Free PRINCE2 PRINCE2-Practitioner Exam Dumps and PRINCE2-Practitioner Exam Questions

Question No: 21

MultipleChoice

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to cut costs, better manage suppliers’ performance and reduce the confusion caused by inadequate internal controls, outdated standards and outdated technology.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.

Which 2 statements should be recorded under the Reasons heading?

Options

AThe lack of up-to-date technology in MFH means a re-engineering of existing services will not necessarily deliver the performance improvements required.

BProviding re-engineered services in-house will remove the need to transfer staff to a service provider.

CThe Ministry of Food Hygiene (MFH) needs to deal with the increasing pressure to cut costs and better manage supplier's performance.

DRelocating staff to the selected service provider's premises will mean that no property transfer is required.

EThe inadequate controls, outdated standards and outdated technology must be addressed.

Question No: 22

MultipleChoice

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.

Which 2 statements should be recorded under the Business options heading?

Options

AThe re-engineering of selected business functions would not provide the required outcome.

BThe lack of up-to-date technology in MFH means a re-engineering of existing services will not necessarily deliver the performance improvements required.

CUse external consultants to provide guidance on the detailed design of the outsourced services.

DSet up a PRINCE2 project to deliver the outsourced services.

EReview a list of service providers to determine a short-list of possible service providers.
References:

Question No: 23

MultipleChoice

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.

Which 2 statements should be recorded under the Timescale heading?

Options

AThe contract with the selected service provider will be agreed during stage 3.

BThe expected benefits will be calculated over 10 years from completion of the project.

CIf more MFH divisions are added to the scope of the services to be outsourced, the project timescale will be extended and the realization of benefits will be delayed.

DThe expected benefits should start to be realized as soon as the outsourced services become operational at the end of stage 4.

EThe transfer of equipment and staff is estimated to take six weeks.

Question No: 24

MultipleChoice

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.

Which 2 statements should be recorded under the Expected benefits heading?

Options

AThe 10-year outsourcing contract, at current prices, will be worth 80m.

BOutsourcing would allow MFH to take advantage of the best services the outsourcing industry has to offer.

CThe total expected savings over 10 years, at current prices, is 20m.

DThe 10-year outsourcing contract will enable MFH to stabilize costs at agreed levels.

EThe confirmed cost of the Outsourcing project is 2.5m, but with considerable savings over 10 years.
References:

Question No: 25

MultipleChoice

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.

Which 2 statements should be recorded under the Expected dis-benefits heading?

Options

AAn investment of 2.5m is required.

BStaff morale will be negatively affected.

CThe project will take two years to deliver.

DStaff may lose the opportunity to work in Information Technology.

EMFH will lose direct control over the outsourced business functions.
References:

Question No: 26

MultipleChoice

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.

Which 2 statements should be recorded under the Major risks heading?

Options

ADue to market conditions a suitable service provider may not be found, possibly leading to premature closure of the project.

BOwing to employment contract changes staff may resist outsourcing, which would make it difficult to transfer staff to the selected service provider.

CMFH's operations may be reduced and the 1a-year contract may not achieve its estimated value of 80m, which would reduce the service provider's profit.

DThe initial estimates, taken from the feasibility study report, indicate that the project will take two years to complete, which means that the business problems would remain for this period.

EThe management stages recommended by the consultants may not be appropriate, resulting in confusion in planning.

Question No: 27

MultipleChoice

Which of the following principles describes this statement?

"xxx defines tolerances for each project objective to establish limits of delegated authority"

Options

AManage by stages

BFocus on products

CManage by exception

DLearn from experience

Question No: 28

MultipleChoice

The project is using PRINCE2's recommended risk management procedure. In the 'identify' step, a risk was recorded in the risk register: ''If the 'accredited classroom-based course' is delayed, there is a threat that work on the 'e-learning course' will be delayed, resulting in the 'accredited e-learning course' not being ready for the 'pilot courses'.''

In the 'implement' step, a risk response was decided: ''Work will start incrementally on the 'e-learning course' whenever a part of the 'classroom-based training materials' gains accreditation''.

Is this appropriate, and why?

Options

AYes, because delivering incrementally will reduce the impact of the threat.

BYes, because a risk response needs to be implemented for this major threat.

CNo, because risks responses should be identified as part of the 'plan' step.

DNo, because a risk action should be allocated to implement a response.

Question No: 29

MultipleChoice

The project is now in stage 2. The 'training venue specifications' will not be delivered to schedule and the stage is forecast to exceed its time tolerance. As a result, the project manager has agreed with the team manager that the 'training venue specifications' will be delivered in stage 3 instead of stage 2.

Is this an appropriate action, and why?

Options

AYes, because the project manager should recommend corrective actions required.

BYes, because moving the work enables stage 2 to be delivered within tolerance.

CNo, because the team manager should inform the project manager by raising an issue.

DNo, because the stage deviation should be referred to the project board for a decision.

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