Better-Business-Cases-Practitioner Exam Dumps - Better Business Cases Practitioner Exam

Question # 4

Two of the options in the OBC have been revised, as shown in the table above.

Should Option B be ranked as the preferred option?

No, because the benefits are greater for Option A.

No, because the public sector test discount rate has been applied.

Yes, because option B has positive liquidity.

Yes, because Option B has the higher NPSV.

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Question # 5

Which 2 statements should be recorded under the Business needs heading?

Achieving success rates for qualifications.

The Pittville development option will result in a net saving in cleaning costs

Existing staff can absorb a 30% increase in the number of 16-18 year old

learners.

Success rates for qualifications are near average.

Long term financial viability of the education and training system for 11-18-

year-olds.

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Question # 6

Answer the following question about the Outline Business Case.

The following questions include only true statements about the Pittville project.

However only one statement is an appropriate entry for that heading in the

Management Case section.

Which statement should be recorded under the Programme and Project Management heading?

Projected inflation will mean that costs will be 6% higher when the campus is operational.

Temporary accommodation will be put on the site of the Old Fire Station Headquarters at least 3 months before the development of the new campus takes place.

Opportunities will be created for teachers to be involved in delivering new courses.

The chosen service provider must have experience in the construction of publicly used buildings.

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Question # 7

Using the Scenario, answer the following questions about the Commercial Case for the Pittville project.

The following questions include only true statements about the project, but only two statements are appropriate entries for the

suggested heading of the Commercial Case.

Remember to select 2 answers to each question.

Which 2 statements should be recorded under the Required services heading?

20% of the contract price is to be paid up front for materials.

To increase the rate of 16-18-year-olds participating in education and training by at least 15% within the next three years.

The major users of the finished campus will be 16-18 year old learners.

The selected contractor will be responsible for taking measures to reduce any potential errors in the construction phase.

All intellectual property rights are to be maintained by the Local Education Authority.

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Question # 8

Which detail should be explained in the Commercial Case?

Implementation timescales agreed for delivery.

Impact on the organization's income and expenditure account.

Impact on the organization's balance sheet.

Overall affordability and funding arrangements for the deal.

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Question # 9

The current establishment of support staff will be able to absorb 30% growth in numbers of 16 - 18-year-old learners.

This information has been:

1. Entered in the benefits register

2. Classed as a cash-releasing benefit.

Which 2 statements apply to these entries?

Amend entry 1, because benefits should be described only in the Economic Case.

No change to entry 1, because non cash-releasing benefits should be entered in the benefits register.

Amend entry 2, because the benefit class should be 'non-cash-releasing'.

No change to entry 2, because an increase in productivity is classified as cash-releasing.

No change to entry 2, because a growth in learner numbers will result in additional revenue.

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Question # 10

Which action should be completed by the Pittville Project Manager?

Produce regular progress reports for the Senior Responsible Owner of the

project.

Appoint the Senior Responsible Owner for the project.

Approve the specification for the new learning campus.

Approve the continuation of the project at the end of each delivery stage.

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Question # 11

Which statement should be recorded under the Benefits Realization heading?

The Pittville Project Manager is responsible for producing regular progress reports for the Senior Responsible Owner of the project.

The local university has proposed to run a series of workshops in the Western Area to prepare for university applications.

The rationalization of courses to improve pupil/teacher ratios.

The Reference Project is based on using the same property management company that maintains Pittville University.

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Question # 12

Answer the following questions about the actions taken when preparing the Economic Case within the Full Business Case (FBC).

Decide whether the action taken represents an appropriate application of the Five Case Model for this project and select the response that supports your decision.

Since approval of the OBC, there has been an attractive bid for the Old Fire Station Headquarters site by a supermarket company.

The bid is 15% higher than the original amount that the site was valued at.

Should the FBC production be delayed while the ranking of the options in the OBC is reassessed?

No, because the anticipated benefits will remain the same.

