NEW QUESTION 1

Product Summary
A list of customers will be collated. This will use existing information from the Accounts department about current customers, and existing information from the Marketing department about prospective customers.
Using the tariff of mailing costs available from the Post Office, a production cost forecast will be produced to allow the CEO and the Marketing Director to decide whether to continue with the project. If they decide to continue, they will give the approval to launch the internal label design competition. Competition rules will be required to communicate details of the competition to the staff. The chosen label design will then be selected from the competition entries.
The photos for the calendar must be based on existing photo design ideas available from the Marketing department. The selected photos will be chosen from these. Monthly calendar displays will be created to show the required layout of each page.
Product Breakdown Structure (contains errors)

Extract from Stage Plan for stage 3.
(All entries are true statements but may not be shown under the correct heading or in the correct document).

Using the Project Scenario and the Extract from Stage Plan for stage 3 provided as additional intonation for this question in the Scenario Booklet, answer the following 5 questions.
The Stage Plan for stage 3 has been produced.
The Engineering Manager insists that there are to be no interruptions to operations whilst photographs are being taken of the engineering staff performing their everyday duties and operating machinery. Two weeks ago the professional photographer produced the photo session schedule based on the operational staff schedule. The operational staff schedule is produced weekly and maintained by the Engineering Manager.
None of the £500 change budget has been used to date and this is available for the stage. Which 2 statements apply to the External dependencies section?

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

Answer: DE

NEW QUESTION 2

M1ich statement is an appropriate entry for the outline Business Case heading within the Project Brief?

• A. 10 year service contract should be agreed with the selected service provider.
• B. External consultants were employed to conduct a feasibility study to identify the options, their likely costs and benefits.
• C. The project will run for two years and the benefits will be realized over 1a years.
• D. The project should be split into four management stages.

Answer: C

NEW QUESTION 3

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.
The service level agreement contains a number of technical terms that are missing from its glossary of terms.

• A. Obtain agreement from the Director of Facilities Division to add these into the glossary of terms within the remaining +2 days tolerance.
• B. Raise an issue (off-specification).
• C. Raise an issue (request for change).
• D. No action required.

Answer: A

NEW QUESTION 4

Additional Information
Chief Executive Officer (CEO): He started the company 25 years ago and knows his job very well. He injured his leg two years ago which has restricted his visits to the engineering area. As CEO he has an overall perspective of the business strategic requirements and the authority to commit resources as required.
Marketing Director: She has been with the company for three years, following a successful career with a publicity company. She has the ability to represent the needs of the business, particularly as this is a marketing project. She has the authority to commit the annual business marketing budget, from which the project will be funded, as she sees appropriate. She will be responsible for monitoring the expected benefits of the calendar, in particular the improvement of the company's image.
Engineering Manager: He has been responsible for many engineering innovations in the company and is still as keen and energetic as the day he started. VVhilst he will not be part of the project team, his staff will feature in the photos for the promotional calendar.
Central Records: This group of five staff looks after all company records and document control. They now maintain all project files.
Bright Lights: This is the local office supplies company. It supplies all the stationery and office equipment needs of the company and will supply the stationery for this project.
Portraits ltd: This is a professional photographic company with a number of excellent photographers and a history of successful work. This company has been selected to take the photos for the company calendar. It has yet be decided which of the photographers to use.
Which 2 statements explain why the Marketing Director should be appointed as the Executive for this project?

• A. She has been with the company for three years.
• B. She previously had a successful career in publicity.
• C. She is able to represent the business needs of MNO Manufacturing.
• D. She has authority to commit the marketing budget, from which the project will be funded.
• E. She requires more experience working with the engineering industry.

Answer: CD

NEW QUESTION 5

Additional Information
Extract from the Communication Management Strategy.
The project information in the table below is true, but it may not be recorded under the correct heading or be in the correct document.

Using the Project Scenario, select the appropriate response to each of the following 5 questions which have been raised by the Project Board.
The project is now at the end of the initiation stage. Having decided that the Calendar project is a relatively simple project, the Project Manager combined the Starting Up a Project process and the Initiating a Project process. No Project Brief has been produced. Instead the Project Manager used the project mandate to produce a simple Project Initiation Documentation (PlO). The PlO includes the Business Case, a product checklist and several Product Descriptions, Including the Project Product Description. Short sections are also included for each of the strategies and the controls to be applied. The Project Manager has elected to use the Daily Log to record all risks, issues, lessons and quality - results.
After the initiation stage there will be two further stages during which a small number of Work Packages will be authorized. While these are being managed, the Project Manager will hold regular checkpoints, which will support the production of weekly Highlight Reports to the Project Board.
There is no mention of any Stage Plans, yet there are two further stages proposed. How will this be resolved?

• A. It is appropriate for the Calendar project to be run as two further stages as there is a key decision to be made at the end of stage 2. Stage Plans will be produced.
• B. Whilst the activities are divided into two further stages, there is no reason why the Calendar project should use stage
• C. The project will therefore be run as a single stage project and the activities will be added to the Initiation Stage Plan.
• D. There will be three Stage Plans, the two management stages plus an additional stage to plan and complete the activities of the Closing a Project process.

Answer: A

NEW QUESTION 6

While producing the Team Plan to deliver the agreed Work Package, it became apparent that the user representatives assigned 10 check some of the products were unsuitable.
Which 2 actions should the Team Manager take in response to this situation?

• A. Consult the Senior Supplier to assign suitable reviewers.
• B. Discuss the situation with Project Assurance and agree the changes or additions to the reviewer
• C. Advise the Project Manager of this risk.
• D. Ensure the Quality Register is updated with details of the agreed amendments to the reviewers.
• E. Notify the Project Manager by raising an Exception Report explaining that the original reviewers are unsuitable.

Answer: AB

NEW QUESTION 7

Scenario
A central government department, the Ministry of Food Hygiene (MFH), faces increasing
pressure to cut costs, better manage suppliers’ performance and reduce the confusion caused by inadequate internal controls, outdated standards and outdated technology. External consultants were employed to conduct a feasibility study to identify options to address the problems, and the likely costs and benefits. The following options were considered:
Do nothing.
Re-engineer selected business functions. Outsource selected business functions.
The feasibility study concluded that there was a case for outsourcing the MFH Information Technology
Division and the Facilities Division (maintenance of buildings and grounds). The recommendations were:
One service provider should be contracted to provide the services currently provided by the
Information Technology Division and the Facilities Division.
A 10-year service contract should be agreed with the selected service provider.
The feasibility study developed high-level designs of the current organization, processes, systems and
operating models, plus an outline Business Case for the required project. The external consultants
also made the following recommendations for the management of the project:
Use PRINCE2.
Set up the project with 4 management stages:
Stage 1. Standard PRINCE2 initiation activities.
Stage 2. Create detailed designs (future organization, processes, systems and operating models) and the service level agreement between MFH and the future service
provider.
Stage 3. Request and evaluate proposals, select service provider and agree contract.
Stage 4. Transfer equipment and staff, transfer responsibility for service provision and run trial period.
Initial estimates indicated that the project would cost £2.5m and take two years to complete.
MFH senior management agreed that there was a case for outsourcing, and accepted the recommendations as a basis for the project. There is an expected saving of £20m over 10
years.
The Outsourcing project has completed the Starting up a Project process and is now in the initiation stage. Because of the strategic importance of the project, the MFH Chief Executive Officer has taken the role of Executive. A PRINCE2-experienced Project Manager has been appointed from within MFH. Staff within the business functions being outsourced will work with the external consultants who conducted the feasibility study to define the detailed designs.
Which 2 statements should be recorded under the Expected benefits heading?

• A. The 10-year outsourcing contract, at current prices, will be worth £80m.
• B. Outsourcing would allow MFH to take advantage of the best services the outsourcing industry has to offer.
• C. The total expected savings over 10 years, at current prices, is £20m.
• D. The 10-year outsourcing contract will enable MFH to stabilize costs at agreed levels.
• E. The confirmed cost of the Outsourcing project is £2.5m, but with considerable savings over 10 years.

Answer: CD

NEW QUESTION 8

Extract from the Project Product Description (with errors)

Which 2 statements apply to the Development skills required section?

• A. Move entry 13 to Composition because the appointment of the photographer is within the scope of this project.
• B. Move entry 13 to Derivation because this is a source of information for this project.
• C. Delete entry 14 because this skill is NOT required within this project.
• D. Delete entry 15 because this skill is NOT required within this project.
• E. Add 'Knowledge of Data Protection Act.

Answer: DE

NEW QUESTION 9

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 transferred facilities computer system?

• A. Must be subject to regular back-ups.
• B. Planned periods of shutdowns of the computer system must be kept to a minimum.
• C. No (zero) loss of system functionality.
• D. Back-up of data must be kept until the data is no longer needed.

Answer: C

NEW QUESTION 10

It is now late October and the project is in stage 3. The label design competition has been held and the photos of the staff have been taken. The CEO and Marketing Director still need to choose the winning label design and the 12 photos for the calendar. However, the Executive has learned that two competitors are issuing calendars to MNO's customers by the middle of November. After analyzing the impact of this Issue, one of the options the Project Manager has presented to the Project Board is to close the project prematurely.
There are a number of key facts relating to this project that would need to be recorded if the project Y-e to be closed now.
Which product should show that the photos could be used for other promotional material for the company?

• A. Benefits Review Plan
• B. Lessons Log
• C. Exception Report
• D. End Project Report

Answer: D

NEW QUESTION 11

Who would be responsible for maintaining the Configuration Item Records?

• A. Project Manager
• B. Project Support
• C. Project Assurance
• D. Team Manager

Answer: B

NEW QUESTION 12

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.
Although it is not specified in the current corporate branding standards, the MFH corporate logo should be shown on the front page of the service level agreement.

• A. Obtain agreement from the Director of Facilities Division to amend this within the remaining +2 days tolerance.
• B. Raise an issue (off-specification).
• C. Raise an issue (request for change).
• D. Accept this error as a concession.

Answer: C

NEW QUESTION 13

Which management product do the Project Board use to decide whether to authorize initiation?

• A. Project Brief
• B. Business Case
• C. Project Initiation Documentation
• D. Project Product Description

Answer: A

NEW QUESTION 14

Which of the following statements is true of the business interest on the project?

• A. Ensures the project provides value for money
• B. Ensures the requirements for the project are defined
• C. Ensures the products produced meet the desired quality
• D. Represents the users of the product

Answer: A

NEW QUESTION 15
HOTSPOT
Scenario:
Techniques, processes and procedures
1. Any threat that may result in a loss of MFH data must be escalated immediately.
Joint agreements
2. Work is to start at the beginning of week 2 (Stage 4).
3. The project will take two years to complete, at an estimated cost of £2.5m. Tolerances
4. None.
Constraints
5. MFH staff must not be involved in any heavy lifting during the removal of existing IT equipment.
6. Installation work must take place during MFH normal working hours. 7. +£10,000 / -£25,000.
Reporting arrangements
8. Highlight Report every Monday by 10.00 am.
9. The report must contain a summary of all products worked on during the previous week.
10. Project Manager must be notified of any issues immediately by telephone.
Problem handling and escalation
11. Impact analysis of all issues must be completed within 24 hours.
Extracts or references
12. The Stage Plan for stage 4 is available from Project Support.
Approval method
13. Project Assurance will review the completed Work Package and confirm completion
Column 1 is a list of actions that occur during the Controlling a Stage process. For each action in Column 1, select from Column 2 the PRINCE2 theme that is being applied. Each selection from Column 2 can be used once, more than once or not at all.
Drop down the answer from column 1 to column 2.

• A. Mastered
• B. Not Mastered

Answer: A

Explanation:

NEW QUESTION 16
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