- (Exam Topic 2)
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to cut costs, better manage suppliers’ performance and reduce the confusion caused by inadequate internal controls, outdated standards and outdated technology.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 Reasons heading?

1. 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.
2. B. Providing re-engineered services in-house will remove the need to transfer staff to a service provider.
3. C. The Ministry of Food Hygiene (MFH) needs to deal with the increasing pressure to cut costs and better manage supplier's performance.
4. D. Relocating staff to the selected service provider's premises will mean that no property transfer is required.
5. E. The inadequate controls, outdated standards and outdated technology must be addressed.

Correct Answer: CD
http://www.whatisprince2.net/prince2-theme-business-case.php

- (Exam Topic 3)
Scenario
Additional Information

Further information on some resources who could be involved in the project:
Outcome Account Manager: He represents Outcome which is a recruitment agency that provides specialist outsourcing resources. Outcome provided the consultants who carried out the feasibility study and the same consultants will be providing support and guidance to the Information Technology and Facilities teams during the project.
Director of Finance Division: She was transferred from the Information Technology Division 12 months ago. She is responsible for ensuring a cost-conscious approach is adopted in all operational and project activities across the Ministry of Food Hygiene.
Hardware Manager: Reports to the Director of Information Technology. He provides computer hardware to all business functions but has little awareness of the needs of his colleagues working in software.
Payroll Manager: Reports to the Director of Finance. He is a very experienced and efficient qualified accountant who has much of the responsibility of running the Finance Division on behalf of the Director of Finance. He has been involved in drafting the Ministry's business strategy and assisting in a full business risk assessment. He also drafted the corporate Business Case standards.
Which 2 alternative actions apply to the proposed Executive for this project?

1. A. Retain because he accepts that outsourcing is the best solution.
2. B. Replace with 'Director of Finance Division' because she can ensure a cost-conscious approach to the project that gives value for money.
3. C. Retain because he has the right level of authority to be able to control the strategic nature of the Outsourcing project.
4. D. Add 'Director of Finance' because she understands the operation of the Information Technology Division and the Facilities Division.
5. E. Replace with 'Payroll Manager' because he is a very experienced and efficient qualified accountant.

Correct Answer: BC

- (Exam Topic 12)
The 'capability to provide health and safety training' has been delivered. During the 'closing a project' process, the marketing department sent an e-mail to all key customers reminding them of the deadline to comply with the new government legislation, with an aim to build relationships with their customers.
Which theme is being applied?

1. A. Risk.
2. B. Organization.
3. C. Plans.
4. D. Change.

Correct Answer: B

- (Exam Topic 12)
QUALITY
Here are three actions related to managing quality on the Health and Safety Training Project. Which role (A-F) should be responsible for each action?
Choose only one role for each action. Each role can be used once, more than once, or not at all.

Solution:


Does this meet the goal?

1. A. Yes
2. B. No

Correct Answer: A

- (Exam Topic 12)
PROGRESS
Here are three statements relating to controlling the progress of the project. In which management product (A-E) should each statement be recorded?
Choose only one product for each statement. Each product can be used once, more than once, or not at all.

Solution:


Does this meet the goal?

1. A. Yes
2. B. No

Correct Answer: A