PRINCE2F Exam 1

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Question 1 of 25

1 Amani Construction Ltd in Kumasi, Ghana, will build a district clinic by completing the design, foundations, structure and fit-out in a fixed order, handing the finished building over at the end. Which delivery approach is MOST appropriate to describe this project?

A programme-based approach A linear-sequential approach A hybrid approach An iterative-incremental approach

✅ Correct answer: A linear-sequential approach

📌 Explanation: PRINCE2 7 describes a linear-sequential delivery approach as one in which the work is done in a planned sequence of steps, each completed before the next starts, with the product made available at the end. A clinic built design-first and handed over once finished follows that pattern.

❌ Why the other options are wrong: an iterative-incremental approach develops the product through repeated cycles and releases parts of it early, which the clinic build does not do; a hybrid approach mixes sequential and iterative elements, but nothing here is delivered iteratively; a programme-based approach is not a PRINCE2 delivery approach and describes coordinating several related projects.

📋 Objective: 1.1 (Recall key project management concepts)

2 When starting up a store-refurbishment project, the project manager at Amani Retail PLC in Casablanca reviews the lessons reports from three earlier refurbishments and records the relevant points in the lessons log. Which principle is MOST appropriate to describe what she is doing?

Learn from experience Focus on products Manage by exception Manage by stages

✅ Correct answer: Learn from experience

📌 Explanation: The 'learn from experience' principle asks the project to seek, record and act on lessons at the start, throughout and at the close of the project. Reviewing earlier lessons reports during starting up a project and logging what applies is that principle in action.

❌ Why the other options are wrong: manage by stages divides the project into management stages with a board decision at each boundary; focus on products concerns defining products and their quality before doing the work; manage by exception sets tolerances so that the board is involved only when a forecast breaches them.

📋 Objective: 2.1 (Explain the seven principles)

3 Amani Systems Ltd in Accra is running a three-month data-migration project. The project manager proposes that one person holds both the executive and senior user roles and that highlight reports are given verbally. Which statement is MOST appropriate about applying the principles here?

The seven principles must still apply Small projects may omit some principles Principles apply only to large projects Role combinations breach the organizing practice

✅ Correct answer: The seven principles must still apply

📌 Explanation: Tailoring adapts the practices, processes, roles and management products to the project's context, but a project is only a PRINCE2 project if all seven principles are applied. Combining roles and simplifying reports is legitimate tailoring as long as the principles still hold.

❌ Why the other options are wrong: small projects tailor how the method is applied, but the principles themselves are not optional; PRINCE2 allows some roles to be combined, such as executive and senior user, provided conflicts of interest are avoided; the principles are universal and apply to projects of every size and type.

📋 Objective: 2.2 (Explain how the principles underpin tailoring and applying the method)

4 Which term is MOST appropriate for a union at Amani Logistics Group in Tangier that believes a new warehouse shift rota will harm its members, although the project team expects no effect on them?

A team manager A project supplier A senior user A project stakeholder

✅ Correct answer: A project stakeholder

📌 Explanation: PRINCE2 7 defines a stakeholder as any individual, group or organisation that can affect, be affected by, or perceive itself to be affected by an initiative. The union perceives that it will be affected, so it is a stakeholder whose engagement the project should plan.

❌ Why the other options are wrong: a senior user is a project board role representing those who will use the products, not an outside group; a project supplier provides the skills and resources to build the products; a team manager is a project role that manages the delivery of work packages.

📋 Objective: 3.1 (Define people-element concepts)

5 The project manager of a ward-digitisation project at Amani Council in Kisumu, Kenya, notices that nurses are resisting the new tablets, although the tablets passed every quality check. Which action is MOST appropriate to help the change succeed?

Involve nurses in planning the transition Ask the board for extra tolerance Close the project as products passed Raise an off-specification for the tablets

✅ Correct answer: Involve nurses in planning the transition

📌 Explanation: PRINCE2 7 stresses that projects deliver change, and that change management helps people move from the current state to the future state so the outputs are adopted and benefits realised. Engaging the nurses in shaping the transition addresses their resistance directly.

❌ Why the other options are wrong: an off-specification is for a product that does not meet its specification, and these tablets passed their checks; closing the project ignores that the outcome depends on the tablets being used; extra tolerance changes the limits on performance targets but does nothing about the people side of the change.

