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NEW QUESTION 59
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. Make an entry in the Lessons Log for future consideration by corporate management.
- D. Record the observation in an Exception Report to the Project Board.
Answer: C
NEW QUESTION 60
The senior user is concerned that the trainers' limited availability could delay their accreditation. This was discussed during the 'starting up a project' process, but during the 'initiating a project' process the project manager notices that it has not been recorded.
Which action should the project manager take FIRST?
- A. Raise an issue report so that the trainers' time can be allocated to the accreditation activities.
- B. Raise an exception report to manage the impact that any such delay would have on the project plan.
- C. Add the information to the risk register so that it can be evaluated and an action decided.
- D. Add appropriate activities to the project plan to manage the concern and avoid any adverse impact.
Answer: D
NEW QUESTION 61
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 (GBP)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 (GBP)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?
- A. The lack of up-to-date technology in MFH means a re-engineering of existing services will not necessarily deliver the performance improvements required.
- B. Use external consultants to provide guidance on the detailed design of the outsourced services.
- C. Set up a PRINCE2 project to deliver the outsourced services.
- D. Review a list of service providers to determine a short-list of possible service providers.
- E. The re-engineering of selected business functions would not provide the required outcome.
Answer: B,C
Explanation:
Reference: http://www.whatisprince2.net/prince2-theme-business-case.php
NEW QUESTION 62
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. 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. Move entry 13 to Tools and techniques because it describes the method to be used to communicate to the individual producing the staff newsletter.
Answer: B
NEW QUESTION 63
Which is a correctly defined acceptance criterion for the service level agreement (SLA) with the selected service provider?
- A. Any changes to the SLA must be managed through formal change control.
- B. The SLA must extend for the full duration of the service contract.
- C. External consultants are to assist in the creation of the SLA.
- D. The selected service provider should be located locally.
Answer: B
NEW QUESTION 64
The project board has asked for highlight reports every six weeks during stage 3. As a result, the project manager has asked each team manager for checkpoint reports every six weeks, in order to collate these into the highlight report. The team manager for the 'marketed courses' is new to team management.
Is this an appropriate action as part of the 'controlling a stage' process, and why?
- A. Yes, because checkpoint reports are a time-driven control providing progress information.
- B. No, because the frequency of reporting should reflect the level of control required for the work package.
- C. No, because the project board should decide on the frequency and content of progress reporting.
- D. Yes, because the project board will need to be updated with the progress of every team.
Answer: A
NEW QUESTION 65
The executive has set the following tolerances for stage 2:
Time (+/- 1 week)
Cost (+/- E20,000)
Scope (using MoSCoW prioritization technique)
Risk (based on the risk appetite defined in the risk management approach) These tolerances have been recorded in the stage plan. The project manager will report progress regularly via highlight reports to the project board and use exception reports to raise exceptions. In addition, the project assurance role will monitor the stage to provide confidence to the project board that exceptions are being reported.
How well does this apply the 'manage by exception' principle, and why?
- A. It applies the principle poorly, because tolerances should be set for each stage against each of the six aspects of project performance.
- B. It applies the principle poorly, because it is the regular reporting of progress that should give the project board the required confidence.
- C. It applies the principle well, because the project manager needs to control the project using discrete management stages.
- D. It applies the principle well, because tolerances should be set for the related aspects of project performance for each stage.
Answer: A
NEW QUESTION 66
Scenario
Additional Information
Product Description
Quality notes from the Daily Log
The Director of Information Technology Division (DIT) has been asked to ensure that any changes to the outsourced staff employment contracts adhere to employment law. The DIT will review future job descriptions of the transferred staff before the final contract is signed with the selected service provider.
The service level agreement between MFH and the selected service provider will specify the type and quality of service required. The selected service provider must follow the industry standards for providing outsourced services.
MFH has a quality management system which contains a document control procedure for all its documentation, however this does not include change management.
All project documents will be subject to a quality review. Nominated products will require a formal approval record signed-off by the quality review chair.
Extract from the draft Quality Management Strategy (may contain errors) Introduction
1. This document defines the approach to be taken to achieve the required quality levels during the project.
2. The Project Board will have overall responsibility for the Quality Management Strategy.
3. Project Assurance will provide assurance on the implementation of the Quality Management Strategy.
Quality management procedure - Quality standards
4. The selected service provider will operate to industry standards for providing outsourced services.
5. MFH document standards will be used.
Records
6. A Quality Register will be maintained to record the planned quality events and the actual results from the quality activities.
7. Configuration Item Records will be maintained for each product to describe its status, version and variant.
8. Approval records for products that require them will be stored in the quality database.
Roles and responsibilities
9. The DIT will check that the employment contracts for outsourced staff adhere to employment law.
10. Team Managers will provide details of quality checks that have been carried out.
11. Team Managers will ensure that the Quality Register is updated with the names of team members who are involved in the review process.
12. The Senior User will review the Product Descriptions of the products to be produced by the selected service provider to ensure that they can be achieved.
The service level agreement contains a number of technical terms that are missing from its glossary of terms.
- A. Obtain agreement from the Director of Facilities Division to add these into the glossary of terms within the remaining +2 days tolerance.
- B. No action required.
