ABC Company uses a standard development model to develop courses and uses PRINCE2 to manage these
projects. The objectives from the Health and Safety Training Project have been documented in the business
plan of ABC Company. This business plan has triggered this project. As a result, to save time, the executive
has decided to simplify the 'starting up a project' process. The project mandate will be adapted and becomes
the project brief.
Is this appropriate, and why?

• A.No, because the project brief should be a statement which includes a fuller description of the project.
• B.Yes, because the executive can initiate the project based on the project mandate by passing the 'starting
  up a project' process.
• C.No, because capturing lessons from previous projects identify lessons to be applied to this project.
• D.Yes, because the business outcomes are clear, the project brief can be a sample statement elaborating the
  mandate.

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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to cut costs, better manage suppliers' performance and reduce the confusion caused by inadequate internal controls, outdated standards and outdated technology.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?

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• E.The inadequate controls, outdated standards and outdated technology must be addressed.

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M1ich statement is an appropriate entry for the outline Business Case heading within the Project Brief?

• A.10 year service contract should be agreed with the selected service provider.
• B.The project should be split into four management stages.
• C.External consultants were employed to conduct a feasibility study to identify the options, their likely costs and benefits.
• D.The project will run for two years and the benefits will be realized over 1a years.

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Which of the following is False?
A Successful project management team should.

• A.Ensure appropriate governance by defining responsibilities for directing, managing and delivering the project and clearly defining accountability at all levels
• B.Have an effective strategy to manage communication flows to and from stakeholders
• C.Never be reviewed as members should stay with the team for the duration
• D.Have business, user and supplier stakeholder representation

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Which 2 statements should be recorded under the Business options heading?

• A.The re-engineering of selected business functions would not provide the required outcome.
• B.The lack of up-to-date technology in MFH means a re-engineering of existing services will not necessarily deliver the performance improvements required.
• C.Use external consultants to provide guidance on the detailed design of the outsourced services.
• D.Set up a PRINCE2 project to deliver the outsourced services.
• E.Review a list of service providers to determine a short-list of possible service providers.

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