PRINCE2-Exams PRINCE2-Practitioner Free Practice Questions

NEW QUESTION 1

Scenario:
Techniques, processes and procedures
1. Any threat that may result in a loss of MFH data must be escalated immediately.
Joint agreements
2. Work is to start at the beginning of week 2 (Stage 4).
3. The project will take two years to complete, at an estimated cost of £2.5m. Tolerances
4. None.
Constraints
5. MFH staff must not be involved in any heavy lifting during the removal of existing IT equipment.
6. Installation work must take place during MFH normal working hours. 7. +£10,000 / -£25,000.
Reporting arrangements
8. Highlight Report every Monday by 10.00 am.
9. The report must contain a summary of all products worked on during the previous week.
10. Project Manager must be notified of any issues immediately by telephone.
Problem handling and escalation
11. Impact analysis of all issues must be completed within 24 hours.
Extracts or references
12. The Stage Plan for stage 4 is available from Project Support.
Approval method
13. Project Assurance will review the completed Work Package and confirm completion.
Which 2 statements apply to either the Development Interfaces or Operations and maintenance interfaces sections?

• A. Delete entry 2 because this interface will be contained in the Communication Management Strategy.
• B. Delete entry 3 because this interface will be contained in the project control section of the Project Initiation Documentation.
• C. Amend entry 4 to 'The transferred products relating to the services provided by the Facilities Division'.
• D. Add 'Project Board, with responsibility for communicating progress to corporate management' to
• E. Operations and maintenance Interfaces.
• F. Add 'Facilities Team Manager, with responsibility for the transfer of services provided by the Facilities Division' to Development Interfaces.

Answer: DF

NEW QUESTION 2

Scenario:
The Ministry of Food Hygiene (MFH) has a quality management system which contains a document control process to manage all documentation requirements. The document control process was created by the MFH Quality Manager, who now maintains all of MFH's documents and performs an organization-wide configuration management role. The MFH Quality Manager will administer the configuration management procedure for the Restructuring project since this must comply with the MFH document control process.
What additional risk will this place on the project?

• A. None because risks associated with the centralization and rationalization of the Facilities Division will be managed by another project.
• B. These changes will delay stage 3 by three weeks.
• C. There is only £70k left in the project change budget.
• D. The reduced value of the contracted services required by the Outsourcing project may result in an insufficient number of proposals being received.

Answer: A

NEW QUESTION 3

Scenario
A photographer from Portraits Ltd, a professional photographic company, has taken on the role of Team Manager after taking some time to understand the requirements of the project. A contract for their services has been set up and is being monitored by the Purchasing Manager and a Work Package has been agreed. This contract specifies that the photographer must arrange a meeting with the Engineering Manager to establish a schedule for the photo sessions to minimize the impact on the Engineering staff. This meeting should have occurred by now.
The Engineering Manager was made aware of this requirement but when asked he reported that he has received no communication from the photographer. The Project Manager has tried to call the photographer and has had no response. The Project Manager believes there is a risk that Portraits Ltd are overbooking work and prioritizing other clients' work. If Portraits ltd do not deliver on schedule the project will be delayed and the expected benefits will be reduced.
The contract is to be reviewed and Portraits Ltd reminded of their agreement.
The project is now in stage 2. The Project Manager has heard about the possibility of a competitor also producing a calendar to be delivered earlier than the target date for this project. There is a threat that the early release of a competitor's calendar may weaken the impact of the MNO Manufacturing Company calendar, thereby reducing the anticipated benefits of the Calendar project.
Which 2 statements should be recorded under the Timing of risk management activities heading?

• A. During stage 4, the selected service provider will manage any risks to their Business Case and report these to the Project Manager on a weekly basis.
• B. The Project Board should hold monthly meetings to review project progress.
• C. When closing a project, the follow-on action recommendations should be updated with any risks relating to the realization of benefits after the outsourced services go live.
• D. Any new risks identified during product development should be reported to the Project Manager by the Team Manager when delivering the completed Work Package.
• E. When authorizing a stage, the Project Board will check that the exposure to risk is still acceptable.

Answer: BE

NEW QUESTION 4

Additional Information
Extract from the Communication Management Strategy.
The project information in the table below is true, but it may not be recorded under the correct heading or be in the correct document.

