The PRINCE2® Foundation Training ManualA common sense and practical approach to understanding PRINCE2® SAMPLE Version 1.2b Check latest version Covers the full PRINCE2 Foundation Syllabus Click to view the PRINCE2 Foundation Training Room Management Plaza By Frank Turley, The PRINCE2 Guy Management Plaza Foundation Level The Swirl logo™ is a Trademark of the Office of Government Commerce PRINCE2 ® is a Registered Trademark of the Office of Government Commerce in the United Kingdom and other countries The PRINCE2® Foundation Training Manual - Sample ii The PRINCE2® Foundation Training Manual Thank you for reading our PRINCE2 Training Manual. The main objective of this book is to provide an easy-to-read and easy-to-understand PRINCE2® Foundation training manual. The idea for this book came from the questions I received from people trying to learn PRINCE2, and the fact that the official PRINCE2 manual “Managing Successful Projects with PRINCE2” is an excellent reference manual, but is not a training manual. The official PRINCE2 Manual for the Project Manager can be rather difficult to pick up and read if you are new to both project management and PRINCE2. You acquire more from the official manual if you first understand the information in this training manual. Henceforth, this book is meant to be (and is) an easy introduction to PRINCE2 based on the Foundation syllabus, and is quickly becoming the most read book for people wishing to learn about PRINCE2 and prepare for the Foundation Exam. Feedback: We welcome any feedback (corrections or suggestions to improve). Feedback The Swirl logo™ is a Trademark of the Office of Government Commerce PRINCE2 ® is a Registered Trademark of the Office of Government Commerce in the United Kingdom and other countries PRINCE2 Self-Study Course • • • This training material has been approved by APMG – See link This Foundation Training Manual will form part of our Foundation training We will create an audiobook version of this book, so you can listen to while going to and from work. NR Sections • There are some sections labeled NR – Not Required, meaning this section is not required to pass the Foundation Exam but provides useful background information. Acknowledgements Author Expert Reviewer Expert Reviewer Frank Turley Peter Krischel Danny Vandeweyer Copyright © 2010 Frank Turley LinkedIn LinkedIn Thanks, also, to the follow people for their feedback on this book: Cesar Lopez, Dimitri De Ruelle, Eralp Tezcan, Luis Sequeira. Foundation Q&A Workbook Management Plaza The PRINCE2® Foundation Training Manual - Sample iii Distribution Copyright This book has been provided to you free of charge on the condition that it is not copied, modified, published, sold, rebranded, hired out, or otherwise distributed for commercial purposes. Please feel free to give it as a present About the Author Frank Turley (The PRINCE2 Coach) has been a Project Manager for more than 15 years and a PRINCE2 Practitioner. You can contact Frank at: E-mail:
[email protected] LinkedIn www.linkedin.com/in/frankturley Frank is also a PRINCE2 & PM trainer and coach and has created the following training material for or PRINCE2: • • • • • • • • Introduction to PRINCE2 Video Introduction to PRINCE2 Podcast The PRINCE2 Foundation Training Manual The PRINCE2 Foundation Q&A Workbook The PRINCE2 Practitioner Training Manual The PRINCE2 Practitioner Audio Course The PRINCE2 Product Map Diagram The PRINCE2 Timeline Diagram Link Link Link Link Link Link Link Link In-House PRINCE2 Training Click here to exam our offers for In-House PRINCE2 Training: Link Self Study Guides These are two short Self Study guides that we have created • The PRINCE2 Foundation Study Guide • The PRINCE2 Practitioner Study Guide Link Link Free PRINCE2 Self Study for your organization Management Plaza offers both the PRINCE2 Foundation and Practitioner Self Study courses (and other PRINCE2 material) to organizations that invest in project management knowledge. For more information on this, contact
[email protected] or +32 477 588 618. Foundation Q&A Workbook Management Plaza The PRINCE2® Foundation Training Manual .Sample iv Ordering & booking your PRINCE2 Exam The process can be a bit different for each country. Foundation Q&A Workbook Management Plaza . Pricing. How to order exams. Click this video for more information Advantages of buying your exam from Management Plaza • • • • We provide a free Training Manual (Foundation or Practitioner) We provide a free full Self Study course with Exam We assist you in booking the exam We offer the same price as APMG but we gvie a Free Self Study course Click here to order your PRINCE2 Exam. so click on this country page and choose your country: Each page provides information on: Location of exams. first select your country/region. Audio & PDF formats Only course to include a Foundation Training Manual Only course to include a Foundation Q&A Workbook Only course that provides an audio course with > 320 questions & answers Video course can be downloaded to Smartphone.Sample v PRINCE2 Foundation Self Study course: £48. Audio and Q&A 2) The PRINCE2 Foundation Training Manual • This is the #1 PRINCE2 Foundation Training Manual • Only APMG approve manual that is focused on the Foundation Syllabus 3) The PRINCE2 Q&A Workbook • This Q&A workbook will guarantee that you pass the Foundation Exam • It provides sample questions on each chapter in the Foundation Training Manual 4) The PRINCE2 Foundation Video Course • A complete PRINCE2 Foundation training Video available • Watch online or download to your Smartphone. Project Support teams and Project Managers.com or GSM: +32 477 588 618. €58. help support PMO’s. Process. Foundation Q&A Workbook Management Plaza . Random and learn from answers 6) Extra 320 Sample Foundation Questions (Audio / Paper) • Use our Learn PRINCE2 Thru Questions course • Available in paper (PDF) or Audio formats (learn while driving) 7) Support Desk 8) Assistance with booking PRINCE2 Exam • Click video overview or country page What is unique about our PRINCE2 Foundation Self Study course? • • • • • • • • • The focus is on learning PRINCE2 rather than just passing the exam Use examples to help explain new topics (much easier to understand) Provide best Introduction course to PRINCE2 Only course that provides an Introduction in Video. tablet or PC 5) Practice online Foundation questions • Do the online practice questions (there are more than 120) • Practice by Theme. Contact us for more information if your organization: Send an email to Frank: frank. Book. tablet or PC Training material can be used after the exam to support the PM’s day to day work Get this PRINCE2 Self Study Course free for your company Partner with Management Plaza and share this PRINCE2 Self Study course with all project members in your
[email protected] PRINCE2® Foundation Training Manual . $78 (Guaranteed pass or 200% money back) 1) The PRINCE2 Pre-Course / Introduction to PRINCE2 • Best introduction to PRINCE2: Video. This will help your organization to increase its awareness of project management. Exam Guidance & exam tips to get another 7% What is unique about our PRINCE2 Practitioner Self Study course? • • • • • • • • • • • The focus is on learning PRINCE2 rather than just passing the exam Use examples to help explain new topics (much easier to understand) Only course to provide a Video Course to revise the PRINCE2 Foundation course. $78 1) PRINCE2 Pre-Course Introduction to PRINCE2: Video.Sample vi PRINCE2 Practitioner Self Study Course: Practitioner Self Study contents £48.turley@gmail. €58. These are three full Practitioner exam papers 7) Additional Training Material • . Only course to provide a Practitioner Training Manual Only course to provide a Practitioner Audio Course 60% extra sample question than on a normal PRINCE2 classroom training Only course to provide a sample project documents Approx. Sample Project Documents • . Exam Syllabus. Book. Audio and Q&A This is by far the best possible introduction to PRINCE2 2) The PRINCE2 Practitioner Training Manual • Easy to read Practitioner manual to compliment the official manual • Use many examples to help explain new topics 3) The Learn Thru Questions (550 Q&A) • . Send an email to Frank: frank. This workbook & audio course will guarantee that you understand PRINCE2 • . 300% extra sample project documents in this course Only course that provides an audio Q&A course ( > 500 questions Only course that allows to be downloaded to smartphone. This will help your organization to increase its awareness of project management. tablet or PC Training material can be used after the exam to support the PM’s day to day work Get this PRINCE2 Self Study Course free for your company Partner with Management Plaza and share this PRINCE2 Self Study course with all project members in your organization. This is a full PRINCE2 Audio Course (> 12 hrs) • . Please contact us for more information if your organization is serious about improving project management skills and a person has been assigned to oversee this. Learn PRINCE2 while driving 6) Practice Practitioner Questions • . help support PMO’s.The PRINCE2® Foundation Training Manual .com or GSM: +32 477 588 618 Foundation Q&A Workbook Management Plaza . Tips on how to read the Project Scenario 8) PRINCE2 Exam Guidance • . Project Support teams and Project Managers. PRINCE2 Diagrams & PRINCE2 Templates • . For some people this is most important training material 4) The PRINCE2 Video Course • This video course provides important basic information • Download these to your SmartPhone or 5) The PRINCE2 Practitioner Audio Course • . .................. 7 Starting Up a Project ... 7 Project Timeline overview......... 14 Principles: Manage By Stages .................................................................................2 What you need to know for the Foundation Exam ............................ ii Acknowledgements ..........................2...........................................................................2 2............................................................................................................................. 5 PRINCE2 Foundation Exam & Syllabus....................................................2 3.2...............................................................................3 3......... 1 1............................................................................................................................................ 12 The Process Model and Project Timeline ....................................................8 1....................................3 3 3..............................7 3............................................................................................................................................................ iii About the Author ......................................................................6 3..................................................... 6 What you need to know for the Foundation Exam ......2...................................... 4 Benefits of using PRINCE2: ..........................................................5 3........................ 13 Themes Introduction .................11 2 2........................... 9 Next delivery stages ............................................1 2...........10 1............................................... iii Self Study Guides............... 17 Principles ...................................................................................... 14 Principles: Manage by Exception .................... 7 2.............................................................................2.............................................................................................................................. 1 Why a Project Management Method? ...6 2..................................................... 13 Principles: Continued Business Justification .................................................................................................................................................................. 7 Initiating a Project Process / Initiation Stage............................... 13 Principles: Defined Roles and Responsibilities ..................2 The PRINCE2 Foundation Training Manual .. 10 Last delivery stage and Closing a Project ....................................................................7 1......................................................................................... 13 Principles: Learn from Experience ...............2............................................ 15 Principles: Tailoring or Tailor to suit the Project Environment............................................ 12 Introduction to principles........................ 16 What you need to know for the Foundation Exam ................................................................................................................................. iii 1 Introduction – PRINCE2...........................................................................1 4.. 8 Controlling a Stage – 1st delivery stage ....9 1...................................................9 4 4............ 11 Timeline Summary ......8 3..........................................1 1..6 1... 3 PRINCE2 Structure (Elements) ..4 1.............. 15 Principles: Focus on Products ...................................................2 1....... 2 What is PRINCE2? ............................... 17 Foundation Q&A Workbook Management Plaza ..................................... 6 The PRINCE2 Process Model ...............2.............................................................4 2................................................ ii PRINCE2 Self-Study Course .1 2......................................... ii Distribution Copyright ...........5 2................................. 2 Five characteristics of a project .................... 17 List of Themes ...................4 3................................................ 3 Six variables / six performance targets ......................................1 3.......................................................................................................................... 16 Introduction to Themes ................................................................................................................3 1.............The PRINCE2® Foundation Training Manual ................................... 1 What are Projects? ...................................................................................5 1......................................................................... 5 What does a Project Manager do? ....................Sample vii Table of Contents The PRINCE2® Foundation Training Manual .........................................................................................................................3 2....................................... .......6....................................... 25 Business Case Theme ............... 31 Project Board .............. 35 The Project Manager Role..... 21 5...............................The PRINCE2® Foundation Training Manual ............. 28 Introduction to Organization Knowledge ...............................................................................................................2...2.................8 5...........................6 Theme: Business Case ..........4 6............................................ 36 The Communication Management Strategy .....16 7 The Benefits Review Plan .................................................................................................. 19 Theme: Change ...............................9 5.............................................2 5.................................................................................... 27 Business Case: Who is responsible for what? ............... 34 The Change Authority Role ...............................15 6.13 6.. 21 What does a Business Case do for the project? .............. 30 Three Project Interests / 3 Stakeholder Categories ......................................................2....4 5.............................................................8 6...............7 5...................................14 6....................... 33 The Project Board Roles ...............1 5................................................................2.......................... 20 Introduction to Business Case Knowledge ...... 28 What you need to know for the Foundation Exam .6.....................................................................6.........7 4.............11 6 6...............................................................10 6......7 6...........Sample viii 4. 18 Theme: Risk ........................................................................................................................................... 26 Business Case example: A new CRM (Sales system) .............................2 6............... 20 What you need to know for the Foundation Exam ..................................................................................................................................... 37 Responsibilities for Organization Theme......................................12 6..1 5........................................2 4...........................................................................2.................................... 18 Theme: Quality ...............1 4...................10 5..............................................................3 5..5 6......................................................9 6.................2..............................................11 6..................................................................................................5 4... 39 Foundation Q&A Workbook Management Plaza .........................................................................................3 6............. 21 The Business Case knowledge provided by PRINCE2.......................3 5........ 24 Step 3: Maintain the Business Case ............................................................................................................................................................ 21 What happens in the real world? ................................................6 6.................................... 17 Theme: Organization.......................................2...... 22 The path to creating the Business Case ........................................................................................................................................... 38 Organization .......... 25 Step 4: Confirm the Benefits .................. 25 The Contents of a Business Case .......................... 23 Step2: Verify the Business Case – By Project Board ..... 34 Project Assurance: User..4 4......................4 5................................................................................. 35 Team Manager & Project Support ............................................... 29 The Organization knowledge provided by PRINCE2 ............................... 37 What you need to know for the Foundation Exam ................................................................................................ 30 The four levels of a project organization ...... Business & Supplier .........2 5....................................... 19 Theme: Progress ...................5 5............................................................. 29 Quality .............................................1 6....................................3 4....................6.....................6 4............... 22 How to best describe what you get from a project? ............................................................................................ 29 What happens in the real world? ...................................... 18 Theme: Plans ............... 23 Step 1: Develop (Create) the Business Case ...... 36 Stakeholder Engagement ......................... 29 Organization Definitions ....3 5 5.................................................................... ...................................1 9.................................................13 9 9...................... 54 The Exception Plan – Out of Tolerance ........................................................1 7......... 64 Foundation Q&A Workbook Management Plaza .......... 41 Part 1: Quality Planning Introduction ... 41 Quality Planning Steps – Quality Audit Trail .....................................................................................................8 8..................................................6............................ 61 Step 4: Prepare Estimates (NR*) ........4 8............... 63 Introduction to the Risk Knowledge ................ 49 Introduction to Plans Knowledge ..........................................2 7.......................................10 8 8....................................9 8.......... 61 Plans ........4 7....................................2 8.................................. 62 Responsibilities .................................7 8.............................................................................6...................................................................3 7..5 8... 41 The Customer’s Quality Expectations ...... 61 Step 6: Document the Plan (NR) ........ 56 Step3: Identify Activities and Dependencies (NR) ...........10................................................................................................9 7...... 48 Responsibilities ......................6 8.........................1 8.......................................................................................................3 8..... 53 The Project Plan...........5 7........................................6..............................................................................................2 8..............................................11 8......5 8.............7 7........................ 47 The PRINCE2 Quality Review Technique .. 44 Project Product Description Example (NR*) ................................2 7.................................. Stage Plan and Team Plan .......... 64 What happens in the real world? .......................................................................................6 Introduction to Quality Knowledge.............6 8.. 61 Step 5: Prepare the schedule (NR) ................ 44 The Quality Management Strategy Document .................................................................10..................................... 56 Step 1: Design the Plan ......................................................................... 51 Plans Definitions ..........................3 8....... 51 The Plans Knowledge provided by PRINCE2 ....... 49 What you need to know for the Foundation Exam ..8 7........................ 64 Purpose of the knowledge in the Risk Theme ...................1 8.............. 45 Product Descriptions .........................10...........................6.......... 52 The Path to Planning .........................................................6........................................ 46 7....................................................... 52 Three levels of a Plan ...........................................10 Part 2: Quality Control Introduction .................................................................................. 39 The Quality Knowledge provided by PRINCE2 ................................................................................8 7..............................................................................4 7...............................................5 7............................................................... 39 What happens in the real world? ...................10.........10.....3 7.........6............ 43 List Acceptance Criteria ..................................................4 8............................... 40 Introduction to the PRINCE2 Approach to Quality: ..... 55 The PRINCE2 Planning Steps and Design the Plan .......6..... 39 Quality Definitions ............10........... 56 Step 2: Product-Based Planning Introduction ............................................1 7...................................................................................................................................................... 43 The Project Product Description (Main Product)...........................................The PRINCE2® Foundation Training Manual ....6........................12 8.................................................................................................................... 46 Quality Register (NR) .......... 55 Planning Steps 1 to 7 ....6 7................................................................................................................................... 64 Risk Theme ..................................................................3 The Product Checklist (NR) .........2 9......................................................................................7 7........................................ 62 What you need to know for the Foundation Exam ..Sample ix 7........ 51 8............. 51 What happens in the real world? .................................................. .......................................................10.................................................. 69 9........................... 83 Status Accounting: What happens in Status Accounting? ............11 10....................... 77 Purpose of knowledge in the Change Theme ............................... Management Roles and Responsibilities.............. 83 Change ..................................... 79 Configuration Management Strategy ...........................15 9.................................................................................................... 77 10.............. 67 How to Express the Risk .....................................17 9.......10........7 9................13 10.......... 83 Identification: What happens in Identification?..................................................................................... 88 Progress ..............9 9.8 10..9..............................11 9........................................................ 84 Change & Config...................... 70 Step 2: Assess Risk.. 83 Verification and Audit: What happens in Verification & Audit? .. 74 Step 5: Communicate .......2 10........14 9........................................5 9......................5 10....................................3 10.......................................2 9....... 68 Step 2: Assess Risk: Estimating (NR) ..........2 10......Risk History .............................. 87 Foundation Q&A Workbook Management Plaza .............................................10.......................................... 83 Control or Control Changes: What happens in Control? ........................16 9....................................................................................................................................................1 10..... 80 Management Products used by the Change Theme ..........................................................Sample x 9....................................................10..............4 9........9 10........... 78 Change Definitions ..................................................... 77 What happens in the real world? ....4 10................................. 67 Step 1: Identify .... 71 Plan the Responses to Threats ................5 10...................................................................4 10....................... 78 The PRINCE2 Approach to Change...14 11 11..................................................................................10....... 84 Dealing with Project Issues ...................................................................1 10.................10..........................10 Risk Definitions ..................................................... 73 Step 4: Implement the Responses (NR). 75 Risk Roles and Responsibilities ............................... 87 Purpose of the information in the Progress Theme ............................. 82 Planning: What happens in planning? ..............................6 9................................................................................................................................. 86 Introduction .................... 75 What you need to know for the Foundation Exam .............................................................. 65 The Management of Risk Method and Risk Context ... 80 Change Authority and Change Budget.................... 87 What happens in the real world? ......................................12 9......................................The PRINCE2® Foundation Training Manual ...........................................6 10............. 85 What you need to know for the Foundation Exam ..................................................................................................................10 Step 3: Plan is about Planning the Responses .......8 9...............................................................................13 9..................... 75 Introduction to Change Knowledge .................................................................................................................... 81 The Configuration Management Procedure ...............................18 10 10..........................................................1 9.. 66 The Risk Management Procedure Introduction ...............1 11......................................3 Issue and Change Control Procedure ...............2 11.........................................................................................1 9............................................................................................ 65 The Risk Management Strategy ...................................... 71 Plan the Responses to Opportunities ..................................10................7 10...3 10........... 79 How to prioritize issues and track severity ................................................................... 74 What is a Risk Budget? ......................................... 66 The Risk Register .............12 10......... 69 Step 2: Assess Risk – Evaluate (NR) ................................................... .....................................................................................4 12....... 110 DP Inputs and Outputs ............... 91 What are Technical Stages? .....................7 13 13..............................................................3 14.............................................................................................. 109 Foundation Q&A Workbook Management Plaza .............................................................. Exceptions and Tolerances.........8 11........5 14.................... 90 Use of Management Stages for Control .................................. 95 Introduction to Processes ........ 109 Introduction to the Directing a Project ............................... 105 Purpose & Objective ...............................................................................10 11......... 106 IP Roles and Responsibilities ..........................................13 11........ 96 Two Process Diagrams ..............................................................1 14......................................................................................................................6 11.... 95 Progress Roles and Responsibilities .................... 90 What are the 3 Project Manager Controls? .......................................... 98 Initiation Stage ............................. 111 Introduction to Processes .................................3 12........5 12.......................5 11............. 107 How Themes are applied in the IP Processes (NR) ................................................................ 101 SU Input / Output Diagram ............................7 11.............................................................. 91 Event-Driven and Time-Driven Controls.........................12 11....................................................................................................................................3 13.......... 93 Capturing and reporting lessons .......3 15...........................................................................................................................................................................................1 12................................................ 96 Starting Up a Project ................................ 95 What you need to know for the Foundation Exam ....................................................................................................................................................... 108 What you need to know for the Foundation Exam ... Progress Controls.............15 11..........................2 14.... 99 Introduction to the Seven Processes.......................................................................................14 11.................................................4 13......................................................................5 13..........6 12.................2 13......................... 105 Directing a Project... 101 Activities...................................................... 104 SU Roles and Responsibilities .......................................2 12................................................................. 105 IP Inputs and Outputs ............. 98 Next Stage or Stages after the Initiation Stage ...........................The PRINCE2® Foundation Training Manual ................................................................. 104 Introduction ............... 96 Pre-Project .........................................................................................................................................................................................Sample xi 11..........................................................................................................................................16 12 12......................................................................................................................... 108 Introduction ............................. 94 Reports used to Report Progress ............................................ 104 What you need to know for the Foundation Exam .....11 11........1 15.9 11........................... 99 Introduction .......................4 14................................. 88 What is the PRINCE2 Approach to Progress? .......2 15................. 89 What are the 3 Project Board Controls?.......7 14 14.......4 Progress...............................................................................................6 13............................6 14................................................... 94 What is Raising Exceptions? ............................................... 105 Activities......................4 11.... 92 How does the Project Manager review progress? ....................................................................................7 15 15.......................... 96 The PRINCE2 Processes ............................................................... 101 Purpose and Objective of the SU Process ................................. 103 How Themes are applied in the SU process (NR) ..................................................................................1 13.................................... 109 Introduction to Activities................. 101 Initiating a Project ........... ...................6 18........................ 128 Foundation Q&A Workbook Management Plaza ......8 17 17.....................8 19 19........... 113 Managing Product Delivery ................................................. 119 What you need to know for the Foundation Exam .................................................................7 16 16........................................................................................................................................................................2 18........................................6 15...................7 16.... 115 How Themes are applied in CS Process (NR) ....................................................................................................................... 123 What you need to know for the Foundation Exam ................... 119 How Themes are applied in MP Process (NR)..............1 17... 121 Context .......................... 121 Purpose & Objective .................................................................................................................................................................................... 124 Closing a Project Activities ............... 121 SB Inputs and Outputs ................................................................................2 17............................................................. 112 What you need to know for the Foundation Exam ........................................... 128 General Approach to Tailoring ............................................... 124 CP Inputs and Outputs .......................................................................1 18.4 19...............................The PRINCE2® Foundation Training Manual ..3 19..............8 20 20.................................................................................................... 117 Managing Product Delivery Activities .................................................................... 128 Controlling a Stage ............................................. 116 What you need to know for the Foundation Exam ..............................................6 17............................................... 121 Closing a Project .............................................................. 124 Purpose & Objective ............... 115 CS Roles and Responsibilities ........................ 126 How Themes are applied in the CP process (NR) ...............................................4 18...................5 18...................................................7 18 18......................................................................6 16................................................................................. 113 Purpose & Objective .................5 16.........3 17.......2 16.......................... 113 Introduction to Activities (NR) .....................................1 16.......................................................................................................................................... 123 How Themes are applied in SB Process (NR) ........................................................................ 112 Introduction ...............................................5 19......................... 123 Introduction ........................................................................................3 16................................................... 118 MP Roles and Responsibilities ......... 127 Introduction and What is Tailoring? .............. 117 Purpose & Objective .....7 19.........................................................................................................5 15.................................................................................................. 121 Managing a Stage Boundary Activities......................................................1 20........................................... 125 CP Roles and Responsibilities ................................... 117 Managing a Stage Boundary .......... 113 CS Inputs and Outputs ............................4 16...................3 DP Roles and Responsibilities ............4 17....3 18.......................................................... 128 What is Tailoring? ........................................ 113 Context .1 19..............................................................2 19..........6 19..............Sample xii 15...................................................................................................................................... 127 What you need to know for the Foundation Exam ...................... 122 SB Roles and Responsibilities ..................................... 124 Context ............................................................... 124 Tailoring PRINCE2 to the project environment (NR) .......................................................................................................7 18...........2 20.................................................................................... 120 Introduction ........................................................................... 117 MP Inputs / Outputs .............................. 116 Introduction .............................................................. 111 How Themes are applied in DP Process (NR) ...5 17............. .4 20....................................................................................................................Introduction – PRINCE2The PRINCE2® Foundation Training Manual ..................... 130 Simple Glossary by Frank Turley and Eralp Tezcan ...................................................... 130 Foundation Q&A Workbook Management Plaza . 129 Level of Experience to Do Tailoring ...............................................................................5 What to change when tailoring ............................Sample xiii 20............................. 129 Appendix A ................... then these are referred to as processes. two identical projects are never done. then use this PRINCE2 Foundation training manual. but it is actually from the Project Management Body of Knowledge (PMBoK®). the persons involved in the project. then use the official PRINCE2 manual “Managing Successful Projects with PRINCE2”. • PRINCE2 terms are explained with examples. which appear in the definition. i.” Another definition of a project is as follows: A project is a temporary endeavour undertaken to create a unique product or service. Foundation Q&A Workbook .” You may not have understood this.. Now let us hear what PRINCE2 says about what a project is. Now. • We have provided a lot of management documents examples.g.Introduction – PRINCE2 1 1 1.2 What are Projects? Projects are seen as a way to introduce change. Let us start with a more general definition of a project. The word organization refers to the project team. Each project has a definite start and end. if you want to learn PRINCE2 and prepare for the PRINCE2 Foundation Exam. and processes that repeat are referred to as “business as usual” or operations. The manual is designed for: This PRINCE2 Foundation Training Manual is different from the official PRINCE2 manual in the following ways: • It is focused on the Foundation Exam syllabus. hence they are unique by nature. and how they relate to each other. If you want a very good reference manual. This is a quote from the manual: “A project is a temporary organization that is created for the purpose of delivering one or more business products according to an agreed Business Case. It mentions terms like “series of actions. This might sound like something from Star Trek. • The Manual is written in plain English so that you understand it the first time you read it. Remember. so it is temporary. maintenance of a software application).. • It is much more of a training manual and less of a reference manual. It includes information such as the reasons for the project. • Available in PDF format (easier to search and find the information you are looking for). 1. costs and time information and ROI (Return On Investment) calculation. the benefits. Business Case is one of the documents that exist in a PRINCE2 project. The official PRINCE2 manual for the Project Manager is called “Managing Successful Projects with PRINCE2”.e. if they are exactly the same. Well. some of you may be thinking that in your company the same projects keep repeating. this is an excellent reference manual.1 Introduction – PRINCE2 The PRINCE2 Foundation Training Manual • • Experienced Project Managers who want to learn PRINCE2. • A project timeline overview has been provided to help understand how a project is divided. I got this from Wikipedia: A project is a unique series of actions designed to accomplish a unique goal within specific time and cost limitations. as it is concise and easy to understand.SAMPLE Management Plaza . which make it easier to understand. Project Managers who want to have a reference manual for PRINCE2. projects that go on indefinitely are referred to as “operations” or “business as usual” and are not projects (e. • Questions at the end of each chapter provide a good way to test your knowledge.” “unique goal” and “within the constraints of time and money. It should start to make more sense in a few minutes after I explain what is meant by words such as temporary organization and business case. To summarize. as you need to know a little more about PRINCE2 first. I like this definition. which may cause the project to run out of money. you may find that the allocated space is too small. benefits and risk.e.Introduction – PRINCE2 2 1. • • Scenario 1: o You find out just one week before the plumbers are due to arrive that they may be delayed for one month. deal with risk. and so on. cost. delegating. As parts of the project are unique. as you are not 100% sure how this is going to work out. there are different owners. some of their chosen house Projects have a number of characteristics. there’s a slight difference in the design. Some other common project failures are: • Insufficient product definitions at the start. CrossFunctional: Unique: Uncertainty: Foundation Q&A Workbook . which may cause a black cloud over the project. the owners might keep changing their mind. and it should stop once the required products are created. monitoring and controlling the project. o It will be difficult to reschedule other contractors.4 Five characteristics of a project Change: Temporary: Projects are a way to introduce change. Example: Building a 4th house may be different in the following ways: the location is different. which is how projects differ from business as usual or a repeating process. quality. • Poor estimation of time and cost. monitor the work. • Lack of communication. Result of this scenario o Most of the planned work will be affected. Ongoing maintenance of a product occurs after the project and is not considered part of the project. in other words. do numerous checks and signoffs. Using the above example. o As you can imagine. Result o Again. etc…). Example: A new sales website will change how clients will purchase items. this brings uncertainty. A project involves people from different business departments and seniority that work together for the duration of the project. the administration of the project. and owners want to change some fittings. Every project is unique. deal with issues as they arise. electricity. Scenario 2: o During the installation of the new window frames. o You may still have to pay part of their costs (current contract conditions). these subcontractors may need to be managed. identify areas to cut costs. I hope you see there is a need for a good Project Management method. The role of the Project Manager is to achieve project objectives within the targets set for time. resulting in the wrong product being developed. scope.SAMPLE Management Plaza . fittings. 1.3 Why a Project Management Method? Project Management deals with planning. Let us look at some typical things that can go wrong in a project: • Sample Project: A new house • Background information o Individual subcontractor firms are used to do the different specialist work (heating. • • Here you can see that a person (i. as there is always something different in each project. And so. a Project Manager) is needed to plan the work. There should always be a definite start and end to a project. this may affect the rest of the project and throw it off track. 1: PM Dashboard Example Foundation Q&A Workbook . so it can be used for any project. You could also say that these are the six aspects of project performance to be managed during a project. Manage by stages. Focus on products. Project Manager and Teams. Continued business justification. 5. It has a dial for each of the 6 performance targets and the Project Manager will keep monitoring them during the project. Quality. The Management Layer refers to the organization of the project. See the following Project Manager dashboard example. Project Manager Dashboard Scope Benefits Risk Cost Time Stage Plan – Products Quality Plan Actual Time Fig 1. temperatures may fall to below zero. These are the five characteristics of the project. The 7 principles are: (Note: Don’t worry if you don’t understand what these mean for the moment. Costs.Introduction – PRINCE2 3 fittings may not arrive in time. Manage by exception. Scope. Learn from experience. etc.SAMPLE Management Plaza . 6. Benefits and Risks. such as Project Board.) 1. This means that the same management layer can be used for different types of projects. A PRINCE2 project should include all 7 principles. 4. 1. Costs. 2. Benefits and Risk. 3. Scope. 7. This will give you Timescales. Defined roles and responsibilities. these will be discussed and explained in the next chapter. Quality. An easy way to remember them is to use the words TeCQuila SoBeR with Tequila spelled with TeCQ. PRINCE2 separates the management layer from the work to create the required products that the project has to produce (specialist work). 