PRINCE2 – Practitioner Exam 1 PRINCE2 – Practitioner Exam 1 1 / 39 The Chief Executive Officer (CEO) of the record company requires the cost-benefit analysis of every project to be recorded in a document called a 'project rationale'. The executive is preparing the draft 'project rationale' as part of the pre-project phase. Which principle is being applied, and why? 'Continued business justification', because the justification for starting the project needs to be recorded in some form of a business case. 'Continued business justification', because it is the executive who drafts the outline business case at the beginning of a project. 'Learn from experience', because it is important to consider lessons from previous projects at the beginning of a new project. 'Learn from experience', because the project management team should learn from more experienced corporate management. 2 / 39 During the initiation stage, the Vice President stated that attendance at launch events held on Monday evenings is low, and on previous projects this had resulted in lower album sales. As a result, the launch event for this album will be held later in the week. Which principle is being applied, and why? 'Continued business justification', because there is sufficient reason to start this project 'Continued business justification', because the project's justification should remain unchanged. 'Learn from experience', because project teams should learn from what occurred on similar projects. 'Learn from experience', because the project should continue to learn from its own experiences. 3 / 39 Towards the end of stage 2, the project manager realized that not all of the ‘recorded sample songs' would be completed before the end of the stage. The project manager decided to move the remaining work to stage 3. This enabled the project manager to report that stage 2 was completed within time tolerance. Is this an appropriate application of the 'manage by stages' principle, and why? Yes, because moving the work to stage 3 avoided an exception situation in stage 2. Yes, because stage 3 is not the final stage so work can be moved from stage 2. No, because the project board should assess project viability on completion of work planned for stage 2. No, because work in stage 3 should start while work planned for stage 2 is being completed. 4 / 39 The record company's finance director has asked the executive to ensure that work packages agreed with team managers are signed off by the project board before the team starts the work. Is this an appropriate application of the 'manage by stages' principle? Yes, because the executive should ensure that the business investment provides value for money Yes, because the project should be divided into at least two management stages. No, because the finance director should sign off work packages within a stage. No, because the project manager should have authority to manage the project on a day-to-day basis 5 / 39 At the end of stage 2, the risk that production costs could exceed the sales for the music album is estimated to be high, as all of the cost tolerance for stage 2 has been used. As a result, the project manager has defined tight cost and time tolerances for the work packages to produce the 'artwork' and record the album during stage 3. Which principle is being applied, and why? 'Manage by stages', because cost tolerance should be set for each work package in a stage. Manage by stages', because team managers should be given authority before work can commence. 6 / 39 The Graphic Designer appointed by the external agency is the team manager responsible for creation of the 'artwork'. Before assigning a work package to the Graphic Designer, the project manager ensured that the 'artwork' product description attached to the work package had measurable and prioritized features defined in it. Is this an appropriate application of the 'focus on products' principle, and why? Yes, because it reduces disputes during handover, by agreeing what will be delivered. Yes, because the 'artwork' is a specialist product and the team members are responsible for its delivery. No, because as an external party, the graphics designer should not access the product description. No, because the 'artwork' product description is a management product, and not a specialist product. 7 / 39 The Music Album Project team has identified that another department within the company is producing a similar album of the same type of music. As it is only a small company, it cannot resource two similar album projects. Which principle should have been applied more effectively to avoid this situation, and why? Defined roles and responsibilities', because cross-functional projects involve people from different departments Defined roles and responsibilities', because a project management team structure enables effective communication between team members. Continued business justification', because linking projects to the organizational objectives ensures benefits are aligned to strategy. Continued business justification', because the justification for projects should be reviewed regularly throughout the project lifecycle. 8 / 39 It was found that one of the songs approved for the album had quality issues even though a quality inspection was carried out. It was therefore decided that a further objective check of recording quality should be conducted by the studio for the songs that are yet to be approved. Is this an appropriate application of the 'learn from experience' principle, and why? Yes, because lessons should be learnt and applied during a project Yes, because an objective check should accompany a quality inspection. No, because lessons should be learnt at the beginning of a project. No, because lessons are passed on at the end of a project. 