No, because the sale price of the site is an opportunity cost which is irrelevant to the Economic Appraisal.

Yes, because the FBC must be re-submitted for re-approval if the costs vary significantly.

Yes, because the FBC should be based on accurate Economic Appraisals for all options.

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Question # 13

Using the Scenario, answer the following question about the actions taken when establishing the

Economic Case within the Outline Business Case (OBC).

It is thought that funding for the new campus on the site of the Old Fire Station Headquarters couldbe achieved through a public private partnership (PPP). The size of the Pittville project is very similar to the recent PPP development of Marshgate High School, a school in a neighbouring part of the county.

Lines 1 to 5 in the table below consist of an assertion statement and a reason statement. For each line identify the appropriate

option, from options A to E, that applies. Each option can be used once, more than once or not at all.

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Answer:

Explanation:

Let's evaluate each assertion and reason to identify the appropriate options from A to E:

The assertion is that the PPP costs for Marshgate High are NOT relevant to estimating costs for the development of Pittville University. The reason given is that the Reference Project is used to provide an estimate of how much it will cost the public sector using procurement through conventional approaches. This reason does not logically support the assertion because using a reference project like Marshgate High could be relevant for cost estimation by comparison, so the option that applies here isB. True, BUT the reason does not explain the assertion.

The assertion is that the OBC must include the value for money assessment of the PPP schemes to support the Pittville University project details. The reason is that the procurement strategy for how the required services or works can best be procured should be determined in an Economic Appraisal. This reason supports the assertion because part of determining the procurement strategy involves assessing the value for money of different schemes, including PPP. Thus, the option here isA. True, AND the reason explains the assertion.

The assertion is that it would be appropriate for the PPP option to be carried forward to the shortlist, along with the 'BAU/status quo', do minimum and preferred option for the development of Pittville University. The reason is that any form of private project finance should be appraised using the Options Framework filter. This is a correct reason, as all financing options should be appraised to determine the best approach. Therefore, the option isA. True, AND the reason explains the assertion.

The assertion is that the data from the Marshgate High School project should be used to derive the optimism bias adjustment factor for the new Pittville University campus. The reason is that the Economic Appraisal should research accurate costings and review all contributory factors that could lead to cost and time over-runs. This reason supports the assertion because using data from similar projects can help in adjusting for optimism bias, which is part of ensuring accurate costing. Therefore, the correct option isA. True, AND the reason explains the assertion.

The assertion is that the bespoke technology cabin planned for Pittville University should be considered as a non-standard building project for deriving the optimism bias adjustment factor. The reason given is that each project type should be considered as a separate project for the purpose of applying an optimism bias adjustment factor. This reason supports the assertion because if the technology cabin is indeed a non-standard project, it should be evaluated on its own to ensure the adjustment factor is accurately applied. The correct option isA. True, AND the reason explains the assertion.

Question # 14

Which 2 observations correctly evaluate risks that could affect the affordability of this project?

Without the sale of Pittville High School, the project is no longer viable.

The project would still be viable if equipment costs were to double after Year 3.

If the other income were to be withdrawn for any reason, LEA Funding alone could fund the running costs of the scheme after Year 3.

The project would no longer be affordable if funding were to increase by 5%.

Income from the hire of the Sport Facilities must continue to increase every year for the scheme to be viable.

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Question # 15

Answer the following questions about the content of the Commercial Case and the Financial Case for the Pittville project.

Which detail should be explained in the Commercial Case?

How charges for the preferred service provider's offer have been modelled, including the resultant benefits.

Capital and revenue implications of the resultant deal, including any costs falling to the organization.

Net effect on the organization's charges (prices), if any.

Service streams and outputs being contracted for.

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Question # 16

Which 2 statements should be recorded under the Proposed charging mechanisms heading?

The cost of any changes to the contract will need to be authorized by the Programme Change Board.

The new campus building is to be listed as an asset on the Local Education Authority balance sheet.

