A Review Of Printable PRINCE2-Practitioner Exam Price

NEW QUESTION 1

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 Marketing Director should be appointed as a Senior User for this project?

• A. She can represent the Marketing department.
• B. She previously had a successful career in publicity.
• C. The Marketing department will help to deliver the benefits of this project.
• D. The project will be funded from the business marketing budget.
• E. A number of the products will be produced by the Sales department and the Marketing department.

Answer: AC

NEW QUESTION 2

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 contains a number of technical terms that are missing from its glossary of terms.

• A. Obtain agreement from the Director of Facilities Division to add these into the glossary of terms within the remaining +2 days tolerance.
• B. Raise an issue (off-specification).
• C. Raise an issue (request for change).
• D. No action required.

Answer: A

NEW QUESTION 3

Which of the following is False?
A Successful project management team should.

• A. Have business, user and supplier stakeholder representation
• B. Never be reviewed as members should stay with the team for the duration
• C. Ensure appropriate governance by defining responsibilities for directing, managing anddelivering the project and clearly defining accountability at all levels
• D. Have an effective strategy to manage communication flows to and from stakeholders

Answer: B

NEW QUESTION 4

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 Major risks heading?

• A. Due to market conditions a suitable service provider may not be found, possibly leading to premature closure of the project.
• B. Owing to employment contract changes staff may resist outsourcing, which would make it difficult to transfer staff to the selected service provider.
• C. MFH's operations may be reduced and the 1a-year contract may not achieve its estimated value of £80m, which would reduce the service provider's profit.
• D. The initial estimates, taken from the feasibility study report, indicate that the project will take two years to complete, which means that the business problems would remain for this period.
• E. The management stages recommended by the consultants may not be appropriate, resulting in confusion in planning.

Answer: BD

NEW QUESTION 5

While preparing the Risk Management Strategy, the Project Manager considered the commercial customer/supplier environment and how this may affect the management of risk. Which approach should the Outsourcing project adopt?

• A. Plan to use the selected service provider's risk management procedures.
• B. All project risks associated with the specialist deliverables should be owned by the selected service provider.
• C. Due to the sensitive nature of this project, consideration should be given to creating a separate Risk Register to be held by MFH and the selected supplier.

Answer: C

NEW QUESTION 6

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 7

Which of the following statements is TRUE with regard to expected benefits?

• A. They cannot be assigned
• B. They don't need to follow corporate objectives
• C. They should be measurable
• D. Tolerances cannot be set against expected benefits

Answer: C

NEW QUESTION 8
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.
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.
Column 1 contains a number of possible risk responses to the above risk. For each risk response, select from Column 2 the appropriate risk threat response type that it represents. 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 9

Which of the following statements best describes what a risk owner is?

• A. Best placed to keep an eye on the risk
• B. Carry out the response actions to a risk
• C. Responsible for management, monitoring and control of all aspects of a risk
• D. Reports to the project manager regularly on the status of a risk

Answer: C

NEW QUESTION 10

Which statement is an appropriate entry for the project approach heading within the Project Brief?

• A. The initial estimates from the feasibility study will be verified during the initiation stage.
• B. MFH must better manage suppliers' performance.
• C. The Information Technology Division and the Facilities Division will be outsourced to a single service provider.
• D. The Project Manager will be responsible for ensuring that the agreed project approach remains an appropriate choice.

Answer: C

NEW QUESTION 11

Extract from the Project Product Description (with errors)

Which 2 statements apply to the Customer's quality expectations section?

• A. Delete entry 16 because this should be shown on the Product Description for the photos.
• B. Delete entry 17 because this is beyond the scope of this project.
• C. Delete entry 18 because standards should NOT be shown here.
• D. Delete entry 19 because this should appear in the Product Description for the calendar and not the Project Product Description.
• E. Delete entry 20 because this is an expected benefit and should be recorded in the Business Case.

Answer: BE

NEW QUESTION 12

Which of the following statements is true of the business interest on the project?

• A. Ensures the project provides value for money
• B. Ensures the requirements for the project are defined
• C. Ensures the products produced meet the desired quality
• D. Represents the users of the product

Answer: A

NEW QUESTION 13

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 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 can provide an evaluation of the potential impact the calendar will have on sales.
• C. He is able to advise on suitable stakeholder engagement of current and prospective customers.
• 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 can resolve any conflict in requirements between the Sales department and the Marketing department.

Answer: BC

NEW QUESTION 14

Which of the following activities is the Executive responsible for?

• A. Ensure the desired outcome of the project is specified
• B. Responsible for the benefits review plan
• C. Assess and update the Business Case at the end of each stage
• D. Responsible for the Benefits Review Plan post project

Answer: B

NEW QUESTION 15

Which of the following statements is NOT correct?
The Learn from Experience principle suggests that lessons should be actively sought...

• A. When Starting a Project
• B. When Initiating a Project
• C. As the project progresses
• D. As the project closes

Answer: B

NEW QUESTION 16

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 11 because the photographer is internal to the project management team.
• C. Delete entry 12 because the printing of the calendars is outside of the scope

Answer: A

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.
There is no mention of any Stage Plans, yet there are two further stages proposed. How will this be resolved?

• A. 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.
• B. Whilst the activities are divided into two further stages, there is no reason why the Calendar project should use stage
• C. The project will therefore be run as a single stage project and the activities will be added to the Initiation Stage Plan.
• D. 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.

Answer: A

NEW QUESTION 18

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 19

Who sets the tolerances for a work package?

• A. The project board
• B. The project manager
• C. The team manager
• D. Corporate or programme management

Answer: B

NEW QUESTION 20

Who is responsible for reviewing the risk management practices to ensure they are in line with the project's risk management strategy?

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

Answer: D

NEW QUESTION 21

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.
Which 2 statements should be recorded under the Expected dis-benefits heading?

• A. A high quality, glossy product will involve additional costs.
• B. Individuals in the engineering team who are not selected to appear in the calendar photographs will become de-motivated.
• C. The calendar may not result in the expected 10% increase in orders.
• D. Because the Calendar project is a priority for the MNO Manufacturing Company, the delivery of other projects within the Marketing department will be delayed.
• E. The calendar may not result in the 10 further orders from the list of prospective customers in 12 months.

Answer: BD

NEW QUESTION 22

Which of the following statements would NOT be included in the Project Product Description?

• A. Purpose of the product
• B. Composition
• C. Project level tolerances
• D. Quality criteria

Answer: D

NEW QUESTION 23

Who is responsible for the initial creation of the Configuration Item records?

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

Answer: D

NEW QUESTION 24
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