Exam PRINCE2-Foundation topic 1 question 482 discussion

The 'manage by exception' principle in PRINCE2 involves setting tolerances for project performance and allowing the project manager to manage the project within these tolerances. If any aspect of the project is forecast to exceed the tolerance, it must be escalated to the project board for resolution. This ensures that the project board is only involved when necessary, allowing the project manager to focus on day-to-day management while maintaining control over significant issues.

B. Whenever there is a forecast to exceed a tolerance, it should be escalated to the project board. Explanation: Under the "manage by exception" principle in PRINCE2, tolerances are established at different levels (e.g., project, stage, and team) to define acceptable limits for deviation without requiring escalation. If a forecast indicates that tolerances will be exceeded, this constitutes an exception, and the matter must be escalated to the next management level (e.g., the project board). This ensures appropriate oversight while empowering teams to operate autonomously within their delegated authority.

This aligns with the ‘manage by exception’ principle, which means that if there is a forecast that a tolerance will be exceeded, it should be escalated to the appropriate management level (in this case, the project board) for decision-making.

Mod Please change this is wrong;

A is WRONG correct answers is B!! Why the other options are incorrect: A. Whenever authority is delegated to the project manager, the project board should set tolerances for the stage: While tolerances are important for delegation, they are not only set when delegating to the project manager. They are set for all six aspects of project performance.   C. Whenever there is a forecast to exceed a tolerance, it should be resolved at the next monthly project board meeting: Escalation should happen as soon as a potential tolerance breach is identified, not wait for a scheduled meeting. D. Whenever authority is delegated to the team manager, the focus should be on delivering within time and cost tolerances: While time and cost are important, tolerances should be set for all six aspects of project performance, not just time and cost.