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| Section | Objectives |
|---|---|
| People | - Effective communication - Leading successful teams - Leading successful change |
| PRINCE2 Project Management Processes | - Starting up a project - Managing product delivery - Controlling a stage - Managing a stage boundary - Initiating a project - Directing a project - Closing a project |
| Project Context and Tailoring | - Project scale and complexity - Digital and data management - Delivery methods and approaches - Tailoring PRINCE2 to the project context - Organizational context - Commercial context - Sustainability |
| PRINCE2 Project Management Practices | - Quality - Risk - Progress - Plans - Business case - Issues - Organizing |
| PRINCE2 Project Management Principles | - Focus on products - Define roles, responsibilities and relationships - Tailor to suit the project - Manage by stages - Learn from experience - Ensure continued business justification - Manage by exception |
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NEW QUESTION # 25
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 # 26
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: A
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 # 27
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: C
NEW QUESTION # 28
ISSUES
During stage 1, BuildyBrick was appointed by the procurement team manager as the main contractor for the project. The project is now in stage 3 and BuildyBrick is part way through the site preparation. Following an environmental survey report, BuildyBrick will have to delay the site clearance by several weeks to enable protected amphibians to be relocated. There are two options to deal with this issue. The first is to wait for BuildyBrick to clear the site, but this will take longer. The second is to hire an additional contractor to clear the site more quickly, but this will cost more. Both of these options can be completed within cost and time tolerances, but appointing an additional contractor is beyond the project manager's delegated authority.
Here are three actions related to the resolution of this issue.
Which role (A-E) should be responsible for each action?
Choose only ONE role for each action. Each role can be used once, more than once, or not at all.
Answer: C,D,E
Explanation:
The correct mapping is Action 1 - A; Action 2 - E; Action 3 - C .
For Action 1 , the appointment of an additional contractor exceeds the project manager's delegated authority.
Although both options remain within overall stage cost and time tolerances, the project manager cannot authorize a decision that falls outside their defined authority. The matter must therefore be referred to the appropriate project-board authority, with the project executive responsible for leading the decision.
For Action 2 , maintaining project records is part of the project manager's day-to-day management responsibility. Once a decision has been taken, the project manager should ensure that the issue record is updated with the authorized response and decision so that there is an accurate audit trail.
For Action 3 , the senior supplier represents those providing specialist resources and expertise to create the project's products. Confirming that appropriate supplier resources can be made available for additional site- clearance work consequently aligns with the supplier interest.
This question illustrates that issue management must operate within the project's governance and delegation arrangements. Remaining within tolerance does not automatically permit the project manager to take an action specifically outside their delegated authority.
PRINCE2 7 reference topics: Issues practice; delegated authority; issue report; issue register; project executive; project manager; senior supplier.
NEW QUESTION # 29
While the project mandate is being prepared, the Mayor asks the LOB Portfolio Director, acting at the business layer, to select and appoint a suitable project executive for LouisShopping.
Is this an appropriate application of the organization practice, and why?
Answer: C
Explanation:
The correct answer is B . PRINCE2 distinguishes the business layer from the project management layer. The business layer commissions projects, establishes the broader organizational context, and appoints an appropriate project executive who will represent the business interest and become ultimately accountable for the project's success within the project board.
The scenario explicitly states that the LOB Portfolio Director is acting at the business layer . Consequently, selecting and appointing an appropriate project executive is consistent with the responsibilities associated with that level of governance.
Option A is too broad. The appointment is not appropriate merely because the Mayor can delegate the activity to any senior stakeholder. The suitability arises because the Portfolio Director is acting as the relevant business-layer representative. Option C incorrectly assumes that the Mayor must personally make the appointment because of the project's civic significance; PRINCE2 does not impose such a requirement.
Option D similarly assigns the responsibility automatically to the Head of Portfolio Office, even though the scenario explicitly identifies the Portfolio Director as the relevant business-layer representative.
The key distinction is therefore between business-layer governance and project-level management. The project executive is appointed from the business layer and subsequently leads the project board.
PRINCE2 7 reference topics: Organization practice; business layer; project executive; commissioning a project; project board structure and accountability.
NEW QUESTION # 30
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