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| Section | Objectives |
|---|---|
| Principles | - Apply the PRINCE2 principles in context |
| Practices | - Business case - Quality - Risk - Progress - Plans - Issues - Organizing |
| Processes | - Managing a stage boundary - Controlling a stage - Managing product delivery - Initiating a project - Closing a project - Starting up a project - Directing a project |
| People | - People management and effective collaboration |
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NEW QUESTION # 21
While preparing the project plan during initiation, the project manager proposes that stage 2 should end at the Council's financial year-end. This would allow the decision on funding for stage 3 to coincide with the Council's annual budget process.
Is this an appropriate application of the 'manage by stages' principle, and why?
Answer: A
Explanation:
The correct answer is A . PRINCE2 management stages are governance constructs and do not have to correspond mechanically to technical phases or fixed time intervals. Their boundaries should be positioned where they provide effective control and meaningful decision points for the project board.
Aligning the end of stage 2 with the Council's financial year-end is therefore appropriate because the continuation decision for stage 3 depends on a significant external funding decision. The boundary creates a natural point at which actual progress can be assessed, the business case can be reviewed, future funding confirmed, and the next stage authorized with current information. PRINCE2's management-by-stages approach supports progressive planning and explicit review points rather than committing detailed authority for the entire project at initiation.
Option B is incorrect because completing a single specialist product does not automatically determine the end of a management stage. Stage boundaries are selected to provide appropriate management control. Option C is too restrictive: risk is an important consideration when determining stage length, but it is not the sole factor.
Option D similarly overstates technical complexity as the determining factor. Business decisions, risk, uncertainty, planning horizon, organizational constraints, and external decision points can all influence stage design.
PRINCE2 7 reference topics: Manage by stages; management stage design; planning horizon; stage boundaries; authorization of the next stage.
NEW QUESTION # 22
Near the end of stage 2, the supplier planned for the utilities and systems work becomes financially unstable and a replacement subcontractor is selected for stage 3. The project manager recommends that the replacement subcontractor's account manager should represent the supplier interest as senior supplier.
During which 'managing a stage boundary' activity should this recommendation be developed?
Answer: D
Explanation:
The correct answer is B - Prepare the next stage plan . The managing a stage boundary process ensures that the project board receives sufficient information to review the current stage and make an informed decision about authorizing the next one. Preparing the next stage plan includes determining how the forthcoming stage will be organized, resourced, managed, and controlled.
The replacement subcontractor will perform important utilities and systems work during stage 3.
Consequently, the project manager must consider whether the existing project management team remains appropriate for the forthcoming stage. Recommending the subcontractor's account manager as the new senior supplier is directly connected with establishing appropriate supplier representation and governance for the work that will be undertaken in that next stage.
Option A concerns revising the higher-level project plan using current information and forecasts; it does not primarily establish stage-specific project management team arrangements. Option C concerns assessing how the current stage performed, including achievements and lessons. Option D occurs after the necessary stage- boundary information has been prepared and is used to request authorization from the project board.
The recommendation should therefore be developed while preparing the next stage plan , so that the required organization and supplier representation are clear before authorization of stage 3 is requested.
PRINCE2 7 reference topics: Managing a stage boundary; prepare the next stage plan; organization; senior supplier; supplier representation; project management team.
NEW QUESTION # 23
BuildyBrick is demobilizing after delivering the shopping centre on time and within budget. Before the remaining supplier personnel leave, the project manager checks that the Council's operations and facilities teams are ready to receive, operate and maintain the completed centre.
Why is this an appropriate application of the 'confirm project acceptance' activity?
Answer: D
NEW QUESTION # 24
During stage 3, the foundations team manager tells the project manager that the completed foundations may have changed rainwater flow onto a neighbouring property. The project manager notes the concern in the project log but dismisses it without assessment and instructs the team to continue because the design has planning approval.
Is this an appropriate application of the 'capture issues and risks' activity, and why?
Answer: D
Explanation:
The correct answer is C . The purpose of capture issues and risks is not merely to record information. Newly identified concerns must be considered sufficiently to determine their nature, significance, and appropriate treatment. An informal concern can subsequently prove to be a material issue or risk affecting project objectives, stakeholders, regulatory obligations, cost, schedule, or reputation.
The possibility that completed foundations have altered rainwater flow onto neighbouring property has potentially significant consequences. Planning approval does not demonstrate that this newly identified condition is harmless. The project manager should therefore assess the concern before deciding whether it can be handled informally, requires formal entry in the issue or risk register, needs specialist investigation, or demands escalation or corrective action.
Option A incorrectly treats recording as equivalent to management. A log entry provides traceability but does not establish whether further action is required. Option B similarly conflicts with effective issue and risk management because an informal route does not exempt a concern from proportionate assessment. Option D is incorrect because potentially significant matters should be raised when identified; the team manager is not required to wait for the next scheduled checkpoint report.
The essential PRINCE2 control is to capture, assess, and determine an appropriate response , rather than dismissing uncertainty solely because existing approval had previously been obtained.
PRINCE2 7 reference topics: Controlling a stage; capture issues and risks; project log; issue assessment; risk assessment; corrective action.
NEW QUESTION # 25
During stage 2, the project board agrees that the underground car park should contain 15 rapid-charging spaces, with a scope tolerance permitting delivery of no fewer than 10 spaces. The project manager includes this tolerance in the relevant work package agreed with the team manager.
Is this an appropriate application of the 'manage by exception' principle, and why?
Answer: B
Explanation:
The correct answer is A . Manage by exception is based on delegating authority within explicitly agreed tolerances. Higher management sets boundaries within which the lower management level may make decisions without repeatedly seeking approval. Escalation becomes necessary when a tolerance is forecast to be exceeded.
In this scenario, the desired scope is 15 rapid-charging spaces, while the project board has accepted a lower limit of 10. That creates a defined permissible range for the scope of the relevant product or work package.
The project manager can therefore delegate delivery within that range to the team manager. As long as the forecast remains within the agreed scope tolerance, routine design decisions do not need to be referred back upward. PeopleCert summarizes the principle by stating that authority should be delegated within agreed tolerances, avoiding both micromanagement and uncontrolled exceptions.
Option B incorrectly categorizes the tolerance as quality tolerance . The number of charging spaces concerns the extent of what is being delivered and is therefore a scope parameter. Options C and D undermine the fundamental purpose of management by exception by requiring unnecessary precision and escalation where authorized flexibility has deliberately been provided.
PRINCE2 7 reference topics: Manage by exception; tolerances; scope performance target; delegation; work packages; exception escalation.
NEW QUESTION # 26
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