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inadequate internal controls, outdated standards and outdated technology.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?

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?

Which of the following statements is NOT correct?
The Learn from Experience principle suggests that lessons should be actively sought...

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
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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 looks like any other MFH document.

Which principle is supported by the activity Evaluate the Project?

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
Column 1 is a list of actions that occur during the Controlling a Stage process. For each action in
Column 1, select from Column 2 the PRINCE2 theme that is being applied. Each selection from
Column 2 can be used once, more than once or not at all.
Drop down the answer from column 1 to column 2.

Which project controls should be established for the Outsourcing project?

The Work Package has been in progress for four weeks and has four weeks remaining. The
Information Technology Team Manager is concerned that he has no idea what the service
provider is doing about preparing to accept the transfer of Information Technology equipment and
staff. He is uncertain about what should be happening.
Which 2 initial actions should the Team Manager take in response to this concern?