PRINCE2 – Foundation Exam Exam

What is the purpose of defining tolerances in a PRINCE2 project?

1. To ensure all team members follow the same schedule

2. To establish limits of delegated authority

3. To prevent project scope change

4. To monitor customer satisfaction

The correct answer is: To establish limits of delegated authority

In a PRINCE2 project, defining tolerances serves to establish limits of delegated authority for various aspects of the project, including time, cost, quality, scope, risk, and benefits. By setting these tolerances, project managers and team members understand the boundaries within which they can operate without requiring further approval from higher management. This improves decision-making efficiency, as it allows for prompt responses to issues that arise during the project's execution, thereby enhancing the overall agility of the project management process. Establishing tolerances provides a clear framework that helps in maintaining control over the project while allowing flexibility where necessary. For example, if a project task falls slightly behind schedule but remains within the tolerance limit set for time, the responsible team member can continue without escalating the issue. This level of discretion is crucial in project management, as it enables teams to adapt and respond to changing circumstances efficiently. The other options do not accurately reflect the purpose of tolerances in the PRINCE2 methodology. Ensuring all team members follow the same schedule pertains more to adherence to project plans rather than tolerances. Preventing project scope change is not specifically addressed through tolerances, as it focuses more on managing the scope processes. Lastly, monitoring customer satisfaction is an aspect of stakeholder