1. from running a 1 to 2 day project for the TV Programme such as “The Apprentice” (a popular TV Programme in the UK and US) to a company acquisition or even to the construction of the main stadium for the London 2012 Olympic games. Or you can use the memory aid “BC QRST”. You will see this more clearly when we discuss the process model later.6 Six variables / six performance targets The 6 variables / performance targets are: Timescales. Tailor to suit the project environment.5 What is PRINCE2? PRINCE2 is a generic method for Project Management. then Processes and finally. in a project concerned with building a house. Foundation Q&A Workbook . and measurable. the questions to ask are: Are the costs being controlled? and Are we within budget? Will the product be usable at the end of the project (in other words. the last chapter. monitoring and control of all six project variables (performance targets). what happens if one of the subcontractors does not show up? Benefits Risk Timescales Scope C ost Benefits Quality Risk Fig 1. “best practices” or good project characteristics). which is to allow new requirements to be added during the project. These elements are: Principles. Principles Themes Processes Tailoring Fig 1.Introduction – PRINCE2 4 Variable Timescales Cost Quality Scope Description The question to ask for timescales is.2 The six project variables / six performance targets PRINCE2 deals with the planning. delegation. you have the Principles. which is Tailoring. You can use the structure of this manual to help you remember. First. How much risk can we take on and how can risk be managed? For example.3 PRINCE2 Structure • Principles: PRINCE2 says that each project should consist of the 7 PRINCE2 principles (in other words. then Themes.SAMPLE Management Plaza . The PMBoK uses the term “6 competing Project Constraints” 1. Processes and Tailoring. therefore. clear. All projects are unique and therefore have risk. fit for purpose) and are products passing their quality checks? Is the scope well defined and clear to all stakeholders? Care must be taken by the Project Manager to avoid scope creep. Why are we doing this project and what are the benefits? Benefits must be known. Themes.7 PRINCE2 Structure (Elements) The PRINCE2 manual says that the PRINCE2 method consists of 4 main parts and PRINCE2 has chosen the word Elements (or Integrated Elements) to represent these 4 parts. and the benefits need to be delivered. “When will the project be finished?” Projects have to give a return on investment. and this happens throughout the project lifecycle. meaning that the product is well-defined at the start of the project and is made known to all stakeholders. constructing a bridge. In other words. Benefit 6: PRINCE2 continues to assess the viability of the project from a Business Case point of view. You can say “I monitor how well the work is going according to the project plan. This might seem like a good idea at first. this also applies to PRINCE2. but they will end up not managing the project in the long run. Let us start at the very beginning. If. it becomes an exception. and they are part of any project. Processes also answers “What products are to be created and when?” Tailoring: Tailoring answers one of the most common questions from a Project Manager. Processes: Processes provide information on the activities that are carried out during the project and by whom. but once an issue goes beyond a certain tolerance. defining products. These are Timescales. All persons on the Project Team should know what is expected of them. then the project should be stopped. there are many advantages to using a Project Management method. I will repeat this line in case you are in an elevator someday and somebody asks what you do. Benefits and Risk. a Project Plan must be created. organizing a conference.g. 1. everybody has the same idea of what they are working on and the expected end-product. Business Case. the expected return on investment is no longer probable at any point in the project. As a result. Scope.. e. We could say that Management by Exception allows the above-management layer to manage a lower-management layer.SAMPLE Management Plaza . but it is good to be aware of them. Benefit 2: PRINCE2 can be applied to any kind of project. to huge projects the size of running an election. therefore. and defining roles and responsibilities.9 What does a Project Manager do? You might already have a good idea about what a Project Manager does. but very often the Project Managers find themselves doing a lot of tasks as they try to keep the project on track. “How do I best apply PRINCE2 to my project or my environment?” • 1.8 Benefits of using PRINCE2: As you might possibly imagine. You will see other benefits as you continue with this course. There is a project to do and.” Monitor the 6 variables / performance targets The Project Manager will also constantly monitor the 6 variables we just discussed. get signoffs. I will list a few of them below. confirm that the following tasks can start. learning from other methods. They create the plan with help from specialists and it includes tasks such as leading a planning workshop. as they have the duty of checking that tasks are completed as agreed. I will also include some examples where necessary. estimating resources required. for example. scheduling these activities. suggestions. and so on. the Project Manager monitors how well the work is going according to the Project Plan.Introduction – PRINCE2 5 • • Themes: Themes answer the question regarding what items must continually be addressed during each project. Benefit 4: PRINCE2 is product-focused. Benefit 1: Best Practice: PRINCE2 has been used for more than 30 years in many thousands of projects. You don’t need to remember these. activities and dependencies. This allows the Project Manager to handle certain project issues. It should then be escalated to the next higher management layer. and discussions have helped PRINCE2 to become a best practice. and PRINCE2 keeps learning from these projects. This means that PRINCE2 can be used for projects as small as organizing a meeting. Change. This is usually one of the first tasks for the Project Manager when the project starts up. Benefit 3: PRINCE2 provides a structure for roles and accountability (also referred to as “Roles and Responsibility”). Organization. Quality. So all the feedback. Foundation Q&A Workbook . They review the completed tasks. Costs. or develop an IT System. The main objective for the Project Manager is to see that the project goes according to the plan. Benefit 5: PRINCE2 uses Management by Exception. This is even more important for the Project Managers. Quality. If an issue arises which could force the stage to go beyond the set tolerances. Foundation Q&A Workbook . The word recognize refers to the fact that you have to recognize this information if you see it written in a question. the candidate must show they understand the structure and key terminology of the method. Themes. • Recognize the characteristics of a project (Change. This will benefit the project and could also prevent some stakeholders from passing their work and responsibility back to the Project Manager.Introduction – PRINCE2 6 Dealing with Issues The Project Manager also has to deal with issues as they arise. I recommend that Project Managers spend the necessary amount of time defining and agreeing on Roles and Responsibilities at the start of the project. Therefore. • Recognize the definition of project. In the case of small issues.g. objectives and context of the PRINCE2 processes. they might choose to handle these themselves (e. Time: 1 hour Questions: 75 questions Type: Multiple choice Pass Rate: 50% pass mark Book: You cannot use the PRINCE2 manual during the Foundation Exam The PRINCE2 Foundation level is aiming to measure whether a candidate could act as an informed member of a project management team on a project using the PRINCE2 method within an environment supporting PRINCE2. refer to the PRINCE2 Practitioner Training Manual or the official PRINCE2 manual. so you can choose the correct multiple choice answer. Cross-Functional. The candidate should understand the following: • • • The characteristics and context of a project and the benefits of adopting PRINCE2. • The purpose. If you wish to have extra background information. This PRINCE2 Foundation Training manual is in line with the PRINCE2 Foundation Syllabus. Speed up the project Another task of the Project Manager that is sometimes forgotten is to look for opportunities to speed the project up and reduce the costs. Processes. Uncertainty). Depending on your company. 1. The PRINCE2 principles. getting a supplier to work an extra day to solve the issue and get the project back on track).10 PRINCE2 Foundation Exam & Syllabus Here is some information on the PRINCE2 Foundation Exam. the Project Manager can escalate it to the Project Board.11 What you need to know for the Foundation Exam From this Introduction chapter. management products and themes. Lastly. and have an idea of what they mean. • List the four integrated PRINCE2 elements: Principles. The purpose of the PRINCE2 roles. 1. and Tailoring. you should be able to: • Recognize the six aspects of project performance (six project variables / six performance targets (think TeCQuila SoBeR or BC QRST). Temporary. • Recognize the benefits of using PRINCE2. Unique.SAMPLE Management Plaza . you might need good soft skills to do this. So if you have not read it. Explain how the Project Board controls the project. PRINCE2 says that the project mandate is created by someone from the Corporate or Programme Management. and check and approve the plan for the Initiation Stage. but an average time for a Starting Up a Project could be one week. Explain when. which contains the outline of the Business Case. Show the relationship between Processes and Themes. Show which processes are done once and which are done more than once. The Initiation Stage Plan. Show how stages relate and how the Closing a Project process is part of the last stage. • This project example is about 8 months long.2.1 The Process Model and Project Timeline The PRINCE2 Process Model Perhaps you have seen and read the APMG approved Introduction to PRINCE2 book (based on the PRINCE2 Process Model). Starting Up a Project (SU) is the first process and has the following main outputs that are given to the Project Board: • • • The Project Brief. so these figures are just to give you an idea. which is the plan for the Initiation Stage. it appears from outside the project team. Cover the roles of the Project Manager and Project Board. The objective of this project timeline overview is to: 2. This is known as “Authorize Initiation. Timing: • The Starting Up a Project process can be very short compared to the rest of project.” They determine whether the project is worth doing (desirable.2 • • • • • Project Timeline overview Give you an idea of a sample project. At the bottom of the diagram you can see the text “Pre-Project”. Note: I do not use the concept of Exceptions in this Timeline overview. Foundation Q&A Workbook . Project Board 1st Decision: The very first decision the Project Board considers is whether to allow the Initiation Stage to start.SAMPLE Management Plaza .1 Starting Up a Project The trigger to start the project is the project mandate. It will differ from project to project. don’t worry. as it is also covered in this chapter. Give you an idea of how the processes might relate to each other in a project. where and by whom the important documents are created. Actually. The SU process is considered to be outside the project. As you can see from the diagram. The Project Product Description (part of the Project Brief). 2. Show how a project starts and how it moves from one process to another. Show how a typical project closes.The Process Model and Project Timeline 7 2 2. the project does not start until the Project Board takes their first decision. This provides a helicopter view of PRINCE2 and is a great way to get an introduction to PRINCE2. the SU process provides the information to start the project. The Introduction to PRINCE2 book will: • • • • • • • Give you a high-level introduction to the PRINCE2 Process Model. Show when the Project Board gets involved in a project. viable and achievable). So. they will only authorize one stage at a time. time 1 week 60 hrs Pre-project (feasibility) Based on OGC PRINCE2® material.IP SU Project Manager CS SB / CP Team Manager MP e. If the Project Board agrees. Most of the work in this IP stage is facilitated by the Project Manager.2.Once during project -. Authorize the Next Stage so the first delivery stage can start. Foundation Q&A Workbook . Roles & Responsibilities / Project Management Team Structure. especially the Business Case. which is whether the project should be allowed to continue to the 2nd stage. Persons representing users. They will review most of the information in the PID. who help with Product-Based Planning. who help with Product Descriptions and quality requirements. www. and Communication Management). the Project Board is ready to make their 2nd decision.4 Latest Version By Frank Turley. Reproduced under license from OGC Ver 1.Many times during stage -. The Project Plan. Benefits and ROI information. which are measurable and when (timeline) they are expected to be realized. which includes the creation of the Product Descriptions and estimating (planning. with support from: The Executive to develop (refine) the Business Case. which includes an overview of the Risks. who provides the expected benefits information. The Initiation Stage has the following main outputs that form part of the PID: • • • • • • • • • • The four strategy documents (Risk.g. Project Controls describing how the project will be controlled. Configuration. This is the first stage of the project.Once per stage -.SAMPLE Management Plaza . The Product Descriptions. Specialists (also known as “Subject Matter Experts”).2 Initiating a Project Process / Initiation Stage After the first Project Board decision.Once per Work Package 1: Authorize Initiation Project Board DP SU . the Project Manager uses the approved Initiation Stage Plan to run the Initiation Stage. The Senior user.1 Timeline example: Starting Up a Project 2. They will also review the Project Plan and the plan for the 2nd stage of the project. then they: • • Authorize the Project so the project can start. Quality. This data is stored in the Benefits Review Plan.MgmtPlaza. The Business Case document (which is the responsibility of the Executive).com Fix 2.The Process Model and Project Timeline 8 project mandate PRINCE2 Project Timeline / Example 7 Processes -. Project Board: 2nd Decision: At the end of the Initiation Stage. Once per stage -. time 1 week 60 hrs 4 weeks 850 hrs Pre-project (feasibility) Initiation (Planning) 1st Stage Based on OGC PRINCE2® material.Many times during stage -. Benefits Review Plan – Check and update if expected benefits have/ have not been realized. Capture and examine issues and risks.The Process Model and Project Timeline 9 project mandate PRINCE2 Project Timeline / Example 7 Processes -. and check risk information. Reproduced under license from OGC Ver 1.Once during project -.g. It is longer than the Starting Up a Project process and usually not as long as a normal stage but. the Initiation Stage is 4 weeks.MgmtPlaza. • Review the Business Case to see if the project is still viable.IP Project Board decisions SU IP Project Manager CS SB / CP CS : Optional SB Team Manager MP e.2. again. Next Stage Plan – A plan for the next stage that needs to be approved. In the example above.Once per Work Package 1: Authorize Initiation 2: Authorize the Project Authorize Next Stage Project Board DP SU . Update the Business Case and Project Plan with actuals to date.2 Timeline example: Initiation Stage Timing: • The Initiation Stage is where most of the initiating a Project process activities are done. www. the Project Board will do the following • Review the current stage. They mainly do the following activities: • • • • • Give out work to Team Managers in Work Packages. Managing a Stage Boundary (SB): As you can see in the diagram below. Provide regular reports to the Project Board.4 Latest Version By Frank Turley. The objectives of the Stage Boundary process are to prepare the following information for the Project Board: • • • • End Stage Report – How well the stage did compared to the Stage Plan. Project Board Decision: At the end of the stage.SAMPLE Management Plaza . • 2. this depends on the project. Foundation Q&A Workbook . Take corrective action to solve issues within their tolerance.com Fig 2. Continually review the stage status (where are we now compared to the Stage Plan?).3 Controlling a Stage – 1st delivery stage Controlling a Stage is where the Project Manager does most of their day-to-day work. while the next stage is 8 weeks. and escalate if necessary. check up on the status of these Work Packages and accept Work Packages back when complete. the SB (Stage Boundary) process starts towards the end of the stage and before the Controlling a Stage process ends. • Compare the progress of the project so far with the baselined Project Plan. mainly using the End Stage Report. The Process Model and Project Timeline 10 • • Check the Next Stage Plan, which is the plan to run the next stage. Review the Benefits Review Plan and compare expected benefits so far with actuals. project mandate PRINCE2 Project Timeline / Example 7 Processes -- Once during project -- Once per stage -- Many times during stage -- Once per Work Package 1: Authorize Initiation 2: Authorize the Project Authorize Next Stage Project Board DP SU - IP Project Board decisions SU IP Reports & Advise Project Manager CS SB / CP CS : Optional CS : Stage SB Work Packages SB Team Manager MP e.g. time 1 week 60 hrs 4 weeks 850 hrs 8 weeks Pre-project (feasibility) Initiation (Planning) 1st Stage delivery Stages - (Execution) Based on OGC PRINCE2® material. Reproduced under license from OGC Ver 1.4 Latest Version By Frank Turley, www.MgmtPlaza.com Fig 2.3 Timeline example: Controlling a Stage / Delivery Stage The very last thing that the Project Board does is to “Authorize the Next Stage” so that the Project Manager can continue with the next delivery stage. Timing: • • In this example, the delivery stage is 8 weeks long. This will, of course, depend on the type of project and you will learn more about this in the Planning Theme. You will also learn what is meant by the term ‘planning horizon’. 2.2.4 Next delivery stages Projects can have more than 2 stages, and they are all separated by a Project Board decision, as the Project Board uses stages to maintain control of the project. As you can see from the example, this current delivery stage follows the same management pattern as the previous stage. The main differences between the two stages will be the content of the Work Packages given to the teams to develop. Project Board Decision: The Project Board will carry out the same activities as described at the end of the last stage. Timing: • In this example, the current stage is the same as the last stage and, again, this can vary depending on the project. For example, if there was little risk involved in the 2nd delivery stage and the Project Board has lots of confidence in the Project Manager after they have seen him/her manage the first stage, they might decide to lengthen the stages to 10 or 12 weeks. Foundation Q&A Workbook - SAMPLE Management Plaza The Process Model and Project Timeline 11 project mandate PRINCE2 Project Timeline / Example 7 Processes -- Once during project -- Once per stage -- Many times during stage -- Once per Work Package 1: Authorize Initiation 2: Authorize the Project Authorize Next Stage Project Board DP SU - IP Project Board decisions SU IP Reports & Advise Reports & Advise Project Manager CS SB / CP CS : Optional CS : Stage SB Work Packages CS : Stage SB Work Packages 8 weeks SB Team Manager MP e.g. time 1 week 60 hrs 4 weeks 850 hrs 8 weeks Pre-project (feasibility) Initiation (Planning) 1st Stage delivery Stages - (Execution) Based on OGC PRINCE2® material. Reproduced under license from OGC Ver 1.4 Latest Version By Frank Turley, www.MgmtPlaza.com Fig 2.4 Timeline example: Next Delivery Stages 2.2.5 Last delivery stage and Closing a Project The project will continue until all delivery stages are complete, and it will be closed at the end of the last stage. Tip: “The Closing a Project process is always the last part of the last stage.” Normally towards the end of a stage, the Stage Boundary process is used to report on the current stage and plan the next one. As you can see from the diagram below, the Stage Boundary process is not used, but the Closing a Project process starts up near the end of the Controlling a Stage process. The Closing a Project process is where the Project Manager prepares the project for closure. project mandate PRINCE2 Project Timeline / Example 7 Processes -- Once during project -- Once per stage -- Many times during stage -- Once per Work Package 1: Authorize Initiation 2: Authorize the Project Authorize Next Stage Authorize Project Close Project Board DP SU - IP Project Board decisions SU IP Reports & Advise Reports & Advise Reports & Advise Project Manager CS SB / CP CS : Optional CS : Stage SB Work Packages CS : Stage SB Work Packages 8 weeks CS : Stage SB Closing a Project CP Team Manager MP e.g. time 1 week 60 hrs 4 weeks 850 hrs Work Packages 8 weeks 1 week 8 weeks Pre-project (feasibility) Initiation (Planning) 1st Stage delivery Stages - (Execution) Closing Based on OGC PRINCE2® material. Reproduced under license from OGC Ver 1.4 Latest Version By Frank Turley, www.MgmtPlaza.com Fig 2.5 Timeline example: Closing a Project Foundation Q&A Workbook - SAMPLE Management Plaza The Process Model and Project Timeline 12 The objectives of the Closing a Project process are to: • • • Update the Project Plan to show what has been delivered and approved, and when. Hand over products, obtain acceptance, project evaluation and create the End Project Report. If necessary, check if expected benefits been realized and update the Benefits Review Plan. The last thing that the Project Manager will do in the Closing a Project process is to recommend Project Closure to the Project Board. Therefore it is not the Project Manager that closes the project. Project Board Decision: The last decision the Project Board will take is to close the project. This is known as “Authorize Project Closure.” Before taking this decision, they will do the following: • • • • Review the baselined documents (Business Case and Project Plan) from the PID with the current documents to see how the project has performed compared to the original goals. Confirm that products have been accepted and signed off. Check the Lessons Learned report and hand it over so that it can be used for future projects. Review the Benefits Review Plan and compare expected benefits so far with actuals. Timing: In this example, the stage is 9 weeks and the Closing a Project process is done over a period of two weeks. Again, this will be different for each project but it does give you an idea. 2.2.6 Timeline Summary The objectives of this Project Timeline were to: • Give you an idea of a sample project. • Give you an idea of how the processes may relate to each other in a project. • Show when the Project Board gets involved in a project. • Show which processes are done once and which are done more than once. • Show how stages relate and how the Closing a Project process is part of the last stage. The Timeline diagram has also shown: • How the project can be divided up: Pre-Project, Initiation, Delivery, and finally, Closing. • Which processes happen once or more than once in a project, e.g., the blue-coloured processes, such as Starting Up a Project, Initiating a Project and Closing a Project. Project Board decisions 1: Authorize Initiation 2: Authorize the Project Authorize Next Stage Authorize Project Close Directing a Project Pre-project (feasibility) Initiation (Planning) delivery Stages - (Execution) -- Once during project -- Once per stage Closing www.MgmtPlaza.com Based on OGC PRINCE2® material. Reproduced under license from OGC Fig 2.6 Project Board Decisions 2.3 What you need to know for the Foundation Exam This is an extra chapter that I have added to help to introduce how a PRINCE2 project works. I feel it is important to understand how a project works before you are introduced to the Principles and Themes, as this will help your understanding. This information will be covered again in the Processes section, so I will discuss what you need to know as you are introduced to each chapter. For now, just be able to understand the information in this section of the manual. Use the Foundation Q&A Workbook to learn more about the types of exam questions to expect. Foundation Q&A Workbook - SAMPLE Management Plaza We have mentioned before that Projects are unique. From a PRINCE2 point of view. the project will cost €20. and I have also included the theme or area where these principles are discussed. therefore each project should have a Business Case. the cost of not complying with new legislation might affect the company’s market share. This information is also referred to as the business justification information. We can also say that each project has some Foundation Q&A Workbook . meaning that there is always something new.3 Principles: Learn from Experience PRINCE2 project teams should learn from previous projects.SAMPLE Management Plaza . showing why the project should be done. the expected Return on Investment falls (for example. the expected benefits and timescales. I like the following definition of a Principle: Principles provide a framework of good project practice for those involved in a project. can happen at the end of each stage.000 for the company. For example. The Business Case is regularly reviewed during the project to check its continued business justification. To sum it up. The Business Case document details the full Business Case. by about 80%).1 The Theme or Information that supports each Principle (NR) 3. The continued business justification principle supports the need for a documented justification at the start and during the project. 3. then the project will most likely be stopped.000 but over the first 2 years.1 Principles Introduction to principles Each PRINCE2 project should include the 7 principles and if even one of these principles is missing from the project.2 Principles: Continued Business Justification A PRINCE2 project must have continued business justification. the costs. This means that the reason to start the project must make sense from a business point of view. a Principle is a core value that must always exist in a PRINCE2 project. think of principles as guides for good practice. They can be summarized as follows: Principles Continued business justification Learn from experience Define roles and responsibilities Manage by stages Manage by exception Focus on products Tailor to suit the project environment Which Theme or Information supports each Principle? Theme Business Case & Theme Progress Lessons Learned (Log & Report) Theme Organization Theme Progress Theme Progress Theme Plans Tailoring information Table 3. This creates an element of risk in each project. There are seven principles below. “Does the project have business justification?” is the same as asking “Does the project have a valid Business Case?” If at any time during the project. it cannot be considered a PRINCE2 Project. it will deliver a savings of €80. The business justification is then checked throughout the lifetime of the project. This could therefore be given a monetary value. it will prevent from starting some of the projects that have few real benefits for the company. Even projects that are started to comply with new legislation require justification. This. For example. and there must be a clear Return on Investment. so that decisions can be made with the business value in mind.Principles 13 3 3. for example. or the company could lose clients. They should therefore take initiative to uncover previous lessons learned and take these into account during the life of the project. As the Business Case document is one of the first documents created in a project. “Learn from experience” covers the full lifetime of the project. so it is important that the project has a clear team structure. and “Who makes what decisions?” 3. then this can be taken into account when creating the plan for the next stage. In PRINCE2 we refer to these manageable chunks as stages -. and they provide a good approach to project planning. people need to know what to do and what they can expect from others. PRINCE2 states that a project should have defined and agreed roles and responsibilities within an organization structure that engages the Business.4 Principles: Defined Roles and Responsibilities In any project. but this also gives them more work. as they: 1. This principle states that these three primary stakeholders must be correctly represented in the Project Management Team and in the Project Board. monitored and controlled on a stage-by-stage basis. 3. The Project Board has greater control over the project when the number of stages is high. 3. Suppliers provide the resources and expertise to the project and produce the products. Foundation Q&A Workbook . then get advice from other external people (for example. Any lesson learned during the project should be documented. These Management Stages are separated by Decision Points (also known as “Control Points”) by the Project Board.5 Principles: Manage By Stages A good way to go about doing any large task or project is to break it up into manageable chunks. There are a minimum of two management stages in a project: the Initiation Stage and one further Management Stage. otherwise it might be impossible to manage the project.actually. According to PRINCE2.” a good Project Management structure answers the questions “What is expected of me?”. Users will use the products once created. 2. Have a high-level Project Plan for the whole project and a very detailed Stage Plan. this is one of the most important principles to get right from the beginning. Make sure that plans for future stages can learn from previous stages. Projects can have people from different departments or companies. from Starting Up a Project. as the project progresses until the Project Closes. “What can I expect from others?”. Allow the project to be divided into a number of manageable chunks. a project has 3 primary stakeholders. they are called Management Stages. They are the Business sponsors. Fewer stages in a project indicate that the Senior Management will have less control and a lesser amount of work for the Project Board. so to summarize the principle of “Defined Roles and Responsibilities. which must be investigated.SAMPLE Management Plaza . the Project Board assesses the performance of the last stage. so they receive the benefits. User and Supplier Stakeholder interests. At the end of each stage. Documented lessons should be passed on so they are available for future projects. There are advantages to working in stages. Each role in the project management team has a defined role and agreed responsibility. Now you can see why PRINCE2 urges the project team to take the necessary initiative to learn from similar projects that may have been done in the same company and if not. if one team delivers their products quicker than expected. • • • Business sponsors are those who make sure the project delivers value for money. and decides whether to proceed with the next stage. For example. Users and Suppliers. PRINCE2 also states that it is the responsibility of everyone involved with the project to seek lessons learned rather than waiting for someone else to provide them. monitored and controlled on a stage-by-stage basis. A PRINCE2 Project is planned.Principles 14 unknowns. bring in external consultants). the Business Case and the plan for next stage. A PRINCE2 project is planned. From my perspective. The Closing a Project process is then the last part of the 2nd Stage in a twostage project. less than the 10% tolerance). If everything is going OK. This can cause many issues for your project. These are benefits for the project stakeholders. dependencies. or create a new profitable market segment. The PRINCE2 name for a big issue is Exception. I’ll use the example of the GSM. Tolerance Scope: The requirements for a new GSM will have mandatory requirements plus ‘nice to have’ requirements.SAMPLE Management Plaza . build correct expectations.g.” A good Product Description provides clarity. as Time and Cost are easier to understand. imagine you are sitting on the Project Board. unless there is an exception. the costs increase by 2% -. • Tolerance Quality: You are creating a new GSM (a common name used to refer to a mobile telephone in Europe) and you want the keyboard to work for an average user for 7 years but you have a tolerance of ±5%.that one of the providers cannot supply a 5 megapixel camera with the correct integration specifications. There will be a set tolerance level for risk and if you hear of something that is above this level. A good Product Description also makes it easier to determine resource requirements. If the problem is small and it remains within the tolerances (e. Scope. then the Project Manager can deal with it and doesn’t have to alert the Project Board and take up their time. Cost. and scope. misunderstanding of the quality required.g. One question asked throughout the project is: “Is the project still on track to meet the expected benefits?” • • Tolerance Risk: Again. and help to deliver the required products. • 3. I will start a simple explanation and then give you the PRINCE2 definition. and activities. as it defines the product’s purpose. composition. The PRINCE2 manual states the following: “A PRINCE2 project focuses on the definition and delivery of products. you won’t hear from the Project Manager except for the regular reports during a stage and at the end of the stage. As it is important that you understand it. their quality requirements. Quality. PRINCE2 lists 6 tolerances that can be set. Now. The layer below should only notify the above management layer if there is a big issue that is outside their tolerance. The PRINCE2 definition for Manage by Exception is as follows: A PRINCE2 project has defined tolerances for each project objective to establish limits of delegated authority. but must include the mandatory requirements. and they don’t need to be bothered by each small issue.7 Principles: Focus on Products You can imagine what happens when a product is not correctly described. hence the term Manage by Exception. so that all stakeholders will have a clear idea of what to expect. time delays. To summarize: Manage by Exception provides the above management layer with a system to manage and control the lower management layer. A detailed Product Description will guide the project.6 Principles: Manage by Exception This is a term that people who are new to PRINCE2 will most likely not have heard before. then you will notify the Project Board. All project stakeholders can have different ideas on what the product should be. Foundation Q&A Workbook . Example: You find out that the risk is now very high . derivation. increase marketing share by 5%. I will give examples only for Quality.Principles 15 3. costs could change ±10%). Risk and Benefit. Tolerance Benefit: A Benefit is a measurable improvement resulting from the project for one or more of the stakeholders. format. Risk and Benefit. When it comes to factors like time. Manage by Exception is used by each level in the Project Organization to manage the level below. This can cause many unnecessary meetings. These are Time. which means the issue is outside the agreed tolerance. quality criteria and quality method. additional costs and even an end product that is of no use to anybody. the Project Manager has some tolerance to play with before they have to advise the Project Board that there is or might be a problem (e. Scope. unnecessary new requirements. For example. cost. The Focus on Products principle states that a Product Description should be written as soon and as clear as possible in the project. in particular. So the project can decide which ‘nice to have’ requirements to include. importance. “We don’t need a Project Method.1 “The Theme or Information that supports each Principle. where 2 teams compete with each other and each team has a Project Manager. Foundation Q&A Workbook .9 What you need to know for the Foundation Exam There are normally 2 to 3 questions on principles. for more information. 3.SAMPLE Management Plaza . as PRINCE2 can be applied to any type of project. • Have a basic understanding of what each principle is about. capability and risk. • Know how many principles a PRINCE2 project should have.8 Principles: Tailoring or Tailor to suit the Project Environment A PRINCE2 project should be tailored to suit the project’s size.Principles 16 The Plans theme supports the Focus on Products principle as Product Descriptions are created as part of product-based planning. The Project Initiation Documentation (PID) should describe how the PRINCE2 method is tailored for that particular project.chapter 20 of this manual. importance. • Be aware of Table 3. Ensure that the project’s controls are based on the project’s scale. . This is usually a 2-day project.” This would happen if you try to follow PRINCE2 like a robot. One criticism most project managers often get is that. environment. then you should tailor PRINCE2 to suit the project. You can also see that most Project Managers keep making the same mistakes week after week. The Apprentice. The purpose of tailoring is to: • • Ensure that the Project Method relates to the project’s environment (i. (Note: If there is a lot of risk in your project environment. Note: This is all the information you need to know about tailoring for the Foundation Exam.e.View/listen to the Principles training video to get a more animated presentation on this subject.” You don’t need to know this for the exam but it is a nice overview. If your project is a small one. I often use the popular TV program. complexity. so that you will: • Be able to recognize the principle names if mentioned in a question. if working in a financial environment. but that is not the way to use PRINCE2. then more time should be spent on dealing with Risk). This shows that they don’t understand the principle of Learn from Experience or Lessons Learned. You can see that PRINCE2 can be used by each Project Manager and the paperwork can be just a checklist with some notes.Click here to get other free training material from Management Plaza Companies who are investing in project management knowledge can get free access to our PRINCE2 Self Study courses. Therefore. . make sure you have an understanding of this chapter. capability and risk. More information . as an example. (You will learn more about this in the Plans theme. Click here for more information. or a very large one. such as to host a workshop with 10 people.Use the Foundation Q&A Workbook to test your knowledge and prepare for the exam. Refer to “Tailoring” -. Our projects are not that big and a project method will add a lot of unnecessary paperwork to each project.) 3. complexity. then align it with the existing management structure). like building a nuclear power plant. • • • • We need a Business Case to define the reason for doing the project and to check to see if this reason is still valid. you have only one chance to get it right. the Executive might involve a person from the financial department to assist with all financial information.2. For example. and what questions they help to answer. The Executive is responsible for creating the Business Case. This is covered in the Quality Theme.Themes Introduction 17 4 4. 4. Consider the following question for a moment: Question: What activities will you do at the start of the project to set it up.SAMPLE Management Plaza . For example. so each Theme provides knowledge (how to go about) on a specific area of project management. define it and use to monitor and maintain the project throughout its lifecycle? Answer: The answer to this question will be the themes.2 List of Themes I will briefly discuss each Theme. This is covered in the Organization Theme. This is covered in the Business Case Theme. Why are we doing this project? 2. Themes should also be tailored to suit the project you are working on. Quality. Planning. How do Processes Relate to Themes? The PRINCE2 processes address the chronological flow of the project. the Start-Up process activities and the Project Initiation process activities are all executed once. Foundation Q&A Workbook . • Remember that Themes are activities that you do at the start of the project to set it up and then use to monitor and maintain the project throughout its lifecycle. This will depend on the project and the environment you are working in. what they are doing.) will be used throughout the project lifecycle. and what are their responsibilities. We need to create the Product Descriptions and then create a Project Plan to guide the project and produce the products. In other words. so the Quality and Risks themes would be used in much detail. We need to know who is who. This is covered in the Risks Theme. but it can be written by others or with help from others. explain what each one does. What are the business reasons? 3.1 Themes Introduction Introduction to Themes PRINCE2 says that themes are the parts of the project that need to be continually addressed throughout the project lifecycle. processes guide you through the typical activities that you need to do at different stages of the project. and then determine that the users will be able to utilize these products as expected. For example. Risk. The themes that you work on in these processes (Business Case. such as the Business Case. etc. We need to monitor how the intended products will match users’ expectations. 4. if you are building a lunar module. This will make it much easier for you to visualize and remember. We could also say that Themes provide guidance on how things should be done during the project. It will be possible to see if there is a valid Business Case at the start of the project and how to check if the Business Case still has value throughout the project. What are the benefits for the organization? The Business Case Theme also describes how to define the Business Case. We also need a way to evaluate and manage risks. Perhaps a better way to explain is by saying that Themes are knowledge areas.1 Theme: Business Case The Business Case answers questions like: 1. etc. Plans. Themes are therefore used throughout the project. This is covered in the Plans Theme. How to do product based planning? 4.2. It is further expanded to a separate Business Case document. Who is who in the project? 2. and then document this in the Product Descriptions. question the level of quality expected of each product produced in the project. Who is responsible for the Business Case? 4. such as standards to be applied and the various responsibilities for achieving the required quality levels during the project.3 Theme: Quality The Quality Theme answers the questions: 1. This is expanded into the outline Business Case at the start of the project and will become part of the Project Brief. managing. What will be the level of detail required for each plan? 7. be fit for use? 2. Who is the Project Manager? A good way to remember this is with the following question: What are the rules of engagement? The Organization Theme provides information on the Project Management Team. A PRINCE2 project is based on a customer/supplier environment. which becomes part of the PID. What quality level must the product be at by the end of the project so that it can be correctly used as intended.2. How to go about creating the project product 2. 4.SAMPLE Management Plaza . who will specify the result and most likely pay for the project. Who needs to receive a copy of the plans? Foundation Q&A Workbook . What can we do to check the quality during the project and make sure the project delivers the required level of quality? This theme helps to uncover the quality requirements. or in other words.2. When will certain things be done? 9. do the work and deliver the results. What are the exact roles and responsibilities? 6. who will provide the resources.Themes Introduction 18 The project mandate document usually contains some Business Case information.4 Theme: Plans This Theme answers questions such as: 1. Who is sponsoring the project? 3.2 Theme: Organization The Organization Theme answers the following questions: 1. and its structure and accountability. The other party is the supplier. Have defined responsibilities for directing. One party is the customer. PRINCE2 states that a successful Project [Management] Team should: • • • Have Business. How much will it cost? 6. Have an effective strategy to manage communication flows to and from stakeholders. 4. 4. The PRINCE2 approach to quality is to focus on products as early as possible. and delivering the project. User and Supplier representation. The Quality Management Strategy document is used to define how quality will work in the project. Who represents the Users and Suppliers? 5. What will be the steps involved? 3. What quality has to be attained 5. Who from the Organization is involved and what is their responsibility? 8. This Theme helps to uncover the following information: 1. How can risks be identified. would have a positive or negative effect on the project.2. (2) how to act upon and (3) how to manage them. as in new requirements. Configuration Item Records.g. timescales. issues and changes. quality and benefits. Any proposed change must be correctly dealt with. 4. and (c) the Team Plan. controlled and verified? 2. How can the possibility of risk be reduced? 5. The word Threat is used to describe a risk that would have a negative impact on the project's objectives.6 Theme: Change All projects will have issues and most projects will have requests for change. which acts as a day-to-day plan for the Project Manager. All projects need a good Issue and Change Management approach from identification. identified. SharePoint. Each project requires a Configuration Management System. All of these issues and changes can have a direct impact on the original Project Plan. The project plan gives an updated picture of the status of the project that can be compared against the baselined Project Plan to see how well the project is going when compared to the original plan. What are the risks? 2. Product Description. The word Opportunity is used to describe a risk that would have a favorable impact on the project's objectives. See Risk as having an impact on the project's objective rather than on the project itself. Shared Drive)? 4. when and by whom a specific target or set of targets is to be achieved. How should issues and changes be handled? 3. as it tries to do something new. which is used by the Team Manager. It will answer questions such as: 1. How can risk be managed and monitored throughout the project? Risk is an uncertain event or set of events that if they should occur. The Risk Management Strategy document describes the specific Risk Management techniques. costs. Risk Management refers to the procedure to follow to identify and assess risk. etc.g. What if the risks happen? 3. 4. which tracks products. There is a lot of text in a plan to help explain what will happen. You will learn about the different levels of plans: (a) the Project Plan.2. This Change Theme deals with the question: “What is the impact of this issue?” Therefore. In other words.)? Foundation Q&A Workbook . The Change Theme also covers Configuration Management..Themes Introduction 19 A PRINCE2 plan is not just a Gantt chart. analyzed and documented? 4. Issues and Change Control happen during the full lifecycle of the project. The Configuration Management Strategy document describes how issues and changes will be handled in the project. this theme describes (1) how the project can assess these issues and requests. a risk can impact what the project wishes to achieve. the objective is not to prevent changes but to get changes agreed upon and approved before they can take place. What data should be kept for each product (e. and the plan for the next stage. which is a high-level plan and is mostly used by the Project Board. Remember. What tools will be used (e. Niku Clarity. (b) the Stage Plan.. Moreover.SAMPLE Management Plaza . It is a document that describes how. assessment and control of issues. How should products be planned.5 Theme: Risk Each project is unique. There is always a certain amount of risk attached to each project. it refers to planning and how to respond to these risks. These targets will include the project's products. the products developed so far. The Project Plan is updated at the end of each stage to show what has been done. it is a lot more comprehensive than that. Foundation Q&A Workbook . Control is all about decision-making and is central to project management. therefore. You will be able to answer a good number of Theme-related questions with this information.SAMPLE Management Plaza . To provide a forecast for the project objectives and the project's continued viability. Where we are now compared to the plan. 2.7 Theme: Progress During the project lifecycle. the project needs to be monitored. It is necessary to continually evaluate throughout the project lifecycle whether the project should be continued or not. Checks must be done to ensure that the escalation process is working correctly. Is the project still viable? The purpose of the Progress Theme can be explained in three parts: 1. 2.3 What you need to know for the Foundation Exam This is an easy introduction chapter to Themes so it would be very good to understand this chapter. How the project will be controlled. checking the project viability. To be able to control any unacceptable deviations. Progress is about checking development of the project when compared to the plan. In other words.2. • List two questions that each Theme helps to answer. This theme. Use the Foundation Q&A Workbook to learn more about the types of exam questions to expect. Highlight and Stage reports have to be written to show how the project is progressing in relation to the agreed plan. To establish how to monitor and compare actual achievements against those that have been planned. addresses the following concerns: 1. 3. and 4. 3. When reporting will be done. 4. so as to ensure that the project remain viable against its approved Business Case. and controlling any deviations. Tip: A good test: Try to answer the following questions for each theme.Themes Introduction 20 4. If you are a Project Manager. The approach to confirming the benefits and how the Business Review Plan is used during and after the project. viable. If the Business Case becomes invalid during the project.3 The Business Case knowledge provided by PRINCE2 The purpose of the knowledge in the Business Case Theme is “to provide a structure to judge whether the Business Case is desirable. achievable and worth the continued investment that is made during the project”. then you may not get access to the Business Case. Is it possible to do? Are we capable of delivering? Is it possible to deliver the benefit? If not. The typical contents of the Business Case and Roles and Responsibilities. As you will learn later. You will learn what questions to ask about the Business Case by reading this Theme. someone somewhere in the organization had requested the project and found some budget to pay for this. Business Justification is also one of the 7 principles of PRINCE2. The path to creating a Business Case. Business Justification: “Business Justification” is a popular term in a number of methods and is now used by PRINCE2. Let’s take a look at what will be covered in this Business Case Theme: 5. then the project must be stopped. Outcome and Benefits? You will be able to give an example after this section. Let us look at that statement again and break it up. • Provide a structure: • Desirable: • Viable: • Achievable: • Worth the continued investment: Provide guidelines to follow. If you work for a supplier that is generally contracted out to clients. Maintain and Confirm and who is responsible for each step. The four points in the project where the Business Case can be verified. Again. What is a Business Case? What is meant by the terms Output. I had the opportunity to be a Project Manager on a number of projects and I did not see a real Business Case document in most of them. Types of Business Cases. Business Justification means that there is a valid business reason for doing the project and it remains valid throughout the project. but you should have an idea of the potential value (benefits) of the project for the client. I have never seen this in paper format. You could also say the Business Case theme provides a mechanism to judge whether the project is and remains desirable and achievable.5%) then the supplier’s Business Case is valid. then the project should be shut down. Did they write a Business Case document? Perhaps they did or perhaps this was just decided at a management meeting where one person presented the reasons why they needed a product. If the client pays €50 per hour (+. However. but it usually goes something like this: If the cost to hire a permanent employee is €30 per hour. Foundation Q&A Workbook . This includes the steps Develop. 