2021 Valid PRINCE2-Practitioner Exam Updates - 2021 Study Guide
PRINCE2-Practitioner Certification - The Ultimate Guide [Updated 2021]
Who should take the PRINCE2-Practitioner Certified Exam
This certification is aimed at project managers, aspiring project managers, and anyone who manages projects. It is also relevant to other key staff involved in the design, development, and delivery of projects, including Project Board members (e.g., Senior Responsible Owners), Team Managers (e.g., Product Delivery Managers), Project Assurance (e.g., Business Change Analysts), Project Support (e.g. Project and Program Office personnel) and operational line managers/staff.
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NEW QUESTION 135
Which principle is central to the quality theme and provides explicit understanding of what the project will create?
- A. Focus on products
- B. Manage by stages
- C. Learn from experience
- D. Manage by exception
Answer: A
NEW QUESTION 136
There are four steps in the Risk Management procedure, what are they?
- A. Identify, Assess, Plan, Implement
- B. Identify, Evaluate, Resource, Implement
- C. Identify, Assess, Resource, Implement
- D. Identify, Evaluate, Plan, Implement
Answer: A
NEW QUESTION 137
Scenario
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 to 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 is able to advise on suitable stakeholder engagement of current and prospective customers.
- B. He can resolve any conflict in requirements between the Sales department and the Marketing department.
- C. 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.
- D. He joined the company last year with huge enthusiasm and is keen to increase sales.
- E. He can provide an evaluation of the potential impact the calendar will have on sales.
Answer: A,E
NEW QUESTION 138
When updating the project plan as part of Managing a stage boundary, what else might be updated?
- A. Business Case
- B. Project Initiation Documentation
- C. Project Management team
- D. Exception Plan
Answer: D
NEW QUESTION 139
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.
Using the Project Scenario and the additional Information provided for this question In the Scenario Booklet, answer the following question.
Which 2 statements should be recorded under the Business options heading?
- A. Use a professional photographer to create the photographs for the calendar.
- B. Do nothing.
- C. Create the photographs for the calendar internally.
- D. Outsource the creation of the calendar to a professional marketing company.
- E. Produce a promotional calendar as a free Christmas gift to current and prospective customers.
Answer: B,E
NEW QUESTION 140
Additional Information
Further information on some resources who could be involved in the project:
Outcome Account Manager: He represents Outcome which is a recruitment agency that provides specialist outsourcing resources. Outcome provided the consultants who carried out the feasibility study and the same consultants will be providing support and guidance to the Information Technology and Facilities teams during the project.
Director of Finance Division: She was transferred from the Information Technology Division 12 months ago. She is responsible for ensuring a cost-conscious approach is adopted in all operational and project activities across the Ministry of Food Hygiene.
Hardware Manager: Reports to the Director of Information Technology. He provides computer hardware to all business functions but has little awareness of the needs of his colleagues working in software.
Payroll Manager: Reports to the Director of Finance. He is a very experienced and efficient qualified accountant who has much of the responsibility of running the Finance Division on behalf of the Director of Finance. He has been involved in drafting the Ministry's business strategy and assisting in a full business risk assessment. He also drafted the corporate Business Case standards.
Which 2 alternative actions apply to the proposed Senior Supplier for this project?
- A. Replace with 'Director of Facilities' because he supports the initiative and has many ideas about how to improve the service.
- B. Add 'Director of Facilities' because he is responsible for the design of the future organization, processes, systems and operation models for Facilities.
- C. Remove because she only represents the Information Technology Division.
- D. Retain because she is responsible for the design of the future Information Technology organization and working practices.
- E. Add 'Hardware Manager' because he provides computer hardware to all business functions and will be impacted by the outcome.
Answer: B,D
NEW QUESTION 141
Which 2 statements should be recorded under the Costs heading?
- A. 10 further orders with an average profit of £2k will deliver a benefit of £20k in the first year.
- B. The project will be funded from the business marketing budget
- C. Project costs are estimated to be a total of £26.5k.
- D. The new company logo is estimated to cost £4k.
- E. The MNO marketing budget this year is £120k.
Answer: B,C
NEW QUESTION 142
ABC Company has decided to include the Health and Safety Training Project in a programme to support their strategy to deliver globally. The programme team has provided the detailed business justification and, as a result, the project board has decided that the business case will not need refining further during the
'initiating a project' process.
Is this an appropriate action for the project board, and why?
- A. Yes, because when the project is part of a programme, the programme team provides the business case.
- B. No, because the programme team cannot constrain the project manager's choices.