Using the Project Scenario, select the appropriate response to each of the following 5 questions which have been raised by the Project Board.
The project is now at the end of the initiation stage. Having decided that the Calendar project is a relatively simple project, the Project Manager combined the Starting Up a Project process and the Initiating a Project process. No Project Brief has been produced. Instead the Project Manager used the project mandate to produce a simple Project Initiation Documentation (PlO). The PlO includes the Business Case, a product checklist and several Product Descriptions, Including the Project Product Description. Short sections are also included for each of the strategies and the controls to be applied. The Project Manager has elected to use the Daily Log to record all risks, issues, lessons and quality - results.
After the initiation stage there will be two further stages during which a small number of Work Packages will be authorized. While these are being managed, the Project Manager will hold regular checkpoints, which will support the production of weekly Highlight Reports to the Project Board.
This question provides a number of changes which may or may not be required to the Extract from the Communication Management Strategy provided in the additional information.
Which statement applies to the Communication procedure section?

• A. No change to entry 2 because this is a sufficient description of the process required.
• B. Amend entry 2 to include MNO Manufacturing Company standards for both internal and external company communications.
• C. Delete entry 2 because only variations from the MNO Manufacturing Company standards should be recorded here.

Answer: B

NEW QUESTION 5

Extract from the Project Product Description (with errors)

Which 2 statements apply to the Development skills required section?

• A. Move entry 13 to Composition because the appointment of the photographer is within the scope of this project.
• B. Move entry 13 to Derivation because this is a source of information for this project.
• C. Delete entry 14 because this skill is NOT required within this project.
• D. Delete entry 15 because this skill is NOT required within this project.
• E. Add 'Knowledge of Data Protection Act.

Answer: DE

NEW QUESTION 6
HOTSPOT
Scenario
A central government department, the Ministry of Food Hygiene (MFH), faces increasing pressure to cut costs, better manage suppliers’ performance and reduce the confusion
caused by inadequate internal controls, outdated standards and outdated technology. External consultants were employed to conduct a feasibility study to identify options to address the problems, and the likely costs and benefits. The following options were considered:
Do nothing.
Re-engineer selected business functions. Outsource selected business functions.
The feasibility study concluded that there was a case for outsourcing the MFH Information Technology
Division and the Facilities Division (maintenance of buildings and grounds). The recommendations were:
One service provider should be contracted to provide the services currently provided by the
Information Technology Division and the Facilities Division.
A 10-year service contract should be agreed with the selected service provider.
The feasibility study developed high-level designs of the current organization, processes, systems and
operating models, plus an outline Business Case for the required project. The external consultants
also made the following recommendations for the management of the project:
Use PRINCE2.
Set up the project with 4 management stages:
Stage 1. Standard PRINCE2 initiation activities.
Stage 2. Create detailed designs (future organization, processes, systems and operating models) and the service level agreement between MFH and the future service
provider.
Stage 3. Request and evaluate proposals, select service provider and agree contract. Stage 4. Transfer equipment and staff, transfer responsibility for service provision and run trial period.
Initial estimates indicated that the project would cost £2.5m and take two years to complete.
MFH senior management agreed that there was a case for outsourcing, and accepted the recommendations as a basis for the project. There is an expected saving of £20m over 10 years.
The Outsourcing project has completed the Starting up a Project process and is now in the initiation stage. Because of the strategic importance of the project, the MFH Chief Executive Officer has taken the role of Executive. A PRINCE2-experienced Project Manager has been appointed from within MFH. Staff within the business functions being outsourced will work with the external consultants who conducted the feasibility study to define the detailed designs.
Lines 1 to 6 in the table below consist of an assertion statement and a reason statement. For each line identify the appropriate option, from options A to E, that applies. Each option can be used once, more than once or not at all.

• A. Mastered
• B. Not Mastered

Answer: A

Explanation:

NEW QUESTION 7

Two weeks after starting work the Team Manager noticed that each completed product had exceeded its estimated effort by around 10%. If this trend continues the Work Package will exceed its agreed cost tolerance of 5%.
Which 2 actions should the Team Manager take in response to this situation?

• A. Check the status of the products currently being worked on and analyze the effort expended, to determine if the trend is continuing.
• B. Update the Team Plan by increasing all future work estimates by 10%.
• C. Amend the Work Package and ensure that the revised targets are met.
• D. Escalate the situation in the next Checkpoint Report.
• E. Raise an issue that costs will exceed tolerance if the current trend continues.

