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Prince2-Practitioner PRINCE2 7 Practitioner (7th Edition) Exam Questions and Answers

Questions 4

Having completed designing the plan, in which order should the next steps take place to produce a plan?

1. Prepare Estimates

2. Define and analyze Products

3. Prepare the schedule

4. Identify activities and dependencies

Options:

A.

2, 4, 3, 1

B.

4, 2, 1, 3

C.

4, 3, 2, 1

D.

2, 4, 1, 3

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Questions 5

Which principle is supported by the activity Evaluate the Project?

Options:

A.

Continued Business Justification

B.

Defined roles and responsibilities

C.

Learn from experience

D.

Manage by stages

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Questions 6

Which of the following management products ARE updated as part of Managing a stage boundary?

1. Business Case

2. Benefits Review Plan

3. Configuration Item Records

4. Project Brief

Options:

A.

1, 2, 3

B.

1, 3, 4

C.

1, 2, 4

D.

2, 3, 4

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Questions 7

When updating the project plan as part of Managing a stage boundary, what else might be updated?

Options:

A.

Exception Plan

B.

Project Management team

C.

Business Case

D.

Project Initiation Documentation

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Questions 8

Which of the following activities could trigger the production of an exception plan?

Options:

A.

Review Stage status

B.

Giving ad hoc direction

C.

Escalating a project issue

D.

Report stage end

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Questions 9

The Calendar project was delivered as originally planned, and Is now preparing for planned closure.

Lines 1 to 6 in the table below consist of an assertion statement and a reason statement. For each line identify the appropriate option, from options A to E, that applies. Each option can be used once, more than once or not at all.

Prince2-Practitioner Question 9

Options:

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Questions 10

The Manage by Exception principle sets tolerances for six areas of the project, Time. Cost and Quality are three of them, what are the other three?

Options:

A.

Scope, People & Resources, Benefit

B.

Scope, Risk, Product

C.

Risk, Benefit, Product

D.

Scope, Risk, Benefit

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Questions 11

Which of the following statements is FALSE regarding the Continued Business Justification?

Options:

A.

The justification for the project must remain the same throughout the project.

B.

The justification for the project should remain vabd.

C.

The justification for the project may change.

D.

If the project is no longer justified it should be stopped.

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Questions 12

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.

Lines A to E in the table below consist of an assertion statement and a reason statement. For each line identify the appropriate option, from options A to E, that applies. Each option can be used once, more than once or not at all.

Prince2-Practitioner Question 12

Options:

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Questions 13

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 Expected dis-benefits heading?

Options:

A.

A high quality, glossy product will involve additional costs.

B.

Individuals in the engineering team who are not selected to appear in the calendar photographs will become de-motivated.

C.

The calendar may not result in the expected 10% increase in orders.

D.

Because the Calendar project is a priority for the MNO Manufacturing Company, the delivery of other projects within the Marketing department will be delayed.

E.

The calendar may not result in the 10 further orders from the list of prospective customers in 12 months.

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Questions 14

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 Costs heading?

Options:

A.

The MNO marketing budget this year is £120k.

B.

The project will be funded from the business marketing budget

C.

10 further orders with an average profit of £2k will deliver a benefit of £20k in the first year.

D.

The new company logo is estimated to cost £4k.

E.

Project costs are estimated to be a total of £26.5k.

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Questions 15

Project Scenario – Health and Safety Training Project:

ABC Company is a well-established training company that uses a standard model to develop training materials and deliver courses to customers.

ABC Company has commissioned a project in response to recent changes in government legislation relating to health and safety on construction sites. The project will deliver “capability to provide health and safety training”, including the materials needed for classroom-based training and e-learning. The expected benefits for construction companies include a reduction in lost days and legal costs due to accidents.

The e-learning course will be developed by a specialist external consultancy. The materials for classroom-based training will be delivered by ABC Company’s development team. All course materials will be piloted before they are used. ABC Company will deliver training to its customers and also hopes to sell the course materials to other training companies as part of their operational business. ABC Company will use their own sales and marketing departments to promote the courses.

The legislation requires construction companies to comply with the new legislation within two years. The course materials and trainers have to be accredited by a government agency before courses can be delivered. ABC Company is planning to deliver pilot courses within five months of starting the project.

The ABC Company standard development model for new courses recommends the following stages:

Prince2-Practitioner Question 15

End of the Project scenario.

Additional Information:

The Chief Executive Officer (CEO) founded the company five years ago. Under her leadership, ABC Company has grown quickly into a successful training company. It delivers a range of accredited professional training.

The Finance Director is also a founder member of ABC Company and is responsible for authorizing budgets for the Operations and Development Teams. She authorizes all large contracts personally.

The Purchasing Manager reports to the Finance Director and is responsible for managing and monitoring supplier contracts.

The Operations Director is responsible for the delivery off all training and for the training development budget. His department organizes courses, venues and trainers. They work with the Product and the Sales teams to provide a comprehensive training schedule. ABC Company’s IT manager reports to the Operations Director.

The Business Development Director has recently been appointed to identify new training needs and propose new products. She will work with the Operations. Director to ensure a cost- conscious approach and that appropriate development technologies are used for the health and safety course.

The Training Development Manager reports to the Business Development Director and is responsible for developing training materials and gaining accreditation, in accordance with the standard course development model. Course developers in his team have skills in a range of development technologies and are allocated to projects as needed.

The Training Delivery Manager, who reports to the Operations Director, is responsible for ensuring that internal and external trainers deliver ABC Company training courses to the required standard. He also checks course materials to ensure they are fit for purpose and of the required quality.

The Central Services Director has responsibility for corporate communications, facilities management and configuration management. He recently led a project to consolidate all company quality systems into one quality management system and set up a corporate quality department, now managed by the Corporate Quality Manager.

The Corporate Document Manager reports to the Central Services Director. She helped establish the company’s document management system and now operates it across the business. She manages a team of administrators and contracts staff when workload is high.

The Sales Director joined ABC Company two months ago and is keen to establish himself by suggesting new markets for the courses and material. All account managers and the marketing team report to him. They promote existing training courses to other training companies and existing customers.

End of the additional information.

Use the ‘Additional Information’ in the Scenario Booklet to answer this question.

The Operations Director is the executive for the project and has proposed that a senior course developer be appointed as project manager. The course developer works in the Training Development Manager’s team and has a good understanding of the standard course development model. The course developer was a team manager on a previous project for which the Operations Director was the executive.

Is this proposed appointment appropriate, and why?

Options:

A.

Yes, because the course developer is responsible for ensuring that trainers deliver courses to the required standard.

B.

Yes, because the course developer is likely to have the project management and specialist knowledge required.

C.

No, because the course developer’s team reports to the Business Development Director, not the Operations Director.

D.

No, because there is a conflict of interest as the Training Development Manager is responsible for gaining accreditation.

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Questions 16

: 30

Project Scenario – Health and Safety Training Project:

ABC Company is a well-established training company that uses a standard model to develop training materials and deliver courses to customers.

ABC Company has commissioned a project in response to recent changes in government legislation relating to health and safety on construction sites. The project will deliver “capability to provide health and safety training”, including the materials needed for classroom-based training and e-learning. The expected benefits for construction companies include a reduction in lost days and legal costs due to accidents.

The e-learning course will be developed by a specialist external consultancy. The materials for classroom-based training will be delivered by ABC Company’s development team. All course materials will be piloted before they are used. ABC Company will deliver training to its customers and also hopes to sell the course materials to other training companies as part of their operational business. ABC Company will use their own sales and marketing departments to promote the courses.

The legislation requires construction companies to comply with the new legislation within two years. The course materials and trainers have to be accredited by a government agency before courses can be delivered. ABC Company is planning to deliver pilot courses within five months of starting the project.

The ABC Company standard development model for new courses recommends the following stages:

Prince2-Practitioner Question 16

End of the Project scenario.

Additional Information:

The Chief Executive Officer (CEO) founded the company five years ago. Under her leadership, ABC Company has grown quickly into a successful training company. It delivers a range of accredited professional training.