9 / 39 Use the 'Additional Information' in the Scenario Booklet to answer this question. The project's products are being delivered by both external suppliers and record company staff. A member of the recording studio staff has been appointed as a senior supplier on the project board. It has also been decided that the Vice President of the record company, who is the executive for the project, will also be a senior supplier, representing the record company. Is this an appropriate application of the 'defined roles and responsibilities' principle, and why? Yes, because the Vice President should be able to represent both the business and supplier interests. Yes, because the Vice President is responsible for achieving the expected sales from the music album. No, because there should be one senior supplier representing the supplier interests on the project board. No, because the executive role cannot be shared and therefore cannot also act as the senior supplier. 10 / 39 The project manager has been recruited from a large, multi-national record company. To reduce the time spent on the initiation stage, the project manager decided to use PRINCE2 management approaches from projects at the previous company. Is this appropriate, and why? Yes, because the project manager is learning from experience on previous projects. Yes, because the project manager is improving business justification by reducing costs. No, because the previous company's project management approaches are unlikely to meet the needs of the project. No, because the project should focus on specialist products rather than project management approaches. 11 / 39 The executive has appointed the company's finance manager to provide business assurance, to monitor whether the album sales will exceed the production costs as the project progresses through each stage. How well does this apply the 'manage by exception' principle, and why? It applies it well, because a PRINCE2 project should structure the project into management stages to enable approval on a stage-by-stage basis. It applies it well, because the executive needs to be confident that controls and tolerances are being implemented effectively. It applies it poorly, because roles should be combined in a small project as long as there is no conflict of interest. It applies it poorly, because a PRINCE2 project should focus on delivering quality outputs rather than on the work required to deliver the products. 12 / 39 The record company is concerned that the songs to be included on the album should be agreed before work on the 'recorded album' starts. Therefore, the project board has decided that no changes to the list of songs will be accepted after the work package has been agreed. Which principle is being applied when making this decision, and why? 'Continued business justification', because it sets limits on delegated change authority 'Continued business justification', because it enables funds to be invested in worthwhile objectives. 'Focus on products', because this will ensure that the album is delivered on budget. 'Focus on products', because it should ensure the album will meet expectations. 13 / 39 During the 'initiating a project' process, the Vice President (VP) estimated that the Music Album Project should generate sales that exceed production costs. However, the sales estimate may be too high, and therefore the record company may not make a profit. The VP will undertake business assurance and the Marketing Manager, who is the senior user, will undertake user assurance. Is it appropriate for the VP to be responsible for assessing the effect of low sales on the business case, and why? Yes, because the VP should monitor whether the album sales are high enough Yes, because business assurance reviews risks and their impact on the business case. No, because the executive is ultimately accountable for the project's success. No, because the Marketing Manager should take responsibility for any risk to sales. 14 / 39 The Vice President (VP) was appointed as executive of the Music Album Project, which is now closing. During the project, extra funding was required and approved by the CEO. However, this funding was given on the condition that, when closing the project, the executive prepares an end project report showing the results of the project against its planned targets in the business case. Is this an appropriate condition, and why? Yes, because the VP secures project funding and is accountable for the business case for the duration of the project Yes, because the VP is responsible for assessing the results of the project against the expected benefits in the business case. No, because the project manager is responsible for preparing the end project report to assess project performance and results. No, because the project manager verifies that the project was justified against external events and project progress. 15 / 39 During the project, the CEO decides that the project should become a pilot project within a programme to establish new ways to launch new singers quickly into the market. Which action is appropriate, and why? Project and programme management roles should be integrated, to ensure there are clear lines of authority from top to bottom. Project and programme management roles should be integrated, to ensure there is continued business justification for the project. Additional project roles should be defined, to ensure the programme roles and responsibilities are mapped to the team roles Additional project roles should be defined, to ensure the business role represents the wider customer view at the delivery level. 