PRINCE2 Certification PRINCE2-Practitioner Real Exam Questions and Answers FREE Updated on Sep 22, 2021
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NEW QUESTION 127
Scenario
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.
Without a Risk Register how can project risks, the progress of risk actions taken to date and the current status of residual risks be measured?
- A. The Daily Log was correctly used to monitor risks during the Starting up a Project process. It will be used to capture all risks, actions, decisions, assumptions
- B. In a simple project, the Project Initiation Documentation (PID) should contain a register for recording risk information and monitoring project risks throughout the delivery stages. The register will now be added to the PID.
- C. It was not appropriate to use the Daily Log to capture all risks and issues during the Starting up a Project process. Separate registers should have been set up for risks, issues and lessons learned. This will now be done.
Answer: A
NEW QUESTION 128
The project is part of a program to increase the number of ABC courses that respond to legislation. The program manager has instructed the project manager to deliver the 'e-learning course' incrementally. The project manager has asked the program manager how often the highlight reports are required, and what format the reports should be presented in.
Is this an appropriate approach to controlling progress, and why?
- A. Yes, because the project event-driven controls need to align to program controls.
- B. Yes, because the approach should support the delivery approach selected by the program.
- C. No, because the progress controls should be documented in the project initiation documentation.
- D. No, because the program team should review project progress using peer reviews.
Answer: C
NEW QUESTION 129
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 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?
- A. No, because ABC Company will not achieve their benefits if construction companies do not book the courses.
- B. No, because it is the customer's benefits that should be used to justify the project business case.
- C. Yes, because the benefits to the customer are an essential part of business justification for a project.
- D. Yes, because both tangible and intangible benefits should be included in the business case.
Answer: C
NEW QUESTION 130
When considering the business options in the business case, which of these is NOT an option?
- A. Do the maximum
- B. Do the minimum
- C. Do something
- D. Do nothing
Answer: A
NEW QUESTION 131
Which management product defines the detailed nature, purpose and function of a product?
- A. Product Description
- B. Quality Register
- C. Project Product Description
- D. Plan
Answer: A
NEW QUESTION 132
Which statement applies to the Quality standards section?
- A. Delete entry 5 because the lack of a change management procedure makes the MFH document standards unsuitable.
- B. Add 'PRINCE2 change control procedures will be used to manage any changes to baselined products'.
- C. Delete entry 4 because external suppliers are responsible for applying any relevant standards to their work.
- D. Add 'All contracts must conform to current employment laws".
Answer: D
NEW QUESTION 133
Additional Information
Further information on some resources who could be involved in the project:
Outcome Account Manager: He represents Outcome which is a recruitment agency that provides specialist outsourcing resources. Outcome provided the consultants who carried out the feasibility study and the same consultants will be providing support and guidance to the Information Technology and Facilities teams during the project.
Director of Finance Division: She was transferred from the Information Technology Division 12 months ago. She is responsible for ensuring a cost-conscious approach is adopted in all operational and project activities across the Ministry of Food Hygiene.
Hardware Manager: Reports to the Director of Information Technology. He provides computer hardware to all business functions but has little awareness of the needs of his colleagues working in software.
Payroll Manager: Reports to the Director of Finance. He is a very experienced and efficient qualified accountant who has much of the responsibility of running the Finance Division on behalf of the Director of Finance. He has been involved in drafting the Ministry's business strategy and assisting in a full business risk assessment. He also drafted the corporate Business Case standards.
Which 2 alternative actions apply to the proposed supplier assurance for this project?
- A. Remove because he is involved with the project and is therefore NOT independent.
- B. Retain because he is well-regarded within the Ministry because of the efficiencies, superb service and savings he has achieved in the Facilities Division.
- C. Add 'Outcome Account Manager' because he will advise on potential changes and their impact on the integrity of the project's products.
- D. Retain because he has a professional facilities qualification and so is in a position to specify the needs of his division.
- E. Retain because he will be able to advise on many of the products that will enable outsourcing to happen, such as the 10-year outsourcing service contract.
Answer: C,E
NEW QUESTION 134
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 Timescale heading?
- A. The expected benefits should start to be realized as soon as the outsourced services become operational at the end of stage 4.
- B. The contract with the selected service provider will be agreed during stage 3.
- C. The transfer of equipment and staff is estimated to take six weeks.
- D. If more MFH divisions are added to the scope of the services to be outsourced, the project timescale will be extended and the realization of benefits will be delayed.
- E. The expected benefits will be calculated over 10 years from completion of the project.
Answer: B,E
NEW QUESTION 135
Based on lessons from previous projects that used the ABC Company standard development model, the project board has set low cost and time tolerances for stage 2. As a result, the project manager plans to set very low tolerances for time and cost for all work packages to be carried out during stage 2.
Is this an appropriate application of the 'manage by exception' principle, and why?
- A. No, because tolerances set by the project manager should be the same as those set by the project board.
- B. Yes, because setting appropriate tolerances for work packages will help keep the stage within tolerances.
- C. No, because the project manager should divide the stage tolerances between the team managers.
- D. Yes, because the project manager should set tolerance equally for all work packages in a stage.
Answer: B
Explanation:
PRINCE2-Practitioner
Testlet 1
Project Scenario - Health and Safety Training Project:
ABC Company is a well-established training company that uses a standard model to develop training materials and deliver courses to customers.
ABC Company has commissioned a project in response to recent changes in government legislation relating to health and safety on construction sites. The project will deliver "capability to provide health and safety training", including the materials needed for classroom-based training and e-learning. The expected benefits for construction companies include a reduction in lost days and legal costs due to accidents.
The e-learning course will be developed by a specialist external consultancy. The materials for classroom- based training will be delivered by ABC Company's development team. All course materials will be piloted before they are used. ABC Company will deliver training to its customers and also hopes to sell the course materials to other training companies as part of their operational business. ABC Company will use their own sales and marketing departments to promote the courses.
The legislation requires construction companies to comply with the new legislation within two years. The course materials and trainers have to be accredited by a government agency before courses can be delivered. ABC Company is planning to deliver pilot courses within five months of starting the project.
The ABC Company standard development model for new courses recommends the following stages:
End of the Project scenario.
Additional Information:
The Chief Executive Officer (CEO) founded the company five years ago. Under her leadership, ABC Company has grown quickly into a successful training company. It delivers a range of accredited professional training.
The Finance Director is also a founder member of ABC Company and is responsible for authorizing budgets for the Operations and Development Teams. She authorizes all large contracts personally.
The Purchasing Manager reports to the Finance Director and is responsible for managing and monitoring supplier contracts.
The Operations Director is responsible for the delivery off all training and for the training development budget. His department organizes courses, venues and trainers. They work with the Product and the Sales teams to provide a comprehensive training schedule. ABC Company's IT manager reports to the Operations Director.
The Business Development Director has recently been appointed to identify new training needs and propose new products. She will work with the Operations. Director to ensure a cost-conscious approach and that appropriate development technologies are used for the health and safety course.
The Training Development Manager reports to the Business Development Director and is responsible for developing training materials and gaining accreditation, in accordance with the standard course development model. Course developers in his team have skills in a range of development technologies and are allocated to projects as needed.
The Training Delivery Manager, who reports to the Operations Director, is responsible for ensuring that internal and external trainers deliver ABC Company training courses to the required standard. He also checks course materials to ensure they are fit for purpose and of the required quality.
The Central Services Director has responsibility for corporate communications, facilities management and configuration management. He recently led a project to consolidate all company quality systems into one quality management system and set up a corporate quality department, now managed by the Corporate Quality Manager.
The Corporate Document Manager reports to the Central Services Director. She helped establish the company's document management system and now operates it across the business. She manages a team of administrators and contracts staff when workload is high.
The Sales Director joined ABC Company two months ago and is keen to establish himself by suggesting new markets for the courses and material. All account managers and the marketing team report to him.
They promote existing training courses to other training companies and existing customers.
End of the additional information.
NEW QUESTION 136
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 Roles and responsibilities heading?
- A. Each risk will be assigned a risk owner.
- B. Project Assurance will ensure that project risks are identified, assessed and controlled according to the agreed risk management procedure.
- C. Risk tolerances are allocated to each stage by the Project Manager.
- D. An external consultant is to facilitate a risk identification workshop.
- E. Risks exceeding the agreed project risk tolerance will be reported to the Project Board.
Answer: B,E
NEW QUESTION 137
Which 2 statements should be recorded under the Business options heading?
- A. Do nothing.
- B. Outsource the creation of the calendar to a professional marketing company.
- C. Use a professional photographer to create the photographs for the calendar.
- D. Produce a promotional calendar as a free Christmas gift to current and prospective customers.
- E. Create the photographs for the calendar internally.
Answer: A,D
NEW QUESTION 138
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 been decided which of the photographers to use.
Which 2 statements explain why the CEO should be appointed as the Executive for this project?
- A. He knows his job very well.
- B. He has an overall perspective of the business's strategic requirements.
- C. He started the company 25 years ago.
- D. He has the authority to commit resources as required.
- E. He restricts his visits to the engineering area.
Answer: B,D
NEW QUESTION 139
According to PRINCE2, which statement about appointing the MFH Quality Manager to administer the configuration management procedure is correct?
- A. The MFH Quality Manager would be suitable to perform this task because he is the author of the document control process and is likely to have the knowledge required for this role.
- B. The MFH Quality Manager should administer the configuration management procedure on this project because this task should always be assigned to corporate or programme management.
- C. The MFH Quality Manager should only administer the configuration management procedure on one project at a time. If the MFH Quality Manager already performs this task on another project, another individual should be appointed.
Answer: A
NEW QUESTION 140
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. No, because the team plan should be discussed with the supplier to check whether work will be completed on time.
- C. No, because the project manager should check the operations and maintenance interfaces in the work package first.
- D. Yes, because an exception report should be used to request guidance on how this situation should be handled.
Answer: D
NEW QUESTION 141
Scenario
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. Delete entry 14 because this skill is NOT required within this project.
- C. Move entry 13 to Derivation because this is a source of information for this project.
- D. Delete entry 15 because this skill is NOT required within this project.
- E. Add 'Knowledge of Data Protection Act.
Answer: D,E
NEW QUESTION 142
The project board has asked user and supplier assurance to review all product descriptions relating to the
'updated corporate quality procedures', prior to authorizing the stage plan for stage 3.
Is this appropriate as part of the 'directing a project' process, and why?
- A. No, because the project board should review new product descriptions before they authorize the stage 3 plan.
- B. Yes, because project assurance should assess whether all stakeholders have been identified, if requested by the project board.
- C. No, because the project manager is responsible for writing product descriptions when creating the stage 3 plan.
- D. Yes, because project assurance should review the stage 3 plan for viability, if requested by the project board.
Answer: A
NEW QUESTION 143
QUALITY
Here are three actions related to managing quality on the Health and Safety Training Project.
Which role (A-F) should be responsible for each action?
Choose only one role for each action. Each role can be used once, more than once, or not at all.
Answer:
Explanation:
Explanation
NEW QUESTION 144
Scenario
Extract from the Project Product Description (with errors)
Which 2 statements apply to the Derivation section?
- A. Add 'Professional photographer'.
- B. Move entry 12 to Composition, because this is within the scope of this project.
- C. Move entry 9 to Composition because this is within the scope of the project.
- D. Delete entry 10 because this is NOT a source product for this project.
- E. Delete entry 11 as this is already correctly shown under Development Skills required.
Answer: B,E
NEW QUESTION 145
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 Proximity heading?
- A. Any risk with a proximity category of imminent will be estimated as having a very high impact.
- B. Imminent risks are those which may occur within two weeks.
- C. The risk of MFH having no outsourcing experience will be categorized as Stage 4 proximity.
- D. Proximity categories for this project are: Imminent; Within the stage; Within the project; Beyond the project.
- E. The risk of staff leaving the organization will be categorized as beyond the project proximity.
Answer: A,B
NEW QUESTION 146
While deciding on how the work of the project should be approached the following were considered.
Which statement is appropriate for inclusion in the project approach heading in the Project Brief?
- A. New up-to-date software will be obtained to produce the graphical sections of the Project and Stage Plans.
- B. The detailed designs (future process, systems, operating and organization models) will be based on the existing high-level designs.
- C. The Project Manager will involve the selected service provider in the creation of the Stage Plan for stage
4.
Answer: B
NEW QUESTION 147
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