- C. No, because each project in the programme will need a revised business case.
- D. Yes, because the project board are able to use the business case provided by the programme.
Answer: D
NEW QUESTION 143
Scenario
Extract from the Project Product Description (with errors)
Which 2 statements apply to the Acceptance criteria section?
- A. Amend entry 21 to 'Appearance - 12 photos each showing different members of staff.
- B. Move entry 23 to Derivation because the Data Protection Act already exists.
- C. Delete entry 22 because the development of the new company logo is not within the scope of the Calendar project.
- D. Move entry 21 to Composition because the photos are part of the final product.
- E. Delete entry 24 because this is NOT a suitable acceptance criteria for this project.
Answer: A,C
NEW QUESTION 144
Which is a correctly defined acceptance criterion for the transferred staff?
- A. No staff are to be left behind.
- B. Staff should be transferred as soon as possible.
- C. All legal requirements are adhered to for the transfer of staff.
- D. Retained staff should be of reasonable competence to maintain the SLA.
Answer: C
NEW QUESTION 145
Which of the following statements is TRUE with regard to expected benefits?
- A. They cannot be assigned
- B. They don't need to follow corporate objectives
- C. Tolerances cannot be set against expected benefits
- D. They should be measurable
Answer: D
NEW QUESTION 146
The project is at the end of stage 4. The project manager has changed the benefits management approach. It now includes all the activities necessary to measure the increased revenue.
Who should approve this update?
- A. Project manager
- B. Project board
- C. Corporate management
- D. Project assurance
Answer: B
NEW QUESTION 147
Project Scenario - Health and Safety Training Project:
ABC Company is a well-established training company that uses a standard model to develop training materials and deliver courses to customers.
ABC Company has commissioned a project in response to recent changes in government legislation relating to health and safety on construction sites. The project will deliver "capability to provide health and safety training", including the materials needed for classroom-based training and e-learning. The expected benefits for construction companies include a reduction in lost days and legal costs due to accidents.
The e-learning course will be developed by a specialist external consultancy. The materials for classroom-based training will be delivered by ABC Company's development team. All course materials will be piloted before they are used. ABC Company will deliver training to its customers and also hopes to sell the course materials to other training companies as part of their operational business. ABC Company will use their own sales and marketing departments to promote the courses.
The legislation requires construction companies to comply with the new legislation within two years. The course materials and trainers have to be accredited by a government agency before courses can be delivered.
ABC Company is planning to deliver pilot courses within five months of starting the project.
The ABC Company standard development model for new courses recommends the following stages:
End of the Project scenario.
Additional Information:
The Chief Executive Officer (CEO) founded the company five years ago. Under her leadership, ABC Company has grown quickly into a successful training company. It delivers a range of accredited professional training.
The Finance Director is also a founder member of ABC Company and is responsible for authorizing budgets for the Operations and Development Teams. She authorizes all large contracts personally.
The Purchasing Manager reports to the Finance Director and is responsible for managing and monitoring supplier contracts.
The Operations Director is responsible for the delivery off all training and for the training development budget. His department organizes courses, venues and trainers. They work with the Product and the Sales teams to provide a comprehensive training schedule. ABC Company's IT manager reports to the Operations Director.
The Business Development Director has recently been appointed to identify new training needs and propose new products. She will work with the Operations. Director to ensure a cost-conscious approach and that appropriate development technologies are used for the health and safety course.
The Training Development Manager reports to the Business Development Director and is responsible for developing training materials and gaining accreditation, in accordance with the standard course development model. Course developers in his team have skills in a range of development technologies and are allocated to projects as needed.
The Training Delivery Manager, who reports to the Operations Director, is responsible for ensuring that internal and external trainers deliver ABC Company training courses to the required standard. He also checks course materials to ensure they are fit for purpose and of the required quality.
The Central Services Director has responsibility for corporate communications, facilities management and configuration management. He recently led a project to consolidate all company quality systems into one quality management system and set up a corporate quality department, now managed by the Corporate Quality Manager.
The Corporate Document Manager reports to the Central Services Director. She helped establish the company's document management system and now operates it across the business. She manages a team of administrators and contracts staff when workload is high.
The Sales Director joined ABC Company two months ago and is keen to establish himself by suggesting new markets for the courses and material. All account managers and the marketing team report to him. They promote existing training courses to other training companies and existing customers.
End of the additional information.
The Health and Safety Training Project is part of a programme of strategic expansion, which is important for ABC Company's continued operation. At the end of stage 2, the estimated project costs are greater than the expected benefits in the business case. The project board has reviewed the situation and asked programme management to decide whether the project should be closed prematurely.