5.Business Case Theme 21 5 5.1 Business Case Theme Introduction to Business Case Knowledge • • • • • • • • The purpose of the Business Case Theme. Verify. Determine if this product is really needed (benefits v. ask to see the Business Case for the project. then the supplier needs to charge €50 per hour.2 What happens in the real world? Before I heard of PRINCE2.SAMPLE Management Plaza . and they agreed on a budget with the rest of the management team. suppliers are supposed to have their own Business Case. they got permission. dis-benefits). Question to uncover Output: Question to uncover Outcome: Question to uncover Benefits: What is the product that will be delivered by the project? What can the users do better with this product? List the measurable improvements of using this product. the Project Manager is constantly asking “Is the continued investment in this project still worthwhile?” PRINCE2 assumes that there will be a customer who is requesting a product.” From a PRINCE2 project point of view. 5.4 What does a Business Case do for the project? The Business Case gathers the information to allow the management to judge if a project is desirable. The clients will be able to order and view all account information online and don’t need to call as often. or the supplier can be external. viable and achievable.1 Output. who will pay for the product and will perhaps use the product. e. Outcomes describe what users can do better. These are also known as specialist products and the project is set up to create these products. so I will start with 3 simple questions to help explain Output. 30% reduction in sales costs Fig 5. you find out the following: Two of your bigger clients don’t wish to use Web-based applications in their purchasing department. therefore. My objective here is to explain what these terms mean and.g. Easier to create reports Benefits Measurable improvements E.g.SAMPLE Management Plaza . Both the customer and supplier can exist within the same company (two different departments). Try to see Benefits as the measurable advantages of using the product. Once created. Foundation Q&A Workbook . The return on your investment (ROI) will change. As the Project Manager. resulting from an outcome that is perceived as an advantage by one of the stakeholders. I don’t like definitions that hang in the air. as less administrative work is required. Benefits: PRINCE2 says that Benefits are the measurable improvements. but you will recommend to the Project Board to stop the project if not. However.g. A good question to ask here is “Why is the Business Case maintained and what does this mean?” Let me give you an example to explain this. Your company will invest €100. 3 months into the project. faster reporting. also. The Business Case needs to be updated with this information.000 in a Sales application and it expects to have a return on its investment in 20 months due to reduction of two administrative persons. it is then maintained throughout the life of the project. you want to show that the project is still worth doing (if you think it is). Outcome and Benefits Outputs: The Outputs of a project are the products that the users will use.g. PRINCE2 also assumes a Supplier who will produce the product.5 How to best describe what you get from a project? PRINCE2 uses the terms “Output. CRM System Outcome Result of change E. So as you can see. The Business Case is normally developed at the start of the project unless it is provided by Corporate or Programme Management. how they differ from one another.Business Case Theme 22 5. and therefore worthwhile to invest in.” These terms help to describe what we get from a project. so you will need to keep one admin person. this sounds like a good project. I prefer to use a focused question to help explain something. Outcome and Benefits. Results in Results in Output Tangible product E. but most benefits are usually realized after the project has closed and sometimes a long time after. As you can see then. we say that an Outcome is the result of the change derived from using the project's outputs. as it will take 32 months instead of 20 to recoup the cost of the project. Outcome: You may have heard the expression “outcome is a result of change. Benefits can be realized during the project.. Outcome and Benefits. This is just for background information 5. It is then verified at key decision points during the project. Maintain: Develop the Business Case. Benefits • Question: What are the measurable benefits of using this product? • Answer: Some answers could be: o 40% cost-reduction in handling client data. with help from other people.6. The Business Case is first verified by the Project Board so that the project can start. Outcomes and Benefits. o Overall revenue increased by 12% annually.Business Case Theme 23 Exercise: What are the Output. 4. The outline Business Case is extended into the Business Case document usually by the Executive. For example. When Before the project starts Pre-Project (SU) Initiating a Project (IP) Description The Project Mandate document usually contains an outline of the Business Case and will explain the reasons why the project is needed.1 Step 1: Develop (Create) the Business Case The Executive is responsible for creating the Business Case. The Business Case information is taken from the project mandate and copied to the outline Business Case. Verify: 3. NOTE: * NR means this is Not Required for the Foundation Exam. such as at the end of each stage. Verify the Business Case. Exercise: Think about a recent project and list the Outputs. o Easier to get reports from the system. Notice how all the answers are vague. o 15% increase in sales as users can order online. NR* There are 4 steps to create the Business Case. o Easier for administration staff to track orders. Outcome and Benefits for a new Sales system project? Output • Question: What is the product that will be delivered by the project? • Answer: This is the Sales system.SAMPLE Management Plaza . It will be part of the Project Brief. but it can be written by others or with help from others. the Executive might involve a person from the financial department to assist with the financial information. Foundation Q&A Workbook . Outcome • Question: What can the users do better (differently) with this product? • Answer: Some answers could be: o Sales orders are processed quicker and more accurately. and there are no measured criteria. 5. They are: 1. o Client can access data online and track orders. and it becomes part of the PID. Confirm the Benefits: These are defined in the Benefits Review Plan. Maintain the Business Case.6 The path to creating the Business Case The Business Case is developed in the Initiation Stage and maintained during the project. Develop: 2. Develop Business Case Maintain Business Case Outline Business Case Verif y outline Business Case Business Case Verif y detailed Business Case Business Case Business Case Verif y updated Business Case Pre-Project Initiation Delivery Stages Final Stage Fig 5.2 Step2: Verify the Business Case – By Project Board What does verify the Business Case mean? • It means to determine whether the Business Case is worthwhile.. • This verification is done at a number of points in the project by the Project Board. Question: Where do you think would be good points in the project for the Project Board to Verify the Business Case (to see if the Business Case is worthwhile)? Tip: Project Board decision points.6.2 Develop the Business Case 5.3 Verification Points Project Board verification points • Verification Point 1: At the end of the “Starting Up a Project” (Pre-Project) process.com Pre-Project Initiation Stages .SAMPLE Management Plaza .Business Case Theme 24 Corp. • • Verification Point 2: At the end of the Initiation Stage. Verification Point 3: At the start of each new delivery stage. Project mandate Corporate or Programme Management Authorize initiation Authorize the project Direction Project Board Reasons for the project Outline BC Outline of BC is part of the Project Brief Business Case doc Becomes part of the PID Executive = owner Management Project Manager Executive = owner By Frank Turley www.Execution Fig 5.MgmtPlaza. Foundation Q&A Workbook . Average time providing information to clients about orders and past orders. you must include how the benefit will be measured and when this benefit will be realized.4 Step 4: Confirm the Benefits Benefits are identified and written down at the start of the project in the document “The Benefits Review Plan” and the Business Case. So the purpose of the Benefits Review Plan is to: • Define clearly how to measure the benefits. Example: The Project Manager will check for continued business justification during the Stage Boundary process. the Benefits Review Plan is used to plan the assessment of benefits.6. Example of measureable: X% reduction in costs. and also for assuring other stakeholders that the project remains viable. the Executive is the accountable person for the project. You can then compare the new results to the current situation. along with any information on issues and risks.6. Foundation Q&A Workbook .7 The Benefits Review Plan The purpose of the Benefits Review Plan is to identify the benefits and most importantly. X% increase in profits Benefits are usually realized after the project is closed. the Business Case is used to justify the continuing viability of the project. The Executive is responsible for ensuring that the project is value for money and is aligned with the corporate objectives. In other words. The Benefits Review Plan may be updated at the end of each stage in the project. So.3 Step 3: Maintain the Business Case What is meant by Maintain the Business Case? Maintain the Business Case refers to keeping the Business Case up to date (living document) to reflect what is happening in the project. Let’s take a Sales Application example: We can measure the following and baseline this information: • • • • Average cost to handle each order by telephone and follow-up. but some can be realized during the project. 5. Customer satisfaction (take a survey today). and perhaps even the updated cost of the next stage.SAMPLE Management Plaza . when is a good time to update the Business Case during the project? A good time to update the Business Case is at the end of every stage. Average time and cost to create sales reports. or at the end of a stage. It may be done when assessing Risks or Issues. so the current situation becomes the baseline.Business Case Theme 25 Other verification points are anywhere the Business Case is updated or reviewed. as you will have the true cost of the last stage. For example.4 Confirm the benefits The diagram shows that Confirming the Benefits is done at the end of each stage and after the project. some of the typical changes can be an increase or reduction in cost. The step Confirm the Benefits checks to see if expected benefits have been realized. new information on a risk. etc. This information is placed in the Benefits Review Plan. to select how the benefits can be measured. 5. Benefits Review Plan Create Benef its Review Plan Benefits Review Plan Benefits Review Plan Benefits Review Plan Confirm Benefits If realized during the project Confirm Benefits If realized during the project Conf irm Benef its Pre-Project Initiation Delivery Stages Final Stage Post-Project Fig 5. For each benefit. In other words. So. 5. not the Project Manager. 50% of the current sales support staff may have to look for a new job. as more than 66% of customers would never wish to order online and prefer to use the telephone. Project start and end. The Business Case contains the following parts: BC Parts Executive Summary Reasons Business Options Description A short overview of the Business Case for upper management Reasons for doing the project (comes from project mandate) PRINCE2 teaches that there are always three options to consider concerning any investment. and Do something “Do nothing” may seem a bit strange. risks and expected benefits. benefits. with the online CRM application. For example. Tip: If you can’t measure a benefit. and they become more accountable to the Corporate or Programme Environment. This will also ensure their continued commitment during and after the project. These benefit descriptions should show that the project is value for money (worth the investment). According to PRINCE2 a dis-benefit is an outcome that is seen as negative by one or more stakeholders. A summary of the major risks (comes from Risk Register). but let me give you an example.Business Case Theme 26 • Define the activities required to measure the expected project's benefits. • The Senior User is then responsible for using the product to achieve the benefits. Another name might be a negative side-effect. The Senior User is responsible for specifying the benefits and realizing the benefits. then don’t claim it. These are: Do nothing. List each benefit and how and when it can be measured. The “Do nothing” option should always be the first option. benefits). 5. It is created in the Initiation Stage by the Project Manager.8 The Contents of a Business Case Business Case Introduction The Business Case should describe the reasons for the project and include information on the estimated costs.SAMPLE Management Plaza . Why should the Senior User be responsible for specifying and realizing the benefits? • The Senior User represents the users who are asking for a new product so they should be able to describe the expected benefits. Suppose we discover that the benefits of the Sales project will not be reached. ROI information / calculation (costs v. Then it is better that we do nothing. Do the minimum. Expected Benefits Expected Dis-Benefits Timescales Costs Investment Appraisal Major Risks Foundation Q&A Workbook . desire and viability. Cost for project plus expected on-going maintenance costs after the project. when benefits will be realized. as the Project Board will compare the fact of doing nothing with other options put forward that would require investment. The Benefits Review Plan must include information on the expected timeline for these benefits. The “Do the minimum” and “Do something” options would normally require a detailed Business Analysis showing costs. costs will stay high. • Change budget (20% of the cost): €6. Costs • Estimated costs are €24. with a benefit of €24. SharePoint & Excel for reports. as we can reduce one of our in-house salespersons. provides a mobile solution for sales persons.Business Case Theme 27 5. • To make it much easier for our in-house salespersons to follow up on orders and provide the correct information to the shipping department.000. • One of our biggest competitors is offering such a system and their salespeople are promoting this as a valuable service. • Reduce the time required to create sales reports by 25% Expected Dis-benefits • Most clients will now order and track their orders online without ever having to contact administrative personnel from the company. we don’t have the skills to gather the correct requirements. The service is well supported.com. • Option 3: Do something.800 will be available. o Low cost. Timescales • Project time: 5 months: Tolerance: ±3 weeks. view their order history. • To reduce the errors we currently have with incorrect orders. low maintenance and easy to customize to meet our requirements. • To help to reduce our costs.SAMPLE Management Plaza . Expected Benefits • Reduce sales administrative costs by 30%. • Estimated yearly maintenance and support is €4.9 Business Case example: A new CRM (Sales system) Executive Summary We recommend the development and implementation of a Web-Based Customer Relationship Management system to allow our clients to order online. • Prevent a 50% loss of existing clients to a competitor. Reasons: The reasons for this project are as follows: • To make it easier for clients to order and view order history. Option 3 is the best choice as it can help the organization to meet the required benefits. this may take a long time. • To provide better sales reporting for Sales Manager with minimum effort. ProCRM. o After some investigation and checking local references. it seems that ZOHO CRM is the best cloud option and integration with existing data is also possible. loose market share.000. o However. Business Options • Option 1: Do nothing: o Continue to loose sales. • First Benefit Reviews will be 3 and 6 months after go-live. and download report information to Excel. • Project Start: February 1st: Start with Requirements Analysis. easy to customize. • Forecast reduction of 66% in errors in the ordering process. ZOHO. This may have a negative effect as the administrative people in the company communicate less with the customers. may have to go through 2 or 3 iterations before we have a working application and maintenance costs will be high. etc. We forecast to recover the cost of the project in 18 months. o Existing developer can focus on this project and after training. • Project Finish: August 1st. o Use Cloud based CRM system like SalesForce.000 for the following 3 years. • Option 2: Do the minimum: o Create own CRM database with MS SQL. • Forecast increase in sales by 5% to 10%. Foundation Q&A Workbook . • Prepares the Business Case in the Initiation stage. • Assist in the development of the Business Case.g. • Specifies the benefits. • Verifying the Business Case (e.000.SAMPLE Management Plaza . • Estimate to increase sales and therefore profit by 5%: €12. • Be able to recognize the difference between an Output (main product). • Examines the effect of issues and risks on the Business Case. Outcome (think of features) and Benefit (measurable).Business Case Theme 28 Investment Appraisal (Simple) • Estimated costs for project: €34. • Estimated Return on Investment is less than 18 months. Senior User Project Manager Project Assurance 5. Use the Foundation Q&A Workbook to learn more about the types of exam questions to expect. • Keeps the Benefit Review Plan up to date. • Making sure the project is value for money. • Be aware of some of the typical contents of a Business Case (see the Business Case example).11 What you need to know for the Foundation Exam You should: • Be able to recognize the purpose of the Business Case Theme (the purpose of the knowledge in the Business Case theme). • Competitors may start using a similar system which will affect our planned benefits.10 Business Case: Who is responsible for what? Role Corp / Programme Management Project Board Executive Responsibilities • Provide project mandate which will contain reasons and perhaps most of the information required by the Business Case.. • Duty to other stakeholders to ensure that the project remains viable. • Explain what is meant by “PRINCE2 is based on a customer supplier environment”. some videos are public Foundation Q&A Workbook . • They wish to know if the expected benefits are realized. • Updates the Business Case during the project (maintenance). however this is not a requirement. • Know the purpose of the Business Case and the Benefits Review Plan. 5.000. • Ensuring the benefits will be realized. View the video for this PRINCE2 Theme. • Responsible for the Benefits Review Plan during the project. at each decision point) • Responsible for the business case and securing funding for the project. • Clients may not like to use the system and may insist on ordering via telephone. • Estimate to save one of the two Admin Sales roles: €26. • Helps to ensure the Business Case contains correct information.000 a year. Risks • CRM provider may not be able to deliver our exact requirements using their easy-to-use configuration tools and may need to use more development services. Therefore. in other words. Have regular reviews of the project to check that all is on track. Have defined responsibilities for directing. Introduce other project roles such as Change Authority. The Project Manager can use some of the following ideas to help document the project organization: • • • • Look at Roles & Responsibilities profiles in similar projects in the organization. Meet with the Executive to discuss their responsibilities. The duties and roles of the Project Manager Role. and the other party is the supplier. And finally. Some Organization definitions. it is important to get this on paper and agreed on. identify the “Who” of the project. what a project is. Confirm that each person has the necessary authority. Working with the Project Management Team and the stakeholders. Team Manager & Project Support. Prepare a workshop-type meeting with the Project Board and use the knowledge in this Theme to define the most appropriate questions to ask (e. 2. as they want to start using or selling the products that will be produced by the project and they are unaware of the importance of what happens in the Starting Up a Project and Initiating a Project processes. who might even need to be reminded that they are responsible for the project. 6. who will specify the results and most likely pay for the project. The Communication Strategy document. The management might put pressure on the Project Manager to start producing products ASAP. Have Business. User and Supplier representations. and delivering the project.g. Foundation Q&A Workbook . who will provide the resources. are seen as more important. As a Project Manager. The duties and roles of the Project Board. 4. knowledge and availability. do the work. and design the Project Board.3 The Organization knowledge provided by PRINCE2 The purpose of the knowledge in this Theme is to help define and establish the project's structure of accountability and responsibilities. How should communication be done during the project? and Who is responsible for defining the benefits?). you depend on other people to make decisions.SAMPLE Management Plaza . what a Programme is. managing. the task of defining the Project Organization and Roles and Responsibilities is rushed and other activities.2 What happens in the real world? In some cases. Let us take a look at what will be covered in this Organization Theme. The four levels in a project and three levels in a Project Management Team. Have an effective strategy to manage communication flows to and from stakeholders. What do you think makes a successful project team? PRINCE2 states that a successful project team should: 1.Organization 29 6 Organization 6. the reason for this document and typical contents. otherwise you might find yourself chasing ghosts during the project. One of the first tasks a Project Manager should do on a project is to get a good idea of who is who in the organization and their roles and responsibilities. such as starting to develop the products ASAP. to provide you with information. One party is the customer.. 6. the responsibilities of the different roles in the Organization Theme. not the Project Manager. Start with the Executive. The three stakeholder categories (the three primary stakeholders). and agree (in writing) on their roles and responsibilities. 3. and the skills required. and deliver the required products.1 Introduction to Organization Knowledge • • • • • • • • • • The purpose of the knowledge contained in this Organization Theme. and to carry out activities. A PRINCE2 project is based on a customer/supplier environment. The strategic objective here is to improve quality by x% using Six Sigma. User and Supplier. the Project Support role can be assigned to one or more persons. Business User Supplier The Project Fig 6. as well as those who may be negatively affected. the roles of Project Manager and Project Support can be assigned to the same person. The Programme may launch many different projects to achieve this. control. management. In small projects. and these also have to be represented in the Project Board.4 Organization Definitions Project Definition: What is a Project? A common definition of a Project is: “a designated set of tasks needed to accomplish a particular goal. Corporate Organization: What is a Corporate Organization? A Project can be part of a Programme. we say that the project exists in the company organization. For example. These roles can then be assigned to persons.” PRINCE2 defines a project as: “a temporary organization that is created for the purpose of delivering one or more business products according to an agreed Business Case”.5 Three Project Interests / 3 Stakeholder Categories A PRINCE2 project should always have three primary categories of stakeholders (three primary stakeholders). They keep asking the question: “Is this project value for money?” Foundation Q&A Workbook . a company might create a Programme to implement Six Sigma in each department and country in an organization. not persons. otherwise the project cannot (should not) start. others that may benefit (shareholders). Roles and Jobs Definitions PRINCE2 places project responsibilities into roles. These are Business. PRINCE2 uses the term Corporate Organization to refer to the organization leadership. one person can have more than one role.SAMPLE Management Plaza . Programme Definition: What is a Programme? A Programme is a temporary flexible organization structure created to coordinate. Stakeholder A stakeholder is any person or group that can be affected by the project or have an effect on the project. which could be per department or country.Organization 30 In summary. In this way. This includes the Project Board and the Project Team. There must be a Business Case. and all will be controlled by the Programme. For example. and communication.1 The three project interests / three primary stakeholders Business Interests The Executive role on the Project Board looks after the Business interests. The Organization Theme provides the knowledge to help define and establish the project’s structure of accountability and responsibilities 6. the potential users. each project needs to have direction. 6. in large projects. direct and oversee the implementation of a set of related projects and activities in order to deliver outcomes and benefits related to the organization's strategic objectives. If it is outside a Programme. as some companies may not have a Programme environment setup. The project is to develop a product for an outside company. Sales Department wants to have a new sales application. this could be either internal or external. (4) Delivery Level. In an organization. an internal IT department or external IT company. as they will use the products.g. Suggestion: In this case. Supplier Interests The Supplier provides the resources and the skills to create the products. e. maintain or support the projects outputs. which can incorporate the user and business interests on some projects (here the users are internal to the organization that is paying for the project). The term customer can refer to just the user interests and the supplier will incorporate the business and supplier interests (here the users are usually external to the organization that is paying for the project) e.SAMPLE Management Plaza . the Senior User could be someone from the Sales Department or an Account Manager. as they wish to make sure the products will meet the customers’ expectations and sell in future. Users can also operate.g.Organization 31 User Interests Users benefit from the delivered products. For example. The Supplier interests are represented on the Project Board by the Senior Supplier role. (2) Direction Level. A magazine company creates a new online news service for clients. Users need to be represented on the Project Board to make sure that the correct products are produced and to the agreed quality level. The Senior User role will represent the User interests on the Project Board. The Project Management structure has 4 levels and the Project Management Team has 3 levels.6 The four levels of a project organization It is important that you understand the difference between the Project Management structure (project organization) and Project Management Team. Exercise: Look at the following situation: Who do you think should be the Senior User and therefore represent the users on the Project Board? The company is a technology research company. (3) Managing Level. The 4 levels of a Project Management structure/project organization are: • • (1) Corporate or Programme Management Level.2 Four levels in a project organization Foundation Q&A Workbook . such as a new stereo headphone for a mobile phone manufacturer. 6. Level 1 Level 2 Level 3 Level 4 Corporate or programme management Direction Level Project Board (they make decisions) Management Level Project Manager (day to day runs the project) Delivery Level Team Manager (creates the products) Fig 6. Customer/Supplier The term customer is a collective term. It could also be someone from the Customer. They decide at the start of the project how the Project Board will keep them updated during the project and will also define the project tolerances that the Project Board will work within. Project Plan. 4. Stage Plans.3 Three levels in a project team Level: Corporate or Programme Management Level This level is responsible for commissioning the project and identifying the Executive.SAMPLE Management Plaza . The Project Manager’s primary responsibility is to ensure that the project produces the required products in accordance with the goals. Level: Directing (Project Board) The Project Board is responsible for directing the project and is accountable for the success of the project. quality.g. Level: Managing (Project Manager) The Project Manager is responsible for the day-to-day management of the project. 1 2 3 Direction Level Project Board (they make decisions) Management Level Project Manager (day to day runs the project) Delivery Level Team Manager (creates the products) Fig 6.. risk and benefits. The process Directing a Project describes the work of the Project Board. cost. They do the following: 1. Approve the completion of each stage and authorize each new stage. Communicate with other Stakeholders. which are time. Authorize any deviation if tolerances are forecasted to or have exceeded.Organization 32 The 3 levels in the Project Management Team are: • (1) Direction Level. scope. 3. which include Corporate/Programme Management. 2. (2) Managing Level and (3) Delivery Level. The Corporate or Programme Management level sits outside the Project Management Team. Foundation Q&A Workbook . Approve all resources and major plans. e. . Corporate or Programme Management Direction Senior User Executive Senior Supplier Management Project Manager Delivery Team Team Team Manager Manager Manager Optional Role Fig: 6. the Senior User and the Senior Supplier.4: Project Management Team Structure – simple overview Level: Delivery (Team Manager) The Team Members are responsible for delivering the project’s products at a certain quality. Only one person can be the Executive while both the Senior User’s and Senior Supplier’s roles may be assigned to one or more persons. The Executive owns the Business Case and has the final word on decisions that are taken. Corp. 2. To be accountable for the success or failure of the project.Organization 33 Corp.7 Project Board The Project Board consists of the Executive. The Project Board has the following duties: 1. Corporate or Programme Management Direction Senior User Executive Senior Supplier Change Authority Management Project Manager Project Support Delivery Team Team Team Manager Manager Manager Optional Role Fig: 6. Foundation Q&A Workbook .5 Project Team Structure 6. and within a specific timescale and cost. A Team Manager can have the authority and responsibility of creating plans and managing a team to create and deliver the required products.SAMPLE Management Plaza . so the Project Board is not a democracy. To provide unified direction to the project and Project Manager. The process Managing Product Delivery is where the teams produce the specialists' products.. To ensure effective communication within the project team and with external stakeholders. equipment and knowledge are in place. and against requirements. including quality criteria. developing. The Senior User: The Senior User has the following responsibilities: • • • • To specify the needs (requirements) of the Users that will use the project products. and that the products will meet the expected criteria. 4. especially in terms of quality and ease of use. 5. They provide supplier resources to the project and ensure that the right people. Purchasing Manager) or they can come from a supplier.8 The Project Board Roles The Executive: The Executive is appointed by Corporate or Programme Management. To supply the benefits information for the Benefits Review Plan. • The Executive is responsible for Business Assurance. So they keep quiet and hope the issue will go away.g.9 Project Assurance: User. including the rest of the Project Board and the Project Manager. tools. 6. so it is important that the Project Board get a second opinion and this 2nd opinion is called Assurance or Project Assurance.. In real life. facilitating and implementing the project’s products. The Executive is responsible for the project and is supported by the Senior User and Senior Supplier Roles. To make sure the solution will meet the needs of the Users. To provide the resources and authorize the funds for the project. The Senior Suppler can come from the customer organization (e. the Project Manager may be telling the Project Board that everything is fine and that the project is going as planned. The Executive is responsible for developing the Business Case at the start of the project and keeps asking “is the project still value for money?” during the project. To provide visible and sustained support for the Project Manager. so they will most likely deliver a product that cannot be used as expected. 6. far too many projects have Project Boards that don’t understand their role and don’t provide the Project Manager with proper support. why do we need Project Assurance? Consider the following situations: • We have a new Project Manager in the company who is not fully aware of the corporate quality standards. as they don’t want to be the bearer of bad news. Usually the Executive will be responsible for designing and appointing the Project Management Team. The Senior Supplier: The Senior Supplier Role represents the interests of those designing. The Executive also gives a single point of accountability for the project. Business & Supplier First. o They wish to ensure that the business aspects of the project are correct.Organization 34 3. o They keep asking: Is the project value for money? The Senior User is responsible for User Assurance. To liaise between the Project Management Team and the Users. The Senior Supplier role can be one or more persons. For each of these situations. o They wish to ensure that the project will deliver the correct products and these products will meet the expected requirements. • A Project Manager might have discovered a big issue but is afraid to report it.SAMPLE Management Plaza . o They keep asking: Will the product work as expected? • Foundation Q&A Workbook . Change Authority may delegate to a number of levels.. that is. The Change Authority may be given a change budget and can approve changes within that budget. ? Why doesn’t the Project Board do all Change Authority during a project? If few changes are expected. within tolerance.10 The Change Authority Role Change Authority is a person or group to which the Project Board may delegate responsibility for the consideration of requests for change or off-specifications. then the Project Board can do this. the different roles can have Change Authority responsibilities: Severity . and of course.SAMPLE Management Plaza . 6. o They keep asking: Can it be done within time. As you can see. 6.Organization 35 Corp. and other variables? The Project Board can decide to do this work themselves or they can assign these assurance tasks. a Level 2 issue (change request): The Project Manager could decide if only one product is affected and the change is less than €400.11 The Project Manager Role The Project Manager manages a project on a day-to-day basis and is the only one with this day-today focus on the project. this role can never be shared. The Project Manager runs the Foundation Q&A Workbook . As a result.6 Project Assurance • The Senior Supplier is responsible for Supplier Assurance o They want to ensure that the products will be delivered as expected and that the right materials and people are in place to do the work.User Assurance . This is more efficient for the change process and less time is demanded from the Project Board. then it is better to use a separate Change Authority group. to make them aware of standards which they should use in the project. Corporate or Programme Management Direction Senior User Project Assurance Executive Senior Supplier Management . Project Assurance persons should support the Project Manager. as they are busy people. cost. depending on the severity of the change.Change Request Level 5 Level 4 Level 3 Level 2 Level 1 Who decides? Corp / Programme Management Project Board Change Authority Project Manager Project Support / Help Desk For example. If many changes are expected.Business Assurance . The Project Manager should also feel comfortable to ask for guidance from Project Assurance.Supplier Assurance Project Manager Delivery Team Team Team Manager Manager Manager Optional Role Fig 6. document user needs. research on a specific product. and to provide regular status reports to the Project Manager. 6. If there is a need for specialized skills or knowledge of the products to be produced (e. What kind of skills do you think a Project Manager should have? They need to have good communication. city council. The Team Manager has the responsibility to produce the products that were assigned in Work Packages (a group of Product Descriptions. You will have local housing groups. Just think about all the stakeholders if you were a new incinerator in the outskirts of a city. They must be proactive (anticipate things) and not sit around and waiting for things to happen. Bigger Organizations might have a Project Office (also referred to as a Project Support Office) that provides these services for a number of projects. Which other roles can the Project Manager perform? o The Project Manager may take in the role of Project Support. environment agency. 6. Foundation Q&A Workbook . leadership and team-building qualities.13 Stakeholder Engagement What is Stakeholder Engagement? Stakeholder Engagement is the process of identifying and communicating effectively with those people or groups who have an interest in the project’s outcome. Team Manager (if they have specialist knowledge) and Change Authority (if permitted by the Project Board). In smaller projects where there are no Team Managers.SAMPLE Management Plaza . process change requests. The Project Manager usually (preferred by PRINCE2) comes from the customer. future workers. If you are using an external company and it is easier and more efficient to coordinate with a Team Manager rather than all the team members directly.) by the Project Manager. where some team members are situated at another site. as well as planning. This is one of four strategy documents created at the start of the project. They are responsible for all of the PRINCE2 processes except for the “Directing a Project” process. the support tasks fall on the Project Manager.12 Team Manager & Project Support Team Manager Role The role of the Team Manager is optional and is usually used: • • • • If the project is quite large and there are many team members. Can also supply planning or risk management services.). The typical responsibility for Project Support is Configuration Management and.Organization 36 project on behalf of the Project Board within specified constraints and liaises throughout the project with the Project Board and Project Assurance.. cost management. etc.. so you work with a team manager at the remote sites. and some stakeholders can be for or against the project. building contractors. the Project Manager will manage the Team Members directly. so it needs to be assigned to a person or persons. therefore. problem-solving. reporting. The responsibility of Project Support is with the Project Manager. and where there is no Project Support. Project Support The Project Support Role provides the following services to the project: • • • Administrative services (to support the Project Manager).g. For geographic reasons. monitor the project. The Project Manager is responsible for the Project Support and Team Managers. advice or guidance on the use of project management tools or Configuration Management. facilitating meetings and conducting workshops. including teamwork. to run a Java development team. follows the guidelines in the Configuration Management Strategy document. etc. etc. This role is not optional. an ability to understand the quality process. The Communication Management Strategy document contains the following information: 1. This is something that the Project Manager and Executive should keep in mind during the project. so it does not have to be too much work. 4. Stakeholder Analysis: Type of Stakeholder and the relationship desired with Stakeholder. This should be reviewed during the Managing a Stage Boundary process to ensure that key stakeholders are receiving the required communication. Usually a Communication Management Strategy template document will be provided by the Corporate or Programme environment. An introduction to remind the reader of the purpose of the document for this project. meetings.SAMPLE Management Plaza . The Communication Management Strategy defines the rules of engagement for how communications should be done during the project. such as electronic mail.. The Project Manager will refer to this document during the project. 8. This can also include the Programme Management if the project is part of a program.Organization 37 PRINCE2 states that communication with stakeholders is the key to the project’s success. This can be customized by the Project Manager for the project. Tools & techniques. Information Needed: Information required from project. such as e-mail.14 The Communication Management Strategy What is the Communication Management Strategy document? It is a document that defines in detail how communication will be done during the project (e. The Project Manager is responsible for creating the Communication Management Strategy during the Initiation Stage of the project. 5. 6. Communication with stakeholders during the project will be defined in the Communication Management Strategy document. intranet. to whom is it being communicated. and how often). including the frequency of the communication and the format of it. Communication Procedure: A description of the communications methods that will be used. and presentations). newsletter. 2.g.15 Responsibilities for Organization Theme Role Corp / Programme Management Executive Responsibilities • Appoint the Executive and perhaps the Project Manager in SU process • Can provide Communication Management Strategy template • Can appoint Project Manager if not done by Corp / Programme Mgmt • Chooses Project Board and confirms Project Management Team • Approves Communication Management Strategy document • Provides user resources • Provides supplier resources • Prepares Communication Management Strategy document in Initiating a Project process • Prepares Role Descriptions for project management team in SU process • Assists in the development of the Business Case • Helps to ensure the Business Case contains correct information • Manages team members • Advises on the selection of the project management team • Ensures the Communication Management Strategy is appropriate Senior User Senior Supplier Project Manager Team Manager Project Assurance Foundation Q&A Workbook . 6. Roles & Responsibilities: Who will handle the communication? 7. What does the Communication Management Strategy document contain? It contains a description of the means (how) and the frequency of communication to internal and external parties. Timing: States when communication activities will be done. 3. what is being communicated. 6. Reporting: Types of reports and the information they should contain. • Understand the purpose of the Organization theme. • Know the four levels of the project management structure to apply to the process model The four levels are: o (1) Corp / Programme Management.SAMPLE Management Plaza . (2) Direction.16 What you need to know for the Foundation Exam You should: • Be able to recall the defined roles within the Organization theme. Use the Foundation Q&A Workbook to learn more about the types of exam questions to expect. • Know in which process the Organization theme is applied. (3) Management. • Know the purpose of the Communication Management Strategy. • Know the difference between the project stakeholders and project decision-makers. (4) Delivery. • Be aware of how this theme supports the principle defined Roles & Responsibilities. • Know the three project interests.Organization 38 6. some videos are public Foundation Q&A Workbook . View the video for this PRINCE2 Theme. so products are signed off (baselined) before development begins. How Acceptance Criteria is used (checklist). Adding Quality information to the Product Descriptions. The Project Plan and the Stage Plan will also include the quality control activities. and that the end-product can be used as intended. Most often. For example. other projects cannot make use of this Quality Management System. the responsibilities of the different roles in the Quality Theme. this is something that some Project Managers don’t understand. Quality Control and Quality Assurance. it is very difficult to end up with quality (a usable product). So it is up to us as Project Managers to ask better questions. The PRINCE2 Approach to Quality. Quality must be addressed at the very start of the project The good news is that the Quality Theme in PRINCE2 provides a simple solution for this. but then if you ask them “What about quality?” or “What are your Quality Requirements?” you would leave them speechless. The Quality Register will help your understanding of this theme. This will enable you to understand and explain all of these terms. the Quality Theme defines the PRINCE2 approach to ensure that products created during the project meet the expectations. Product Descriptions must include the Quality criteria information so that all project stakeholders have a common understanding of the products that will be created. If the quality of the products is not as expected. Foundation Q&A Workbook . Quality can be difficult to define (if you don’t know how) and many people do not know how to explain it in a simple way. So. The Quality Management Strategy document. which defines how Quality will be carried out in the project. Another point.2 What happens in the real world? Quality is something that project methods talk a lot about and it sounds great. two parts: Quality Planning and Quality Control. 7. which is a Quality Inspection technique and includes the roles of Chair.1 Quality Introduction to Quality Knowledge • • • • • • • • • • • The purpose of the knowledge in the Quality Theme Definitions for terms such as Quality. Customers Quality Expectations and how to extract this information. Let us take a look at what will be covered in this Quality Theme. You will normally receive a list of requirements. which means that a project’s products should be clearly defined at the start of the project or in a Stage Boundary process. Hence. let’s suppose the Sales Manager was asking for a new Sales system and you asked him to define the requirements. Presenter and Administrator.SAMPLE Management Plaza . which may not be a normal state for a sales manager. but in reality. Quality Planning. The Quality Register is a diary of quality events that is kept up to date during the project. this can be for specific departments in the company and may be only suited to specific types of products. 7. Some companies have a Quality Management System in place that describes how Quality should be done in that organization. You might remember that product focus is one of the principles of PRINCE2. then the expected benefits that should be realized will not be achieved. Quality Management System.Quality 39 7 7.3 The Quality Knowledge provided by PRINCE2 The purpose of the knowledge in the Quality Theme is to define and implement a system that will create and verify that products are fit for use. Introduction to Quality Control. measured and controlled during the project. And finally. Therefore. if you don’t consider Quality at the start of your project. Reviewer. The PRINCE2 Quality Review technique. Scope. It describes how Quality can be defined. You will learn the type of information contained in this document. This would also include looking for ways to constantly improve Quality and remove less-satisfactory performance. Quality Assurance This is like Project Assurance but the focus is on Quality in the organization and not just quality related to the project. Quality Assurance • Provides a way to get an independent review of the Quality process. the Project Manager must have a strategy in place.e. It is defined using the product breakdown structure and the Product Descriptions. Quality Quality is generally defined as the total amount of features or characteristics of a product.Quality 40 For example. the Quality criteria gives a lot more detail about the product. Dishwasher-proof. Mechanical parts must open 35.000 cans. It is the same as saying that all features of the product have to work as expected for a given amount of time. and designating quality responsibilities. Easy to use. and quality improvement.SAMPLE Management Plaza . The terminology used by PRINCE2 comes mainly from ISO 9000 standard. Quality Management Systems (QMS) A Quality Management System is the complete set of quality standards. Quality Control Quality Control focuses on the techniques and activities to inspect and test products. This might seem a little strange. so a good first question to ask is “Do you have a QMS that can be used on this project?” Quality Planning For the project to meet the customer’s quality expectations and the acceptance criteria. The majority of bigger companies have a Quality Management System in place. some of the quality criteria might be: • • • • Stainless steel and plastic handle should keep their color for 20 years. the Quality Theme provides a method to help specify the Quality. what a user might expect from the product. to explain how to get approved. It can be clearly seen that Scope (of the project’s main product) and Quality are tied together. such that it meets expectations and satisfies the stated needs. 