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Get instant access to PRINCE2-Practitioner Practice Tests 2024 Free Updated Today!

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Passing the PRINCE2 Practitioner exam is a valuable achievement for project managers. It demonstrates that they have a thorough understanding of the PRINCE2 methodology and are able to apply it effectively to manage projects. PRINCE2 Practitioner Exam certification is recognised internationally and is highly regarded by employers in industries such as IT, government, construction and engineering. It is also a valuable addition to a project manager’s CV, as it demonstrates their commitment to their profession and their willingness to invest in their own professional development.


PRINCE2 Practitioner certification exam is a comprehensive test that assesses an individual's ability to apply the PRINCE2 methodology to real-world project scenarios. PRINCE2-Practitioner exam covers various topics, such as project initiation, planning, execution, control, and closure, and it requires candidates to demonstrate their knowledge of these areas through practical applications. PRINCE2 Practitioner Exam certification exam is recognized globally and is a valuable asset for professionals who want to advance their careers in project management.

 

NEW QUESTION # 124
Which 2 statements explain why the CEO should be appointed as the Executive for this project?

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

Answer: A,B


NEW QUESTION # 125
Scenario
Additional Information
Product Description

Quality notes from the Daily Log
The Director of Information Technology Division (DIT) has been asked to ensure that any changes to the outsourced staff employment contracts adhere to employment law. The DIT will review future job descriptions of the transferred staff before the final contract is signed with the selected service provider.
The service level agreement between MFH and the selected service provider will specify the type and quality of service required. The selected service provider must follow the industry standards for providing outsourced services.
MFH has a quality management system which contains a document control procedure for all its documentation, however this does not include change management.
All project documents will be subject to a quality review. Nominated products will require a formal approval record signed-off by the quality review chair.
Extract from the draft Quality Management Strategy (may contain errors) Introduction
1. This document defines the approach to be taken to achieve the required quality levels during the project.
2. The Project Board will have overall responsibility for the Quality Management Strategy.
3. Project Assurance will provide assurance on the implementation of the Quality Management Strategy.
Quality management procedure - Quality standards
4. The selected service provider will operate to industry standards for providing outsourced services.
5. MFH document standards will be used.
Records
6. A Quality Register will be maintained to record the planned quality events and the actual results from the quality activities.
7. Configuration Item Records will be maintained for each product to describe its status, version and variant.
8. Approval records for products that require them will be stored in the quality database.
Roles and responsibilities
9. The DIT will check that the employment contracts for outsourced staff adhere to employment law.
10. Team Managers will provide details of quality checks that have been carried out.
11. Team Managers will ensure that the Quality Register is updated with the names of team members who are involved in the review process.
12. The Senior User will review the Product Descriptions of the products to be produced by the selected service provider to ensure that they can be achieved.
Which is a correctly defined acceptance criterion for the service level agreement (SLA) with the selected service provider?

  • A. The selected service provider should be located locally.
  • B. External consultants are to assist in the creation of the SLA.
  • C. Any changes to the SLA must be managed through formal change control.
  • D. The SLA must extend for the full duration of the service contract.

Answer: D


NEW QUESTION # 126
During stage 3, the project scope was extended to include a practice test for learners to take during the training course. The cost of this test will be included in the cost of the course.
The change to project scope was approved and the cost of E2,500 was paid for from the change budget. The project manager documented an increase of E2,500 in the project budget in the business case.
Is this an appropriate action, and why?

  • A. Yes, because the justification for the project should be recalculated based on the revised project budget.
  • B. No, because the use of the change budget means that the project budget does not need to be increased.
  • C. Yes, because the project manager determines which costs need to be updated at the end of each stage
  • D. No, because changes to operational costs post-project should have been included in the business case.

Answer: C

Explanation:
Explanation/Reference:
Organization Theme
Testlet 1
Scenario
Additional Information
Chief Executive Officer (CEO): He started the company 25 years ago and knows his job very well. He injured his leg two years ago which has restricted his visits to the engineering area. As CEO he has an overall perspective of the business strategic requirements and the authority to commit resources as required.
Marketing Director: She has been with the company for three years, following a successful career with a publicity company. She has the ability to represent the needs of the business, particularly as this is a marketing project. She has the authority to commit the annual business marketing budget, from which the project will be funded, as she sees appropriate. She will be responsible for monitoring the expected benefits of the calendar, in particular the improvement of the company's image.
Engineering Manager: He has been responsible for many engineering innovations in the company and is still as keen and energetic as the day he started. VVhilst he will not be part of the project team, his staff will feature in the photos for the promotional calendar.
Central Records: This group of five staff looks after all company records and document control. They now maintain all project files.
Bright Lights: This is the local office supplies company. It supplies all the stationery and office equipment needs of the company and will supply the stationery for this project.
Portraits ltd: This is a professional photographic company with a number of excellent photographers and a history of successful work. This company has been selected to take the photos for the company calendar. It has yet be decided which of the photographers to use.


