Which statement is TRUE with regard to technical stages?

There are two time driven controls in PRINCE2, which are they?

Who is responsible for confirming stage and project progress against agreed tolerances?

Project Scenario
Calendar Project (Note: The companies and people within the scenario are fictional.)
There has been a reduction in fie number of orders at the MNO Manufacturing Company due in

—————part to the increased marketing activities of its competitors. To help counter this, the company has
decided to create a promotional calendar for next year for all its current and prospective
customers. The end product of this project will be a prepared calendar pack, ready for printing.
The design of the calendar will be similar to one sent out previously, and must reflect the company
image as described in the existing corporate branding standards. Another project is currently
producing a new company logo when is to be printed on each page of the promotional calendar.
The prepared calendar pack will consist of:
Design for each month – correctly showing at public holidays and new company logo
Selected photographs- 12 professionally-produced photographs, showing different members of
staff
Selected paper and selected envelope – for printing and mailing the calendar
Chosen label design – a competition to design a label will be held as part of this project
List of customers – names and addresses of customers to whom the calendar will be sent.
The project is currently in initiation and will have two further stages:
Stage 2 will include tie activities to:
Create the customer fast using information from the Accounts and Marketing departments
Confirm compliance with the Data Protection Legislation
Create a design for each month – this will be done by the internal creative team
Select and appoint a professional photographer
Gather photograph design ideas from previous project and agree photographic session schedule
Prepare a production cost forecast
Select paper and envelope.
Stage 3 will include the activities to:
Produce and select tie professionally-taken photographs
Hold the label design competition and choose the label design
Assemble the prepared calendar pack.
A production cost forecast, based on the options and costs for the paper, envelope, printing and
marketing of the calendar is to be produced in stage 2. However, the actual production and
distribution of the calendars is not within the scope of the project. The product cost forecast will be
reviewed by the Project Board to determine whether tie project should continue.
It is now 05 October and the prepared calendar pack must be delivered to the print company by 30
November, to enable printing and distribution of the calendar in time for Christmas. The cost of the
activities to develop the specialist products and the cost of the project management activities are
estimated to be £20,000. There is a project time tolerance of +1 week /-2 weeks and a project cost
tolerance of +£6,000 / -£6,000. A change budget of £500 has been allocated but there is no risk
budget.
At the end of initiation there is +1 week 1-2 weeks time tolerance for this project. Which statement
is true?

————A. There can be no time tolerances for any of the stages.

Project Scenario
Calendar Project (Note: The companies and people within the scenario are fictional.)
There has been a reduction in fie number of orders at the MNO Manufacturing Company due in
part to the increased marketing activities of its competitors. To help counter this, the company has
decided to create a promotional calendar for next year for all its current and prospective
customers. The end product of this project will be a prepared calendar pack, ready for printing.
The design of the calendar will be similar to one sent out previously, and must reflect the company
image as described in the existing corporate branding standards. Another project is currently
producing a new company logo when is to be printed on each page of the promotional calendar.
The prepared calendar pack will consist of:
Design for each month – correctly showing at public holidays and new company logo
Selected photographs- 12 professionally-produced photographs, showing different members of
staff
Selected paper and selected envelope – for printing and mailing the calendar
Chosen label design – a competition to design a label will be held as part of this project
List of customers – names and addresses of customers to whom the calendar will be sent.
The project is currently in initiation and will have two further stages:
Stage 2 will include tie activities to:
Create the customer fast using information from the Accounts and Marketing departments
Confirm compliance with the Data Protection Legislation
Create a design for each month – this will be done by the internal creative team
Select and appoint a professional photographer
Gather photograph design ideas from previous project and agree photographic session schedule
Prepare a production cost forecast
Select paper and envelope.

—Stage 3 will include the activities to:
Produce and select tie professionally-taken photographs
Hold the label design competition and choose the label design
Assemble the prepared calendar pack.
A production cost forecast, based on the options and costs for the paper, envelope, printing and
marketing of the calendar is to be produced in stage 2. However, the actual production and
distribution of the calendars is not within the scope of the project. The product cost forecast will be
reviewed by the Project Board to determine whether tie project should continue.
It is now 05 October and the prepared calendar pack must be delivered to the print company by 30
November, to enable printing and distribution of the calendar in time for Christmas. The cost of the
activities to develop the specialist products and the cost of the project management activities are
estimated to be £20,000. There is a project time tolerance of +1 week /-2 weeks and a project cost
tolerance of +£6,000 / -£6,000. A change budget of £500 has been allocated but there is no risk
budget.
During stage 2, if the Project Manager decides to recommend that the Project Plan is revised to
finish three weeks later, which statement is correct?