Is this an appropriate application of the 'manage by stages' principle, and why?
- A. No, because this contradicts the 'manage by exception' principle.
- B. Yes, because decisions about closure should be escalated to programme management, unless otherwise instructed.
- C. No, because the project board should decide whether to continue with the project.
- D. Yes, because the project board should escalate significant decisions to programme management.
Answer: B
NEW QUESTION 148
Which 2 statements should be recorded under the Expected dis-benefits heading?
- A. The calendar may not result in the 10 further orders from the list of prospective customers in 12 months.
- B. The calendar may not result in the expected 10% increase in orders.
- C. Individuals in the engineering team who are not selected to appear in the calendar photographs will become
de-motivated. - D. Because the Calendar project is a priority for the MNO Manufacturing Company, the delivery of other
projects within the Marketing department will be delayed. - E. A high quality, glossy product will involve additional costs.
Answer: C,D
Explanation:
Explanation/Reference:
NEW QUESTION 149
Which of the following principles uses Product Descriptions to provide clarity by defining each product's purpose, composition, derivation, format, quality criteria and quality method?
- A. Focus on products
- B. Manage by stages
- C. Tailor to suit the project environment
- D. Continued business justification
Answer: A
NEW QUESTION 150
In order for ABC Company to achieve the expected sales of the health and safety training course, the senior user will need to ensure that all staff understand the objectives and target audience for the course. In addition, these sales will need to be added to each individual's sales targets. These activities have been included in the benefits management approach.
Is this appropriate, and why?
- A. No, because actions to deliver the outputs should be recorded in the stage plan.
- B. Yes, because how the benefits will be measured needs to be documented.
- C. No, because the expected sales increase should be recorded in the business case.
- D. Yes, because the actions required to achieve the outcomes need to be documented.
Answer: B
NEW QUESTION 151
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. Move entry 13 to Tools and techniques because it describes the method to be used to communicate to the
individual producing the staff newsletter. - B. 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. - C. Delete entry 13 because the activity to provide the weekly updates should be scheduled in the relevant
Stage Plan.
Answer: B
Explanation:
Explanation/Reference:
Starting up and Initiating a Project
Question Set 2
NEW QUESTION 152
A change authority has been appointed for the project. During the development of the 'classroom-based training material', a large number of changes were proposed to the design of the 'e-learning course'. Therefore, the change authority has decided to use the Moscow technique to prioritize changes based on the impact they will have on completing each stage on time.
Is this an appropriate application of the Moscow technique, and why?
- A. Yes, because it should be used to prioritize change based on the estimated impact on time.
- B. No, because it should be used to prioritize change based on the project's business justification.
- C. No, because it should define scope tolerances, supporting the management by exception principle.
- D. Yes, because it is a prioritization technique that should be used to prioritize a product's quality criteria.
Answer: A
Explanation:
Explanation/Reference: https://en.wikipedia.org/wiki/MoSCoW_method
NEW QUESTION 153
While planning the initiation stage, the Project Manager reviewed some threats that had been recorded in the Daily Log.
Which threat should have been assessed for possible risk responses to be included in the Initiation Stage Plan?
- A. There is a shortage of service providers so there is a possibility that no suitable service providers respond to the request for proposals. This would prevent the Outsourcing project from proceeding.
- B. MFH has no experience in outsourcing and this may affect understanding of what is required, resulting in inadequate plans and strategies.
- C. The Project Brief is a complex document and may not be approved by the Executive.
Answer: A
NEW QUESTION 154
Project Scenario - Health and Safety Training Project:
ABC Company is a well-established training company that uses a standard model to develop training materials and deliver courses to customers.
ABC Company has commissioned a project in response to recent changes in government legislation relating to health and safety on construction sites. The project will deliver "capability to provide health and safety training", including the materials needed for classroom-based training and e-learning. The expected benefits for construction companies include a reduction in lost days and legal costs due to accidents.
The e-learning course will be developed by a specialist external consultancy. The materials for classroom- based training will be delivered by ABC Company's development team. All course materials will be piloted before they are used. ABC Company will deliver training to its customers and also hopes to sell the course materials to other training companies as part of their operational business. ABC Company will use their own sales and marketing departments to promote the courses.
The legislation requires construction companies to comply with the new legislation within two years. The course materials and trainers have to be accredited by a government agency before courses can be delivered. ABC Company is planning to deliver pilot courses within five months of starting the project.
