Review questions

Question 1

How many levels do the PRINCE2 Project Organization and PRINCE2 Project Management Team have?

Answer 1

The Project Organization has four levels and the Project Management Team has three levels. The difference is that the Corporate or Programme Management level is the top level in the Project Organization, but the top level in the Project Team is the Project Board. Take a Look at the Organization diagram.

Question 2

What happens to the Project Team once the project is complete?

Answer 2

The Project Team is a temporary structure that is created for the project, so once the project is complete, the Project Team is disbanded.

Question 3

What is the difference between the Project Management Structure and Project Management Team?

Answer 3

The Project Management Structure refers to the PRINCE2 organization itself and shows four levels, while the Project Management Team refers to the team in the project, which has just three levels.

Question 4

Name the four levels in a Project Management Structure, which is also referred to as the PRINCE2 Organization.

Answer 4

The four levels in a Project Management Structure are:  
• Corporate or Programme Management
• Project Board 
• Project Manager  
• Team Manager

Question 5

Name the three levels in a Project Management Team. Which level is not mandatory?

Answer 5

The three levels are the Project Board, Project Manager, and Team Manager. Some smaller projects may not have a Team Manager, therefore the Team Members will report directly to the Project Manager. So we can say that a project team can have two or three levels.

Question 6

What does PMO stand for?

Answer 6

PMO stands for Programme Management Office or Project Management Office. Other names are Project Office and Program Office.

Question 7

Finish this sentence: “A programme is a group of related ______.”

Answer 7

“A programme is a group of related projects”.

Question 8

Name the three roles in the Project Board.

Answer 8

The three roles in the Project Board are:

1) the Executive,
2) the Senior User,
3) the Senior Supplier.

Question 9

Who is responsible for the success of the project and has the necessary authority to take decisions and approve all major plans for the project? They also approve the completion of each stage and authorize the start of the next.

Answer 9

The Project Board.

Question 10

Who represents the Business interests of the project and owns the Business Case?

Answer 10

The Executive represents the business interests of the project and owns the business case.

Question 11

Who is usually responsible for designing and appointing the Project Management team?

Answer 11

The Executive is usually responsible for designing and appointing the Project Management team, including the rest of the Project Board.

Question 12

Which level of the organization sits outside the Project Management team and is responsible for commissioning the project?

Answer 12

The Corporate or Programme Management level is responsible for commissioning the project and is also responsible for identifying the Executive.

Question 13

Who represents the user interests in the Project Board and is responsible for the specification of the required products?

Answer 13

This is the Senior User, and they are also responsible to check that the final products meet the required specification.

Question 14

Who specifies the expected benefits at the start of the project and reports to the Project Board on the benefits that are being realized during the project?

Answer 14

The Senior User specifies the expected benefits and reports on the benefits to the Project Board during the project. The Benefits Review Plan is maintained by the Project Manager, but the Senior User is responsible for keeping the Project Board up to date.

Question 15

Who represents the interests of those designing, developing, facilitating and implementing the project’s products?

Answer 15

This is the Senior Supplier. This can be a person in the company or one from an outside company.

Question 16

Which two roles in the Project Board can be assigned to one person?

Answer 16

The Executive and the Senior User can be assigned to one person. e.g.: The head of a department that will use the end-product may decide to be both the Executive and the Senior User. This means that a Project Board can have a minimum of two persons.

Question 17

Who runs the project on behalf of the Project Board?

Answer 17

The Project Manager runs the project on behalf of the Project Board. The Project Manager has the responsibility to produce the required products to the required quality within the specified times and cost.

Question 18

Name some of the skills that the Project Manager should have. Which of these skills are used most often? (Tip: Think of the PRINCE2 Themes.)

Answer 18

The Project Manager is required to have many skills, such as Communication, Cost Management, Quality, Change Management, Requirements Analysis or User Needs, Planning, Monitoring, Facilitating and Risk Analysis. Communication is said to take more than 70% of the Project Manager’s time.

Question 19

Which of the following Roles in a Project Team may not be required: the Executive, the Senior User, the Senior Supplier, the Project Manager or the Team Manager?