The Finance Director is also a founder member of ABC Company and is responsible for authorizing budgets for the Operations and Development Teams. She authorizes all large contracts personally.

The Purchasing Manager reports to the Finance Director and is responsible for managing and monitoring supplier contracts.

The Operations Director is responsible for the delivery off all training and for the training development budget. His department organizes courses, venues and trainers. They work with the Product and the Sales teams to provide a comprehensive training schedule. ABC Company’s IT manager reports to the Operations Director.

The Business Development Director has recently been appointed to identify new training needs and propose new products. She will work with the Operations. Director to ensure a cost- conscious approach and that appropriate development technologies are used for the health and safety course.

The Training Development Manager reports to the Business Development Director and is responsible for developing training materials and gaining accreditation, in accordance with the standard course development model. Course developers in his team have skills in a range of development technologies and are allocated to projects as needed.

The Training Delivery Manager, who reports to the Operations Director, is responsible for ensuring that internal and external trainers deliver ABC Company training courses to the required standard. He also checks course materials to ensure they are fit for purpose and of the required quality.

The Central Services Director has responsibility for corporate communications, facilities management and configuration management. He recently led a project to consolidate all company quality systems into one quality management system and set up a corporate quality department, now managed by the Corporate Quality Manager.

The Corporate Document Manager reports to the Central Services Director. She helped establish the company’s document management system and now operates it across the business. She manages a team of administrators and contracts staff when workload is high.

The Sales Director joined ABC Company two months ago and is keen to establish himself by suggesting new markets for the courses and material. All account managers and the marketing team report to him. They promote existing training courses to other training companies and existing customers.

End of the additional information.

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?

Options:

A.

Yes, because the project board are able to use the business case provided by the programme.

B.

Yes, because when the project is part of a programme, the programme team provides the business case.

C.

No, because the programme team cannot constrain the project manager’s choices.

D.

No, because each project in the programme will need a revised business case.

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Questions 17

Which of the following statements is TRUE with regard to expected benefits?

Options:

A.

They cannot be assigned

B.

They don ' t need to follow corporate objectives

C.

They should be measurable

D.

Tolerances cannot be set against expected benefits

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Questions 18

Product Summary

A list of customers will be collated. This will use existing information from the Accounts department about current customers, and existing information from the Marketing department about prospective customers.

Using the tariff of mailing costs available from the Post Office, a production cost forecast will be produced to allow the CEO and the Marketing Director to decide whether to continue with the project. If they decide to continue, they will give the approval to launch the internal label design competition. Competition rules will be required to communicate details of the competition to the staff. The chosen label design will then be selected from the competition entries.

The photos for the calendar must be based on existing photo design ideas available from the Marketing department. The selected photos will be chosen from these. Monthly calendar displays will be created to show the required layout of each page.

Product Breakdown Structure (contains errors)

Prince2-Practitioner Question 18

Extract from Stage Plan for stage 3.

(All entries are true statements but may not be shown under the correct heading or in the correct document).

Prince2-Practitioner Question 18

Using the Product Summary and Product Breakdown Structure provided as additional Information for this question In the Scenario Booklet, answer the following question.

Column 1 is a list of some of the entries in the product breakdown structure. Determine whether each entry in Column 1 has been correctly shown in the product breakdown structure. Select from Column 2 the appropriate statement that correctly describes that entry. Each selection from Column 2 can be used once, more than once or not at all.

Prince2-Practitioner Question 18

Options:

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Questions 19

Which of the following is not part of the composition of a Plan?

Options:

A.

Pre-requites

B.

Assumptions

C.

Quality responsibilities

D.

Product descriptions

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Questions 20

Which of the following activities is NOT an action of preparing for planned closure?

Options:

A.

Update the project plan with actual

B.

Update the Project Management Team

C.

Request a product status account

D.

Confirm project has delivered what is defined in Project Product Description

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Questions 21

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.

Column 1 contains a number of risk responses identified by the Project Manager following an assessment of this risk. Column 2 contains a list of threat response types. For each risk response in Column 1, select from Column 2 the type of response it represents. Each option from Column 2 can be used once, more than once or not at all.

Column 1 contains a number of possible risk responses to the above risk. For each risk response, select from Column 2 the appropriate risk threat response type that it represents. Each selection from Column 2 can be used once, more than once or not at all.

Prince2-Practitioner Question 21

Options:

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Questions 22

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 either the Records or Reporting headings?

Options:

A.

Project Support will maintain the Risk Register.

B.

The evaluated net effect of all risks will be updated at the end of each stage and included in the End Stage Report.

C.

The Change Authority will report monthly to the Project Manager on the status of the change budget.

D.

Risks that are likely to occur within the next two weeks should be recorded as imminent.

E.

A summary of risks will be maintained and included with the monthly Highlight Reports to the Project Board.

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Questions 23

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 Roles and responsibilities heading?

Options:

A.

Each risk will be assigned a risk owner.

B.

Risks exceeding the agreed project risk tolerance will be reported to the Project Board.

C.

Risk tolerances are allocated to each stage by the Project Manager.

D.

Project Assurance will ensure that project risks are identified, assessed and controlled according to the agreed risk management procedure.

E.

An external consultant is to facilitate a risk identification workshop.

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Questions 24

Which role is responsible for providing the customer ' s quality expectations and acceptance criteria for the project?

Options:

A.

Executive

B.

Corporate or Programme Management

C.

Senior User

D.

Project Assurance

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Questions 25

Scenario

Additional Information

Product Description

Prince2-Practitioner Question 25

Quality notes from the Daily Log

The Director of Information Technology Division (DIT) has been asked to ensure that any changes to the outsourced staff employment contracts adhere to employment law. The DIT will review future job descriptions of the transferred staff before the final contract is signed with the selected service provider.

The service level agreement between MFH and the selected service provider will specify the type and quality of service required. The selected service provider must follow the industry standards for providing outsourced services.

MFH has a quality management system which contains a document control procedure for all its documentation, however this does not include change management.

All project documents will be subject to a quality review. Nominated products will require a formal approval record signed-off by the quality review chair.

Extract from the draft Quality Management Strategy (may contain errors)

Introduction

1. This document defines the approach to be taken to achieve the required quality levels during the project.

2. The Project Board will have overall responsibility for the Quality Management Strategy.

3. Project Assurance will provide assurance on the implementation of the Quality Management Strategy.

Quality management procedure - Quality standards

4. The selected service provider will operate to industry standards for providing outsourced services.

5. MFH document standards will be used.

Records

6. A Quality Register will be maintained to record the planned quality events and the actual results from the quality activities.

7. Configuration Item Records will be maintained for each product to describe its status, version and variant.

8. Approval records for products that require them will be stored in the quality database.

Roles and responsibilities

9. The DIT will check that the employment contracts for outsourced staff adhere to employment law.

10. Team Managers will provide details of quality checks that have been carried out.

11. Team Managers will ensure that the Quality Register is updated with the names of team members who are involved in the review process.

12. The Senior User will review the Product Descriptions of the products to be produced by the selected service provider to ensure that they can be achieved.

Which statement applies to the Quality standards section?

Options:

A.

Delete entry 4 because external suppliers are responsible for applying any relevant standards to their work.

B.

Delete entry 5 because the lack of a change management procedure makes the MFH document standards unsuitable.

C.

Add ' All contracts must conform to current employment laws " .

D.

Add ' PRINCE2 change control procedures will be used to manage any changes to baselined products ' .

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Questions 26

Scenario

Additional Information

Product Description

Prince2-Practitioner Question 26

Quality notes from the Daily Log

The Director of Information Technology Division (DIT) has been asked to ensure that any changes to the outsourced staff employment contracts adhere to employment law. The DIT will review future job descriptions of the transferred staff before the final contract is signed with the selected service provider.

The service level agreement between MFH and the selected service provider will specify the type and quality of service required. The selected service provider must follow the industry standards for providing outsourced services.

MFH has a quality management system which contains a document control procedure for all its documentation, however this does not include change management.

All project documents will be subject to a quality review. Nominated products will require a formal approval record signed-off by the quality review chair.

