NEW QUESTION 1
HOTSPOT
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caused by inadequate internal controls, outdated standards and outdated technology.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.
Lines 1 to 6 in the table below consist of an assertion statement and a reason statement. For each line identify the appropriate option, from options A to E, that applies. Each option can be used once, more than once or not at all.

• A. Mastered
• B. Not Mastered

Answer: A

Explanation:

NEW QUESTION 2

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

• A. Project Support
• B. Executive
• C. Project Assurance
• D. Project Manager

Answer: C

NEW QUESTION 3

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 running cost of the outsourced service?

• A. Must be kept to a minimum.
• B. Must be kept to a level acceptable to the Ministry of Food Hygiene.
• C. Subject to market conditions.
• D. The annual increase to be less than half the rate of inflation.

Answer: D

NEW QUESTION 4

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

• A. Issue Report
• B. Highlight report
• C. Lessons Report
• D. End Stage Report

Answer: A

NEW QUESTION 5

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

• A. Exception Plan
• B. Project Management team
• C. Business Case
• D. Project Initiation Documentation

Answer: A

NEW QUESTION 6

Which project controls should be established for the Outsourcing project?

• A. Highlight Reports to the Project Manager; Exception Reports to the Project Board when project tolerances are forecast to be exceeded.
• B. Highlight Reports to the Project Board; Exception Reports to corporate management when stage tolerances are forecast to be exceeded.
• C. Highlight Reports to the Project Board; Exception Reports to the Project Board when stage or project tolerances are forecast to be exceeded.

Answer: C

NEW QUESTION 7

Scenario:
The Ministry of Food Hygiene (MFH) has a quality management system which contains a document control process to manage all documentation requirements. The document control process was created by the MFH Quality Manager, who now maintains all of MFH's documents and performs an organization-wide configuration management role. The MFH Quality Manager will administer the configuration management procedure for the Restructuring project since this must comply with the MFH document control process.
Having created the Issue Report and analyzed the impact of removing the Facilities Division from the scope of the Outsourcing project, the proposed option exceeds tolerance.
\Nhat is the next action the Project Manager should consider?

• A. Create an Exception Report to inform the Project Board of the situation and the available options.
• B. Update the associated Configuration Item Records with details of the Issue Report that caused the change.
• C. Amend the Stage Plan for stage 3: remove all products related to the Facilities Division and add the activities required to deliver the new Government initiative.
• D. Create an Exception Plan to change all of the project's products to reflect the exclusion of services provided by the Facilities Division.

Answer: A

NEW QUESTION 8

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.
Which 2 statements apply to either the Development Interfaces or Operations and maintenance interfaces sections?

• A. Delete entry 2 because this interface will be contained in the Communication Management Strategy.
• B. Delete entry 3 because this interface will be contained in the project control section of the Project Initiation Documentation.
• C. Amend entry 4 to 'The transferred products relating to the services provided by the Facilities Division'.
• D. Add 'Project Board, with responsibility for communicating progress to corporate management' to
• E. Operations and maintenance Interfaces.
• F. Add 'Facilities Team Manager, with responsibility for the transfer of services provided by the Facilities Division' to Development Interfaces.

Answer: DF

NEW QUESTION 9

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

• A. The justification for the project must remain the same throughout the project
• B. The justification for the project should remain valid
• C. The justification for the project may change
• D. If the project is no longer justified it should be stopped

Answer: B

NEW QUESTION 10

Which of the following risk responses can be used for either an opportunity or a threat?

• A. Reduce
• B. Share
• C. Reject
• D. Enhance

Answer: B

NEW QUESTION 11

The chair of a quality review meeting advised the Team Manager that, because there were so many major issues, the product had been rejected. The presenter estimated that the corrections would take about two weeks. The re-assessment of the product will take a further week, resulting in a three-week delay. The Work Package only has one week tolerance.
Which 2 actions should the Team Manager take in response to this situation?

• A. Ask the reviewers to work overtime to prevent the delay.
• B. Ensure that the situation is included in the next Highlight Report.
• C. Raise an issue explaining that tolerances are forecast to be exceeded.
• D. Advise the Project Manager of the risk that there may be a two-week delay in the delivery of one of the products.
• E. Ensure that the Quality Register is updated with the quality review result.

Answer: CE

NEW QUESTION 12

When does Directing a Project begin?

• A. From the beginning of Starting up a Project
• B. From the beginning of Initiating a Project
• C. From the completion of Starting up a Project
• D. From the completion of Initiating a Project

Answer: C

NEW QUESTION 13

Who is responsible for committing user resources to the project?

