L6M5 Strategic Programme Leadership Questions and Answers

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Project 1 - Parametric & Positional Power

Parametric estimation uses an algorithm based on existing data to estimate project costs.

Positional power applies because the leader is the founder of the organisation.

Project 2 - Analogous & Expert Power

Analogous estimation uses historical project data to estimate costs, aligning with the Head of R&D using past projects.

Expert power applies since the project lead is a PhD-qualified Data Scientist.

Project 3 - Bottom-up & Positional Power

Bottom-up estimation involves creating a Bill of Materials and summing up individual costs, which matches this project.

Positional power applies because the project leader is a key stakeholder.

Project 4 - 3-Point Estimate & Negative Power

3-Point Estimation calculates the best, worst, and most likely cost scenarios, matching the given description.

Negative power applies because the leader has the authority to cancel the project at any time.

Project 5 - Expert Judgement & Personal Power

Expert Judgement applies because the leader used his own research to determine the budget.

Personal power applies because the project leader is well-liked and selected a team he is comfortable with.

Fixed Lump Sum contracts allow limited price changes under specific conditions (p.55), such as client variation requests, force majeure, or inflation adjustments. Firm Fixed Price contracts, however, do not allow any changes. [P.55]

Prince2 has a defined "Closing a Project" phase (p.136).

Monte Carlo (A) relates to risk analysis.

Critical Path (B) maps dependencies but does not specify closure.

MRP (C) is used for inventory planning. [P.136]

Cost-plus pricing is best suited for high-risk environments (p.93), such as fluctuating commodity markets. It reduces risk for suppliers by allowing cost adjustments based on actual expenses plus a margin. Option A is incorrect because low-risk projects favor fixed pricing. [P.93]

The CFO is well-liked and uses personal influence (charisma) rather than authority based solely on position.

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Communication is direct and meetings are therefore shorter. This is from p. 182:"In low-context cultures, communication is much more direct and explicit, which can result in shorter meetings and a reliance on rules to govern procedures." CIPS gives the UK and USA as examples of a low-context culture.

Domain: 3.2

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Value Engineering (p.100) is used to optimize costs and improve profitability in competitive industries. It leverages supplier relationships to cut costs and increase value. Variance Analysis (A) is for budgeting, and Consortium Procurement (C) relates to bulk purchasing, which is not the issue here. [P.100]

A termination for convenience clause outlines the responsibilities when a contract is ended early by mutual agreement (p.135).

Returning advance payments ensures fairness.

Destroying confidential data prevents misuse.

Smooth service transition minimizes disruptions.

A review meeting is not mandatory, so it is incorrect. [P.135]

PPP contracts are used when budgets are tight and to monetise under-performing assets. They are not mandated by law nor do they inherently ensure high quality or less administration.

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