Extract from the draft Quality Management Strategy (may contain errors)

Introduction

1. This document defines the approach to be taken to achieve the required quality levels during the project.

2. The Project Board will have overall responsibility for the Quality Management Strategy.

3. Project Assurance will provide assurance on the implementation of the Quality Management Strategy.

Quality management procedure - Quality standards

4. The selected service provider will operate to industry standards for providing outsourced services.

5. MFH document standards will be used.

Records

6. A Quality Register will be maintained to record the planned quality events and the actual results from the quality activities.

7. Configuration Item Records will be maintained for each product to describe its status, version and variant.

8. Approval records for products that require them will be stored in the quality database.

Roles and responsibilities

9. The DIT will check that the employment contracts for outsourced staff adhere to employment law.

10. Team Managers will provide details of quality checks that have been carried out.

11. Team Managers will ensure that the Quality Register is updated with the names of team members who are involved in the review process.

12. The Senior User will review the Product Descriptions of the products to be produced by the selected service provider to ensure that they can be achieved.

Which is a correctly defined acceptance criterion for the running cost of the outsourced service?

Options:

A.

Must be kept to a minimum.

B.

Must be kept to a level acceptable to the Ministry of Food Hygiene.

C.

Subject to market conditions.

D.

The annual increase to be less than half the rate of inflation.

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Questions 27

Which management product defines the detailed nature, purpose and function of a product?

Options:

A.

Plan

B.

Quality Register

C.

Project Product Description

D.

Product Description

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Questions 28

Who is responsible for committing user resources to the project?

Options:

A.

Senior User

B.

Senior Supplier

C.

Executive

D.

Project Board

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Questions 29

The project has a cost tolerance of +5% I ·5%, of which stage 2 has a tolerance of +£45k 1-£45k.

Lines 1 to 6 in the table below consist of an assertion statement and a reason statement. For each line identify the appropriate option, from options A to E, that applies. Each option can be used once, more than once or not at all.

Prince2-Practitioner Question 29

Options:

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Questions 30

Which of the following statements best describes what a risk owner is?

Options:

A.

Best placed to keep an eye on the risk

B.

Carry out the response actions to a risk

C.

Responsible for management, monitoring and control of all aspects of a risk

D.

Reports to the project manager regularly on the status of a risk

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Questions 31

There are four steps in the Risk Management procedure, what are they?

Options:

A.

Identify, Assess, Resource, Implement

B.

Identify, Evaluate, Resource, Implement

C.

Identify, Assess, Plan, Implement

D.

Identify, Evaluate, Plan, Implement

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Questions 32

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 Proximity heading?

Options:

A.

Proximity categories for this project are: Imminent; Within the stage; Within the project; Beyond the project.

B.

The risk of MFH having no outsourcing experience will be categorized as Stage 4 proximity.

C.

Imminent risks are those which may occur within two weeks.

D.

Any risk with a proximity category of imminent will be estimated as having a very high impact.

E.

The risk of staff leaving the organization will be categorized as beyond the project proximity.

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Questions 33

Which of the following reports does not contain any information on risk?

Options:

A.

Issue Report

B.

Highlight report

C.

Lessons Report

D.

End Stage Report

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Questions 34

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?

Options:

A.

When a new problem arises, a full impact analysis will be undertaken to assess the impact on the project ' objectives and Business Case.

B.

Probability will be assessed against the scales defined in this Risk Management Strategy.

C.

Any risk which has an expected value of more than £1 k will NOT be registered.

D.

Every threat and opportunity identified must be clearly defined in terms of cause, event and effect.

E.

' Reduce ' Response actions which result in a lower impact and/or probability rating.

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Questions 35

In which strategy would the change control process be recorded?

Options:

A.

Quality Management Strategy

B.

Configuration Management Strategy

C.

Risk Management Strategy

D.

Communication Management Strategy

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Questions 36

Scenario:

The Ministry of Food Hygiene (MFH) has a quality management system which contains a document control process to manage all documentation requirements. The document control process was created by the MFH Quality Manager, who now maintains all of MFH ' s documents and performs an organization-wide configuration management role. The MFH Quality Manager will administer the configuration management procedure for the Restructuring project since this must comply with the MFH document control process.

Having created the Issue Report and analyzed the impact of removing the Facilities Division from the scope of the Outsourcing project, the proposed option exceeds tolerance. \Nhat is the next action the Project Manager should consider?

Options:

A.

Create an Exception Report to inform the Project Board of the situation and the available options.

B.

Update the associated Configuration Item Records with details of the Issue Report that caused the change.

C.

Amend the Stage Plan for stage 3: remove all products related to the Facilities Division and add the activities required to deliver the new Government initiative.

D.

Create an Exception Plan to change all of the project ' s products to reflect the exclusion of services provided by the Facilities Division.

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Questions 37

Which of the following is the definition for an off-specification?

Options:

A.

An issue the Project Manager needs to resolve or escalate

B.

Something forecast or currently not meeting specification

C.

A proposal for a change to a baseline

D.

A statement of concern

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Questions 38

Scenario:

The Ministry of Food Hygiene (MFH) has a quality management system which contains a document control process to manage all documentation requirements. The document control process was created by the MFH Quality Manager, who now maintains all of MFH ' s documents and performs an organization-wide configuration management role. The MFH Quality Manager will administer the configuration management procedure for the Restructuring project since this must comply with the MFH document control process.

What will be the impact on the benefits?

Options:

A.

Reduced savings, now £10m over 10 years.

B.

Increased savings of £5m over 10 years from the new initiative to centralize the services provided by the Facilities Division.

C.

An additional cost of £1.5m to deliver the services provided by the Facilities Division.

D.

Outsourcing project cost reduced by 50%.

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Questions 39

When examining a project issue, which three aspects should be considered?

1. Performance targets

2. Business Case

3. Resources

4. Risk

Options:

A.

1, 3, 4

B.

2, 3, 4

C.

1, 2, 4

D.

1, 2, 3

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Questions 40

What is the purpose of a Product Status Account?

Options:

A.

A set of records that describe information about the project

B.

A log used to record problems or concerns about products

C.

An audit or review to compare actual status of products

D.

A report covering the status about the state of the projects products within

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Questions 41

Scenario:

The Ministry of Food Hygiene (MFH) has a quality management system which contains a document control process to manage all documentation requirements. The document control process was created by the MFH Quality Manager, who now maintains all of MFH ' s documents and performs an organization-wide configuration management role. The MFH Quality Manager will administer the configuration management procedure for the Restructuring project since this must comply with the MFH document control process.

According to PRINCE2, which statement about the Configuration Management Strategy for the Outsourcing project is correct?

Options:

A.

Every project needs a Configuration Management Strategy, even if the organization has existing configuration management standards, because every project has different circumstances.

B.

A separate Configuration Management Strategy will be required for each of the suppliers within this project because each will have a different way of managing and storing products.

C.

A Configuration Management Strategy is unnecessary for this project because the MFH document control process is documented. It is acceptable simply to reference this in the Quality Management Strategy.

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Questions 42

Scenario:

The Ministry of Food Hygiene (MFH) has a quality management system which contains a document control process to manage all documentation requirements. The document control process was created by the MFH Quality Manager, who now maintains all of MFH ' s documents and performs an organization-wide configuration management role. The MFH Quality Manager will administer the configuration management procedure for the Restructuring project since this must comply with the MFH document control process.

According to PRINCE2, which statement about appointing the MFH Quality Manager to administer the configuration management procedure is correct?

Options:

A.

The MFH Quality Manager should administer the configuration management procedure on this project because this task should always be assigned to corporate or programme management.

B.

The MFH Quality Manager should only administer the configuration management procedure on one project at a time. If the MFH Quality Manager already performs this task on another project, another individual should be appointed.

C.

The MFH Quality Manager would be suitable to perform this task because he is the author of the document control process and is likely to have the knowledge required for this role.

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Questions 43

Which of the following should NOT be included in the business case?

Options:

A.

Reasons

B.

Major Risks

C.

Business options

D.

Business approach

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Questions 44

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 £2.5m 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 £20m 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.

