Prince2 Practitioner Questions + Answers Part 2

[answerhappygod]

QUESTION 20
ABC Company uses a standard development model to develop courses and uses PRINCE2 to manage these projects. The objectives from the Health and Safety Training Project have been documented in the business plan of ABC Company. This business plan has triggered this project. As a result, to save time, the executive has decided to simplify the ‘starting up a project’ process. The project mandate will be adapted and becomes the project brief.
Is this appropriate, and why?
A. Yes,becausethebusinessoutcomesareclear,theprojectbriefcanbeasamplestatementelaboratingthemandate.
B. Yes,becausetheexecutivecaninitiatetheprojectbasedontheprojectmandatebypassingthe‘startingupaproject’process. C. No, because the project brief should be a statement which includes a fuller description of the project.
D. No, because capturing lessons from previous projects identify lessons to be applied to this project.
Correct Answer: C Section: (none) Explanation
Explanation/Reference:
QUESTION 21
ABC Company has decided to include the Health and Safety Training Project in a programme to support their strategy to deliver globally. The programme team has provided the detailed business justification and, as a result, the project board has decided that the business case will not need refining further during the ‘initiating a project’ process.
Is this an appropriate action for the project board, and why?
A. Yes,becausetheprojectboardareabletousethebusinesscaseprovidedbytheprogramme.
B. Yes,becausewhentheprojectispartofaprogramme,theprogrammeteamprovidesthebusinesscase. C. No, because the programme team cannot constrain the project manager’s choices.
D. No, because each project in the programme will need a revised business case.



Correct Answer: A Section: (none) Explanation
Explanation/Reference:
QUESTION 22
At the end of stage 2, the specialist ‘e-learning course’ supplier will be selected. As a result, it is decided that the quality management approach will not be created until the end of stage 2, to take into account this supplier’s standards and techniques.
Is this appropriate, and why?
A. Yes,becausethequalitymanagementapproachshouldtakeintoaccountthesupplier’sstandards,toolsandtechniques. B. Yes,becausetheproductdescriptionforeachproductwilldefinetherequiredqualityapproachwithineachstage.
C. No, because the quality management approach should be created during the initiation stage and updated later.
D. No, because the quality management approach should be limited to ABC Company’s quality standards.
Correct Answer: C Section: (none) Explanation
Explanation/Reference:
QUESTION 23
The executive identified that there would be a benefit to the construction companies as their working time lost due to accidents would be reduced. This was included as a benefit to ABC Company in the business case for the Health and Safety Training Project.
Is this appropriate, and why?
A. Yes,becausethebenefitstothecustomerareanessentialpartofbusinessjustificationforaproject.
B. Yes,becausebothtangibleandintangiblebenefitsshouldbeincludedinthebusinesscase.
C. No, because ABC Company will not achieve their benefits if construction companies do not book the courses. D. No, because it is the customer’s benefits that should be used to justify the project business case.
Correct Answer: A Section: (none) Explanation
Explanation/Reference:



QUESTION 24
A construction company that is one of ABC Company’s key clients has agreed to provide a member of the staff to review and comment on the ‘e-learning course’. Which stakeholder interest should the member of staff represent, and why?
A. Supplier,becausethisstakeholderprovidestheexpertiserequiredbytheproject. B. Supplier,becausethisstakeholderisanexternalsupplier.
C. User, because this stakeholder may train its staff using the ‘e-learning course’.
D. User, because this stakeholder ensures that the project provides value for money.
Correct Answer: C Section: (none) Explanation
Explanation/Reference:
QUESTION 25
Use the ‘Additional Information’ in the Scenario Booklet to answer this question.
The Operations Director is the executive for the project and has proposed that a senior course developer be appointed as project manager. The course developer works in the Training Development Manager’s team and has a good understanding of the standard course development model. The course developer was a team manager on a previous project for which the Operations Director was the executive.
Is this proposed appointment appropriate, and why?
A. Yes,becausethecoursedeveloperisresponsibleforensuringthattrainersdelivercoursestotherequiredstandard.
B. Yes,becausethecoursedeveloperislikelytohavetheprojectmanagementandspecialistknowledgerequired.
C. No, because the course developer’s team reports to the Business Development Director, not the Operations Director. D. No, because there is a conflict of interest as the Training Development Manager is responsible for gaining accreditation.
Correct Answer: A Section: (none) Explanation
Explanation/Reference:
QUESTION 26
The ‘classroom-based training materials’ will be used as the basis for developing the ‘e-learning course’. As a result, the executive wants to ensure that the ‘classroom-based training materials’ are of the required standard. The executive has asked to meet the project manager every day during stage 2 to discuss