Answer: AE

NEW QUESTION 8

Which of the following activities is NOT an action of preparing for planned closure?

• A. Update the project plan with actual
• B. Update the Project Management Team
• C. Request a product status account
• D. Confirm project has delivered what is defined in Project Product Description

Answer: B

NEW QUESTION 9

Additional Information
Extract from the Communication Management Strategy.
The project information in the table below is true, but it may not be recorded under the correct heading or be in the correct document.

Using the Project Scenario, select the appropriate response to each of the following 5 questions which have been raised by the Project Board.
The project is now at the end of the initiation stage. Having decided that the Calendar project is a relatively simple project, the Project Manager combined the Starting Up a Project process and the Initiating a Project process. No Project Brief has been produced. Instead the Project Manager used the project mandate to produce a simple Project Initiation Documentation (PlO). The PlO includes the Business Case, a product checklist and several Product Descriptions, Including the Project Product Description. Short sections are also included for each of the strategies and the controls to be applied. The Project Manager has elected to use the Daily Log to record all risks, issues. lessons and quality - results.
After the initiation stage there will be two further stages during which a small number of Work Packages will be authorized. While these are being managed, the Project Manager will hold regular checkpoints, which will support the production of weekly Highlight Reports to the Project Board.
There is no project schedule in the Project Initiation Documentation. How can project progress be tracked without a schedule to track against?

• A. This is an error as a Gantt chart or some form of time line, where actuals will be recorded and tracked against the planned schedule of delivery, is mandatory.
• B. Progress can be recorded and tracked using the product checklist, with the planned and actual quality management activities captured in the Daily Log.
• C. With a clear end date of 30 November, and a small number of Work Packages, the Project Board should track project progress using individual Team Plans.

Answer: B

NEW QUESTION 10

Which activity is responsible for updating the stage plan with actual during Controlling a
Stage?

• A. Review the stage status
• B. Review work package status
• C. Report Highlights
• D. Take corrective action

Answer: C

NEW QUESTION 11

Additional Information
Extract from the Communication Management Strategy.
The project information in the table below is true, but it may not be recorded under the correct heading or be in the correct document.

Using the Project Scenario, select the appropriate response to each of the following 5 questions which have been raised by the Project Board.
The project is now at the end of the initiation stage. Having decided that the Calendar project is a relatively simple project, the Project Manager combined the Starting Up a Project process and the Initiating a Project process. No Project Brief has been produced. Instead the Project Manager used the project mandate to produce a simple Project Initiation Documentation (PID). The PID includes the Business Case, a product checklist and several Product Descriptions, Including the Project Product Description. Short sections are also included for each of the strategies and the controls to be applied. The Project Manager has elected to use the Daily Log to record all risks, issues, lessons and quality - results.
After the initiation stage there will be two further stages during which a small number of Work Packages will be authorized. While these are being managed, the Project Manager will hold regular checkpoints, which will support the production of weekly Highlight Reports to the Project Board.
This question provides a number of changes which may or may not be required to the Extract from the Communication Management Strategy provided in the additional information.
Which statement applies to the Information needs for each interested party section?

• A. Delete entry 13 because the activity to provide the weekly updates should be scheduled in the relevant Stage Plan.
• B. Move entry 13 to Tools and techniques because it describes the method to be used to communicate to the individual producing the staff newsletter.
• C. Delete entry 14 because this relates to the development of a particular product and should be recorded under Development interfaces within the relevant Work Package.

Answer: C

NEW QUESTION 12

Additional Information
Chief Executive Officer (CEO): He started the company 25 years ago and knows his job very well. He injured his leg two years ago which has restricted his visits to the engineering area. As CEO he has an overall perspective of the business strategic requirements and the authority to commit resources as required.
Marketing Director: She has been with the company for three years, following a successful career with a publicity company. She has the ability to represent the needs of the business, particularly as this is a marketing project. She has the authority to commit the annual business marketing budget, from which the project will be funded, as she sees appropriate. She will be responsible for monitoring the expected benefits of the calendar, in particular the improvement of the company's image.
Engineering Manager: He has been responsible for many engineering innovations in the company and is still as keen and energetic as the day he started. VVhilst he will not be part of the project team, his staff will feature in the photos for the promotional calendar.
Central Records: This group of five staff looks after all company records and document control. They now maintain all project files.
Bright Lights: This is the local office supplies company. It supplies all the stationery and office equipment needs of the company and will supply the stationery for this project.
Portraits ltd: This is a professional photographic company with a number of excellent photographers and a history of successful work. This company has been selected to take the photos for the company calendar. It has yet be decided which of the photographers to use.
Which 2 statements explain why the Sales Manager should be appointed as User Assurance for this project?