7. Think of the total amount of features or characteristics of the can opener. Scope Scope is related to the scope of the plan. quality assurance. and to facilitate the management of Quality during the project. and how long they would expect it to last. Just read these definitions for now. Let me use the example of the can opener project. the necessary tasks for quality control and product acceptance). if you are creating a new can opener. planning quality methods (i. but think about it for a moment. As you can see. Some of these activities are: defining quality. procedures and responsibilities for a site or organization. Foundation Q&A Workbook . which is the sum of its products. they will be explained further in this chapter. So. This involves identifying the necessary products and the quality criteria for each. It is to make sure that the planned Quality activities are done.4 Quality Definitions Quality has its own terms and these terms can mean different things to different people. Quality Management Quality Management is defined as the activities to direct and control an organization with regard to quality. to carry out Quality control. quality control. type of lighting fixtures…. own staff measurements. which includes Quality criteria. architects) and have an idea of the quality of the finished apartment block. Gather the customers Quality Expectations: This is very general. if these topics are not discussed up front.g. You can also say that the role Quality Assurance is outside the project management team while Project Assurance is within the project management team. Establish how Quality can be controlled during the project: o Set baselines and tolerances for each product (e. Quality Control • Quality Control implements and tracks the Quality methods used during the project 7. how the products will be assessed. 2. 7. Agree on the overall Quality Expectations with the Project Board: o Document the Quality criteria (e.5% tolerance.. and Ensures that Quality processes are in place.5 Introduction to the PRINCE2 Approach to Quality: The PRINCE2 approach to Quality has two parts: Quality Planning and Quality Control Quality Planning • Quality starts with identifying all the products that the project wants to control. o Document how the Quality Criteria will be checked (e. develop and accept the products. quality of materials used in the building. What is the Acceptance Criteria that the Customer will use to accept products during or at the end of the project? 7. and the responsibilities of the people involved. The following questions should be asked in Quality Planning: 1. type of insulation. high-level • Key Requirements for the main product (Project Product) to be produced Foundation Q&A Workbook . as well as how Quality will be controlled during the project.g.6 Part 1: Quality Planning Introduction Imagine a project that deals with building an apartment block.SAMPLE Management Plaza .1 Quality Planning Steps – Quality Audit Trail The first Quality Planning steps as shown in the diagram below are: 1. you would need to be in agreement with the people who represent the customer. using independent building inspectors. it can make for a very exciting project with everybody having their own idea on the finished product.10% tolerance.. kitchen fittings should last 18 years +. • The next step is to write a Product Description for each product. etc.). Project Assurance is the responsibility of the Project Board. etc). 3. The purpose of Quality Planning is to: 1.g. Communicate these agreements with all stakeholders: o All stakeholders must have a common understanding of what the project will produce. the supplier and other stakeholders (e.6.g.. The customer is a mid-size property developer.) As you can imagine. As the Project Manager. while the Corporate or Programme Management are responsible for Quality Assurance.Quality 41 • • Checks to see that it complies with company Quality standards.. What are the customer’s Quality Expectations? 2. wall insulation should be grade 5 with +. Remember that PRINCE2 is focused on the products from the start of the project – or as soon as they can be described and agreed. Quality methods to be used to design. How can we prove that we meet each specification? 3. and before development starts. Lastly.g. Product Name. and 3) Acceptance responsibilities – defining who will be responsible for accepting. 4. You can get most of the data from the Plans documents (Product ID. (i. outside noise-level has to be lower than a certain value +. 4 Management Project Manager Project Brief PPD Quality requirements from Customer Quality Mgmt Strategy QMS Project Plan Product Descriptions 6 Quality Register 1Customer’s quality expectations 5 Quality information in Quality criteria and tolerances Quality methods Quality responsibilities Product Descriptions 2Acceptance criteria Delivery Team Manager • • • • • List all products names + IDs List Quality method Quality Reviewer & Approver Expected delivery dates Target & Actual Q Review dates 3 Project Product Description Quality Planning – 6 Steps Based on OGC PRINCE2® material. Target Approve Date. Quality method. the rules of engagement for Quality during the project. how to carry out quality checks after product is created). Approver. such as: • • • Quality criteria for each product and quality tolerances.). 5. Reproduced under license from OGC by Frank Turley www. Doors. etc. Product-Based Planning (which will be discussed later) will provide a list of all products.Quality 42 • • Identify standards that must be met and the Quality Management System to use. More about this later. in other words. Acceptance Criteria: Add the customer’s Quality Expectations and Acceptance Criteria to the Project Product Description (expectations that are measurable and prioritized) • Total building insulation must be grade 4 (Yes/No) • Yearly maintenance per apartment must be under €1. At first.MgmtPlaza. This will be done for all the products that make up the main Project Product: • E.e. noise..). 6. Write Product Descriptions for each of the main products in the main product and include the Quality information. it will be empty. set up the Quality Register. etc. Quality responsibilities for creating.x% 2) Acceptance method: stating how the Project Product will be accepted. Producer. 2. Think of a Laptop PC description on a website (just 2 or 3 pages). E..g. Create the Quality Management Strategy document: This document defines the agreed strategy for Quality in this project or.200 (Yes/No) 3. Measurements that can be used to assess Quality (speed. Write the Project Product Description: This also includes adding the following Qualityrelated data to the Project Product Description: 1) The Project level tolerances – tolerance for the main product: e. size. walls.g. windows and fixtures.1 Quality Planning Foundation Q&A Workbook . Target Review Date.SAMPLE Management Plaza . quality checking and approving the product. and then you add the Quality information to each Product Description.com Pre-Project – SU Initiation – 1st Stage Fig 7. Attribute to be accepted (taken from the Customer’s Quality Expectations). Low or Not Required but MoSCoW is better Example of the Customer Quality Expectations for an apartment block project MoSCoW Measure Customer Quality Expectations Elevator – Safety : Meet EC safety standard M EC 34575 Elevator – Usable for blind people M Check Outside noise in all apartments – Standard : XC22 M DB meter All light fittings with a guarantee of 25 years S Warranty Wall insulation should be R-11 S Inspection All window insulation : R15 S Inspection Tolerance None None None -+10% R11 to R12 R15 to R17 7.. such as “must have. The Acceptance Criteria should also be prioritized using the MoSCoW technique. It stands for 1) Must have. Acceptance Criteria Users able to use 90% of functionality without help Support costs lower than €5. it will become part of the Project Brief.. You could also use: High. See the following table. Prioritize technique: MoSCoW: This will be discussed later. but this must be done and must be done as early as possible in the project so that they can be listed in detail in the Project Product Description. 2.2 The Customer’s Quality Expectations It is normally not an easy task to extract the Quality Expectations of a product from a client.6. and the answers you get can be very vague. I have even seen projects where the funds were scarce at the start of the project. Accepted status: Yes / No. 3. recalls etc. Once the Acceptance Criteria list is complete. but once the product was out and customers were having issues. • What will be the cost to the company if the product cannot be used as expected at the end of the project (e. and is therefore linked to the Project Product Description. etc. starting with what the client finds most important. as long as each change goes via the Change Control process.the Starting Up a Project process.)? Tip: Notice their reaction when you ask.000 per year Appearance to match the approved design layout Maintenance of all pages can be done by existing support person Auto-password recovery. this is a good example: 1.SAMPLE Management Plaza .g. Let us look at some good questions to ask to get the customer focused on Quality: • What percentage of features should work when product is launched.6. or they may have budgetary issues so they think they can save on Quality. fixes. Some companies may be in a rush to get the product out.” “should have” and so on.)? Prioritizing Quality Expectations: Use MoSCoW • They should be prioritized. This is fine. 3) Could have. This approach is always a lot more expensive and bad for users. fines.Quality 43 7.3 List Acceptance Criteria The Acceptance Criteria is a prioritized list of attributes that the Project Product should have when complete. Prioritize status. 2) Should have. Here is an Acceptance Criteria example for a website project. keeping old product in service. then lots of funds were available to start fixing. This is agreed between the Customer and Supplier in the very first process -.g. and what is the budget for critical issues (e. Medium. without need for any human intervention Secure data area for registered partners MoSCoW M M M S M M Yes / No Foundation Q&A Workbook . In some projects the Project Product Description may be updated during the project in the Stage Boundary process. 4) Won’t have for now. • Standard USB connection for data transfer and charging. * NR means this is Not Required for the Foundation Exam Item: MP3-01 Title: Kick-Ass Device (KAD) Purpose The purpose is to create a high-end. and with a 2year warranty. so I will choose an MP3 player: A UK technology company wants to bring out a new small.5 touchscreen / scratch-proof.5“ touchscreen. The Project Product Description is a description of the main product that will be produced by the project.5 Project Product Description Example (NR*) The best way to explain this is with an example of a product that most people are familiar.4 The Project Product Description (Main Product) Don’t confuse the Project Product Description with the normal Product Descriptions. • User Interface: Experience in designing UI’s for media players (outsource). 2. simple. See the websites of Dell.Quality 44 7. Foundation Q&A Workbook .6. • Testing: Experience in testing electron devices (in-house). The Product Descriptions are created in the Initiation stage as part of the planning activity. Bluetooth headphones. HP or Asus for an example. Development Skills Required • Design: Experience in designing electronic devices (in-house). There will be an overview description. features. stylish. Composition There are two main products. • Headphone requirements. • Etc. It will include all normal features that are expected from an MP3. it does not have to be 100 pages but more like 2 to 4 pages. • Lithium-Ion battery. Bluetooth specs). specifications and guarantee information. • MP3 requirements (dimensions.6. Bluetooth Stereo Headphone: • Stereo Bluetooth headphones with microphone. • 2. expandable. killer MP3 player that they hope will compete very well with the current best-known brand. speed.1. light. • Processes ARM11 620 MHz. Derivation / Source From List of all items and products that will be used to create the final product but will not be part of the final product. plus a number of unique features like Android-based. battery performance. The Project Product Description is used by the Closing a Project process to help verify that the project has delivered what was expected and that the acceptance criteria have been met. The RRP should be €120. • Technical Design: Experience in building portable electron devices (outsource). Notice the amount of Quality Information that is included in this description.SAMPLE Management Plaza . As you can see. • 8GB to 16GB with SD slot to support further expansion. which is about 25% more than current best-selling model on the market with a manufacturing cost of €60. the MP3 player and the Bluetooth headphones MP3 Player Composition: • Android based MP3 Bluetooth player with support for Android Applications. The Project Product Description is created in the Starting Up a Project process and becomes part of the Project Brief. A good example of a Project Product Description that I like to use is the information that is provided for a laptop computer on a computer website. thin and easy-to-use MP3 player for young people. 7. • Bluetooth version: 2. • Language Support: 23 languages. This document also confirms how the Quality systems and standards from the customer and supplier are going to be Foundation Q&A Workbook . • Senior User will be responsible for all other Acceptance Criteria. Apple and Linux PCs Expandable SD Card Slot – support 8-. 16-. 7.12 hours play Headphones: with Microphone (use with phone) Headphones: Bluetooth range .5” touchscreen display Battery Quick-Charge 80% in 30 minutes Language Support : 23 languages Dimensions 60mm x 60mm x 4 mm (H*W*D) Weight : 28. Acceptance Responsibilities • Project Manager will collect all inspection. 16. inspected and approved.Quality 45 Customer’s Quality Expectations Customer Quality Expectations Average Use – All Parts .6 The Quality Management Strategy Document A Quality Management Strategy is a document and a plan of action that defines the Quality requirements and the Quality Control method for all the products in the project. and this proof will have to be given for each Acceptance Criterion. survey and other documents and hand them to the appropriate person(s).1 stereo Headphones: Battery life .External Company Easy to use for first-time users (Survey 1.SAMPLE Management Plaza . 32-GB cards 2.3 grams Etc.13 meters Etc.5 Years (Accelerate & Aging Equipment will be use) .000 persons) Support Android-based apps (no GSM or GPS support) Support integration with PC.5% +-10% Acceptance Method • All Acceptance criteria have to be measured. Jones during the project by the Project Manager. • All documents will be made available to Product Development Manager.5“ Screen Battery Life – Normal user .6. • The Executive will confirm Project Costs and Manufacturing unit costs. MoSCoW MoSCoW M M M M M M M S M M M M S M M Measure Inspection Survey Inspection Inspection Inspection Inspection Machine Machine Inspection Inspection Inspection EC4563 Inspection Inspection Inspection Yes / No Project Tolerances M M M M M M M M S S S S +-5% +15% +20% None None None None +-10% +-10% +-30% +-7.and 32-GB cards 2.36 hours Battery Quick-Charge . Acceptance Criteria + Priority + Project Tolerances Acceptance Criteria Unit manufacturing costs – < €50 Project Cost to develop and test product : < €500k 5 Years – Average Test – Certificate from Test Company Easy to use – with 90% of users Support Android Applications (no GSM or GPS support) Support for Windows. Linux and Apple PCs Expandable SD Slot to support 8-.80% in 30 minutes USB for PC connection and for charging Scratch-proof Screen – Class 4 Bluetooth distance -13 meters Bluetooth v2. S. and what it will do.e. The typical content of a Product Description is similar to the Project Product Description. therefore Product Descriptions may be created or updated in the Stage Boundary process and the Product Descriptions will be agreed and baselined before development starts. In other words. 250-Mb Hard disk. Name by which the product will be known: e.g. testing and acceptance. e.. reviews. the Quality Register will be empty and the Project Manager will get most data from the plans and Product Descriptions. Who is responsible for Quality Assurance.g. size. Use machine to test color fading. and Approver. (See Target and Actual columns for Review and Approval. Many Project Managers will use a spreadsheet for a Quality Register. as you can see.g. durability. At first. 047. What standards will be used? 3.g. e. e.. such as workshops. Foundation Q&A Workbook . This document is created at the Initiation Stage with the other strategy documents and becomes part of the Project Initiation Documentation. What tools and techniques will be used? 4. The contents are as follows (again. Color cannot fade in 10 years +-10%.g.7 Product Descriptions The Product Descriptions should be created for all the products as part of the planning activities and before the Project Plan can be completed.. notice how much Quality information) Headings Identifier: Title: Purpose Composition Quality Criteria Quality Tolerance Quality Method Quality Skills required Quality Responsibilities Product Description Content Unique product name: e. Here is an example of a Quality Register and. Quality Reviewer. How will the timing of Quality activities be executed? *NR means. lifetime. What records will be required and where will they be stored? 8. use inspection. How will Quality Assurance be carried out? 5. 7. i. What knowledge is required to be able to test. Color. e.g. Confirming Acceptance of the Project Product? 7. Responsible for Producing. Which Quality Management System to use. This is not always possible in each project.6. from customer. List the parts that the product will be made up of. Approving the Quality Management Strategy.g. noise. supplier or a mixture? 2. e.Quality 46 applied in the project. Who is responsible for documenting the customer’s Quality Expectations and Acceptance Criteria? 6. State who needs the product. NR* The Quality Management Strategy answers the following questions: 1. the Quality Management Strategy document defines how Quality will be done in the project. you have columns for Producer.). Reviewing and Approving. this is Not Required for the Foundation Exam 7. why they need it.8 Quality Register (NR) The Quality Register is a diary of the Quality events that take place during the project.6.SAMPLE Management Plaza . 7 Part 2: Quality Control Introduction What is Quality Control? Quality Control is carrying out the activities to control Quality as defined in the Quality Management Strategy.Quality 47 Target Approval Date Actual Approval Date Actual Review Date Target Review Date Product ID Reviewers Approver Producer Product Name 11 12 12 13 . Carrying out the Quality methods: e. Approver: 6. This allows the Project Manager to control Quality. 2. When the product should be reviewed (ex: “June 20. Product ID: 2. There are three parts to Quality Control.. RT RT RT BD . WP TL TL OH .. Actual Approve date: 10. Quality Method JV TM MP AM . Maintaining Quality and Approval records.2 The Quality Register I will explain the columns and give an example using the Elevator product in the apartment project. Target Approve date: 9. 11/10 30/10 30/10 18/11 …. Result: Just a product tracking number in the project (ex: 124).SAMPLE Management Plaza Records links links links links …. Inspection for the Elevator). Who Quality-approves the product (ex: “John from Safety Company”). Foundation Q&A Workbook . Actual date that Review happened. Actual date when Project Manager received Approval. it provides a full audit trail for Quality. 3. Pass Fail Pass Pass … Fig 7.. When Project Manager will get Approval (ex: 1 week later). Quality Method: 4.g. Describes how testing will be done. Think about the columns in the Quality Register. Producer: 5. The Quality Register makes it easier for the Project Manager to follow up on Quality during the project. such as Otis (an Elevator Co. Target Review date: 7. 10/10 27/10 27/10 14/11 …. Product Name: 3.. Full Quality Audit Trail (Quality History) • As the Quality Register contains all the Quality activities and is continually updated during the project. 2/10 21/10 21/10 5/11 … 10/10 21/10 21/10 7/11 …. Wall Insulation Heating Furnace Heating Furnace Kitchen Fittings … Inspection Inspection Performanc e test Inspection …. A common name to refer to the product (ex: “Elevator”).). Gaining acceptance and pass Acceptance Record to the customer... Actual Review date: 8. 7. This can be Pass or Fail. 1. Result ..g. Quality Review Techniques. as they can check whether the Actual Target Review date and Actual Approve date columns are filled in or not. (e. and I will explain each of them: 1. it’s the same information.”). Who produces or installs the product. conditionally complete (few actions are yet required) or incomplete (another Quality Review meeting is required). This is usually a signature from the person listed as approver in the Quality Register. any required actions are agreed and noted. • The Presenter would provide a brief product introduction.8 The PRINCE2 Quality Review Technique The PRINCE2 Quality Review technique is a Quality Inspection technique. Foundation Q&A Workbook . How is the Quality Review meeting run? NR Here is an overview of how a Quality Review meeting might be run • Chair would coordinate the introductions. submits questions.SAMPLE Management Plaza . * NR means this is Not Required for the Foundation Exam. The purpose is to inspect products to see that they meet the customer’s Quality standards and meet the Quality criteria listed in the Product Description. • The Presenter can provide a product walk-through.. Again.com Management Project Manager Update product status after quality check CS: CIR Project Manager assigns work to team & includes quality criteria Work Packages Give to client Acceptance Records Results in Quality Register Quality Register Delivery Team Manager Quality Review Technique Quality Check Product (s) Products are created by the teams Initiation – 1st Stage Delivery Stages : Controlling a Stage & Stage Boundary Closing a Project Fig 7. • Lastly. Reviewer: Reviews products. • Chair will invite each reviewer to ask questions about the product and if any further actions are needed. Administrator: This person provides admin support for the chairperson (e.). Presenter.3 Quality Control 7. Presenter: Presents the products and represents the producers of the product. the Chair will decide if the product is complete. the Reviewer will read back the actions and responsibilities. Reviewer and Administrator I will explain each so that they are easy to remember: Chair: Responsible for chairing the review meeting. confirms corrections or improvements. The next step after the product is completed is to request approval for the product. It has defined roles and a specific structure to follow.Quality 48 Direction Project Board by Frank Turley MgmtPlaza. taking minutes and recording results and next actions). The Quality Review technique has four specific roles. (Note: The Reviewer should also have seen the product before the meeting. so the Presenter does not have go into detail.g. The roles are: • • • • • Chairperson. • Towards the end of the meeting. These are agreed and noted by the administrator. • Prepare the Product Descriptions with other persons. Reviewer. • Maintain Quality Register and the Quality Records.3). Create a new line for the next quality check. Note this in the Quality Register. • Conditionally complete: Tidy up some minor issues. • To involve key stakeholders and help to promote quality and the project. Project Support • Provide administrator support for Quality Control. These are • Complete : Mark at Pass in the Quality Register. • Advise the Project Manager of the product Quality status.8 The PRINCE2 Quality Review Technique. • Incomplete : Mark as Fail in the Quality Register. o See 7. 7. • Prepare the Quality Management Strategy document. Role Responsibilities Corp / Programme • Provide details of the Corp or Programme Quality Management System. Foundation Q&A Workbook . • Be able to recognize the purpose of the Quality Theme. • Be aware of the objectives of the Quality Review Technique. Administrator and Presenter (Tip: CRAP. Project Manager • Document the customer’s Quality Expectations and Acceptance Criteria. • Prepare the Project Product Description with other persons. • Approve the Quality Management Strategy.6. Management • Provide Quality Assurance to the project. • Approve the Project Product Description. and that it respects the customer’s quality standards and meets the quality criteria listed in the Product Description. 7. Team Manager • Produce products consistent with Product Descriptions.9 Responsibilities Here are some of the responsibilities relevant to the Quality Theme.10 What you need to know for the Foundation Exam You should: • Be able to recognize different roles in a Quality Review Meeting. Results of the Quality review meeting and the Quality Register The main output is a decision to quality-approve the products or not. the purpose of the Quality Review technique is to inspect that the product is complete. no need for another meeting. To summarize.6. Project Assurance • Give QMS advice to Project Manager. • Assure the Project Board on the implementation of the QMS. • Know the difference between Quality Assurance and Project Assurance. • To baseline (sign off) the product so no more changes can be made. sorry PRINCE2). Senior User • Provides Quality Expectations and Acceptance Criteria for Project Product. Senior Supplier • Provide resources to undertake supplier Quality activities. o Tip: who do Quality Assurance and Project Assurance report too?. Executive • Approve the Project Product Description.2 and 7. o The purpose of the knowledge in the Quality Theme is to define and implement a system that will create and verify that products are fit for use. • To provide confirmation that the product is complete (get agreement). and to identify any actions that are still required and promote quality. • Be aware of the differences between the Customer Quality Expectations and Acceptance Criteria (see 7. o These are Chair. • Provide acceptance of the Project Product (end of project).Quality 49 Objectives of the Quality Review Technique: • To assess the products against their agreed criteria.SAMPLE Management Plaza . View the video for this PRINCE2 Theme. Product Descriptions. Be aware of how the “Focus on products” principle is supported by the Quality Theme (you don’t need to know this for the exam). Quality Register and the Quality Management Strategy (and answer why each document is needed).Quality 50 • • Know the purpose of the Project Product Description. some videos are public Foundation Q&A Workbook .SAMPLE Management Plaza . Use the Foundation Q&A Workbook to learn more about the types of exam questions to expect. . Let us take a look at what will be covered in this Plans Theme: 8. I have seen few Project Managers using the Product-Based Planning technique. Introduction to plans and planning. a more relaxed approach is required and each stage can be an iteration. 8.2 What happens in the real world? Most project managers seem to look around to see how other project managers do their planning. And finally.to 30-page document. So the Stage Boundary process can be used to create Product Descriptions for new products that will be created in the next stage.1 Plans Introduction to Plans Knowledge • • • • • • • • • The purpose of the Plans Theme and how the information in this chapter can help you. its structure and value to the Project Manager. most importantly. Stage Plan and Team Plan. Introduction to Product-Based Planning. Perhaps the main reason for this is that Project Managers don’t get time to cover this in the training. The Product Checklist. as they first want to fit in with any standards that are used. Introduction to the Exception Plan. you just need to be aware how Product-Based Planning works. the responsibilities of the different roles in the Plans Theme. You will find an example of a product checklist later in this Theme. This is possible with some projects. but with many IT projects. One good thing to keep in mind is how you will communicate the Project Plan to the Project Board. My own favorite planning/tracking/reporting tool is the product checklist. One of the first things I do with planning is to try and get an idea of scope. which has 4 steps. Stage Plan.Plans 51 8 8. Introduction to different types of plans: the Project Plan. maintain and read and. It is very easy for a project to start off as a simple project. e. You could ask the Executive how they want to receive this status information (ask about previous projects). Therefore. This Theme helps to answer the following questions: • What is required? • How it will be achieved and by whom? • How to best go about creating the products? Foundation Q&A Workbook . this manual includes a simple example and shows how you can use the indented list to help you get started. it is a good way to communicate with stakeholders that need this information. The three levels of a plan and how it compares to the project team management levels. especially the Product Breakdown Structure technique. For the Foundation Exam. PRINCE2 might give the impression that you need to know everything up front before you create the Project Plan and all Product Descriptions. what a plan is and what is meant by planning. Exception Plan and Team Plan. it shows exactly what this so-called simple project involves. These standard plans (templates) can be a great help. why it is used and when created.3 The Plans Knowledge provided by PRINCE2 The purpose of the information in the Plans Theme is to provide a framework to design. This is easy to create. but when you start to draw out the requirements in a Product Breakdown Structure. as it is very useful.SAMPLE Management Plaza . and then they follow a similar approach. Project Managers who work in a Programme Environment will be able to take advantage of how projects have been done in the past and get examples of how Project Plans are to be created. The PRINCE2 approach to Plans. as they are not interested in reading a 20. The Product Breakdown Structure makes it easy to discuss the scope and requirements with the Senior User. which is a pity. develop and maintain the Project Plans which are the Project Plan.g. The focus is to plan the work that is assigned to the Team Manager in Work Packages. but there will also be targets for time. so a plan is required for the project. It is therefore a good idea to have different levels of plans. What. scope.e. but it is much more than that. when and by whom a specific target or set of targets is to be achieved.5 Three levels of a Plan It is often impossible to plan an entire project from the start. • • The other plans created during the project include the Exception Plan which will replace an existing Project Plan or Stage Plan and the Benefits Review Plan which is covered in the Business Case theme. omissions and threats.g. products. As you can imagine. It is much more detailed than the Project Plan and just focuses on one stage. failing to plan is planning to fail. 8.. the backbone for any project is the plan. Foundation Q&A Workbook . Stage Plan and Team Plans. 8. The Project Plan is kept up to date by the Project Manager during the project.SAMPLE Management Plaza . The term planning is used to describe the actions used to create the plans and associated documents. Team Plans are used at the Delivering Level. It is a major control document for the Project Board.Plans 52 • • • • • What will the steps be? How can Product-Based Planning be done? What Quality has to be reached? How much will it cost? What will be the level of detail required for each plan? Remember. i. It is created during the Initiating a Project process and is a high-level plan for the whole project.4 Plans Definitions What is a plan? Sometimes people think a plan is a Gantt chart. • The Project Plan is used at the Direction Level and therefore is used by the Project Board. It is a document that describes how. It will show the major products of the project. The original plan can also be known as the first baselined (signed off and dated) Plan. The Stage Plan is used at the Management Level. They are created and used by the Team Manager in the Managing Product Delivery process. Who. when they will be delivered and the associated cost. A project plan answers these questions: Why. It is created at the start of the project and continually updated during the project to show what has been realized so far (actuals) and what is still left to do. PRINCE2 recommends three levels. And remember. quality. You might think the target is just to create the Project Product. as you can only accurately plan in detail a short time in advance. benefits and. as there is pressure to get started on creating the products that the customer wants to use. cost. as far ahead as you can see. It is created for each stage (e. This is called the planning horizon. Sometimes the planning stage can be rushed. and is used by the Project Manager on a day-to-day basis. Failing to Plan is Planning to Fail The very act of planning helps the Project Management team to think ahead and avoid duplication. When and How much What is Planning? Planning is the act or the process of making and maintaining the plan. A plan must therefore contain sufficient information to show that these targets are achievable. for a period of 2 months). The three types of plan are: Project Plan. The original plan could also be compared to the plan during the project or the plan at the end of the project to see how well the project is doing in relation to the original plan. risk.. without a Plan there is no control. of course. MgmtPlaza. Corporate or Programme Plan Direction Level 1 Project Project Plan Exception Plan When out of tolerance Management Project Manager Level 2 Stage Initiation Stage Plan First Plan created (Delivery) Stage Plans Exception Plan When out of tolerance Delivery Team Manager Level 3 Team (Optional) Team Plans No exception plan Instead raise an issue Based on OGC PRINCE2® material.Plans 53 Corp.Once per stage -. Project mandate Corporate or Programme Management by Frank Turley www.Many per Work Package Optional Non PRINCE2 Format Team Plan 9 Closing a Project Pre-Project Initiation – 1st Stage Delivery Stages / Controlling a Stage Fig 8.Many times during stage -.Once per Work Package -. project closure 1 Management Project Manager Use Product Base Planning PPD PBS PFD PDs Created SB: Next Stage Plan 3 4 or Exception Plan Updated 5 6 7 8 Updated Project Plan 2 IS Plan Project Plan SB: Project Plan 1-Project Product Description 2-IS Plan (Plan for Initiation Stage) 3-Product Base Planning 4-Project Plan 5-Next Stage Plan 6-Exception Plan 7-Project Plan (update) 8-Project Plan (complete) 9-Team Plan (optional) Delivery Team Manager -.com Version 1.1A Direction Project Board Directing a Project (DP) Authorize initiation Authorize the project Authorize a Stage or Exception Plan Give ad hoc direction Auth.. This will make it easier to understand when the plans are created and their value to the project.6 The Path to Planning Here is a simple overview of the planning steps in a typical project.2 The Path to Planning Foundation Q&A Workbook . All Plans are explained in the following pages. I would suggest referring back to this diagram when reading the next few sections. Reproduced under license from OGC Fig 8.SAMPLE Management Plaza .Once during project -.1 PRINCE2 Planning Levels 8. One advantage of using stages is that it allows a big project to be broken up into manageable chunks. The Project Plan shows the major products. the Project Plan is a very high-level plan. • Create Product Descriptions (PDs). IP and SB processes. It is a day-to-day level plan for the next stage. and also showing what has been delivered. It provides the Business Case. Stage Plan and Team Plan The Project Plan: What is a Project Plan? The Project Plan is a high-level plan and is mainly used by the Project Board. and it shows when and which products have been created in the last stage. After approval. complexity and the number of resources involved in creating the products. The following documents are produced by this technique • Project Product Description (Only created in SU process). This is the Initiation Stage Plan. The Stage Plan: What is a Stage Plan? A Stage Plan is required for each stage in the project. The Exception Plan picks up from where the current plan left off and goes to the end of the plan. activities and resources required for the project. Product Descriptions are the responsibility of the Project Manager or Team Manager. Some other project methods use sub-projects to break up larger projects. The Project Board can check the status of the project at the end of each stage to see how well the project is progressing in relation to the original Project Plan. cost. Remember. Stage Plans are created by the Project Manager and are produced near the end of the current stage for the next stage. the Project Plan is updated by the Project Manager showing the full cost and timescale for the project. Cost & Timescale information and needs to be approved by the Project Board. The Project Plan is updated in each Stage Boundary process.7 The Project Plan. At the end of the project. This Product-Based Planning technique can be used in the SU. Team Plans: What are Team Plans? Team Plans are produced by the Team Manager to plan the execution of one or more Work Packages. The Stage Plan is similar to the Project Plan but is a lot more detailed. Exception Plans are plans that can be used to get the project or stage back on track if the project or stage goes out of tolerance. Foundation Q&A Workbook . • Create Product Flow Diagram (PFD). The Project Board can compare this plan to the original baselined plan to see how well the project went compared to the original plan. as it is for the whole project. Question: How is the Project Plan used by the Project Board? Answer: The Project Plan is used by the Project Board as a baseline against which to monitor the progress stage by stage. • Create Product Breakdown Structure (PBS). The Project Plan is also updated to include any new planning information from the next Stage Plan and perhaps other forecast information. Creating the PPD is the first part of Product-Based Planning. as the Project Manager will use this plan on a day-to-day basis. it is created by the Project Manager. The Project Plan is a high-level plan for the whole project. Team Plans are created by the Team Managers and they are optional. Creating the Stage Plan: Each Stage Plan is produced near the end of the current management stage in the Stage Boundary process. It provides a statement of how and when a project’s time. Team Plans are optional. it is baselined (signed off and stored). 8.SAMPLE Management Plaza . This is the day-to-day plan for the Initiation Stage.Plans 54 1 2 3 4 5 6 7 8 9 Description Create the Project Product Description (PPD). depending on the project’s size. scope and quality targets are to be achieved. which is the 1st stage in the project. Activities to create the products. choose company standard Step 1 is only done once 1 Design the plan Use Product Based Planning e. It starts with identifying the products required and only then considers the activities.g. 8. prerequisites.Plans 55 PRINCE2 does not provide a format for a Team Plan. then they must warn the Project Board about this deviation (also called “Exception”). Choose plan f ormat e. the Project Manager is forecast to go out of tolerance on cost by 15% (or does so). The Project Board will most likely ask for an update plan to complete the current stage. external dependencies 6 Document the plan (add support text) Fig 8. Most other project methods and frameworks start with the activities. if during a stage. during a workshop 2 Define and analyze the products Use Product Descriptions and PBS diagram during this step 3 Identify activities and dependencies Risks Risks Involve experts (experience) PM Role = Facilitation 4 Prepare estimates Def ine activity sequence & add assign resources 5 Prepare the schedule Assumptions. will replace the current Stage Plan to allow the Project Manager to complete the current stage. and this plan (Exception Plan) will replace the current Stage Plan. Put activities into a schedule and show sequence. Exception Plans can be used to replace Stage Plans and Project Plans. plan introduction. dependencies and resources required to deliver the products. An Exception Plan is created at the same level of detail as the plan it replaces. but not Team Plans. So the Project Manager will create an Exception Plan and if approved by the Project Board.SAMPLE Management Plaza Risks Risks Risks All these steps can be done in one workshop f or a small project . lessons used. Constraints. The Team Managers may create their Team Plans in parallel with the Project Manager as they create the Stage Plan. 6) Document the plan: Foundation Q&A Workbook .” The PRINCE2 approach to Plans has the following 7 steps that are easy to understand. It picks up from where the current plan stopped until the work is done.8 The Exception Plan – Out of Tolerance An Exception Plan is used to recover from the effect of tolerance deviation (go out of tolerance).3 Planning Steps 1) Design the Plan: 2) 3) 4) 5) Define and analyze products: Identify activities and dependencies: Prepare estimates: Prepare the schedule: ------Should be called “Choose style and format of plan” Project-Based Planning is used to do this. Add narrative to explain plan using assumptions. Risk. 8. Estimate time and resources. and Teams can be from different suppliers who might have their own plan format. For instance. Perhaps you have heard the term “Work Breakdown Structure.g.9 The PRINCE2 Planning Steps and Design the Plan PRINCE2 has a unique approach to planning. Improving communications. Clarifying what is in and out of scope. Shows product flow and interdependencies. Some tips to consider for this step – Design the plan: • • • Think of your audience and how they might access the data. These steps are taken to create the Project Plan.10 Planning Steps 1 to 7 8.10. budgets.g. planning and monitoring.2 Step 2: Product-Based Planning Introduction PRINCE2 uses the technique Product-Based Planning to identify and analyse the planned products. Clearly showing what the project involves. The choice of planning tools is not obligatory but it can save a great deal of time and highlight potential issues. and makes it much easier to get feedback. 3 Write the Product Descriptions (PD’s) Can be done at the same workshop This diagram show the sequence of events & dependencies 4 Create the product flow diagrams (PFD) Fig 8. High level description with quality requirements & acceptance criteria 1 to 4 pages: e. Involving users in supplying product requirements and thus increasing their support. new information on new and existing risks will be uncovered and need to be followed up.SAMPLE Management Plaza . this avoids setting the wrong expectations. and tolerances For each of the above steps. as it provides a simple overview of what needs to be done. Consider which tools to use for things such as estimating. Product-Based Planning is an iterative process and has a number of benefits: • • • • • • Clearly identifying and documenting the plan’s products and interdependencies. 8.1 Step 1: Design the Plan I think this heading should be “Choose Plan Design.Plans 56 7) Analyze the risks: -- monitoring. then the Programme will most likely have a common approach to planning. this helps to avoid “scope creep. which could then be adopted by the project. it is easier to gain a clear agreement on what needs to be produced. Listing all products that need to be created. If the project is part of a program.” And finally. the Stage Plan and perhaps some of the later steps can be taken to create the Team Plan. such as overuse of resources and dependencies issues. PC Description 1 Write the Project Product Description (PPD ) PPD is part of the Project Brief SU Process A diagram overview of products to be created during the products 2 Create the Product Breakdown Structure (PBS) IP & SB process Write product descriptions f or major products and include Quality inf ormation. 8. The four steps in Product-Based Planning are: 1) 2) 3) 4) Writing the Project Product Description: Creating the product breakdown structure: Writing the Product Description: Creating the Product Flow Diagram: Describing the main product (SU process).10. control.4 The Product-Based Planning technique Foundation Q&A Workbook .” as that is mostly what Project Managers do in the real world. Done for required products. benefits and risks. You could break it down by: Identifier: Title: Purpose: Composition: Source Products: Skills Required: Customer Quality Expectations: Acceptance Criteria: Tolerances: Acceptance method: Acceptance Responsibility: Foundation Q&A Workbook .10. and people having specific knowledge.a prioritized list of criteria that the product must provide before it can be accepted by the customer.g. and decide on one by reaching a consensus with the others. The Project Product Description should be as detailed and complete as possible. • • Use Post-Its or a whiteboard. Describe how the Project Product may be accepted. New Product Descriptions can be created during the project and this will happen in the Stage Boundary process as part of planning the next stage. Skills required to create the products A description of the expected quality and standards that will be used. This is a description of the main product that the project will produce (for example. so this can be further refined in the Initiation stage. 8. Who will be responsible for confirming acceptance? Table: Project Product Description It is not always possible to define the Project Product Description at the start of the project. In fact. See this as a spreadsheet list of all the Quality Expectations. quality.2. They will consult with the Senior User. which is a good thing. This will cover all specifications and the functionality of each product. costs.SAMPLE Management Plaza . “Apartment Block”). the “Apartment Block”). PRINCE2 may also give the illusion that all Product Descriptions have to be described up front but this is not the case. List of products that are used to create the product but are not seen as part of the final product (for example. The Project Manager will coordinate most of the work in preparing this document. such as User. You should consider the following points when creating a Product Breakdown Structure: • It is a good idea to involve a group of people (workshop) who represent the different interests of the project. What is the purpose of the product? (For example: To build highquality apartment block with 8 x 2 bedroom apartments to rent out. A “mind map” diagram could also be used. PRINCE2 just states that all Product Descriptions need to be agreed and baselined before development can start. Tolerance for time. A description of the major products to be delivered by the project (such as a description of the apartments). so it will be easier to make changes as you learn.2 PBP Step 2: Create the Product Breakdown Structure A Project Product is broken down into the major products which in turn are broken down into further products to give a hierarchical overview. scope. A checklist . then you are on the right track. Don’t worry about how well you are doing this.Plans 57 8. Supplier.. I would suggest that you start with a mind map. Project Product Description A unique key ( used by Configuration Management ) The Project Name (e. The Senior User is responsible for providing the information on the Project Product Description. architect plan. and building equipment). and other specialists. If you can use the PBS to help explain how you see the parts of the project to another person. Let’s use the example of a new laptop project. with an extra column to mark “accepted”. We already covered this in the Quality Theme and learned that a detailed Project Product Description is very important to understand what needs to be produced by the project and to understand the required quality.2. and it can have the following format.1 PBP Step 1: Write the Project Product Description The very first step in Product-Based Planning is to write the Project Product Description. Executive. scaffolding. Be open about the structure to use in the Product Breakdown Structure diagram.10. This is called a Product Breakdown Structure (PBS). Book (external) 3. 1. • Identify external products that will be used and use Circle or Ellipse to show this.1.2. Forget Password Page 1.1.1.2. Information Added 2. Configured Payment Page 1.1.10. Sample Book (external) 2.4. URL Name (external) 3.2.3.SAMPLE Management Plaza .2. look at the following simple example. Configured Registration Page 1. To get a better idea.2.3. Page Extension (external) 1.2. Site text (external) 2. Design & Layout Requirements (external) 2. Configured Site 1.1. This will help you draw the Product Breakdown Structure. Updated Design & Layout 1. Registration Page 1.1. Requirements 1. Configured Hosting Foundation Q&A Workbook . The advantage of an indented list is that it is easy to create and easy to change. Payment Component (external) 1.1.2. view a sample.3. 