The project is now in stage 2. The Project Manager has heard about the possibility of a competitor also
producing a calendar to be delivered earlier than the target date for this project. There is a threat that the early
release of a competitor's calendar may weaken the impact of the MNO Manufacturing Company calendar,
thereby reducing the anticipated benefits of the Calendar project.
Which 2 statements should be recorded under the Proximity heading?

• A.Imminent risks are those which may occur within two weeks.
• B.The risk of MFH having no outsourcing experience will be categorized as Stage 4 proximity.
• C.Any risk with a proximity category of imminent will be estimated as having a very high impact.
• D.Proximity categories for this project are: Imminent; Within the stage; Within the project; Beyond the project.
• E.The risk of staff leaving the organization will be categorized as beyond the project proximity.

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Additional Information
Extract from the Communication Management Strategy.
The project information in the table below is true, but it may not be recorded under the correct heading or be in the correct document.

Using the Project Scenario, select the appropriate response to each of the following 5 questions which have been raised by the Project Board.
The project is now at the end of the initiation stage. Having decided that the Calendar project is a relatively simple project, the Project Manager combined the Starting Up a Project process and the Initiating a Project process. No Project Brief has been produced. Instead the Project Manager used the project mandate to produce a simple Project Initiation Documentation (PlO). The PlO includes the Business Case, a product checklist and several Product Descriptions, Including the Project Product Description. Short sections are also included for each of the strategies and the controls to be applied. The Project Manager has elected to use the Daily Log to record all risks, issues, lessons and quality results.
After the initiation stage there will be two further stages during which a small number of Work Packages will be authorized. While these are being managed, the Project Manager will hold regular checkpoints, which will support the production of weekly Highlight Reports to the Project Board.
This question provides a number of changes which may or may not be required to the Extract from the Communication Management Strategy provided in the additional information.
Which statement applies to the Timing of communication activities section?

• A.Delete entry 9 because activities for controlling the project should be planned as part of Project controls in the Project Initiation Documentation.
• B.No change to entry 9 because it describes the timing of performance reports.
• C.Delete entry 10 because Highlight Reports are a Project Board control, the frequency of which should be recorded in the Project controls section of the Project Initiation Documentation.

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Which management product defines the detailed nature, purpose and function of a product?

• A.Plan
• B.Quality Register
• C.Project Product Description
• D.Product Description

Correct Answer: D

Explanation/Reference:
Testlet 1
Product Summary
A list of customers will be collated. This will use existing information from the Accounts department about current customers, and existing information from the Marketing department about prospective customers.
Using the tariff of mailing costs available from the Post Office, a production cost forecast will be produced to allow the CEO and the Marketing Director to decide whether to continue with the project. If they decide to continue, they will give the approval to launch the internal label design competition. Competition rules will be required to communicate details of the competition to the staff. The chosen label design will then be selected from the competition entries.
The photos for the calendar must be based on existing photo design ideas available from the Marketing department. The selected photos will be chosen from these. Monthly calendar displays will be created to show the required layout of each page.
Product Breakdown Structure (contains errors)

Extract from Stage Plan for stage 3.
(All entries are true statements but may not be shown under the correct heading or in the correct document).

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CHANGE
Here are three items of information relating to controlling change in the Health and Safety Training Project.
In which management product (A-E) should each item be recorded?
Choose only one product for each item. Each product can be used once, more than once, or not at all.

Correct Answer:

Explanation

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Scenario
Additional Information
During the initiation stage the Project Manager met with the Marketing Director to find out more about the requirements of the promotional calendar and recorded the following notes:
There has been a reduction in the order numbers at the MNO Manufacturing due in part to the increased marketing activities of its competitors. 10% of customers have not re-ordered in this financial year and staff morale is poor. A number of skilled staff have left as a result and replacement staff have not been recruited due to the reduced operation. If the project is successful, a recruitment campaign will be required to fill the existing staff vacancies and there may be a requirement for additional staff. Operational costs are likely to increase because skilled staff are expensive and difficult to find.
In financial terms, there were a total of 1,500 orders in the last financial year, each with an average profit of
£2k. The Marketing department believes that sending a promotional calendar to our current and prospective customers would increase orders by at least 10% with a minimum of 10 further orders from the list of prospective customers within 12 months from the date of distribution.
The Marketing Director will be funding the project from the business marketing budget. She believes that the effect of a good company image portrayed by a successful calendar would last into a second year. She has forecast the same increase in orders for a second year and predicts that the annual employee satisfaction survey will show a measurable improvement in staff morale.
A number of alternatives were explored, including:
20% discount for all repeat customers - not cost-effective and very short term

A promotional calendar as a free Christmas gift - would target current and prospective customers and

the benefits would last into a second year
A series of television and press advertisements was too expensive

A direct mail shot to all customers - benefit would be short term

Creation of an internet website - would not suit all customers

The calendar is seen as the favored option, as long as the company's competitors do not increase their marketing activity. Whilst the Marketing department wants a very high quality, glossy product, the project management team must be aware of the cost this will incur.
Which 2 statements should be recorded under the Costs heading?

• A.The new company logo is estimated to cost £4k.
• B.Project costs are estimated to be a total of £26.5k.
• C.10 further orders with an average profit of £2k will deliver a benefit of £20k in the first year.
• D.The MNO marketing budget this year is £120k.
• E.The project will be funded from the business marketing budget

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