• A. He joined the company last year with huge enthusiasm and is keen to increase sales.
• B. He can provide an evaluation of the potential impact the calendar will have on sales.
• C. He is able to advise on suitable stakeholder engagement of current and prospective customers.
• D. He would like to move into the Marketing department in the future and sees this as an opportunity to work closely with the Marketing Director.
• E. He can resolve any conflict in requirements between the Sales department and the Marketing department.

Answer: BC

NEW QUESTION 13

Scenario
Additional Information
During the initiation stage the Project Manager met with the Marketing Director to find out more about the requirements of the promotional calendar and recorded the following notes:
There has been a reduction in the order numbers at the MNO Manufacturing due in part to the increased marketing activities of its competitors. 10% of customers have not re-ordered in this financial year and staff morale is poor. A number of skilled staff have left as a result and replacement staff have not been recruited due to the reduced operation. If the project is successful, a recruitment campaign will be required to fill the existing staff vacancies and there may be a requirement for additional staff. Operational costs are likely to increase because skilled staff are expensive and difficult to find.
In financial terms, there were a total of 1,500 orders in the last financial year, each with an average profit of £2k. The Marketing department believes that sending a promotional calendar to our current and prospective customers would increase orders by at least 10% with a minimum of 10 further orders from the list of prospective customers within 12 months from the date of distribution.
The Marketing Director will be funding the project from the business marketing budget. She believes that the effect of a good company image portrayed by a successful calendar would last into a second year. She has forecast the same increase in orders for a second year and predicts that the annual employee satisfaction survey will show a measurable improvement in staff morale.
A number of alternatives were explored, including:
✑ 20% discount for all repeat customers - not cost-effective and very short term
✑ A promotional calendar as a free Christmas gift - would target current and prospective customers and the benefits would last into a second year
✑ A series of television and press advertisements· was too expensive
✑ A direct mail shot to all customers - benefit would be short term
✑ Creation of an internet website - would not suit all customers
The calendar is seen as the favored option, as long as the company's competitors do not increase their marketing activity. Whilst the Marketing department wants a very high quality, glossy product, the project management team must be aware of the cost this will incur.
Which 2 statements should be recorded under the Expected benefits heading?

• A. Increase orders by at least 10% with a minimum of 10 further orders from the list of prospective customers within 12 months.
• B. It will be similar to calendars sent out in previous years
• C. The Marketing department believes that the benefits of a good company image, as portrayed by a successful calendar, will last into a second year and bring the same increase in orders.
• D. The calendar will contain photos of both staff and company products.
• E. The Marketing department want a very high quality, glossy product as they believe this will be more appealing to customers.

Answer: AC

NEW QUESTION 14

Additional Information
Extract from the Communication Management Strategy.
The project information in the table below is true, but it may not be recorded under the correct heading or be in the correct document.

Using the Project Scenario, select the appropriate response to each of the following 5 questions which have been raised by the Project Board.
The project is now at the end of the initiation stage. Having decided that the Calendar project is a relatively simple project, the Project Manager combined the Starting Up a Project process and the Initiating a Project process. No Project Brief has been produced. Instead the Project Manager used the project mandate to produce a simple Project Initiation Documentation (PlO). The PlO includes the Business Case, a product checklist and several Product Descriptions, Including the Project Product Description. Short sections are also included for each of the strategies and the controls to be applied. The Project Manager has elected to use the Daily Log to record all risks, issues, lessons and quality - results.
After the initiation stage there will be two further stages during which a small number of Work Packages will be authorized. While these are being managed, the Project Manager will hold regular checkpoints, which will support the production of weekly Highlight Reports to the Project Board.
No Benefits Review Plan has been developed. Where should the schedule of benefit reviews be recorded?

• A. As deliverables of the project, all benefit reviews should be scheduled and documented in the Project Plan during initiation.
• B. Small projects do not require a schedule of benefit reviews as only one review is required towards the end of the project and this should be documented within the Business Case.
• C. Benefit reviews should be planned and recorded in the simple PID.

Answer: C

NEW QUESTION 15

Which of the following statements would NOT be included in the Project Product Description?