Answer 19

On smaller projects, the Team Manager may not be required. So the Team Members who create the products can report directly to the Project Manager. The other four roles are mandatory.

Question 20

Can the Project Manager be a member of the Project Board?

Answer 20

The Project Manager cannot be a member of the Project Board.

Question 21

Who has the responsibility to produce the products that were assigned in Work Packages by the Project Manager?

Answer 21

The Team Manager has this responsibility and also the responsibility to provide regular status reports on their progress. This allows the Project Manager to monitor their work.

Question 22

Can the Team Manager create their own Team Plans for their Team or do these have to be created by the Project Manager?

Answer 22

Team Plans are created by the Team Manager. The Project Manager can review the plans.

Question 23

Look at the Process Model Diagram: How many times can the items in blue be executed or done in the project?

Answer 23

All blue items are executed once.

Question 24

Look at the Process Model Diagram: How many times can the items in Green be executed or done in the project?

Answer 24

All green items are executed once for each stage. So if a project has four stages after the Initiation stage, the items in green are mostly executed four times

Question 25

Look at the Process Model Diagram: How many times can the items in Orange be executed or done in the project?

Answer 25

Orange items can be executed multiple times in a stage. e.g.: The Highlight report is what we call a Time-Driven report. It can be sent each week during a stage to the Project Board and the Project Board can give Guidance and Instructions to the Project Manager at any time

Question 26

This process is for Senior Management and shows how the Senior Management controls the project. Which process am I referring to?

Answer 26

This is the Directing a Project Process. It is where the Project Board sits.

Question 27

This is a very short pre-project process that gathers the necessary data to start the project. Which process am I referring to?

Answer 27

This is the Starting up a Project Process and it can also be referred to as the SU process.

Question 28

This process examines the justification of the project and creates the Project Initiation documents. Which process am I referring to?

Answer 28

This is the Initiating a Project process and it can also be referred to as the IP or Initiation Process.

Question 29

This process describes the PM’s day-to-day monitoring and control activities. Which process am I referring to?

Answer 29

This is the Controlling a Stage Process. It is where the Project Manager does most of their work.

Question 30

This process provides a controlled way to complete a stage and plan the next one. Which process am I referring to?

Answer 30

This is the Managing a Stage Boundaries process, also referred to as the SB process.

Question 31

This process delivers the products. It is where the products get produced by the team members. Which process am I referring to?

Answer 31

This is the Managing Product Delivery process, also referred to as the MP process. It is where the Team Manager works.

Question 32

This process confirms delivery of the products and prepares the project for closure. Which process am I referring to?

Answer 32

This is the Closing a Project Process or the CP process. Note: The Project Manager prepares the project for closure but it is closed by the Project Board.

Question 33

What is the name of the document that is written outside the project before the project starts?

Answer 33

This is the Project Mandate and it is usually written by a senior person in the organization.

Question 34

What does the project mandate document consist of? Name the one item that the project mandate should contain and one other item.

Answer 34

According to PRINCE2, the project mandate only has to suggest the Executive and the Project Manager: Other information that can be added to the project mandate are:
• The Main objective of the Project
• The Business Case, which describes the reasons for the project
• Project Scope in high-level terms
• Customers quality expectations

If you know two parts, then it is good.

Question 35

What is known to be the trigger to start the project?

Answer 35

The project mandate document is known to be the trigger to start the project.

Question 36

Which process has the project mandate as an input?

Answer 36

The Starting up a Project process has the project mandate document as an input.

Question 37

Name the two main deliverables of the Starting up a Project process, meaning what are the main outputs of this process?

Answer 37

The Starting up a Project process has two main deliverables:
1. The Project Brief, which includes an outline of the Business Case and the Project
Management Team, Project Product Description, etc…
2. The Initiation Stage Plan

Question 38

Why do you think that Capture Previous Lessons is an activity in the Starting up a Project process? Just answer in your own words why you think this is important.

Answer 38

The organization and the project manager want to avoid making the same mistakes made in other projects. Just imagine how red-faced the Project Manager would be if he made the same three mistakes as in a previous project that was done just six months earlier in the same company. So the project must learn from previous projects, from other people, and from other sources. This is a very important point in PRINCE2 and it is even one of the 7 principles.