NEW QUESTION # 127
Which activity is responsible for updating the stage plan with actual during Controlling a Stage?

  • A. Report Highlights
  • B. Take corrective action
  • C. Review work package status
  • D. Review the stage status

Answer: A


NEW QUESTION # 128
Scenario
Additional Information
During the initiation stage the Project Manager met with the Marketing Director to find out more about the requirements of the promotional calendar and recorded the following notes:
There has been a reduction in the order numbers at the MNO Manufacturing due in part to the increased marketing activities of its competitors. 10% of customers have not re-ordered in this financial year and staff morale is poor. A number of skilled staff have left as a result and replacement staff have not been recruited due to the reduced operation. If the project is successful, a recruitment campaign will be required to fill the existing staff vacancies and there may be a requirement for additional staff. Operational costs are likely to increase because skilled staff are expensive and difficult to find.
In financial terms, there were a total of 1,500 orders in the last financial year, each with an average profit of
£2k. The Marketing department believes that sending a promotional calendar to our current and prospective customers would increase orders by at least 10% with a minimum of 10 further orders from the list of prospective customers within 12 months from the date of distribution.
The Marketing Director will be funding the project from the business marketing budget. She believes that the effect of a good company image portrayed by a successful calendar would last into a second year. She has forecast the same increase in orders for a second year and predicts that the annual employee satisfaction survey will show a measurable improvement in staff morale.
A number of alternatives were explored, including:
* 20% discount for all repeat customers - not cost-effective and very short term
* A promotional calendar as a free Christmas gift - would target current and prospective customers and the benefits would last into a second year
* A series of television and press advertisements was too expensive
* A direct mail shot to all customers - benefit would be short term
* Creation of an internet website - would not suit all customers
The calendar is seen as the favored option, as long as the company's competitors do not increase their marketing activity. Whilst the Marketing department wants a very high quality, glossy product, the project management team must be aware of the cost this will incur.
Using the Project Scenario and the additional Information provided for this question In the Scenario Booklet, answer the following question.
Which 2 statements should be recorded under the Expected benefits heading?

  • A. Increase orders by at least 10% with a minimum of 10 further orders from the list of prospective customers within 12 months.
  • B. The Marketing department want a very high quality, glossy product as they believe this will be more appealing to customers.
  • C. It will be similar to calendars sent out in previous years
  • D. The calendar will contain photos of both staff and company products.
  • E. The Marketing department believes that the benefits of a good company image, as portrayed by a successful calendar, will last into a second year and bring the same increase in orders.

Answer: A,E


NEW QUESTION # 129
Which management product defines the detailed nature, purpose and function of a product?

  • A. Plan
  • B. Product Description
  • C. Quality Register
  • D. Project Product Description

Answer: B


NEW QUESTION # 130
The project is in stage 3. Zero time tolerance has been given for this stage. When checking progress, the project manager noticed that the checkpoint report from the external supplier of the 'e-learning course' is late.
As work package progress information is missing, the project manager has decided to raise an exception report.
Is this an appropriate action, and why?

  • A. Yes, because there is zero time tolerance for this stage the checkpoint report must be delivered on time.
  • B. Yes, because an exception report should be used to request guidance on how this situation should be handled.
  • C. No, because the project manager should check the operations and maintenance interfaces in the work package first.
  • D. No, because the team plan should be discussed with the supplier to check whether work will be completed on time.

Answer: B


NEW QUESTION # 131
Scenario
A photographer from Portraits Ltd, a professional photographic company, has taken on the role of Team Manager after taking some time to understand the requirements of the project. A contract for their services has been set up and is being monitored by the Purchasing Manager and a Work Package has been agreed. This contract specifies that the photographer must arrange a meeting with the Engineering Manager to establish a schedule for the photo sessions to minimize the impact on the Engineering staff. This meeting should have occurred by now.
The Engineering Manager was made aware of this requirement but when asked he reported that he has received no communication from the photographer. The Project Manager has tried to call the photographer and has had no response. The Project Manager believes there is a risk that Portraits Ltd are overbooking work and prioritizing other clients' work. If Portraits ltd do not deliver on schedule the project will be delayed and the expected benefits will be reduced.
The contract is to be reviewed and Portraits Ltd reminded of their agreement.
The project is now in stage 2. The Project Manager has heard about the possibility of a competitor also producing a calendar to be delivered earlier than the target date for this project. There is a threat that the early release of a competitor's calendar may weaken the impact of the MNO Manufacturing Company calendar, thereby reducing the anticipated benefits of the Calendar project.
Which 2 statements should be recorded under the Timing of risk management activities heading?