Which 2 statements should be recorded under the Expected benefits heading?

Options:

A.

The 10-year outsourcing contract, at current prices, will be worth £80m.

B.

Outsourcing would allow MFH to take advantage of the best services the outsourcing industry has to offer.

C.

The total expected savings over 10 years, at current prices, is £20m.

D.

The 10-year outsourcing contract will enable MFH to stabilize costs at agreed levels.

E.

The confirmed cost of the Outsourcing project is £2.5m, but with considerable savings over 10 years.

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Questions 45

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?

Options:

A.

Produce a promotional calendar as a free Christmas gift to current and prospective customers.

B.

Use a professional photographer to create the photographs for the calendar.

C.

Create the photographs for the calendar internally.

D.

Outsource the creation of the calendar to a professional marketing company.

E.

Do nothing.

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Questions 46

During which process would the stage tolerances be set?

Options:

A.

Controlling a Stage

B.

Initiating a Project

C.

Managing a Stage Boundary

D.

Directing a Project

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Questions 47

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 Reasons heading?

Options:

A.

The Marketing department believes that sending a promotional calendar to current and prospective customers will increase orders by at least 10%.

B.

10% of customers have not re-ordered in this financial year.

C.

1,500 orders are expected, each with an average profit of £2k.

D.

The Marketing department believes that the effect of a good company image, portrayed by a successful calendar, will last into a second year.

E.

MNO Manufacturing is experiencing a fall in orders due in part to the increased marketing activities of its competitors.

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Questions 48

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.

Whilst identifying the mailing costs for the calendars the Project Manager was surprised to find the costs could vary considerably depending on the size of the package and the delivery service used. For the purpose of this project, the Project Manager has selected an appropriate service but feels that a corporate standard for postage would have reduced the time and effort invested. It could reduce the company ' s overheads by up to £20k per year. How should the Project Manager record this observation within the project?

Options:

A.

Produce a project mandate, outlining the potential savings to be achieved by the introduction of a corporate standard.

B.

Make a note of the observation in the Daily Log to be transferred to a Benefits Review Plan at the end of the project.

C.

Record the observation in an Exception Report to the Project Board.

D.

Make an entry in the Lessons Log for future consideration by corporate management.

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Questions 49

Which of the following is not a factor to consider when determining the length of a stage?

Options:

A.

The amount of resources available h the short term

B.

How far ahead you can sensibly plan n detail

C.

The technical stages within the project

D.

The amount of risk associated with the project

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Questions 50

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.

The team member collating the list of customers has now forecast that it will NOT be complete by the end of this stage as originally planned, due to a number of new prospective customers ' details not yet being available. What action should the team member take?

Options:

A.

Report the forecast delay in the next Checkpoint Report to the Executive.

B.

Add the product to the next Stage Plan in order to allocate additional resources and complete the work.

C.

Make an entry in the Risk Register so the Project Manager can decide on appropriate action.

D.

Raise an issue to inform the Project Manager.

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Questions 51

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.

At the end of initiation there is +1 week 1-2 weeks time tolerance for this project. Which statement is true?

Options:

A.

There can be no time tolerances for any of the stages.

B.

All of the project level time tolerance can be allocated to stage 2.

C.

The Stage Plan for stage 2 could create some additional project time tolerance by allowing no time tolerance in Team Plans.

D.

Additional time tolerance for the project could be found by adding extra resources without affecting other tolerances.

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Questions 52

Who is responsible for confirming stage and project progress against agreed tolerances?

Options:

A.

Project Support

B.

Executive

C.

Project Assurance

D.

Project Manager

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Questions 53

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, an early review of the photo design ideas from the Marketing department has highlighted the need for engineering machinery to be operating in the background during the photo sessions. This requires a change to the baselined Product Description for the photos. What action should the Project Manager take?

Options:

A.

Log the change in the Issue Register as a request for change.

B.

Raise an Exception Report to the Project Board.

C.

Revised the Product Description for the photos and issue it to the Engineering Manager to ensure that the machinery will be operating during the photo sessions.

D.

Include this requirement on the next Checkpoint Report to the photographer.

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Questions 54

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?

Options:

A.

The tolerances stated in the Project Plan CANNOT be changed.

B.

The Executive needs to seek formal approval from corporate management to implement this change.

C.

The current project must close prematurely and be restarted with a new Project Plan, a new Business Case and new Risk Register.

D.

The revision of the Project Plan would have to wait until the end stage assessment of stage 2.

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Questions 55

Project Scenario – Health and Safety Training Project:

ABC Company is a well-established training company that uses a standard model to develop training materials and deliver courses to customers.

ABC Company has commissioned a project in response to recent changes in government legislation relating to health and safety on construction sites. The project will deliver “capability to provide health and safety training”, including the materials needed for classroom-based training and e-learning. The expected benefits for construction companies include a reduction in lost days and legal costs due to accidents.

The e-learning course will be developed by a specialist external consultancy. The materials for classroom-based training will be delivered by ABC Company’s development team. All course materials will be piloted before they are used. ABC Company will deliver training to its customers and also hopes to sell the course materials to other training companies as part of their operational business. ABC Company will use their own sales and marketing departments to promote the courses.

The legislation requires construction companies to comply with the new legislation within two years. The course materials and trainers have to be accredited by a government agency before courses can be delivered. ABC Company is planning to deliver pilot courses within five months of starting the project.

The ABC Company standard development model for new courses recommends the following stages:

Prince2-Practitioner Question 55

End of the Project scenario.

Additional Information:

The Chief Executive Officer (CEO) founded the company five years ago. Under her leadership, ABC Company has grown quickly into a successful training company. It delivers a range of accredited professional training.

The Finance Director is also a founder member of ABC Company and is responsible for authorizing budgets for the Operations and Development Teams. She authorizes all large contracts personally.

The Purchasing Manager reports to the Finance Director and is responsible for managing and monitoring supplier contracts.

The Operations Director is responsible for the delivery off all training and for the training development budget. His department organizes courses, venues and trainers. They work with the Product and the Sales teams to provide a comprehensive training schedule. ABC Company’s IT manager reports to the Operations Director.

The Business Development Director has recently been appointed to identify new training needs and propose new products. She will work with the Operations. Director to ensure a cost- conscious approach and that appropriate development technologies are used for the health and safety course.

The Training Development Manager reports to the Business Development Director and is responsible for developing training materials and gaining accreditation, in accordance with the standard course development model. Course developers in his team have skills in a range of development technologies and are allocated to projects as needed.

The Training Delivery Manager, who reports to the Operations Director, is responsible for ensuring that internal and external trainers deliver ABC Company training courses to the required standard. He also checks course materials to ensure they are fit for purpose and of the required quality.

The Central Services Director has responsibility for corporate communications, facilities management and configuration management. He recently led a project to consolidate all company quality systems into one quality management system and set up a corporate quality department, now managed by the Corporate Quality Manager.

The Corporate Document Manager reports to the Central Services Director. She helped establish the company’s document management system and now operates it across the business. She manages a team of administrators and contracts staff when workload is high.

The Sales Director joined ABC Company two months ago and is keen to establish himself by suggesting new markets for the courses and material. All account managers and the marketing team report to him. They promote existing training courses to other training companies and existing customers.

End of the additional information.

The Training Delivery Manager was identified as the senior user. However, before the project begins, this manager goes on long-term sick leave. The executive says that they do not need to replace the role of senior user on the project board.

Is this an appropriate application of the ' defined roles and responsibilities ' principle, and why?

Options:

A.

Yes, because the executive can ensure that the investment provides value for money.

B.

Yes, because having two out of three of the stakeholder interests represented on the project board is enough.

C.

No, because trainers need to be represented on the project board to ensure the outcomes meet the trainers ' needs.

D.

No, because the resources and expertise required by the project may be internal or external.

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Questions 56

MANAGING A STAGE BOUNDARY

The project is approaching the end of stage 3 and the pilot courses have been planned. The project manager is now undertaking the ' managing a stage boundary ' process.

Which action should the project manager undertake as part of the ' update the business case ' activity?

Options:

A.