Question 39

Which document is created by the Executive and addresses the following in the Starting up a Project process?

1. Business value for the organization,
2. Company objectives,
3. Funding and
4. Risk Information.

This document is then expanded in a lot more detail in the next process.

Answer 39

This is the Outline Business Case. It is a light version of the Business Case and it will be included in the Project Brief document.

Question 40

Why do you think the Outline of the Business Case document is written by the Executive and not by the Project Manager?

Answer 40

The Executive is responsible for, and owns, the Business Case. He will also know much more about the value of the project for the organization and how to measure the value of the expected benefits of the project. The Project Manager’s main concern is to run the project as professionally as possible and deliver the required products on behalf of the Project Board. The Project Manager therefore may know very little about the business side of the organization and will get this information from the Business Case document.

Question 41

List three or four of the questions that the Project Manager will ask while creating the Project Approach.

Answer 41

First, the objective of the Project Approach is to gather the necessary data that will allow the Project Manager to determine such things as the timescale, the cost of the project, how the project can be controlled, and how to manage quality. So some of the questions they will ask are:

• Are there similar projects to learn from?
• What other knowledge and skills are required for the project and who has this knowledge?
• Are their standards to use and if so, what are they?
• What training will be required by the team that will build the products?
• Should we develop parts of the project in house or outsource?
• Should we build from scratch or update an existing product?
• How will maintenance be done in the future?
• What are the quality expectations?

As you can see, the answers to these questions will give important information to the Project Manager, so they can know how best to approach the project.

Question 42

The Project Approach becomes part of which document?

Answer 42

The Project Approach becomes part of the Project Brief.

Question 43

This document is the main document used to provide the necessary information to the Project Board about the project so far. The Project Board will decide if the project will proceed to the Initiation Stage. Which document am I referring to?

Answer 43

The Project Brief provides this information and it is a collection of most of the information gathered in the Starting up a Project process.

Question 44

Who assembles the Project Brief?

Answer 44

The Project Manager assembles the Project Brief.

Question 45

Name two of the parts that make up the Project Brief that were created in the Starting up a Project process. So just think of what was produced in the Starting up a Project process.

Answer 45

The Project Brief contains the following information:

1. A detailed Project Product Description (which includes quality expectations);
2. An Outline of the Business Case (which includes a summary of the known risks);
3. The Project Approach;
4. An Overview of Team Structure and Role Descriptions;
5. The Project Objectives and Scope (which are updated from the project mandate
   document) .

Question 46

In which PRINCE2 process is the first check to see if there is a business reason to start the project? In which other process is the Project Plan created?

Answer 46

The first check to see if there is a business reason to do the project is done in the Starting up a Project process, as the Outline of the Business Case is created in the Starting up a Project process. The Project Plan is created in the Initiating a Project process.

Question 47

Who creates the Stage Plan for the Initiation Stage?

Answer 47

The Project Manager creates the plan for the Initiation Stage. This plan is also referred to as the Initiation Stage Plan.

Question 48

If the command to start the project came from a programme as opposed to corporate management, then what effect would this have on the Starting up a Project process?

Answer 48

Remember that a programme is set up to guide and control a group of similar projects. Therefore, a lot of the work that is done in the Starting up a Project process will have already been done, such as how to structure the project management team, which resources to use, lessons from other projects, which approach to take and the business reasons behind the project. To summarize, the programme will supply most of the information required by the Project Brief, so there will be a lot less work to do in the Starting up a Project process.

Question 49

What is the first decision taken by the Project Board, when they receive the Project Brief and the Initiation Stage Plan as an input?

Answer 49

They will decide if the project is worthwhile for the organization. Therefore, they will decide if the project can proceed to the Initiation Stage. They do not give permission to start the project, only to start the Initiation Stage, which will plan the project in detail and present much more detailed information on the objectives, cost, plan, what exactly will be developed, the expected quality level, and so on.

Question 50

Looking at the diagram, what is the trigger for the Initiation Stage?

Answer 50

The trigger for the Initiation Stage is the decision or authorization by the Project Board in the Authorize initiation” activity. So, if the Project Board does not give this authorization, then the Initiation Stage cannot start.

