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| Section | Objectives |
|---|---|
| Topic 1: Practices | - Risk - Issues - Organizing - Progress - Business case - Quality - Plans |
| Topic 2: Principles | - Apply the PRINCE2 principles in context |
| Topic 3: Processes | - Controlling a stage - Starting up a project - Initiating a project - Managing a stage boundary - Closing a project - Managing product delivery - Directing a project |
| Topic 4: People | - People management and effective collaboration |
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NEW QUESTION # 19
A new law requires everyone working on public-infrastructure projects to hold an appropriate security clearance. The project manager records the legislation as an external event in the issue register so that its effects can be assessed.
Is this an appropriate application of the issues practice, and why?
Answer: C
Explanation:
The correct answer is A . The legislation is an external event that has already occurred : a new legal requirement now applies to people working on public-infrastructure projects. It therefore represents an issue rather than merely an uncertain future risk. Recording it in the issue register enables the project team to assess its impact and determine what action may be necessary.
The effect could be significant. Existing or planned personnel may not possess the required security clearance, which could constrain the availability of resources, delay mobilization, alter supplier arrangements, increase costs, or affect scheduled delivery. The project manager should therefore ensure the event is captured and assessed rather than waiting until every consequence is known.
Option B is incorrect because external events that affect project objectives should still be managed through the project's agreed governance and issue-management controls. Option C would delay formal management of an event whose implications may require immediate investigation and action. Option D incorrectly assumes that externally generated issues belong exclusively to the business layer. The business may need to participate in resolving some consequences, but the project team must manage impacts on the project within its authority and escalation arrangements.
The key distinction is that an issue concerns something that has happened or is currently relevant , whereas a risk concerns uncertainty about a future event.
PRINCE2 7 reference topics: Issues practice; external events; issue register; issue assessment; resource impacts; risk-versus-issue distinction.
NEW QUESTION # 20
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 # 21
During 'closing a project', the project manager updates the arrangements that specify how and when the Head of the Portfolio Office will measure the increase in business opportunities after LouisShopping enters operational use.
During which closing activity should this be done?
Answer: D
Explanation:
The correct answer is A - Prepare planned closure . A project can be operationally complete before all of its intended benefits have been realized. Many benefits emerge only after project products have been transferred into business-as-usual operation. Consequently, closing arrangements need to establish how outstanding benefits will subsequently be measured and reviewed.
In this scenario, the anticipated increase in business opportunities will be assessed after LouisShopping has entered operational use. The project manager therefore needs to update the relevant post-project benefit- review arrangements during prepare planned closure , identifying what is to be measured, when measurement should occur, and who will be responsible. The Head of the Portfolio Office is identified as the person who will perform that subsequent measurement.
Option B concerns obtaining confirmation that the project's products have been accepted and that appropriate handover has occurred. Option C focuses on evaluating overall project performance and producing closure information such as the end project report and lessons. Option D is the formal request to the project board to authorize closure once the necessary closure activities have been completed.
Preparing planned closure is therefore the appropriate point to ensure that post-project measurement responsibilities remain in place after the temporary project organization is disbanded.
PRINCE2 7 reference topics: Closing a project; prepare planned closure; benefits management; post-project benefits reviews; operational use; business responsibility after closure.
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: C
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
At the end of the initiation stage, the Regeneration Manager submits the project plan and business case for review. The Portfolio Director releases funding for both stages 2 and 3 and instructs the project manager to provide only a progress report at the end of stage 2, without a project board decision before stage 3 begins.
Is this an appropriate application of the 'manage by stages' principle, and why?
Answer: D
Explanation:
The correct answer is D . Under the manage by stages principle, a PRINCE2 project is divided into management stages that create defined governance and decision points. The project manager manages the current authorized stage, while the project board retains control over whether the project should proceed into the next management stage.
At a stage boundary, the project manager normally provides the information required for the project board to assess performance, review the updated business case and project plan, consider risks and issues, and evaluate the next stage plan. The board can then decide whether continued investment remains justified and whether the next stage should be authorized. PeopleCert guidance describes management stages as controlled segments with review points at which continuation can be approved or stopped.
Releasing funding for stages 2 and 3 does not remove the governance requirement to reassess the project before stage 3 starts. Option A confuses the project manager's delegated day-to-day authority within an authorized stage with authority to proceed automatically across stage boundaries. Option B concerns reporting customization rather than stage authorization. Option C incorrectly focuses on which corporate entity provides funding rather than the PRINCE2 control mechanism being tested.
PRINCE2 7 reference topics: Manage by stages; Managing a stage boundary; Directing a project; continued business justification; authorization of a stage.
NEW QUESTION # 24
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