Free PRINCE2-Practitioner Practice Questions & Answers 2026 Part5

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 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?

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?

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?

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 in the ‘initiating a project’ process. The BuildyBrick team manager has now produced more detailed estimates for each of the remaining four stages and advised the project manager of the additional time and cost needed to deliver the project. The project manager needs to use this information to advise the project board of the additional cost and whether the project is still justified before requesting project authorization.Which role should be informed about the updated business justification?

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

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 team is procuring a separate supplier to install the IT systems. The procurement team has requested quotations from a number of suppliers. There have been more queries in response to this request than expected. The procurement team manager has forecast that the work package will exceed its time tolerance. The team manager raised an issue to the project manager. In response, the project manager has some scope tolerance for the stage and has requested the team manager to replan to see whether the team can deliver within time tolerance by reducing the number of quotations reviewed.Is this an appropriate application of the ‘progress’ practice, and why?

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?

The Manage by Exception principle sets tolerances for six areas of the project. Time, Cost and Quality are three of them, what are the other three?

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 A STAGE BOUNDARYThe 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?

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?

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 in stage 2. The Sustainability Manager has recommended that a new brick made from recycled waste materials be used in the construction of the shopping centre. However, the project manager has asked the brick manufacturer to present their new brick to the project team. The project manager has asked the CEO of BuildyBrick to send their construction materials expert to attend this presentation to get their opinion on, and commitment to, using these bricks in the shopping centre build.Is this an appropriate application of ‘leading successful change’ in the ‘people’ element and why?

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?

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?

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 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?

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 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?

Project Scenario – Health and Safety Training Project:ABC Company is a well-established training company that uses a standard model to developtraining materials and deliver courses to customers.ABC Company has commissioned a project in response to recent changes in governmentlegislation relating to health and safety on construction sites. The project will deliver“capability to provide health and safety training”, including the materials needed forclassroom-based training and e-learning. The expected benefits for construction companiesinclude a reduction in lost days and legal costs due to accidents.The e-learning course will be developed by a specialist external consultancy. The materialsfor classroom-based training will be delivered by ABC Company’s development team. Allcourse materials will be piloted before they are used. ABC Company will deliver training toits customers and also hopes to sell the course materials to other training companies as part oftheir operational business. ABC Company will use their own sales and marketingdepartments to promote the courses.The legislation requires construction companies to comply with the new legislation withintwo years. The course materials and trainers have to be accredited by a government agencybefore courses can be delivered. ABC Company is planning to deliver pilot courses withinfive months of starting the project.The ABC Company standard development model for new courses recommends the followingstages:End of the Project scenario.Additional Information:The Chief Executive Officer (CEO) founded the company five years ago. Under herleadership, ABC Company has grown quickly into a successful training company. It deliversa range of accredited professional training.The Finance Director is also a founder member of ABC Company and is responsible forauthorizing budgets for the Operations and Development Teams. She authorizes all largecontracts personally.The Purchasing Manager reports to the Finance Director and is responsible for managing andmonitoring supplier contracts.The Operations Director is responsible for the delivery off all training and for the trainingdevelopment budget. His department organizes courses, venues and trainers. They work withthe Product and the Sales teams to provide a comprehensive training schedule. ABCCompany’s IT manager reports to the Operations Director.The Business Development Director has recently been appointed to identify new trainingneeds and propose new products. She will work with the Operations. Director to ensure acost-conscious approach and that appropriate development technologies are used for thehealth and safety course.The Training Development Manager reports to the Business Development Director and isresponsible for developing training materials and gaining accreditation, in accordance withthe standard course development model. Course developers in his team have skills in a rangeof development technologies and are allocated to projects as needed.The Training Delivery Manager, who reports to the Operations Director, is responsible forensuring that internal and external trainers deliver ABC Company training courses to therequired standard. He also checks course materials to ensure they are fit for purpose and ofthe required quality.The Central Services Director has responsibility for corporate communications, facilitiesmanagement and configuration management. He recently led a project to consolidate allcompany quality systems into one quality management system and set up a corporate qualitydepartment, now managed by the Corporate Quality Manager.The Corporate Document Manager reports to the Central Services Director. She helpedestablish the company’s document management system and now operates it across thebusiness. 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 bysuggesting new markets for the courses and material. All account managers and themarketing team report to him. They promote existing training courses to other trainingcompanies and existing customers.End of the additional information.A quality review of the ‘marketing materials’ has started. The team manager for the‘marketing materials’ has been unhappy with the team’s workload throughout the project andrefuses to attend the review meeting to present the material. The team manager suggests thata new marketing team member make the presentation. However, the chair decides torepresent the marketing team and makes a list of actions to resolve later.Is this an appropriate approach to the quality review, and why?