Question 51

The purpose of this process is to understand the work that needs to be done to deliver the required products and to produce the project plan. Which process am I referring to?

Answer 51

This is the Initiating a Project process, also referred to as the IP process.

Question 52

Name five of the eight activities in the IP process. (Tip: Think of the four related documents and the main documents that make up the Project Initiation Documentation.)

Answer 52

The first four activities are creating the strategy documents, which are:
• The Risk Management Strategy
• The Configuration Management Strategy
• The Quality Management Strategy
• The Communication Management Strategy
Then the 5th is Set Up Project Controls, the 6th is Create the Project Plan, the 7th is Refine the
Business Case and the 8th is Assemble the Project Initiation documentation. You are doing well if
you know five of these.

Question 53

Which document defines how and when the project will communicate to stakeholders? (Tip: This is one of the strategy documents.)

Answer 53

This is the Communications Management Strategy document.

Question 54

Which document defines how products will be managed during the project; who will own the products, where the products will be stored; the naming convention to be used, how to identify and track issues, and what records are to be kept for each product?

Answer 54

This is the Configuration Management Document and it also defines how the issues will be handled in a project.

Question 55

What happens to the Outline Business Case document in the IP process that was created in the SU process?

Answer 55

This document is refined, meaning that it is updated and becomes a full Business Case document. It also uses the information from the project plan, which is created in the IP process, as the Business Case needs to know the cost of the project and how long it will take.

Question 56

What do you think is the last thing that the Project Manager does in the IP process after they have assembled the Project Initiation Documentation? If they don’t do this then the project cannot continue.

Answer 56

The very last thing a Project Manager will do in the IP process is to give the Project Initiation Documentation to the Project Board and then issue a Request to continue with the project. You can see this in the Process Model diagram.

Note: The Project Board will also receive a copy the next Stage Plan from the first Managing a Stage Boundary process.

Question 57

Name four or five documents that make up the Project Initiation Documentation. (Tip: remember that the Project Initiation Documentation is a collection of all documents produced in the SU and IP processes.) If you can name five you are doing well.

Answer 57

First of all, we have the Project Definition, the Project Approach and The Project Management Team Structure, which were originally created in SU process. From the IP process we have the Business Case and the Four Management Strategy documents, which are Quality, Configuration Management, Risk and Communications. The Project Plan, the Project Controls, and information on how PRINCE2 will be tailored to suit the project also are a part of the Project Initiation Documentation

Question 58

Which document contains the following information: Describes how the project will be monitored and controlled, tolerances between the different management levels, number of stages, and the frequency of reporting between the Project Manager and Project Board.

Answer 58

This is the Project Controls document.

Question 59

Which document contains the following: A plan that describes each benefit and defines how and when a benefit will be available and how to measure it.

Answer 59

This is the Benefits Review Plan.

Question 60

Which process normally happens after the Controlling a Stage process and can also happen after the IP process?

Answer 60

This is the Managing a Stage Boundary process, also known as the SB process.

Question 61

The outputs of this process are the End Stage Report and the Next Stage Plan. Which process am I referring to?

Answer 61

The main outputs of the SB process are normally the End Stage Report and the Next Stage Plan; otherwise it is the Exception Plan.

Question 62

What is the 2nd Control point for the Project Board? You can see this by looking at the Process Model Diagram.

Answer 62

Authorize a project is the 2nd Control Point and 2nd Activity for the Project Board. This is where they evaluate the information in the Project Initiation Documentation and decide if the project can continue or not.

Question 63

Who gives authorization for the project to start and for the first stage after the IP stage to begin?

Answer 63

The Project Board gives two authorizations; they are:

1) Authorize the project so the project can start, and
2) Authorize Stage or Exception Plan.

They also approve the Project Initiation Documentation and give a Notification to the Corporate or Programme Management that the project has started.

Question 64

Who does most of the work in the Controlling a Stage process?

Answer 64

Most of the work performed in the Controlling a Stage process is performed by the Project Manager. You can see from the diagram that the Controlling a Stage process is in the Management level.

Question 65

How many times does the “Controlling a Stage Process” normally happen in a project?