Project Scenario
Calendar Project (Note: The companies and people within the scenario are fictional.)
There has been a reduction in fie number of orders at the MNO Manufacturing Company due in
part to the increased marketing activities of its competitors. To help counter this, the company has
decided to create a promotional calendar for next year for all its current and prospective
customers. The end product of this project will be a prepared calendar pack, ready for printing.
The design of the calendar will be similar to one sent out previously, and must reflect the company

—————image as described in the existing corporate branding standards. Another project is currently
producing a new company logo when is to be printed on each page of the promotional calendar.
The prepared calendar pack will consist of:
Design for each month – correctly showing at public holidays and new company logo
Selected photographs- 12 professionally-produced photographs, showing different members of
staff
Selected paper and selected envelope – for printing and mailing the calendar
Chosen label design – a competition to design a label will be held as part of this project
List of customers – names and addresses of customers to whom the calendar will be sent.
The project is currently in initiation and will have two further stages:
Stage 2 will include tie activities to:
Create the customer fast using information from the Accounts and Marketing departments
Confirm compliance with the Data Protection Legislation
Create a design for each month – this will be done by the internal creative team
Select and appoint a professional photographer
Gather photograph design ideas from previous project and agree photographic session schedule
Prepare a production cost forecast
Select paper and envelope.
Stage 3 will include the activities to:
Produce and select tie professionally-taken photographs
Hold the label design competition and choose the label design
Assemble the prepared calendar pack.
A production cost forecast, based on the options and costs for the paper, envelope, printing and
marketing of the calendar is to be produced in stage 2. However, the actual production and
distribution of the calendars is not within the scope of the project. The product cost forecast will be
reviewed by the Project Board to determine whether tie project should continue.
It is now 05 October and the prepared calendar pack must be delivered to the print company by 30
November, to enable printing and distribution of the calendar in time for Christmas. The cost of the
activities to develop the specialist products and the cost of the project management activities are
estimated to be £20,000. There is a project time tolerance of +1 week /-2 weeks and a project cost
tolerance of +£6,000 / -£6,000. A change budget of £500 has been allocated but there is no risk
budget.
During stage 2, an early review of the photo design ideas from the Marketing department has
highlighted the need for engineering machinery to be operating in the background during the photo
sessions. This requires a change to the baselined Product Description for the photos. What action
should the Project Manager take?

————A. Log the change in the Issue Register as a request for change.

Project Scenario
Calendar Project (Note: The companies and people within the scenario are fictional.)
There has been a reduction in fie number of orders at the MNO Manufacturing Company due in
part to the increased marketing activities of its competitors. To help counter this, the company has
decided to create a promotional calendar for next year for all its current and prospective
customers. The end product of this project will be a prepared calendar pack, ready for printing.
The design of the calendar will be similar to one sent out previously, and must reflect the company
image as described in the existing corporate branding standards. Another project is currently
producing a new company logo when is to be printed on each page of the promotional calendar.
The prepared calendar pack will consist of:
Design for each month – correctly showing at public holidays and new company logo
Selected photographs- 12 professionally-produced photographs, showing different members of
staff
Selected paper and selected envelope – for printing and mailing the calendar
Chosen label design – a competition to design a label will be held as part of this project
List of customers – names and addresses of customers to whom the calendar will be sent.
The project is currently in initiation and will have two further stages:
Stage 2 will include tie activities to:
Create the customer fast using information from the Accounts and Marketing departments
Confirm compliance with the Data Protection Legislation
Create a design for each month – this will be done by the internal creative team
Select and appoint a professional photographer
Gather photograph design ideas from previous project and agree photographic session schedule
Prepare a production cost forecast
Select paper and envelope.

—Stage 3 will include the activities to:
Produce and select tie professionally-taken photographs
Hold the label design competition and choose the label design
Assemble the prepared calendar pack.
A production cost forecast, based on the options and costs for the paper, envelope, printing and
marketing of the calendar is to be produced in stage 2. However, the actual production and
distribution of the calendars is not within the scope of the project. The product cost forecast will be
reviewed by the Project Board to determine whether tie project should continue.
It is now 05 October and the prepared calendar pack must be delivered to the print company by 30
November, to enable printing and distribution of the calendar in time for Christmas. The cost of the
activities to develop the specialist products and the cost of the project management activities are
estimated to be £20,000. There is a project time tolerance of +1 week /-2 weeks and a project cost
tolerance of +£6,000 / -£6,000. A change budget of £500 has been allocated but there is no risk
budget.
As the project approaches the end of stage 2, the Project Manager has requested a Product
Status Account to ensure that all products are at their expected point of development. Although
the list of customers has been quality reviewed, it has not been baselined because the Marketing
department have not provided all of the prospective customers’ details. What initial action should
the Project Manager take?

