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Question 158

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?

    Correct Answer: A

    It applies the principle well, because tolerances should be set for the related aspects of project performance for each stage. Setting tolerances for time, cost, scope, and risk ensures that the project manager can manage effectively within these boundaries. This allows the project board to focus on exceptions where the tolerances are exceeded, adhering to the 'manage by exception' principle.

Discussion
ManikRoyOption: A

Rectifying my previous answer, correct answer is option A - tolerances should be set for the related aspects of project performance for each stage. Tolerance like Benefit is only applicable for entire project level and not for each stage.

ManikRoyOption: C

Refer page 24. Delegating authority from one management level to the next by setting tolerances against six aspects of performance for the respective level of the plan:

ravi_aws

"should be set for each stage against each of the six aspects of project performance" -- C is incorrect because it's not necessary to set tolerance for all six aspects.

ravi_awsOption: B

B Option A is incorrect because it only describes the need to set tolerances for the related aspects of project performance for each stage, but does not address the 'manage by exception' principle. Option C is incorrect because it suggests that tolerances should be set for each stage against each of the six aspects of project performance, which is not necessary. Option D is incorrect because regular reporting of progress alone does not give the project board the required confidence, but the use of exception reports to raise exceptions is also necessary

ravi_aws

Sorry, A is better choice as setting tolerances for related aspects is highlighted in the question