📋 Objective: 3.3 (Explain key people concepts)

6 Amani Retail PLC is preparing the PID for a loyalty app in its Rabat and Marrakesh stores. The project manager needs to record how store staff will be prepared for, and supported through, the move to new ways of working. Which part of the PID is MOST appropriate?

Quality management approach Communication management approach Commercial management approach Change management approach

✅ Correct answer: Change management approach

📌 Explanation: In PRINCE2 7 the change management approach in the PID describes how the project will help the people affected move to the new ways of working, including readiness, training and support for the transition. Preparing and supporting store staff belongs there.

❌ Why the other options are wrong: the communication management approach sets out how and when information is exchanged with stakeholders, not how the transition itself is managed; the quality management approach covers quality methods and responsibilities; the commercial management approach covers supplier contracts and commercial arrangements.

📋 Objective: 3.4 (Explain the management products that support the people element)

7 Which item is MOST appropriate to record as a dis-benefit in Amani Logistics Group's business case for new container scanners in Tangier, given these expected results: the installed scanners, faster gate clearance, lower demurrage costs and higher electricity costs?

Faster gate clearance The installed scanners Higher electricity costs Lower demurrage costs

✅ Correct answer: Higher electricity costs

📌 Explanation: A dis-benefit is a measurable decline resulting from an outcome that one or more stakeholders perceive as negative. The rise in electricity costs is a measurable negative result of the change, so it belongs in the business case alongside the benefits.

❌ Why the other options are wrong: the installed scanners are an output, the specialist product the project hands over; faster gate clearance is an outcome, the result of the change from using the scanners; lower demurrage costs are a measurable benefit, a positive improvement that justifies the investment.

📋 Objective: 4.1 (Business case practice)

8 After the project board authorises initiation, the project manager of Amani Council's new school-block project in Kisumu must develop the outline business case from the project brief into a detailed business case. Which process is MOST appropriate for this work?

Initiating a project Directing a project Controlling a stage Starting up a project

✅ Correct answer: Initiating a project

📌 Explanation: In the business case lifecycle the outline business case appears in the project brief during starting up a project, and the detailed business case is developed during initiating a project as part of the PID. It is then maintained at each stage boundary and confirmed through benefits reviews.

❌ Why the other options are wrong: starting up a project produces only the outline business case in the project brief; directing a project is the board's process for approving the business case, not developing it; controlling a stage manages the day-to-day work of a delivery stage after initiation.

📋 Objective: 4.1 (Business case practice)

9 Amani Construction Ltd is the main contractor building a market hall for a municipal council in Tamale, Ghana. The council's executive needs to decide who should sit on the project board for those designing and building the hall. Which role is MOST appropriate?

Senior user Senior supplier Project assurance Team manager

✅ Correct answer: Senior supplier

📌 Explanation: The organizing practice recognises three project interests: business, user and supplier. The senior supplier represents the supplier interest on the project board, those who design, develop and build the products, so a director from the contractor fits this role.

❌ Why the other options are wrong: the senior user represents those who will use the hall and realise its benefits; a team manager manages the delivery of work packages but does not sit on the board; project assurance monitors the project on behalf of board members rather than representing the supplier interest.

📋 Objective: 4.2 (Organizing practice)

10 The executive of Amani Systems Ltd in Accra wants someone independent of the project manager to check, on the board's behalf, that the project is being run properly and that stakeholder needs are being met. Which role is MOST appropriate?

Change authority Project assurance Quality assurance Project support

✅ Correct answer: Project assurance

📌 Explanation: Project assurance gives project board members confidence that the project is being conducted correctly, and it must be independent of the project manager. Each board member is responsible for the assurance of their own interest and may delegate it to others.

❌ Why the other options are wrong: project support provides administrative help to the project manager rather than independent checks; quality assurance is carried out independently of the project management team, typically by the business, and is not a project board role; the change authority decides on requests for change within delegated limits.

📋 Objective: 4.2 (Organizing practice)

11 Amani Retail PLC's project manager for a warehouse-racking project in Casablanca has just written the project product description. Which planning step is MOST appropriate to complete next?