  • A. The Project Board should hold monthly meetings to review project progress.
  • B. During stage 4, the selected service provider will manage any risks to their Business Case and report these to the Project Manager on a weekly basis.
  • C. When closing a project, the follow-on action recommendations should be updated with any risks relating to the realization of benefits after the outsourced services go live.
  • D. When authorizing a stage, the Project Board will check that the exposure to risk is still acceptable.
  • E. Any new risks identified during product development should be reported to the Project Manager by the Team Manager when delivering the completed Work Package.

Answer: A,D


NEW QUESTION # 132
CHANGE
Here are three items of information relating to controlling change in the Health and Safety Training Project.
In which management product (A-E) should each item be recorded?
Choose only one product for each item. Each product can be used once, more than once, or not at all.

Answer:

Explanation:

Explanation


NEW QUESTION # 133
Who is responsible for ensuring that the value-for-money solution is constantly reassessed?

  • A. Senior User
  • B. Reject Support
  • C. Corporate or Programme Management
  • D. Business Assurance

Answer: D

Explanation:
Explanation/Reference:
Testlet 1
Scenario
Additional Information

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


NEW QUESTION # 134
Use the 'Additional Information' in the Scenario Booklet to answer this question.
The Operations Director is the executive for the project and has proposed that a senior course developer be appointed as project manager. The course developer works in the Training Development Manager's team and has a good understanding of the standard course development model. The course developer was a team manager on a previous project for which the Operations Director was the executive.
Is this proposed appointment appropriate, and why?

  • A. No, because the course developer's team reports to the Business Development Director, not the Operations Director.
  • B. Yes, because the course developer is likely to have the project management and specialist knowledge required.
  • C. No, because there is a conflict of interest as the Training Development Manager is responsible for gaining accreditation.
  • D. Yes, because the course developer is responsible for ensuring that trainers deliver courses to the required standard.

Answer: D


NEW QUESTION # 135
Project Scenario - Health and Safety Training Project:
ABC Company is a well-established training company that uses a standard model to develop training materials and deliver courses to customers.
ABC Company has commissioned a project in response to recent changes in government legislation relating to health and safety on construction sites. The project will deliver "capability to provide health and safety training", including the materials needed for classroom-based training and e-learning. The expected benefits for construction companies include a reduction in lost days and legal costs due to accidents.
The e-learning course will be developed by a specialist external consultancy. The materials for classroom-based training will be delivered by ABC Company's development team. All course materials will be piloted before they are used. ABC Company will deliver training to its customers and also hopes to sell the course materials to other training companies as part of their operational business. ABC Company will use their own sales and marketing departments to promote the courses.
The legislation requires construction companies to comply with the new legislation within two years. The course materials and trainers have to be accredited by a government agency before courses can be delivered.
ABC Company is planning to deliver pilot courses within five months of starting the project.
The ABC Company standard development model for new courses recommends the following stages:

End of the Project scenario.
Additional Information:
The Chief Executive Officer (CEO) founded the company five years ago. Under her leadership, ABC Company has grown quickly into a successful training company. It delivers a range of accredited professional training.
The Finance Director is also a founder member of ABC Company and is responsible for authorizing budgets for the Operations and Development Teams. She authorizes all large contracts personally.
The Purchasing Manager reports to the Finance Director and is responsible for managing and monitoring supplier contracts.
The Operations Director is responsible for the delivery off all training and for the training development budget. His department organizes courses, venues and trainers. They work with the Product and the Sales teams to provide a comprehensive training schedule. ABC Company's IT manager reports to the Operations Director.
The Business Development Director has recently been appointed to identify new training needs and propose new products. She will work with the Operations. Director to ensure a cost-conscious approach and that appropriate development technologies are used for the health and safety course.
The Training Development Manager reports to the Business Development Director and is responsible for developing training materials and gaining accreditation, in accordance with the standard course development model. Course developers in his team have skills in a range of development technologies and are allocated to projects as needed.
The Training Delivery Manager, who reports to the Operations Director, is responsible for ensuring that internal and external trainers deliver ABC Company training courses to the required standard. He also checks course materials to ensure they are fit for purpose and of the required quality.
The Central Services Director has responsibility for corporate communications, facilities management and configuration management. He recently led a project to consolidate all company quality systems into one quality management system and set up a corporate quality department, now managed by the Corporate Quality Manager.
The Corporate Document Manager reports to the Central Services Director. She helped establish the company's document management system and now operates it across the business. She manages a team of administrators and contracts staff when workload is high.
The Sales Director joined ABC Company two months ago and is keen to establish himself by suggesting new markets for the courses and material. All account managers and the marketing team report to him. They promote existing training courses to other training companies and existing customers.
End of the additional information.
During stage 3, project costs are increasing but there will still be a positive return on investment, as documented in the business case. However, corporate management has recently revised its targets for return on investment and has decided to stop the project as it will not meet the new targets.
Is this an appropriate application of the 'continued business justification' principle?

  • A. Yes, because changes in corporate strategy may impact a project's justification.
  • B. No, because the project business case still justifies a project.
  • C. No, because changes in corporate strategy should not impact a project once authorized.
  • D. Yes, because a change in a project's justification should trigger premature closure.

Answer: B


NEW QUESTION # 136
A photographer from Portraits Ltd, a professional photographic company, has taken on the role of Team Manager after taking some time to understand the requirements of the project. A contract for their services has been set up and is being monitored by the Purchasing Manager and a Work Package has been agreed. This contract specifies that the photographer must arrange a meeting with the Engineering Manager to establish a schedule for the photo sessions to minimize the impact on the Engineering staff. This meeting should have occurred by now.
The Engineering Manager was made aware of this requirement but when asked he reported that he has received no communication from the photographer. The Project Manager has tried to call the photographer and has had no response. The Project Manager believes there is a risk that Portraits Ltd are overbooking work and prioritizing other clients' work. If Portraits ltd do not deliver on schedule the project will be delayed and the expected benefits will be reduced.
The contract is to be reviewed and Portraits Ltd reminded of their agreement.
The project is now in stage 2. The Project Manager has heard about the possibility of a competitor also producing a calendar to be delivered earlier than the target date for this project. There is a threat that the early release of a competitor's calendar may weaken the impact of the MNO Manufacturing Company calendar, thereby reducing the anticipated benefits of the Calendar project.
Which 2 statements should be recorded under the Risk management procedure heading?

  • A. 'Reduce' Response actions which result in a lower impact and/or probability rating.
  • B. When a new problem arises, a full impact analysis will be undertaken to assess the impact on the project' objectives and Business Case.
  • C. Any risk which has an expected value of more than (GBP)1 k will NOT be registered.
  • D. Every threat and opportunity identified must be clearly defined in terms of cause, event and effect.
  • E. Probability will be assessed against the scales defined in this Risk Management Strategy.

Answer: D,E


NEW QUESTION # 137
The team member collating the list of customers has now forecast that it will NOT be complete by the end of
this stage as originally planned, due to a number of new prospective customers' details not yet being available.
What action should the team member take?

  • A. Report the forecast delay in the next Checkpoint Report to the Executive.
  • B. Make an entry in the Risk Register so the Project Manager can decide on appropriate action.
  • C. Raise an issue to inform the Project Manager.
  • D. Add the product to the next Stage Plan in order to allocate additional resources and complete the work.

Answer: C

Explanation:
Explanation/Reference:
Progress Theme
Testlet 2
Scenario:
Techniques, processes and procedures
1. Any threat that may result in a loss of MFH data must be escalated immediately.
Joint agreements
2. Work is to start at the beginning of week 2 (Stage 4).
3. The project will take two years to complete, at an estimated cost of E2.5m.
Tolerances
4. None.
Constraints
5. MFH staff must not be involved in any heavy lifting during the removal of existing IT equipment.
6. Installation work must take place during MFH normal working hours.
7. +E10,000 / -E25,000.
Reporting arrangements
8. Highlight Report every Monday by 10.00 am.
9. The report must contain a summary of all products worked on during the previous week.
10. Project Manager must be notified of any issues immediately by telephone.
Problem handling and escalation
11. Impact analysis of all issues must be completed within 24 hours.
Extracts or references
12. The Stage Plan for stage 4 is available from Project Support.
Approval method
13. Project Assurance will review the completed Work Package and confirm completion.