Identify the dependencies between the activities required to run the ' delivered pilot courses ' during stage 4.

B.

Revise the overall plan and resources to complete the project, based on actuals from the stage 3 plan.

C.

Review the performance of the external suppliers who worked on delivery of the ' e-learning course ' during stage 3.

D.

Re-plan when the number of learners using the pilot course, and their increased knowledge, will be measured during stage 4.

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Questions 57

The project is part of a program to increase the number of ABC courses that respond to legislation. The program manager has instructed the project manager to deliver the ' e-learning course ' incrementally. The project manager has asked the program manager how often the highlight reports are required, and what format the reports should be presented in.

Is this an appropriate approach to controlling progress, and why?

Options:

A.

Yes, because the approach should support the delivery approach selected by the program.

B.

Yes, because the project event-driven controls need to align to program controls.

C.

No, because the program team should review project progress using peer reviews.

D.

No, because the progress controls should be documented in the project initiation documentation.

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Questions 58

Project Scenario – Health and Safety Training Project:

ABC Company is a well-established training company that uses a standard model to develop training materials and deliver courses to customers.

ABC Company has commissioned a project in response to recent changes in government legislation relating to health and safety on construction sites. The project will deliver “capability to provide health and safety training”, including the materials needed for classroom-based training and e-learning. The expected benefits for construction companies include a reduction in lost days and legal costs due to accidents.

The e-learning course will be developed by a specialist external consultancy. The materials for classroom-based training will be delivered by ABC Company’s development team. All course materials will be piloted before they are used. ABC Company will deliver training to its customers and also hopes to sell the course materials to other training companies as part of their operational business. ABC Company will use their own sales and marketing departments to promote the courses.

The legislation requires construction companies to comply with the new legislation within two years. The course materials and trainers have to be accredited by a government agency before courses can be delivered. ABC Company is planning to deliver pilot courses within five months of starting the project.

The ABC Company standard development model for new courses recommends the following stages:

Prince2-Practitioner Question 58

End of the Project scenario.

Additional Information:

The Chief Executive Officer (CEO) founded the company five years ago. Under her leadership, ABC Company has grown quickly into a successful training company. It delivers a range of accredited professional training.

The Finance Director is also a founder member of ABC Company and is responsible for authorizing budgets for the Operations and Development Teams. She authorizes all large contracts personally.

The Purchasing Manager reports to the Finance Director and is responsible for managing and monitoring supplier contracts.

The Operations Director is responsible for the delivery off all training and for the training development budget. His department organizes courses, venues and trainers. They work with the Product and the Sales teams to provide a comprehensive training schedule. ABC Company’s IT manager reports to the Operations Director.

The Business Development Director has recently been appointed to identify new training needs and propose new products. She will work with the Operations. Director to ensure a cost- conscious approach and that appropriate development technologies are used for the health and safety course.

The Training Development Manager reports to the Business Development Director and is responsible for developing training materials and gaining accreditation, in accordance with the standard course development model. Course developers in his team have skills in a range of development technologies and are allocated to projects as needed.

The Training Delivery Manager, who reports to the Operations Director, is responsible for ensuring that internal and external trainers deliver ABC Company training courses to the required standard. He also checks course materials to ensure they are fit for purpose and of the required quality.

The Central Services Director has responsibility for corporate communications, facilities management and configuration management. He recently led a project to consolidate all company quality systems into one quality management system and set up a corporate quality department, now managed by the Corporate Quality Manager.

The Corporate Document Manager reports to the Central Services Director. She helped establish the company’s document management system and now operates it across the business. She manages a team of administrators and contracts staff when workload is high.

The Sales Director joined ABC Company two months ago and is keen to establish himself by suggesting new markets for the courses and material. All account managers and the marketing team report to him. They promote existing training courses to other training companies and existing customers.

End of the additional information.

During stage 3, a work package was assigned to produce the ' planned pilot courses ' . The product ' s quality criteria were defined and baselined before the work package was agreed.

Which principle is being applied, and why?

Options:

A.

' Focus on products ' , because delivering a product ' s complete set of features is more important than delivering it on time or to cost.

B.

' Focus on products ' , because a product should be agreed and defined to a reasonable extent before production begins.

C.

' Continued business justification ' , because the business justification is partly defined in the product description of a specialist product.

D.

' Continued business justification ' , because both work activities and products contribute to the success of the project.

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Questions 59

The change control approach defines how products should be controlled and protected during the project. The accreditation of the ' classroom-based training materials ' was planned to take place during stage 2. At the end of the stage, the configuration item record shows that the ' classroom-based training materials ' have been accredited. However, the project manager decides to request an audit of the product as well.

Is this appropriate, and why?

Options:

A.

Yes, because the project should verify that the recorded status reflects the actual status of the products.

B.

Yes, because the change control approach should specify how the configuration item records are approved.

C.

No, because the project manager should ensure that the change control approach is tailored to the project.

D.

No, because the issue management and change control procedures can be treated as separate, but related, procedures.

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Questions 60

The project is in stage 3. Zero time tolerance has been given for this stage. When checking progress, the project manager noticed that the checkpoint report from the external supplier of the ' e-learning course ' is late. As work package progress information is missing, the project manager has decided to raise an exception report.

Is this an appropriate action, and why?

Options:

A.

Yes, because an exception report should be used to request guidance on how this situation should be handled.

B.

Yes, because there is zero time tolerance for this stage the checkpoint report must be delivered on time.

C.

No, because the project manager should check the operations and maintenance interfaces in the work package first.

D.

No, because the team plan should be discussed with the supplier to check whether work will be completed on time.

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Questions 61

A change authority has been appointed for the project. During the development of the ' classroom-based training material ' , a large number of changes were proposed to the design of the ' e-learning course ' . Therefore, the change authority has decided to use the Moscow technique to prioritize changes based on the impact they will have on completing each stage on time.

Is this an appropriate application of the Moscow technique, and why?

Options:

A.

Yes, because it should be used to prioritize change based on the estimated impact on time.

B.

Yes, because it is a prioritization technique that should be used to prioritize a product ' s quality criteria.

C.

No, because it should define scope tolerances, supporting the management by exception principle.

D.

No, because it should be used to prioritize change based on the project ' s business justification.

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Questions 62

CONTROLLING A STAGE

During stage 4, an issue was raised by an ABC trainer that the ‘classroom-based training materials’ contained errors, even though they were signed off during stage 3. They had been based on materials from a previous course and still contained references to that course. The impact of this issue is now being assessed.

Here are three actions that were carried out as part of the ‘controlling a stage’ process.

During which activity (A-F) should each action happen?

Choose only one activity for each action. Each activity can be used once, more than once, or not at all.

Prince2-Practitioner Question 62

Options:

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Questions 63

Project Scenario – Health and Safety Training Project:

ABC Company is a well-established training company that uses a standard model to develop training materials and deliver courses to customers.

ABC Company has commissioned a project in response to recent changes in government legislation relating to health and safety on construction sites. The project will deliver “capability to provide health and safety training”, including the materials needed for classroom-based training and e-learning. The expected benefits for construction companies include a reduction in lost days and legal costs due to accidents.

The e-learning course will be developed by a specialist external consultancy. The materials for classroom-based training will be delivered by ABC Company’s development team. All course materials will be piloted before they are used. ABC Company will deliver training to its customers and also hopes to sell the course materials to other training companies as part of their operational business. ABC Company will use their own sales and marketing departments to promote the courses.

The legislation requires construction companies to comply with the new legislation within two years. The course materials and trainers have to be accredited by a government agency before courses can be delivered. ABC Company is planning to deliver pilot courses within five months of starting the project.

The ABC Company standard development model for new courses recommends the following stages:

Prince2-Practitioner Question 63

End of the Project scenario.

Additional Information:

The Chief Executive Officer (CEO) founded the company five years ago. Under her leadership, ABC Company has grown quickly into a successful training company. It delivers a range of accredited professional training.

The Finance Director is also a founder member of ABC Company and is responsible for authorizing budgets for the Operations and Development Teams. She authorizes all large contracts personally.