16 / 39 During stage 1, when preparing the communication management approach, the project manager included the record company's Marketing Manager as a stakeholder. The Marketing Manager will be checking with focus groups that the music in the album has a market. Without a market for the album there will be no business justification for the project to continue. How well does this action apply the organization theme, and why? It applies it well, because stakeholders external to the customer organization can exert a powerful influence on the project's success. It applies it well, because the Marketing Manager will need to be aware of progress information about the stage and receive reports from the focus groups. It applies it poorly, because stakeholders are those groups or individuals who will be affected by the project's outputs, such as delivery channels. It applies it poorly, because the focus groups should be included in the communication management approach as stakeholders, not the Marketing Manager. 17 / 39 The product description for the 'launch event plan' was updated at the end of stage 3 to include more detailed quality criteria. The 'launch event plan' was created during stage 4. The 'launch event plan' was then approved by the project manager after checking that it met the defined quality criteria. Is this an appropriate way to manage quality, and why? Yes, because the project manager should ensure that the quality controls for the 'launch event plan' will meet the defined quality criteria. Yes, because the project manager should ensure that product descriptions are updated when planning the next stage. No, because it is the senior user who should confirm the customer quality expectations and acceptance criteria for the project. No, because it is the senior user who should provide resources to review and approve the 'launch event plan' according to the defined quality criteria. 18 / 39 The album will be recorded by an external supplier. The project manager is concerned that the record company will have no access to check the quality of the recorded songs before the album is completed. Therefore, the project manager has requested that the contract with the supplier includes a requirement to review the quality of the songs after each one is recorded. Is this appropriate, and why? Yes, because the customer should specify their rights of inspection as well as the quality expectations for a product Yes, because the senior supplier should approve the quality methods to be used to check the quality of the recorded songs. No, because the team manager should ensure that the recorded songs meet the quality criteria specified in the product description No, because there should be a shared understanding between the customer and the supplier of the quality levels required. 19 / 39 During stage 3, it was decided to change the design of the 'artwork' to attract attention and help promote sales. The project board agreed to pay for the change using the change budget. The project plan was later updated to show the amount of change budget still available to the project. Was it appropriate to update the project plan, and why? Yes, because the project board will use the project plan and project justification when deciding whether to carry out future changes or not. Yes, because the project board will have used the project plan and project justification when deciding whether to carry out this change or not. No, because the project plan provides a baseline against which the project board monitors project progress. No, because using the change budget for the change will not impact the project cost budget. 20 / 39 The project is in the initiation stage. In consultation with the senior user, the project manager has made some changes to the description of the final product 'album ready for launch'. The project manager's next task is to plan the project. Which action demonstrates the project manager's immediate priority, and why? Create a hierarchy of products for the 'album ready for launch', because it is necessary to understand the major products and their component products. Create a hierarchy of products for the 'album ready for launch', because the interdependencies between the component products need to be understood. Identify the product interdependencies between the 'recorded album' and the 'artwork', because this is necessary in order to decide on activities and resources Identify the product interdependencies between the 'recorded album' and the 'artwork', because this is necessary in order to explore their more detailed characteristics. 21 / 39 The singer has signed a contract with the record company and will sing at a large international festival on a Friday night. This may increase international sales of the album. However, the audience is usually bigger on a Saturday. The project manager has negotiated for the singer to perform on Saturday, rather than Friday. Has the project manager enhanced the opportunity to increase album sales, and why? Yes, because the singer now has the opportunity to appear at the festival. Yes, because performing on Saturday may have a greater impact on album sales. No, because the positive effect on sales is not guaranteed. No, because the risk response will increase the inherent risk. 22 / 39 The Marketing Director will analyze the opinions of focus groups to check that the album will be marketable and generate sufficient sales. At the end of the initiation stage, the following risk was recorded in the risk register: "There is a threat that the project will be no longer viable which would result in the project needing to be stopped." How well does this identify the risk, and why? It identifies it well, because the impact that the risk could have on the project and its viability is clearly understood. It identifies it well, because risks should be identified continuously throughout the project and recorded in the risk register It identifies it poorly, because the source of the risk has not been understood so the relevant risk responses cannot be selected. It identifies it poorly, because the effect of the risk has not been understood so the relevant risk responses cannot be selected. 