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NEW QUESTION 122
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?

• A. The risk of staff leaving the organization will be categorized as beyond the project proximity.
• B. Any risk with a proximity category of imminent will be estimated as having a very high impact.
• C. Proximity categories for this project are: Imminent; Within the stage; Within the project; Beyond the project.
• D. Imminent risks are those which may occur within two weeks.
• E. The risk of MFH having no outsourcing experience will be categorized as Stage 4 proximity.

Answer: B,D

 

NEW QUESTION 123
Scenario
Additional Information

Further information on some resources who could be involved in the project:
Outcome Account Manager: He represents Outcome which is a recruitment agency that provides specialist outsourcing resources. Outcome provided the consultants who carried out the feasibility study and the same consultants will be providing support and guidance to the Information Technology and Facilities teams during the project.
Director of Finance Division: She was transferred from the Information Technology Division 12 months ago. She is responsible for ensuring a cost-conscious approach is adopted in all operational and project activities across the Ministry of Food Hygiene.
Hardware Manager: Reports to the Director of Information Technology. He provides computer hardware to all business functions but has little awareness of the needs of his colleagues working in software.
Payroll Manager: Reports to the Director of Finance. He is a very experienced and efficient qualified accountant who has much of the responsibility of running the Finance Division on behalf of the Director of Finance. He has been involved in drafting the Ministry's business strategy and assisting in a full business risk assessment. He also drafted the corporate Business Case standards.
Which 2 alternative actions apply to the proposed Senior Supplier for this project?

• A. Remove because she only represents the Information Technology Division.
• B. Replace with 'Director of Facilities' because he supports the initiative and has many ideas about how to improve the service.
• C. Add 'Hardware Manager' because he provides computer hardware to all business functions and will be impacted by the outcome.
• D. Retain because she is responsible for the design of the future Information Technology organization and working practices.
• E. Add 'Director of Facilities' because he is responsible for the design of the future organization, processes, systems and operation models for Facilities.

Answer: D,E

 

NEW QUESTION 124
None of the reviewers have proof-reading skills.

• A. No action required.
• B. Record an action to request that Project Assurance identify a proof-reader who can, within the next 2 days, complete the check for typographical errors.
• C. Ask the reviewers present at the meeting to conduct a proof-reading exercise and pass any comments to the author within 2 days.
• D. Contact Project Assurance to find appropriate resources to come into the review.

Answer: B

 

NEW QUESTION 125
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 Stakeholder analysis: Interested parties section?

• A. Add 'Internal Creative Team'.
• B. Delete entry 12 because the printing of the calendars is outside of the scope
• C. Delete entry 11 because the photographer is internal to the project management team.

Answer: A

 

NEW QUESTION 126
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 Communication procedure section?

• A. Amend entry 2 to include MNO Manufacturing Company standards for both internal and external company communications.
• B. No change to entry 2 because this is a sufficient description of the process required.
• C. Delete entry 2 because only variations from the MNO Manufacturing Company standards should be recorded here.

Answer: A

 

NEW QUESTION 127
The work package to produce the 'updated corporate quality procedures' was created during stage 3. Before accepting the work package, the team manager produces the team plan and finds that the expected delivery date is unrealistic. As a result, the project manager agrees an extra two weeks to complete the work package, within the current stage tolerance. The work package is then accepted by the team manager.
Is this an appropriate application of the 'manage product delivery' process, and why?

• A. Yes, because the team manager should set the time required to complete a work package.
• B. No, because the use of the stage time tolerance should be authorized by the project board.
• C. No, because the work package, defined by the project manager, should not be changed.
• D. Yes, because the team manager should agree the limits within which the work is to be completed.

Answer: D

 

NEW QUESTION 128
Scenario
Additional Information
Chief Executive Officer (CEO): He started the company 25 years ago and knows his job very well. He injured his leg two years ago which has restricted his visits to the engineering area. As CEO he has an overall perspective of the business strategic requirements and the authority to commit resources as required.
Marketing Director: She has been with the company for three years, following a successful career with a publicity company. She has the ability to represent the needs of the business, particularly as this is a marketing project. She has the authority to commit the annual business marketing budget, from which the project will be funded, as she sees appropriate. She will be responsible for monitoring the expected benefits of the calendar, in particular the improvement of the company's image.
Engineering Manager: He has been responsible for many engineering innovations in the company and is still as keen and energetic as the day he started. VVhilst he will not be part of the project team, his staff will feature in the photos for the promotional calendar.
Central Records: This group of five staff looks after all company records and document control. They now maintain all project files.
Bright Lights: This is the local office supplies company. It supplies all the stationery and office equipment needs of the company and will supply the stationery for this project.
Portraits ltd: This is a professional photographic company with a number of excellent photographers and a history of successful work. This company has been selected to take the photos for the company calendar.
It has yet be decided which of the photographers to use.
Which 2 statements explain why the CEO should be appointed as the Executive for this project?