• A. Senior User
• B. Senior Supplier
• C. Executive
• D. Project Board

Answer: A

NEW QUESTION 14
HOTSPOT
Additional Information
A photographer from Portraits Ltd, a professional photographic company, has taken on the role of Team Manager after taking some time to understand the requirements of the project. A contract for their services has been set up and is being monitored by the Purchasing Manager and a Work Package has been agreed. This contract specifies that the photographer must arrange a meeting with the Engineering Manager to establish a schedule for the photo sessions to minimize the impact on the Engineering staff. This meeting should have occurred by now.
The Engineering Manager was made aware of this requirement but when asked he reported that he has received no communication from the photographer. The Project Manager has tried to call the photographer and has had no response. The Project Manager believes there is a risk that Portraits Ltd are overbooking work and prioritizing other clients' work. If Portraits ltd do not deliver on schedule the project will be delayed and the expected benefits will be reduced.
The contract is to be reviewed and Portraits Ltd reminded of their agreement.
The project is now in stage 2. The Project Manager has heard about the possibility of a competitor also producing a calendar to be delivered earlier than the target date for this project. There is a threat that the early release of a competitor's calendar may weaken the impact of the MNO Manufacturing Company calendar, thereby reducing the anticipated benefits of the Calendar project.
Column 1 contains a number of risk responses identified by the Project Manager following an assessment of this risk. Column 2 contains a list of threat response types. For each risk response in Column 1, select from Column 2 the type of response it represents. Each option from Column 2 can be used once, more than once or not at all.
Drop down the right answer.

• A. Mastered
• B. Not Mastered

Answer: A

Explanation:

NEW QUESTION 15

There are two time driven controls in PRINCE2, which are they?

• A. Highlight and End Stage Reports
• B. Highlight and Checkpoint Reports
• C. Checkpoint and End Project Reports
• D. Highlight and Lessons Reports

Answer: B

NEW QUESTION 16

PRINCE2 proposes 3 levels of Plan, which are they?

• A. Initiation, Project and Stage Plans
• B. Project, Stage and Exception Plans
• C. Initiation, Project and Benefit Review Plans
• D. Project, Stage and Team Plans

Answer: D

NEW QUESTION 17

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.
Without a Risk Register how can project risks, the progress of risk actions taken to date and the current status of residual risks be measured?

• A. The Daily Log was correctly used to monitor risks during the Starting up a Project proces
• B. It will be used to capture all risks, actions, decisions, assumptions
• C. It was not appropriate to use the Daily Log to capture all risks and issues during the Starting up a Project proces
• D. Separate registers should have been set up for risks, issues and lessons learne
• E. This will now be done.
• F. In a simple project, the Project Initiation Documentation (PID) should contain a register for recording risk information and monitoring project risks throughout the delivery stage
• G. The register will now be added to the PID.

Answer: A

NEW QUESTION 18

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. Obtain agreement from the Director of Facilities Division to redesign the service level agreement within the remaining +2 days tolerance.
• B. Raise an issue (off-specification).
• C. Accept this error as a concession.
• D. No action required.

Answer: D

NEW QUESTION 19

Scenario
A photographer from Portraits Ltd, a professional photographic company, has taken on the role of Team Manager after taking some time to understand the requirements of the project. A contract for their services has been set up and is being monitored by the Purchasing Manager and a Work Package has been agreed. This contract specifies that the photographer must arrange a meeting with the Engineering Manager to establish a schedule for the photo sessions to minimize the impact on the Engineering staff. This meeting should have occurred by now.
The Engineering Manager was made aware of this requirement but when asked he reported that he has received no communication from the photographer. The Project Manager has tried to call the photographer and has had no response. The Project Manager believes there is a risk that Portraits Ltd are overbooking work and prioritizing other clients' work. If Portraits ltd do not deliver on schedule the project will be delayed and the expected benefits will be reduced.
The contract is to be reviewed and Portraits Ltd reminded of their agreement.
The project is now in stage 2. The Project Manager has heard about the possibility of a competitor also producing a calendar to be delivered earlier than the target date for this project. There is a threat that the early release of a competitor's calendar may weaken the impact of the MNO Manufacturing Company calendar, thereby reducing the anticipated benefits of the Calendar project.
Which 2 statements should be recorded under the Timing of risk management activities heading?

• A. During stage 4, the selected service provider will manage any risks to their Business Case and report these to the Project Manager on a weekly basis.
• B. The Project Board should hold monthly meetings to review project progress.
• C. When closing a project, the follow-on action recommendations should be updated with any risks relating to the realization of benefits after the outsourced services go live.
• D. Any new risks identified during product development should be reported to the Project Manager by the Team Manager when delivering the completed Work Package.
• E. When authorizing a stage, the Project Board will check that the exposure to risk is still acceptable.

Answer: BE

NEW QUESTION 20

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

Answer: CD

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

NEW QUESTION 21
HOTSPOT
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 Product Summary and Product Breakdown Structure provided as additional Information for this question In the Scenario Booklet, answer the following question.
Column 1 is a list of some of the entries in the product breakdown structure. Determine whether each entry in Column 1 has been correctly shown in the product breakdown structure. Select from Column 2 the appropriate statement that correctly describes that entry. Each selection from Column 2 can be used once, more than once or not at all.

• A. Mastered
• B. Not Mastered

Answer: A

Explanation:

NEW QUESTION 22

If Project tolerances were threatened, who needs to be notified?

• A. Project Board
• B. Project Manager
• C. Corporate or Programme Management
• D. Executive

Answer: C

NEW QUESTION 23

During stage 1 the level of performance expected from the service provider was changed. After this change was agreed which of these products will require updating?

• A. Project Brief because this is maintained throughout the project to reflect the customer's quality expectations.
• B. Project Product Description because this contains details of the expected performance of the project's products.
• C. Quality Management Strategy because this is where all of the customer's quality expectations of the project's products should be documented.

Answer: B

NEW QUESTION 24
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