23 / 39 The recording studio has carried out improvements and can now deliver recordings to a higher quality than specified in the product description for the 'recorded album'. The Recording Studio Manager has recorded the songs to the new improved standard, at no additional cost. This change has no other impact on the project. How should the project manager categorize this issue, and why? As a request for change, because the recording will be of better quality. As a request for change, because the product description will need to be updated As an off-specification, because the recording of the songs will not fulfil the criteria specified. As an off-specification, because a proposal to change a baseline has been received. 24 / 39 During stage 3, the project board grants a concession to permit the use of 'artwork' that does not fully meet the quality criteria. As a result, the project manager has updated the product description for the ‘artwork’. Is this action appropriate, and why? Yes, because the product description should be updated to reflect the revised quality criteria Yes, because a product description should be updated to show the status of a delivered product. No, because product descriptions are baselined documents and should not be changed. No, because project support should update product descriptions following a concession. 25 / 39 The work package for the 'launch event plan' is in progress and checkpoint reports are being produced every two weeks. The project manager has reviewed the issue register and is concerned about the number of issues related to this work package. Which action should the project manager take, and why? Increase the frequency of checkpoint reports to weekly, so that work package level exceptions are prevented. Increase the frequency of checkpoint reports to weekly, to increase the level of control over this work package Increase tolerances for the work package, so that there is increased permissible deviation and fewer issues will be raised Increase tolerances for the work package, so that they are the same as those for the stage to make reporting consistent. 26 / 39 The songs have been recorded and meet the minimum quality requirements. However, the team manager recommends that they are re-recorded as better quality songs may improve album sales. Rerecording will cause the stage to exceed its time tolerance. As a result, the project manager has raised an issue to the project board. Is this action appropriate, and why? Yes, because opportunities to improve business justification should be considered by the project board. Yes, because the stage would be in exception and an exception plan would be required No, because the project manager should reject the recommendation as the work package has been completed within the quality tolerance No, because the project manager should take corrective action to improve the quality of the recorded songs. 27 / 39 The record company wants to keep the project confidential in order to avoid another record company launching a similar album at the same time. During the 'starting up a project' process, the project manager discusses the project with colleagues who have experience of keeping a project confidential. Their experiences are used to develop the draft project approach. Is this appropriate, and why? Yes, because the risk of another company launching a similar album should be documented in the project approach. Yes, because the requirement to keep the project confidential is relevant when deciding the project approach. No, because lessons related to communications are relevant for developing the communication management approach. No, because lessons captured from previous experiences on similar projects should be recorded in the lessons log. 28 / 39 The project is approaching the end of the initiation stage. The project manager has requested that the project board meet to 'authorize the project'. The project manager has prepared a set of slides showing the project controls, the business case and the scope of the project, to present to the project board. How well is the 'authorize the project' activity being carried out? It is being carried out well, because the members of the project board should meet in person to approve the project initiation documentation. It is being carried out well, because the project initiation documentation can be authorized by the project board in any format, provided the decision is traceable It is being carried out poorly, because applying the principle of 'manage by exception' removes the need for meetings. It is being carried out poorly, because the project board should authorize the next stage plan as well as the project initiation documentation. 29 / 39 At the beginning of stage 3, the singer suggested that a video could be taken during the recording of the songs and used at the launch of the album to promote sales. This change can be accommodated in stage 3 and has been approved. The recording studio has agreed to record the video. As a result, the project manager has created a product description for the product 'recorded video', and amended the work package for the studio. Are the project manager's actions appropriate, and why? Yes, because the recording studio work package should define the work for the 'recorded album' and 'recorded video' Yes, because the product description for the 'recorded video' is needed to justify the request for change No, because the project manager should create product descriptions when a stage plan is prepared. No, because the project manager should update the stage plan when taking corrective action to implement the change. 