Answer 65

This is a trick question as each project will be different and can have from two to many stages. The number of stages depends on a number of factors, including the complexity of the products to be produced.

Question 66

What process does the Controlling a Stage process work with to deliver the specific products?

Answer 66

The controlling a stage process works with the Managing Product Delivery process to create and deliver the specific products. The project was started to create the specific products, which are the products that users want from the project.

Question 67

What contains information on one or more products to be developed, which includes such information as product descriptions, planning data, and constraints? This becomes the agreement between the Project Manager and the Team Manager.

Answer 67

This is the Work Package.

Question 68

Who creates the Team Plan to create the products in the Managing Product Delivery process?

Answer 68

The Team Manager creates the Team Plan and the Project Manager can review them.

Question 69

What is the name of the report created by the Team Manager on a regular basis to keep the Project Manager up to date on the progress of the product development?

Answer 69

This is the Checkpoint Report. It is a progress report of the information gathered at a Checkpoint meeting.

Question 70

For smaller projects where there is no Team Manager, who do the Team Members report to?

Answer 70

The Team Members will then report directly to the Project Manager.

Question 71

Name two of the four outputs from the MP process?

Answer 71

The four main outputs of the MP process are:

• Team Plan: This plan is prepared by the Team Manager and is the first output.
• Checkpoint Reports: These are regular reports from the Team Manager to the PM
• Quality Register: This register is updated, as each product is tested after development by the testers. The Quality Register is also used by the Project Manager to check on progress.
• Completed Work Package: This is the name given to the group of completed products that
are handed back to the Project Manager.

Question 72

What is the name of the report that is sent by the Project Manager on a regular basis to the Project Board during the Controlling a Stage process?

Answer 72

This is the Highlight Report. It provides a summary of the stage versus the stage plan, and also information on tolerances, potential issues, products completed, next work packages and corrective actions.

Question 73

What is the name of the report created by the Project Manager and sent to the Project Board only if the current stage is forecast to go out of focus so that there is an issue to report?

Answer 73

The name of this report is the Exception Report. It provides an overview of why the stage will most likely go out of tolerance, and then includes different options to get the project back on track and assess the impact on the Business Case, as this issue will most likely increase the cost of the project.

Question 74

If the Project Board agrees with the recommended option in the Exception Report, what will they request next?

Answer 74

The Project Board will request an Exception Plan, which will replace the current Stage Plan and therefore allow the Project Manager to complete the current stage.

Question 75

Why do you think the Project Plan is updated in the Stage Boundary process?

Answer 75

The Project Plan should always be updated during the project to show the true status or actual progress of the project. The best time to do this is at the end of each stage, which is the Stage Boundary process. So if you look at the Project Plan at the end of the Stage Boundary process you will see:

• Exactly what products have been developed to date
• A forecast for the rest of the project, including a forecast for the next stage.

Question 76

What is the name of the report from the Managing a Stage Boundary process that provides a detailed report on the results of the Current Stage and compares the stage performance to the Stage Plan?

Answer 76

This is the End Stage Report.

Question 77

Why is the business case updated in the SB process?

Answer 77

At the end of a stage, it is a good time to update the Business Case and check if the project is still viable and worth doing. From a business case point of view, you are interested to know if the project cost will increase or decrease and how this will affect the business case. So it is a good time to evaluate the business case after updating the Project Plan, which is also updated in the SB process, as the timescale and cost information may have changed.

Question 78

What do we mean by the “Exception Plan” in the Directing a Project activity?

Answer 78

The Project Board can do one of two things in this activity:
• They can Authorize the Next Stage; this happens if the current stage has been done
correctly and if they agree with the next Stage Plan; or
• They have to Authorize an Exception Plan to allow the Project Manager to complete the
current stage.

Question 79

In small projects, can the “Authorization a Stage or Exception Plan” activity be less formal?

Answer 79

Yes, in small projects this activity can be a lot less formal. In fact, the Project Manager can just arrange a meeting with the Executive to discuss the necessary topics.

Question 80

Which 3 documents that are continually updated during the project would the Project Board also view and consider during the “Authorization a Stage or Exception Plan” activity? (Tip: These are updated during the Stage Boundary process by the Project Manager and one of these is a register.)

