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NEW QUESTION 90
ABC Company carried out a similar project two years ago, in response to changes in health and safety legislation for the health service. The experiences from that project were used to refine the corporate risk management policy. For that reason, the project board decided to use the corporate risk management policy in the risk management approach for this project.
Is this appropriate, and why?
- A. No, because a separate risk management approach is not necessary when the company has a risk management policy.
- B. Yes, because experience from previous projects should be taken into account in the risk management approach.
- C. No, because the risk management approach should be tailored to suit the project and its environment.
- D. Yes, because the corporate risk management policy was updated, as a result of lessons from previous projects.
Answer: B
NEW QUESTION 91
Which statement is an appropriate entry for the Initiation Stage Plan?
- A. The project management team will consist of representatives from the IT and Facilities Divisions.
- B. The initial project cost estimate of (GBP)2.5m, will have a tolerance of +(GBP)125k J(GBP)75k.
- C. The Daily Log has been updated with the new risks which were identified while preparing the Initiation Stage Plan.
- D. The plan is based on the external outsourcing consultants being available at the start of the initiation stage.
Answer: D
NEW QUESTION 92
Which 2 statements should be recorded under the Costs heading?
- A. Project costs are estimated to be a total of E26.5k.
- B. 10 further orders with an average profit of E2k will deliver a benefit of E20k in the first year.
- C. The new company logo is estimated to cost E4k.
- D. The project will be funded from the business marketing budget
- E. The MNO marketing budget this year is E120k.
Answer: A,D
NEW QUESTION 93
HOTSPOT
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.
Lines A to E 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.
Hot Area:
Answer:
Explanation:
NEW QUESTION 94
Which statement applies to the Introduction section?
- A. Delete entry 3 because it is the Project Manager's responsibility to implement the Quality Management Strategy.
- B. Move entry 3 to the Roles and responsibilities section because this is a quality responsibility.
- C. Delete entry 1 because the project approach is defined in the Project Brief.
- D. Delete entry 2 because this is the Project Manager's responsibility.
Answer: B
Explanation:
Explanation/Reference:
NEW QUESTION 95
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 Risk tolerance heading?
- A. The Project Board's threshold level of risk exposure is any combination of medium, high and very high impact, with high and very high probability.
- B. The cost of all fallback plans must be contained within the project's tolerance.
- C. Corporate management's threshold level of risk exposure is any combination of high and very high impact and probability.
- D. The Project Manager's threshold level of risk exposure is low impact and probability.
- E. The risk budget will have a tolerance of +/~ 10%.
Answer: A,B
Explanation:
Explanation/Reference:
Risk Theme
Question Set 2
NEW QUESTION 96
Scenario
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 Project Scenario and the Extract from Stage Plan for stage 3 provided as additional intonation for this question in the Scenario Booklet, answer the following 5 questions.
The Stage Plan for stage 3 has been produced.
The Engineering Manager insists that there are to be no interruptions to operations whilst photographs are being taken of the engineering staff performing their everyday duties and operating machinery. Two weeks ago the professional photographer produced the photo session schedule based on the operational staff schedule. The operational staff schedule is produced weekly and maintained by the Engineering Manager.
None of the £500 change budget has been used to date and this is available for the stage.
Which 2 statements apply to the Monitoring and control section?
- A. Delete entry 11 because this relates to the monitoring and controlling of the Project Plan, not the Stage Plan.
- B. Move entry 12 because the Highlight Reports are deliverables of this stage and should be shown under Product descriptions.
- C. Delete entry 13 because this is part of the Controlling a Stage process.
- D. No change to entry 12 because this describes how the Project Board will control the stage.
- E. Delete entry 14 because the Product Status Account is NOT an ad-hoc report. It is produced at the end of each stage to identify any variations between planned status, reported status and actual status of the stage's products.
Answer: A,D
NEW QUESTION 97
Scenario
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 Project Scenario and the Extract from Stage Plan for stage 3 provided as additional intonation for this question in the Scenario Booklet, answer the following 5 questions.
The Stage Plan for stage 3 has been produced.