Draw the product flow diagram Create the product breakdown structure Write the work package descriptions Prepare the stage plan schedule

✅ Correct answer: Create the product breakdown structure

📌 Explanation: Product-based planning starts with the project product description, then breaks the final product down into its component products in a product breakdown structure. Product descriptions and a product flow diagram follow, and only then are activities, schedules and work packages prepared.

❌ Why the other options are wrong: work package descriptions are produced much later, when work is authorised for teams; a product flow diagram needs the product breakdown structure to exist first; scheduling comes after the products and their sequence have been identified.

📋 Objective: 4.3 (Plans practice)

12 During a quality review of the user guide for Amani Council's tender portal in Kisumu, the reviewers agree that the guide meets its quality criteria. Which record is MOST appropriate for the project manager to update with this result?

Issue register Quality register Risk register Lessons log

✅ Correct answer: Quality register

📌 Explanation: The quality register records the planned and actual quality activities for each product, including the dates and results of quality reviews. It gives evidence that quality control has been done and supports the approval of the product.

❌ Why the other options are wrong: the issue register records formal issues such as requests for change and off-specifications; the risk register records threats and opportunities with their responses; the lessons log captures lessons that could be applied on this or future projects.

📋 Objective: 4.4 (Quality practice)

13 Following a workshop, the senior user of Amani Logistics Group says the new tracking system must be 'fast and reliable'. The project manager turns this into measurable statements such as 'pages load in under 2 seconds' and '99.5% availability'. Which quality concept is MOST appropriate for these statements?

Quality assurance activities Project acceptance criteria User quality expectations Quality register entries

✅ Correct answer: Project acceptance criteria

📌 Explanation: Acceptance criteria are a prioritised list of measurable attributes that the project product must meet before the user will accept it. They are derived from the user's quality expectations, which are often stated in general terms such as 'fast and reliable'.

❌ Why the other options are wrong: user quality expectations are the general statements the senior user gave, not the measurable versions; quality assurance activities are independent checks that the project is following quality standards; quality register entries record planned and completed quality activities, not the criteria themselves.

📋 Objective: 4.4 (Quality practice)

14 Amani Construction Ltd's project manager in Kumasi writes: 'Because heavy rain is forecast for May, the foundation trenches may flood, which could delay the structural work by three weeks.' Which part of this statement is MOST appropriate to describe as the risk event?

The trenches may flood The forecast May rains A three-week structural delay Hiring extra water pumps

✅ Correct answer: The trenches may flood

📌 Explanation: PRINCE2 describes a risk in three parts: the cause (a source of risk), the event (the area of uncertainty) and the effect (the impact on objectives). The possibility that the trenches flood is the uncertain event that sits between the forecast rain and the delay.

❌ Why the other options are wrong: the forecast rain is the cause, the situation that gives rise to the risk; the three-week delay is the effect on the project's objectives if the event occurs; hiring water pumps is a possible risk response, not part of the risk description.

📋 Objective: 4.5 (Risk practice)

15 After acceptance testing, the team manager at Amani Systems Ltd reports that the new payroll module cannot produce the monthly tax schedule that its product description requires. Which issue type is MOST appropriate to record?

Request for change Problem/concern Business opportunity Off-specification

✅ Correct answer: Off-specification

📌 Explanation: An off-specification is something that should be provided by the project but is not, or is forecast not to be, provided, such as a product that fails to meet its quality specification. A payroll module that cannot produce a required report is an off-specification.

❌ Why the other options are wrong: a request for change proposes a change to a baseline, whereas here the baseline is unchanged and the product misses it; a problem or concern covers any other issue the project manager must resolve or escalate; a business opportunity is an issue that could benefit the business, which this failure does not.

📋 Objective: 4.6 (Issues practice)

16 Which report is MOST appropriate for the project manager of Amani Retail PLC's store-rollout project to use when giving the project board a regular, time-driven summary of stage progress?

Exception report Highlight report Lessons report Checkpoint report

✅ Correct answer: Highlight report

📌 Explanation: A highlight report is a time-driven report from the project manager to the project board on the progress of the stage, at the frequency set out in the PID. It lets the board manage by exception without attending regular progress meetings.

❌ Why the other options are wrong: a checkpoint report goes from a team manager to the project manager about a work package; an exception report is event-driven and is raised only when a tolerance is forecast to be breached; a lessons report passes on lessons learned rather than reporting regular stage progress.