Answer 80

The 1st is the Project Plan, so the Board can compare where they are in the project, as compared to the original plan. The 2nd is the Business Case, as the Executive needs to know that the project is still worth doing. The 3rd is the Risk Register, as these will change throughout the project and therefore will affect the project.

Question 81

If the Project Board approves the Exception Plan, will the Project Manager start a new Stage or complete the current stage?

Answer 81

The objective of the Exception Plan is to complete the current stage. The Exception plan will be necessary if the stage project went out of tolerance (e.g.: 20% more billable days than expected) and the Project Manager has to get permission from the Project Board to complete the current stage.

Question 82

What process follows the Controlling a Stage process in the final stage after all products have been delivered?

Answer 82

The last Controlling a Stage process in the final stage is followed by the Closing a Project process instead of the Managing a Stage Boundary process.

Question 83

Does the Project Manager close the Project or Prepare the Project for closure in the Closing a Project process?

Answer 83

The Project Manager will take the necessary actions to prepare for project closure. Only the Project Board can actually close a project.

Question 84

What is the name given to the instruction from the Project Board to shut down the project before its expected end date?

Answer 84

This is referred to as a Premature Closure. It is a notification sent from the Project Board to the Project Manager to prepare the project for closure; this can happen anytime in a project.

Question 85

Can you think of an example where the Project Board might issue a Premature Closure?

Answer 85

There is no one answer to this question:
However, you should compare your answer to the examples to confirm that you are on the right track:

e. g.: An important point of the Business Case was to be the first company on the market with a new product, but the Project Board found out that a competitor will release a similar product 3 months earlier, so they will stop the project.
e. g.: The EC may have passed a new environmental law that will become active in 6 months and a large environment tax will be placed upon all products that don’t meet these specifications.
e. g.: A civil war broke out in the main country where the raw material comes from; therefore, prices have more than doubled. The price is not expected to drop for at least two years.

I hope you like these examples.

Question 86

In the Closing a Project Process, what does the Project Manager do with all the Lessons that have been learned in the project and have been documented in the Lessons Log?

Answer 86

These lessons are placed in the Lesson Report document so they can be passed on and shared with future projects.

Question 87

Which report is created by the Project Manager in the Closing a Project process and compares the project performance or project actuals with the original project objectives that are listed in the Project Initiation Documentation?

Answer 87

This is the End Project Report. It is shown as the ERP document in the diagram.

Question 88

Why is the Benefits Review plan updated in the Closing a Project process?

Answer 88

The expected benefits listed in the Business Case confirming that the Benefits have been met during the project is an important control for the Project Board. The Senior User has the task of confirming that benefits have been delivered to the Project Board during the project, but what happens to the Benefits that won’t be realized until after the project has been put into production?

e. g.: the project could have been to create a new Sales application for the company and one of the benefits would be to have 20% of the orders via the Web. This will not be realized until the project is complete and the product is in production for some time. So, the project manager or the Senior User can update the Benefits Review plan to show what benefits have already been realized and plan when the benefit review actions will take place after the project has completed:
e. g.: in 6 months or 1 year’s time.

Question 89

What is the name of the document created in the Closing a Project process that includes information on outstanding issues that are taken from the Issue and Risk Log and require follow-up action after the project has ended?

Answer 89

This is the Follow-Up on Actions recommendation and it is given to the group who will provide support or maintenance to the products after the project is complete.

Question 90

What documents do you think the Project Board review or approve in the final activity “Authorize a Project Closure”? (Tip: Just think of the documents that the Project Manager gives to them at the end of the Closing a Project process.)

Answer 90

The Project Board does the following:

1. Review the End Project Report and compare them to the original plan.
2. Review the Lessons Report and pass it on so it can benefit future projects.
3. Review and approve the Benefits Review plan, as reviewing the benefits will continue to
   be done after the project shuts down.
4. Confirm that the project has met the Business Case by comparing the current Business
   Case to the original one and comparing Benefits, Cost, Risks and Return on Investment.

Question 91

What is the very last thing that the Project Board does during the “Authorize a Project Closure” activity?

Answer 91

The Project Board issues the Project Closure Notification, which will announce to all stakeholders that the project will end on a certain date.