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Free PRINCE2-Practitioner Practice Questions & Answers 2026 Part3

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Question #1
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.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, because the project involves more than one organization
B. Yes, because the team manager should actively look for useful information
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
View answer
Correct Answer: B

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Question #2
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.The Health and Safety Training Project has been divided into four stages. The executive considers this project to be a compulsory project and has advised the project manager that it is not necessary to produce the project initiation documentation. This would mean that the project would consist of three delivery stages.How well does this apply the 'manage by stages' principle?
A. t applies it well, because the justification for delivering the project is already understood
B. t applies it poorly, because the stages should be shorter to provide more control to the project board
C. t applies it poorly, because solid foundations should be established for every project
D. t applies it well, because the project management method should be tailored to the project
View answer
Correct Answer: C
Question #3
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 of 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 4, a work package was authorized for the ‘delivered pilot courses’ to be completed by the end of week 2. The ‘finalized materials’ work package will start in week 3. Both work packages have zero tolerances, and finalizing the materials is dependent on feedback from the pilot courses.During week 1, there were some problems with the pilot courses, so at the start of week 2 the team manager rescheduled the courses to week 3, and reported this in the weekly checkpoint report as the end of week 2.Should the team manager have reported this delay previously as an issue, and why?
A. es, because the work package to deliver the pilot courses was forecast to exceed its time tolerance
B. es, because a team manager should not change the scheduled order of a work package
C. o, because the checkpoint report for week 1 should include information on any issues that occurred
D. o, because the feedback from the rescheduled courses can be used in week 4 to finalize the materials
View answer
Correct Answer: A
Question #4
Scenario -Additional Information -Chief Executive Officer (CEO): He started the company 25 years ago and knows his job very well. He injured his leg two years ago which has restricted his visits to the engineering area. As CEO he has an overall perspective of the business strategic requirements and the authority to commit resources as required.Marketing Director: She has been with the company for three years, following a successful career with a publicity company. She has the ability to represent the needs of the business, particularly as this is a marketing project. She has the authority to commit the annual business marketing budget, from which the project will be funded, as she sees appropriate. She will be responsible for monitoring the expected benefits of the calendar, in particular the improvement of the company's image.Engineering Manager: He has been responsible for many engineering innovations in the company and is still as keen and energetic as the day he started.VVhilst he will not be part of the project team, his staff will feature in the photos for the promotional calendar.Central Records: This group of five staff looks after all company records and document control.They now maintain all project files.Bright Lights: This is the local office supplies company. It supplies all the stationery and office equipment needs of the company and will supply the stationery for this project.Portraits ltd: This is a professional photographic company with a number of excellent photographers and a history of successful work. This company has been selected to take the photos for the company calendar. It has yet be decided which of the photographers to use.Which 2 statements explain why the Purchasing Manager should be appointed as a Senior Supplier for this project?
A. e is responsible for the organization's procurement activates
B. e is responsible for the performance of supplier contracts
C. e was an engineer and worked in that area before taking up his current position
D. e can influence the external supplier's Business Case
E. e is not appropriate for the role of Executive or Senior User
View answer
Correct Answer: AB
Question #5
ScenarioAdditional InformationDuring 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 termA promotional calendar as a free Christmas gift - would target current and prospective customers and the benefits would last into a second yearA series of television and press advertisements was too expensiveA direct mail shot to all customers - benefit would be short termCreation of an internet website - would not suit all customersThe 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.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
View answer
Correct Answer: BE
Question #6
ScenarioAdditional InformationDuring 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 termA promotional calendar as a free Christmas gift - would target current and prospective customers and the benefits would last into a second yearA series of television and press advertisements was too expensiveA direct mail shot to all customers - benefit would be short termCreation of an internet website - would not suit all customersThe 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.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
View answer
Correct Answer: BE
Question #7
ScenarioAdditional InformationDuring 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 termA promotional calendar as a free Christmas gift - would target current and prospective customers and the benefits would last into a second yearA series of television and press advertisements was too expensiveA direct mail shot to all customers - benefit would be short termCreation of an internet website - would not suit all customersThe 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.Which 2 statements should be recorded under the Business options heading?
