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NEW QUESTION # 72
Which 2 statements apply to either the Development Interfaces or Operations and maintenance interfaces
sections?
- A. Delete entry 3 because this interface will be contained in the project control section of the Project Initiation
Documentation. - B. Operations and maintenance Interfaces.
- C. Add 'Project Board, with responsibility for communicating progress to corporate management' to
- D. Delete entry 2 because this interface will be contained in the Communication Management Strategy.
- E. Add 'Facilities Team Manager, with responsibility for the transfer of services provided by the Facilities
Division' to Development Interfaces. - F. Amend entry 4 to 'The transferred products relating to the services provided by the Facilities Division'.
Answer: C,E
NEW QUESTION # 73
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?
- A. Check the Communication Management Strategy to ascertain what records of communications with the service provider are required.
- B. 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.
- C. Raise this concern in the next fortnightly Checkpoint Report.
- D. Notify the Project Manager by raising an Exception Report.
- E. Raise an issue to notify the Project Manager of this concern.
Answer: B,E
Explanation:
Topic 11, Managing a Stage Boundary and Closing a Project
NEW QUESTION # 74
Which 2 statements apply to the Composition section?
- A. Amend entry 2 to 'Selected paper'.
- B. Add 'Calendars distributed to customers'.
- C. Delete entry 7 because these will be produced by the photographer.
- D. Move entry 6 to Derivation because this product already exists.
- E. Delete entry 3 because this is NOT a major product to be delivered by this project.
Answer: A,E
Explanation:
Explanation
NEW QUESTION # 75
HOTSPOT
Scenario:
Techniques, processes and procedures
1. Any threat that may result in a loss of MFH data must be escalated immediately.
Joint agreements
2. Work is to start at the beginning of week 2 (Stage 4).
3. The project will take two years to complete, at an estimated cost of £2.5m.
Tolerances
4. None.
Constraints
5. MFH staff must not be involved in any heavy lifting during the removal of existing IT equipment.
6. Installation work must take place during MFH normal working hours.
7. +£10,000 / -£25,000.
Reporting arrangements
8. Highlight Report every Monday by 10.00 am.
9. The report must contain a summary of all products worked on during the previous week.
10. Project Manager must be notified of any issues immediately by telephone.
Problem handling and escalation
11. Impact analysis of all issues must be completed within 24 hours.
Extracts or references
12. The Stage Plan for stage 4 is available from Project Support.
Approval method
13. Project Assurance will review the completed Work Package and confirm completion At the end of stage 3, the service provider will be selected and the contract awarded. During stage 4, the Account Manager for the selected service provider will work with the Project Manager to complete the transition of the services to the selected service provider.
Hot Area:
Answer:
Explanation:
NEW QUESTION # 76
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 tolerance heading?
- A. The Project Manager's threshold level of risk exposure is low impact and probability.
- B. Corporate management's threshold level of risk exposure is any combination of high and very high impact and probability.
- C. The Project Board's threshold level of risk exposure is any combination of medium, high and very high impact, with high and very high probability.
- D. The cost of all fallback plans must be contained within the project's tolerance.
- E. The risk budget will have a tolerance of +/~ 10%.
Answer: C,D
Explanation:
Explanation/Reference:
Question Set 2
NEW QUESTION # 77
Extract from the Project Product Description (with errors)
Which 2 statements apply to the Customer's quality expectations section?
- A. Delete entry 19 because this should appear in the Product Description for the calendar and not the Project Product Description.
- B. Delete entry 16 because this should be shown on the Product Description for the photos.
- C. Delete entry 17 because this is beyond the scope of this project.
- D. Delete entry 20 because this is an expected benefit and should be recorded in the Business Case.
- E. Delete entry 18 because standards should NOT be shown here.
Answer: C,D
NEW QUESTION # 78
Who would be responsible for maintaining the Configuration Item Records?
