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NEW QUESTION 69
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?
- 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 a separate risk management approach is not necessary when the company has a risk
management policy. - D. No, because the risk management approach should be tailored to suit the project and its environment.
Answer: A
NEW QUESTION 70
What will be the impact on the benefits?
- A. Increased savings of E5m over 10 years from the new initiative to centralize the services provided by the
Facilities Division. - B. An additional cost of E1.5m to deliver the services provided by the Facilities Division.
- C. Outsourcing project cost reduced by 50%.
- D. Reduced savings, now E10m over 10 years.
Answer: D
Explanation:
Explanation/Reference:
Change Theme
Question Set 2
NEW QUESTION 71
Who is responsible for reviewing the risk management practices to ensure they are in line with the project's risk management strategy?
- A. Team Manager
- B. Project Manager
- C. Project Support
- D. Project Assurance
Answer: D
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 72
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 Timing of communication activities section?
- A. Delete entry 10 because Highlight Reports are a Project Board control, the frequency of which should be
recorded in the Project controls section of the Project Initiation Documentation. - B. No change to entry 9 because it describes the timing of performance reports.
- C. Delete entry 9 because activities for controlling the project should be planned as part of Project controls in
the Project Initiation Documentation.
Answer: B
NEW QUESTION 73
In which Management product would the Project Board specify where the authority for change requests lies?
- A. Risk Management Strategy
- B. Configuration Management Strategy
- C. Quality Management Strategy
- D. Communication Strategy
Answer: B
NEW QUESTION 74
During previous projects, stakeholders became confused when using a number of separate project registers.
Therefore, when preparing the risk management approach, the project manager created a risk register template and added it to an integrated project register. This register is a spreadsheet that includes project assumptions, issues, dependencies, and now risks, on separate pages.
Is this appropriate for a risk register, and why?
- A. Yes, because the project registers should be tailored to meet the needs of the organization.
- B. No, because assumptions and dependencies are sources of risk.
- C. No, because an integrated project register should include the quality register as well.
- D. Yes, because risks are often identified as a result of issues being raised.
Answer: C
Explanation:
Explanation/Reference: http://prince2.wiki/Quality_Register_Template
NEW QUESTION 75
The government agency held a seminar for training organizations to discuss the approach to accreditation for new health and safety courses. The project manager attended on behalf of ABC Company. Other training organizations described delays that had occurred when accrediting course material in the past. As a result, the project manager has produced a report recommending ways to improve the 'classroom-based training materials' to avoid such delays.
Is this an appropriate application of the principle 'learn from experience', and why?
- A. Yes, because opportunities to improve should be recorded and acted upon.
- B. Yes, because it ensures that risks to accreditation are recorded effectively.
- C. No, because competitors' experiences are not relevant to ABC projects.
- D. No, because this is an example of improved business justification.
Answer: A
NEW QUESTION 76
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.
What statement applies to the Records section?
- A. Move entry 8 to Tools and techniques because it refers to a filing technique.
- B. Move entry 7 to Communication procedure because it refers to the method to be used for communication to
external parties. - C. Move entry 6 to the Configuration Management Strategy because it defines the identification scheme for
the project's products.
Answer: C
Explanation:
Explanation/Reference:
NEW QUESTION 77
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 correctly define a Business Case risk which should be recorded under the Major risks heading?
- A. Operational costs will increase as a result of the recruitment campaign.
- B. If the calendar quality is poor customers will not use it, creating the reverse effect and reducing orders further.
- C. The prepared calendar pack is to be delivered to the printers by the first week in December.
- D. If any competitors launch a calendar at the same time this will reduce the impact of the MNO calendar and benefits will be reduced.
- E. Staff morale will improve as a result of the promotional calendar.
Answer: B,D
NEW QUESTION 78
Which 2 statements should be recorded under the Costs heading?
- A. Project costs are estimated to be a total of £26.5k.
- B. The new company logo is estimated to cost £4k.
- C. The MNO marketing budget this year is £120k.
- D. The project will be funded from the business marketing budget
- E. 10 further orders with an average profit of £2k will deliver a benefit of £20k in the first year.
Answer: A,D
NEW QUESTION 79
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.
The service level agreement looks like any other MFH document.
- A. Raise an issue (off-specification).
- B. Obtain agreement from the Director of Facilities Division to redesign the service level agreement within the remaining +2 days tolerance.
- C. Accept this error as a concession.
- D. No action required.