A. Produce a promotional calendar as a free Christmas gift to current and prospective customers
B. Use a professional photographer to create the photographs for the calendar
C. Create the photographs for the calendar internally
D. Outsource the creation of the calendar to a professional marketing company
E. Do nothing
View answer
Correct Answer: AE
Question #8
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.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, because the project manager can adapt or combine PRINCE2 process to suit the project
B. Yes, because the standard course development structure should be tailored to suit the project
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
View answer
Correct Answer: B
Question #9
Reference Scenario: click hereAdditional Information: click hereThe work package to create the 'artwork' will commence in stage 3. The graphic design company uses their own development method to deliver products.They have appointed their Graphic Designer as the team manager to complete this work package. The project manager will review the appointment at the end of the stage.Which principle is being applied by the review, and why?
A. 'Manage by stages', because the project manager reviews the contents of the project initiation documentation when planning stage 4
B. 'Manage by stages', because the project manager reviews the status of stage 3 products at the end of the stage
C. 'Manage by exception', because the project board delegates the authority to the project manager on a stage-by-stage basis
D. 'Manage by exception', because the team manager's performance should be reviewed before authorizing the next work package
View answer
Correct Answer: A
Question #10
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.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. It applies the principle well, because tolerances should be set for the related aspects of project performance for each stage
B. It applies the principle well, because the project manager needs to control the project using discrete management stages
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
View answer
Correct Answer: C
Question #11
Reference Scenario: click hereAdditional Information: click hereThe recording studio has carried out improvements and can now deliver recordings to a higher quality than specified in the product description for the 'recorded album'.The Recording Studio Manager has recorded the songs to the new improved standard, at no additional cost. This change has no other impact on the project.How should the project manager categorize this issue, and why?
A. As an off-specification, because the recording of the songs will not fulfil the criteria specified
B. As a request for change, because the product description will need to be updated
C. As a request for change, because the recording will be of better quality
D. As an off-specification, because a proposal to change a baseline has been received
View answer
Correct Answer: A
Question #12
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 of 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.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. es, because people with delegated project assurance roles may act as the change authority
B. es, because projects that are likely to have many changes should delegate the change authority
C. o, because the decision to have a change authority should be made before the project is authorized
D. o, because the project manager identifies the level of tailoring that is relevant for the project
View answer
Correct Answer: A
Question #13
Reference Scenario: click hereAdditional Information: click hereThe executive has appointed the company's finance manager to provide business assurance, to monitor whether the album sales will exceed the production costs as the project progresses through each stage.How well does this apply the 'manage by exception' principle, and why?
A. It applies it well, because the executive needs to be confident that controls and tolerances are being implemented effectively
B. It applies it well, because a PRINCE2 project should structure the project into management stages to enable approval on a stage-by-stage basis
C. It applies it poorly, because roles should be combined in a small project as long as there is no conflict of interest
D. It applies it poorly, because a PRINCE2 project should focus on delivering quality outputs rather than on the work required to deliver the products
View answer
Correct Answer: A
Question #14
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.An external consultant has signed a contract and agreed a work package to accredit the trainers. The Purchasing Manager will monitor the contract, which states the requirement to organize the accreditation with the Training Delivery Manager. The Training Delivery Manager has tried to contact the consultant but there has been no response. The project manager believes there is a risk that the consultant is prioritizing other clients' work.The Purchasing Manager has been assigned as the risk owner. Is this an appropriate approach to managing this risk, and why?
A. es, because the Purchasing Manager is monitoring the contract and therefore best suited to controlling the risk
B. o, because the risk was transferred to the Training Delivery Manager when the work package was authorized
C. o, because the team manager should be the risk owner to risks concerning the delivery of a work package
D. es, because the Purchasing Manager should have identified the risk when the work package was agreed
View answer
Correct Answer: A
Question #15
Reference Scenario: click hereAdditional Information: click hereHere are three actions that take place during the 'initiating a project' process. Which theme (A-F) is being applied? Choose only one theme for each action. Each theme can be used once, more than once, or not at all.The project manager documents the statement: “Funding was secured from a youth development fund, which must be used to produce the initial sample recordings.”