The return on the investment will repay the sum of the original investment over 10 years.

The contract period for development of the new campus is three years.

20% of the contract price is to be paid up front for materials.

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Question # 17

Using the extract below from the Capital Profile for the new campus, answer the following questions.

(Note. The figures entered are correct).

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Question # 18

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?

The attainment of qualifications should increase by 15% through the provision of betterfacilities.

The Local Education Authority Director has agreed to be the Senior Responsible Owner for the Pittville project.

Physical access to learning will be improved throughout the region as the new site has good access from most of Pittville.

Local parents are opposed to the closing of Pittville High School.

All further education units need to be absorbed into the new campus, reducing the number of educational providers to choose from.

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Question # 19

It is estimated that 60% of the taxation costs on the development will NOT be reclaimable.

Should the unclaimable taxation costs be excluded from the Financial Appraisal?

No, because the Financial Appraisal should demonstrate value for money.

No, because both resource and non-resource costs and benefits should be factored into the analysis.

Yes, because taxation costs should be excluded from the Financial Appraisal.

Yes, because it is the Economic Case that should include inflation and taxation costs.

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Question # 20

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?

No, because risks should be identified in the Outline Business Case.

No, because this is a service risk associated with the design and build phases of the project.

Yes, because the local planning authority is an external organization.

Yes, because changes to the Old Fire Station Headquarters site will affect the environment.

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Question # 21

Service Solution 1: 'Do minimum - introduce learning network to

existing schools and universities only'.

Which 2 statements are correct about this entry in the Options

Framework?

Should be rejected as over-ambitious.

Delivers against one or more of the critical success factors.

Will represent a benchmark for Value For Money throughout the appraisal process.

Supports one or more of the Spending Objectives.

Incorrectly identified as a Scoping Solution.

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Question # 22

Using the Scenario, answer the following question about the development of the Strategic Case for the Pittville project.

Lines 1 to 4 in the table below consist of an assertion statement and a reason statement. For each line identify the appropriate

option, from options A to E, that applies. Each option can be used once, more than once or not at all.

Assertion

The option to 'Develop a new campus on the site of

the Old Fire Station Headquarters' should be

captured on the long list within the Strategic Case.

'Underachieving on success rates for qualifications'

should be captured under the business need

heading in the Strategic Case.

'Development of learning provision for 14-19-year-

olds in Pittville' should be recorded as a key service

requirement.

The number of students accommodated by each of

the current learning providers should be detailed in

the Strategic Case.

Reason

Because

a) The purpose of the long list is to identify a wide range of

options that meet the spending objectives, potential

scope and benefits criteria.

b) The business needs in a Strategic Case should include

deficiencies in current provision.

c) The key service requirements in a Strategic Case

should set out the existing arrangements and explain

how services are currently organized, provided and

supplied.

d) The critical success factors essential to the successful

delivery of a scheme should be included in a Strategic

Case

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Question # 23

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.

When preparing the Strategic Outline Case, the need to address the number of education courses available to 16-18-year-olds was

considered to be sufficiently large and stand alone to form a project.

Was this an appropriate application of the Five Case Model for this project?

No, because the Pittville project is part of a larger programme of change.

No, because whether the change is sufficiently large to warrant a project should have been determined before this stage.

Yes, because this stage should confirm the strategic context of the proposal.

Yes, because this stage should provide stakeholders with an early indication of the preferredoption.

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Question # 24

An extract of an entry in the benefits register includes the following information:

1. Benefit type: Cash-releasing

2. Description: A net overall saving in the cost of cleaning

3. Target improvement: Reduce overall costs of cleaning contracts by 10% per annum

4. Responsible officer: Pittville University Procurement Manager.

Which 2 statements apply to these entries?

Amend entry 1, because the benefit type should be 'financial but non-cash-releasing'.

No change to entry 1, because the benefit is cash-releasing and should be measured in financial terms.