- A. Project Manager
- B. Project Assurance
- C. Project Support
- D. Team Manager
Answer: C
NEW QUESTION # 79
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 (GBP)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 (GBP)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?
- A. The total expected savings over 10 years, at current prices, is (GBP)20m.
- B. Outsourcing would allow MFH to take advantage of the best services the outsourcing industry has to offer.
- C. The confirmed cost of the Outsourcing project is (GBP)2.5m, but with considerable savings over 10 years.
- D. The 10-year outsourcing contract, at current prices, will be worth (GBP)80m.
- E. The 10-year outsourcing contract will enable MFH to stabilize costs at agreed levels.
Answer: A,E
Explanation:
Reference: http://www.whatisprince2.net/prince2-theme-business-case.php
NEW QUESTION # 80
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:
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 executive has set the following tolerances for stage 2:
Time (+/- 1 week)
Cost (+/- £20,000)
Scope (using MoSCoW prioritization technique)
Risk (based on the risk appetite defined in the risk management approach) These tolerances have been recorded in the stage plan. The project manager will report progress regularly via highlight reports to the project board and use exception reports to raise exceptions. In addition, the project assurance role will monitor the stage to provide confidence to the project board that exceptions are being reported.
How well does this apply the 'manage by exception' principle, and why?
- A. It applies the principle well, because tolerances should be set for the related aspects of project performance for each stage.
- B. It applies the principle poorly, because tolerances should be set for each stage against each of the six aspects of project performance.
- C. It applies the principle poorly, because it is the regular reporting of progress that should give the project board the required confidence.
- D. It applies the principle well, because the project manager needs to control the project using discrete management stages.
Answer: B
NEW QUESTION # 81
While preparing the Configuration Management Strategy, the Project Manager considered the options for
change control. He decided to recommend a change budget of E250k, but was undecided on the Change
Authority to recommend.
Which option is an appropriate Change Authority for the Outsourcing project?
- A. The Director of Facilities and the Director of Information Technology to approve all changes.
- B. The selected service provider to approve and implement all changes.
- C. Senior User(s) and Project Assurance representatives, within the limits of the recommended change
budget.
Answer: C
NEW QUESTION # 82
The Sales Director would like to add a new company logo to the 'marketing material'. The change to the project scope has been approved by the project board. It is expected to delay product and stage completion date by 3 days and cost £900. The stage 2 cost tolerance of +£1,000 has not been used. The change budget of
£500 has not been used.
Which option describes how this change should be funded?
- A. £900 needed for the change should be taken from the stage 2 cost tolerance.
- B. £900 of additional funding will need to be requested to pay for the change.
- C. £400 will need to be requested in addition to the £500 change budget.
- D. £400 of the stage 2 cost tolerance and the £500 change budget should be used.
Answer: C
NEW QUESTION # 83
A construction company that is one of ABC Company's key clients has agreed to provide a member of the staff
to review and comment on the 'e-learning course'.
Which stakeholder interest should the member of staff represent, and why?
- A. User, because this stakeholder may train its staff using the 'e-learning course'.
- B. User, because this stakeholder ensures that the project provides value for money.
- C. Supplier, because this stakeholder provides the expertise required by the project.
- D. Supplier, because this stakeholder is an external supplier.
Answer: B
NEW QUESTION # 84
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:
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.
INITIATING A PROJECT
Here are three statements that were considered by the project management team during the 'initiating a project' process.
As part of which activity (A-F) should they FIRST be considered?
Choose only one activity for each statement. Each activity can be used once, more than once, or not at all.
Answer:
Explanation:
Explanation
NEW QUESTION # 85
Which statement applies to the Introduction section?
- A. Delete entry 1 because the project approach is defined in the Project Brief.
- B. Move entry 3 to the Roles and responsibilities section because this is a quality responsibility.
- C. Delete entry 2 because this is the Project Manager's responsibility.
- D. Delete entry 3 because it is the Project Manager's responsibility to implement the Quality Management Strategy.