The Engineering Manager insists that there are to be no interruptions to operations whilst photographs are being taken of the engineering staff performing their everyday duties and operating machinery. Two weeks ago the professional photographer produced the photo session schedule based on the operational staff schedule. The operational staff schedule is produced weekly and maintained by the Engineering Manager.
None of the £500 change budget has been used to date and this is available for the stage.
Which 2 statements apply to the Budgets section?
- A. Amend entry 15 because it should also include the cost of management activities.
- B. Add 'Change budget - £500'.
- C. Delete entry 16 because timescales should NOT be shown under the heading of budgets.
- D. Delete entry 17 because the risk budget should be shown in the Risk Management Strategy.
- E. Add 'Cost tolerance - +£6k 1-£6k
Answer: A,B
NEW QUESTION 98
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, because this stakeholder is an external supplier.
- B. Supplier, because this stakeholder provides the expertise required by the project.
- C. User, because this stakeholder ensures that the project provides value for money.
- D. User, because this stakeholder may train its staff using the 'e-learning course'.
Answer: D
NEW QUESTION 99
The project board has asked for highlight reports every six weeks during stage 3. As a result, the project manager has asked each team manager for checkpoint reports every six weeks, in order to collate these into the highlight report. The team manager for the 'marketed courses' is new to team management.
Is this an appropriate action as part of the 'controlling a stage' process, and why?
- A. Yes, because checkpoint reports are a time-driven control providing progress information.
- B. No, because the project board should decide on the frequency and content of progress reporting.
- C. Yes, because the project board will need to be updated with the progress of every team.
- D. No, because the frequency of reporting should reflect the level of control required for the work package.
Answer: A
NEW QUESTION 100
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 Project Scenario and the Extract from Stage Plan for stage 3 provided as additional intonation for this question in the Scenario Booklet, answer the following 5 questions.
The Stage Plan for stage 3 has been produced.
The Engineering Manager insists that there are to be no interruptions to operations whilst photographs are being taken of the engineering staff performing their everyday duties and operating machinery. Two weeks ago the professional photographer produced the photo session schedule based on the operational staff schedule. The operational staff schedule is produced weekly and maintained by the Engineering Manager.
None of the (GBP)500 change budget has been used to date and this is available for the stage.
Which 2 statements apply to the Planning assumptions section?
- A. Move entry 9 to External dependencies because the photo session schedule is created by the professional photographer.
- B. Move entry 8 to External dependencies because the label designs are created outside of the scope of the project.
- C. Delete entry 10 because the inclusion of different members from the Engineering team in each photo should be shown in the Product Description for the photos.
- D. Delete entry 9 because the photo session schedule should have been approved as part of stage 2.
- E. No change to entry 8 because this cannot be confirmed until all of the label designs entries have been received and an assessment made.
Answer: C,E
NEW QUESTION 101
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 Extracts or references or Approval method sections?
- A. A suitable entry for Extracts or references would be 'Product Descriptions are available from Project Support'.
- B. Delete entry 12 because this should be the Team Plan not the Stage Plan.
- C. Delete entry 13 because this is NOT a Project Assurance responsibility.
- D. Project Manager.
- E. Move entry 13 to Reporting arrangements because this describes how completion will be advised to the
- F. Add 'The Project Manager is to be advised of completion of the Work Package by email'.
Answer: A,B
NEW QUESTION 102
Which of the following activities is NOT an action of preparing for planned closure?
- A. Update the Project Management Team
- B. Request a product status account
- C. Update the project plan with actual
- D. Confirm project has delivered what is defined in Project Product Description
Answer: A
NEW QUESTION 103
Scenario
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 Project Scenario and the Extract from Stage Plan for stage 3 provided as additional intonation for this question in the Scenario Booklet, answer the following 5 questions.
The Stage Plan for stage 3 has been produced.
The Engineering Manager insists that there are to be no interruptions to operations whilst photographs are being taken of the engineering staff performing their everyday duties and operating machinery. Two weeks ago the professional photographer produced the photo session schedule based on the operational staff schedule. The operational staff schedule is produced weekly and maintained by the Engineering Manager.