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?

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?

Project Scenario – Health and Safety Training Project:ABC Company is a well-established training company that uses a standard model to developtraining materials and deliver courses to customers.ABC Company has commissioned a project in response to recent changes in governmentlegislation relating to health and safety on construction sites. The project will deliver“capability to provide health and safety training”, including the materials needed forclassroom-based training and e-learning. The expected benefits for construction companiesinclude a reduction in lost days and legal costs due to accidents.The e-learning course will be developed by a specialist external consultancy. The materialsfor classroom-based training will be delivered by ABC Company’s development team. Allcourse materials will be piloted before they are used. ABC Company will deliver training toits customers and also hopes to sell the course materials to other training companies as part oftheir operational business. ABC Company will use their own sales and marketingdepartments to promote the courses.The legislation requires construction companies to comply with the new legislation withintwo years. The course materials and trainers have to be accredited by a government agencybefore courses can be delivered. ABC Company is planning to deliver pilot courses withinfive months of starting the project.The ABC Company standard development model for new courses recommends the followingstages:End of the Project scenario.Additional Information:The Chief Executive Officer (CEO) founded the company five years ago. Under herleadership, ABC Company has grown quickly into a successful training company. It deliversa range of accredited professional training.The Finance Director is also a founder member of ABC Company and is responsible forauthorizing budgets for the Operations and Development Teams. She authorizes all largecontracts personally.The Purchasing Manager reports to the Finance Director and is responsible for managing andmonitoring supplier contracts.The Operations Director is responsible for the delivery off all training and for the trainingdevelopment budget. His department organizes courses, venues and trainers. They work withthe Product and the Sales teams to provide a comprehensive training schedule. ABCCompany’s IT manager reports to the Operations Director.The Business Development Director has recently been appointed to identify new trainingneeds and propose new products. She will work with the Operations. Director to ensure acost-conscious approach and that appropriate development technologies are used for thehealth and safety course.The Training Development Manager reports to the Business Development Director and isresponsible for developing training materials and gaining accreditation, in accordance withthe standard course development model. Course developers in his team have skills in a rangeof development technologies and are allocated to projects as needed.The Training Delivery Manager, who reports to the Operations Director, is responsible forensuring that internal and external trainers deliver ABC Company training courses to therequired standard. He also checks course materials to ensure they are fit for purpose and ofthe required quality.The Central Services Director has responsibility for corporate communications, facilitiesmanagement and configuration management. He recently led a project to consolidate allcompany quality systems into one quality management system and set up a corporate qualitydepartment, now managed by the Corporate Quality Manager.The Corporate Document Manager reports to the Central Services Director. She helpedestablish the company’s document management system and now operates it across thebusiness. 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 bysuggesting new markets for the courses and material. All account managers and themarketing team report to him. They promote existing training courses to other trainingcompanies and existing customers.End of the additional information.The delivery of the pilot courses has been split into two separate products: ‘planned pilotcourses’ and ‘delivered pilot courses’. ‘Planned pilot courses’ will be produced during stage3, and the ‘delivered pilot courses’ will take place during stage 4. This will allow the projectboard to approve the plan for the pilot courses before the resources are committed todelivering the pilot courses.Why is this an appropriate application of the plans theme to control the project?

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?

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?

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 nearing the end of stage 2. The Sustainability Manager has had a conversation with the team creating the shopping centre design. The team suggested an easier way of consulting with stakeholders that could be used on other projects within the Louistown is Open for Business (LOB) portfolio. The Sustainability Manager has recorded this information in the daily log as a lesson learned.Is this an appropriate use of the ‘learn from experience’ principle, and why?

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?

