If the Project Board are too busy to authorize all change requests themselves, they can appoint?

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 produces a corporate business plan which includes the targets for the next 12 months. For the
Health and Safety Training Project, a feasibility study was carried out and, as a result, the expected sales were
included in this plan. During the 'starting up a project' process, the executive advised the project manager that
the corporate business plan provides sufficient justification to initiate the project.
Is this a correct application of the 'continued business justification' principle, and why?

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?

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.
Lines A to E in the table below consist of an assertion statement and a reason statement.
For each line identify the appropriate option, from options A to E, that applies. Each option
can be used once, more than once or not at all.

Two weeks after starting work the Team Manager noticed that each completed product had
exceeded its estimated effort by around 10%. If this trend continues the Work Package will
exceed its agreed cost tolerance of 5%.
Which 2 actions should the Team Manager take in response to this situation?

Which principle is central to the quality theme and provides explicit understanding of what the project will
create?

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?

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?