8. For those who are not used to creating a Product Breakdown Structure.1. URL Configured 3. buy the book and join a newsletter list • • • • • • • • • • • • Welcome Page Registration Page Register Page for Newsletter Purchase Page Copy of Book Hosting provided name Site Design & Layout Requirements Website Template Layout for Registration Page Hosting provided name Joomla Knowledge Knowledge to set up site with hosting company Composition Derivation Development Skills Etc. Registered URL 3. Forget Password Extension (external) 1.3 Product-Based Planning .3. Configured Design & Layout 1.1.Example This is an example of a simple Project Product Description for a simple website project: Title Purpose Book Website Create a website to promote a new book.1.2. b) the amount of power products used.4. Activated Site 3.2. The website should allow visitors to register.Plans 58 a) how you source products from different suppliers.2. Configured Forget Password 1.2.1. or c) electronic & non-electronic items. Indented List: Book Website This provides the same information as above in an Indented List format. I suggest you start with an indented list like the following one.1.4. protective doors.2. Registered with Hosting Company Product Breakdown Structure: Book Website Book Website www. Hosting Company name (external) 3. architect plan. Elevator Product Description: A unique key (used by Configuration Management). As projects are often similar in companies.10. People who represent the Users should be involved in defining the Quality Criteria for the products and other Quality information. etc. scaffolding. elevator.com Activated Site Configured Site Configured Forget Password Forget Password Page Forget Pass. Once the Project Plan is complete.2. all the Product Descriptions are baselined and have to pass via Change Control if changes need to be made.4 PBP Step 3: Write the Product Descriptions (NR) A Product Description is normally written for each of the identified products in the Product Breakdown Structure if required.Management-Plaza.SAMPLE Management Plaza .g. Remember that Quality information forms a good part of these descriptions. What is the purpose of the product? A list of all parts of the products (e.g. • • • • • • Writing Product Descriptions should be started as soon as they have been identified and should involve all the necessary persons.). maintenance section.2. The characteristics of the product – the way it’s presented (e.. For small projects.5: Product Breakdown Structure for Book Website 8.g. some Product Descriptions from previous projects could be used instead of creating each Product Description from scratch.. This is the Product Name (ex: “Elevator”). Here are some things to consider when creating the Product Descriptions. Refer to standards whenever possible instead of writing out the specification in detail. and building equipment).Plans 59 3. elevator shaft. Extension Registration Page Registration Extension Updated Design & Layout Design & Layout Reg.2. it may be necessary to write only the Project Product Description. Identifier Title: Purpose: Composition: Source products: Format & Foundation Q&A Workbook ..1. List products used to create the product but are not seen as part of the final product (e. Requirements Payment Component Information Added Sample Book URL Configured URL Name Configured Hosting Hosting Co Name Configured Registration Page Book Site Text Registered URL Registered with Host Co Configured Design & Layout Configured Payment Page Fig 8. Table: Sample Product Description for an Elevator 8. The diagram also shows the products that are outside the scope of the plan. • Accredited safety company..5 PBP Step 4: Product Flow Diagram A Product Flow diagram defines the sequence in which the products of the plan will be developed.Management-Plaza.g. meet the required elevator code operation and standards (95/16/EC)). URL Configured URL Name www. 5-year warranty. as well as estimating and scheduling. and shows the dependencies between them. • Inspection: elevator code safety and operation standards.g. elevator technician provided by elevator company).Plans 60 presentation Development skills required Quality Criteria Quality Tolerance Quality Method Quality Skills Required Acceptance Responsibilities stainless steel doors and a description of inside the elevator). • Reviewing: Accredited safety company. operating noise. Requirements Payment Component Site Text Configured Forget Password Book Sample Book Configured Registration Page Configured Design & Layout Configured Site Information Added Book Web Site Configured Payment Page Step 4: Product Flow Diagram Fig 8. pass or fail)). The method used to check the product Quality: • Inspection: Noise level can be done with a Db meter.. vibration might have tolerance value (e.SAMPLE Management Plaza . reviewing and approving: • Elevator company for producing. The range of Quality Criteria that would still be acceptable (e. Skills required to carry out Quality checks: • Elevator technician skills.. elevator technician..e. Once this diagram is in place.com Activated Site Registered URL Registered with Host Co Hosting Co Name Configured Hosting Forget Password Page Forget Pass. The Quality Specifications that must be met (e. the next steps would be to consider the activities that are required. • Approver: This could be the building architect or Senior User. Responsible for producing.g..10. passing safety checks may have no tolerance (i.g.2. Skills required to create or configure the products (e. Extension Registration Page Registration Extension Updated Design & Layout Design & Layout Reg.6 Product Flow Diagram – Book Website Here are some points to consider when creating a Product Flow diagram: Foundation Q&A Workbook . 5 Step 5: Prepare the schedule (NR) This is the 5th step of the PRINCE2 approach to plans.SAMPLE Management Plaza . while external denotes outside. 4.6 Step 6: Document the Plan (NR) Documenting the Plan is the 6th step in the PRINCE2 Approach to Plans. 8. and the duration of effort for activities before they can begin this task of scheduling. Consider nonhuman resources.4 Step 4: Prepare Estimates (NR*) This is the 4th step of the PRINCE2 approach to plans. It is just that PRINCE2 has given each of them a name and MS Project allows you to do most of them at one time. testing equipment). 8. 2.. as specific skills are often crucial. and this is much easier now that you have the information from Product-Based Planning documents with the Product Breakdown Structure and Product Flow diagrams together with the Product Descriptions. an ellipse for an outside product). Define milestones. here are some of the steps that a Project Manager will accomplish: 1. as we can never really guarantee an exact time for an activity. The objective is to add text similar to the following to help explain them: 1.10. Dependencies Look for dependencies between the activities and note them. Level resource usage. A good example of a Product Flow Diagram is the assembly diagram that you get when you buy furniture at IKEA. Calculate total resource requirements and costs. it’s better to ask someone who has more experience. 5. their dependencies. Agree control points. 8.10. You can consider creating the Product Flow diagram at the same workshop meeting as the Product Breakdown Structure as you will have the people with the knowledge with you. Define activity sequence. 8.10. 6. travel and money. Internal dependencies are within the project. Activities The objective is to make a list of activities that need to be done. So. The Project Manager should do as little estimating as possible as. there are many different approaches to scheduling and more and more people are using computer-based tools to help. Estimating is about deciding how much time and how many resources are required to carry out a piece of work to an acceptable standard. The Project Manager must already have the list of all activities. Assess resource availability. Use symbols in the diagram (a rectangle for a product. • Approximating the effort required for each activity. So the Project Manager should facilitate a workshop and invite the necessary persons. Their diagrams show the steps you have to follow.Plans 61 • • • The Project Manager should make sure to involve the other people who will help to deliver the products instead of trying to do this on his/her own. this can be done in the same workshop as Product-Based Planning. If you have done scheduling before. Plan Description: A text description of the Plan to help explain it. 7. 3. such as equipment (e.3 Step3: Identify Activities and Dependencies (NR) This is the 3rd step of the PRINCE2 approach to plans. Present the schedule. There are two types of dependencies – Internal and External – and there is a clue in the name. you have covered most of these steps.10. 8. Foundation Q&A Workbook .g. Assign resources. Estimating involves: • Identifying the type of resource required. Tolerances: 9.SAMPLE Management Plaza . 8. Planning assumptions: 5. • Define tolerances for each stage. • Share responsibility for writing Product Descriptions and PFD. • Approve Project Plan and can approve Stage-Level Exceptions Plans. Risk: Aspects that must be in place for the Plan to succeed. • Facilitate complete Product-Based Planning process. • Provide resources to assist with Product-Based Planning & Planning.12 Responsibilities Here are some of the responsibilities relevant to the Plans Theme. Monitoring and Control: 7. List of assumptions upon which the Plan is based. Lessons from similar or previous projects. Plan Date when this will be ready and Actual Date. Overview of Risk. Lessons incorporated: 6. Plan & Actual dates for Approval. It is a very simple way to communicate the progress of the project to stakeholders and is also my preferred planning tool. • Update Project Plan (during the SB process) to show actuals to date. • Give Planning advice to Project Manager. • Assist Project Manager with Planning and prepare Team Plans. • Assure the Project Board on the implementation of the QMS. time of project. • Create Project and Stage Plans plus Exception Plans if necessary. • Write Product Descriptions (share responsibility with Team Manager). plus key delivery dates. provisions for Risk & Change Budget.11 The Product Checklist (NR) The Product Checklist is a list of all the major products of a Plan. Budget Information: 8. Describe how the Plan will be monitored and controlled. 8. • Assist with compilation of Project Plans and Stage Plans Team Manager Project Assurance Project Support Foundation Q&A Workbook . The Product Checklist may most likely be a spreadsheet that will contain the following information: • • • • • • ID Product ID: Product Description: Product Draft: Quality Check: Approved date: Handover date: Product Title User Interface Navigation Tree User Registration Auto Password Number and Product Title. Role Corp/Programme Executive Senior User Senior Supplier Project Manager Responsibilities • Set Project Tolerances (listed in the project mandate). Plan & Actual dates for draft version of the product. • Provide resources to assist with Product-Based Planning. Cost. Plan & Actual dates for Quality Check.Plans 62 2. Plan & Actual dates for handover (if this step is necessary). • Approve Project Exception Plans. List of external dependencies that will influence the Plan. Overview of tolerances for the 6 project variables. Plan prerequisites: 3. Product Description Draft Plan Actual Product Description Approved Plan Actual Quality Checked Plan Actual Approved Plan Actual 101 102 103 104 22/2 23/2 24/2 25/2 22/2 25/2 25/2 25/2 14/5 14/5 12/6 18/6 18/5 20/5 04/7 20/7 22/7 20/5 20/5 14/5 12/6 18/6 I know some Project Managers who use the Product Checklist. External dependencies: 4. lessons incorporated. Understand how the Plans relate to the principles: o Plans help 1) Focus on products and 2) Manage By Stages. Be aware of how the “Focus on products” Principle is supported by the Plans Theme (you don’t need to know this for the exam). level of detail. • • • • • • • • Use the Foundation Q&A Workbook to learn more about the types of exam questions to expect.SAMPLE Management Plaza . some videos are public Foundation Q&A Workbook . planning assumptions. o Tolerances for Time. and monitoring and control information. the Exception Plan and Team Plans. Know the purpose of each plan. Cost.2: Step 2: Product-Based Planning Introduction. Scope and perhaps Risk. change budget and risk budget). Quality and Benefits.6 The Path To Planning. which are the Project Plan.11. budgets (cost. Know the purpose of the Exception Plan and how it’s used. Recognize and understand the 4 steps in Product-Based Planning: o See 8.13 What you need to know for the Foundation Exam You should: • Know the purpose of the Plans Theme: o The purpose of the information in the Plans Theme is to provide a framework to design. Know when the Plans are created and by whom: o See 8. including their quality information. Stage Plan and Team Plan. View the video for this PRINCE2 Theme. develop and maintain the Project Plans. o Product Descriptions. who reads. who creates. Know the three levels of a plan recommended by PRINCE2: o These are Project Plan. Be aware of some the typical contents of a plan: o Plan prerequisites.Plans 63 8. Stage Plan. Let us take a look at what will be covered in this Risk theme. (b) what is at risk in the Project and (c) what is Risk Management. and the rest of the organization also has to be aware of the importance of Risk Management.Risk Theme 64 9 Risk Theme 9. assess and control risks throughout the project. the change introduces uncertainty and uncertainty is risk.2 What happens in the real world? Most Project Managers don’t really get a chance to practice Risk Management. and they rely on the Project Manager to continually identify. It is the Executive that is responsible for Risk in a project. which are Identify. If you are working in a Programme environment. as there may be very little awareness of Risk Management in the organization. They first need a Risk Management approach to follow.1 Introduction to the Risk Knowledge • Be able to answer (a) what is Risk. 9. Why is there Risk in a project? As projects are about doing something new. as risk may affect the project objectives. assess and control uncertainty during a project and as a result. Assess. Also. assessing and controlling uncertainty and improves the ability of the project to succeed”. If you are not working in a Programme environment. how it is used. Foundation Q&A Workbook . The knowledge provided in this Risk Theme provides an excellent approach to Risk Management that you will be able to understand and use. Assess and Control and What Risk Attitude is. there will most likely be a standard approach to Risk Management and hopefully you will have received training. Plan. Implement and Communicate (I Ate Peaches In China). Learn about the Risk Register. how to use it to enter Risk information. how to assess this risk. You will learn the 5 steps in the Risk Management Procedure. A good tip to remember is to ask your Executive “How should risk be assessed. then you should check if there are standard procedures available for Risk Management in the company or in use by other Project Managers. which are Identify. When is Risk Management done in the project? Risk Management is not just done at the start of the project but must be a continual activity during the full life of the project. Learn about the Risk Budget. you will learn the 3 steps to Risk Management.3 Purpose of the knowledge in the Risk Theme The purpose of the Risk Theme is to provide an approach to “identify.SAMPLE Management Plaza . You will: • • • • • 9. and how to track risks during the project. Learn the Risk Roles & Responsibilities. This is covered very well in all the Project Management methods. and how to control this risk. but it seems to get forgotten about as soon as the project starts up. tracked and communicated during the project? This will give you a very good idea on Risk awareness for the project and perhaps for the organization. they may stop once they realize that nobody is interested in the Risk information. Project Managers are not to blame. improve the ability of the project to succeed” You could also say that the purpose of the Risk Theme is that “it looks at identifying. I believe that the most important thing to understand in this theme is the structure of the Risk Register. Even if Project Managers spend an appropriate amount of time on Risk Management. and typical contents. The project needs to know how to identify risk. it is therefore one of the main tasks for the Project Manager. Learn how the Risk Theme relates to OGC Management of Risk method. which is Management of Risk (MOR). A new Risk can arise at any time in the project. you may ask “in what context?”. It states the Project’s objectives are at risk and these include the six performance targets. This Risk is an opportunity. this is a good example of a very low-risk tolerance project. As a result. Another way to say this is a Risk can be seen as a Threat or Opportunity. What is at risk? If I were to ask you the question. you are asking what the context is from a Risk point of view.” • If someone asks you what a certain word means. First. quality. Risk Context Let me explain what I mean when I say: “Understand the project’s context.4 Risk can be seen as positive or negative. Likelihood of the risk and impact on objectives. of time. Suppliers. The MOR method is a generic approach to Risk and has the following approach: 1. How best to respond to a risk. This Risk Theme provides an approach to manage Risk in a project. PRINCE2 takes another view on this. 5. Provide regular reports on Risk. 3. or perhaps User satisfaction with using the product was at risk. like: “How will this Risk affect the Business Case?” “How does Risk issue affect any of the current risks already registered?” 9. There is a project to develop a new CRM system (sales system) and there is a Risk that we can get a reduction of 50% on the warehouse integration module which has a value of €15. Define risk Roles & Responsibilities.000. cost. scope. Here.Risk Theme 65 Sample 9. 4. There are three steps to Risk Management which are Identification. Users.SAMPLE Management Plaza . understand the project context. Assessment and Control: • • • • • Identification: Assess the Risk: Control the Risk: How to identify and describe the risk. and Teams to help identify risks. Describing Risk as a positive – or should I say an opportunity – might be new for you. The Project Manager should ask questions. benefits and risk. 2. Involve Stakeholders. Establish an approach for the Project and document this approach. What is Risk Management? Risk Management is about the steps you take in a systematic way that will enable you to identify. so here is an example. as it will have a positive impact on the project. PRINCE2 takes advantage of all these procedures and principles that have already been defined instead of trying to re-invent the wheel. which means understand the project environment.5 The Management of Risk Method and Risk Context PRINCE2 makes use of the other OGC method. assess and control risk. 1) Example 1: If the project is a NASA space project and a device has to work for 10 years in orbit. “What is at risk in the project?” you might say that the project was at risk. Foundation Q&A Workbook . A project can have its own categories.Risk History The Risk Register captures and maintains the information (both threats and opportunities) on all the risks that were identified and relate to the project. but if your project is part of a program.g. Risk Author: 3. Risk Tolerances. the first question should be: What risk policies already exist in the company or in the Programme environment today that can be used so there is no need to reidentify them?” If a policy does exist.000 Risk Register Risk ID Risk Author Date Registered Risk Category Risk Description Probality X Impact Proximity Response Category Risk Response Risk Status Risk Owner Risk Actionee 56 57 58 Due to safety. 6.1 Risk Register Example This is just a unique number (ex: 042). risk to get the required stewards K. Date the Risk was registered. Turley Project Exective: G.500 €2. create plan Try to work with volenteers Look at other drinks to sell Active Active Active K. Person who raised the Risk.Risk Theme 66 2) Example 2: We are developing a simple prototype for in-house use only and this product will have a lifetime of less than 4 months. 7. So it provides a record of all risks including their status and history. Jarvis Y.500 €1. in terms of how Risk will be identified. controlled and communicated in the project. Johnson Risk High Risk Medium Low Risk €4. 9. 5. Jackson 25/10/2009 Financial UK weather. See the Risk Register as a spreadsheet with the following columns: Project Name: Village Concert Project No: 005 Project Manager C. This document defines the project procedures for Risk Management. cause. then it will provide the following information: • • • • • The organization’s attitude towards Risk (also called Risk Appetite). Another way to say this is: the Risk Management Strategy describes the specific risk management techniques and standards to be applied during the project. Procedures for escalation. event and effect). This might seem like a big task. One of these will be selected.400 €4. Probability Impact: Choose value from an agree scale (very low. • Note: A project that has a high-risk tolerance is said to have a big-risk appetite as it can take on lots of risk. normal. Proximity: How soon (when) the risk is likely to happen. such as quality.7 The Risk Register . Maths T.). Young O.Jones W. etc. This is an example of a high-risk tolerance project. Jarvis T. then most of the Risk Management Strategy will already be provided to you in a detailed template that you can update to suit the project. 9. assessed. rain will reduce beer consumption G. network. Risk Description: This is written is a specific way (e. Risk Category: Foundation Q&A Workbook . Typical Roles & Responsibilities. low. Date Registered: 4.500 Medium Term Long Term Long Term Reduce Reduce Reduce Work with city officer.. Risk Identifier: 2. 1. Example of a Risk Management Strategy document. and the responsibilities to provide a good and consistent risk management procedure. so not everything has to work with this product.000 €2. legal and supplier. When first considering Risk.SAMPLE Management Plaza . The Risk Management Strategy is created (customized to suit the project) in the Initiation stage by the Project Manager. Patrick 20/10/2009 Legal €1. Smith 21/10/2009 Organization Due to summer. there is a risk that we do not permit P.6 The Risk Management Strategy PRINCE2 recommends that each project have its own Risk Management Strategy document. Stella Fig 9. Use existing management reports that are created during the project (e. Here. Risk Owner: Mention one person who is responsible for managing the Risk. while Communicate will always be done to let stakeholders know what is going on and to get continual feedback during this process. fall back. Assess. Risk Response: List of actions to resolve the Risk. Carry out the planned responses mentioned in step 3 Plan if the risk occurs. Implement Communicate 9.8 The Risk Management Procedure Introduction The Risk Management Procedure is a set of five steps that are recommended by PRINCE2. Fig 9. 10. 9.2 The Risk Management Procedure Steps Identify Assess Plan Risk Management Procedure Descriptions First complete the Risk Management Strategy document for the project. The Risk Management Strategy document will describe how the Risk Register should be configured and used. Implement and Communicate. Plan. accept or share. Assess the risks in terms of their probability and impact on the project objectives. Risk Actionee: Person who will carry out the actions described in the response (Note: Can also be same person as the Risk owner). Risk Response Category: • 9. decide to avoid.SAMPLE Management Plaza . decide to enhance. or this could also be to plan to maximize the opportunity if the risk happens. to help reduce or avoid the threat). reduce. Risk Status: Current status of the Risk: Active or Closed. Keep communicating to the stakeholders. exploit.9 Step 1: Identify The Identify step can be divided into a number of smaller steps. think of the following sentence when you think of Risk: I Ate Peaches In China Identify. 11. your Plan steps are to prepare the specific response to the threats (e. Foundation Q&A Workbook . The first 4 steps are sequential.. 12.Risk Theme 67 8. • If an Opportunity. and then identify the risks (threats and opportunities) that could affect the project. The last point I would like to make about the Risk Register is that the Project Manager is responsible for it but it is the Project Support role that will maintain it. End Stage Report). transfer.. To help remember this. If a Threat.g. reject or share.g. which would result in. we cannot say that the risk to an international business conference in London might be a volcano.or low-risk tolerance project. how many people will use the product? 2) What is the cost to the company if the product does not work? 3) How complex is this project and the organization approach to risk? Complete the Risk Management Strategy document. event and effect in the last statement: • The cause is the active volcano in Iceland that is releasing ash (already happening). We need a few examples to get this across. which would result in a better experience for concert goers.” Example 3: An opportunity example: Let’s say that the project is to organize an outdoor concert that is 10 kilometers away from Heathrow Airport. thus grounding planes. Farmers’ crops might get damaged due to heavy rain. 2) Check if checklists are available (prompt lists). Due to an active volcano in Iceland that is releasing ash. so this is the Risk (Threat). Identify the risks using a number of techniques: 1) Review Lessons and Risk and Issue Logs from older projects. there is an opportunity that the winds might blow the ash into UK airspace and ground airplanes. event and effect. Due to the Cause. event and effect. Concert organizers see this volcano Risk as an opportunity. This event might happen. an estimate 20% more visitors. PRINCE2 recommends that we should describe this risk in terms of the cause. And describe the risks in terms of cause. scales for likelihood. roles & responsibilities. • What is the risk? So the correct way to describe this risk would be: “Due to the heavy rain. 1) The Risk Management Strategy will provide information on the Risk Management Procedure to follow. as there would be no overhead noise from the airplanes. This does not tell us very much in terms of how the volcano would affect the project. Now let us look at the cause. • The effect on our project is that it would cause 80% of the people to miss the event or not be able to return home after the event and the event would lose money. which would cause 80% of people to miss the event and the event would lose €22.1 How to Express the Risk Let us learn how to express Risk or. The threat is that fields might get flooded. Ask questions like: 1) What type of project is this? Or. which would damage the crops. how to describe Risk. 9. event and effect. there is a threat that the winds could bring this ash into UK airspace. but near the flight path. the event that is a threat. see next topic. Event & Effect Due to the fact that the volcano is active and releasing ash. Risk categories. Foundation Q&A Workbook . 3) Brainstorm and invite specialists into a room to facilitate. reports. • The event is a threat that the winds might bring the ash into UK airspace so planes could be grounded. the structure of the Risk Register. impact. as fields will get flooded. Now let’s describe this volcano risk terms of cause. We could write this risk like the following: . there is a threat that the fields might be flooded.000. • What is original cause? The cause is heavy rain.9. in other words. etc. Example 1: Let’s say that our project is to organize a European conference on solar energy in London and we invite the top 300 persons from around Europe to this event who would mostly fly in. PRINCE2 recommends that risk should be described in a certain way. as this will make it easy.Risk Theme 68 • • • • Identify the context: which is to understand the project from a risk point of view. For example.Cause. whether this is a high.SAMPLE Management Plaza . Example 2 (taken from the PRINCE2 Manual): I will first mix up the sentence so you can think about the cause. the Event might happen. and the effect. proximity. • What is the threat? The crops will get damaged if the risk occurs. Tip: Write the sentence in the following manner. and probability impact grid.3 Expected monetary value example You can use the technique shown in the above table and place a value on each risk. And how the impact of the risk may change over the life of the project. €80. but much nearer if the event was held in November.500 …… Expected monetary value €3.1 Step 2: Assess Risk: Estimating (NR) There are a number of techniques for estimating Risk. such as probability trees. The probability of the risk (i. 3. PRINCE2 recommends that the following is understood for each threat and each opportunity: 1.. These are three of the columns in the Risk Register. it combines the cost of impact. 2. The Expected Value is impact by probability. when this is likely to happen. this makes it easy to compare the risks with each other. The proximity of these threats.000 ….000. You do not need to know these for the exam. i.Risk Theme 69 Due to (cause)… there is the risk of (event)… that could result in (effect)…. €1.g. what will be the damage done?). The impact (quantify in terms of project objectives. so that you’ll have a good idea of how to use one of these. expected value. icy roads may be 5 months away for a summer event. You will see that these go together. and the proximity for each threat or opportunity. I think I need to give an example to explain this: Foundation Q&A Workbook . i.. • • Let us say the probability of this happening is 2%.. Most importantly. so €80. Pareto analysis.500 Fig 9. 9.000 €15.. • The impact of this would be €80.g. €80.g. 9. The Expected Value technique: This technique combines impact cost (e.).10 Step 2: Assess Risk How to Assess Risk? Assess Risk covers two actions: Estimating and Evaluating Risk. I will give one example.e. as this is the cost to buy a new one. Evaluating is to group all the risks together (both threats and opportunities) and get an overall Risk Value for the whole project. Estimating is about assessing the probability. Risk ID Likelihood Impact Expected value (likelihood * Impact) 04 05 06 … 2% 4% 10% ….600 €400 €1.10. the likelihood of it happening). Example: The risk is that some specialized computer-testing equipment that you use on your project may be damaged or stolen.. 5%).000 €10. the impact.SAMPLE Management Plaza .600... In other words. (e.000) with the probability (e.e. 4.e.000 by 2% is €1. This is a Probability versus Impact diagram and it’s an easy way to compare risks with each other.. The impact at the start of a project is for the whole project.10.g. PRINCE2 recommends plotting the estimates on a Summary Risk Profile diagram. This would give you the Risk Value of the whole project. while the impact towards the end may cover only one stage. So the Project Manager will include information on any changes to the Risk above the Risk Tolerance line (see red dotted line) in the End Stage Report. Programme Management or Project Board point of view. the Impact of this risk gets lower as the project goes on. The calculation in the example was €1. How do you think we could get a risk value for the whole project? Earlier in this theme we gave an example using the expected monetary value technique to assign a value to a risk. The Project Manager will immediately inform the Executive if a risk moves from below to above the Risk Tolerance line. such a figure for each project before it starts would be very useful. • It is very useful for communicating the project’s level of risk to the Project Board. There are a number of advantages to this diagram: • It is easy to get an overview of all the risks. So. Probability (The likelihood of the risk happening) Report to Project Board 5 4 3 2 1 8 2 1 Minor Risks 9 4 7 6 5 3 4 5 3 1 10 2 Impact (the impact of the risk on the project if it happens) Fig 9.600. From a Corporate. I would strongly advise you to take a good look the Summary Risk Diagram example and understand its structure. 9. at the end of each stage.2 Step 2: Assess Risk – Evaluate (NR) Evaluate: is the 2nd of two parts of the Assess step in the PRINCE2 Risk Management procedure. For example. • You can draw a Risk Tolerance line on the diagram to distinguish risks that have both a higher impact and higher probability rate from risks that have a lower level of probability and impact. • All risks above this Risk Tolerance line might need action to be taken.4 Summary Risk Profile The Project Manager is expected to provide Risk information to the Executive and Project Board e. Imagine adding all these values together for each risk.Risk Theme 70 Let us say there is a threat that a supplier will take 20% longer to do their tasks than planned. a Project Board might want to continue with a project only if the risk for the project is less than an agreed tolerance. • You can see which risks will need attention.SAMPLE Management Plaza Report to Project Board . What is Evaluate and how does it differ from Estimate? The objective of Evaluate is to assess all the risks together (both threats and opportunities) and get an overall Risk Value for the whole project. Remember to Foundation Q&A Workbook . Share and Reject. Fallback. For instance.12 Plan the Responses to Threats Here I will explain the different responses to Threats and give an example of each. Transfer. while threats will have negative amounts. Reduce. 9. E.g. Enhance. Foundation Q&A Workbook . As we have already seen. If the Project Manager fails to plan a response to a risk. Note: Our goal is to reduce / prevent the risk from having an effect on our project. After all. • The 6 responses for threats are: Avoid. Transfer.11 Step 3: Plan is about Planning the Responses Planning the responses is about planning specific responses to the threats and opportunities: The objective of planning the responses to risk is to reduce the threats and maximize the opportunities.SAMPLE Management Plaza . failing to plan is planning to fail. and Evaluate groups all risks together to give one Risk Value for the whole project. It is always good to be prepared.5 Responses to Threats PRINCE2 suggests 6 responses for threats and four responses for opportunities. but it will no longer have an impact as far as the concert project is concerned. if your project is to organize an outdoor event and one of the risks is a threat of rain…if you do nothing to prepare for this and halfway during the concert it starts to rain heavily. Accept and Share. As you can imagine. the responses are: Avoid. 1) Response: Avoid Objective: Take action so the threat no longer has impact or can no longer happen. It still could rain. opportunities will have positive amounts. Share and Accept • The 4 responses for Opportunity are Exploit. 9. To summarize. Share costs/profits between Customer and Supplier Just accept the risk as nothing can be done to further reduce or avoid Fig 9. Insurance or Supplier E. we could prevent the rain from having an effect on our concert if we move it indoors.g. it’s a bit too late to start erecting a tent or ordering plastic ponchos to distribute. Reduce the probability of the risk Reduce the impact if the risk does occur A plan of actions that would be done if the risk occurs (Contingency plan) Transfer the financial risk to another party. Fallback. Threat Responses Avoid Reduce Fallback Transfer Share Accept Take action so the threat no longer has impact or can no longer happen.Risk Theme 71 include any opportunities into the calculation. For example. Reduce. they will be caught off-guard if this risk materializes. Estimate deals with one risk at a time. 6) Response: Share Share is both a response for threats and opportunities. Another example of avoid is to cancel the concert. the people would not get soaked from the rain and thus. For example. Example: Let’s use the example of the concert again. This fallback reduces the impact of the rain and. If it does rain during the concert. Share is very common in customer/supplier projects where both parties share the gain if the costs are less than the planned costs. Reduce response is the most common way of dealing with risks. One of the risks is that it may rain. using an insurance policy. it allows the game to continue after the roof has been closed. if it rains. Here. Example to Reduce Impact: The objective is to reduce the impact in case the risk occurs. and share the loss if the costs are exceeded. 2) Response: Reduce Here. Example: There is a risk that another outdoor concert could be held around the same day as your concert and this might affect ticket sales. you could recover the costs if the threat does happen. See fallback as a fallback plan of actions that would be done if the risk occurs and would become an issue. This would not stop it from raining and it takes 5 minutes to close the roof of the tennis court. Note: The action of closing the roof is only done once the threat is real. actions are taken to: a) Reduce the probability of the risk. However. Example: There is an important tennis game at Wimbledon in Centre Court which now has a roof that can be closed. Example to Reduce Probability: The objective is to reduce the probability of the risk happening. So you take out an insurance policy to cover any losses you could incur if this risk does occur. This is a clear example of reducing the probability. I will give an example of both reduce probability and reduce impact. Now. you have reduced the impact of the rain. To help understand this. you do keep the status of this risk open and continue to monitor it. we could move the concert to July where it’s 3 less times less likely to rain. Moving the concert to another time would just cost too much and some people have already bought tickets. yet. This response has removed the threat. b) Reduce the impact if the risk does occur. The fallback plan is to close the roof once it starts to rain. the organizers could order a load of sponsored plastic ponchos to be offered to the concert-goers when they arrive. Using the concert example with the threat from rain. you decide to do nothing about it and continue as normal. 5) Response: Accept Here. so you decide to move the concert indoors thus avoiding the risk. Concert-goers might want to have their money back but you have spent a lot of money already just organizing the event. a decision is taken to accept the risk. Foundation Q&A Workbook .SAMPLE Management Plaza . 4) Response: Transfer Here you can transfer the financial risk to another party. These actions would help to reduce the impact of the threat. but the risk is still there. 3) Response: Fallback Fallback is also referred to as contingency. One of the threats is that one of your top acts might not be able to play at the event due to illness or some other reason. so the grass could still get a few drops of rain. After some consideration. it would have no impact on the concert. It just may cost too much money to do something about it or it may not be possible to do anything about it. so you just live with the risk.Risk Theme 72 Example: You are organizing an outdoor concert for 600 people in April in the UK. You would also share the losses if it is below this amount. if the risk does happen. If this risk does happen. you would take advantage of it and use it. Opportunity Responses Exploit Enhance Share Reject If the risk does happen. 2) Response: Exploit Exploit is where. It’s where you share the profits and losses with another party.6 Responses to Opportunities 3) Response: Enhance Enhance is where you take actions to improve the likelihood of the event occurring and you enhance the impact if the opportunity should occur. So what is the difference with Exploit? o With Exploit. Foundation Q&A Workbook . etc.SAMPLE Management Plaza . Example: I will use the outdoor concert event project. suppose you want to provide VIP Car Parking. Fig 9. The Risk is that the weather may be very good and you can sell a lot of ice-cream. Exploit. you will take advantage of it and use it. Share costs/profits between Customer and Supplier You decide not to take any action on this opportunity. advertising. Note: For the exam.g. Example: The Risk is that the weather may be very good and you can sell a lot of ice cream. stands. at short notice if required. You take the following action to enhance this opportunity. if the risk does happen. then you take advantage of it.Risk Theme 73 Example: Using the concert example. o With Enhance. you just need to be able to recognize these responses. This is not the same as “Exploit. You take actions to improve the likelihood of the event occurring E. o Contact an employment agency to supply salespersons at short notice if required. you try to increase the chances of making it happen or enhance the impact if the risk does occur. o Contact ice-cream company and get them to supply ice-cream. 9. there is a certain fixed cost that you must pay and you agree with the supplier to share the profits if the revenue is above this fixed cost amount. then you will exploit it. Enhance and Reject. 1) Response: Share I already covered “Share” when discussing the planning responses to threats.” but doing certain things will give a greater chance for the opportunity to happen.13 Plan the Responses to Opportunities The responses to opportunities are: Share. Risk Theme 74 4) Response: Reject This is where you identify an opportunity and decide not to take any action on this opportunity. There can be many reasons not to do this. For example, it could cause you to lose focus on your main objective, or the return on this opportunity could be low. Example: There is an opportunity to invite another equally known guest star free from the same label as your lead top act; however, you decide not to go ahead with this, as you cannot mention the artist’s name on the posters and advertising, so you would not sell any extra tickets. Also, it will cost you extra to provide facilities for this extra artist. So it sounded like a cool idea, but did not bring any extra value to the bottom line for the concert, only extra costs. Again, I hope these examples help your understanding of how to respond to an opportunity. 9.14 Step 4: Implement the Responses (NR) The goal of this step is to ensure that the Planned Responses to risk are done, i.e., both monitored and corrective action taken. The main thing to decide in this step is: 1. Who is going to monitor these Risks? (Risk Owner). 2. Who is going to carry out the planned Risk Responses? (Risk Actionee). The PRINCE2 manual mentions two specific roles which are: Risk Owner and Risk Actionee. • The Risk Owner is responsible for managing and monitoring risks aspects. They can also carry out actions that have been assigned to them. • The Risk Actionee is someone who is assigned to carry out a particular action and they support the Risk Owner. So they are not responsible for monitoring or managing the risk. Let me give you an example to explain this: Let’s say you are working a project and you need to get very specific parts from a supplier in Asia. Currently you have a buffer of one week for these parts to arrive in your company but need someone to monitor this and put the planned response actions into effect if products are going to be late. As a precaution, some of the parts will stay at the factory and can be sent by air freight if there is an issue with the much cheaper shipping service. So you need a person to own this responsibility, monitor it and take ownership. You also need a person to put the Response Plan into action who would arrange the air freight. In this instance, the Manager of the team that will use these products will be the Risk Owner. The Risk Actionee will be a person in the purchasing department who has experience with air freight. Note: The Risk Owner and Risk Actionee could be the same person. 9.15 Step 5: Communicate Communicate is the 5th step in the PRINCE2 Risk Management procedure, but is actually done throughout the whole Risk Management procedure. This communication step ensures that the information related to the threats and opportunities faced by the project are communicated within and outside the project to all necessary stakeholders. How do you think the Project Manager communicates? The existing management report products are used to communicate Risk information, such as: • Checkpoint Reports. • Highlight Reports. • End Stage Reports. • End Project Report. • Lessons reports. And the guidelines for reporting come from the Communication Management Strategy document. How does the Project Manager decide which risk information to communicate? Foundation Q&A Workbook - SAMPLE Management Plaza Risk Theme 75 The Project Manager will ask such questions as, “What has changed since the last report?” as Risk is never static. Think again of the Summary Risk Diagram and that a Risk can move around the diagram or even above or below the Risk threshold line during the project as conditions change. Other less formal methods such as meetings and memos can also be used. 9.16 What is a Risk Budget? A Risk Budget is a sum of money that is put aside just to deal with specific responses to threats or opportunities. It cannot be used for anything else. Certain responses to Risk will require certain actions to be done that cost money; this will be budgeted in the Risk Budget. What can the Risk Budget be used for? The PRINCE2 manual reminds us that this budget is used for responding to risks that occur. It should not be used to fund extra requirements that are introduced in the project or cover the cost of any delays. The Risk Budget has nothing to do with the Change Budget, so it should not be raided if the Change Budget is empty. 9.17 Risk Roles and Responsibilities Role Corp/Programme Executive Responsibilities • Provide the Corporate Risk Management policy and information. • Accountable for all aspects of the Risk Management. • Ensure that a Risk Management Strategy exists. • Ensure Business Case Risks are followed up. • Ensure that Risks to the users are identified, assessed and controlled. • Ensure that risks to the supplier are identified, assessed and controlled. • Create the Risk Management Strategy document. • Create and maintain the Risk Register & Summary Risk Profile. • Ensure that risks are continually identified, assessed and controlled. • Help with the identifying, assessing and controlling risk. • Review the Risk Management practices against the projects Risk. Management Strategy. • Assist the Project Manager in maintaining the projects Risk Register. Senior User Senior Supplier Project Manager Team Manager Project Assurance Project Support 9.18 What you need to know for the Foundation Exam You should: • • • • • Be aware of the definition of risk and know the difference between a threat and an opportunity. Know the recommended responses to threats and opportunities. Know the difference between a risk owner and risk actionee. Be able to recognize the purpose of the risk theme. o to provide an approach to “identify, assess and control uncertainty during a project and as a result, improve the ability of the project to succeed” Understand each step in the recommended risk management procedure: o Identify, Assess (Estimate & Evaluate), Plan responses, Implement Responses and Communicate. Understand the purpose of the risk budget. Understand the terms risk probability, risk impact and risk proximity. Understand the difference between cause, event and effect when expressing risk. Understand the purpose of the Risk Management Strategy and the Risk Register. Understand the concept of risk appetite. Understand the concept of risk tolerance. • • • • • • Foundation Q&A Workbook - SAMPLE Management Plaza Risk Theme 76 Use the Foundation Q&A Workbook to learn more about the types of exam questions to expect. View the video for this PRINCE2 Theme, some videos are public Foundation Q&A Workbook - SAMPLE Management Plaza Examine. You will learn how to prioritize issues and how to track severity. You will learn about the Configuration Management procedure. The Change Theme also describes the roles & responsibilities of the Executive and the Project Board.2 What happens in the real world? One of the biggest issues many Project Managers have is the ability to say no. you will learn about the Roles and Responsibilities relevant to the Change Theme. I have seen a few projects where the Executive was actually the person who was putting the pressure on the Project Manager to allow changes to creep into the project without providing extra resources. So this theme will show you how to deal with these situations. 