Project Scenario
Calendar Project (Note: The companies and people within the scenario are fictional.)
There has been a reduction in fie number of orders at the MNO Manufacturing Company due in
part to the increased marketing activities of its competitors. To help counter this, the company has
decided to create a promotional calendar for next year for all its current and prospective

customers. The end product of this project will be a prepared calendar pack, ready for printing.
The design of the calendar will be similar to one sent out previously, and must reflect the company
image as described in the existing corporate branding standards. Another project is currently
producing a new company logo when is to be printed on each page of the promotional calendar.
The prepared calendar pack will consist of:
Design for each month – correctly showing at public holidays and new company logo
Selected photographs- 12 professionally-produced photographs, showing different members of
staff
Selected paper and selected envelope – for printing and mailing the calendar
Chosen label design – a competition to design a label will be held as part of this project
List of customers – names and addresses of customers to whom the calendar will be sent.
The project is currently in initiation and will have two further stages:
Stage 2 will include tie activities to:
Create the customer fast using information from the Accounts and Marketing departments
Confirm compliance with the Data Protection Legislation
Create a design for each month – this will be done by the internal creative team
Select and appoint a professional photographer
Gather photograph design ideas from previous project and agree photographic session schedule
Prepare a production cost forecast
Select paper and envelope.
Stage 3 will include the activities to:
Produce and select tie professionally-taken photographs
Hold the label design competition and choose the label design
Assemble the prepared calendar pack.
A production cost forecast, based on the options and costs for the paper, envelope, printing and
marketing of the calendar is to be produced in stage 2. However, the actual production and
distribution of the calendars is not within the scope of the project. The product cost forecast will be
reviewed by the Project Board to determine whether tie project should continue.
It is now 05 October and the prepared calendar pack must be delivered to the print company by 30
November, to enable printing and distribution of the calendar in time for Christmas. The cost of the
activities to develop the specialist products and the cost of the project management activities are
estimated to be £20,000. There is a project time tolerance of +1 week /-2 weeks and a project cost
tolerance of +£6,000 / -£6,000. A change budget of £500 has been allocated but there is no risk
budget.
Whilst identifying the mailing costs for the calendars the Project Manager was surprised to find the
costs could vary considerably depending on the size of the package and the delivery service used.
For the purpose of this project, the Project Manager has selected an appropriate service but feels
that a corporate standard for postage would have reduced the time and effort invested. It could

———reduce the company’s overheads by up to £20k per year. How should the Project Manager record
this observation within the project?

Project Scenario
Calendar Project (Note: The companies and people within the scenario are fictional.)
There has been a reduction in fie number of orders at the MNO Manufacturing Company due in
part to the increased marketing activities of its competitors. To help counter this, the company has
decided to create a promotional calendar for next year for all its current and prospective
customers. The end product of this project will be a prepared calendar pack, ready for printing.
The design of the calendar will be similar to one sent out previously, and must reflect the company
image as described in the existing corporate branding standards. Another project is currently
producing a new company logo when is to be printed on each page of the promotional calendar.
The prepared calendar pack will consist of:
Design for each month – correctly showing at public holidays and new company logo
Selected photographs- 12 professionally-produced photographs, showing different members of
staff
Selected paper and selected envelope – for printing and mailing the calendar
Chosen label design – a competition to design a label will be held as part of this project
List of customers – names and addresses of customers to whom the calendar will be sent.
The project is currently in initiation and will have two further stages:
Stage 2 will include tie activities to:
Create the customer fast using information from the Accounts and Marketing departments
Confirm compliance with the Data Protection Legislation
Create a design for each month – this will be done by the internal creative team
Select and appoint a professional photographer

——Gather photograph design ideas from previous project and agree photographic session schedule
Prepare a production cost forecast
Select paper and envelope.
Stage 3 will include the activities to:
Produce and select tie professionally-taken photographs
Hold the label design competition and choose the label design
Assemble the prepared calendar pack.
A production cost forecast, based on the options and costs for the paper, envelope, printing and
marketing of the calendar is to be produced in stage 2. However, the actual production and
distribution of the calendars is not within the scope of the project. The product cost forecast will be
reviewed by the Project Board to determine whether tie project should continue.
It is now 05 October and the prepared calendar pack must be delivered to the print company by 30
November, to enable printing and distribution of the calendar in time for Christmas. The cost of the
activities to develop the specialist products and the cost of the project management activities are
estimated to be £20,000. There is a project time tolerance of +1 week /-2 weeks and a project cost
tolerance of +£6,000 / -£6,000. A change budget of £500 has been allocated but there is no risk
budget.
The team member collating the list of customers has now forecast that it will NOT be complete by
the end of this stage as originally planned, due to a number of new prospective customers’ details
not yet being available. What action should the team member take?

Scenario:
Techniques, processes and procedures
1. Any threat that may result in a loss of MFH data must be escalated immediately.
Joint agreements
2. Work is to start at the beginning of week 2 (Stage 4).
3. The project will take two years to complete, at an estimated cost of £2.5m.
Tolerances
4. None.
Constraints
5. MFH staff must not be involved in any heavy lifting during the removal of existing IT equipment.
6. Installation work must take place during MFH normal working hours.

7. +£10,000 / -£25,000.
Reporting arrangements
8. Highlight Report every Monday by 10.00 am.
9. The report must contain a summary of all products worked on during the previous week.
10. Project Manager must be notified of any issues immediately by telephone.
Problem handling and escalation
11. Impact analysis of all issues must be completed within 24 hours.
Extracts or references
12. The Stage Plan for stage 4 is available from Project Support.
Approval method
13. Project Assurance will review the completed Work Package and confirm completion.
Which 2 statements apply to either the Development Interfaces or Operations and maintenance
interfaces sections?