NEW QUESTION # 138
Which of the following activities could trigger the production of an exception plan?

  • A. Giving ad hoc direction
  • B. Review Stage status
  • C. Report stage end
  • D. Escalating a project issue

Answer: A


NEW QUESTION # 139
The project's change control approach states that PRINCE2's recommended issue and change control procedure will be used. The senior user has requested that a new set of marketing materials and marketing channels be introduced to support the launch of the training course. The senior user has suggested that this should be managed informally.
Where should the project manager record the issue, and why?

  • A. In the issue register, because issues should be recorded here first, before determining how to manage them.
  • B. In the daily log, because a change to a product at the default level can be handled informally.
  • C. In the issue register, because this is a request for change requiring a change to a baseline.
  • D. In the daily log, because the senior user has advised that this change should be informally.

Answer: D


NEW QUESTION # 140
Additional Information

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

Answer:

Explanation:
Explanation


NEW QUESTION # 141
Using the Project Scenario and the Extract from Stage Plan for stage 3 provided as additional intonation for this question in the Scenario Booklet, answer the following 5 questions.
The Stage Plan for stage 3 has been produced.
The Engineering Manager insists that there are to be no interruptions to operations whilst photographs are being taken of the engineering staff performing their everyday duties and operating machinery. Two weeks ago the professional photographer produced the photo session schedule based on the operational staff schedule.
The operational staff schedule is produced weekly and maintained by the Engineering Manager.
None of the E500 change budget has been used to date and this is available for the stage.
Which 2 statements apply to the External dependencies section?

  • A. Move entry 5 to Plan description because the new company logo will be delivered during stage 3.
  • B. Move entry 5 to Plan prerequisites because the new company logo will influence the label designs.
  • C. Delete entry 7 because it should be shown in the Product Description for the label design.
  • D. Delete entry 6 because the customer details were used in stage 2 to create the customer list.
  • E. Delete entry 5 because the new company logo is being delivered by a separate project and will be detailed in the plans for that project.

Answer: C,D


NEW QUESTION # 142
The project is now closed. The expected increase in revenue is not being achieved. It has been agreed with the team manager for the 'marketing materials' that additional marketing activities will be undertaken to achieve the expected increase in revenue.
Who should be responsible for monitoring the results of the marketing activities, and why?

  • A. The team manager for the 'marketing materials', because the project board is disbanded at the end of the project.
  • B. The team manager for the 'marketing materials', because this person has the skills to demonstrate that the activities are effective.
  • C. Senior user, because this person is responsible for specifying the desired from the project.
  • D. Senior user, because this person is responsible for realizing the benefits post-project.

Answer: D


NEW QUESTION # 143
Project Scenario - Health and Safety Training Project:
ABC Company is a well-established training company that uses a standard model to develop training materials and deliver courses to customers.
ABC Company has commissioned a project in response to recent changes in government legislation relating to health and safety on construction sites. The project will deliver "capability to provide health and safety training", including the materials needed for classroom-based training and e-learning. The expected benefits for construction companies include a reduction in lost days and legal costs due to accidents.
The e-learning course will be developed by a specialist external consultancy. The materials for classroom-based training will be delivered by ABC Company's development team. All course materials will be piloted before they are used. ABC Company will deliver training to its customers and also hopes to sell the course materials to other training companies as part of their operational business. ABC Company will use their own sales and marketing departments to promote the courses.
The legislation requires construction companies to comply with the new legislation within two years. The course materials and trainers have to be accredited by a government agency before courses can be delivered.
ABC Company is planning to deliver pilot courses within five months of starting the project.
The ABC Company standard development model for new courses recommends the following stages:

End of the Project scenario.
Additional Information:
The Chief Executive Officer (CEO) founded the company five years ago. Under her leadership, ABC Company has grown quickly into a successful training company. It delivers a range of accredited professional training.
The Finance Director is also a founder member of ABC Company and is responsible for authorizing budgets for the Operations and Development Teams. She authorizes all large contracts personally.
The Purchasing Manager reports to the Finance Director and is responsible for managing and monitoring supplier contracts.
The Operations Director is responsible for the delivery off all training and for the training development budget. His department organizes courses, venues and trainers. They work with the Product and the Sales teams to provide a comprehensive training schedule. ABC Company's IT manager reports to the Operations Director.
The Business Development Director has recently been appointed to identify new training needs and propose new products. She will work with the Operations. Director to ensure a cost-conscious approach and that appropriate development technologies are used for the health and safety course.
The Training Development Manager reports to the Business Development Director and is responsible for developing training materials and gaining accreditation, in accordance with the standard course development model. Course developers in his team have skills in a range of development technologies and are allocated to projects as needed.
The Training Delivery Manager, who reports to the Operations Director, is responsible for ensuring that internal and external trainers deliver ABC Company training courses to the required standard. He also checks course materials to ensure they are fit for purpose and of the required quality.
The Central Services Director has responsibility for corporate communications, facilities management and configuration management. He recently led a project to consolidate all company quality systems into one quality management system and set up a corporate quality department, now managed by the Corporate Quality Manager.
The Corporate Document Manager reports to the Central Services Director. She helped establish the company's document management system and now operates it across the business. She manages a team of administrators and contracts staff when workload is high.
The Sales Director joined ABC Company two months ago and is keen to establish himself by suggesting new markets for the courses and material. All account managers and the marketing team report to him. They promote existing training courses to other training companies and existing customers.
End of the additional information.
The executive has set the following tolerances for stage 2:
Time (+/- 1 week)
Cost (+/- £20,000)
Scope (using MoSCoW prioritization technique)
Risk (based on the risk appetite defined in the risk management approach) These tolerances have been recorded in the stage plan. The project manager will report progress regularly via highlight reports to the project board and use exception reports to raise exceptions. In addition, the project assurance role will monitor the stage to provide confidence to the project board that exceptions are being reported.
How well does this apply the 'manage by exception' principle, and why?

  • A. It applies the principle well, because the project manager needs to control the project using discrete management stages.
  • B. It applies the principle poorly, because it is the regular reporting of progress that should give the project board the required confidence.
  • C. It applies the principle poorly, because tolerances should be set for each stage against each of the six aspects of project performance.
  • D. It applies the principle well, because tolerances should be set for the related aspects of project performance for each stage.

Answer: C


NEW QUESTION # 144
The senior user is concerned that the trainers' limited availability could delay their accreditation. This was discussed during the 'starting up a project' process, but during the 'initiating a project' process the project manager notices that it has not been recorded.
Which action should the project manager take FIRST?

  • A. Raise an exception report to manage the impact that any such delay would have on the project plan.
  • B. Add appropriate activities to the project plan to manage the concern and avoid any adverse impact.
  • C. Raise an issue report so that the trainers' time can be allocated to the accreditation activities.
  • D. Add the information to the risk register so that it can be evaluated and an action decided.

Answer: B

Explanation:
Explanation/Reference:
Directing a Project, Controlling a Stage and Managing Product Delivery
Testlet 1
It is now late October and the project is in stage 3. The label design competition has been held and the photos of the staff have been taken. The CEO and Marketing Director still need to choose the winning label design and the 12 photos for the calendar. However, the Executive has learned that two competitors are issuing calendars to MNO's customers by the middle of November. After analyzing the impact of this Issue, one of the options the Project Manager has presented to the Project Board is to close the project prematurely.
There are a number of key facts relating to this project that would need to be recorded if the project Y-e to be closed now.


NEW QUESTION # 145
Extract from the Project Product Description (with errors)

Which 2 statements apply to the Composition section?

  • A. Move entry 6 to Derivation because this product already exists.
  • B. Add 'Calendars distributed to customers'.
  • C. Amend entry 2 to 'Selected paper'.
  • D. Delete entry 3 because this is NOT a major product to be delivered by this project.
  • E. Delete entry 7 because these will be produced by the photographer.

Answer: C,D


NEW QUESTION # 146
When does Directing a Project begin?

  • A. From the completion of Initiating a Project
  • B. From the beginning of Starting up a Project
  • C. From the completion of Starting up a Project
  • D. From the beginning of Initiating a Project

Answer: C


NEW QUESTION # 147
Which 2 statements should be recorded under the Expected benefits heading?

  • A. Outsourcing would allow MFH to take advantage of the best services the outsourcing industry has to offer.
  • B. The 10-year outsourcing contract, at current prices, will be worth E80m.
  • C. The 10-year outsourcing contract will enable MFH to stabilize costs at agreed levels.
  • D. The total expected savings over 10 years, at current prices, is E20m.
  • E. The confirmed cost of the Outsourcing project is E2.5m, but with considerable savings over 10 years.

Answer: C,D

Explanation:
Explanation/Reference: http://www.whatisprince2.net/prince2-theme-business-case.php


NEW QUESTION # 148
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