30 / 39 The Graphic Designer contracted to create the 'artwork' in stage 3 will be following an agile approach. The project manager is acting as the team manager for the work package and has produced a team plan. Why is the use of a team plan appropriate? Because the team plan will show whether the 'artwork' can be completed within the agile timebox. Because the project manager should produce a team plan when they act as a team manager. Because a team plan is required for an external work package. Because a team plan is required when following an agile approach. 31 / 39 The 'artwork' will be delivered by a graphic design company using an agile delivery approach. The work package is being negotiated before work on the 'artwork' commences. Who should approve the work package for the 'artwork'? Project assurance Project manager Team manager Executive 32 / 39 The Music Album Project will be part of a programme for the record company to sell a different type of music. The project is now in the 'initiating a project' process and the project manager has requested support from the programme office when producing the risk management approach. Which statement explains why this is an appropriate way to produce the risk management approach? Because the project manager should produce the risk management approach during the 'initiating a project' process. Because the risk management approach should define how the risk register will be managed and maintained. Because in a simple project the risk management approach should be combined with the programme's risk management strategy. Because the programme office typically provides assistance to ensure that the project complies with programme standards. 33 / 39 The Music Album Project will be part of a programme for the record company to sell a different type of music. As a result, the team manager for the 'launch event plan' work package has been asked to provide weekly checkpoint reports directly to the programme manager. This will allow the programme manager to monitor the launch of the music. Is it appropriate for the team manager to send the programme manager checkpoint reports, and why? Yes, because checkpoint reports should be tailored to suit the needs of the programme manager. Yes, because checkpoint reports should be produced at the frequency defined in the work package. No, because the team manager should advise the project manager when the artwork is complete. No, because the 'managing product delivery' process interfaces with the 'controlling a stage' process. 34 / 39 Stage 3 is in exception. The project board has requested an exception plan from the project manager, who has triggered the 'managing a stage boundary' process as a result. Which action is OPTIONAL? Prepare an end stage report Revise the business case Update the benefits management approach Revise the project plan 35 / 39 A stage-level exception was identified while recording the sample songs. As a result, the project board instructed the project manager to prematurely close the stage and create a plan to combine the remainder of stage 2 together with the production of the 'recorded album' and the 'artwork'. Which activity should the project manager carry out in order to produce the combined plan? Plan the next management stage Prepare premature closure Produce an exception plan Create the project plan 36 / 39 During stage 2, it is found that the graphics design company is in financial difficulty. As a result, another supplier is selected to produce the 'artwork' and their account manager is asked to join the project board as a senior supplier with immediate effect. Is this appropriate, and why? Yes, because PRINCE2 is flexible in order to avoid unnecessary delays in implementing decisions. Yes, because changing suppliers is a big decision and should be treated as an exception. No, because there should be one senior supplier representing supplier interests on the project board. No, because changes to roles should happen at a stage boundary unless there is an exception. 37 / 39 The Music Album Project has delivered the 'album ready for launch'. When closing the project, the project manager considers that the Recording Studio Manager has been an excellent team manager. As a result, the project manager prepares a recommendation that the Recording Studio Manager should be contracted to record future albums. In which activity of the 'closing a project' process should this recommendation be submitted for approval? Prepare planned closure Hand over products Evaluate the project Recommend project closure 38 / 39 The project is now being closed. Which action should the project manager take during the 'evaluate the project' activity? Confirm acceptance of the 'artwork' by the Marketing Team of the record company. Identify how many errors were found after the 'artwork' had passed quality inspection. Confirm that the Marketing Team has the resources to promote the 'album ready for launch' Request a product status account for the 'album ready for launch' from project support. 39 / 39 During the initiation stage, a risk was recorded that sales of the singer's album might impact sales of other albums produced by the record company. Therefore, when this risk was reviewed during project closure, a follow-on action recommendation was made for the record company's audit department to report on the impact during post-project benefit reviews. Is this appropriate, and why? Yes, because the project cannot be closed until the impact from sales are measured. Yes, because the follow-on action will enable this risk to be closed in the risk register. No, because a follow-on action should be addressed to an individual rather than a department. No, because the benefits management approach should include post-project activities. Your score is 0% For more Sample papers, refer the links below: PRINCE2-Practitioner Exam 2 PRINCE2-Practitioner Exam 3 PRINCE2-Practitioner Scenario Based Sample
