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NEW QUESTION 137
The Sales Director would like to add a new company logo to the 'marketing material'. The change to the project scope has been approved by the project board. It is expected to delay product and stage completion date by 3 days and cost £900. The stage 2 cost tolerance of +£1,000 has not been used. The change budget of
£500 has not been used.
Which option describes how this change should be funded?
- A. £900 of additional funding will need to be requested to pay for the change.
- B. £400 will need to be requested in addition to the £500 change budget.
- C. £900 needed for the change should be taken from the stage 2 cost tolerance.
- D. £400 of the stage 2 cost tolerance and the £500 change budget should be used.
Answer: B
NEW QUESTION 138
Which of the following reports does not contain any information on risk?
- A. Issue Report
- B. Highlight report
- C. End Stage Report
- D. Lessons Report
Answer: A
NEW QUESTION 139
Which 2 statements should be recorded under the Major risks heading?
- A. Due to market conditions a suitable service provider may not be found, possibly leading to premature closure of the project.
- B. The management stages recommended by the consultants may not be appropriate, resulting in confusion in planning.
- C. The initial estimates, taken from the feasibility study report, indicate that the project will take two years to complete, which means that the business problems would remain for this period.
- D. MFH's operations may be reduced and the 1a-year contract may not achieve its estimated value of E80m, which would reduce the service provider's profit.
- E. Owing to employment contract changes staff may resist outsourcing, which would make it difficult to transfer staff to the selected service provider.
Answer: C,E
Explanation:
Explanation/Reference:
Business Case Theme
Question Set 3
NEW QUESTION 140
There are four steps in the Risk Management procedure, what are they?
- A. Identify, Assess, Resource, Implement
- B. Identify, Assess, Plan, Implement
- C. Identify, Evaluate, Resource, Implement
- D. Identify, Evaluate, Plan, Implement
Answer: B
NEW QUESTION 141
Which of the following risk responses can be used for either an opportunity or a threat?
- A. Enhance
- B. Reduce
- C. Reject
- D. Share
Answer: D
NEW QUESTION 142
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 a Senior User for this project?
- A. The Marketing department will help to deliver the benefits of this project.
- B. A number of the products will be produced by the Sales department and the Marketing department.
- C. The project will be funded from the business marketing budget.
- D. She can represent the Marketing department.
- E. She previously had a successful career in publicity.
Answer: A,D
NEW QUESTION 143
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 (PID). The PID 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.
This question provides a number of changes which may or may not be required to the Extract from the Communication Management Strategy provided in the additional information.
Which statement applies to the Information needs for each interested party section?
- A. Move entry 13 to Tools and techniques because it describes the method to be used to communicate to the individual producing the staff newsletter.
- B. Delete entry 13 because the activity to provide the weekly updates should be scheduled in the relevant Stage Plan.
- C. Delete entry 14 because this relates to the development of a particular product and should be recorded under Development interfaces within the relevant Work Package.
Answer: C
NEW QUESTION 144
Which 2 statements apply to either the Extracts or references or Approval method sections?
- A. A suitable entry for Extracts or references would be 'Product Descriptions are available from Project Support'.
- B. Add 'The Project Manager is to be advised of completion of the Work Package by email'.
- C. Delete entry 13 because this is NOT a Project Assurance responsibility.
- D. Project Manager.
- E. Move entry 13 to Reporting arrangements because this describes how completion will be advised to the
- F. Delete entry 12 because this should be the Team Plan not the Stage Plan.
Answer: A,F
Explanation:
Explanation/Reference:
Question Set 3
NEW QUESTION 145
Who is responsible for confirming stage and project progress against agreed tolerances?
- A. Project Assurance
- B. Executive
- C. Project Support
- D. Project Manager
Answer: A
Explanation:
Explanation/Reference:
NEW QUESTION 146
Which 2 statements apply to the Composition section?
- A. Amend entry 2 to 'Selected paper'.
- B. Add 'Calendars distributed to customers'.
- C. Move entry 6 to Derivation because this product already exists.
- D. Delete entry 7 because these will be produced by the photographer.
- E. Delete entry 3 because this is NOT a major product to be delivered by this project.
Answer: A,E
NEW QUESTION 147
Scenario:
The Ministry of Food Hygiene (MFH) has a quality management system which contains a document control process to manage all documentation requirements. The document control process was created by the MFH Quality Manager, who now maintains all of MFH's documents and performs an organization-wide configuration management role. The MFH Quality Manager will administer the configuration management procedure for the Restructuring project since this must comply with the MFH document control process.
What products will be impacted by this change?
- A. Only those products created in the first three weeks of stage 3.
- B. All of the project's products which relate to or include services provided by the Facilities Division.
- C. No products would need to be changed but some will need to be removed from the project.
- D. All of the project's products created so far.
Answer: C
NEW QUESTION 148
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 running cost of the outsourced service?
- A. Must be kept to a level acceptable to the Ministry of Food Hygiene.
- B. Subject to market conditions.
- C. Must be kept to a minimum.
- D. The annual increase to be less than half the rate of inflation.
Answer: D
NEW QUESTION 149
ABC Company has a number of projects in progress. The executive of the Health and Safety Training Project
is also a member of the project board for two other projects and is very busy. As a result, during this initiation
stage, the executive has appointed another person to carry out both their business assurance and the role of
change authority for minor and medium severity issues.
Is this appropriate, and why?
- A. No, because the project manager identifies the level of tailoring that is relevant for the project.
- B. No, because the decision to have a change authority should be made before the project is authorized.
- C. Yes, because people with delegated project assurance roles may act as the change authority.
- D. Yes, because projects that are likely to have many changes should delegate the change authority.
Answer: C
NEW QUESTION 150
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. 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. - C. The contract with the selected service provider will be agreed during stage 3.
- D. The transfer of equipment and staff is estimated to take six weeks.
- E. The expected benefits will be calculated over 10 years from completion of the project.
Answer: C,E
NEW QUESTION 151
Scenario:
The Ministry of Food Hygiene (MFH) has a quality management system which contains a document control process to manage all documentation requirements. The document control process was created by the MFH Quality Manager, who now maintains all of MFH's documents and performs an organization-wide configuration management role. The MFH Quality Manager will administer the configuration management procedure for the Restructuring project since this must comply with the MFH document control process.
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 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.
- C. 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.
Answer: A
NEW QUESTION 152
Scenario
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 Budgets section?
- A. Add 'Change budget - £500'.
- B. Add 'Cost tolerance - +£6k 1-£6k
- C. Amend entry 15 because it should also include the cost of management activities.
- D. Delete entry 17 because the risk budget should be shown in the Risk Management Strategy.
- E. Delete entry 16 because timescales should NOT be shown under the heading of budgets.
Answer: A,C
NEW QUESTION 153
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