PRINCE2-Practitioner practice materials Questions Answers

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PRINCE2-Practitioner
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Page: 1 / 57
Total Questions: 281

Questions & Answers PDF

• Question 1

  

  ScenarioAdditional InformationChief 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 been decided which of the photographers to use.Which 2 statements explain why the CEO should be appointed as the Executive for this project?

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

  Reveal Answer Answer: D, E Next Question

• Question 2

  

  ScenarioA 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 TechnologyDivision 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 therecommendations 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 Business options heading?

  • The re-engineering of selected business functions would not provide the required outcome.
  • The lack of up-to-date technology in MFH means a re-engineering of existing services will not necessarily deliver the performance improvements required.
  • Use external consultants to provide guidance on the detailed design of the outsourced services.
  • Set up a PRINCE2 project to deliver the outsourced services.
  • Review a list of service providers to determine a short-list of possible service providers. References:

  Reveal Answer Answer: C, D Next Question

• Question 3

  

  ScenarioA 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 either the Records or Reporting headings?

  • Project Support will maintain the Risk Register.
  • The evaluated net effect of all risks will be updated at the end of each stage and included in the End Stage Report.
  • The Change Authority will report monthly to the Project Manager on the status of the change budget.
  • Risks that are likely to occur within the next two weeks should be recorded as imminent.
  • A summary of risks will be maintained and included with the monthly Highlight Reports to the Project Board.

  Reveal Answer Answer: B, C Next Question

• Question 4

  

  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?

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

  Reveal Answer Answer: B Next Question

• Question 5

  

  Project ScenarioCalendar Project (Note: The companies and people within the scenario are fictional.)There has been a reduction in fie number of orders at the MNO Manufacturing Company due in part to the increased marketing activities of its competitors. To help counter this, the company has decided to create a promotional calendar for next year for all its current and prospective customers. The end product of this project will be a prepared calendar pack, ready for printing. The design of the calendar will be similar to one sent out previously, and must reflect the company image as described in the existing corporate branding standards. Another project is currently producing a new company logo when is to be printed on each page of the promotional calendar. The prepared calendar pack will consist of:Design for each month - correctly showing at public holidays and new company logoSelected photographs- 12 professionally-produced photographs, showing different members of staffSelected paper and selected envelope - for printing and mailing the calendarChosen label design - a competition to design a label will be held as part of this projectList of customers - names and addresses of customers to whom the calendar will be sent.The project is currently in initiation and will have two further stages:Stage 2 will include tie activities to:Create the customer fast using information from the Accounts and Marketing departmentsConfirm compliance with the Data Protection LegislationCreate a design for each month - this will be done by the internal creative teamSelect and appoint a professional photographerGather photograph design ideas from previous project and agree photographic session schedulePrepare a production cost forecastSelect paper and envelope.Stage 3 will include the activities to:Produce and select tie professionally-taken photographsHold the label design competition and choose the label designAssemble the prepared calendar pack.A production cost forecast, based on the options and costs for the paper, envelope, printing and marketing of the calendar is to be produced in stage 2. However, the actual production and distribution of the calendars is not within the scope of the project. The product cost forecast will be reviewed by the Project Board to determine whether tie project should continue.It is now 05 October and the prepared calendar pack must be delivered to the print company by 30 November, to enable printing and distribution of the calendar in time for Christmas. The cost of the activities to develop the specialist products and the cost of the project management activities are estimated to be 20,000. There is a project time tolerance of +1 week /-2 weeks and a project cost tolerance of +6,000 / -6,000. A change budget of 500 has been allocated but there is no risk budget.At the end of initiation there is +1 week 1-2 weeks time tolerance for this project. Which statement is true?

  • There can be no time tolerances for any of the stages.
  • All of the project level time tolerance can be allocated to stage 2.
  • The Stage Plan for stage 2 could create some additional project time tolerance by allowing no time tolerance in Team Plans.
  • Additional time tolerance for the project could be found by adding extra resources without affecting other tolerances.

  Reveal Answer Answer: B Next Question

• Question 6

  

  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 without the calendar the company is going to experience difficulties recovering its decline in orders, and alternative solutions are required if the company is going to recover its position?

  • Benefits Review Plan
  • Exception Report
  • End Project Report
  • Risk Register

  Reveal Answer Answer: C Next Question

• Question 7

  

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

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

  Reveal Answer Answer: C Next Question

• Question 8

  

  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 register that the risk of a competitor producing a calendar at the same time was identified at the beginning of the project but the assessment of this risk appears to have been poor?

  • Issue Register
  • Follow-on action recommendations
  • Lessons Report
  • Risk Register

  Reveal Answer Answer: C Next Question

• Question 9

  

  ScenarioA 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?

  • 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.
  • The Project Board should hold monthly meetings to review project progress.
  • 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.
  • Any new risks identified during product development should be reported to the Project Manager by the Team Manager when delivering the completed Work Package.
  • When authorizing a stage, the Project Board will check that the exposure to risk is still acceptable.

  Reveal Answer Answer: B, E Next Question

• Question 10

  

  ScenarioA 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 Expected dis-benefits heading?

  • An investment of 2.5m is required.
  • Staff morale will be negatively affected.
  • The project will take two years to deliver.
  • Staff may lose the opportunity to work in Information Technology.
  • MFH will lose direct control over the outsourced business functions. References:

  Reveal Answer Answer: C, E Next Question

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Total Questions: 281

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