The Leading Guide To PRINCE2-Practitioner Vce

NEW QUESTION 1
HOTSPOT
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.
Using the Project Scenario and the additional information provided for this question in the Scenario Booklet, answer the following question about roles on the Outsourcing project.

• A. Mastered
• B. Not Mastered

Answer: A

Explanation:

NEW QUESTION 2

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 3

There are four steps in the Risk Management procedure, what are they?

• A. Identify, Assess, Resource, Implement
• B. Identify, Evaluate, Resource, Implement
• C. Identify, Assess, Plan, Implement
• D. Identify, Evaluate, Plan, Implement

Answer: C

NEW QUESTION 4

Additional Information
Extract from the Communication Management Strategy.
The project information in the table below is true, but it may not be recorded under the correct heading or be in the correct document.

Using the Project Scenario, select the appropriate response to each of the following 5 questions which have been raised by the Project Board.
The project is now at the end of the initiation stage. Having decided that the Calendar project is a relatively simple project, the Project Manager combined the Starting Up a Project process and the Initiating a Project process. No Project Brief has been produced. Instead the Project Manager used the project mandate to produce a simple Project Initiation Documentation (PlO). The PlO includes the Business Case, a product checklist and several Product Descriptions, Including the Project Product Description. Short sections are also included for each of the strategies and the controls to be applied. The Project Manager has elected to use the Daily Log to record all risks, issues. lessons and quality - results.
After the initiation stage there will be two further stages during which a small number of Work Packages will be authorized. While these are being managed, the Project Manager will hold regular checkpoints, which will support the production of weekly Highlight Reports to the Project Board.
There is no Project Brief. How can there be a common understanding of the desired outcomes for the prepared calendar pack?

• A. The simple Project Initiation Documentation contains the Quality Management Strateg
• B. This contains details of the acceptance criteria for this project.
• C. The Project Brief should have been produced and approved before the project progressed into the initiation stage.
• D. The simple Project Initiation Documentation contains the project definition.

Answer: C

NEW QUESTION 5

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 Reporting arrangements or Problem handling and escalation sections?

• A. Replace entry 8 with 'Checkpoint Report every Monday by 10.00 am' because Highlight Reports are intended for the Project Board.
• B. Delete entry 9 because this level of detail is unnecessary.
• C. Move entry 10 to Problem handling and escalation because that section describes how issues are handled.
• D. Add 'Any risks identified to be added to the Risk Register' to Reporting arrangements.
• E. Delete entry 11 because the impact analysis should be provided when the issue is notified.

Answer: DE

NEW QUESTION 6

During a work package the Team manager needs to keep the project manager informed, which management product is used for this?

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

Answer: B

NEW QUESTION 7

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 Tools and techniques section?

• A. Delete entry 3 because the activities required to create the products should be documented in the relevant plan(s).
• B. Move entry 4 to Reporting because this describes a report on the performance of the Communication procedures used.
• C. Delete entry 5 because the customers are not within the scope of this project.

Answer: B

NEW QUESTION 8

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 9

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 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

Additional Information
Extract from the Communication Management Strategy.
The project information in the table below is true, but it may not be recorded under the correct heading or be in the correct document.

Using the Project Scenario, select the appropriate response to each of the following 5 questions which have been raised by the Project Board.
The project is now at the end of the initiation stage. Having decided that the Calendar project is a relatively simple project, the Project Manager combined the Starting Up a Project process and the Initiating a Project process. No Project Brief has been produced. Instead the Project Manager used the project mandate to produce a simple Project Initiation Documentation (PID). The PID includes the Business Case, a product checklist and several Product Descriptions, Including the Project Product Description. Short sections are also included for each of the strategies and the controls to be applied. The Project Manager has elected to use the Daily Log to record all risks, issues, lessons and quality - results.
After the initiation stage there will be two further stages during which a small number of Work Packages will be authorized. While these are being managed, the Project Manager will hold regular checkpoints, which will support the production of weekly Highlight Reports to the Project Board.
This question provides a number of changes which may or may not be required to the Extract from the Communication Management Strategy provided in the additional information.
Which statement applies to the Information needs for each interested party section?

• A. Delete entry 13 because the activity to provide the weekly updates should be scheduled in the relevant Stage Plan.
• B. Move entry 13 to Tools and techniques because it describes the method to be used to communicate to the individual producing the staff newsletter.
• C. Delete entry 14 because this relates to the development of a particular product and should be recorded under Development interfaces within the relevant Work Package.

Answer: C

NEW QUESTION 12

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 13

Which management product do the Project Board use to decide whether to authorize initiation?

• A. Project Brief
• B. Business Case
• C. Project Initiation Documentation
• D. Project Product Description

Answer: A

NEW QUESTION 14

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 15

Which of the following activities could trigger the production of an exception plan?

• A. Review Stage status
• B. Giving ad hoc direction
• C. Escalating a project issue
• D. Report stage end

Answer: B

NEW QUESTION 16

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 Reasons heading?

• A. The Marketing department believes that sending a promotional calendar to current and prospective customers will increase orders by at least 10%.
• B. 10% of customers have not re-ordered in this financial year.
• C. 1,500 orders are expected, each with an average profit of £2k.
• 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. MNO Manufacturing is experiencing a fall in orders due in part to the increased marketing activities of its competitors.

Answer: BE

NEW QUESTION 17

Additional Information

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

• A. Retain because he has a professional facilities qualification and so is in a position to specify the needs of his division.
• B. Retain because he will be able to advise on many of the products that will enable outsourcing to happen, such as the 10-year outsourcing service contract.
• C. Retain because he is well-regarded within the Ministry because of the efficiencies, superb service and savings he has achieved in the Facilities Division.
• D. Add 'Outcome Account Manager' because he will advise on potential changes and their impact on the integrity of the project's products.
• E. Remove because he is involved with the project and is therefore NOT independent.

Answer: BD

NEW QUESTION 18

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 Costs heading?

• A. The MNO marketing budget this year is £120k.
• B. The project will be funded from the business marketing budget
• C. 10 further orders with an average profit of £2k will deliver a benefit of £20k in the first year.
• D. The new company logo is estimated to cost £4k.
• E. Project costs are estimated to be a total of £26.5k.

Answer: BE

NEW QUESTION 19

It is now late October and the project is in stage 3. The label design competition has been held and the photos of the staff have been taken. The CEO and Marketing Director still need to choose the winning label design and the 12 photos for the calendar. However, the Executive has learned that two competitors are issuing calendars to MNO's customers by the middle of November. After analyzing the impact of this Issue, one of the options the Project Manager has presented to the Project Board is to close the project prematurely.
There are a number of key facts relating to this project that would need to be recorded if the project Y-e to be closed now.
Which product should show that the project has been closed prematurely and has not achieved the objectives defined in the Project Initiation Documentation (PID)?

• A. Benefits Review Plan
• B. End Project Report
• C. Exception Report
• D. Project closure notification

Answer: B

NEW QUESTION 20

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 21

While deciding on how the work of the project should be approached the following were considered.
Which statement is appropriate for inclusion in the project approach heading in the Project Brief?

• A. The Project Manager will involve the selected service provider in the creation of the Stage Plan for stage 4.
• B. New up-to-date software will be obtained to produce the graphical sections of the Project and Stage Plans.
• C. The detailed designs (future process, systems, operating and organization models) will be based on the existing high-level designs.

Answer: C

NEW QUESTION 22
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