The Purchasing Manager reports to the Finance Director and is responsible for managing and monitoring supplier contracts.

The Operations Director is responsible for the delivery off all training and for the training development budget. His department organizes courses, venues and trainers. They work with the Product and the Sales teams to provide a comprehensive training schedule. ABC Company’s IT manager reports to the Operations Director.

The Business Development Director has recently been appointed to identify new training needs and propose new products. She will work with the Operations. Director to ensure a cost-conscious approach and that appropriate development technologies are used for the health and safety course.

The Training Development Manager reports to the Business Development Director and is responsible for developing training materials and gaining accreditation, in accordance with the standard course development model. Course developers in his team have skills in a range of development technologies and are allocated to projects as needed.

The Training Delivery Manager, who reports to the Operations Director, is responsible for ensuring that internal and external trainers deliver ABC Company training courses to the required standard. He also checks course materials to ensure they are fit for purpose and of the required quality.

The Central Services Director has responsibility for corporate communications, facilities management and configuration management. He recently led a project to consolidate all company quality systems into one quality management system and set up a corporate quality department, now managed by the Corporate Quality Manager.

The Corporate Document Manager reports to the Central Services Director. She helped establish the company’s document management system and now operates it across the business. She manages a team of administrators and contracts staff when workload is high.

The Sales Director joined ABC Company two months ago and is keen to establish himself by suggesting new markets for the courses and material. All account managers and the marketing team report to him. They promote existing training courses to other training companies and existing customers.

End of the additional information.

ABC Company carried out a similar project two years ago, in response to changes in health and safety legislation for the health service. The experiences from that project were used to refine the corporate risk management policy. For that reason, the project board decided to use the corporate risk management policy in the risk management approach for this project.

Is this appropriate, and why?

Options:

A.

Yes, because experience from previous projects should be taken into account in the risk management approach.

B.

Yes, because the corporate risk management policy was updated, as a result of lessons from previous projects.

C.

No, because the risk management approach should be tailored to suit the project and its environment.

D.

No, because a separate risk management approach is not necessary when the company has a risk management policy.

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Questions 64

Project Scenario – Health and Safety Training Project:

ABC Company is a well-established training company that uses a standard model to develop training materials and deliver courses to customers.

ABC Company has commissioned a project in response to recent changes in government legislation relating to health and safety on construction sites. The project will deliver “capability to provide health and safety training”, including the materials needed for classroom-based training and e-learning. The expected benefits for construction companies include a reduction in lost days and legal costs due to accidents.

The e-learning course will be developed by a specialist external consultancy. The materials for classroom-based training will be delivered by ABC Company’s development team. All course materials will be piloted before they are used. ABC Company will deliver training to its customers and also hopes to sell the course materials to other training companies as part of their operational business. ABC Company will use their own sales and marketing departments to promote the courses.

The legislation requires construction companies to comply with the new legislation within two years. The course materials and trainers have to be accredited by a government agency before courses can be delivered. ABC Company is planning to deliver pilot courses within five months of starting the project.

The ABC Company standard development model for new courses recommends the following stages:

Prince2-Practitioner Question 64

End of the Project scenario.

Additional Information:

The Chief Executive Officer (CEO) founded the company five years ago. Under her leadership, ABC Company has grown quickly into a successful training company. It delivers a range of accredited professional training.

The Finance Director is also a founder member of ABC Company and is responsible for authorizing budgets for the Operations and Development Teams. She authorizes all large contracts personally.

The Purchasing Manager reports to the Finance Director and is responsible for managing and monitoring supplier contracts.

The Operations Director is responsible for the delivery off all training and for the training development budget. His department organizes courses, venues and trainers. They work with the Product and the Sales teams to provide a comprehensive training schedule. ABC Company’s IT manager reports to the Operations Director.

The Business Development Director has recently been appointed to identify new training needs and propose new products. She will work with the Operations. Director to ensure a cost- conscious approach and that appropriate development technologies are used for the health and safety course.

The Training Development Manager reports to the Business Development Director and is responsible for developing training materials and gaining accreditation, in accordance with the standard course development model. Course developers in his team have skills in a range of development technologies and are allocated to projects as needed.

The Training Delivery Manager, who reports to the Operations Director, is responsible for ensuring that internal and external trainers deliver ABC Company training courses to the required standard. He also checks course materials to ensure they are fit for purpose and of the required quality.

The Central Services Director has responsibility for corporate communications, facilities management and configuration management. He recently led a project to consolidate all company quality systems into one quality management system and set up a corporate quality department, now managed by the Corporate Quality Manager.

The Corporate Document Manager reports to the Central Services Director. She helped establish the company’s document management system and now operates it across the business. She manages a team of administrators and contracts staff when workload is high.

The Sales Director joined ABC Company two months ago and is keen to establish himself by suggesting new markets for the courses and material. All account managers and the marketing team report to him. They promote existing training courses to other training companies and existing customers.

End of the additional information.

MANAGING A STAGE BOUNDARY

The ABC Company trainers have been accredited and the course booking procedures have been amended. The ‘managing a stage boundary’ process is taking place at the end of stage 3.

Which activity should occur during the ‘update the business case’ activity?

Options:

A.

Update the overall plan with the time and cost taken to develop the ‘e-learning course’ and ‘amended course booking procedures’

B.

Break the ‘planned pilot courses’ down into component products in order to identify the work required to deliver them.

C.

Review whether the possible sales of the training course to external companies are likely to cover the project costs.

D.

Review whether a new team manager should be appointed to lead the delivery of the pilot courses during stage 4.

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Questions 65

Project Scenario – Health and Safety Training Project:

ABC Company is a well-established training company that uses a standard model to develop training materials and deliver courses to customers.

ABC Company has commissioned a project in response to recent changes in government legislation relating to health and safety on construction sites. The project will deliver “capability to provide health and safety training”, including the materials needed for classroom-based training and e-learning. The expected benefits for construction companies include a reduction in lost days and legal costs due to accidents.

The e-learning course will be developed by a specialist external consultancy. The materials for classroom-based training will be delivered by ABC Company’s development team. All course materials will be piloted before they are used. ABC Company will deliver training to its customers and also hopes to sell the course materials to other training companies as part of their operational business. ABC Company will use their own sales and marketing departments to promote the courses.

The legislation requires construction companies to comply with the new legislation within two years. The course materials and trainers have to be accredited by a government agency before courses can be delivered. ABC Company is planning to deliver pilot courses within five months of starting the project.

The ABC Company standard development model for new courses recommends the following stages:

Prince2-Practitioner Question 65

End of the Project scenario.

Additional Information:

The Chief Executive Officer (CEO) founded the company five years ago. Under her leadership, ABC Company has grown quickly into a successful training company. It delivers a range of accredited professional training.

The Finance Director is also a founder member of ABC Company and is responsible for authorizing budgets for the Operations and Development Teams. She authorizes all large contracts personally.

The Purchasing Manager reports to the Finance Director and is responsible for managing and monitoring supplier contracts.

The Operations Director is responsible for the delivery off all training and for the training development budget. His department organizes courses, venues and trainers. They work with the Product and the Sales teams to provide a comprehensive training schedule. ABC Company’s IT manager reports to the Operations Director.

The Business Development Director has recently been appointed to identify new training needs and propose new products. She will work with the Operations. Director to ensure a cost-conscious approach and that appropriate development technologies are used for the health and safety course.

The Training Development Manager reports to the Business Development Director and is responsible for developing training materials and gaining accreditation, in accordance with the standard course development model. Course developers in his team have skills in a range of development technologies and are allocated to projects as needed.

The Training Delivery Manager, who reports to the Operations Director, is responsible for ensuring that internal and external trainers deliver ABC Company training courses to the required standard. He also checks course materials to ensure they are fit for purpose and of the required quality.

The Central Services Director has responsibility for corporate communications, facilities management and configuration management. He recently led a project to consolidate all company quality systems into one quality management system and set up a corporate quality department, now managed by the Corporate Quality Manager.

The Corporate Document Manager reports to the Central Services Director. She helped establish the company’s document management system and now operates it across the business. She manages a team of administrators and contracts staff when workload is high.

