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 correctly define a Business Case risk which should be recorded under the
Major risks heading?

Having completed designing the plan, in which order should the next steps take place to produce a
plan?
1. Prepare Estimates
2. Define and analyze Products
3. Prepare the schedule
4. Identify activities and dependencies

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?

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 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 either the Records or Reporting headings?

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?

PRINCE2 proposes 3 levels of Plan, which are they?

Which of the following reports does not contain any information on risk?