Project Scenario - Health and Safety Training Project:ABC Company is a well-established training company that uses a standard model to develop training materials and deliver courses to customers.ABC Company has commissioned a project in response to recent changes in government legislation relating to health and safety on construction sites. The project will deliver "capability to provide health and safety training", including the materials needed for classroom-based training and e-learning. The expected benefits for construction companies include a reduction in lost days and legal costs due to accidents.The e-learning course will be developed by a specialist external consultancy. The materials for classroom- based training will be delivered by ABC Company's development team. All course materials will be piloted before they are used. ABC Company will deliver training to its customers and also hopes to sell the course materials to other training companies as part of their operational business. ABC Company will use their own sales and marketing departments to promote the courses.The legislation requires construction companies to comply with the new legislation within two years. The course materials and trainers have to be accredited by a government agency before courses can be delivered.ABC Company is planning to deliver pilot courses within five months of starting the project.The ABC Company standard development model for new courses recommends the following stages:End of the Project scenario.Additional Information:The Chief Executive Officer (CEO) founded the company five years ago. Under her leadership, ABC Company has grown quickly into a successful training company. It delivers a range of accredited professional training.The Finance Director is also a founder member of ABC Company and is responsible for authorizing budgets for the Operations and Development Teams. She authorizes all large contracts personally.The Purchasing Manager reports to the Finance Director and is responsible for managing and monitoring supplier contracts.The Operations Director is responsible for the delivery off all training and for the training development budget. His department organizes courses, venues and trainers. They work with the Product and the Sales teams to provide a comprehensive training schedule. ABC Company's IT manager reports to the Operations Director.The Business Development Director has recently been appointed to identify new training needs and propose new products. She will work with the Operations. Director to ensure a cost-conscious approach and that appropriate development technologies are used for the health and safety course.The Training Development Manager reports to the Business Development Director and is responsible for developing training materials and gaining accreditation, in accordance with the standard course development model. Course developers in his team have skills in a range of development technologies and are allocated to projects as needed.The Training Delivery Manager, who reports to the Operations Director, is responsible for ensuring that internal and external trainers deliver ABC Company training courses to the required standard. He also checks course materials to ensure they are fit for purpose and of the required quality.The Central Services Director has responsibility for corporate communications, facilities management and configuration management. He recently led a project to consolidate all company quality systems into one quality management system and set up a corporate quality department, now managed by the Corporate Quality Manager.The Corporate Document Manager reports to the Central Services Director. She helped establish the company' s document management system and now operates it across the business. She manages a team of administrators and contracts staff when workload is high.The Sales Director joined ABC Company two months ago and is keen to establish himself by suggesting new markets for the courses and material. All account managers and the marketing team report to him. They promote existing training courses to other training companies and existing customers.End of the additional information.During stage 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?

Which of the following statements is TRUE with regard to expected benefits?

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 team is procuring a separate supplier to install the IT systems. They have requested quotations from a number of suppliers. There have been more queries in response to this request than expected. The procurement team manager has forecast that the work package will exceed its time tolerance. As a result, the team manager has raised an issue to escalate the matter to the project manager.Is this an appropriate application of the ‘progress’ practice, and why?

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 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?

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?

Reference Scenario: click hereAdditional Information: click hereThe Music Album Project is part of a programme to contract new singers. The 'artwork' is being produced by an external graphic designer. The graphic designer's profit has been documented in the record company's business case.Is this appropriate, and why?

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?

When updating the project plan as part of Managing a stage boundary, what else might be updated?

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 in the ‘initiating a project’ process. The project manager is not an expert on the Council’s sustainability targets and needs some help with defining how these targets will be achieved and measured. Therefore, the project manager has asked the Sustainability Officer to develop the sustainability management approach.Is this an appropriate application of the ‘agree the management approaches’ activity, and why?

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?

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.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?

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?

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?

Which of the following statements is TRUE with regard to expected benefits?

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?

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?

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?

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 executive identified that there would be a benefit to the construction companies as their working time lost due to accidents would be reduced. This was included as a benefit to ABC Company in the business case for the Health and Safety Training Project.Is this appropriate, and why?

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.Towards the end of stage 2, the stage 3 plan is being prepared. This includes the work required to promote the new courses to other training companies. In addition to the current ways of marketing the courses, the Sales Director wants to advertise in trade magazines. The likely costs involved and the opportunities it may bring have been identified.As part of the ‘update the project plan’ activity, what should the project manager be responsible for?

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 in the ‘starting up a project’ process. The Business Opportunities Director has consulted with the CEO of BuildyBrick and decided that the project should be delivered using a traditional delivery approach.Which practice is being applied when making this decision?