- C. Raise an issue (off-specification).
- D. Raise an issue (request for change).
Answer: A
NEW QUESTION 67
Which 2 statements should be recorded under the Major risks heading?
- A. The management stages recommended by the consultants may not be appropriate, resulting in confusion in planning.
- B. Owing to employment contract changes staff may resist outsourcing, which would make it difficult to transfer staff to the selected service provider.
- C. Due to market conditions a suitable service provider may not be found, possibly leading to premature closure of the project.
- D. MFH'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. - E. The 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.
Answer: B,E
Explanation:
Explanation/Reference:
Question Set 3
NEW QUESTION 68
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 Risk tolerance heading?
- A. Corporate management's threshold level of risk exposure is any combination of high and very high impact and probability.
- B. The risk budget will have a tolerance of +/~ 10%.
- C. The Project Manager's threshold level of risk exposure is low impact and probability.
- D. The Project Board's threshold level of risk exposure is any combination of medium, high and very high impact, with high and very high probability.
- E. The cost of all fallback plans must be contained within the project's tolerance.
Answer: D,E
Explanation:
Explanation/Reference:
Question Set 2
NEW QUESTION 69
Product Summary
A list of customers will be collated. This will use existing information from the Accounts department about current customers, and existing information from the Marketing department about prospective customers.
Using the tariff of mailing costs available from the Post Office, a production cost forecast will be produced to allow the CEO and the Marketing Director to decide whether to continue with the project. If they decide to continue, they will give the approval to launch the internal label design competition. Competition rules will be required to communicate details of the competition to the staff. The chosen label design will then be selected from the competition entries.
The photos for the calendar must be based on existing photo design ideas available from the Marketing department. The selected photos will be chosen from these. Monthly calendar displays will be created to show the required layout of each page.
Product Breakdown Structure (contains errors)
Extract from Stage Plan for stage 3.
(All entries are true statements but may not be shown under the correct heading or in the correct document).
Using the Project Scenario and the Extract from Stage Plan for stage 3 provided as additional intonation for this question in the Scenario Booklet, answer the following 5 questions.
The Stage Plan for stage 3 has been produced.
The Engineering Manager insists that there are to be no interruptions to operations whilst photographs are being taken of the engineering staff performing their everyday duties and operating machinery. Two weeks ago the professional photographer produced the photo session schedule based on the operational staff schedule. The operational staff schedule is produced weekly and maintained by the Engineering Manager.
None of the (GBP)500 change budget has been used to date and this is available for the stage.
Which 2 statements apply to the Plan prerequisites section?
- A. Delete entry 3 because the production cost forecast is a deliverable of stage 2, not a prerequisite for stage 3.
- B. Add 'Compliance with the Data Protection Act'.
- C. Add 'Engineering team must be made available for photos'.
- D. Delete entry 4 because the customer list is a deliverable of stage 2, not a prerequisite for stage 3.
- E. Delete entry 2 because these are project benefits not prerequisites of the stage.
Answer: D,E
NEW QUESTION 70
Scenario
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 Timing of communication activities section?
- A. Delete entry 9 because activities for controlling the project should be planned as part of Project controls in the Project Initiation Documentation.
- B. No change to entry 9 because it describes the timing of performance reports.
- C. Delete entry 10 because Highlight Reports are a Project Board control, the frequency of which should be recorded in the Project controls section of the Project Initiation Documentation.
Answer: B
NEW QUESTION 71
The Sales Director would like to add a new company logo to the 'marketing material'. The change to the project scope has been approved by the project board. It is expected to delay product and stage completion date by 3 days and cost £900. The stage 2 cost tolerance of +£1,000 has not been used. The change budget of
£500 has not been used.
Which option describes how this change should be funded?
- A. £400 will need to be requested in addition to the £500 change budget.
- B. £400 of the stage 2 cost tolerance and the £500 change budget should be used.
- C. £900 needed for the change should be taken from the stage 2 cost tolerance.
- D. £900 of additional funding will need to be requested to pay for the change.
Answer: A
NEW QUESTION 72
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 73
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.
ORGANIZATION
The communication management approach is being developed. ABC Company's corporate management has agreed the information about proposed courses can be shared externally, provided that a non-disclosure agreement is signed and corporate management is informed.
Here are three items of information relating to the sharing of course materials.
Under which heading of the communication management approach (A-F) should they be included?
Choose only one heading for each item of information. Each heading can be used once, more than once, or not at all.
Answer:
Explanation:
Explanation
NEW QUESTION 74
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. The Project Board should hold monthly meetings to review project progress.
- B. When authorizing a stage, the Project Board will check that the exposure to risk is still acceptable.
- C. 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.
- D. 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.
- E. Any new risks identified during product development should be reported to the Project Manager by the Team Manager when delivering the completed Work Package.
Answer: A,B
NEW QUESTION 75
Which of the following activities is the Executive responsible for?
- A. Responsible for the Benefits Review Plan post project
- B. Ensure the desired outcome of the project is specified
- C. Responsible for the benefits review plan
- D. Assess and update the Business Case at the end of each stage
Answer: C
Explanation:
Scenario
NEW QUESTION 76
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PRINCE2-Practitioner Exam Certification Path
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