Ultimate Guide to Prepare PRINCE2-Practitioner Certification Exam for PRINCE2 Certification in 2021
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NEW QUESTION 75
There is no mention of any Stage Plans, yet there are two further stages proposed. How will this be resolved?
- A. There will be three Stage Plans, the two management stages plus an additional stage to plan and complete the activities of the Closing a Project process.
- B. Whilst the activities are divided into two further stages, there is no reason why the Calendar project should use stages. The project will therefore be run as a single stage project and the activities will be added to the Initiation Stage Plan.
- C. It is appropriate for the Calendar project to be run as two further stages as there is a key decision to be made at the end of stage 2. Stage Plans will be produced.
Answer: C
Explanation:
Explanation/Reference:
NEW QUESTION 76
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 delivery of the pilot courses has been split into two separate products: 'planned pilot courses' and
'delivered pilot courses'. 'Planned pilot courses' will be produced during stage 3, and the 'delivered pilot courses' will take place during stage 4. This will allow the project board to approve the plan for the pilot courses before the resources are committed to delivering the pilot courses.
Why is this an appropriate application of the plans theme to control the project?
- A. Because the pilot courses have been broken down into two separate products.
- B. Because a PRINCE2 project should focus on the quality of the products being delivered.
- C. Because the project board should ensure that lessons from one stage are applied to the next stage.
- D. Because the delivery steps to create the pilot courses have been aligned to the management stages.
Answer: D
NEW QUESTION 77
According to PRINCE2, which statement about the Configuration Management Strategy for the Outsourcing project is correct?
- A. 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.
- B. 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.
- C. Every project needs a Configuration Management Strategy, even if the organization has existing configuration management standards, because every project has different circumstances.
Answer: C
NEW QUESTION 78
CLOSING A PROJECT
Benefits relating to income and business reputation after the project has closed cannot be shown at project closure.
Which statement describes how the 'closing a project' process makes provision for this?
- A. As part of the 'hand over products' activity, the 'finalized materials' will be passed to the operational business environments.
- B. As part of the 'hand over products' activity, the benefits management approach will be updated to include future activities for benefit measurement.
- C. As part of the 'prepare planned closure' activity. It will be confirmed that the project has delivered what was defined in the project product description.
- D. As part of the 'prepare planned closure' activity. It will be confirmed that the acceptance criteria defined in the project product description have been met.
Answer: B
NEW QUESTION 79
What additional risk will this place on the project?
- A. These changes will delay stage 3 by three weeks.
- B. The reduced value of the contracted services required by the Outsourcing project may result in an insufficient number of proposals being received.
- C. None because risks associated with the centralization and rationalization of the Facilities Division will be managed by another project.
- D. There is only E70k left in the project change budget.
Answer: C
NEW QUESTION 80
Extract from the Project Product Description (with errors)
Which 2 statements apply to the Composition section?
- A. Delete entry 3 because this is NOT a major product to be delivered by this project.
- B. Amend entry 2 to 'Selected paper'.
- C. Add 'Calendars distributed to customers'.
- D. Delete entry 7 because these will be produced by the photographer.
- E. Move entry 6 to Derivation because this product already exists.
Answer: A,B
NEW QUESTION 81
Which 2 statements apply to either the Reporting arrangements or Problem handling and escalation sections?
- A. Move entry 10 to Problem handling and escalation because that section describes how issues are handled.
- B. Delete entry 11 because the impact analysis should be provided when the issue is notified.
- C. Delete entry 9 because this level of detail is unnecessary.
- D. Add 'Any risks identified to be added to the Risk Register' to Reporting arrangements.
- E. Replace entry 8 with 'Checkpoint Report every Monday by 10.00 am' because Highlight Reports are intended for the Project Board.
Answer: B,D
NEW QUESTION 82
Towards the end of stage 2, the stage 3 plan is being prepared. This includes the work required to promote the new courses to other training companies. In addition to the current ways of marketing the courses, the Sales Director wants to advertise in trade magazines. The likely costs involved and the opportunities it may bring have been identified.
As part of the 'update the project plan' activity, what should the project manager be responsible for?
- A. Recording the effect of implementing the magazine advertisements on the overall time and cost of the project.
- B. Creating time and cost tolerances for the delivery of the magazine advertisements.