Answer: D
NEW QUESTION 80
Project Scenario
Calendar Project (Note: The companies and people within the scenario are fictional.) There has been a reduction in fie number of orders at the MNO Manufacturing Company due in part to the increased marketing activities of its competitors. To help counter this, the company has decided to create a promotional calendar for next year for all its current and prospective customers. The end product of this project will be a prepared calendar pack, ready for printing. The design of the calendar will be similar to one sent out previously, and must reflect the company image as described in the existing corporate branding standards. Another project is currently producing a new company logo when is to be printed on each page of the promotional calendar. The prepared calendar pack will consist of:
Design for each month - correctly showing at public holidays and new company logo
Selected photographs- 12 professionally-produced photographs, showing different members of staff
Selected paper and selected envelope - for printing and mailing the calendar
Chosen label design - a competition to design a label will be held as part of this project
List of customers - names and addresses of customers to whom the calendar will be sent.
The project is currently in initiation and will have two further stages:
Stage 2 will include tie activities to:
Create the customer fast using information from the Accounts and Marketing departments
Confirm compliance with the Data Protection Legislation
Create a design for each month - this will be done by the internal creative team
Select and appoint a professional photographer
Gather photograph design ideas from previous project and agree photographic session schedule
Prepare a production cost forecast
Select paper and envelope.
Stage 3 will include the activities to:
Produce and select tie professionally-taken photographs
Hold the label design competition and choose the label design
Assemble the prepared calendar pack.
A production cost forecast, based on the options and costs for the paper, envelope, printing and marketing of the calendar is to be produced in stage 2. However, the actual production and distribution of the calendars is not within the scope of the project. The product cost forecast will be reviewed by the Project Board to determine whether tie project should continue.
It is now 05 October and the prepared calendar pack must be delivered to the print company by 30 November, to enable printing and distribution of the calendar in time for Christmas. The cost of the activities to develop the specialist products and the cost of the project management activities are estimated to be £20,000. There is a project time tolerance of +1 week /-2 weeks and a project cost tolerance of +
£6,000 / -£6,000. A change budget of £500 has been allocated but there is no risk budget.
During stage 2, if the Project Manager decides to recommend that the Project Plan is revised to finish three weeks later, which statement is correct?
- A. The revision of the Project Plan would have to wait until the end stage assessment of stage 2.
- B. The current project must close prematurely and be restarted with a new Project Plan, a new Business Case and new Risk Register.
- C. The Executive needs to seek formal approval from corporate management to implement this change.
- D. The tolerances stated in the Project Plan CANNOT be changed.
Answer: C
NEW QUESTION 81
Additional Information
Extract from the Communication Management Strategy.
The project information in the table below is true, but it may not be recorded under the correct heading or be in the correct document.
Using the Project Scenario, select the appropriate response to each of the following 5 questions which have been raised by the Project Board.
The project is now at the end of the initiation stage. Having decided that the Calendar project is a relatively simple project, the Project Manager combined the Starting Up a Project process and the Initiating a Project process. No Project Brief has been produced. Instead the Project Manager used the project mandate to produce a simple Project Initiation Documentation (PID). The PID includes the Business Case, a product checklist and several Product Descriptions, Including the Project Product Description. Short sections are also included for each of the strategies and the controls to be applied. The Project Manager has elected to use the Daily Log to record all risks, issues, lessons and quality results.
After the initiation stage there will be two further stages during which a small number of Work Packages will be authorized. While these are being managed, the Project Manager will hold regular checkpoints, which will support the production of weekly Highlight Reports to the Project Board.
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 Information needs for each interested party section?
- A. Delete entry 13 because the activity to provide the weekly updates should be scheduled in the relevant Stage Plan.
- B. Move entry 13 to Tools and techniques because it describes the method to be used to communicate to the individual producing the staff newsletter.
- C. Delete entry 14 because this relates to the development of a particular product and should be recorded under Development interfaces within the relevant Work Package.
Answer: C
NEW QUESTION 82
Which product should show that if anybody has any remaining resource costs to be charged to the project, they should ensure this is done by 10 November?
- A. Benefits Review Plan
- B. Project closure notification
- C. Follow-on action recommendations
- D. End Project Report
Answer: B
Explanation:
Explanation
Explanation/Reference:
Directing a Project, Controlling a Stage and Managing Product Delivery
Question Set 2
NEW QUESTION 83
Which of the following risk responses can be used for either an opportunity or a threat?
- A. Enhance
- B. Reject
- C. Share
- D. Reduce
Answer: C
NEW QUESTION 84
Extract from the Project Product Description (with errors)
Which 2 statements apply to the Composition section?