progress and identify any concerns regarding quality.
Is this an appropriate approach to applying the organization theme, and why?
A. Yes,becausetheexecutiveshouldbeavailabletoprovideadhocdirectiontotheprojectmanager.
B. Yes,becausetheexecutiveshouldbethekeydecision-makerontheproject,supportedbyotherprojectboardmembers. C. No, because the senior user should be responsible for specifying the quality criteria for the training materials.
D. No, because the project manager should be given authority to manage the project on a day-to-day basis.
Correct Answer: D Section: (none) Explanation
Explanation/Reference:
QUESTION 27
ABC Company has a number of projects in progress. The executive of the Health and Safety Training Project is also a member of the project board for two other projects and is very busy. As a result, during this initiation stage, the executive has appointed another person to carry out both their business assurance and the role of change authority for minor and medium severity issues.
Is this appropriate, and why?
A. Yes,becausepeoplewithdelegatedprojectassurancerolesmayactasthechangeauthority.
B. Yes,becauseprojectsthatarelikelytohavemanychangesshoulddelegatethechangeauthority.
C. No, because the decision to have a change authority should be made before the project is authorized. D. No, because the project manager identifies the level of tailoring that is relevant for the project.
Correct Answer: A Section: (none) Explanation
Explanation/Reference:
QUESTION 28
The development of the ‘e-learning course’ will be outsourced to an external supplier and their key members will join the project management team. The supplier wants to keep their work processes confidential and not share these with ABC Company. ABC Company has agreed.
Who should approve the external supplier’s team plan?



A. Seniorsupplier
B. Projectmanager
C. Supplier assurance
D. Corporate, programme management or customer
Correct Answer: D Section: (none) Explanation
Explanation/Reference:
QUESTION 29
The project is at the end of stage 4. The project manager has changed the benefits management approach. It now includes all the activities necessary to measure the increased revenue.
Who should approve this update?
A. Corporatemanagement B. Projectboard
C. Project assurance
D. Project manager
Correct Answer: B Section: (none) Explanation
Explanation/Reference:
QUESTION 30
The Health and Safety Training Project is part of a programme of strategic expansion, which is important for ABC Company’s continued operation. At the end of stage 2, the estimated project costs are greater than the expected benefits in the business case. The project board has reviewed the situation and asked programme management to decide whether the project should be closed prematurely.
Is this an appropriate application of the ‘manage by stages’ principle, and why?
A. Yes,becausedecisionsaboutclosureshouldbeescalatedtoprogrammemanagement,unlessotherwiseinstructed. B. Yes,becausetheprojectboardshouldescalatesignificantdecisionstoprogrammemanagement.
C. No, because this contradicts the ‘manage by exception’ principle.
D. No, because the project board should decide whether to continue with the project.



Correct Answer: A Section: (none) Explanation
Explanation/Reference:
QUESTION 31
The executive has set the following tolerances for stage 2: Time (+/- 1 week)
Cost (+/- £20,000)
Scope (using MoSCoW prioritization technique)
Risk (based on the risk appetite defined in the risk management approach)
These tolerances have been recorded in the stage plan. The project manager will report progress regularly via highlight reports to the project board and use exception reports to raise exceptions. In addition, the project assurance role will monitor the stage to provide confidence to the project board that exceptions are being reported.
How well does this apply the ‘manage by exception’ principle, and why?
A. Itappliestheprinciplewell,becausetolerancesshouldbesetfortherelatedaspectsofprojectperformanceforeachstage.
B. Itappliestheprinciplewell,becausetheprojectmanagerneedstocontroltheprojectusingdiscretemanagementstages.
C. It applies the principle poorly, because tolerances should be set for each stage against each of the six aspects of project performance. D. It applies the principle poorly, because it is the regular reporting of progress that should give the project board the required confidence.
Correct Answer: C Section: (none) Explanation
Explanation/Reference:
QUESTION 32
During stage 3, the operational staff that handle course bookings asked for the project scope to be increased for an online booking function. The additional product has been as it will enable them to process bookings more quickly and accurately.
Is this an appropriate application of the ‘focus on products’ principle, and why?
A. Yes,becausethegoalistoseekopportunitiestoimplementimprovementsafterthelifeoftheproject. B. Yes,becausetheprojectneedstofulfillstakeholderexpectationsbydeliveringtheproductsrequired.



C. No, because there needs to be an understanding of the products from the start of the project. D. No, because existing product descriptions provide a means to estimate effort to planning.
Correct Answer: B Section: (none) Explanation
Explanation/Reference:
QUESTION 33
ABC Company has a standard course development model with four defined stages that the company manages using PRINCE2. The project manager for the Health and Safety Training Project has recommended the stage 2 of the standard model be split into two separate stages. As a result, there will now be five management stages in the project.
Is this an appropriate application of the ‘tailor to suit the project’ principle, and why?
A. Yes,becausetheprojectmanagercanadaptorcombinePRINCE2processtosuittheproject. B. Yes,becausethestandardcoursedevelopmentstructureshouldbetailoredtosuittheproject. C. No, because a simple project should have no more than two management stages.
D. No, because the standard course development structure should be applied to the project.
Correct Answer: B Section: (none) Explanation
Explanation/Reference:
QUESTION 34
During stage 3, project costs are increasing but there will still be a positive return on investment, as documented in the business case. However, corporate management has recently revised its targets for return on investment and has decided to stop the project as it will not meet the new targets.
Is this an appropriate application of the ‘continued business justification’ principle?
A. Yes,becausechangesincorporatestrategymayimpactaproject’sjustification.
B. Yes,becauseachangeinaproject’sjustificationshouldtriggerprematureclosure.
C. No, because the project business case still justifies a project.
D. No, because changes in corporate strategy should not impact a project once authorized.
Correct Answer: C