- C. Creating the product description, with detailed quality criteria, for the magazine advertisements.
- D. Recording changes to ABC Company risk appetite as a result of using the magazine advertisements.
Answer: B
NEW QUESTION 83
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?
- A. Break the 'planned pilot courses' down into component products in order to identify the work required to deliver them.
- B. Review whether the possible sales of the training course to external companies are likely to cover the project costs.
- C. Review whether a new team manager should be appointed to lead the delivery of the pilot courses during stage 4.
- D. Update the overall plan with the time and cost taken to develop the 'e-learning course' and 'amended course booking procedures'
Answer: D
NEW QUESTION 84
Scenario
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.
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 9 because activities for controlling the project should be planned as part of Project controls in the Project Initiation Documentation.
- B. 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.
- C. No change to entry 9 because it describes the timing of performance reports.
Answer: C
NEW QUESTION 85
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.
Which is a correctly defined acceptance criterion for the transferred staff?
- A. Staff should be transferred as soon as possible.
- B. No staff are to be left behind.
- C. Retained staff should be of reasonable competence to maintain the SLA.
- D. All legal requirements are adhered to for the transfer of staff.
Answer: D
NEW QUESTION 86
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 Monitoring and control section?
- A. No change to entry 12 because this describes how the Project Board will control the stage. ~
- B. Delete entry 11 because this relates to the monitoring and controlling of the Project Plan, not the Stage Plan.
- C. Delete entry 13 because this is part of the Controlling a Stage process.
- D. Delete entry 14 because the Product Status Account is NOT an ad-hoc report. It is produced at the end of each stage to identify any variations between planned status, reported status and actual status of the stage's products.
- E. Move entd12 because the Highlight Reports are deliverables of this stage and should be shown under Product descriptions.
Answer: A,B
NEW QUESTION 87
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.
Which is a correctly defined acceptance criterion for the transferred staff?
- A. Staff should be transferred as soon as possible.
- B. No staff are to be left behind.
- C. Retained staff should be of reasonable competence to maintain the SLA.
- D. All legal requirements are adhered to for the transfer of staff.
Answer: D
NEW QUESTION 88
The project board has asked user and supplier assurance to review all product descriptions relating to the
'updated corporate quality procedures', prior to authorizing the stage plan for stage 3.
Is this appropriate as part of the 'directing a project' process, and why?
- A. No, because the project board should review new product descriptions before they authorize the stage 3 plan.
- B. Yes, because project assurance should assess whether all stakeholders have been identified, if requested by the project board.
- C. No, because the project manager is responsible for writing product descriptions when creating the stage 3 plan.
- D. Yes, because project assurance should review the stage 3 plan for viability, if requested by the project board.
Answer: A
NEW QUESTION 89
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 User Assurance for this project?
- A. He joined the company last year with huge enthusiasm and is keen to increase sales.
- B. He is able to advise on suitable stakeholder engagement of current and prospective customers.
- C. 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.
- D. He can resolve any conflict in requirements between the Sales department and the Marketing department.
- E. He can provide an evaluation of the potential impact the calendar will have on sales.
Answer: B,E
NEW QUESTION 90
Which 2 statements should be recorded under the Business options heading?
- A. Do nothing.
- B. Outsource the creation of the calendar to a professional marketing company.
- C. Use a professional photographer to create the photographs for the calendar.
- D. Produce a promotional calendar as a free Christmas gift to current and prospective customers.
- E. Create the photographs for the calendar internally.
Answer: A,D
NEW QUESTION 91
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 (GBP)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.
Which 2 statements should be recorded under the Reasons heading?
- A. MNO Manufacturing is experiencing a fall in orders due in part to the increased marketing activities of its competitors.
- B. 1,500 orders are expected, each with an average profit of (GBP)2k.
- C. 10% of customers have not re-ordered in this financial year.
- 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. The Marketing department believes that sending a promotional calendar to current and prospective customers will increase orders by at least 10%.
-- ---
Answer: A,C
NEW QUESTION 92
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?
- 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. Make an entry in the Lessons Log for future consideration by corporate management.
- D. Produce a project mandate, outlining the potential savings to be achieved by the introduction of a corporate standard.
Answer: C
NEW QUESTION 93
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