PRINCE2 Practitioner 6th Edition — Question 32

The executive has set the following tolerances for stage 2:
Time (+/- 1 week)
Cost (+/- ֲ£20,000)
Scope (using MoSCoW prioritization technique)
Risk (based on the risk appetite defined in the risk management approach)
These tolerances have been recorded in the stage plan. The project manager will report progress regularly via highlight reports to the project board and use exception reports to raise exceptions. In addition, the project assurance role will monitor the stage to provide confidence to the project board that exceptions are being reported.
How well does this apply the 'manage by exception' principle, and why?

Answer options

• A. It applies the principle well, because tolerances should be set for the related aspects of project performance for each stage.
• B. It applies the principle well, because the project manager needs to control the project using discrete management stages.
• C. It applies the principle poorly, because tolerances should be set for each stage against each of the six aspects of project performance.
• D. It applies the principle poorly, because it is the regular reporting of progress that should give the project board the required confidence.

Correct answer: C

Explanation

The correct answer is C because the 'manage by exception' principle requires clear tolerances for all aspects of project performance, and the scenario mentions only a few. The other options suggest that the current approach is adequate, but they fail to recognize the need for comprehensive tolerances across all six performance aspects.