The ABC Company standard development model for new courses recommends the following stages:
End of the Project scenario.
Additional Information:
The Chief Executive Officer (CEO) founded the company five years ago. Under her leadership, ABC Company has grown quickly into a successful training company. It delivers a range of accredited professional training.
The Finance Director is also a founder member of ABC Company and is responsible for authorizing budgets for the Operations and Development Teams. She authorizes all large contracts personally.
The Purchasing Manager reports to the Finance Director and is responsible for managing and monitoring supplier contracts.
The Operations Director is responsible for the delivery off all training and for the training development budget. His department organizes courses, venues and trainers. They work with the Product and the Sales teams to provide a comprehensive training schedule. ABC Company's IT manager reports to the Operations Director.
The Business Development Director has recently been appointed to identify new training needs and propose new products. She will work with the Operations. Director to ensure a cost-conscious approach and that appropriate development technologies are used for the health and safety course.
The Training Development Manager reports to the Business Development Director and is responsible for developing training materials and gaining accreditation, in accordance with the standard course development model. Course developers in his team have skills in a range of development technologies and are allocated to projects as needed.
The Training Delivery Manager, who reports to the Operations Director, is responsible for ensuring that internal and external trainers deliver ABC Company training courses to the required standard. He also checks course materials to ensure they are fit for purpose and of the required quality.
The Central Services Director has responsibility for corporate communications, facilities management and configuration management. He recently led a project to consolidate all company quality systems into one quality management system and set up a corporate quality department, now managed by the Corporate Quality Manager.
The Corporate Document Manager reports to the Central Services Director. She helped establish the company's document management system and now operates it across the business. She manages a team of administrators and contracts staff when workload is high.
The Sales Director joined ABC Company two months ago and is keen to establish himself by suggesting new markets for the courses and material. All account managers and the marketing team report to him.
They promote existing training courses to other training companies and existing customers.
End of the additional information.
ABC Company has a number of projects in progress. The executive of the Health and Safety Training Project is also a member of the project board for two other projects and is very busy. As a result, during this initiation stage, the executive has appointed another person to carry out both their business assurance and the role of change authority for minor and medium severity issues.
Is this appropriate, and why?
- A. Yes, because projects that are likely to have many changes should delegate the change authority.
- B. No, because the decision to have a change authority should be made before the project is authorized.
- C. No, because the project manager identifies the level of tailoring that is relevant for the project.
- D. Yes, because people with delegated project assurance roles may act as the change authority.
Answer: D
NEW QUESTION 155
ABC Company has a standard course development model with four defined stages that the company manages
using PRINCE2. The project manager for the Health and Safety Training Project has recommended the stage
2 of the standard model be split into two separate stages. As a result, there will now be five management
stages in the project.
Is this an appropriate application of the 'tailor to suit the project' principle, and why?
- A. Yes, because the project manager can adapt or combine PRINCE2 process to suit the project.
- B. No, because the standard course development structure should be applied to the project.
- C. Yes, because the standard course development structure should be tailored to suit the project.
- D. No, because a simple project should have no more than two management stages.
Answer: C
NEW QUESTION 156
While preparing the Quality Management Strategy, the Project Manager noticed that the corporate quality
management system does not specifically cover project management.
Which option provides an appropriate way for the Project Manager proceed?
- A. Seek relevant organizational standards, then facilitate a workshop to discuss the Quality Management
Strategy with Project Assurance. - B. Proceed with the project without a Quality Management Strategy and adopt the selected service provider's
standards in stage 4. - C. Record the development of a corporate quality management system for project management as a
prerequisite of the Project Plan.
Answer: A
Explanation:
Explanation/Reference:
NEW QUESTION 157
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 (GBP)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.+(GBP)10,000 / -(GBP)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 Techniques, processes and procedures or Constraints sections?
- A. Delete entry 7 because this should be contained in the Quality skills required section of the Product Description.
- B. Add 'There must be minimum disruption to current services' to Constraints.
- C. Delete entry 1 because this section should contain the techniques, processes and procedures required for specialist product development.
- D. Delete entry 6 because this applies to Office Moves Limited and is therefore outside the Work Package.
- E. Move entry 5 to Techniques, processes and procedures because this is a technique which staff should be aware of.
Answer: A,D
NEW QUESTION 158
......
PRINCE2-Practitioner Certified Professional salary
The average salary of a PRINCE2-Practitioner Certified exam certified expert in:
- India - 6,50,000 INR
- England - 35,500 POUND
- Europe - 45,000 EURO
- United State - 60,000 USD
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