- A. Add 'Calendars distributed to customers'.
- B. Move entry 6 to Derivation because this product already exists.
- C. Amend entry 2 to 'Selected paper'.
- D. Delete entry 7 because these will be produced by the photographer.
- E. Delete entry 3 because this is NOT a major product to be delivered by this project.
Answer: C,E
NEW QUESTION 85
Additional Information
Further information on some resources who could be involved in the project:
Outcome Account Manager: He represents Outcome which is a recruitment agency that provides specialist outsourcing resources. Outcome provided the consultants who carried out the feasibility study and the same consultants will be providing support and guidance to the Information Technology and Facilities teams during the project.
Director of Finance Division: She was transferred from the Information Technology Division 12 months ago. She is responsible for ensuring a cost-conscious approach is adopted in all operational and project activities across the Ministry of Food Hygiene.
Hardware Manager: Reports to the Director of Information Technology. He provides computer hardware to all business functions but has little awareness of the needs of his colleagues working in software.
Payroll Manager: Reports to the Director of Finance. He is a very experienced and efficient qualified accountant who has much of the responsibility of running the Finance Division on behalf of the Director of Finance. He has been involved in drafting the Ministry's business strategy and assisting in a full business risk assessment. He also drafted the corporate Business Case standards.
Which 2 alternative actions apply to the proposed supplier assurance for this project?
- A. Add 'Outcome Account Manager' because he will advise on potential changes and their impact on the integrity of the project's products.
- B. Retain because he is well-regarded within the Ministry because of the efficiencies, superb service and savings he has achieved in the Facilities Division.
- C. Remove because he is involved with the project and is therefore NOT independent.
- D. Retain because he will be able to advise on many of the products that will enable outsourcing to happen, such as the 10-year outsourcing service contract.
- E. Retain because he has a professional facilities qualification and so is in a position to specify the needs of his division.
Answer: A,D
NEW QUESTION 86
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.
Using the Project Scenario answer the following question. The Plan for stage 3 has been approved and work has commenced.
Column 1 contains a number of issues for this project. Select from Column 2 the appropriate category for each issue. 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.
Answer:
Explanation:
Explanation
NEW QUESTION 87
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
E20k per year. How should the Project Manager record this observation within the project?
- A. Record the observation in an Exception Report to the Project Board.
- 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. Produce a project mandate, outlining the potential savings to be achieved by the introduction of a corporate
standard. - D. Make an entry in the Lessons Log for future consideration by corporate management.
Answer: D
NEW QUESTION 88
Additional Information
Extract from the Communication Management Strategy.
The project information in the table below is true, but it may not be recorded under the correct heading or be in the correct document.
Using the Project Scenario, select the appropriate response to each of the following 5 questions which have been raised by the Project Board.
The project is now at the end of the initiation stage. Having decided that the Calendar project is a relatively simple project, the Project Manager combined the Starting Up a Project process and the Initiating a Project process. No Project Brief has been produced. Instead the Project Manager used the project mandate to produce a simple Project Initiation Documentation (PlO). The PlO includes the Business Case, a product checklist and several Product Descriptions, Including the Project Product Description. Short sections are also included for each of the strategies and the controls to be applied. The Project Manager has elected to use the Daily Log to record all risks, issues. lessons and quality results.
After the initiation stage there will be two further stages during which a small number of Work Packages will be authorized. While these are being managed, the Project Manager will hold regular checkpoints, which will support the production of weekly Highlight Reports to the Project Board.
There is no project schedule in the Project Initiation Documentation. How can project progress be tracked without a schedule to track against?
- A. With a clear end date of 30 November, and a small number of Work Packages, the Project Board should track project progress using individual Team Plans.
- B. This is an error as a Gantt chart or some form of time line, where actuals will be recorded and tracked against the planned schedule of delivery, is mandatory.
- C. Progress can be recorded and tracked using the product checklist, with the planned and actual quality management activities captured in the Daily Log.
Answer: C
NEW QUESTION 89
......
What is the duration, language, and format of the PRINCE2-Practitioner Certified Exam
- Two-and-a-half hours (150 minutes) duration, no additional reading time
- 38 marks or more required to pass (out of 68 available): approximately 55%
- 68 questions per paper
- Objective testing
- Open book. Candidates are permitted to use the official printed hard copy of the Managing Successful Projects with PRINCE2 2017 Edition. The official manual may be annotated and tabulated but no sticky notes and loose-leaf papers containing additional notes will be allowed.
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