10. You will learn about the Issue and Change Control Procedure. Other companies provide systems that are very difficult to use and therefore end up not being used. which has these 5 activities: Planning. and providing a central. You then promise to follow up on this Change Request. You will be able to answer the following questions: What is Configuration Management? What is a configuration item? What is an issue? and What are the three types of issues? You will learn about the PRINCE2 approach to change. Most Project Managers are also aware that they have to look after the products produced by the project. which is about looking after the products in the project and Issue & Change Control Management. which has 5 steps: Capture. you never have to say no or yes. The last point before moving on is that most Project Managers don’t plan any time for Configuration Management activities and believe that this is something they can do in the evening or perhaps while on a conference call. then provide them a Change Request form to fill in and offer help if required . there may be a rush to get the project started. This mainly involves tracking changes. letting the requester know that it will be Change Authority/Project Board that will decide on this request. What I like most about the Change Theme is that it shows you that as a Project Manager. depends on the organization. You will learn what the Change Authority does and about the Change Budget. and so the required amount of time is not spent on defining the requirements and Product Descriptions. including securing access to the information. making sure the correct persons have access to the latest versions of baselining documents. Identification. and then the budget is set for the project. this is called Configuration Management. or at least that is what they would like to say when they are asked to add more requirements to the project. The good news is that it is very simple to get an easy-to-use online system that will provide most of the required functionality. It is a very good idea to plan this work. but when requested to add new functionality. Propose. Lastly. accessible storage location. as you may need to remind the Executive of this. Control Change. Status Accounting and Verification and Audit.SAMPLE Management Plaza . you can even thank the person for suggesting this. It can later become apparent that extra functionality has to be added and the Project Manager needs to know how to handle this situation. Some companies provide an easy-to-use documented IT system that makes it easy for the Project Manager to manage.Change 77 10 Change • • • • • • • • • 10. this is useful. which is about handling issues and change requests. Project Managers that say no are not seen as team players and can quickly develop a reputation as being uncooperative. control and distribute project information. Decide and Implement.1 Introduction to Change Knowledge Let us take a look at what will be covered in the Change Theme. You will learn the purpose of the knowledge in the Change Theme – that it covers both Change Management. This of course. Foundation Q&A Workbook . In some projects. You will learn about the Configuration Management Strategy document. Issues can be raised at any time during the project and by anyone. So in a new laptop PC project. assess and control any potential changes to the products that have already been approved and baselined. and helps to ensure that the correct versions are being used during the project and delivered to the customer. i. In fact.g. the objective is not to prevent changes but to get changes agreed and approved before they are executed. 2) Off-Specification. • the laptop itself. or • a release of the laptop with a specific configuration (see Release below). An example of a Release could be a new version of a laptop computer with a certain version build of OS.Change 78 10. Off-Specification definition • This is something that was agreed to be done but is not provided by the supplier and/or not forecast to be provided. This could be a Product Description document for one of the specialist’s products being created by the project. • Example: A stakeholder requests to support a new language.. Foundation Q&A Workbook . and certain versions of applications.3 Purpose of knowledge in the Change Theme The purpose of the knowledge in the Change Theme is to help you identify. You could also say that a Configuration Item is anything that you want to track during the project. Release: A Release is a complete and consistent set of products that are managed. a question or a Change Request). 10. certain CPU. and therefore.e. maintenance and controlled change of the configuration of a product.4 Change Definitions Configuration Management: Configuration Management is the technical and administrative activity concerned with the creation. There are 3 types of Issues. this could be positive or negative. tested and deployed as a single entity to be handed over to users. the Configuration Item could be: • a component of laptop (e. Remember. it is better to say that the Change Theme provides a common approach to Issues and Change Control. assess and control issues that may result in change. 3) Problem/Concern which could also be a question. When is Issue and Change Control done? Issue and Change Control happens during the full lifecycle of the project. This theme provides an approach to Issue and Change Control. Configuration item: A configuration item is the name given to an entity (or item) that is managed by Configuration Management. Change is inevitable in any project and all projects need a good approach to identify. (positive or negative).SAMPLE Management Plaza . This is a nice way of saying that Configuration Management is about looking after products in the project. they are: 1) Request for Change. • Example: The supplier could not complete the automated Forget Password feature. certain BIOS. is out of specification or off-specification. Each project requires a Configuration Management System that tracks products. therefore password will have to be manually reset by the central administrator. cooling fan. a product that has already been approved. Request for Change definition • A proposal for a change to a baselined product. • Example: One member of the team was taken off the project for one week. memory chip). Problem/Concern definition • Definition: Any other issue that the Project Manager needs to resolve or escalate. records when products are approved and baselined. Issues: PRINCE2 uses the term issue to cover any relevant event that has happened that was not planned and that requires some management action (for example. The Change Theme is not just about handling change requests but is also about handling issues that arise during the project. Product Status Account. 5. who has the role of Change Authority?) • Q7: How are issues and changes prioritized? What scale will be used to prioritize issues? • Q8: What scale will be used for severity of issues (e. • Q2: How are Issues and Changes handled? (CEPDI). etc. an issue can be 1) Request for Change.SAMPLE Management Plaza .)? • Q6: Who will be responsible for what? In other words.. changes and Configuration Management. SharePoint. 1 to 4. so they would not always be a risk.g. 2) an Off-Specification. twice a month.g. 5.g. a spreadsheet)? • Q4: What data should be kept for each product (e. low-med-high…)? • Q9: Which management levels will deal with different severity issues? (For instance. 6. Product Status Account: This is a report on the status of products (e. Issue Reports. Issue Register. The Configuration Management Strategy should answer the following questions: • Q1: How should products be identified and controlled? (Configuration Management)..Change 79 10. what will be the Roles & Responsibilities? (For example. The Configuration Management Strategy. classification. The Configuration Management Strategy document is used to establish the project controls and the rest of the documents help to maintain the project controls. Daily Log: This log is used by the Project Manager as a diary for all informal information. Here is a quick introduction of these 6 management products: 1.. 3..). This document contains the strategy on how issues and changes will be handled in the project (e. ISBN number. Foundation Q&A Workbook . PRINCE2 has six management products that are used to control issues. etc. but Severity 3 and 4 have to go to the Change Authority. including location. Issue Report: This report describes an issue in detail. once a week.g. there will usually be a Configuration Management Strategy template available. or 3) problem/concern. 2. • Q3: What tools will be used to help track Issues and Product Information (e. An Issue Report could also describe related issues. Niku Clarity. Daily Log. (For example: The central desk of library would have a card for each book with specific information. The other five management products are: 1. 4. Configuration Items Records. 4. 3. Formal information is placed in a register (Issue or Risk register). 2.5 The PRINCE2 Approach to Change The Issue and Change Management approach will be decided in the first stage (Initiation stage).g. According to PRINCE2.). Shared Drive. Severity 1 issue could go the Project Manager. how to identify products..6 Configuration Management Strategy The Configuration Management Strategy document contains the strategy of how issues and changes will be handled in the project. One of the first questions the Project Manager should ask is: What are the existing standards for Issue and Change Control in the company? If there is a Programme environment in place. Configuration Item Record)? • Q5: How often will the Project Manager consider Issue & Change Control (e.g.. Issue Register: Imagine a spreadsheet to capture and maintain issues (formal). Configuration Items Records: They provide a set of data for each product used in the project (like metadata). list status of all products produced by Supplier X in stage 3). 10. how to control products and how to do status accounting and verification). This approach can be reviewed at the end of each stage in the Managing a Stage Boundary process. Change 80 Like the other 3 strategy documents. then ask how. or they can assign this to other persons. but what about rating the severity of an issue? • Example: You can use a scale of 1-5 or words such as minor.g. The Change Authority will have a change budget. and most of the time they want to say that their request for change is very important. which is more common where few changes are expected. the amount that the Change Authority can spend on each change and other such factors. Let me give you an example. So here are some simple questions to ask that should help you get the correct information from the requester • Must have: Will the end product work if not resolved? (Yes). • Could have: Does it affect the Business Case (No). you can start by saying “Sure. significant. MoSCoW stands for Must have. The change is important and its absence would weaken the Business Case. it may be difficult to explain these four prioritize levels to a requester. What kind of persons can take on this role? This all depends on the size and value of the project. o Severity Normal Project Manager.8 Change Authority and Change Budget The Change Authority is a person or group who consider requests for change and offspecifications. then this will take up too much time from the Project Board and it is better to give the authority to another person or group of persons. Should have: Could have (nice to have): Won’t have for now: However. one of the board.7 How to prioritize issues and track severity There are many ways to prioritize a change request and PRINCE2 introduces the MoSCoW technique to help with this. project out of tolerance). Could have and Won’t have for now. The change is not essential or important. You have senior members of the organization asking for changes and you don’t want to appear as negative or be forced to add something new that will put the project in jeopardy. so they can do it themselves. o Severity Critical Programme Management (e. o Severity Significant Change Authority. So when asked to add something new to the project. It is the responsibility of the Project Board. It is advisable to have a change budget for each project.SAMPLE Management Plaza . Must have: The change is essential for the viability of the project and its absence would affect the project objectives. Priority & Severity So MoSCoW is good for prioritizing. however. o Severity Major Project Board. so it can wait. the Configuration Management Strategy document is created in the Initiation stage by the Project Manager and will be approved by Project Board. I can explain this to you or help you to fill Foundation Q&A Workbook . • You can link a severity level of an issue by linking a severity with a role. the end product may not work as required). Should have. major and critical. So this could be the secretary of the Executive. a financial person or any other competent person. The change is useful but its absence does not weaken the Business Case. the project would still meet its objectives. which is a sum of money that the customer and supplier agree to use to fund the cost of Requests for Change. o Severity Minor Project Support. The Change Control process is a very important tool for the Project Manager. 10. • Won’t have for now Is change essential or important (Yes). If a lot of changes are expected. the change budget. 10. • Should have: Does it affect the Business Case (Yes). (For example. This is our change request process and here is our Change Request form. The Project Board can limit the cost of a single change or the amount to be spent in any one stage. If the issue becomes more serious and requires follow-up action. it is like a diary in a Word document with a number of columns such as Date. Configuration Item Record Project Identifier Item Identifier Current version Item Title Date last changed Owner Location Item type Item attributes Stage Users Status Producer Date Allocated Source Relationship – Items Cross Reference B024 B024-034 V03 Elevator 1 22/01/2009 Maintenance Manager Geldof Street 2. Comment. Stage 3 : Electric Fittings All Approved and in use Next Safety Check 24/10/2009 Otis 05/01/2009 Purchased from Otis All items will Category – Elevator • Lift Shaft (B024-024).Change 81 this in. Configuration Item Records (CIR): The purpose of Configuration Items Records is to provide a set of records that describe the products of a project. Daily Log The Daily Log is used to record informal issues. etc. To the Project Manager. Foundation Q&A Workbook . and Date of Follow-Up if needed. a report on the status of all products that were created by supplier X in stages 3 & 4 or a list of all products connected at a certain location.SAMPLE Management Plaza . or all products created during a stage.9 Management Products used by the Change Theme Here are the Management Products (documents) used by the Change Theme. Person Responsible. Building Architecture Plan Table: Example Configuration Item Record for Elevator Product Status Accounting The purpose of the Product Status Account is to provide information about the status of products. • Elevator Doors (B024-89 to B024-94). a group of products. • Elevator Lighting (B024-724). you may not have too much information or it may not be very serious. • For example. so you decide to enter this into the Daily Log. This can be a report on one product. or a stakeholder has asked you to resend the information. then it can be inserted in the Issue Register. notes.. Example: A stakeholder sent an email saying they would like to sit in a Quality Review meeting for a specific product. Here is an example of a CIR for an Elevator product in a new apartment building project. Here is an example of the type of data you would store: When you first hear of an issue. 1050 Brussels Elevator • Elevator Computer (B024-634). that are not captured in other project documents at that time. • Electric System (B024-104).” You can then pass the Change Request to the Change Authority and you never have to say no and can appear as helpful at all times. 10. The best way to explain this is by using the example of a library card that will provide metadata for each book in the library or the MP3 TAG information for a song file. Green K Green K Green K Green Status Granted Open Closed Priority Med Med High Target Date Closed Date 124 Request 125 Off-Spec 126 Problem 03/01/2009 Different Evelvator Display. which could be: (1) Request for Change. what products? e. • Keep the Daily Log open on your PC.Change 82 Project Name Project No. It can then be updated again after the issue has been examined. distribution copies etc. Green L. It is about looking after the Project Products. Issue Type (Request For Change. The report is usually created (first information is added) when the issue is first registered in the Risk Register.Specification or (3) A Problem/Concern It also contains an impact assessment of the issue(s). solutions proposed. Raised By. as it is easier to sort via target date so you know what to follow up on next. James Fig: 10. PRINCE2 suggests the following 5 activities to follow: Start of the Project 1) Planning: 2) Identification: To what level will we do CM – how low. See this as a spreadsheet with a number of columns like Issue Identifier.. 5) Verification & Audit: Are products in line with CIR documents? Foundation Q&A Workbook . Status and Closure Date. easier to see in day light 07/01/2009 Supplier did not fit correct Extractors in Kitchens 14/01/2009 Roof Insulaiton . Type Date raised Description Resolution Cost €500 0 0 Raised by Issue Owner K.1 Daily Log Example Using the Daily Log: Tips • Use Excel. Description. During the Project 3) Control: Activities such as baselining. Basic information can be added like Identifier. Off-Specification or Concern).2 Issue Register Example Issue Reports An Issue Report is a description of one or more issues. (2) Off. archiving. Coding system? (project-product-owner-version-date). Priority. Project Manager Project Executive Date 03/01/09 04/01/09 04/01/09 Apartment – B04 B024 P.SAMPLE Management Plaza . James G. Issue Register The purpose of the Issue Register is to capture and maintain issue information (issues that must be handled formally). Comment Got a call from supplier to confirm delivery of item B024-034 Work Package 056 may be late. and a solution chosen. Egan K. Murphy K. Owens Daily Log Person Responsible P.10 The Configuration Management Procedure What is Configuration Management? Configuration Management is a collection of all the activities that maintain and control changes for each product throughout the lifecycle of the project and after the project is completed. so it is easy to add new information and check if you have any tasks to complete for that day. Action. Severity. Cooper Target Date Closed 05/01/09 08/01/09 Results Confirmed by email (see Sent Folder) Check progress Plan & Prepare meeting Problem. Issue Type. Date on Which Issue Was Raised. 10. Issue No. 4) Status Accounting: Check up and report on a group of products. Date on Which it Was Raised and Raised By.g.May be a problem getting delivery 04/02/2009 06/02/2009 25/03/2009 20/01/2009 20/01/2009 Fig 10. this affects WP 67 & 69 Stakeholder: City requests meeting in the next month P. • The purchasing manager may have received an invoice from Supplier X and will ask you. 10. Status=In Library. Version. 10.2 Identification: What happens in Identification? Decide how to identify each product uniquely in the project (decide on a coding system). user documentation E. processes. 100-person customer event project. but it is good to know that this activity exists and can be used if required.10.3 Control or Control Changes: What happens in Control? Control is about controlling changes that are made to products during the project.g. speaker notes.SAMPLE Management Plaza . a CRM Project: You may wish to look after the following documents: • Main product.Change 83 --.Start of the Project --- 10. catering information.4 Status Accounting: What happens in Status Accounting? This is something that you may never have done or seen in a project. 045-FT-v04-20112304. Last update.During the Project --- 10.pdf --.1 Planning: What happens in planning? Decide which documents and products you want to control. the Project Manager.g. handouts. Current status.10. as once a product is approved “nothing moves and nothing changes without authorization”. for the status on all products by that supplier in Stage 3. <Product Code> <Initials of Owner> < version number> <Latest Modified number> E. archiving and other such activities for both management and specialist products. Current Status=Show Status Status Accounting is the reporting of all current and historical data for each product using the Product Status Account report format. Stage Produced=3. o Query: Provider=Supplier X. all major components. For example: Do certain users have access to the correct product versions? Are products where they are supposed to be? Have they the correct identification numbers? Are the products secured? Foundation Q&A Workbook . venue contracts. related items.10. Date of next baseline. Tip: Think about a recent project that you have worked on and how you controlled access to documents and prevented other users from making changes to agreed documents. so what do you think is important? E. Owner.10. This is very much related to the data that is stored in the CIR documents which have the following fields: • • Identifier.g. 10. etc.5 Verification and Audit: What happens in Verification & Audit? This is to verify that products are in line with the data in the Configuration Item Records. Control also deals with the storing and distribution of copies. Date=1940 to 1947.10. Baselined products are also used to compare the current situation with the previous objectives. o Query: Author=George Orwell. access control. etc… Let me give you two examples of a Status Account • The Librarian may ask for a report from the computer system. design. List of users. you may want to look after: • Invites lists. formal. options.Provide Guidance .12 Dealing with Project Issues The following diagram gives a good overview of how the three types of issues are dealt with. • The Change Authority will decide on the change.Change 84 10. 10. Tip: CEPDI • • • • • Capture: Examine: Propose: Decide: Implement: Determine type of issue. Decide and Implement. • Changes are escalated to the level above.SAMPLE Management Plaza Project Manager Problem/Concern Check Priority Project Board.Ask for Exception Plan Issue Register (Formal Issues) Daily Log (Informal issues) Based on OGC PRINCE2® material.CIR Update plan . Someone decides whether to approve. Change Authority team. priority. Examine. Stage Plan Off-Specification Project Manager Project Manager Project Manager Recommend .Reject .Defer decision .On Six Variables Check Severity Propose Identif y options . reject… the recommended solution. Decide and Implement (CEPDI). it could state that the Project Manager can decide on issues that cost less than €500 and only affect one product. Assess the impact of the issue on the project objectives. etc. which could be requests for change. This can be the Project Board. Propose. Propose. Issue: Problem / Concern (Other) Foundation Q&A Workbook . data can be stored in the Daily Log. Reproduced under license from OGC Fig 10.Request more info .one option Severity/priority? Log or Register Off-Specification .Assign Work Package Update records .Grant a concession .Request more info . • At the bottom.g.Approve . Change Authority. There are 5 steps to Issue and Change Management: Capture.11 Issue and Change Control Procedure Issue and Change Control is about dealing with issues.). Issue Register and Issue Report. or Project Manager (see below for more information). Examine. The Project Manager can make certain decisions provided the Stage stays within tolerance and this has been agreed up front in the Configuration Management Strategy.Instruct it be resolved . Use Issue Reports to create Exception Report Use Issue Reports to request advise Issue Report (report on each issue or group of issues) Capture Issue type? Examine Assess impact . (For example. PM Request for Change . Issue: Request for Change • A Change Request form (Issue Report with status Change Request) will be filled in (description.so identify the options.Issue Register .Defer decision .3 The Issue and Change Control procedure Look at the above diagram and notice the following • The relationship between Capture. Put the recommended solution in action (taking corrective action). informal.Ask for Exception Plan . offspecification and concerns/problems (other).describe options Decide Request for Change Implement Take corrective action .to deal with issue Evaluate options . Propose actions to take .Ask for Exception Plan Problem / Concern . type? (3 types). • The Change Authority will decide on how to deal with this off-specification.e. evaluate and recommend. recommended options. costs. Issue: Off-Specification • Issue Report will be filled in detailing the off-specification. Senior User Senior Supplier Project Manager Team Manager Project Assurance Project Support Foundation Q&A Workbook . • Determine the Change Authority and change budget. • Respond to requests for advice from the Project Manager. • Administer Configuration Management (look after the Project Products). • Manage the Configuration Management procedure.13 Change & Config. • Set scale for severity rating. The Project Manager can handle these issues if within their tolerance. and check that the procedures in the Configuration Management Strategy are being followed. • Make decisions on escalated issues from the Project Manager. • Create and maintain the Issue Register and Implement corrective actions. 1-5 or low. • Respond to requests for advice from the PM during the project. • Implement corrective actions that were assigned by the Project Manager.g. priority ratings (e. • Manage the issues and change control procedure. • Do the administrative tasks for the Issue and Change Control procedures. Request for Change Issue Report (Change Authority) PM may decide on small changes So the PM has some Change Authority Project Board Approve Reject Defer decision Request more info Ask for Exception Plan New Issue OffSpecification Out of specification with Product Description Issue Report (Change Authority) PM may decide if with tolerance Project Board Grant a concession Instruct it be resolved Defer decision Request more info Ask for Exception Plan Problem / Concern Issue Report Project Board Provide Guidance Ask for Exception Plan PM may also be able to handle issue Fig 10. issue resolution and Configuration Management.4 Dealing with Issues (3 types) 10. • Provide advice on examining and resolving issues. issues.. • Make decisions on issues that are escalated by the Project Manager. • Maintain the Configuration Items Records for the products.Change 85 • • These are other issues which can of course be positive or negative. or ask for guidance if they bring the stage out of tolerance.SAMPLE Management Plaza . Management Roles and Responsibilities Role Corp/Programme Executive Responsibilities • Provide the corporate or Programme strategy for change control. high). o Initation Stage: 1) Planning.Change 86 10. Issue Report. Issue Register. Examine. 2) Identification o During the project: 3) Control. Be able to recognize the purpose of the Change theme. Be able to recognize the steps in Issue and Change Control procedure (CEPDI).14 What you need to know for the Foundation Exam You should: • • • • • • Know the three types of issues. View the video for this PRINCE2 Theme. some videos are public Foundation Q&A Workbook . Configuration Item Record. Be able to recognize the five activities in Configuration Management. Propose. Know the purpose of the Configuration Management Strategy. 4) Status 5) Accounting and Verification and Audit. and Product Status Account. Use the Foundation Q&A Workbook to learn more about the types of exam questions to expect. Decide and Implement (just remember CEPDI). Know the purpose of the Change budget.SAMPLE Management Plaza . o Capture. thus. You will learn: • The purpose of Progress has 3 parts 1) Check the progress of the project compared to the plan. You will find this chapter on PRINCE2 easy to read and understand. as they may work in a “shoot the messenger” environment or work for a Project Board that does not understand their role.SAMPLE Management Plaza . The 3 Project Controls used by the Project Board and Project Manager. 2) Check project viability. end up firefighting and not managing the project (very dangerous). changes and risks. • Feel responsible for issues that arise and they try to solve them and. And lastly. • Constantly check the current progress compared to the current plan. Each company and Project Manager will have different ideas on how best to do this.Progress 87 11 Progress 11. I believe the most important points that a Project Manager has to keep in mind are: • The format of reports used to provide information to the Project Board.2 What happens in the real world? Progress is all about how to control the project and know where you are against the current plan. 3) Control any deviations. • How to check that the Business Case is still valid etc. Definitions for Progress. If you are Project Manager in a company the one good question to ask your Project Board is “How do I best keep you informed of the progress of the project?" The answer to this question will tell you a lot about the maturity of project control in the organization. Why Management Stages are used by the Project Board as controls. Most poor Project Managers make the following mistakes • Don’t have a good system in place to track progress. • How best to keep track of issues. The PRINCE2 approach to Progress. The last point I would like to make is that the Project Manager should make sure they have time during the project to manage progress and control the project. The four levels of authority in the Project Organization and 3 levels in the Project Team. • • • • • • • • • • 11. Daily Log and Issue Register? How the Lessons Log and the Lesson Report are used from a Progress point of view. What are technical stages? How do they differ from Management Stages? and How it is possible to manage Technical Stages from Management Stages? How does the Project Manager review progress? How do they use the different management products such as the Checkpoint Reports. • Are afraid to escalate issues.1 Introduction Let us take a look at what you will learn in this Progress theme. The three reports used by the Project Manager to report progress to the Project Board. and you will also learn how tolerances are used to help each management layer manage the layer below. the Progress Roles and Responsibilities. Foundation Q&A Workbook . Progress Controls and Exceptions and Tolerances. This is a more efficient use of the Project Boards time. What are Exceptions and Tolerances? An Exception is a situation where it can be forecast that there will be a deviation beyond the agreed tolerance levels. with a tolerance of ±1 month.4 Progress.SAMPLE Management Plaza . the Project Manager would deal with this and not escalate it. the Project Manager would escalate each issue to the Project Board and they would end up working on the project 8 hours a day and therefore would be doing a lot of work or all the work for the Project Manager. Tolerance levels could also be set for all six tolerance areas. Review plans with forecast. If the project is forecast to be 1 week late. The layer above can do the following: • • • • • Monitor actual progress against plans. For example. Stage Plan and Work Package. To be able to control any unacceptable deviations. Benefits and Risk. Exceptions and Tolerances What is Progress? Progress is checking and controlling where you are compared to the plan. 11. Scope. Detect problems and identify risks. Remember the Project Board are busy people and we don't want the project to take up much of their time.e. This is done for the Project Plan. To provide a forecast for the project objectives and the project's continued viability. To establish how to monitor and then compare actual achievements against those planned during the project. Foundation Q&A Workbook . Authorize further work to be done. 2. Quality. Tolerances are used to manage the level below. Progress Controls. But if the project is forecast to be two months late. Initiate corrective action to fix issues (the Project Board will give advice).. Cost. Principles represented in the Progress Theme Three of the seven principles are represented in the Progress Theme. checking project viability and controlling any deviations. Continually checking that the project is still worth doing.Progress 88 11. 3. the Project Board wants to monitor the progress of Project Manager or Project Manager wants to monitor the progress of the Teams that create the products. These are also known as the project variables. Tolerance Example: A 6-month project with a tolerance of ±1 months. Time. Example: The Project Board can authorize a next stage and a Project Manager can authorize a new Work Package. i. they are: 1.3 Purpose of the information in the Progress Theme The purpose of the information in the Progress Theme can be explained in three parts: 1. 2. the project should take 6 months. Manage by stages: Continued business justification: Managed by Exception: The Project Board uses stages as a control point. Setting tolerances allows the Project Manager to handle smaller issues and only bother the Project Board for bigger issues (more efficient use of time for Project Board). Question: What do you think would be the result if Tolerances were not used in a project between the Project Board and the Project Manager levels? Answer: In that case. 3. For instance. What are Progress Controls? Progress Controls are used by one layer to monitor the progress of the layer below it. Tolerances are the deviation above and below a plan’s target. Progress is about checking progress compared to the plan. then they would escalate it to the Project Board. Progress 89 11. Delegating Authority from one level to the next: Here I will discuss how each level monitors the level below.SAMPLE Management Plaza . then the Project Board has to escalate this to Corporate and Programme Management.1 Delegating Tolerance and reporting progress The Project Board • The Project Board sets the tolerances for the stages. then escalate to Corp/Programme Management. Dividing the project into management stages and authorizing one stage at a time. Scope. If this exception affects the project’s tolerance.. 3. Delegating Authority from one level to the next (e. PRINCE2 provides control through four main ways: 1. Highlight Reports) 4. Cost. Reproduced under license from OGC Fig 11. Quality..Delegating Tolerance and reporting progress. Raising Exceptions: Use exceptions to alert above layer if a big issue occurs (out of tolerance) How these controls will be used in the project is decided early in the project and documented in the Project Initiation Documentation under the Progress heading. • Foundation Q&A Workbook . Therefore the Project Manager will escalate issues as soon as it is identified that they will go out of tolerance on any of the project tolerance targets. Fig 11.2 . • Tip: Remember the Project Tolerances are set by Corporate or Programme Management.5 What is the PRINCE2 Approach to Progress? Progress is about checking actual progress against the performance targets of Time.g. They set the overall requirements and tolerance levels for the project (they set the project tolerances) • If project tolerances are exceeded. Time-driven and event-driven progress reports (e. from Project Board-Project Manager) 2. Corporate or Programme Management • The Corporate or Programme Management is outside the project.g. Benefits and Risk. This is shown in the following simple drawing. Corporate or Programme Management Project tolerances Direction Layer Project progress Project exceptions Project Board Stage tolerances Management Layer Stage progress Stage exceptions Project Manager Work Package tolerances Delivery Layer Work Package progress Work Package issues Team Manager Based on OGC PRINCE2® material. 11. 11. • 3rd Authorize each stage: • And lastly. nd • 2 Authorize the project: The Project Initiation Documentation is approved so that the first stage of the project can start after the initiation stage. 3. • The Highlight Reports are sent regularly from the Project Manager to the Project Board during the Controlling a Stage process.e.7 What are the 3 Project Manager Controls? These have the same names as the Project Board but are at the level of the Project Manager. The three controls are: (1) Authorizations. Exceptions & Changes: They can receive Exception Reports and Issue Reports. and (3) Exception & Change. allowing the Project Board to control the next move. Foundation Q&A Workbook . The Team Manager • The Team Manager has control for a Work Package and works within the tolerances agreed with the Project Manager. 2) Progress Updates: • They receive Checkpoint Reports from the Team Manager or Team Members. • Exception Reports advise the Project Board that the stage is out of tolerance.. they can authorize next stage to start. This happens after each SB process. They provide information on how well the stage is running according to the Stage Plan.SAMPLE Management Plaza . • This includes Highlight Reports and End Stage Reports. 2. • They will also review the End Project Report before they authorize project closure. • This includes Exception Reports and Issue Reports. It is very easy to see the authorizations.Progress 90 The Project Manager • The Project Managers have day-to-day control over the stage and they work within the tolerances set by the Project Board. • They also set and agree to the tolerances in the Work Packages. • Issue Reports provide a way to gather information on an issue (request for change. 1. Authorizations: i. an OffSpecification or a problem/concern) and send it to the Project Board. Authorizations • Look at the Process Model Diagram. • 1st Authorize Initiation: To allow the Initiation stage to start and to create the PID.6 What are the 3 Project Board Controls? The Project Board has three main controls available to them to manage the levels below. Progress Updates: They get regular reports from the Project Manager. (2) Progress Updates. 1) Authorizations: • The Project Manager authorizes Work Packages to the Team Manager (CS process). Exceptions and Changes are the 3rd type of control for the Project Board. 3) Exceptions and Changes: • They use the project registers and logs to review progress and identify issues that may need to be resolved. • Changes will be handled through the Issue and Change Control procedure. authorize project closure. Progress Updates are the 2nd type of control for the Project Board. 8 Use of Management Stages for Control Why are Management Stages used as controls by the Project Board? Management stages are partitions of the project with decisions points for the Project Board between each stage. Also. who is responsible for what. The planning horizon at any point in the project (i. How confident are the Project Board and Project Manager at proceeding? (For instance. The level of risk and complexity. Design Product). How to decide the number of stages? This depends on a number of items and as you can see. If there is less risk and complexity and you have done a similar project before. 2.. As you can see. then stages could be much longer. • One Delivery stage: At least one other stage to produce the products. if this is a similar project with minor changes. 5. The rest of the time will be creating the products in the 2nd stage. The best way to understand this is to look at how they differ from Management Stages. then they would be very confident. stages are important for the Project Board. Minimum stages in a Project? The minimum number of stages in a project is two: • The Initiation Stage: To define and agree what needs to be done. PRINCE2 mentions the following points to consider when deciding the length of stage: 1. How far ahead is it sensible to plan? (I know one IT development company that does not like to plan any more than 6 weeks ahead if they are working on new applications). you may spend one hour the first morning deciding what will be done. with the help of tolerance. So even for a 2-day project.SAMPLE Management Plaza .. • Technical stages are usually linked to skills (e. 11. How far can you safely plan ahead?). and other such details. Why are Management Stages important for the Project Board? • They provide review and decision points at the end of each stage and before the next stage. • A technical stage can span a management stage boundary.Progress 91 11. 2. the Project Board can give the day-to-day authority of running the stage to the Project Manager. • Then can check project progress compared with the Project Plan at the end of each stage. then it is best to keep the stages short. 3. If there is a lot of risk and complexity.9 What are Technical Stages? Technical stages are how most companies and teams work. The amount of risk in a project. (If similar to another project. Think of the control required by the Project Board. while Management Stages are focused on business justification and authority). 3.) How long should a stage be in PRINCE2? The main consideration is the level of risk or complexity. Where do key decision points have to be made in the project? (Example: Maybe after creating a prototype or after completion of a major part of the product). how you are going to do it. • They can check the viability of the project. it’s a bit of a balancing act. Do they require little or lots of control? Decide between too many short management stages compared to few lengthy management stages. • They review the End Stage Report of the last stage and Review plan for next stage. and use the following diagrams: • Technical stages can overlap. The Technical Stages within a project. • They can authorize one stage at a time or choose to stop the project. but management stages do not. Start by considering the following: 1. A management stage is a collection of activities to produce products and is managed by the Project Manager. 4. Requirements Analyses.e.g. Foundation Q&A Workbook . then there will be less risk). 3 Technical Stages & Management Stages This diagram shows that technical stages appear to be broken up so they fit in the management stages. time-driven controls don't have to wait for an event to happen. The Project Manager will have a Product Description for both version 1 and version 2 so they can check if the product was delivered as expected in the specific stage. Two popular exam questions: Question: In which management document is the Highlight Report frequency first mentioned?” Answer: It is stated in the Communication Management Strategy. Risks. Requirements Risks Prototype Test Prototype Development Testing Training Fig 11. the Technical Stages overlap each other and there is no mention of management stages in this diagram. etc….2 Technical Stages • • These are the Technical Stages (Requirements. in fact the Project Manager will just ask the Team Managers to define their work in terms of what they expect to do in the management stages. Exception Report and Issue Report. v1 Test Report Dev. Draft v1 High level + Lessons Version 1 Req.Progress 92 There are 2 diagrams below to help explain the difference between Technical and Management Stages. Test Report Training Doc v1 Fig 11.) As you can see. See the diagram Technical and Management Stages. in other words when an event happens in the project – for instance. at the end of project and change request. Functionality 1 Doc Tests (Plan) Create End 2 End tests Requirements v1 Dev Rest + Final Release Doc Tests. Time-driven controls take place at pre-defined periodic intervals. 11. For example. Req. e. Testing. Event-driven controls take place when something happens. the Project Board will agree with the Project Manager to send a Highlight Report every 2 weeks to the Project Board. And so. and the Project Manager can agree with the Team Manager to send a Checkpoint Report each week. at complementation of the PID. All of these events produce documents like an End Stage Report.g. Question: Can the Project Board change the frequency of time-driven reports for a new stage?” Foundation Q&A Workbook .SAMPLE Management Plaza . written in the Initiation Stage. as you will need to look at this diagram to understand the rest of this topic. at the end of a stage. when a stage goes out of tolerance. Note: Technical stages are not broken up.10 Event-Driven and Time-Driven Controls All controls can be divided into two parts in PRINCE2: Event-Driven and Time-Driven. Draft v2 Detailed Risks Register Version 2 Req. Develop Prototype is split into two separate products (version 1 and version 2). In consultation with the Senior User -. Foundation Q&A Workbook . + Proof of Acceptance Updated Benef its Review Plan Business Case Project Plan CIR docs (cmdb) Project Controls PMT .Once per Work Package -. etc. the Project Manager will hand out work in Work Packages to Team Managers (or directly to the Team Members in the case of a small project).)? Answer: The Project Manager uses the Daily Log. Question: What two management products do you think the Project Manager uses to check how the Work Packages are processing (and. I think the best way to show how the Project Manager reviews progress is to use the following diagram (The PRINCE2 Product Map).g. issues.. therefore.) The Daily Log acts like a Daily Journal for the Project Manager. Rpts Controlling a Stage Updated CS: Risk Register CS: Issue Register CS: Lessons Log CS: Daily Log CS: CIR Next Stage Plan or Exception Plan Stage Boundary: Updated Business Case Project Plan Draf t Closure Not.Many per Work Package Product Delivery: Created Checkpoint Reports Team Plan Quality Register Updated Closing a Project CP is the last part of the last stage Closing a Project Pre-Project Initiation – 1st Stage Delivery Stages : Controlling a Stage & Stage Boundary Fig 11.Approach -. and then ask questions based on this diagram. Issue Registers Assists with Planning Work Packages Delivery Team Manager * ** -. 11.com Version 1.Created or updated many times during a stage -.PMT Business Case Strategy: Communication Configuration Quality & Risk Stage Boundary: Created End Stage Rpt Controlling a Stage Created Created End Project Rpt Follow on Actions Lessons Report Project Brief Management Project Manager IS Plan Lessons Log Daily Log PBS PDs PFD Project Plan * * P I D CS: Highlight CS: Issue/Exp. reminders. where do they keep informal notes.11 How does the Project Manager review progress? The Project Manager does most of their reviewing in the Controlling a Stage (more about this later).2c Corp.. Issue Register. quality progress. as it shows when the management products are created and updated. Pre-Project Initiation – 1st Stage Delivery Stages : Controlling a Stage & Stage Boundary Closing a Project by Frank Turley Management-Plaza.Created or updated once per stage -. Project mandate Corporate or Programme Management Directing a Project Authorize initiation Authorize the project Authorize a Stage or Exception Plan Give ad hoc direction Direction Project Board Auth.Team Manager is responsible with the PM -. meetings. check on product status. Question: What do you think the Project Manager uses the Daily Log for? Answer: This is the place to record any informal information about the project (e.Outline BC -. yes. Quality. small issues. news. Product Status Account.4 When are the management documents created and updated? Monitoring Work Packages and Teams During the Controlling a Stage process. telephone calls. tolerance levels and other such information. Quality Register and Risk Register. the stage)? Answer: They use the Checkpoint Reports (from the Team Manager) and they use the Quality Register to see that the Quality responsible persons have signed off on the products. observations. Question: Which Management Products does the Project Manager use to keep track of how the project is doing (e. and normally they would advise the Project Manager to change the frequency during the Stage Boundary process and before approving the next Stage Plan. project closure -. risk.PPD ** -.SAMPLE Management Plaza .g. The Quality Register acts as an important check (assurance) for the Project Manager.Roles Benef its Review Plan Starting Up A Project Risk..Progress 93 Answer: For the Project Manager.Created once during project (can be updated) -. Information on the progress of the work done compared to the agreed Team Plan is also included in it. A Lessons Learned report has to be created at the end of the project during the Closing a Project process. These include how best to communicate. Lessons Report: The Lessons Learned report is used to document lessons that might be of value to future projects. 2. Lessons have to be sought. Off-Specification: This happens when the supplier may not be able to complete something exactly as described in the Product Description. which could be: 1. 11. The Highlight Report allows the Project Board to manage by exception between each stage end. Scope. for example. Lessons can be about anything that could help the project.13 Reports used to Report Progress Checkpoint Reports The Team Manager uses the Checkpoint Report to report to the Project Manager.12 Capturing and reporting lessons One of the principles in PRINCE2 is that the project team must learn from experience. Any useful experiences are then recorded into a Lessons Log.to 2-page report should be sufficient. Cost. The Project Manager continues to add new lessons to the Lesson Log during the project. Foundation Q&A Workbook . or the cost of a major component we need for the project has increased or decreased in price by 50%). how to deal with a supplier. The important word here is ‘highlight’ as a 1. The End Stage Report The End Stage Report is created by the Project Manager towards the end of the stage and compares the performance of the stage compared to the Stage Plan. as they are aware of the tolerances agreed with the Project Manager in the Stage Plan. so the Highlight Report should report the current status of tolerances of Time. How the Project Manager uses the Quality Register to check progress The Quality Register is a record of all planned and executed Quality activities. Problems and Concerns: This is the place to note any other comments.Progress 94 How the Issue Register is used by the Project Manager The Issue Register contains all formal issues raised during the project. how certain documents should be tailored for this kind of project and which product specialists to get help from when doing the product breakdown structure. The Highlight Report The Highlight Report is used by the Project Manager to report on the status of the current stage compared to the Stage Plan. a Lessons Learned report might be created during the project. In larger projects. Benefits and Risk. recorded and executed during the project. Tip: Think of tip of an iceberg. problems and concerns. during the Managing a Stage Boundary process. Therefore the Project Manager can see if all planned Quality activities are in line with the plan and if results are as expected. (For example.SAMPLE Management Plaza . there is a train strike on the same day as our expected demonstration for the major stakeholders. 3. PRINCE2 uses the word “sought” to ensure that everyone in the project checks for previous lessons. Request for Change: This happens when the clients notice something that was not in the original requirement but now wants this included (so it becomes a Request for Change). 