Answer: B
NEW QUESTION # 86
Which statement applies to the Quality standards section?
- A. Add 'All contracts must conform to current employment laws".
- B. Delete entry 4 because external suppliers are responsible for applying any relevant standards to their work.
- C. Delete entry 5 because the lack of a change management procedure makes the MFH document standards unsuitable.
- D. Add 'PRINCE2 change control procedures will be used to manage any changes to baselined products'.
Answer: A
NEW QUESTION # 87
Scenario
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)
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).
Using the Project Scenario and the Extract from Stage Plan for stage 3 provided as additional intonation for this question in the Scenario Booklet, answer the following 5 questions.
The Stage Plan for stage 3 has been produced.
The Engineering Manager insists that there are to be no interruptions to operations whilst photographs are being taken of the engineering staff performing their everyday duties and operating machinery. Two weeks ago the professional photographer produced the photo session schedule based on the operational staff schedule. The operational staff schedule is produced weekly and maintained by the Engineering Manager.
None of the £500 change budget has been used to date and this is available for the stage.
Which 2 statements apply to the Plan prerequisites section?
- A. Delete entry 4 because the customer list is a deliverable of stage 2, not a prerequisite for stage 3.
- B. Delete entry 2 because these are project benefits not prerequisites of the stage.
- C. Delete entry 3 because the production cost forecast is a deliverable of stage 2, not a prerequisite for stage 3.
- D. Add 'Engineering team must be made available for photos'.
- E. Add 'Compliance with the Data Protection Act'.
Answer: A,B
NEW QUESTION # 88
Which 2 statements apply to the Acceptance criteria section?
- A. Move entry 23 to Derivation because the Data Protection Act already exists.
- B. Delete entry 22 because the development of the new company logo is not within the scope of the Calendar
project. - C. Move entry 21 to Composition because the photos are part of the final product.
- D. Amend entry 21 to 'Appearance - 12 photos each showing different members of staff.
- E. Delete entry 24 because this is NOT a suitable acceptance criteria for this project.
Answer: B,D
Explanation:
Explanation/Reference:
Quality Theme
Testlet 2
Scenario
Additional Information
Product Description
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.
NEW QUESTION # 89
This question provides a number of changes which may or may not be required to the Extract from the
Communication Management Strategy provided in the additional information.
Which statement applies to the Communication procedure section?
- A. Delete entry 2 because only variations from the MNO Manufacturing Company standards should be
recorded here. - B. No change to entry 2 because this is a sufficient description of the process required.
- C. Amend entry 2 to include MNO Manufacturing Company standards for both internal and external company
communications.
Answer: C
NEW QUESTION # 90
Which 2 statements apply to the Composition section?
- A. Amend entry 2 to 'Selected paper'.
- B. Add 'Calendars distributed to customers'.
- C. Delete entry 7 because these will be produced by the photographer.
- D. Move entry 6 to Derivation because this product already exists.
- E. Delete entry 3 because this is NOT a major product to be delivered by this project.
Answer: A,E
NEW QUESTION # 91
Which of the following reports does not contain any information on risk?
- A. Lessons Report
- B. End Stage Report
- C. Issue Report
- D. Highlight report
Answer: C
Explanation:
Explanation/Reference:
Testlet 1
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.
NEW QUESTION # 92
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:
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 external team manager for the 'e-learning course' has reviewed the quality register to ensure all quality activities have been completed. The 'e-learning course' has been approved and accreditation has been achieved. As a result, the team manager updated the work package to notify the project manager that it is complete, and updated the team plan.
Is this appropriate, and why?
- A. Yes, because the project manager needs to receive confirmation that work has been completed and approved.
- B. No, because it is the configuration item record of the relevant product description that is updated, not the work package.
- C. No, because the work package should be checked to confirm the reporting arrangements of the 'e- learning course'.
- D. Yes, because a team plan to gain accreditation of the 'e-learning course' is required to be part of the work package.
Answer: A
NEW QUESTION # 93
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