None of the £500 change budget has been used to date and this is available for the stage.
Which 2 statements apply to the Planning assumptions section?
- A. Move entry 9 to External dependencies because the photo session schedule is created by the professional photographer.
- B. Move entry 8 to External dependencies because the label designs are created outside of the scope of the project.
- C. Delete entry 10 because the inclusion of different members from the Engineering team in each photo should be shown in the Product Description for the photos.
- D. Delete entry 9 because the photo session schedule should have been approved as part of stage 2.
- E. No change to entry 8 because this cannot be confirmed until all of the label designs entries have been received and an assessment made.
Answer: C,E
NEW QUESTION 104
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 if anybody has any remaining resource costs to be charged to the project, they should ensure this is done by 10 November?
- A. Follow-on action recommendations
- B. Project closure notification
- C. End Project Report
- D. Benefits Review Plan
Answer: B
NEW QUESTION 105
Project Scenario - Health and Safety Training Project:
ABC Company is a well-established training company that uses a standard model to develop training materials and deliver courses to customers.
ABC Company has commissioned a project in response to recent changes in government legislation relating to health and safety on construction sites. The project will deliver "capability to provide health and safety training", including the materials needed for classroom-based training and e-learning. The expected benefits for construction companies include a reduction in lost days and legal costs due to accidents.
The e-learning course will be developed by a specialist external consultancy. The materials for classroom-based training will be delivered by ABC Company's development team. All course materials will be piloted before they are used. ABC Company will deliver training to its customers and also hopes to sell the course materials to other training companies as part of their operational business. ABC Company will use their own sales and marketing departments to promote the courses.
The legislation requires construction companies to comply with the new legislation within two years. The course materials and trainers have to be accredited by a government agency before courses can be delivered.
ABC Company is planning to deliver pilot courses within five months of starting the project.
The ABC Company standard development model for new courses recommends the following stages:
End of the Project scenario.
Additional Information:
The Chief Executive Officer (CEO) founded the company five years ago. Under her leadership, ABC Company has grown quickly into a successful training company. It delivers a range of accredited professional training.
The Finance Director is also a founder member of ABC Company and is responsible for authorizing budgets for the Operations and Development Teams. She authorizes all large contracts personally.
The Purchasing Manager reports to the Finance Director and is responsible for managing and monitoring supplier contracts.
The Operations Director is responsible for the delivery off all training and for the training development budget. His department organizes courses, venues and trainers. They work with the Product and the Sales teams to provide a comprehensive training schedule. ABC Company's IT manager reports to the Operations Director.
The Business Development Director has recently been appointed to identify new training needs and propose new products. She will work with the Operations. Director to ensure a cost-conscious approach and that appropriate development technologies are used for the health and safety course.
The Training Development Manager reports to the Business Development Director and is responsible for developing training materials and gaining accreditation, in accordance with the standard course development model. Course developers in his team have skills in a range of development technologies and are allocated to projects as needed.
The Training Delivery Manager, who reports to the Operations Director, is responsible for ensuring that internal and external trainers deliver ABC Company training courses to the required standard. He also checks course materials to ensure they are fit for purpose and of the required quality.
The Central Services Director has responsibility for corporate communications, facilities management and configuration management. He recently led a project to consolidate all company quality systems into one quality management system and set up a corporate quality department, now managed by the Corporate Quality Manager.
The Corporate Document Manager reports to the Central Services Director. She helped establish the company's document management system and now operates it across the business. She manages a team of administrators and contracts staff when workload is high.
The Sales Director joined ABC Company two months ago and is keen to establish himself by suggesting new markets for the courses and material. All account managers and the marketing team report to him. They promote existing training courses to other training companies and existing customers.
End of the additional information.
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, because a change in a project's justification should trigger premature closure.
- B. No, because changes in corporate strategy should not impact a project once authorized.
- C. No, because the project business case still justifies a project.
- D. Yes, because changes in corporate strategy may impact a project's justification.