📋 Objective: 4.7 (Progress practice)

17 Following board approval at the end of initiation, Amani Logistics Group's project manager is asked which management product will act as the baseline for managing the project and assessing its progress. Which product is MOST appropriate?

The end stage report The approved project brief The project initiation documentation The project log registers

✅ Correct answer: The project initiation documentation

📌 Explanation: The project initiation documentation brings together the information needed to direct and manage the project, including the business case, project plan, approaches and team structure. Once approved it acts as the baseline against which progress, issues and viability are assessed.

❌ Why the other options are wrong: the project brief is an input to initiation and is superseded by the PID; the project log holds the registers and logs used day to day but is not the management baseline; an end stage report reviews a completed stage rather than setting the baseline.

📋 Objective: 4.8 (Core management products: PID and project log)

18 Amani Council in Kisumu has received a project mandate for a new county revenue-collection system. Before committing resources to initiation, the executive wants to confirm that the project is viable and worthwhile. Which process is MOST appropriate?

Initiating a project Directing a project Controlling a stage Starting up a project

✅ Correct answer: Starting up a project

📌 Explanation: The purpose of starting up a project is to ensure that the prerequisites for initiating a project are in place by answering the question: do we have a viable and worthwhile project? It is triggered by the project mandate and happens before initiation is authorised.

❌ Why the other options are wrong: initiating a project establishes solid foundations once the board has already decided initiation is worthwhile; directing a project begins when the board receives the request to initiate, after starting up; controlling a stage manages the work of a delivery stage.

📋 Objective: 5.1 (Explain the purpose of the processes)

19 A team manager at Amani Construction Ltd has accepted a work package to build the drainage works for a clinic in Kumasi. Which process is MOST appropriate for controlling the link between the project manager and the team manager during this work?

Directing a project Initiating a project Controlling a stage Managing product delivery

✅ Correct answer: Managing product delivery

📌 Explanation: The purpose of managing product delivery is to control the link between the project manager and the team manager by agreeing the requirements for acceptance, execution and delivery of a work package. The team manager accepts, executes and delivers the work package within this process.

❌ Why the other options are wrong: controlling a stage is the project manager's process for assigning work and monitoring the stage, not the team manager's delivery of it; initiating a project sets up the project before any work packages are delivered; directing a project is the project board's process.

📋 Objective: 5.1 (Explain the purpose of the processes)

20 As the final stage nears completion, the executive of Amani Systems Ltd asks which process will confirm that users have accepted the products and that the host site can support them once the project team disbands. Which process is MOST appropriate?

Controlling a stage Managing product delivery Directing a project Closing a project

✅ Correct answer: Closing a project

📌 Explanation: The objectives of closing a project include verifying user acceptance of the project's products, ensuring the host site can support the products when the project is disbanded, reviewing performance against baselines and making provision for open issues and risks.

❌ Why the other options are wrong: controlling a stage manages day-to-day work within a stage rather than handing over the final products; managing product delivery controls the work of team managers on work packages; directing a project is where the board authorises closure, not where acceptance and handover are checked.

📋 Objective: 5.2 (Explain the objectives of the processes)

Case 1: Amani Health Group maternity wing (Nairobi)

Amani Health Group is building a 60-bed maternity wing at its hospital in Nairobi, Kenya, using a linear-sequential approach. The group's chief operating officer is the executive; the head of maternity services is the senior user; the director of the building contractor is the senior supplier. Wanjiru Kamau is the project manager. The project board has made the hospital facilities director the change authority, able to approve requests for change of up to KES 5 million each from a change budget of KES 10 million.

Key facts in month 7:

Stages: 1 initiation (complete); 2 design and approvals (complete); 3 construction (in progress, months 4 to 12); 4 fit-out and commissioning.
Stage 3 budget: KES 480 million, with a cost tolerance of plus or minus KES 24 million and a time tolerance of plus or minus three weeks.
Only stage 3 has a detailed stage plan; stage 4 is shown at outline level in the project plan.
A steel supplier has warned that prices may rise by 12% next quarter.
The senior user has asked for a second neonatal theatre, estimated at KES 18 million.
Because of higher cement and steel prices already incurred, Wanjiru now forecasts that stage 3 will finish KES 31 million over budget.

