and operating models, plus an outline Business Case for the required project. The external consultants also made the following recommendations for the management of the project:
● Use PRINCE2.
● Set up the project with 4 management stages:
Stage 1. Standard PRINCE2 initiation activities.
Stage 2. Create detailed designs (future organization, processes, systems and operating models) and the service level agreement between MFH and the future service provider.
Stage 3. Request and evaluate proposals, select service provider and agree contract.
Stage 4. Transfer equipment and staff, transfer responsibility for service provision and run trial period.
Initial estimates indicated that the project would cost E2.5m and take two years to complete.
MFH senior management agreed that there was a case for outsourcing, and accepted the recommendations as a basis for the project. There is an expected saving of E20m over 10 years.
The Outsourcing project has completed the Starting up a Project process and is now in the initiation stage.
Because of the strategic importance of the project, the MFH Chief Executive Officer has taken the role of Executive. A PRINCE2-experienced Project Manager has been appointed from within MFH. Staff within the business functions being outsourced will work with the external consultants who conducted the feasibility study to define the detailed designs.
NEW QUESTION # 27
Which of the following activities is the Executive responsible for?
- A. Assess and update the Business Case at the end of each stage
- B. Responsible for the Benefits Review Plan post project
- C. Ensure the desired outcome of the project is specified
- D. Responsible for the benefits review plan
Answer: D
Explanation:
Explanation/Reference:
Testlet 1
Scenario
Additional Information
Chief Executive Officer (CEO): He started the company 25 years ago and knows his job very well. He injured his leg two years ago which has restricted his visits to the engineering area. As CEO he has an overall perspective of the business strategic requirements and the authority to commit resources as required.
Marketing Director: She has been with the company for three years, following a successful career with a publicity company. She has the ability to represent the needs of the business, particularly as this is a marketing project. She has the authority to commit the annual business marketing budget, from which the project will be funded, as she sees appropriate. She will be responsible for monitoring the expected benefits of the calendar, in particular the improvement of the company's image.
Engineering Manager: He has been responsible for many engineering innovations in the company and is still as keen and energetic as the day he started. VVhilst he will not be part of the project team, his staff will feature in the photos for the promotional calendar.
Central Records: This group of five staff looks after all company records and document control. They now maintain all project files.
Bright Lights: This is the local office supplies company. It supplies all the stationery and office equipment needs of the company and will supply the stationery for this project.
Portraits ltd: This is a professional photographic company with a number of excellent photographers and a history of successful work. This company has been selected to take the photos for the company calendar.
It has yet be decided which of the photographers to use.
NEW QUESTION # 28
Which of the following represents the four key characteristics a good Project board should display?
- A. Authority, Credibility, Connections, Delegation
- B. Authority, Credibility, Delegation, Availability
- C. Authority, Credibility, Commitment, Availability
- D. Authority, Availability, Connections, Delegation
Answer: B
NEW QUESTION # 29
The development of the 'e-learning course' will be outsourced to an external supplier and their key members will join the project management team. The supplier wants to keep their work processes confidential and not share these with ABC Company. ABC Company has agreed.
Who should approve the external supplier's team plan?
- A. Senior supplier
- B. Corporate, programme management or customer
- C. Supplier assurance
- D. Project manager
Answer: B
Explanation:
Explanation
NEW QUESTION # 30
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PRINCE2 Practitioner certification exam consists of 68 multiple-choice questions that must be completed within two and a half hours. PRINCE2-Practitioner exam is designed to test the candidate's ability to apply the PRINCE2 methodology to different project scenarios and assess their ability to tailor the methodology to meet project-specific needs. PRINCE2-Practitioner exam covers topics such as project planning, risk management, change management, and project governance. Upon passing the exam, candidates will be awarded the PRINCE2 Practitioner certification, which is valid for three years.
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