Answer: C
NEW QUESTION 106
Whilst identifying the mailing costs for the calendars the Project Manager was surprised to find the costs could vary considerably depending on the size of the package and the delivery service used. For the purpose of this project, the Project Manager has selected an appropriate service but feels that a corporate standard for postage would have reduced the time and effort invested. It could reduce the company's overheads by up to £20k per year. How should the Project Manager record this observation within the project?
- A. Record the observation in an Exception Report to the Project Board.
- B. Make a note of the observation in the Daily Log to be transferred to a Benefits Review Plan at the end of the project.
- C. Make an entry in the Lessons Log for future consideration by corporate management.
- D. Produce a project mandate, outlining the potential savings to be achieved by the introduction of a corporate standard.
Answer: C
NEW QUESTION 107
Which of the following principles describes this statement?" xxx defines tolerances for each project objective to establish limits of delegated authority"
- A. Focus on products
- B. Manage by exception
- C. Manage by stages
- D. Learn from experience
Answer: B
NEW QUESTION 108
ABC has experience of delivering training projects that respond to new legislation. Previous projects have had to change the acceptance criteria, due to further updates being made to legislation during the project.
What action should be taken to address this, and why?
- A. Agree and prioritize the acceptance criteria during the initiation stage, because these criteria will be used to determine if the project can be closed.
- B. Agree and prioritize the acceptance criteria during the initiation stage, because they can be amended through change control, if needed.
- C. Set the quality tolerances for the acceptance criteria in the product descriptions, because this would allow for additional changes in legislation.
- D. Set the quality tolerances for the acceptance criteria in the product descriptions, because quality tolerances define the acceptable range.
Answer: B
NEW QUESTION 109
After preparing the stage 3 plan, the project manager left the company. The project board has decided that, as the stage plan has been agreed, it will not appoint a project manager for stage 3. The team managers will report directly to the project board and will prepare highlight reports instead of checkpoint reports.
Is this an appropriate tailoring of the roles in the 'managing a stage boundary' process?
- A. No, because the reporting in the 'controlling a stage' process should not be changed.
- B. Yes, because the team managers should have the information required to prepare highlight reports.
- C. No, because the team managers should not share the responsibilities of the project manager.
- D. Yes, because work may be delegated to those with the necessary skills, such as a team manager.
Answer: C
Explanation:
Explanation/Reference: https://www.prince2primer.com/the-project-manager-role/
NEW QUESTION 110
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. Add 'Facilities Team Manager, with responsibility for the transfer of services provided by the Facilities Division' to Development Interfaces.
- F. Operations and maintenance Interfaces.
Answer: D,E
NEW QUESTION 111
Scenario
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. Remove because he is involved with the project and is therefore NOT independent.
- B. Retain because he is well-regarded within the Ministry because of the efficiencies, superb service and savings he has achieved in the Facilities Division.
- C. Add 'Outcome Account Manager' because he will advise on potential changes and their impact on the integrity of the project's products.
- D. Retain because he has a professional facilities qualification and so is in a position to specify the needs of his division.
- E. 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.
Answer: C,E
NEW QUESTION 112
HOTSPOT
Extract from the Project Product Description (with errors)
The information in Column 1 may be entered in the Product Description for the chosen label design. Column 2 is a list of the quality headings (excluding Quality Method) in a Product Description. For each entry in Column 1 decide if it should be included in the Product Description headings shown and select the heading from Column 2 under which it should be recorded.
Drop down the right answer
Answer:
Explanation:
NEW QUESTION 113
Which 2 alternative actions apply to the proposed user assurance for this project?
- A. Retain because they are both very positive about outsourcing the selected business functions.
- B. Retain because their divisions will be the major users of the outsourced services and they can provide the user perspective on the impact of any proposed changes.
- C. Retain because selecting only one of them may cause unnecessary conflict.
- D. Remove because neither of these individuals are from the business functions to be outsourced.
- E. Retain because they are able to help identify stakeholders and their communication requirements.
Answer: B,E
Explanation:
Explanation/Reference:
Question Set 3
NEW QUESTION 114
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