11. The Project Manager will agree on the frequency for these reports with the Team Manager when they are accepting the Work Package. Quality. or if a number of products are failing quality tests. The End Project Report The End Project Report is produced by the Project Manager towards the end of the project during the Closing a Project process and is used by the Project Board to evaluate the project before they take the decision to authorize closure. SAMPLE Management Plaza . • Ensures that progress remains consistent from their point of view. Exception Report. Senior User Senior Supplier Project Manager Team Manager Project Assurance Project Support 11. • Makes decisions on the stage Exception Plans. Use the Foundation Q&A Workbook to learn more about the types of exam questions to expect. some videos are public Foundation Q&A Workbook . • Provides stage tolerances. how many). • Understand the difference between management stages and technical stages. i.e. Highlight Report. End Project Report and Lessons Report. End Stage. Lessons and End Project Reports. Produces Reports: Highlight. Produces Exception Reports / Exception Plans for the Project Board. Risk Register and Quality Register. • Know the difference between event-driven and time-driven controls. • Ensuring that progress remains consistent from a business point of view.. • Recognize the purpose of the progress theme. You raise an exception by alerting the level above you.1).16 What you need to know for the Foundation Exam You should: • Know the lines of authority between the four levels of management (Fig 11. • • • • • • • • • • Authorizes Work Packages and monitors progress of Stage Plans. • Know the progress reporting between the four levels of management.” The best way to explain this is with a question. • Understand the purpose of End Stage Report. The Project Manager raises an exception if they forecast to go out of Stage tolerance. Work Package. Maintains Issue Register. • Understand the purpose of the Checkpoint Report. • • • The Team Manager raises an issue if they forecast to go out of Work Package tolerance. • Understand the purpose of the Daily Log.Progress 95 11. • Understand the concept of management stages. Produces Checkpoint Reports. • Make decisions on the project Exception Plans. Verifies the Business Case against external events and project progress. • Recognize some factors to consider in identifying management stages (length. 11. Lessons Log. “When is an exception raised and by whom?” An exception is raised when an agreed tolerance is exceeded or is forecast to be exceeded.14 What is Raising Exceptions? This is quite easy to understand and it is linked to the principle “Manage by Exception. Assures stage and project progress (double check). Escalates if any forecasted deviation from the Work Package tolerances. View the video for this PRINCE2 Theme. The Project Board raises an exception if they forecast to go out of Project tolerance. Maintains the project registers and logs. • Know how tolerances are set and exceptions reported. Assists with the compilation of reports.15 Progress Roles and Responsibilities Role Corp/Programme Executive Responsibilities • Provide the project tolerances in the project mandate. Managing a Stage Boundary. you can answer all of the process-related questions in the PRINCE2 exams. 3. Directing a Project.SAMPLE Management Plaza .2 The PRINCE2 Processes A process is a structured set of activities designed to accomplish a specific objective. This will still give you a good. In this chapter. as this will make it much easier to understand the following chapters. a PRINCE2 process takes one or more inputs. There are 7 processes that guide you through the project. manage and deliver a project. 7. The Mgmt Product Map also helps you to understand most of the themes much better. clear understanding of the processes. where these are created. Our approach for this foundation manual is as follows: • Provide much more information in the Introduction to processes than in the official PRINCE2 manual. Managing Product Delivery. • The final delivery stage and what happens here when closing the project. who creates the management products. 6. and each provides a set of activities. PRINCE2 has activities for Starting Up a Project. Controlling a Stage. Initiating a Project. • Provide less than 20% of the information in the seven process chapters as in the official PRINCE2 manual. • Introduction to the PRINCE2 Process Model. • What happens in the Initiating a Project process (inputs and outputs)? • What the next stages in the project are. as well as which can be repeated in a project. you will learn: • What a process is and what a PRINCE2 process is. as you can see when management products are created and updated. These activities help to direct. PRINCE2 is a process-based approach for project management.3 Two Process Diagrams It is important that you have an overview of how the processes work with each other. Foundation Q&A Workbook . and prepare you for the exam. etc. Starting Up a Project. 4. Actually. 2. 12. how the outputs from one process are the inputs to another. cover the foundation syllabus. We therefore created the diagrams: 1) The PRINCE2 Process Model Diagram. Closing a Project. which processes are done once. and many others. 2) The PRINCE2 Product Map. The 7 PRINCE2 process are: 1. acts on them. if you understand these diagrams alone. Like any process. • Introduction to the 7 processes.Introduction to Processes 96 12 Introduction to Processes 12. • We use process input/output diagrams to make it easier to understand each process. and provides defined outputs. and are described in the PRINCE2 manual. running a project. It groups these into processes. 12. 5.1 Introduction to Processes Let’s take a look at what you will learn in the introduction to processes. so the project can be compared with the original Project Plan to see how well the project performed. Lessons Rpt Draft Closure Notification Close . project closure Project Init Doc Req. • The Business Case is then updated in the Managing a Stage Boundary process. • The Business Case is completed and baselined in the Initiating a Project process.Introduction to Processes 97 Corp. as it provides an excellent high-level overview of a project and shows how all the processes relate to each other and how the outputs from one process are the inputs to another.6 Pre-Project Initiation Stages . Learning the processes one by one will make it hard for you to see how they relate to each other and therefore harder to learn PRINCE2. so it gives an excellent overview of both the processes and themes.Management Product Premature Close Auth. • The Project Plan is created and baselined in the Initiating a Project process. The Process Model overview in the PRINCE2 manual is very short. it will take you just an hour to watch. Foundation Q&A Workbook . This book is also available in Audio and Flash (animated) formats. To Initiate Project Starts Advice End Stage Report Next Stage Plan or Exception Plan Controlling a Stage (CS) Work Package Work Package Closing a project (CP) Work Package Completed WP Managing Product Delivery (MP) Products get created & quality checked MP Outputs Team Plans Checkpoint Reports Quality Register Completed WP Version 1.Authorization Mgmt Prod -. End Project Report FAR. I suggest that you browse over our free “The PRINCE2 Process Model” book.Notification Auth.SAMPLE Management Plaza Closure Recommend. • The Project Plan gets a final update in the Closing a Project process. to Initiate a Project (Issue / Change & Risk) Authorize stage Exception Report Highlight Reports Project Brief + IS Plan Management Project Manager (SB) Managing a Stage Boundary Next Stage Plan Initiating a Project (IP) Delivery Team Manager -. project mandate Corporate or Programme Management Initiation Notification Project Notification Closure Notification close soon Direction Project Board Directing a Project (DP) Starting up a Project (SU) Authorize initiation Authorize the project Authorize a Stage or Exception Plan Give ad hoc direction Auth.Execution Fig 12.1 The PRINCE2 Process Model Diagram The PRINCE2 Process Model Diagram I believe that the Process Model is the best way to start learning about PRINCE2. • The Business Case gets a final update in the Closing a Project process..Once during project -.Once per stage -. Deliver Project? Authorize Project Approved PID Req. The PRINCE2 Product Map This diagram from Management Plaza shows when most management documents are created and updated. -. The Business Case Theme • The outline Business Case is created in the Pre-Project (SU) process.Once per Work Package Notification -. It covers the Process Model in much more detail than in the PRINCE2 manual. • The Project Plan is then updated in the Stage Boundary process (show actuals).Many times during stage -. The Plans Theme • The Project Product Description (PPD) in the Pre-Project (SU) process. Created or updated once per stage -. project closure -.Many per Work Package Product Delivery: Created Checkpoint Reports Team Plan Quality Register Updated Closing a Project CP is the last part of the last stage Closing a Project Pre-Project Initiation – 1st Stage Delivery Stages : Controlling a Stage & Stage Boundary Fig 12. This is why we say that the project mandate is the Trigger for the project.2c Corp.Created once during project (can be updated) -. Rpts Controlling a Stage Updated CS: Risk Register CS: Issue Register CS: Lessons Log CS: Daily Log CS: CIR Next Stage Plan or Exception Plan Stage Boundary: Updated Business Case Project Plan Draf t Closure Not. risk analysis and commitment of resources. This idea or need is the trigger for the project.e. The Project Board reviews the Project Brief and decides whether to initiate the project.g.In consultation with the Senior User -. This is the first decision that the Project Board takes. After this process is complete. The project mandate is expanded to a Project Brief. including the Project Plan. • Foundation Q&A Workbook . A project mandate can be a simple onepage note. Someone.PMT Business Case Strategy: Communication Configuration Quality & Risk Stage Boundary: Created End Stage Rpt Controlling a Stage Created Created End Project Rpt Follow on Actions Lessons Report Project Brief Management Project Manager IS Plan Lessons Log Daily Log PBS PDs PFD Project Plan * * P I D CS: Highlight CS: Issue/Exp. costs. document the benefits and prepare a Benefits Review Plan that will describe how and when Benefits will be reviewed. Quality.Team Manager is responsible with the PM -. at sometime has an idea or a need.Approach -.Outline BC -. PRINCE2 suggests a number of pre-project activities that should be done. a change in legislation like a CO2 reduction).Created or updated many times during a stage -.com Version 1. The main objectives of the Initiation Stage are to: • Define the Project Product quality. The main objective of the Starting Up a Project process is to verify that the project is worthwhile.2 The PRINCE2 Product Map 12.Roles Benef its Review Plan Starting Up A Project Risk. project timeline..Introduction to Processes 98 Pre-Project Initiation – 1st Stage Delivery Stages : Controlling a Stage & Stage Boundary Closing a Project by Frank Turley Management-Plaza.PPD ** -.4 Pre-Project What happens before the project starts? This is known as Pre-Project (project has not started yet). and a plan is created for the Initiation stage. All of them are contained in a process (i. The first step that is normally taken is the creation of a project mandate document. The PID contains almost all of the project information to date. 12. the Starting Up a Project process).SAMPLE Management Plaza . Create a detailed Business Case. and then assemble the Project Initiation Documentation (PID).Once per Work Package -. + Proof of Acceptance Updated Benef its Review Plan Business Case Project Plan CIR docs (cmdb) Project Controls PMT . The Starting Up a Project process is also about preventing poor projects from starting. Project mandate Corporate or Programme Management Directing a Project Authorize initiation Authorize the project Authorize a Stage or Exception Plan Give ad hoc direction Direction Project Board Auth. There are a number of Pre-Project activities to be done and these are referred to as the project start-up. somewhere. or a structured document based on a company project mandate template. an email..5 Initiation Stage This is the first Stage in a project and the activities to be performed for project initiation are contained in the “Initiating a Project” process. This can be a business opportunity or something that is necessary to do for the company (e.. Issue Registers Assists with Planning Work Packages Delivery Team Manager * ** -. which is a lot more detailed. Work Packages are produced in the Managing Products Delivery process. and the Checkpoint Reports are used to keep the Project Manager up to date on a regular basis. At the same time the Project Manager maintains a number of documents. the Project Board will receive the PID and decide whether to authorize the project or not.6 Next Stage or Stages after the Initiation Stage The Project Manager has day-to-day responsibility for the project on a stage-by-stage basis. Lessons Log. Directing a Project Process Directing a Project is the responsibility of the Project Board. • Planning post-project benefits reviews. Quality Register and Configuration Items Record. Each process is the responsibility of one of the management levels in the project organization. and reports to the Project Board. this means that the Project Board will decide (Yes or No) to allow the project to start.2) when reviewing the following text. the Project Manager will request permission to proceed to the next stage and will have to provide the following information to the Project Board: Updated Business Case. • Writing and delivering Lessons Learned report The Project Board will revise the data provided by the Project Manager and then can take the decision to Authorize Project Closure. and will focus on decommissioning the project. such as: • Assessing the project by comparing it to the original plan.SAMPLE Management Plaza . there are seven management processes in PRINCE2. 12. • Writing End Project Report. The Project Manager can then leave the building. Final Delivery Stage During the final stage. the PID is baselined so it can be used in the future to compare the project objectives with the current situation.Introduction to Processes 99 The Project Plan is a high-level plan for the whole project. Towards the end of a stage in the Managing a Stage Boundary process. The Project Manager keeps the Project Board up to date about the progress of the project using the Highlight Report. and Next Stage Plan. The Project Board will check that the recipients of the project's products are in a position to own and use them. meaning the Project Board. the Project Board may have agreed to receive a Highlight Report every two weeks from the Project Manager. • Checks that all deliverables have passed the required quality tests. At the end of the Initiation Stage. If yes. These will be discussed in future chapters. such as the Daily Log. • Checks that stage is in line with Stage Plan. • 12. The Project Manager does the following: • Assigns work to be done (assigns work to the Team Managers).7 Introduction to the Seven Processes As mentioned earlier. The Closing a Project process is always the last part of the last stage and it describes a number of activities that should be done. During this Foundation Q&A Workbook . All these activities are done in the Controlling a Stage process. and will also check that they will be supported after the project has stopped. It runs from the start of the project until its end. Issue Register. End Stage Report. Note that the Starting Up a Project process happens before the project starts. It is a good idea to view the PRINCE2 Product Map (see Fig 12. For example. the Project Manager will be accepting and getting approval for the last products to be produced. In simple terms. A Stage Plan is also created for the first delivery Stage Plan (in the Stage Boundary process). Risk Register. • Checks that forecasts are within project tolerances. The Project Board will use the information provided by the Project Manager to assess the continued viability of the project and will make the decision to authorize the next stage. Project Manager or Team Manager. product quality. The Controlling a Stage Process The Controlling a Stage process is where the Project Manager does most of his work. PRINCE2 suggests a number of activities to be done to prepare the project for closure. The Managing a Stage Boundary Process The Managing a Stage Boundary process has two main functions: (1) reporting on the performance of the existing stage and (2) planning the next stage. project timeline and costs. and communicates with stakeholders. The Controlling a Stage process monitors each stage and is repeated for each stage in the project. the Project Board authorizes project stages and manages the overall project by using the management style Management by Exception. The output of this process will be the basis for the Project Board’s confirmation for closure. and assembles the PID (Project Initiation Documentation). the project management team is assigned. and commitment of resources. The Team Manager receives the Work Packages (which are a list of tasks) from the Project Manager. the reasons for the project are established. and delivers the completed and tested Work Packages back to the Project Manager. This is also the process where the Project Plan is created and the Business Case for the project is finalized. as the project does not start until the Initiation Stage begins. this process evaluates the stage and prepares the plan for the next stage. All of this information is assembled into the Project Initiation Documentation. such as End Project Report. takes corrective action. the products get created. The Closing a Project Process The Closing a Project process covers the work of wrapping up the project and this process is the last part of the last stage.SAMPLE Management Plaza . Foundation Q&A Workbook . Lessons Learned Report and Acceptance Record. as the project is closed by the Project Board in the Directing a Project process and not by the Project Manager. The Project Manager watches over the work.Introduction to Processes 100 Directing a Project process. the Project Board can check on how well the stage has done against the Stage Plan. which includes reporting. and work gets done. Therefore. It is where the Work Packages are executed. risk analysis. and a Stage Plan is created to run the Initiation Stage. The project is divided into stages for management and control efficiency. The End Stage Report and Next Stage Plan are submitted to the Project Board. in fact. Each action can be repeated many times by the Project Manager until the stage is complete. The Starting Up a Project Process This is the responsibility of both the Project Manager and the Executive. In other words. observes changes. The Managing Product Delivery Process Managing Product Delivery is the process where the planned products are created and it comes under the responsibility of the Team Manager. In this process. This is the very first process and is. known as the Pre-Project process. referring to the fact that it occurs before the project starts. The Initiating a Project Process The Initiating a Project process is the process that defines the Project Product. then most of the Project Brief will be provided by the program. 13. Create the Project Brief. most of the work in this process will already be done by the program. specialists or even outside knowledge. The major inputs and outputs of the SU process. which is provided by a high-level person within the company or a Programme (Corp / Programme Environment).3 Activities This is a high-level overview of the Activities and it is good to understand this before we begin with the Activities in more detail. In fact. which provides information on the scope of the project and most of the information collected during this process. the project mandate will be expanded into the Project Brief. Another important purpose of the Starting Up a Project process is to prevent poor projects from starting up. which examines the best way to go about doing this project and obtaining advice from other projects in the form of lessons learned.1 Introduction Let us take a look at what you will learn in this Starting Up a Project (SU) process. Choose the people who will do the work to initialize the project. the aim is to do the minimum necessary just to see if it is worthwhile doing the Initiation stage. • • • So as you can see. During this process. which will contain information on the Business Case. This process should be brief. SU Inputs and Outputs. • Foundation Q&A Workbook . An overview of the Starting Up a Project process activities. Note: If the project is part of a program. Create a detailed Stage Plan to plan the work to be done in the Initiation Stage. perhaps that’s where we get the name Project Brief. You will be learning about the following: • • • • • The purpose of the Starting up a Project process.2 Purpose and Objective of the SU Process Purpose of the Starting Up a Project Process The purpose of this process is to answer the question. “Do we have a worthwhile and viable project?” The project mandate is usually the only document that exists when this process starts. Therefore. the purpose of this process is to provide the Project Board with the necessary information to judge if the project is worthwhile.SAMPLE Management Plaza . SU Roles & responsibilities.Starting Up a Project 101 13 Starting Up a Project 13. In fact. the Starting Up a Project process objectives are to provide the Project Board with certain information and to prepare the Initiation Stage Plan. • • The Trigger to start the project is the project mandate. Keep in mind that the Project Brief will be used by the Project Board to decide whether to Initiate the project or not. The Business Case document is not completed until the Initiation Stage. Look at the project approach. They use the Project Brief. and this is not enough information for the Project Board to make the decision to start the Initiation Stage. and other roles in the project team. The Objectives of the Starting Up a Project Process The objectives of the Starting Up a Project process are to prepare and make sure that the following is done during and by the end of this process: • • There is a Business Case (business reason). and this should be documented in the outline Business Case. 13. and o Avoiding costly exceptions during the Stages. Look at the above diagram and notice at what level the activities are done. most activities are done by the Project Manager. In many companies. projects are started too quickly.e.. project mandate Corporate or Programme Management 1 Appoint Executive & Project Manager by Frank Turley Management-Plaza. Project Board and some of the Stakeholders.. as upper management needs to see that some action is taken. 1. Reproduced under license from OGC. PRINCE2 points out that the more time spent on clearly defining the requirements in this process. The work on the Project Brief and the outline Business Case is an iterative activity. so the result is the creation of a poorly defined Project Product. 4.SAMPLE Management Plaza .com Direction DP Process Authorize initiation 5 Prepare the outline Business Case + Create PPD 2 3 Design & appoint the Project management team Management Project Manager PPD: Project Product Description Capture previous lessons 4 Select the project approach Assemble the Project Brief 6 Plan the initiation stage Starting Up a Project Based on OGC PRINCE2® materiall. Design and appoint the project management team. Planning the Initiation stage. 2.1 Overview of Starting Up a Project The following Activities are to be done in the Starting Up a Project process: Appoint the Executive and the Project Manager. to initiate a project Pre-Project Fig 13. 6. As you can see. Prepare the outline Business Case and create the Project Product Description (PPD) • The PPD is a description of the main product that will be produced 5. as some of the following situations can be avoided: o Meetings and detailed discussions trying to define certain products. The outline Business Case is created by the Executive with some assistance from the Project Manager and the Project Product Description is created by the Project Manager.Starting Up a Project 102 • • • Assembling the Project Brief and refining the outline Business Case require close cooperation between the Project Manager. Capture Previous Lessons. Foundation Q&A Workbook . o Re-planning due to creating the wrong sub-products. Based on iPlazza Material Req. 3. Select the project approach and assemble the Project Brief. there is a constant cycle of discussions and improvements to these documents. Corp. the more time that will be saved during the project. i. see if Lessons Reports are available from other projects or invite all stakeholders to offer lessons). SU Outputs (Main Outputs) • Project Product Description: This is normally a 1-3 page description of the main product that will be produced by the project. six performance targets. • Project Approach: This part of the document will define the project approach that should be taken by the project. update existing product. Six Objectives • Scope / Out of scope • Desired outcomes • outline Business Case • Project Approach • Roles & Responsibilities • PMT Structure • Project Product Description • References Project mandate Starting Up a Project Lessons from other projects Initiation Stage Plan Request to initiate a project Fig 13.2 SU Input / Output diagram SU Inputs • The project mandate is the trigger to start the project and comes from outside the project. roles & responsibilities. • Project Management Structure (PMT): This will provide information on the structure of the PMT (The Project Board. plus other information. such as the scope.SAMPLE Management Plaza . Change Authority. • Initiation Stage Plan: The Project Manager creates this first plan (Stage Plan) which is a day-to-day plan for the Initiation Stage. Foundation Q&A Workbook . Its objective is to provide some business justification for the project. both internal and external? • Project Brief: All the above information is assembled into the Project Brief.Starting Up a Project 103 13.g.. or off-the-shelf solutions? o Should we use internal or external people in the project? o What can we learn from other projects? o Are there other information sources.com Inputs Process – Inputs / Outputs Outputs Project Brief Project Brief Contents • Background.4 SU Input / Output Diagram by Frank Turley www. The Project Manager will ask such questions as: o Create product from scratch. some business case information and perhaps other data that is required by the Project Brief. • Outline Business Case: This is the responsibility of the Executive.MgmtPlaza. • The project mandate can have such data as the reasons for the project. Assurance. • The PM should seek lessons from other projects (e. The structure of this document is covered in both the Quality and Plans themes. Project Manager). IS Plan Quality PPD (Project Product Description) Progress Lessons Log. • Appoints the Project Manager (if not done already). • Creates the Initiation Stage Plan.. • Provides information for Project Product Description.PMT Project Brief IS Plan Lessons Log Daily Log How Themes are used: SU process (summary) Business Case project mandate. • Approves the PMT. • May be asked to help with Project Approach and PPD. The Project Manager gives both the Project Brief and Initiation Stage Plan to the Project Board. • Creates the outline Business Case. Have an understanding of what happens in the SU process and why.Approach . 13.7 What you need to know for the Foundation Exam You just need know the following: • • • Know the purpose and objectives of the SU process.Outline BC . Project mandate Corporate or Programme Management Direction Project Board . Use the Foundation Q&A Workbook to learn more about the types of exam questions to expect. outline BC.Starting Up a Project 104 Request to Initiate the Project • The final output of the SU process is to send a request to the Project Board to Initiate the Project which is to allow the first stage of the project to start.PPD . approach Organization PMT (Project Mgmt Team) Plans PPD.5 How Themes are applied in the SU process (NR) Corp. • Provides project level tolerance information. Senior User Project Manager Team Manager 13. roles & responsibilities. Foundation Q&A Workbook . • Facilitates the creation of most of the Project Brief (PPD. etc. scope. • Appoints the Executive and may appoint the Project Manager.SAMPLE Management Plaza . Know the purpose of the Project Brief.3 Themes in SU Process 13. PMT. • Facilitates the Project Approach and gathers lessons. Daily Log Management Project Manager Fig 13.6 SU Roles and Responsibilities Role Corp / Programme Management Executive Responsibilities • Provides project mandate–(trigger and comes from outside the project).). 6) Creating the Project Plan. and so there are a number of questions to ask about the project: 1. milestones. timescales and costs. and who needs to be informed and how often? 7. The major inputs and outputs of the Initiating a Project process.SAMPLE Management Plaza . while Initiating a Project is about building a correct foundation for the project so that all stakeholders are clear on what the project will achieve. which are: 1) Preparing the Risk Management Strategy. which will answer how to manage risk during the project (that is. How can it be ensured that quality will be achieved? 5. planned. 5) Setup of Project Controls. It is a bit like building a house on little or no foundation. This understanding is needed before deciding to continue with the project. which will answer questions related to communication with stakeholders. 3) Preparing the Quality Management Strategy.2 Purpose & Objective The purpose of the Initiating a Project process is to understand the work that needs to be done to deliver the required products. 14. which will provide information on how the Project Board can control the project. 14. How is the project progress monitored. how communication will be done…. The alternative would be to allow projects to start after the “Starting Up a Project” process without knowing any of the following: planning. Initiating a Project can be a big investment for a company but it’s a necessary investment to plan and run the rest of the project. Purpose of the Project Initiation Documentation. which will give information on how to manage the products produced during the project. which is to collect and assemble information from most of the documents created to date. which will answer the question on how to ensure quality. issues and changes identified and followed up? 6. 8) Lastly. Context of the Initiating a Project process in relation to the rest of the project. the Project Manager will be creating a collection of management products to show: how the project will be managed. 7) Refining the Business Case. During Initiating a Project. risks. cost and level of quality. Let us put Initiating a Project into context and look at what it really does for the project.Initiating a Project 105 14 Initiating a Project • • • • • 14. the cost. 4) Preparing the Communication Management Strategy. When can the products be delivered? 4. which means to complete the Business Case. What are the reasons for doing the project and the Benefits and Risks? 2. And lastly how will PRINCE2 be tailored to suit the project? The objective is to find answers to the above questions. You will learn the: Purpose of the Initiating a Project process. Foundation Q&A Workbook . How are risks. how quality will be checked. The Starting Up a Project process checks if the project is viable. 2) Preparing the Configuration Management Strategy. assembling the Project Initiation Documentation (PID). how to manage the rules of engagement for risk).3 Activities PRINCE2 recommends eight activities in the Initiating a Project. which covers Product Descriptions. Objectives of the Initiating a Project process.1 Introduction Let us take a look at what you will learn in the Initiating a Project process. Scope: What is to be done and what will not be included? 3. Like any project there are a number of important items to discover. Initiating a Project 106 Direction Authorize initiation Authority to initiate a project Prepare the Risk Management Strategy (DP) Directing a Project Authorize the Project by Frank Turley www.MgmtPlaza.com Prepare the Quality Management Strategy Prepare the Configuration Management Strategy Management Project Manager Prepare the Communication Management Strategy Setup up the project controls Create the Project Plan Refine the Business Case Req. to deliver a project Initiating a Project Assemble the Project Initiation Documentation (SB) Managing a Stage Boundary Based on OGC PRINCE2® material. Reproduced under license from OGC Initiation Stage - 1st Stage Initiation a Project Fig 14.1 Overview of Initiating a Project The Project Manager will begin with the 4 strategy documents and will then create the Project Controls and Project Plan. These are iterative activities so they will continue to be updated during the Initiation Stage. The Business Case can then be completed after the Project Plan as the Project Plan provides information required by the Business Case (time and cost information). The final activity is to assemble the Project Initiation Documentation. 14.4 IP Inputs and Outputs Inputs IP Process Outputs PID PID Contents • Project definition / approach • Business Case • Project Team Structure • Role Descriptions • Four Strategy Documents • Project Plan • Project Controls • Tailoring of PRINCE2 Authority to initiate Project Brief Initiating a Project Benefits Review Plan Initiation Stage Plan Request to deliver a project SB by Frank Turley www.MgmtPlaza.com Stage Plan (1st delivery stage) Foundation Q&A Workbook - SAMPLE Management Plaza Initiating a Project 107 IP Inputs • • • The Trigger is the “Authority to Initiate the Project” which comes from the Project Board. The Project Brief comes from the SU process. The Initiation Stage Plan comes from the SU process. IP Outputs (Main outputs) • The four management strategy documents: Quality, Configuration Management, Risk and Communications (part of PID). • The Project Management Team Structure and Roles Descriptions (part of PID). • The Project Plan is a plan for the whole project created which includes all Products Descriptions (part of PID). • The Business Case is the responsibility of the Executive and provides the information to justify the project. The Project Manager will most likely assist the Executive (part of PID) • An overview of how the project will be controlled (part of PID). • The Benefits Review Plan is an overview of what and when Benefits will be realized both during and after the project, and who (Senior User) is responsible for these benefits • Note: The 1st delivery Stage Plan is created in the SB process (not in the Initiating a Project process). The Project Initiation Document forms a contract between the Project Manager and the Project Board. Request to deliver a project • The final output of the Initiating a Project process is a request to the Project Board to deliver the project or, in other words, to sign off on the PID and allow the project to continue. 14.5 IP Roles and Responsibilities Role Project Board Executive Senior User Senior Supplier Project Assurance Project Manager Team Manager Responsibilities • Approve all parts of the PID. • Create Business Case. • Approve all parts of the PID. • Provide information and resources for the Product Descriptions. • Provide information for the Benefits Review Plan. • Approve parts of the PID (e.g., Project Plan, PMT). • Provide resources to help with planning. • Review most of the information in the PID. • Create most of documents required for the PID. • Create the Benefits Review Plan. • Assist with Planning (PBP, Estimating, etc.). Foundation Q&A Workbook - SAMPLE Management Plaza Initiating a Project 108 14.6 How Themes are applied in the IP Processes (NR) Direction Corp.. Project Board Corporate or Programme Management Directing a Project by Frank Turley Management-Plaza.com Version 1.2c Authorize the project Business Case Strategy: Communication Configuration Quality & Risk PBS PDs PFD * * How themes are used: IP process (summary) Management Project Manager P I D Business Case Organization Quality Plans Risk Change Progress Project Plan Project Controls PMT - Roles Benefits Review Plan Risk, Quality, Issue Registers Delivery Team Manager Pre-Project Business Case, BRP Communication Mgmt Strategy PMT – Roles Quality Mgmt Strategy, QR PBS, PDs, PFD, Project Plan Risk Mgmt Strategy, RR Configuration Mgmt Strategy, IR Project controls * -- Team Manager assists the Project Manager -- Created once during project (can be updated) -- Created or updated once per stage -- Created or updated many times during a stage -- Once per Work Package -- Many per Work Package Initiation – 1st Stage Delivery Stages : Controlling a Stage & Stage Boundary Closing a Project Fig 14.3 Themes in IP Process 14.7 What you need to know for the Foundation Exam You just need to know the following: • • • • Know the purpose of the Initiating a Project process. Know the objectives of the Initiating a Project process. Have an understanding of what happens in the Initiating a Project process in relation to the rest of the project. Know the purpose of the Project Initiation Documentation (PID). Use the Foundation Q&A Workbook to learn more about the types of exam questions to expect. Foundation Q&A Workbook - SAMPLE Management Plaza when do they give advice. The context of the DP process in relation to the rest of the project.Directing a Project 109 15 Directing a Project • • • • The purpose of the DP process. 6. The major inputs and outputs of the DP process. and how do they communicate and check business justification? It is a good idea to look at the Process Model Diagram to see how the Directing a Project process interacts with the other processes.2 Introduction to the Directing a Project Purpose: What is the purpose of Directing a Project? The purpose of the Directing a Project process is to enable the Project Board to be accountable for the project by making key decisions and to have overall control. how does the Project Board control the project. To initiate the project (allow the Initiation Stage to start). What does Directing a Project process really do for the project. Other objectives of the Directing a Project process are to: 4. 5.1 Introduction Let us take a look at what you will learn in the Directing a Project process. Provide direction and control during the project. What is the trigger for the Directing a Project Process to start? It is the Request to Initiate a Project that is done by the Project Manager at the end of the Starting Up a Project process. 3. Be the interface to Corporate / Programme Management. day-to-day management of the project is done by the Project Manager. The objectives of the DP process.SAMPLE Management Plaza . Where is it decided how often the Project Manager communicates to the Project Board? The Communication Management Strategy covers how often communication should be done between the Project Board and the Project Manager. Objective: What are the objectives of Directing a Project? The objectives of the Directing a Project process are to provide authority (to make a decision) 1. Foundation Q&A Workbook . You will learn: 15. What about advice? The Project Board provides guidance to the Project Manager throughout the project and the Project Manager can seek advice at any time. Context: Let us put the Directing a Project process into context. as this can change during the project. how is the project triggered. To deliver the project’s products (start the delivery stages). Business Justification The Project Board is responsible for ensuring that there is continued business justification and can decide to shut down the project if the Business Case is no longer viable. receive regular reports. They manage by exception. while the Project Board looks down from above. As you know. 2. Ensure that post-project benefits will be reviewed. 15. To close the project. exercise their control and make decisions. which is to allow the delivery stages to start.Once during project -. 4. or to authorize exception plan to complete the current stage.Execution Fig 15.3 Introduction to Activities There are 5 activities within the Directing a Project process. Reproduced under license from OGC www.Once per stage -. Project Board decisions 1: Authorize Initiation 2: Authorize the Project Authorize Next Stage Authorize Project Close Directing a Project Pre-project (feasibility) Initiation (Planning) delivery Stages . review the existing stage and authorize the next stage to begin. Project Board provides guidance throughout the project.6 Pre-Project Initiation Stages .Once per stage Based on OGC PRINCE2® material.SAMPLE Management Plaza Closure Recommend.Management Product Premature Close Auth.(Execution) -.Once per Work Package Notification -. to Initiate a Project (Issue / Change & Risk) Authorize stage Exception Report Highlight Reports Project Brief + IS Plan Management Project Manager (SB) Managing a Stage Boundary Next Stage Plan Initiating a Project (IP) Delivery Team Manager -. Corp. The best way to show the Directing a Project process activities is by using the Process Model Diagram.1 The five activities in Directing a Project (Process Model) The following diagram is taken from the Timeline diagram and gives another view of the five activities. Deliver Project? Authorize Project Approved PID Req.Once during project -. Lessons Rpt Draft Closure Notification Close Closing .Many times during stage -. they are: 1. project closure Project Init Doc Req. 2. project mandate Corporate or Programme Management Initiation Notification Project Notification Closure Notification close soon Direction Project Board Directing a Project (DP) Starting up a Project (SU) Authorize initiation Authorize the project Authorize a Stage or Exception Plan Give ad hoc direction Auth.2 The 5 activities in Directing a Project (Timeline overview) Foundation Q&A Workbook .TAG-Europe. Authorizing Initiation Authorizing the project Authorizing a Stage or Exception Plan Giving ad hoc direction Authorizing project closure – – – – – which is to allow the Initiation Stage to start.Directing a Project 110 15. 3.Authorization Mgmt Prod -. To Initiate Project Starts Advice End Stage Report Next Stage Plan or Exception Plan Controlling a Stage (CS) Work Package Work Package Closing a project (CP) Work Package Completed WP Managing Product Delivery (MP) Products get created & quality checked MP Outputs Team Plans Checkpoint Reports Quality Register Completed WP Version 1. shut down the project after a number of checks.Notification Auth..net Fig 15. End Project Report FAR. -. 5. 15. Plan. Business Case End Project Report Lessons Report Benefits Review Plan Closure Notification PID (BC. .com Authorize a Stage or Exception Plan Approved Approved Give ad hoc direction Authorization project closure Approved Based on OGC PRINCE2® material.MgmtPlaza./Notification PID Benefits Review Plan Author.Directing a Project 111 15. www. • Each Activity is a decision for the Project Board.) End Project Report Lessons Report Benefits Review Plan Follow on Actions by Frank Turley. You do not have to know this diagram for the exam but it’s a good idea to be able to understand it.etc. remember the following./Notification Except. Plan request. New Issue. Prem.4 DP Inputs and Outputs This diagram gives an overview of the inputs and outputs for each DP activity.. Authorizations and Notifications. Advice. Reproduced under license from OGC Fig 15. • The Project Manager provides most of the information to the Project Board./Notification End Stage Report next Stage Plan Author. Plan) Highlight Report Exception Report Issue Report PID (BC.SAMPLE Management Plaza ..) Benefits Review Plan Approved Authorize the project End Stage Report Next Stage Plan PID (BC. Inputs Project Brief Initiation Stage Plan Activity Approved Authorize initiation Outputs Project Brief Stage Plan Author. • The main outputs are Approvals. Close.5 DP Roles and Responsibilities Role Project Board Responsibilities • All decisions Foundation Q&A Workbook .3 DP Inputs and Outputs As you read through the above diagram. Plan. Directing a Project 112 15.SAMPLE Management Plaza . End Project Report Delivery Team Manager * -.Created or updated many times during a stage -.Once per Work Package -. Foundation Q&A Workbook .g. Stage Reports.6 How Themes are applied in DP Process (NR) Corp.Many per Work Package SU Process Pre-Project Initiation – 1st Stage Delivery Stages : Controlling a Stage & Stage Boundary Closing a Project Fig 15. • Have an understanding of what happens in the DP process in relation to the rest of the project.7 What you need to know for the Foundation Exam You just need to know the following: • Know the purpose of the DP process. PID. Use the Foundation Q&A Workbook to learn more about the types of exam questions to expect.4 Themes in DP Process 15. PPD.g.Team Manager assists the Project Manager -.Created once during project (can be updated) -. • Know the objectives of the DP process. Issue Reports. Rpts End Project Rpt Business Case Project Plan How themes are used: DP process (summary) • Project Board will review all documents given to them • These documents cover all themes • E.Created or updated once per stage -. • E. Highlight Reports.. BC. project closure Direction Project Board Project Brief Management Project Manager PID End Stage Rpt Business Case Project Plan CS: Highlight CS: Issue/Exp. Plans. Corporate or Programme Management Directing a Project Authorize initiation Authorize the project Authorize a Stage or Exception Plan Give ad hoc direction Auth. Deliver the products for the stage to the agreed quality within agreed cost and time and achieve the defined benefits.2 Purpose & Objective Purpose The purpose of the Controlling a Stage process (CS) is for the Project Manager to assign the work to be done. The objectives of CS process. This whole sequence of activities is again repeated for each stage in the project. 16. Keep Risks and Issues under control. the Project Manager will start to prepare the project for closure. monitor this work. sign off completed work and issue new Work Packages.3 Context Note: Refer to the Process Model diagram when reading the following text. The Controlling a Stage process describes the work of the Project Manager as they do their day-today management of a stage. The CS process Inputs and Outputs. 16.1 Introduction Let us take a look at what you will learn in the Controlling a Stage (CS) process. Keep the Business Case under review. Report to the Project Board using the Highlight Report. Take any necessary corrective action. 16.Controlling a Stage 113 16 Controlling a Stage 16.4 Introduction to Activities (NR) There are 8 activities within the Controlling a Stage process and they are divided into 3 parts that also describe what the Project Manager does: 1. assess issues and deal with issues and risks. At the end of the last stage. 3. You will learn • • • • The purpose of the CS process. Watch for issues. deal with issues. As mentioned above. the Closing a Project will be invoked and therefore. and it is where the Project Manager does most of their work. The context of the CS process in relation to the rest of the project. 2. Review the current situation in relation to the Stage Plan. Objective: The objective of the Controlling a Stage process is to ensure that: • • • • Attention is focused on the delivery of the products. Monitor progress information for this work using Checkpoint Reports and Quality Register. During a stage the Project Manager will repeat the following tasks: • • • • • • Authorize the work to be done (give out work in Work Packages to the Team Managers). Foundation Q&A Workbook . the Project Manager will keep repeating these tasks until all the planned products for the stage have been completed and then start to prepare for the Stage Boundary process. Monitoring and Report. Work Packages.SAMPLE Management Plaza . Issues. report progress to the Project Board and take corrective action to ensure that the stage remains within tolerance. Work Package The Monitoring and Reporting activities are: 1. 2.SAMPLE Management Plaza . 2 Proceed Auth.com Auth.MgmtPlaza. 3 Receive Completed WP Highlight Reports End Stage Report Next Stage Plan or Exception Plan 5 Controlling a Stage New Issues 1 Authorize A WP Delivery Team Manager Work Package Work Package Work Package Completed WP Managing Product Delivery (MP) Controlling a Stage: Stages .. Review the stage status – Continually compare status to Stage Plan.1 Controlling a Stage The Work Packages Activities are: 1.. Report Highlights – Regular reports to the Project Board. Solve issues while keeping stage within tolerance. The Issues activities are: 1.next stage Escalate Issues & Risk Management Project Manager (SB) Managing a Stage Boundary Guidance & advise 7 Take Corrective Action 8 4 Review Stage Status 2 Review WP Status 6 Capture & Examine Issues. Create Exception Report and send to the Project Board. Authorize a Work Package – Assign and agree with the Team Manager. Escalate issues and risks 3. Capture and examine issues & risks 2. Receive completed – Check quality and Configuration Management.Controlling a Stage 114 Directing a Project (DP) Authorize a Stage or Exception Plan Give ad hoc direction by Frank Turley www. Foundation Q&A Workbook . Review Work Package – Check on Work Package progress. Status 3.Execution Close Fig 16. 2. Take corrective action – – – Categorizing and assess impact. • Create or update all CS management documents. • Issue Reports (includes Change Requests) are used to escalate issues to the Project Board.MgmtPlaza. • Send Checkpoints reports (MP process). Risk and Quality and therefore updates the Issue. Inputs CS Inputs / Outputs Outputs Highlight Reports Authorize next Stage Update 3 Registers (Issue. • The Stage Boundary process commences near the end of the current stage.Controlling a Stage 115 16. • The Project Manager constantly reviews Issues. • Exception Reports are used to report if the stage is out of tolerance or is forecast to be. Foundation Q&A Workbook . Risk. • All day-to-day activities are performed by the Project Manager. CS Inputs • The trigger to start each CS process is the Authorization from the Project Board.6 CS Roles and Responsibilities Role Project Board Project Assurance Project Manager Team Manager Responsibilities • Give advice to Project Manager. • Give advice to Project Manager. 