A. Business case
B. Organization
C. Risk
D. Progress
E. Plans
F. Quality
View answer
Correct Answer: A
Question #16
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.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, because the project involves more than one organization
B. Yes, because the team manager should actively look for useful information
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
View answer
Correct Answer: B
Question #17
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.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, because decisions about closure should be escalated to programme management, unless otherwise instructed
B. Yes, because the project board should escalate significant decisions to programme management
C. No, because this contradicts the `manage by exception' principle
D. No, because the project board should decide whether to continue with the project
View answer
Correct Answer: A
Question #18
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 of 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.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. es, because the executive should be available to provide ad hoc direction to the project manager
B. es, because the executive should be the key decision-maker on the project, supported by other project board members
C. o, because the senior user should be responsible for specifying the quality criteria for the training materials
D. o, because the project manager should be given authority to manage the project on a day-to-day basis
View answer
Correct Answer: D
Question #19
ScenarioAdditional InformationDuring 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 termA promotional calendar as a free Christmas gift - would target current and prospective customers and the benefits would last into a second yearA series of television and press advertisements was too expensiveA direct mail shot to all customers - benefit would be short termCreation of an internet website - would not suit all customersThe 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.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
View answer
Correct Answer: BE
Question #20
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.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, because the project involves more than one organization
B. Yes, because the team manager should actively look for useful information
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
View answer
Correct Answer: B
Question #21
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 ITmanager 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.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. Senior supplier
B. Project manager
C. Supplier assurance
D. Corporate, programme management or customer
View answer
Correct Answer: D
Question #22
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.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, because the project manager can adapt or combine PRINCE2 process to suit the project
B. Yes, because the standard course development structure should be tailored to suit the project
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
View answer
Correct Answer: B
Question #23
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 theProduct 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 changes in corporate strategy may impact a project's justification
B. Yes, because a change in a project's justification should trigger premature closure
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
View answer
Correct Answer: C
Question #24
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.A new Training Delivery Manager is being recruited to replace the current manager in six month's time. The new Training Delivery Manager will need to review the 'classroom-based training materials' before they are finalized. As a result, the Chief Executive Officer (CEO), who is not part of the project management team, has stated that the project's duration should be at least seven months. Any deviations from this timescale must be escalated to the CEO.Is this an appropriate application of the 'manage by exception' principle, and why?
A. es, because a project time constraint should be set to meet ABC Company's business objectives
B. es, because the CEO should be responsible for resolving exceptions throughout the project
C. o, because completing the project earlier than expected should not be reported as an exception
D. o, because the executive should set time tolerances for the Health and Safety Training Project
View answer
Correct Answer: C
Question #25
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 theProduct 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, 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, because the goal is to seek opportunities to implement improvements after the life of the project
B. Yes, because the project needs to fulfill stakeholder expectations by delivering the products required
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
View answer
Correct Answer: B
Question #26
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.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. It applies the principle well, because tolerances should be set for the related aspects of project performance for each stage
B. It applies the principle well, because the project manager needs to control the project using discrete management stages
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
View answer
Correct Answer: C
Question #27
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.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. It applies the principle well, because tolerances should be set for the related aspects of project performance for each stage
B. It applies the principle well, because the project manager needs to control the project using discrete management stages
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
View answer
Correct Answer: C
Question #28
ScenarioAdditional InformationProduct DescriptionQuality notes from the Daily LogThe 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) Introduction1. 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 standards4. The selected service provider will operate to industry standards for providing outsourced services.5. MFH document standards will be used.Records6. 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 responsibilities9. 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.Which statement applies to the Roles and responsibilities section?
A. elete entry 10 because this is the responsibility of the quality review chair
B. mend entry 12 because this is the responsibility of supplier assurance
C. elete entry 11 because only the Project Manager can update the Quality Register
D. elete entry 9 because this should only be recorded in the Product Description
View answer
Correct Answer: B
Question #29
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 stagesEnd 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. MANAGING A STAGE BOUNDARY The ABC Company trainers have been accredited and the course booking procedures have been amended. The ‘managing a stage boundary’ process is taking place at the end of stage 3. Which activity should occur during the ‘update the business case’ activity?
A. Update the overall plan with the time and cost taken to develop the ‘e - learning course’ and ‘amended course booking procedures’
B. Break the ‘planned pilot courses’ down into component products in order to identify the work required to deliver them
C. Review whether the possible sales of the training course to external companies are likely to cover the project costs
D. Review whether a new team manager should be appointed to lead the delivery of the pilot courses during stage 4
View answer
Correct Answer: A
Question #30
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.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, because decisions about closure should be escalated to programme management, unless otherwise instructed
B. Yes, because the project board should escalate significant decisions to programme management
C. No, because this contradicts the `manage by exception' principle
D. No, because the project board should decide whether to continue with the project
View answer
Correct Answer: A
Question #31
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.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, because the project board are able to use the business case provided by the programme
B. Yes, because when the project is part of a programme, the programme team provides the business case
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
View answer
Correct Answer: A
Question #32
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 of 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.Based on lessons from previous projects that used the ABC Company standard development model, the project board has set low cost and time tolerances for stage 2. As a result, the project manager plans to set very low tolerances for time and cost for all work packages to be carried out during stage 2.Is this an appropriate application of the ‘manage by exception’ principle, and why?