• A. Purpose of the product
• B. Composition
• C. Project level tolerances
• D. Quality criteria

Answer: D

NEW QUESTION 16

Extract from the Project Product Description (with errors)

Which 2 statements apply to the Customer's quality expectations section?

• A. Delete entry 16 because this should be shown on the Product Description for the photos.
• B. Delete entry 17 because this is beyond the scope of this project.
• C. Delete entry 18 because standards should NOT be shown here.
• D. Delete entry 19 because this should appear in the Product Description for the calendar and not the Project Product Description.
• E. Delete entry 20 because this is an expected benefit and should be recorded in the Business Case.

Answer: BE

NEW QUESTION 17

Who is responsible for confirming stage and project progress against agreed tolerances?

• A. Project Support
• B. Executive
• C. Project Assurance
• D. Project Manager

Answer: C

NEW QUESTION 18

Project Scenario
Calendar Project (Note: The companies and people within the scenario are fictional.)
There has been a reduction in fie number of orders at the MNO Manufacturing Company due in part to the increased marketing activities of its competitors. To help counter this, the company has decided to create a promotional calendar for next year for all its current and prospective customers. The end product of this project will be a prepared calendar pack, ready for printing. The design of the calendar will be similar to one sent out previously, and must reflect the company image as described in the existing corporate branding standards. Another project is currently producing a new company logo when is to be printed on each page of the promotional calendar. The prepared calendar pack will consist of:
✑ Design for each month - correctly showing at public holidays and new company logo
✑ Selected photographs- 12 professionally-produced photographs, showing different
members of staff
✑ Selected paper and selected envelope - for printing and mailing the calendar
✑ Chosen label design - a competition to design a label will be held as part of this project
✑ List of customers - names and addresses of customers to whom the calendar will be sent.
The project is currently in initiation and will have two further stages:
Stage 2 will include tie activities to:
✑ Create the customer fast using information from the Accounts and Marketing departments
✑ Confirm compliance with the Data Protection Legislation
✑ Create a design for each month - this will be done by the internal creative team
✑ Select and appoint a professional photographer
✑ Gather photograph design ideas from previous project and agree photographic session schedule
✑ Prepare a production cost forecast
✑ Select paper and envelope.
Stage 3 will include the activities to:
✑ Produce and select tie professionally-taken photographs
✑ Hold the label design competition and choose the label design
✑ Assemble the prepared calendar pack.
A production cost forecast, based on the options and costs for the paper, envelope, printing and marketing of the calendar is to be produced in stage 2. However, the actual production and distribution of the calendars is not within the scope of the project. The product cost forecast will be reviewed by the Project Board to determine whether tie project should continue.
It is now 05 October and the prepared calendar pack must be delivered to the print
company by 30 November, to enable printing and distribution of the calendar in time for Christmas. The cost of the activities to develop the specialist products and the cost of the project management activities are estimated to be £20,000. There is a project time tolerance of +1 week /-2 weeks and a project cost tolerance of +£6,000 / -£6,000. A change budget of £500 has been allocated but there is no risk budget.
Whilst identifying the mailing costs for the calendars the Project Manager was surprised to find the costs could vary considerably depending on the size of the package and the delivery service used. For the purpose of this project, the Project Manager has selected an appropriate service but feels that a corporate standard for postage would have reduced the time and effort invested. It could reduce the company's overheads by up to £20k per year. How should the Project Manager record this observation within the project?

• A. Produce a project mandate, outlining the potential savings to be achieved by the introduction of a corporate standard.
• B. Make a note of the observation in the Daily Log to be transferred to a Benefits Review Plan at the end of the project.
• C. Record the observation in an Exception Report to the Project Board.
• D. Make an entry in the Lessons Log for future consideration by corporate management.

Answer: D

NEW QUESTION 19

If the Project Board are too busy to authorize all change requests themselves they can appoint?

• A. A Change Authority
• B. A Change Board
• C. A Change Committee
• D. A Change Budget

Answer: C

NEW QUESTION 20
HOTSPOT
The Calendar project was delivered as originally planned, and Is now preparing for planned closure.
Lines 1 to 6 in the table below consist of an assertion statement and a reason statement. For each line identify the appropriate option, from options A to E, that applies. Each option can be used once, more than once or not at all.

• A. Mastered
• B. Not Mastered

Answer: A

Explanation:

NEW QUESTION 21
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