Amend entry 3, because the improvement is unknown.

No change to entry 3, because the benefits register should indicate the level of improvement expected.

Amend entry 4, because the SRO should be the responsible officer for all benefits.

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Answer:

Explanation:

QUESTION NO 1 HOTSPOT

Using the Scenario, answer the following question.

The following items have been included in the draft risk management strategy, framework and plans.

Lines 1 to 5 in the table below consist of an assertion statement and a reason statement. For each line identify the appropriate

option, from options A to E, that applies. Each option can be used once, more than once or not at all.

A white sheet with black text Description automatically generated

A group of black ovals Description automatically generated

Answer:

Let's evaluate each assertion and reason to identify the appropriate option for lines 1 to 5:

Assertion: It is appropriate that the risk management strategy outlines a series of risk workshops. Reason: The risk management strategy outlines the methods used to identify and mitigate project risks.

Appropriate Option:A(True, True, AND the reason explains the assertion)

Assertion: It is appropriate that the risk management framework describes types of risk: business and service. Reason: The risk register shows the approach to managing project risks.

Appropriate Option:B(True, True, BUT the reason does not explain the assertion)

Assertion: It is appropriate that any risk which could impact workplace health and safety is to be escalated to the SRO. Reason: The risk management strategy shows details of who will be responsible for managing each risk.

Appropriate Option:A(True, True, AND the reason explains the assertion)

Assertion: It is appropriate for the details of individual risks to be included as part of the relevant Strategic, Economic or Commercial Case, rather than maintain a separate risk register. Reason: A risk register is only necessary where risks are NOT specified in the relevant case.

Appropriate Option:E(False, False)

Assertion: It is appropriate that each risk is to be assigned a probability and impact value. These should use the scales defined in the risk management strategy for the Western Area Learning Improvements programme. Reason: Planning for risk management involves putting arrangements in place for the on-going management of risk.

Appropriate Option:A(True, True, AND the reason explains the assertion)

These options were chosen based on the logical connection between the assertions and the reasons provided, considering the typical content of risk management strategies and frameworks in project and program management.

Question # 25

Answer the following questions about preparing for the potential deal for the

Pittville project.

Column 1 contains information about the Pittville project. For each entry in Column

1, select from Column 2 the Action within the Five Case Model that should use this

information. Each selection from Column 2 can be used once, more than once or

not at all.

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Question # 26

Service Solution 2: 'New development on Pittville University site and close and transfer all further

education units in the Pittville area resulting in financial affordability'.

Which 2 statements are correct about this entry in the Options Framework?

This is a Service Scope option NOT a Service Solution option.

Delivers against one or more of the critical success factors.

Supports one or more of the Spending Objectives.

Will represent a benchmark for Value For Money throughout the appraisal process.

This is the LEA's preference and therefore the preferred option.

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Question # 27

Which statement should be recorded under the Change Management heading?

The Change Management Strategy should mitigate the impact of school closures on jobs.

There should be a break clause allowing either party to give two months written notice to terminate the agreement after a minimum of six months.

11-16 year old pupils from Pittville High School could be absorbed into the other schools if all further education unit were moved to a new campus.

The Pittville University development option will result in a net overall saving in the cost ofcontracts for cleaning.

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Question # 28

Using the Scenario, answer the following questions about the development of the Strategic Case for the Pittville project.

Topland Local Education Authority (LEA) has been asked to put forward a representative to attend

Workshop 1. The agenda for this workshop is to determine the case for change and options for service delivery.

Is this an appropriate application of the Five Case Model for this project?

No, because Topland LEA has formed a learning partnership with Pittville University.

No, because it is the Topland LEA that initiated the Pittville project.

Yes, because the customer and user representatives should be involved in this workshop.

Yes, because Topland LEA should decide the service delivery solution.

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Better-Business-Cases-Practitioner Exam Dumps - Better Business Cases Practitioner Exam

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