PRINCE2 PRINCE2-7-Foundation Practice Test - Questions Answers, Page 41

The principle of 'manage by exception' in PRINCE2 involves setting limits on delegated authority concerning time, cost, quality, scope, risk, and benefits. Here, the aspect of performance that sets limits against the cost of aggregated threats is 'Cost'. This includes setting tolerances for what can be considered acceptable deviations from the plan before an issue needs to be escalated to a higher authority. Managing by exception helps in efficient use of management time and focuses on deviations that might affect the project's success.

Reference: (PRINCE2 7 Foundation Handbook, AXELOS)

A leadership activity within a PRINCE2 project involves several responsibilities, one of which is agreeing on work packages with team managers. This agreement includes specifying the tools and techniques to be used for product delivery. This activity is crucial for ensuring clarity and mutual understanding of how work is to be conducted, facilitating effective delegation and accountability within the project team.

Reference: (PRINCE2 7 Foundation Study Guide, AXELOS)

hen the project board reviews the Project Initiation Documentation (PID), it is essential to ensure that the PID is aligned with the business objectives. The PID should encapsulate the project's definition, including the reasons for undertaking the project, the benefits expected, and how it aligns with the broader business goals. Ensuring this alignment helps validate that the project remains viable and worthwhile as it progresses.

Reference: (PRINCE2 7 Foundation Handbook, AXELOS)

Effective issue management in PRINCE2 should involve creating new versions of management products whenever a change is approved. This practice ensures that all documentation reflects the most current understanding and agreements regarding the project's scope and requirements. It helps maintain the integrity and relevance of the project documentation throughout its lifecycle, facilitating effective governance and control.

Reference: (PRINCE2 7 Foundation Handbook, AXELOS)

In PRINCE2, the 'Issue and Change Control' procedure encompasses the management of issues throughout the project lifecycle, including capturing, examining, and deciding on issues. Archiving superseded versions is part of the final step in the 'Deciding on changes' phase, where decisions are made on the issues and subsequent actions, including updates to project baselines and documentation, are implemented and archived as necessary.

Reference: PRINCE2 7 Foundation handbook and official resources on issue management technique.

Maintaining the business case during the project lifecycle involves regularly updating it to reflect changes and actual experiences such as incurred costs. This ensures that the project remains viable and aligned with business objectives, as part of the continual justification process. The business case is dynamically managed to reflect any changes in the project's environment and is a fundamental part of the 'business case theme' in PRINCE2.

Reference: PRINCE2 7 Foundation source documents on business case management.

Achieving the principle of 'ensuring continued business justification' involves confirming that the project remains desirable, viable, and achievable throughout its lifecycle. Adapting PRINCE2 to the project's scale of investment and the chosen delivery approach helps maintain its alignment with business justification, ensuring that the project's scale, complexity, importance, capability, and risk are proportionate to the project's objectives and environment.

Reference: PRINCE2 7 Foundation handbook and documents on the principles of PRINCE2.

The purpose of the 'Organizing' practice within PRINCE2 is to establish and define the project management team structure and responsibilities. This includes specifying roles and responsibilities for managing, delivering, and overseeing the project effectively. The organization theme supports project success by ensuring clear definition and communication of who is responsible for various project activities.

Reference: PRINCE2 7 Foundation guide and official PRINCE2 documentation on organizing practices.

In the 'risk management' technique within PRINCE2, considering the organization's environment is essential during the 'Identify' step. This phase involves understanding the context in which the project operates, including external and internal factors that could affect the project. This context is crucial for identifying potential risks that could impact the project's objectives.

Reference: PRINCE2 7 Foundation resources on risk management technique.