Free APMG-International Better-Business-Cases-Practitioner Exam Braindumps (page: 15)

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Using the Scenario, answer the following questions about scoping the proposal and preparing the Strategic Outline Case for the Pittville project.

Decide whether the approach is appropriate for stage 1, and select the response that supports your decision.

There is a risk that the local planning authority may reject proposals for development of the Old Fire Station Headquarters site. This will cause delays to the project.

Should this risk be recorded as an external non-systemic risk within the Strategic Outline Case?

  1. No, because risks should be identified in the Outline Business Case.
  2. No, because this is a service risk associated with the design and build phases of the project.
  3. Yes, because the local planning authority is an external organization.
  4. Yes, because changes to the Old Fire Station Headquarters site will affect the environment.

Answer(s): C



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There is a need to meet regulations that address the needs of those with Learning Difficulties and Disabilities

Should this item be recorded as a dependency within the Strategic Outline Case?

  1. No, because the regulations are an externally imposed parameter or constraint.
  2. No, because dependencies should NOT be recorded within the Strategic Outline Case.
  3. Yes, because any actions or developments required by others should be considered if the success of the project is dependent upon them.
  4. Yes, because success of the project is dependent upon compliance with these regulations.

Answer(s): D



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HOTSPOT
Answer the following question about the costs identified when preparing the Economic Appraisal for the short list options for the Pittville project.

Column 1 contains a list of the costs identified. For each cost in Column 1, decide if the cost should be included in the Economic

Appraisal and select from Column 2 the type of cost it represents. Each selection from Column 2 can be used once, more than once or not at all.

Column 1

1) The additional on-going cost of electricity for the Pittville

University development.

2) The money spent to date on the Old Fire Station

Headquarters site feasibility study and legal advice.

3) The cost of a stand-alone technology cabin with a separate contract for specialist call-out support, paid on an as-needed basis.

4) The Highways Department will have to upgrade the access road to the Old Fire Station Headquarters site.

However, this cost will NOT count against the Pittville project budget.

The Old Fire Station Headquarters site was to be sold but will now be used for the new campus. It is owned by the Council so there is no cost.

6) The car park at Pittville University will need to be expanded if over 1,500 students attend the university.

Column 2

A) NOT included in the Economic Appraisal

B) Fixed cost

C) Variable cost

D) Semi-variable cost

E) Step cost

  1. See Explanation for the Answer.

Answer(s): A

Explanation:

The additional on-going cost of electricity for the Pittville University development should be included in the Economic Appraisal as it represents a C. Variable cost. This is because the cost of electricity will vary depending on the level of usage, which is likely to fluctuate with the operational activities of the university development.

The money spent to date on the Old Fire Station Headquarters site feasibility study and legal advice should be included in the Economic Appraisal as a B. Fixed cost. These are costs that have already been incurred and will not change regardless of the scale of the project moving forward.

The cost of a stand-alone technology cabin with a separate contract for specialist call-out support, paid on an as-needed basis, should be included as a D. Semi-variable cost. The base cost of the cabin is fixed, but the call-out support costs will vary depending on the frequency of the need for specialist support.

The Highways Department's upgrade of the access road to the Old Fire Station Headquarters site, even though it will not count against the Pittville project budget, should still be considered in the Economic Appraisal to understand the full economic impact of the project. However, since it does not impact the project budget directly, it could be argued that it is

A. NOT included in the Economic Appraisal from the project's budget perspective but might be acknowledged in a broader economic impact analysis.

The use of the Old Fire Station Headquarters site, which is owned by the Council and was to be sold but will now be used for the new campus, represents an opportunity cost but not a direct financial cost to the project. Therefore, it might be A. NOT included in the Economic Appraisal as a direct cost but could be considered in terms of forgone revenue or alternative use value in a broader economic analysis.

The need to expand the car park at Pittville University if over 1,500 students attend represents a E. Step cost. This cost will not occur until a certain threshold (in this case, student numbers) is reached, at which point it will increase in a step-like manner.



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Using the Scenario, answer the following questions about the critical success factors (CSFs) for the option to build a campus on the Old Fire Station Headquarters site, with all courses for 16 - 18-year-olds provided by Pittville University.

Remember to select 2 answers to each question.

Which 2 attributes demonstrate that this option supports the key CSF Strategic fit and business needs?

  1. The attainment of qualifications should increase by 15% through the provision of better facilities.
  2. The Local Education Authority Director has agreed to be the Senior Responsible Owner for the Pittville project.
  3. Physical access to learning will be improved throughout the region as the new site has good access from most of Pittville.
  4. Local parents are opposed to the closing of Pittville High School.
  5. All further education units need to be absorbed into the new campus, reducing the number of educational providers to choose from.

Answer(s): A,C



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