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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. 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.
  • C. No change to entry 9 because it describes the timing of performance reports.

Answer: C


Here are three statements from the business case for the Health and Safety Project.
Under which heading in the business case (A-F) should they be recorded?
Choose only one heading for each statement. Each heading can be used once, more than once, or not at all.





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:
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?

  • A. Due to market conditions a suitable service provider may not be found, possibly leading to premature closure of the project.
  • B. 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.
  • C. 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.
  • D. Owing to employment contract changes staff may resist outsourcing, which would make it difficult to transfer staff to the selected service provider.
  • E. The management stages recommended by the consultants may not be appropriate, resulting in confusion in planning.

Answer: C,D


During stage 3, a work package was assigned to produce the ‘planned pilot courses’. The product’s quality criteria were defined and baselined before the work package was agreed.
Which principle is being applied, and why?

  • A. ‘Continued business justification’, because both work activities and products contribute to the success of the project.
  • B. ‘Continued business justification’, because the business justification is partly defined in the product description of a specialist product.
  • C. ‘Focus on products’, because delivering a product’s complete set of features is more important than delivering it on time or to cost.
  • D. ‘Focus on products’, because a product should be agreed and defined to a reasonable extent before production begins.

Answer: D



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