16.5 CS Inputs and Outputs The following diagrams give an overview of the main inputs and outputs for the CS process.com Stage Boundary Fig 16. Quality) Stage Plan (Product Descriptions) Controlling a Stage Issue Reports (Change Requests) PID Exception Reports by Frank Turley www. Risk and Quality registers. • The main inputs are the Stage Plan and information in the PID.SAMPLE Management Plaza .2 CS Inputs and Outputs CS Outputs • Highlight Reports are used to keep the Project Board up to date on the stage progress. • Know the objectives of the CS process. Tolerances PM views these documents * -.SAMPLE Management Plaza . Foundation Q&A Workbook . QR Plans Product Descriptions. Quality Quality Mgmt Strategy.Controlling a Stage 116 16.7 How Themes are applied in CS Process (NR) Corp.Created or updated once per stage -.8 What you need to know for the Foundation Exam You just need to know the following: • Know the purpose of the CS process. BR Plan Organization Comm.3 Themes in CS Process 16.. Stage Plan Risk Risk Mgmt Strategy.com Version 1. Corporate or Programme Management Directing a Project Give ad hoc direction by Frank Turley Management-Plaza.Many per Work Package Controlling a Stage Created CS: Highlight CS: Issue/Exp. Mgmt Strategy. RR Change Config.Created once during project (can be updated) -. Mgmt Strategy. Use the Foundation Q&A Workbook to learn more about the types of exam questions to expect.Created or updated many times during a stage -. Rpts Controlling a Stage Updated Management Project Manager CS: Risk Register CS: Issue Register CS: Lessons Log CS: Daily Log CS: CIR Delivery Team Manager Work Packages Quality Register Updated Pre-Project Initiation – 1st Stage Delivery Stages : Controlling a Stage & Stage Boundary Closing a Project Fig 16.Team Manager assists the Project Manager -. IR Progress Project controls. • Have an understanding of what happens in the CS process in relation to the rest of the project.Once per Work Package -.2c Direction Project Board How themes are used: CS process (summary) Business Case Business Case. 3 Managing Product Delivery Activities There are just three activities in Managing Product Delivery. Accepting a Work Package Accept. 17. The objectives of MP process. • • Foundation Q&A Workbook . Demonstrates that products meet their quality criteria. The planned products are delivered to the expectations and within tolerance. The context of the MP process in relation to the rest of the project. and they are: 1. Delivers the completed Work Packages to the Project Manager. the Managing Product Delivery process only interacts with the Controlling a Stage process. (Tip: Use Quality Review Meeting.) Obtains approval for each product. Gets the products developed (executes the products). Executing a Work Package Do. 2.2 Purpose & Objective Purpose The purpose of the Managing Product Delivery process is to manage and control the work between the Project Manager and the Team Manager by placing certain formal requirements on the accepting. 3. and delivery of products. Objective: The objective of the Managing Product Delivery process is to ensure that: • • • • Products assigned to the team are authorized and agreed upon. The team is clear about what has to be produced and understands the effort. and reports to the Project Manager using the Checkpoint Report. The Managing Product Delivery process views the project from the Team Manager’s point of view in the same way the Controlling a Project process is from the point of view of the Project Manager. The Managing Product Delivery process views the project from the Team Manager’s point of view: • Accepting a Work Package: The Team Manager accepts the Work Package from the Project Manager and creates the Team Plan to manage the development of the products.SAMPLE Management Plaza .1 Introduction Let’s take a look at what you will learn in the Managing Product Delivery process. Creates a Team Plan to show how these products will be developed. obtains approval. executing. The MP process Inputs and Outputs. requests the quality checks. Delivering a Work Package: Delivering a Work Package is delivering proof that the products are complete. The Team Manager does the following to ensure that products contained in the Work Packages are created and delivered: • • • • • • Accepts and checks Work Packages from the Project Manager. You will learn 17. As you can see from the Process Model Diagram. Delivering a Work Package Deliver. Accurate progress information is provided to the Project Manager by the Team Manager.Managing Product Delivery 117 17 Managing Product Delivery • • • • The purpose of the Managing Product Delivery (MP) process. time and cost. Executing a Work Package: The team produces the products. 17. 1 Overview of Managing Product Delivery 17.4 MP Inputs / Outputs This diagram gives an overview of the main inputs and outputs of the MP process Inputs MP Process – Inputs / Outputs Outputs Products (approved) Authorize to deliver a WP Checkpoint Reports Work Package Managing Product Delivery Update Quality Register Updated CIR Completed WP by Frank Turley www.SAMPLE Management Plaza .MgmtPlaza. and that the Project Manager is notified Based on OGC PRINCE2® material.com Based on OGC PRINCE2® material. that products are delivered as described in the Configuration Management Document.Managing Product Delivery 118 This involves ensuring that the Quality Register is updated. Reproduced under license from OGC Management Project Manager Controlling a Stage Review Stage Status Authorize A WP Review WP Status Receive Completed WP Delivery Team Manager 1 Accept a Work Package Managing Product Delivery 3 Deliver a Work Package Work Package 2 Execute a Work Package Fig 17. Reproduced under license from OGC Fig 17. that approvals are done.2 MP process inputs and outputs Foundation Q&A Workbook . Created or updated once per stage -. 17.Managing Product Delivery 119 MP Inputs • The Authorization to deliver a Work Package comes from the Project Manager. • Manages the development of the products. • Quality Register is updated when products have passed or failed their quality tests.) MP Outputs • Checkpoint Reports are created regularly by the Team Manager to keep the Project Manager informed on the progress of the Work Packages.. description of work. • Completed Work Package is the notification sent by the Team Manager to the Project Manager to advise them the Work Package is complete. frequency of checkpoint reports. tolerances. • Reviews Checkpoint Reports and Quality Register (CS process). Checkpoint Report Progress Quality Register Updated Work Packages Delivery Team Manager * -.5 MP Roles and Responsibilities Role Project Manager Team Manager Responsibilities • Authorizes Work Packages (CS process). which include the quality criteria.2c Management Project Manager Direction Project Board How themes are used: MP process (summary) Product Descriptions. Corporate or Programme Management by Frank Turley Management-Plaza. Status can change from “To develop” to “Developed” to “Quality Tested”.Once per Work Package -.SAMPLE Management Plaza .g. They will be handed over as described in the Configuration Management Strategy document.3 Themes in MP Process Foundation Q&A Workbook .. etc.Many per Work Package Product Delivery: Created Checkpoint Reports Team Plan Delivery Stages : Controlling a Stage & Stage Boundary Closing a Project SU Process Pre-Project Initiation – 1st Stage Fig 17.com Version 1. Product Descriptions. 17. • Sends Checkpoints reports. • Update CIR: The status of products will change so the CIR documents must be updated (e.Created or updated many times during a stage -.Team Manager assists the Project Manager -.6 How Themes are applied in MP Process (NR) Corp. etc. • The Work Package contains the information required by the Team Manager (for example. Quality Register Quality Team Plan Plans Work Packages. The Project Manager can also view the Quality Register to check on the MP process.Created once during project (can be updated) -.) • Approved Products are the products that have been created and delivered. SAMPLE Management Plaza .Managing Product Delivery 120 17. • Have an understanding of what happens in the MP process in relation to the rest of the project. Use the Foundation Q&A Workbook to learn more about the types of exam questions to expect. Foundation Q&A Workbook . • Know the objectives of the MP process.7 What you need to know for the Foundation Exam You just need to know the following: • Know the purpose of the MP process. the usual documents. and confirm continued business justification. 2. and check how the project is going according to the original plan. unjustifiable. It is the correct thing to do if the project becomes too costly.SAMPLE Management Plaza . Foundation Q&A Workbook . • Prepare the Stage Plan for the next stage and Request Authorization to start the next stage. and create a Stage Plan for the next stage. o Team Managers. which are the Project Initiation Documentation. They will consider the next Stage Plan. Planning the next stage o Create the next Stage Plan and use Product-Based Planning. and they are: 1. This information will enable the Project Board to review the current stage. 18. 18. The context of the SB process and in relation to the rest of the project. and the Project Manager will request to complete the current stage instead of asking to continue with the next stage. 18. 2. • The will consider if the project should be allowed to continue or to shut the project down. Remember. approve the next stage.1 Introduction Let us take a look at what you will learn in the Managing a Stage Boundary process. The SB process Inputs and Outputs. estimating. Project Plan. Update the Project Plan o Confirm what has been done (actuals) and forecast planning for the next stage. specialists may help with products’ descriptions.2 Purpose & Objective Purpose: The purpose of Managing a Stage Boundary process has two parts: 1. Remember that Managing a Stage Boundary begins near the end of the current stage and before the next stage. So what does the Project Board consider? • • • They will consider the continued business justification of the project. and provides them with the necessary information to do this.3 Context Again. the Project Board is the one that controls the project and the stage Boundary process. etc. They wish to confirm that the stage has delivered all its planned products and benefits. Business Case.Managing a Stage Boundary 121 18 Managing a Stage Boundary • • • The purpose and objectives of the SB process.4 Managing a Stage Boundary Activities There are 5 activities within the Managing a Stage Boundary. if necessary. update the Project Plan and Business Case. The Project Manager has to provide the Project Board with an overview of the performance of the current stage. review the updated Project Plan. it is best to look at the Process Model Diagram to see the relationship between the Managing a Stage Boundary process and the other processes. It is important to remember that a decision to shut down the project should not be seen as a failure. then the Project Manager will create an Exception Plan instead of a next Stage Plan. especially Controlling a Stage and Directing a Project. etc. and Risk Register. • Review and update. You will learn: 18. The Managing a Stage Boundary process provides the information for the Project Board to evaluate the project at strategic points so they can decide to stop or to continue to the next stage. If the current stage is forecast to go out of tolerance. Objective: The objective of the Managing a Stage Boundary process is to: • Assure the Project Board that all products in the current stage are produced and approved. risky. • Record any lessons in the Lessons Log that can help in later stages or in future projects. Managing a Stage Boundary 122 3. Update the Business Case o Business Case must be updated with the latest costs of the last stage. Quality) Process – Inputs / Outputs Outputs End Stage Report Stage Plan 3 Register Files Managing a Stage Boundary next Stage Plan Exception Plan Lessons Log Exception Plan Updated Benefits Review Plan Req. Report Stage End or 5.1 Overview of Managing a Stage Boundary 18. Do the “Produce an Exception Plan” activity in this process.MgmtPlaza.com Directing a Project (DP) Authorize a Stage or Exception Plan Request to approve Exception Plan Request to approve next Stage Plan Give ad hoc direction OR Exception Plan Request Management Project Manager Report Stage End Update the Business Case Update the Project Plan Produce an Exception Plan Initiating a Project (IP) Plan the Next Stage Managing a Stage Boundary Controlling a Stage (CS) Fig 18.MgmtPlaza.2 SB Inputs and Outputs Foundation Q&A Workbook . Based on OGC PRINCE2® material.5 SB Inputs and Outputs Inputs Stage Boundary Approaching PID Update 3 Registers (Issue. Based on iPlazza material Direction Project Board by Frank Turley www. Reproduced under license from OGC. plus up-todate forecast for the next stage. 4.com Benefits Review Plan Fig 18. to approve Stage Plan or Exception Plan by Frank Turley.SAMPLE Management Plaza . Risk. It will be used by the Project Board. www. Use the Foundation Q&A Workbook to learn more about the types of exam questions to expect.7 How Themes are applied in SB Process (NR) Corp.Managing a Stage Boundary 123 SB Inputs • Stage Plan: The End Stage is created from the current Stage Plan. next Stage Plan. Lessons Progress End Stage Report All other Management Project Manager Next Stage Plan or Exception Plan Stage Boundary: Updated Business Case Project Plan Fig 18. SB Outputs • The next Stage Plan or Exception Plan is created.SAMPLE Management Plaza . BR Plan Business Case Project Plan. Plans Exception Plan End Stage Report.. 18. Request to Project Board • The last thing the Project Manager will do is to send a request to the Project Board to continue with the next stage or go back and complete the current stage.6 SB Roles and Responsibilities Role Project Manager Team Manager Responsibilities • Creates or updates all SB management documents • Can assist Project Manager in all planning activities 18.com Version 1. • Project Plan: The Next Stage Plan will use the Project Plan (PID).8 What you need to know for the Foundation Exam You just need to know the following: • Know the purpose of the SB process and the objectives of the SB process. Foundation Q&A Workbook .3 Themes in SB Process 18. • Have an understanding of what happens in the SB process in relation to the rest of the project. • The End Stage Report gives an overview of how well the stage performed. Corporate or Programme Management Directing a Project Authorize a Stage or Exception Plan by Frank Turley Management-Plaza.2c Direction Project Board Stage Boundary: Created End Stage Rpt How themes are used: SB process (summary) Business Case. Identify all unachieved objectives so that they can be addressed in the future. 19. It is the Project Board that then makes the decision to close the project. Preparing premature closure (optional): o Done instead of the “Prepare planned closure” if requested by the Project Board. Foundation Q&A Workbook . You will learn: 19. The CP process Inputs and Outputs. The project should have a clear end with a correct handover of information and responsibility. Transfer ownership of products to the customer. • Review the performance of the project. • Ensure that products can be supported after the project is disbanded. the Project Manager only prepares the project for closure. If you look at the Process Model diagram. as it is the Project Board that closes the project. it is the Project Manager that does all the activities in the Closing a Project process. As you can guess. This is done by comparing the project to the baselined documents. 2.” • • • • 19. It is good to remember that the Closing a Project process is the last part of the last stage of the project.3 Context Projects can be closed naturally when all the work has been done.Closing a Project 124 19 Closing a Project • • • The purpose and objectives of the CP process.SAMPLE Management Plaza . they call it “Authorize Project Closure. This information is then given to the Project Board. In fact. The Project Manager prepares for the project to be closed and provides the necessary information to the Project Board. you will see that the Closing a Project process is the last process on the management level and therefore the last process for the Project Manager to work on. A clear end to the project means the following: Check that the original objectives have been met. The context of the CP process in relation to the rest of the project.1 Introduction Let us take a look at what you will learn in the Closing a Project process.4 Closing a Project Activities There are 5 activities in the Closing a Project process for the Project Manager and they are: 1.2 Purpose & Objective Purpose The purpose of the Closing a Project process is to provide a fixed point to check that the project has reached its objectives and that the products have been accepted. Objective: The objectives of the Closing a Project process are to: • Verify user acceptance of the project’s products. Disband the project team and make certain that costs can no longer be incurred by the project. • Assess the benefits already realized and plan review of benefits that will be realized after the project is complete. or the Project Board can request a Premature Close. 19. • Address open issues and risks with a follow-up on action recommendations. Preparing planned closure: o Confirming the completion and acceptance of products. 4. Handover of products: o Hand over products to customer. • Draft Closure Notification: o This is prepared by the Project Manager for the Project Board.Closing a Project 125 3. as described in the Configuration Management Strategy document. Corporate or Programme Management will follow up on this Benefits Review.Once per Work Package Notification -. • Follow-on Action Recommendations: o These are comments that are given to the persons who will support the products. requests.MgmtPlaza. o These lessons will be valuable to future projects and are given to the Project Board. which comes from the Project Board. • All other input documents are used (see the diagram). • Updated Benefits Review Plan: o The Project Manager updates the plan to plan the Benefits reviews that should take place after the project is closed.). as the Project Manager wants to create an End Project Report and prepare the project for closure.Notification/Authorization Recommend project closure Closure recommendation Based on OGC PRINCE2® material.1 Overview of Closing a Project 19. Evaluating the project: o Compare the project objectives with the actuals and write the End Project Report. Reproduced under license from OGC Fig 19. o The information comes from the Issue Log (outstanding comments.Once during project -. Foundation Q&A Workbook .Once per stage -. o The Project Board will use this to notify stakeholders that the project is closed. • Updated CIR (Configuration Item Records): o Make sure the all product CIR documents are up to date. CP Outputs • Lessons Report: o This information will come from the Lessons Log.com Directing a Project (DP) Give ad hoc direction Premature close Auth. Direction Project Board by Frank Turley www.Many times during stage -. etc. 5.5 CP Inputs and Outputs CP Inputs • As you can see. Recommending project closure: o Send a notification to the Project Board to close the project. project closure Closing a Project Controlling a Stage Project end approaching Management Project Manager Prepare planned closure Hand over products Prepare Premature closure Evaluate the project -.SAMPLE Management Plaza . there are two triggers for the Closing a Project process: a natural close towards the end of the project and a premature close. • End Project Report. Benefits Review Plan.MgmtPlaza.6 CP Roles and Responsibilities Role Project Manager Project Support Responsibilities • Create or update all CP management documents. Request to the Project Board • Finally the Project Manager will send a Closure recommendation to the Project Board. Foundation Q&A Workbook . o The Project Manager will use the Project Plan. all records.SAMPLE Management Plaza .2 CP Inputs and Outputs 19. • Assist the Project Manager (CIR documents.com Draft project closure Notification Doc. etc. Lessons Report. etc. Inputs Project End Approaching Process – Inputs / Outputs Outputs End Project Report Premature close Follow on Action recommendations PID (Plan) Updated CIR Stage Plan Closing a Project 3 Register Files Lessons Log Benefits Review Plan Product Status Account by Frank Turley. www. Updated Benefits Review Plan Lessons Report Closure recommendation Fig 19.). Business Case and most other information in the baselined PID to create this End Project Report.Closing a Project 126 • End Project Report: o This is a report on the performance of the project. 2c Direction Project Board Auth. • Know the objectives of the CP process. Foundation Q&A Workbook .3 Themes in CP Process 19.7 How Themes are applied in the CP process (NR) Corp. BRP Organization Closure Notification Plans Project Plan Change Configuration Item Records Progress Follow-on Actions. Business Case Project Plan CIR docs (cmdb) Closing a Project er Fig 19. • Have an understanding of what happens in the CP process in relation to the rest of the project. project closure Created End Project Rpt How themes are used: CP process (summary) Business Case Business Case.8 What you need to know for the Foundation Exam You just need to know the following. Use the Foundation Q&A Workbook to learn more about the types of exam questions to expect. Pl.com Version 1.. + Proof of Acceptance Updated Benefits Rev. Corporate or Programme Management Directing a Project by Frank Turley Management-Plaza. Lessons Report Management Project Manager Follow on Actions Lessons Report Draft Closure Not. • Know the purpose of the CP process.SAMPLE Management Plaza .Closing a Project 127 19. Tailoring is about thinking how best to apply the method to a project to get a good balance of project control and low administration. 20. to match existing standards)? Foundation Q&A Workbook . They don’t realize that they could or rather. Also the administrative overhead does not need to be more than 2 or 3 pages of text. but it is important if you want to become a good PRINCE2 Project Manager. The type of information that can be changed in PRINCE2. it is good to be aware of what is meant by tailoring. procedures. while Tailoring is done by the Project Manager to adapt the method to each project. you would see that most of the same mistakes are repeated by the Project Managers and a project method would help them a lot. The example that I give is the TV show The Apprentice. No Tailoring at all If the method is not tailored for a project. 20. Tailoring refers to the appropriate use of PRINCE2 in any project. People's first impression of tailoring is to choose bits from the PRINCE2 method and use them to manage a project. control. The objective is to apply a level of project management that does not overburden the project but provides an appropriate level of control.Tailoring PRINCE2 to the project environment (NR) 128 20 Tailoring PRINCE2 to the project environment (NR) 20. you just need to be aware of tailoring and understand why it is useful. Again. If you were to watch The Apprentice. should tailor the project method to suit their project and not increase the complexity in their project to suit PRINCE2. It is not so easy to read this chapter if you are new to PRINCE2 or Project Management. Some of the things you will consider are: • • • • How to adapt the themes? Which terms/language should be incorporated? Is there a need to revise product descriptions for the administration products (known as “Management Products”) to make more sense to the stakeholders? Is there a need to revise the Role descriptions for the PRINCE2 project roles (for example. themes and processes to use? Embedding focuses on the adoption of PRINCE2 across an organization. however.2 What is Tailoring? PRINCE2 can be used in any type of project but the common question is how best to apply PRINCE2 to run a specific project. where each week there is a new two-day project. so it is concerned with standards.SAMPLE Management Plaza . integration and so on. there is not much attention given to Tailoring in the PRINCE2 Practitioner classroom course or exam. which is very little. It’s really for the Practitioner Course and even then. This is also known as robotic project management where the method is followed blindly. For the Foundation Exam you don’t need to know this information. Two teams compete with each other and both have a Project Manager. You will learn the following: • • What tailoring is and the general approach to tailoring. these bits become isolated and it is not a PRINCE2 project anymore. So tailoring answers the following question: What is the correct amount of planning. then the project is not being run efficiently. you don’t need to know much about tailoring for the exam. For now.1 Introduction and What is Tailoring? Let us take a look at what you will learn in this chapter on Tailoring PRINCE2. and I have done my best to simplify this information to make it easier to understand.3 General Approach to Tailoring There are many who think that they don’t need a project management method because their projects are too small or there is too much overhead in using a method. a company might not use a Project Support desk. The outputs from this project might be the majority of management products that are done in the first two processes. There is nothing to change here. Since principles are always present. Adapting the Processes All processes must be tailored but these can be different for each project. Another company might have a Project Management Office and a person responsible for a Benefits Review Plan. therefore.Tailoring PRINCE2 to the project environment (NR) 129 20. Another project may follow a feasibility study project. so the Project Manager will have to find another person to do Configuration Management. Configuration Management and Communications. The four themes mentioned here have Strategy Documents that are adapted to suit the project in the Initiation stage. then a good place to start is by asking what the Project Manager would do different if they were to do the project again. It may be a good idea to use these terms during the project instead of the PRINCE2 terms. For instance. If you already have had the opportunity to work on a project. a project may need a different Configuration Items Record template as it deals with different kinds of products. For example. For example. Foundation Q&A Workbook . a Project Management Office may wish to start a project. It will become easier to understand as you get more experienced with PRINCE2. then the subject of tailoring can be difficult to understand at first. I will comment on each with regard to what to change when tailoring PRINCE2 to suit the current project: Principles This is easy.5 Level of Experience to Do Tailoring If you are new to PRINCE2 and project management. the responsibility should be changed. Just realize that Tailoring does happen. Themes: Adapting the Themes The various Themes include Quality. some companies refer to a Project Brief as a Project Charter. all 7 principles have to be present in each project. Terms and Language Each organization can have their specific business language. These may be adjusted to incorporate how a company may work.SAMPLE Management Plaza . Adapting the Management Products PRINCE2 provides the Management Products to assist in running the project. For instance. or a Business Case as a Project Case. It becomes much easier to tailor projects for PRINCE2 if you have both good project management and PRINCE2 experience. 20.4 What to change when tailoring Here is a list of all the major parts of PRINCE2. it may already be able to supply the Project Brief with an outline of the Business Case. Risk. Adapting the Roles PRINCE2 provides standard Roles descriptions in Appendix C but these should be adapted for each project. but instead of starting with a project mandate. so it cannot be changed. Just imagine a list of criteria arranged in the order of importance in a spreadsheet. Acceptance Criteria This is a list of criteria that the final output of the project must satisfy for the customer to accept it. whenever a risk appears. Business Case This is a document that explains the reasons for the project. During the project lifetime. as the baselined version cannot be changed. Customer The customer will specify the desired outcome of the project. For more information you can also refer to the official PRINCE2 glossary. The Communication Management Strategy provides an organized approach to deliver reports on a timely basis to those who need the information for decision-making and/or other purposes. where necessary. Foundation Q&A Workbook . Example 1: If a company is running a project to develop and implement a new CRM application. risks and benefits. Baseline Once a product is baselined. in terms of cost. but in the end. then a new version of the mailing list must be created. which you can find here. to provide examples to help explain. the odds should be weighed against the Business Case to check if the benefits still exist within the expected time and cost constraints. Communication Management Strategy It defines the method and frequency of the information exchange. will be representative to those who are going to use the final product. and will probably pay for the project. the traffic of communication and reporting may be higher. an important new requirement has been added. Example 2: A mailing list for an event has been approved and will be baselined and given a version number. Example 2: During the project.000. Throughout the project. Example 1: The Project Plan is defined. The Project Board can compare the baselined Project Plan with the current project plan to see how well the project is going compared to the original expectations. it becomes a fixed reference for subsequent versions of the same product. Each entry should be discussed and confirmed by both the customer and the supplier.SAMPLE Management Plaza . only when all the criteria are met and each box is ticked off can the project be closed. agreed and signed off at the start of the project. During the start-up. The Project Plan will be updated during the project to show what has been done. Remember PRINCE2 is based on a Customer/Supplier environment and both will be represented on the Project Board. Example 1: The Communication Management Strategy document may show that it has been agreed that the Project Manager will send a two-page Highlight Report to the Project Board every two weeks on a Thursday morning in a certain format. If changes need to be made to it. This connection to the stock application will cost an extra €30. A new feature will be added to allow users to see if items they wish to order are in stock. so the business case must be updated to reflect this increase in cost and see if the project is still worth doing. the acceptance criteria can be refined and changed. It explains in detail why the project should be done and why the final outcome is desired.Tailoring PRINCE2 to the project environment (NR) 130 Appendix A Simple Glossary by Frank Turley and Eralp Tezcan Based on the PRINCE2 Glossary from the book: “Managing Successful Projects with PRINCE2” Note: For Assessor: This following text has already been approved in the Introduction to PRINCE2 book by Frank Turley Introduction The goal of this glossary is to provide a simple explanation for the more popular PRINCE2 terms and. will be the owner of the final product of the project. the Business Case should include the improved efficiency for client management so more clients could be handled within a certain period of time. Date Raised. The report can confirm that the stage runs within tolerances and the Project Manager can also point out any foreseeable problems. It provides an overview of what went well and not so well.: It may be agreed that the Project Manager will send this every two weeks on a certain day and with a specific format. The three categories for an issue are: (1) a request for change.g.g. and a review of how well the project went according to the Project Plan. It will also include a review of the benefits reached so far. possible activities that should be done for some products). This report is created by the Project Manager using information from the Lesson Log and given to the Project Board always at the end of the project. Issue This is defined as any event related to the project that has already happened and requires the intervention of the Project Manager or higher management.SAMPLE Management Plaza . End Project Report The End Project Report is the Project Manager’s report to the Project Board that confirms delivery of outputs to the customer.: unfinished work. Lessons Report A document that lists the lessons gained during the project. Issue Register This is a log that captures and keeps track of all formal issues. an email or a few slides. Current Status. The Executive is also responsible for making sure the project runs within the framework of the Business Case and has the final say in the Project Board. Raised By. and then entered into the Issue Register. and represents the Customer. ongoing issues that are taken from the Issue Register. (2) an offspecification (something that the supplier was not able to do as planned). Follow-up on action recommendations This is a report that is created by the Project Manager at the end of a project (or at the end of a stage) that puts together recommendations on how to handle incomplete outputs. and (3) a problem or a concern. In large projects. He or she is responsible for the Business Case. All issues that need to be handled formally will first be examined and classified into one of three types of issues. this can be very important for the persons who are going to take over the maintenance of the products. Highlight Report This is a report on the stage progress prepared regularly by the Project Manager for the Project Board.or 3-page overview). Just imagine a spreadsheet where each line is an issue and there are columns for Issue ID. It can also confirm that products have been accepted by the customer. Executive The Executive is the chairperson of the Project Board. and Close Date. The frequency for this report is indicated in the Communication Management Strategy (e. As you can imagine. End Stage Report This is the Project Manager’s report to the Project Board that provides information on project performance during each stage and the overall project status up to that point. a review of the benefits as compared to the expected benefits that were listed in the Business Case. and a review of the Issues and Risks. it can also be created at the end of a stage.Tailoring PRINCE2 to the project environment (NR) 131 The term “Customer” can also refer to both User and Business interests. Description. It is regularly monitored by the Project Manager throughout the project. Issue Type. It helps to avoid possible mistakes and to repeat positive actions in future projects. Any important lessons that can be applied to future projects should be listed in the Lessons Report. This can be a structured document. An End Stage Report should contain a forecast for the next stage. which can be a 2. Foundation Q&A Workbook . and is the person responsible to ensure the project satisfies its goals and delivers the intended benefits. This will help the Project Board to decide whether to continue the project or not. and existing risks (e. Step 3: Write a Product Description for each part mentioned in the Product Breakdown structure (e. You could also say that management products are byproducts of the project. A product is defined as soon as its need is identified. A PRINCE2 project creates two kinds of products. Laptop Specifications and Features (including information on Quality). hard-drive overview information. Product Checklist This is a list of all the major products to be produced. Draft Ready Date – Plan and Actual. a mind-map diagram. and you may have another branch for external connection adapters.. hard-drive and case. Step 4: Create Product flow diagram: This defines the sequence in which the Project Product will be created. network. You might place keyboard and mouse pad under a branch labeled “Input Devices”. This could either be a top-down diagram.Tailoring PRINCE2 to the project environment (NR) 132 Product A product is any input to a project or any output produced during the project.g. should have product descriptions. power. specifications.: Project Plan. mouse. Business Case). Technical products. USB. The plan is broken down into its major products and these products are listed in priority according to their dependencies. Example 1: Imagine you are building a new prototype laptop: The Product Flow Diagram may show that you start with the bottom casing and then add the metal linings. along with their dates of delivery. Example: Think of a Product Description for the hard drive of a laptop. Example: A Laptop Prototype: You would list and link all the parts that make up the laptop in a diagram. Product Flow Diagram This is a diagram that shows the order of production and the prerequisites for each product defined in the Product Breakdown Structure. etc. Some Project Managers use this as their main document for this purpose. indented list. Product Breakdown Structure This is a ranking list of all the products defined in the plan. You will have an overview description: e. Quality Check Date – Plan and Actual. and Approved Date – Plan and Actual. Product Description This is the information on the product’s purpose. derivation and quality criteria. Step 2: Create Product Breakdown Structure: This is a sorted list in a diagram of all the parts that make up the laptop. harddrive and case. Product Title. Example: A new laptop prototype – You may decide to start with products that are manufactured in house and add products that are outsourced. and a list of parts. mouse. specialist products and management products. such as keyboard. Foundation Q&A Workbook . The flow diagram must represent the sequence of how the product will be created. and then the motherboard and the rest of the parts in sequence until the laptop is built. memory. Quality Requirements (and how this will be tested). and earphone.g. composition.g. You may put keyboard and mouse under a branch labeled as Input devices. memory. motherboard.. such as keyboard. Projects are started to create the specialist products and these are the products that will be given to the users. There are four steps in a Product-Based Plan: Step 1: Write the Project Product Description: Just imagine the information you might see on a website about a laptop: Laptop Overview. such video. Product-based planning This is a PRINCE2 technique used to create a detailed plan that focuses on the required products before even thinking about activities. Features. as well as management products. Product Description Approved Date. Management products are documents used solely for the purpose of communication among the project management team (e. This checklist is a great way to see how the project is progressing. Specifications. motherboard. Imagine a spreadsheet with a number of columns like Product ID. features and quality information).SAMPLE Management Plaza . Project Brief A document that contains the following information collected during the Pre-project process “The Starting up a Project”. It is not updated during the project. cost and quality. cost. supplier and business areas. Business Case. Project Lifecycle This is the time between the start of the project and the acceptance of the product or the close of the project. To achieve this. this is their first decision. who the executive should be. Project Mandate Information provided by the upper management outlining what is desired from the project. the Project Manager is expected to run the project according to the project plan as efficiently as possible.SAMPLE Management Plaza . reasons for the project. an Outline of the Business Case. It is also used to communicate the project to its stakeholders. The Project Definition includes background information. delegating. these are the documents that were created during the Initiation Stage that describe how the project will be done in detail. The best way to explain Project Assurance is to look at why we need it. This includes the management of human and nonhuman resources within the limits of time. so they can check if the products reported to be created have actually been created. project tolerances. In other words. This is an external document used as an input for the Starting up a Project process. Project Description.Tailoring PRINCE2 to the project environment (NR) 133 Example 2: Think of an instruction diagram that comes with a flat pack piece of furniture from IKEA. Project Assurance The Project Board is responsible for monitoring the project’s performance in the user. After each change. The Project Manager may be hiding information or providing misinformation to the Project Board. Project Management This refers to the conducting of the project by planning. the Board may decide to delegate its assurance functions to another entity to make sure the project runs smoothly. Risk Register. The project mandate can contain some basic information on the business case. Therefore. A good way to think about the contents of a PID is to think of the Themes. by looking for opportunities to speed up the project and reduce cost. The Project Management Team is disbanded at the end of the project. and Team Structure. Project Management Team This defines the total management structure of the project from top to bottom – from the Project Board to the Project Manager to the Team Managers and the support staff. This is also a sequence of different stages during the creation of a product. time. It includes the Project Plan. or a structured document. Project Initiation Documentation (PID) This set of documents contains essential information to start the project. every document is baselined for future comparison. In other words. Project Team Structure and Project Approach. for example. It is used by the Project Board to decide if they will continue with the initiation stage of the project and therefore spend money. Project Manager This is the person appointed by the Project Board to manage the daily progress of the project to deliver the end-product within the limits set by the Board or. 4 Strategy Documents. The Project Board reviews the Project Initiation Documentation in order to authorize the start of the project. among others. and risk information. Foundation Q&A Workbook . It is a temporary structure solely established to manage the project to a successful conclusion. an internal memo. The documents in the Project Initiation Documentation are subject to change throughout the project. quality and scope. This can be an email. follow-up maintenance and support is not part of the project lifecycle but happens after the project has closed. therefore. monitoring and controlling all sides of the project in view of the project objectives by creating the project plan and then running the project according to this plan. This is Project Assurance. the Project Board needs an independent view of how the project is really going. responsibilities. the will have risks and they need to be managed. Risk Description. The Senior User is responsible to ensure that the product satisfies the quality and functionality requirements of the user. Project Plan This is a control document for measuring progress. it can show what has to be done day to day. some quality questions would be: How easy should the product be to use? and What percentage of features should work when launched (this could be 99%)? e. It is created at the Initiation Stage and becomes a part of the Project Initiation documentation. As projects are unique in nature. and Risk Owner. (2) The project plan lists all products that will be produced during the project. Risk Status. The supplier can be an in-house department or an external company. Risk Category. their delivery dates and cost. if it occurs. For example. Risk Register This is a log of possible risks that the project faces. Date Registered. Impact. and quality information.for example. It is kept up to date during the project by the Project Manager. Risks are constantly reviewed during the project using the Risk Register. The Quality Management Strategy contains the following information: • Any special quality management procedure to be followed • Any records that will be checked including tools and techniques to be used • How reporting on the quality management procedure performance will occur • The roles and responsibilities for quality management activities Quality Quality is a product’s ability to satisfy its intended properties by meeting expectations. but differs in two ways: (1) The project plan is very high-level. requirements and specifications. while the stage plan is much more detailed -. and tolerance.SAMPLE Management Plaza . Imagine a spreadsheet with the following columns: Risk ID. which includes the Quality planning and Quality control. product breakdown structure. It is not just a Gantt chart but it contains product descriptions. One of the first questions you should ask when defining the Project is what quality is expected. Risk Author. while the stage plan is focused just on the products that will be created during a particular stage. Proximity.. Quality Management Strategy This management document outlines how quality will be carried out in the project. Their main concern throughout the project is “Will it Work as expected?” Stage Plan: A Stage Plan is created by the project manager and has a similar structure to the Project Plan. They represent the Users’ Interests. such as a search. if you are developing a CRM system. Senior Supplier Senior Supplier is a Project Board role that represents the interests of those who are going to deliver the desired products. may have a positive or negative effect on the project’s objectives. as well as the quality objectives and how these will be achieved.Tailoring PRINCE2 to the project environment (NR) 134 The information in the project mandate document is expanded into the Project Brief in the Starting Up a Project process. the time delay to carry out specific activities.g. Documenting the quality requirements really helps to define the project product and therefore the project. Foundation Q&A Workbook . It shows the required products of the project. Risk Risk is an event that. how stages are used. how the project will be controlled. Their main concern throughout the project is “Can it be done?” and “Can it be done within the agreed time and cost and quality?” Senior User The Senior User is a Project Board role that represents the future users of the project’s product. lessons. the Business Case and risks. the state of the Project Plan. how the TM will report to the PM. they will receive the benefits of the project. Such stages are technical stages and are a separate concept from management stages. The Project Board members are very busy and don't want to be bothered every hour by the PM. A solution can be to split the product into 2 products. Tolerance The estimated time and cost allowance in the project plan to tolerate possible deviations without the need of the Project Board intervention. and let the Project Manager get on with it. One difference is that Management Stages can never overlap.g. User(s): The end-users of the project’s final deliverable. quality. Therefore. and the Approved Training Material product is produced in the next Management Stage. A Work Package is therefore a set of information about one or more required products. This results in stages covering elements such as design. Technical Stage: A grouping of a certain set of techniques used in the development of the product. and the final output is approved training material. tolerances. techniques to be used. So the Project Manager looks to see how they can divide this work into two separate Management Stages.SAMPLE Management Plaza . There are two types of stages Management Stages and Technical Stages. A Work Package can contain the following: a Work Package description. product descriptions. while the Technical Stages can. cost. benefits. Team Plans are optional. They are told to alert the Project Board only if it has been forecast that the project could go above one of these tolerances. A first product could be Draft Training and the complete product could be the Approved Training Material. Management Stage: A PRINCE2 project is divided into stages and each stage is separated by a decision from the Project Board to continue to the next stage or not. and Quality information. The Project Manager may request to review the Team Plan to get a better idea of how the work will be done. Building and Training may overlap. Work Package: Work Packages are a way for the Project Manager to group work activities together and assign work to a team or Team Manager to produce one or more products. Technical Stage: A method of grouping work together by the set of techniques used or the products created. Example: There may be a Training Technical stage that spans two Management Stages. Designing. and implementation. and the next Stage Plan in order to decide whether to continue with the project. So how can the Project Manager manage Technical Stages from PRINCE2? The PRINCE2 Project Manager uses Management Stages so they see which products are created in the Technical Stages and place these in the corresponding Management Stage. For every small issue that the Project Manager would have.. This would happen many times each day and the Project Board would end up running the project. scope and risk. Team Plan A Team Plan is created by the Team Manager to plan the execution of the activities that are agreed with the project manager. date of agreement between PM and TM.Tailoring PRINCE2 to the project environment (NR) 135 Stages (Management Stages and Technical Stages) Management Stage: The section of a project that the Project Manager is managing on behalf of the Project Board at any one time. the Draft Training product could be produced in the first Management Stage. PRINCE2 does not provide a format for a Team Plan. These activities are grouped together into Work Packages and a Team Plan can be for one or more Work Packages. so they give them tolerances for time. e. so the Team Manager could use a simple task list in Excel or MS Project. they would contact the Project Board. Imagine if there was no tolerance in a project. or could create a plan that looks like a Stage Plan. at the end of which the Project Board will wish to review progress to-date. Foundation Q&A Workbook . build.