21 Which timing is MOST appropriate for Amani Health Group to produce the detailed stage plan for stage 4, the fit-out and commissioning work?

After the fit-out work has begun At the start of stage 4 When the project plan was approved Near the end of stage 3

✅ Correct answer: Near the end of stage 3

📌 Explanation: PRINCE2 plans in detail only as far ahead as can be planned accurately, the planning horizon. The stage plan for the next stage is produced near the end of the current stage, in managing a stage boundary, so the board can approve it before stage 4 begins.

❌ Why the other options are wrong: when the project plan was approved, stage 4 was beyond the planning horizon and could only be shown at outline level; the start of stage 4 is too late, because the board must approve the next stage plan before authorising the stage; planning after the work has begun leaves the work without an approved baseline.

📋 Objective: 4.3 (Plans practice)

22 The project manager has asked the hospital's procurement manager to take responsibility for the steel-price risk and has asked a buyer to place a fixed-price forward order for steel. Which role does the buyer MOST appropriately hold for this risk?

Change authority Risk owner Risk action owner Project assurance

✅ Correct answer: Risk action owner

📌 Explanation: PRINCE2 separates the risk owner, who is responsible for managing and monitoring all aspects of a particular risk, from the risk action owner, who carries out a specific agreed response. The buyer placing the forward order is carrying out the response, so is the risk action owner.

❌ Why the other options are wrong: the risk owner is the procurement manager, who is responsible for the risk as a whole; the change authority decides on requests for change within its delegated limits and is not involved in a risk response; project assurance checks the project for the board and does not carry out risk actions.

📋 Objective: 4.5 (Risk practice)

23 When Wanjiru logs the senior user's KES 18 million request for a second neonatal theatre at Amani Health Group as a request for change, which handling is MOST appropriate?

Record it as an off-specification instead Refer the request to the board Reject it as outside the baseline Let the change authority approve it

✅ Correct answer: Refer the request to the board

📌 Explanation: The project board may delegate decisions on requests for change to a change authority, but only within agreed limits. At KES 18 million the request exceeds both the KES 5 million per-request limit and the KES 10 million change budget, so the decision rests with the project board.

❌ Why the other options are wrong: the change authority can approve only requests within its delegated limits, and this one is well above them; an off-specification is a product that fails its specification, whereas this is a proposed change to the baseline; requests for change are assessed on their merits rather than rejected simply for changing the baseline.

📋 Objective: 4.6 (Issues practice)

24 Wanjiru Kamau now forecasts that stage 3 at Amani Health Group will finish KES 31 million over its KES 480 million budget. Which action should she take FIRST?

Wait for the next highlight report Fund the overrun from change budget Send the board an exception report Produce an exception plan straight away

✅ Correct answer: Send the board an exception report

📌 Explanation: The stage cost tolerance is plus or minus KES 24 million, so a KES 31 million overspend (a forecast cost of KES 511 million against an upper limit of KES 504 million) breaches it. The project manager escalates a forecast breach at once with an exception report to the project board.

❌ Why the other options are wrong: an exception plan is produced only if the board requests one after reviewing the exception report; the change budget funds approved requests for change and is not meant to absorb overspends; waiting for the next highlight report delays an escalation that should be made as soon as the breach is forecast.

📋 Objective: 4.7 (Progress practice)

25 After receiving Wanjiru's exception report, Amani Health Group's project board must decide whether to ask for an exception plan for stage 3. Which process and management level is MOST appropriate for this decision?

Managing product delivery, at delivering level Directing a project, at directing level Controlling a stage, at managing level Starting up a project, at commissioning level

✅ Correct answer: Directing a project, at directing level

📌 Explanation: Directing a project is performed by the project board at the directing level of management. It runs from the end of starting up a project to closure, and is where the board responds to exception reports, for example by requesting an exception plan.

❌ Why the other options are wrong: controlling a stage is the project manager's process at managing level, which raises the exception rather than deciding on it; managing product delivery is the team managers' process at delivering level; starting up a project is a pre-project process and is not performed by the commissioning level.

PRINCE2F Exam 1

Case 1: Amani Health Group maternity wing (Nairobi)

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