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| Section | Objectives |
|---|---|
| People | - Effective communication - Leading successful teams - Leading successful change |
| PRINCE2 Project Management Practices | - Risk - Issues - Quality - Plans - Business case - Organizing - Progress |
| PRINCE2 Project Management Processes | - Closing a project - Starting up a project - Controlling a stage - Managing a stage boundary - Directing a project - Initiating a project - Managing product delivery |
| PRINCE2 Project Management Principles | - Manage by stages - Define roles, responsibilities and relationships - Focus on products - Manage by exception - Tailor to suit the project - Ensure continued business justification - Learn from experience |
| Project Context and Tailoring | - Project scale and complexity - Commercial context - Organizational context - Tailoring PRINCE2 to the project context - Sustainability - Digital and data management - Delivery methods and approaches |
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NEW QUESTION # 28
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 # 29
During initiation, the project executive asks the project manager to evaluate a credible business option that omits the underground car park. The project manager includes an investment appraisal of that option in the full business case, despite the main contractor's objection.
Is this an appropriate application of the business case practice, and why?
Answer: C
Explanation:
The correct answer is A . The purpose of the business case is to provide the information needed to determine whether the project represents a desirable, viable, and achievable investment. Developing that justification requires the project to evaluate credible alternatives rather than assuming that the initially proposed solution is automatically the optimum investment.
The option without the underground car park is described as credible. It is therefore appropriate for the project manager to include an investment appraisal of that option so that decision-makers can compare its costs, benefits, risks, dis-benefits, and overall value with those of the preferred solution. The main contractor's objection does not remove the project's responsibility to examine legitimate business alternatives; supplier preferences must not determine investment justification.
Option B is incorrect because PRINCE2 does not impose a universal requirement for customer and supplier organizations to maintain completely separate business cases. Option C incorrectly treats initial scope as immutable. During development of the business case, alternative configurations can be evaluated when this helps determine the most appropriate investment. Option D similarly assumes that one anticipated benefit- parking income-precludes examination of other options. A benefit is an input to investment appraisal, not a reason to suppress alternatives.
The scenario therefore demonstrates objective option appraisal as part of sound business justification.
PRINCE2 7 reference topics: Business case practice; business options; investment appraisal; justification; desirability, viability and achievability; initiating a project.
NEW QUESTION # 30
During stage 3, the project manager forecasts that the stage-level recycling tolerance will be exceeded. The project manager records the matter in the issue register and sends only an issue report to the project board.
Is this an appropriate application of the progress practice, and why?
Answer: D
Explanation:
The correct answer is D . In PRINCE2, an exception exists when it is forecast that an agreed tolerance will be exceeded. The critical point is that the breach does not have to have occurred already. Once the project manager forecasts that stage tolerance cannot be maintained, the matter exceeds the project manager's delegated authority and must be escalated to the project board.
An issue report may contain detailed analysis of an issue, and the issue register can record the underlying matter. However, neither replaces the specific progress-control mechanism required when stage tolerance is forecast to be exceeded. The project manager must produce an exception report , explaining the cause of the forecast deviation, its consequences, available options, and an appropriate recommendation. The project board can then decide whether to request an exception plan or take another authorized course of action.
Option A therefore understates the governance consequence of the tolerance breach. Option B incorrectly treats the matter solely as an off-specification; the decisive factor for progress control is that an authorized stage-level tolerance is forecast to be exceeded. Option C is incorrect because the immediate escalation is from the project manager to the project board, not automatically to the portfolio office.
PRINCE2 7 reference topics: Progress practice; stage tolerances; exception; exception report; escalation; management by exception.
NEW QUESTION # 31
During stage 1, the City Council purchasing team must prepare the contract that will govern BuildyBrick's later design and construction work. The project manager agrees with the purchasing team the products, time and cost for this work package.
Which practice is being applied through the 'controlling a stage' process?
Answer: C
Explanation:
The correct answer is C - Plans . PRINCE2 applies the plans practice throughout project delivery, including when individual work packages are defined and authorized. A work package establishes what products are to be delivered and the constraints and control arrangements governing their production.
In this scenario, the project manager agrees with the City Council purchasing team the products, time, and cost associated with preparing the contract. These are core planning elements. The work must be defined sufficiently so that the team understands what it is expected to produce, when it should be completed, what resources or expenditure are available, and the limits within which it is authorized to operate.
Option A, business case, concerns the project's continuing investment justification and does not principally govern the detailed definition of products, time, and cost for a delegated work package. Option B, organization, defines roles, responsibilities, relationships, and the project-management structure. Although the relationship between project manager and team manager is relevant, the information explicitly being agreed here concerns planning. Option D, quality, would focus on product specifications, quality methods, acceptance arrangements, and quality control rather than the overall product/time/cost definition.
The work package therefore demonstrates application of the plans practice within controlling a stage.
PRINCE2 7 reference topics: Plans practice; controlling a stage; work packages; products; estimates; time and cost; delegated planning and control.
NEW QUESTION # 32
A high-level requirement that the design should be consistent with its surroundings was recorded during
'starting up a project'. During initiation, the project manager works with Council members, residents, retailers and BuildyBrick to clarify the required design characteristics and define measurable acceptance criteria.
Which management product should be updated with this information?
Answer: D
Explanation:
The correct answer is A - Project product description . The project product description defines the project' s overall output and establishes the principal basis on which that output will ultimately be judged acceptable.
It includes the overall purpose, composition, quality expectations, acceptance criteria, and other characteristics necessary to determine whether the final project product is fit for its intended purpose.
The original statement that the design should be "consistent with its surroundings" is high level and inherently difficult to verify. During initiation, the project manager works with relevant stakeholders to translate that broad expectation into clearer design characteristics and measurable acceptance criteria . These details refine the definition of the overall project product and therefore belong in the project product description.
Option B is incorrect because a work package authorizes and controls specific work delegated to a team manager; it does not define the acceptance criteria for the entire project product. Option C, the product flow diagram, shows the sequence and dependencies involved in creating products rather than their acceptance requirements. Option D, the project plan, describes how and when the project's products will be delivered, but the overall acceptance definition belongs in the project product description.
This refinement also supports stakeholder alignment by turning an ambiguous requirement into objectively testable acceptance conditions.
PRINCE2 7 reference topics: Plans practice; project product description; quality expectations; acceptance criteria; starting up a project; initiating a project.
NEW QUESTION # 33
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