• A. He started the company 25 years ago.
• B. He has an overall perspective of the business's strategic requirements.
• C. He knows his job very well.
• D. He has the authority to commit resources as required.
• E. He restricts his visits to the engineering area.

Answer: B,D

 

NEW QUESTION 129
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 Purchasing Manager should be appointed as a Senior Supplier for this project?

• A. He can influence the external supplier's Business Case.
• B. He was an engineer and worked in that area before taking up his current position.
• C. He is responsible for the performance of supplier contracts.
• D. He is responsible for the organization's procurement activates.
• E. He is not appropriate for the role of Executive or Senior User.

Answer: C,D

 

NEW QUESTION 130
Who is responsible for ensuring that Communication Management Strategy is appropriate and that planned communication activities actually take place?

• A. Corporate or Programme Management
• B. Project Manager
• C. Project Support
• D. Project Assurance

Answer: D

 

NEW QUESTION 131
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. Add 'Compliance with the Data Protection Act'.
• B. Delete entry 4 because the customer list is a deliverable of stage 2, not a prerequisite for stage 3.
• C. Delete entry 2 because these are project benefits not prerequisites of the stage.
• D. Add 'Engineering team must be made available for photos'.
• E. Delete entry 3 because the production cost forecast is a deliverable of stage 2, not a prerequisite for stage 3.

Answer: B,C

 

NEW QUESTION 132
HOTSPOT
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.
Hot Area:

Answer:

Explanation:

 

NEW QUESTION 133
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 134
Which 2 statements explain why the Sales Manager should be appointed as a Senior User for this project?

• A. He is able to represent current and prospective customer interests.
• B. The launch of a company calendar will impact the Sales department.
• C. He reports directly to the Marketing Director.
• D. 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.
• E. He joined the company last year with huge enthusiasm.

Answer: A,B

 

NEW QUESTION 135
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?

• A. Yes, because the course developer is responsible for ensuring that trainers deliver courses to the required standard.
• B. No, because there is a conflict of interest as the Training Development Manager is responsible for gaining accreditation.
• C. Yes, because the course developer is likely to have the project management and specialist knowledge required.
• D. No, because the course developer's team reports to the Business Development Director, not the Operations Director.

Answer: A

 

NEW QUESTION 136
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 Reasons heading?

• A. Providing re-engineered services in-house will remove the need to transfer staff to a service provider.
• B. The lack of up-to-date technology in MFH means a re-engineering of existing services will not necessarily deliver the performance improvements required.
• C. Relocating staff to the selected service provider's premises will mean that no property transfer is required.
• D. The inadequate controls, outdated standards and outdated technology must be addressed.
• E. The Ministry of Food Hygiene (MFH) needs to deal with the increasing pressure to cut costs and better manage supplier's performance.

Answer: C,E

Explanation:
Explanation/Reference:
http://www.whatisprince2.net/prince2-theme-business-case.php

 

NEW QUESTION 137
......

Topics of PRINCE2-Practitioner Certified Exam

Analyze the application of PRINCE2 principles in context

• communication management approach

• exception report, highlight report, lessons log, work package

• Apply the PRINCE2 requirements for the organization theme, demonstrating an understanding of:

• the recommended approach to planning, including the recommended approach to defining and analyzing the products

• tolerances and raising exceptions

• risk management approach, risk register

• recommended roles and responsibilities

• benefits management approach & business case

• Apply the PRINCE2 requirements for the business case theme, demonstrating an understanding of:

• the recommended associated actions

• recommended roles and responsibilities

• recommended roles and responsibilities

• the recommended roles and responsibilities

• recommended roles and responsibilities

• the recommended risk management procedure

• project plan, stage plan, exception plan, the team plan

• outputs, outcomes, benefits, and dis-benefits

• quality planning, quality control, quality assurance

• Apply the PRINCE2 requirements for applying the risk theme, demonstrating an understanding of:

• how the themes may be applied

• Carry out the initiating a project process activity, demonstrating an understanding of:

• checkpoint report, daily log, end project report, end-stage report,

• recommended roles and responsibilities

• Apply the PRINCE2 requirements for controlling progress, demonstrating an understanding of:

• Apply the PRINCE2 requirements for the quality theme, demonstrating an understanding of:

• the recommended project management team structure

• product description, project product description, quality management approach, quality register

• the recommended roles and responsibilities

• Apply the PRINCE2 requirements for applying the plans theme, demonstrating an understanding of:

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