The Sales Director joined ABC Company two months ago and is keen to establish himself by suggesting new markets for the courses and material. All account managers and the marketing team report to him. They promote existing training courses to other training companies and existing customers.

End of the additional information.

ABC Company uses a standard development model to develop courses and uses PRINCE2 to manage these projects. The objectives from the Health and Safety Training Project have been documented in the business plan of ABC Company. This business plan has triggered this project. As a result, to save time, the executive has decided to simplify the ‘starting up a project’ process. The project mandate will be adapted and becomes the project brief.

Is this appropriate, and why?

Options:

A.

Yes, because the business outcomes are clear, the project brief can be a sample statement elaborating the mandate.

B.

Yes, because the executive can initiate the project based on the project mandate by passing the ‘starting up a project’ process.

C.

No, because the project brief should be a statement which includes a fuller description of the project.

D.

No, because capturing lessons from previous projects identify lessons to be applied to this project.

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Questions 66

Project Scenario – Health and Safety Training Project:

ABC Company is a well-established training company that uses a standard model to develop training materials and deliver courses to customers.

ABC Company has commissioned a project in response to recent changes in government legislation relating to health and safety on construction sites. The project will deliver “capability to provide health and safety training”, including the materials needed for classroom-based training and e-learning. The expected benefits for construction companies include a reduction in lost days and legal costs due to accidents.

The e-learning course will be developed by a specialist external consultancy. The materials for classroom-based training will be delivered by ABC Company’s development team. All course materials will be piloted before they are used. ABC Company will deliver training to its customers and also hopes to sell the course materials to other training companies as part of their operational business. ABC Company will use their own sales and marketing departments to promote the courses.

The legislation requires construction companies to comply with the new legislation within two years. The course materials and trainers have to be accredited by a government agency before courses can be delivered. ABC Company is planning to deliver pilot courses within five months of starting the project.

The ABC Company standard development model for new courses recommends the following stages:

Prince2-Practitioner Question 66

End of the Project scenario.

Additional Information:

The Chief Executive Officer (CEO) founded the company five years ago. Under her leadership, ABC Company has grown quickly into a successful training company. It delivers a range of accredited professional training.

The Finance Director is also a founder member of ABC Company and is responsible for authorizing budgets for the Operations and Development Teams. She authorizes all large contracts personally.

The Purchasing Manager reports to the Finance Director and is responsible for managing and monitoring supplier contracts.

The Operations Director is responsible for the delivery off all training and for the training development budget. His department organizes courses, venues and trainers. They work with the Product and the Sales teams to provide a comprehensive training schedule. ABC Company’s IT manager reports to the Operations Director.

The Business Development Director has recently been appointed to identify new training needs and propose new products. She will work with the Operations. Director to ensure a cost- conscious approach and that appropriate development technologies are used for the health and safety course.

The Training Development Manager reports to the Business Development Director and is responsible for developing training materials and gaining accreditation, in accordance with the standard course development model. Course developers in his team have skills in a range of development technologies and are allocated to projects as needed.

The Training Delivery Manager, who reports to the Operations Director, is responsible for ensuring that internal and external trainers deliver ABC Company training courses to the required standard. He also checks course materials to ensure they are fit for purpose and of the required quality.

The Central Services Director has responsibility for corporate communications, facilities management and configuration management. He recently led a project to consolidate all company quality systems into one quality management system and set up a corporate quality department, now managed by the Corporate Quality Manager.

The Corporate Document Manager reports to the Central Services Director. She helped establish the company’s document management system and now operates it across the business. She manages a team of administrators and contracts staff when workload is high.

The Sales Director joined ABC Company two months ago and is keen to establish himself by suggesting new markets for the courses and material. All account managers and the marketing team report to him. They promote existing training courses to other training companies and existing customers.

End of the additional information.

MANAGING PRODUCT DELIVERY

The team manager for the production of the ‘marketing materials’ has identified that they will not be ready within the timescale agreed in the work package. The team manager has sufficient tolerance to take corrective action. As a result, additional resources have been assigned to this work package.

Which theme is being applied?

Options:

A.

Risk

B.

Organization

C.

Progress

D.

Change

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Questions 67

Project Scenario – Health and Safety Training Project:

ABC Company is a well-established training company that uses a standard model to develop training materials and deliver courses to customers.

ABC Company has commissioned a project in response to recent changes in government legislation relating to health and safety on construction sites. The project will deliver “capability to provide health and safety training”, including the materials needed for classroom-based training and e-learning. The expected benefits for construction companies include a reduction in lost days and legal costs due to accidents.

The e-learning course will be developed by a specialist external consultancy. The materials for classroom-based training will be delivered by ABC Company’s development team. All course materials will be piloted before they are used. ABC Company will deliver training to its customers and also hopes to sell the course materials to other training companies as part of their operational business. ABC Company will use their own sales and marketing departments to promote the courses.

The legislation requires construction companies to comply with the new legislation within two years. The course materials and trainers have to be accredited by a government agency before courses can be delivered. ABC Company is planning to deliver pilot courses within five months of starting the project.

The ABC Company standard development model for new courses recommends the following stages:

Prince2-Practitioner Question 67

End of the Project scenario.

Additional Information:

The Chief Executive Officer (CEO) founded the company five years ago. Under her leadership, ABC Company has grown quickly into a successful training company. It delivers a range of accredited professional training.

The Finance Director is also a founder member of ABC Company and is responsible for authorizing budgets for the Operations and Development Teams. She authorizes all large contracts personally.

The Purchasing Manager reports to the Finance Director and is responsible for managing and monitoring supplier contracts.

The Operations Director is responsible for the delivery off all training and for the training development budget. His department organizes courses, venues and trainers. They work with the Product and the Sales teams to provide a comprehensive training schedule. ABC Company’s IT manager reports to the Operations Director.

The Business Development Director has recently been appointed to identify new training needs and propose new products. She will work with the Operations. Director to ensure a cost- conscious approach and that appropriate development technologies are used for the health and safety course.

The Training Development Manager reports to the Business Development Director and is responsible for developing training materials and gaining accreditation, in accordance with the standard course development model. Course developers in his team have skills in a range of development technologies and are allocated to projects as needed.

The Training Delivery Manager, who reports to the Operations Director, is responsible for ensuring that internal and external trainers deliver ABC Company training courses to the required standard. He also checks course materials to ensure they are fit for purpose and of the required quality.

The Central Services Director has responsibility for corporate communications, facilities management and configuration management. He recently led a project to consolidate all company quality systems into one quality management system and set up a corporate quality department, now managed by the Corporate Quality Manager.

The Corporate Document Manager reports to the Central Services Director. She helped establish the company’s document management system and now operates it across the business. She manages a team of administrators and contracts staff when workload is high.

The Sales Director joined ABC Company two months ago and is keen to establish himself by suggesting new markets for the courses and material. All account managers and the marketing team report to him. They promote existing training courses to other training companies and existing customers.

End of the additional information.

All the products that are due in stage 3 have been completed, apart from the ‘updated corporate quality procedures’. The work has been completed but the product has not yet been approved. The executive has been told that it will be signed off before the end of the project. In response to an exception report, the executive has instructed the project manager to plan to obtain approval of the product in stage 4.

Is this appropriate application of the report management stage end’ activity, and why?

Options:

A.

Yes, because approval of the product can be carried forward into the next stage, with authority from the project board.

B.

Yes, because the completion of the product in the next stage is a follow-on action recommendation for stage 4.

C.

No, because approval of the products was planned for stage 3 and must be completed before the stage ends.

D.

No, because a project-level exception plan is required before approval of the quality procedures can be delayed.

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Questions 68

Who sets the tolerances for a work package?

Options:

A.

The project board

B.

The project manager

C.

The team manager

D.

Corporate or programme management

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Questions 69

Which of the following roles cannot be combined?

Options:

A.

Executive and Senior User

B.

Project Manager and Project Support

C.

Project Assurance and Team Manager

D.

Senior Suppler and Supplier Assurance

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Questions 70

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 to be decided which of the photographers to use.