A. es, because the project manager should set tolerance equally for all work packages in a stage
B. es, because setting appropriate tolerances for work packages will help keep the stage within tolerances
C. o, because tolerances set by the project manager should be the same as those set by the project board
D. o, because the project manager should divide the stage tolerances between the team managers
View answer
Correct Answer: B
Question #33
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 theProduct 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 changes in corporate strategy may impact a project's justification
B. Yes, because a change in a project's justification should trigger premature closure
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
View answer
Correct Answer: C
Question #34
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 theProduct 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.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, because the quality management approach should take into account the supplier's standards, tools and techniques
B. Yes, because the product description for each product will define the required quality approach within each stage
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
View answer
Correct Answer: A
Question #35
Which of the following roles cannot be combined?
A. xecutive and Senior User
B. roject Manager and Project Support
C. roject Assurance and Team Manager
D. enior Suppler and Supplier Assurance
View answer
Correct Answer: C
Question #36
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.MANAGING PRODUCT DELIVERYThe team manager for the production of the `marketing materials' has identified that they will not be ready within the timescale agreed in the work package. The team manager has sufficient tolerance to take corrective action. As a result, additional resources have been assigned to this work package.Which theme is being applied?
A. Risk
B. Organization
C. Progress
D. Change
View answer
Correct Answer: A
Question #37
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.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, because decisions about closure should be escalated to programme management, unless otherwise instructed
B. Yes, because the project board should escalate significant decisions to programme management
C. No, because this contradicts the `manage by exception' principle
D. No, because the project board should decide whether to continue with the project
View answer
Correct Answer: A
Question #38
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 theProduct 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, 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, because the goal is to seek opportunities to implement improvements after the life of the project
B. Yes, because the project needs to fulfill stakeholder expectations by delivering the products required
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
View answer
Correct Answer: B
Question #39
Which of the following activities is the Executive responsible for?
A. nsure the desired outcome of the project is specified
B. esponsible for the benefits review plan
C. ssess and update the Business Case at the end of each stage
D. esponsible for the Benefits Review Plan post project
View answer
Correct Answer: B
Question #40
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.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, because decisions about closure should be escalated to programme management, unless otherwise instructed
B. Yes, because the project board should escalate significant decisions to programme management
C. No, because this contradicts the `manage by exception' principle
D. No, because the project board should decide whether to continue with the project
View answer
Correct Answer: A
Question #41
Which of the following statements is NOT correct?The Learn from Experience principle suggests that lessons should be actively sought...
A. When Starting a Project
B. When Initiating a Project
C. As the project progresses
D. As the project closes
View answer
Correct Answer: B
Question #42
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 theProduct 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 changes in corporate strategy may impact a project's justification
B. Yes, because a change in a project's justification should trigger premature closure
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
View answer
Correct Answer: C
Question #43
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.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. It applies the principle well, because tolerances should be set for the related aspects of project performance for each stage
B. It applies the principle well, because the project manager needs to control the project using discrete management stages
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
View answer
Correct Answer: C
Question #44
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.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, because the project manager can adapt or combine PRINCE2 process to suit the project
B. Yes, because the standard course development structure should be tailored to suit the project
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
View answer
Correct Answer: B
Question #45
When considering the business options in the business case, which of these is NOT an option?