Section: (none) Explanation
Explanation/Reference:
QUESTION 35
One of the senior managers of the company that is developing the ‘e-learning course’ has worked with ABC Company before. The team manager for the delivery of the ‘e-learning course’ has looked on ABC Company’s intranet, but cannot find any reference to this work. The team manager has contacted the senior manager to discuss this project.
Is this an appropriate application of the ‘learn from experience’ principle, and why?
A. Yes,becausetheprojectinvolvesmorethanoneorganization.
B. Yes,becausetheteammanagershouldactivelylookforusefulinformation.
C. No, because the senior manager should advise the team manager of any lessons. D. No, because every project is unique and should deliver specific business objectives
Correct Answer: B Section: (none) Explanation
Explanation/Reference:



Business Case Theme Testlet 1
Scenario
Additional Information
During the initiation stage the Project Manager met with the Marketing Director to find out more about the requirements of the promotional calendar and recorded the following notes:
There has been a reduction in the order numbers at the MNO Manufacturing due in part to the increased marketing activities of its competitors. 10% of customers have not re-ordered in this financial year and staff morale is poor. A number of skilled staff have left as a result and replacement staff have not been recruited due to the reduced operation. If the project is successful, a recruitment campaign will be required to fill the existing staff vacancies and there may be a requirement for additional staff. Operational costs are likely to increase because skilled staff are expensive and difficult to find.
In financial terms, there were a total of 1,500 orders in the last financial year, each with an average profit of £2k. The Marketing department believes that sending a promotional calendar to our current and prospective customers would increase orders by at least 10% with a minimum of 10 further orders from the list of prospective customers within 12 months from the date of distribution.
The Marketing Director will be funding the project from the business marketing budget. She believes that the effect of a good company image portrayed by a successful calendar would last into a second year. She has forecast the same increase in orders for a second year and predicts that the annual employee satisfaction survey will show a measurable improvement in staff morale.
A number of alternatives were explored, including:
20% discount for all repeat customers - not cost-effective and very short term
A promotional calendar as a free Christmas gift - would target current and prospective customers and the benefits would last into a second year A series of television and press advertisements was too expensive
A direct mail shot to all customers - benefit would be short term
Creation of an internet website - would not suit all customers
The calendar is seen as the favored option, as long as the company's competitors do not increase their marketing activity. Whilst the Marketing department wants a very high quality, glossy product, the project management team must be aware of the cost this will incur.
Using the Project Scenario and the additional Information provided for this question In the Scenario Booklet, answer the following question.
QUESTION 1
Which 2 statements should be recorded under the Reasons heading?
A. TheMarketingdepartmentbelievesthatsendingapromotionalcalendartocurrentandprospectivecustomerswillincreaseordersbyatleast10%. B. 10%ofcustomershavenotre-orderedinthisfinancialyear.
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. MNOManufacturingisexperiencingafallinordersdueinparttotheincreasedmarketingactivitiesofitscompetitors.
Correct Answer: BE Section: (none) Explanation
Explanation/Reference:
QUESTION 2
Which 2 statements should be recorded under the Business options heading?
A. ProduceapromotionalcalendarasafreeChristmasgifttocurrentandprospectivecustomers. B. Useaprofessionalphotographertocreatethephotographsforthecalendar.
C. Create the photographs for the calendar internally.
D. Outsource the creation of the calendar to a professional marketing company.
E. Donothing.
Correct Answer: AE Section: (none) Explanation
Explanation/Reference:
QUESTION 3
Which 2 statements should be recorded under the Expected benefits heading?
A. Increaseordersbyatleast10%withaminimumof10furtherordersfromthelistofprospectivecustomerswithin12months.
B. Itwillbesimilartocalendarssentoutinpreviousyears
C. The Marketing department believes that the benefits of a good company image, as portrayed by a successful calendar, will last into a second year and bring the same increase in orders.
D. The calendar will contain photos of both staff and company products.
E. TheMarketingdepartmentwantaveryhighquality,glossyproductastheybelievethiswillbemoreappealingtocustomers.
Correct Answer: AC Section: (none) Explanation



Explanation/Reference:
QUESTION 4
Which 2 statements should be recorded under the Expected dis-benefits heading?
A. Ahighquality,glossyproductwillinvolveadditionalcosts.
B. Individualsintheengineeringteamwhoarenotselectedtoappearinthecalendarphotographswillbecomede-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. Thecalendarmaynotresultinthe10furtherordersfromthelistofprospectivecustomersin12months.
Correct Answer: BD Section: (none) Explanation
Explanation/Reference: