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PRINCE2 PRINCE2-Practitioner Exam Syllabus Topics:

Section	Objectives
PRINCE2 Principles
PRINCE2 Themes	- Organization - Progress - Quality - Risk - Plans - Change - Business Case
PRINCE2 Processes	- Managing Stage Boundaries - Directing a Project - Closing a Project - Initiating a Project - Controlling a Stage - Managing Product Delivery - Starting Up a Project

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PRINCE2 Practitioner Exam Sample Questions (Q161-Q166):

NEW QUESTION # 161
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to cut costs, better manage suppliers' performance and reduce the confusion caused by inadequate internal controls, outdated standards and outdated technology.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 Major risks heading?

A. MFH's operations may be reduced and the 1a-year contract may not achieve its estimated value of
£80m, which would reduce the service provider's profit.
B. The management stages recommended by the consultants may not be appropriate, resulting in confusion in planning.
C. Due to market conditions a suitable service provider may not be found, possibly leading to premature closure of the project.
D. Owing to employment contract changes staff may resist outsourcing, which would make it difficult to transfer staff to the selected service provider.
E. 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.

Answer: D,E

NEW QUESTION # 162
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. It will be similar to calendars sent out in previous years
C. The Marketing department want a very high quality, glossy product as they believe this will be more appealing to customers.
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 # 163
Which 2 statements should be recorded under the Expected dis-benefits heading?

A. The calendar may not result in the expected 10% increase in orders.
B. The calendar may not result in the 10 further orders from the list of prospective customers in 12 months.
C. A high quality, glossy product will involve additional costs.
D. Because the Calendar project is a priority for the MNO Manufacturing Company, the delivery of other projects within the Marketing department will be delayed.
E. Individuals in the engineering team who are not selected to appear in the calendar photographs will become de-motivated.

Answer: D,E

Explanation:
Explanation/Reference:

NEW QUESTION # 164
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 approach should support the delivery approach selected by the program.
B. No, because the progress controls should be documented in the project initiation documentation.
C. Yes, because the project event-driven controls need to align to program controls.
D. No, because the program team should review project progress using peer reviews.

Answer: B

Explanation:
Explanation/Reference:
Starting up and Initiating a Project
Testlet 1
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.

NEW QUESTION # 165
The project board authorizes the project after reviewing the PID and business case.
Is this appropriate application of Directing a Project?

A. Yes, PID authorization allows next stage work
B. Yes, notification replaces approval
C. No, because the stage plan must also be approved
D. No, because the council must approve

Answer: C

Explanation:
PRINCE2 requires the project board to approve both the PID and the next stage plan before authorizing work. Without an approved stage plan, work cannot begin.

NEW QUESTION # 166
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