Which 2 statements explain why Central Records should be appointed as Project Support for this project?

Options:

A.

They control the receipt, identification, versions, storage and issue of all project products within the company ' s projects.

B.

They already exist within the organization and have been with the company for many years.

C.

They will ensure compliance with all company policies and procedures.

D.

They perform a quality assurance function across all projects.

E.

They have knowledge of the organizational standards that will be applicable to the project.

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Questions 71

Scenario

Additional Information

Prince2-Practitioner Question 71

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 Supplier for this project?

Options:

A.

Retain because she is responsible for the design of the future Information Technology organization and working practices.

B.

Add ' Director of Facilities ' because he is responsible for the design of the future organization, processes, systems and operation models for Facilities.

C.

Add ' Hardware Manager ' because he provides computer hardware to all business functions and will be impacted by the outcome.

D.

Remove because she only represents the Information Technology Division.

E.

Replace with ' Director of Facilities ' because he supports the initiative and has many ideas about how to improve the service.

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Questions 72

Which of the following statements is true of the business interest on the project?

Options:

A.

Ensures the project provides value for money

B.

Ensures the requirements for the project are defined

C.

Ensures the products produced meet the desired quality

D.

Represents the users of the product

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Questions 73

Who is responsible for ensuring that Communication Management Strategy is appropriate and that planned communication activities actually take place?

Options:

A.

Project Assurance

B.

Project Manager

C.

Corporate or Programme Management

D.

Project Support

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Questions 74

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 been decided which of the photographers to use.

Which 2 statements explain why the Marketing Director should be appointed as a Senior User for this project?

Options:

A.

She can represent the Marketing department.

B.

She previously had a successful career in publicity.

C.

The Marketing department will help to deliver the benefits of this project.

D.

The project will be funded from the business marketing budget.

E.

A number of the products will be produced by the Sales department and the Marketing department.

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Questions 75

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 to be decided which of the photographers to use.

Which 2 statements explain why the Sales Manager should be appointed as a Senior User for this project?

Options:

A.

He joined the company last year with huge enthusiasm.

B.

He would like to move into the Marketing department in the future and sees this as an opportunity to work closely with the Marketing Director.

C.

The launch of a company calendar will impact the Sales department.

D.

He reports directly to the Marketing Director.

E.

He is able to represent current and prospective customer interests.

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Questions 76

Extract from the Project Product Description (with errors)

Prince2-Practitioner Question 76

Column 1 is a list of objectives. For each objective in Column 1, select from Column 2 the quality activity that addresses it. Each selection from Column 2 can be used once, more than once or not at all. Drop down the right answer.

Prince2-Practitioner Question 76

Options:

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Questions 77

Scenario

Extract from the Project Product Description (with errors)

Prince2-Practitioner Question 77

Which 2 statements apply to the Derivation section?

Options:

A.

Move entry 9 to Composition because this is within the scope of the project.

B.

Delete entry 10 because this is NOT a source product for this project.

C.

Delete entry 11 as this is already correctly shown under Development Skills required.

D.

Move entry 12 to Composition, because this is within the scope of this project.

E.

Add ' Professional photographer ' .

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Questions 78

Scenario

Extract from the Project Product Description (with errors)

Prince2-Practitioner Question 78

Which 2 statements apply to the Customer ' s quality expectations section?

Options:

A.

Delete entry 16 because this should be shown on the Product Description for the photos.

B.

Delete entry 17 because this is beyond the scope of this project.

C.

Delete entry 18 because standards should NOT be shown here.

D.

Delete entry 19 because this should appear in the Product Description for the calendar and not the Project Product Description.

E.

Delete entry 20 because this is an expected benefit and should be recorded in the Business Case.

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Questions 79

Scenario

Additional Information

Product Description

Prince2-Practitioner Question 79

Quality notes from the Daily Log

The Director of Information Technology Division (DIT) has been asked to ensure that any changes to the outsourced staff employment contracts adhere to employment law. The DIT will review future job descriptions of the transferred staff before the final contract is signed with the selected service provider.

The service level agreement between MFH and the selected service provider will specify the type and quality of service required. The selected service provider must follow the industry standards for providing outsourced services.

MFH has a quality management system which contains a document control procedure for all its documentation, however this does not include change management.

All project documents will be subject to a quality review. Nominated products will require a formal approval record signed-off by the quality review chair.

Extract from the draft Quality Management Strategy (may contain errors)

Introduction

1. This document defines the approach to be taken to achieve the required quality levels during the project.

2. The Project Board will have overall responsibility for the Quality Management Strategy.

3. Project Assurance will provide assurance on the implementation of the Quality Management Strategy.

Quality management procedure - Quality standards

4. The selected service provider will operate to industry standards for providing outsourced services.

5. MFH document standards will be used.

Records

6. A Quality Register will be maintained to record the planned quality events and the actual results from the quality activities.

7. Configuration Item Records will be maintained for each product to describe its status, version and variant.

8. Approval records for products that require them will be stored in the quality database.

Roles and responsibilities

9. The DIT will check that the employment contracts for outsourced staff adhere to employment law.

10. Team Managers will provide details of quality checks that have been carried out.

11. Team Managers will ensure that the Quality Register is updated with the names of team members who are involved in the review process.

12. The Senior User will review the Product Descriptions of the products to be produced by the selected service provider to ensure that they can be achieved.

Which is a correctly defined acceptance criterion for the transferred staff?

Options:

A.

No staff are to be left behind.

B.

Staff should be transferred as soon as possible.

C.

All legal requirements are adhered to for the transfer of staff.

D.

Retained staff should be of reasonable competence to maintain the SLA.

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Questions 80

Which of the following is NOT a trigger for the project manager to authorize a work package?

Options:

A.

Stage Authorization

B.

Corrective Action

C.

Exception plan approved

D.

Reporting highlights

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Questions 81

Which of the following statements is NOT correct?

The Learn from Experience principle suggests that lessons should be actively sought...

Options:

A.

When Starting a Project

B.

When Initiating a Project

C.

As the project progresses

D.

As the project closes

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Questions 82

Which of the following principles uses Product Descriptions to provide clarity by defining each product ' s purpose, composition, derivation, format, quality criteria and quality method?

Options:

A.

Tailor to suit the project environment

B.

Focus on products

C.

Manage by stages

D.

Continued business justification

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Questions 83

Which statement best explains the purpose of Tailor to suit the project environment?

Options:

A.

Ensure project controls are based on project ' s scale, complexity, importance, capability and risk

B.

To use a set of pre-defined templates for the size of project

C.

To tailor the use of the principles to suit the project

D.

To pick which PRINCE2 processes to apply and which to leave out

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Questions 84

During a work package the Team manager needs to keep the project manager informed, which management product is used for this?

Options:

A.

Highlight report

B.

Checkpoint Report

C.

Issue Report

D.

End Stage Report

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Questions 85

Column 1 is a list of entries from the Daily Log that occurred during stage 4 in the Controlling a Stage process. For each entry in Column 1, select the first management product from Column 2 that should have been updated, or created, as a result of the entry. Each selection from Column 2 can be used once, more than once or not at all.

Drop down the right answer from column 1 to column 2.

Prince2-Practitioner Question 85

Options:

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Questions 86

The Work Package has been in progress for four weeks and has four weeks remaining. The Information Technology Team Manager is concerned that he has no idea what the service provider is doing about preparing to accept the transfer of Information Technology equipment and staff. He is uncertain about what should be happening.

Which 2 initial actions should the Team Manager take in response to this concern?

Options:

A.

Notify the Project Manager by raising an Exception Report.

B.

Raise this concern in the next fortnightly Checkpoint Report.

C.

Check the Communication Management Strategy to ascertain what records of communications with the service provider are required.

D.

Check the Information Technology Work Package for development interfaces to see whether the service provider Team Manager should have been liaising with the Information Technology team during development.

E.

Raise an issue to notify the Project Manager of this concern.

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Exam Name: PRINCE2 7 Practitioner (7th Edition) Exam
Last Update: May 24, 2026
Questions: 263

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