A. o nothing
B. o the maximum
C. o the minimum
D. o something
View answer
Correct Answer: B
Question #46
Scenario 2: Louistown City CouncilLouistown is a historical town which is home to over 40,000 residents and attracts over 20,000 visitors per year. The city council has been criticized for the lack of investment and modernization of the town centre.They have recently decided to improve the vibrancy of the area and offer increased opportunities for business by approving the funds for the ‘Louistown is Open for Business’ (LOB) portfolio. This is an ambitious portfolio of projects covering the next five-year plan cycle.A new shopping centre, provisionally named ‘LouisShopping’, is seen as a key project within this portfolio. This is a complex infrastructure project due to the: location of the building and historical nature of the surrounding buildings requirement for the design to be consistent with the environment while offering modern facilities supported by the latest technology need to include underground parking space importance of minimizing disruption to residents and businesses during the construction works recent award of ‘green town’ status to Louistown, and the sustainability requirements this will impose on the development.Due to the nature of the work, in which just the construction element is likely to span over two financial years, the council has approved the strategic business case, the initial high-level project plan and has appointed BuildyBrick as the main contractor. They have established a requirement for a traditional delivery approach in line with their standard approach to projects. The general view is that this project is long overdue, and the council would like ‘LouisShopping’ to be open to the public by the end of financial year three.The project has just completed the initiation stage and commenced the first delivery stage (stage 2). The high-level project plan is as follows:Stage 1 (initiation)strategic business case and high-level project plan approvalappoint contractorStage 2 -designStage 3 -site preparationutilities and systemsconstructionStage 4 -testinginspectionsStage 5 -demobilization.The main output from the project is a shopping centre constructed and ready to open to the public.Additional Information -The Mayor of Louistown has worked at the city council for 20 years. She was elected mayor one year ago as she is a firm believer in the need for modernization, while preserving the city’s historic buildings. She is very busy with commitments to the city’s 40,000 residents.The Heritage Director has worked at several historical sites and he has been brought in to the City Council to ensure a focus on preserving the city’s history and tourist revenue from the 20,000 annual visitors to its historic sites.The Heritage Manager reports to the Heritage Director and is responsible for monitoring whether the City is retaining its important historic buildings and any impacts modernization is having on this.The Business Opportunities Director has recently been promoted to provide a focus on improving business opportunities in Louistown. She has worked on several modernization projects at a senior level and understands the need to improve the vibrancy of the area, while meeting sustainability targets. She is keen to be involved in the LouisShopping Project in support of her role in promoting business opportunities.The members of the City Council, which has made the major planning decision to improve the vibrancy of the area and to offer increased opportunities for businesses by approving funds for the ‘Louistown is Open for Business’ (LOB) portfolio.The City Planning Officer will need to approve the design of the new LouisShopping, shopping centre. She is uncertain whether it will be possible for this major construction project to achieve its diverse goals relating to sustainability, developing business opportunities.The Regeneration Manager has led several regeneration projects in Louistown and has proved their ability to manage major construction projects. They are PRINCE2 qualified.The Regeneration Officer provides administrative services to the Regeneration Manager including maintaining a list of the department’s key stakeholders and maintaining the risk register for the department.The Sustainability Officer assisted the Sustainability Manager in collecting data to support the development of the City’s sustainability targets. She collects performance data to identify whether the City is on track to meet its sustainability targets.The Sustainability Manager has been on several courses on city modernization and has helped develop the City’s sustainability targets. They have managed several sustainability projects and are keen for the LouisShopping Project to be managed in a way that does not risk the City losing its ‘green town’ award.The Chief Technology Officer is responsible for the City’s IT strategy. Her department will be providing the specialists to ensure that the latest technology is used in the LouisShopping centre to promote shoppers as well as visitors to the centre’s restaurants and bars in the evenings.The CEO of BuildyBrick, the major contractor who will be doing much of the demolition and construction work for the LouisShopping Project.The Inspector employed by the City Council to provide an independent view that the BuildyBrick is complying with environmental and sustainability targets as well as City building regulations.The Portfolio Director for the Louistown is Open for Business (LOB) portfolio sees the LouisShopping Project as a key project in the portfolio. They believe that the success of the entire portfolio is dependent on the on-time delivery of this project, while achieving its sustainability targets.The Head of the Portfolio Office reports to the Portfolio Director and is responsible for reviewing the business cases and project plans of all projects in the Louistown is Open for Business (LOB) portfolio.The project is at the end of stage 1 and the project team has started to consult local stakeholders about the project. An important local historian is worried that the work to excavate the underground parking space will cause subsidence and damage to surrounding buildings of historical significance. The project manager has captured this in the project log as an issue.Is this an appropriate application of the ‘issues’ practice, and why?
A. es, because this is a concern that should be considered by the project team
B. es, because the project team should listen to the local historian who is an important stakeholder
C. o, because, although important, the local historian is not a member of the project team
D. o, because damage to the surrounding buildings should be paid for by BuildyBrick
View answer
Correct Answer: A
Question #47
ScenarioAdditional InformationDuring 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 termA promotional calendar as a free Christmas gift - would target current and prospective customers and the benefits would last into a second yearA series of television and press advertisements was too expensiveA direct mail shot to all customers - benefit would be short termCreation of an internet website - would not suit all customersThe 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.Which 2 statements should be recorded under the Business options heading?
A. Produce a promotional calendar as a free Christmas gift to current and prospective customers
B. Use a professional photographer to create the photographs for the calendar
C. Create the photographs for the calendar internally
D. Outsource the creation of the calendar to a professional marketing company
E. Do nothing
View answer
Correct Answer: AE

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