Manage by Exception Principle Tolerances: Exploring the Six Areas of Project Management | PRINCE2 Exam Prep

What are the Three Other Tolerances Defined by the Manage by Exception Principle? | PRINCE2 Exam Prep

Question

The Manage by Exception principle sets tolerances for six areas of the project, Time.

Cost and Quality are three of them, what are the other three?

Answers

Explanations

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A. B. C. D.

D.

The Manage by Exception principle is a key concept in project management that allows managers to focus their attention on significant issues that require their intervention, while delegating day-to-day operations to the project team. This principle establishes tolerances for six areas of the project, which are critical for project success. These six areas are:

  1. Time: The time tolerance specifies the allowable deviation from the planned schedule. If the actual progress of the project falls outside the predefined time tolerance, the project manager should take corrective actions to bring the project back on track.

  2. Cost: The cost tolerance specifies the allowable deviation from the budgeted cost. If the actual cost of the project exceeds the predefined cost tolerance, the project manager should take corrective actions to control the costs and avoid budget overruns.

  3. Quality: The quality tolerance specifies the acceptable level of quality for the project deliverables. If the actual quality falls below the predefined quality tolerance, the project manager should take corrective actions to improve the quality of the deliverables.

  4. Scope: The scope tolerance specifies the allowable deviation from the project scope. If the actual scope of the project expands beyond the predefined scope tolerance, the project manager should take corrective actions to prevent scope creep and ensure that the project remains within its defined boundaries.

  5. Risk: The risk tolerance specifies the acceptable level of risk for the project. If the actual level of risk exceeds the predefined risk tolerance, the project manager should take corrective actions to mitigate the risks and ensure that the project is delivered successfully.

  6. Benefits: The benefit tolerance specifies the expected level of benefits that the project should deliver. If the actual level of benefits falls below the predefined benefit tolerance, the project manager should take corrective actions to ensure that the project delivers the expected benefits to the organization.

Therefore, based on the options provided, the correct answer is option D, which lists the three remaining areas of project tolerance: Scope, Risk, and Benefit.