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Ken Bradley’s
Understanding PRINCE 2®®
PRINCE is a Registered Trademark of CCTA
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Ken Bradley’s Understanding PRINCE 2
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ISBN 1 902192 00 1
Published by:
SPOCE Project Management Limited
Homelife House
Oxford Road
Bournemouth, Dorset
BH8 8EZ
Telephone & Fax: 01202-780740
Switchboard: 01202-319987
E-Mail: [email protected]
Information: www.spoce.com
PRINCE is a Registered Trademark of CCTA
© Ken Bradley 1997
First Published October 1997
Revised and reprinted February 1999
All rights reserved by the copyright holder and the licensee. No part of this publication may be
reproduced in any material form (including photocopying and/or storage in any medium by
electronic means and whether or not transiently or incidentally to some other use of this
publication) without the written permission of the copyright holder identified above, except in
accordance with the provisions of the Copyright Designs and Patents Act 1988. Applications for
the copyright holder’s written permission to reproduce any part of this publication should be
addressed to the publisher at the address above.
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Dedication
This book is dedicated to the many clients and friends who over the past two
decades have put their trust and key projects into my hands, often for just the first
few critical weeks of life and sometimes for support from cradle to grave. Thanks
also go to the “SPOCETTES” Carol and Livia who have used their charm and
charisma to ensure that this project was delivered on time, to the agreed plan and
only marginally over budget!
Ken Bradley
What Others Say About This Book
“An excellent companion to the CCTA PRINCE 2 Reference Manual. The many
clear diagrams and supporting text answer the questions What should I do now? –
and Why?”
Martin Shepherd
ICL HR Consultancy
“This book provides a comprehensive and practical exposition of the PRINCE 2
Method and truly lives up to its title. Ken Bradley’s practical experience of
managing projects, together with his understanding of the needs of Project
Managers, whether new to the profession or old hands, gleaned from many years
of providing consultancy and training is evident through the techniques and best
practice tips that abound in this publication.”
Dave Rose, Principal Consultant
Project Management
Devon IT Services
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LIST OF CONTENTS
Foreword ................................................................................................................................... 13
Who This Publication Is Intended For ......................................................................................... 13
Origins Of The PRINCE 2 Method.............................................................................................. 17
The PROMPT Methodology........................................................................................................ 17
Government PROMPT................................................................................................................ 17
The Standard PROMPT Lifecycle ............................................................................................... 18
PROMPT Organisation - Stage Managers................................................................................... 18
PROMPT Planning..................................................................................................................... 19
The Enhancement Project And PRINCE...................................................................................... 19
PRINCE 2 And Other Developments ........................................................................................... 20
Introduction To PRINCE 2.......................................................................................................... 25
Benefits Of PRINCE 2 ................................................................................................................ 25
The Structure Of A PRINCE 2 Project......................................................................................... 26
The Key Elements Contained In PRINCE 2 ................................................................................. 28
The PRINCE 2 Processes............................................................................................................ 29
The PRINCE 2 Components:....................................................................................................... 30
The PRINCE 2 Techniques.......................................................................................................... 32
The Organisation Component ..................................................................................................... 33
The Project Board ...................................................................................................................... 34
The Project Manager.................................................................................................................. 35
The Team Manager..................................................................................................................... 35
Project Resources And (Specialist) Teams................................................................................... 36
Project Assurance....................................................................................................................... 36
Project Support .......................................................................................................................... 37
The Project Support Office.......................................................................................................... 37
Summary Of The Organisation Component ................................................................................. 37
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PRINCE 2 Planning.................................................................................................................... 38
Products Or Deliverables And Related Activities........................................................................ 38
Planning For The Delivery Of Specialist Products ...................................................................... 40
Resource Planning & Reporting.................................................................................................. 41
Quality Planning -BS/EN/ISO9001 ............................................................................................. 42
Tolerance And Planning ............................................................................................................. 43
The Controls Component ............................................................................................................ 44
Management Controls ................................................................................................................ 44
Project Initiation ........................................................................................................................ 44
End Stage Assessment (ESA)....................................................................................................... 45
Mid Stage Assessment (MSA)...................................................................................................... 45
Tolerance....................................................................................... ............................................ 46
Project Closure .......................................................................................................................... 47
Highlight Reports ....................................................................................................................... 48
Stages......................................................................................................................................... 48
Business Benefits And Risk Management..................................................................................... 49
Planning For Quality.................................................................................................................. 50
Quality Controls - Quality Review............................................................................................... 50
Change Control.......................................................................................................................... 52
Configuration Management ........................................................................................................ 52
Filing Arrangements................................................................................................................... 53
Software Support For PRINCE 2 ................................................................................................ 53
Following This Introduction........................................................................................................ 54
PRINCE 2 Organisation - Introduction ....................................................................................... 57
Responsibilities In A PRINCE 2 Controlled Project.................................................................... 58
The Project Board ...................................................................................................................... 58
The Executive Role ..................................................................................................................... 59
The Senior User Role.................................................................................................................. 59
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The Senior Supplier Role ............................................................................................................ 59
Responsibilities Of The Project Board Members.......................................................................... 59
The Project Assurance Function ................................................................................................. 60
Delegation Of Day-To-Day Project Assurance ............................................................................ 61
The Project Manager.................................................................................................................. 61
Team Manager(s) ....................................................................................................................... 62
Responsibilities Of The Team Manager....................................................................................... 63
Team Managers And Technical Stages........................................................................................ 64
Project Support .......................................................................................................................... 64
Customer:Supplier Environment..................................................... ............................................ 65
Developments On The PRINCE 2 Theme..................................................................................... 66
The Supplier Project Board ........................................................................................................ 67
Customer: Supplier Steering/Co-Ordinating Group..................................................................... 68
Customer: Supplier Project Manager.......................................................................................... 69
Customer:Supplier - Project Support .......................................................................................... 69
Organising The Managing Of Programmes................................................................................. 69
Programme Board, Programme Manager & Programme Support ............................................... 70
User/Customer Group In A Programme Context ......................................................................... 71
Individual Project Boards In A Programme Context.................................................................... 71
Project Support & Programme Assurance................................................................................... 71
Programme And Project Resources............................................................................................. 72
Other Structures Based On PRINCE 2 ........................................................................................ 72
PRINCE 2 Organisation - Summary........................................................................................... 74
Planning - Introduction & Overview ........................................................................................... 76
Project Level Plans..................................................................................................................... 77
Product Breakdown Structure..................................................................................................... 78
Product Flow Diagram................................................................... ............................................ 80
PERT Network............................................................................................................................ 81
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The PERT Logic Network & The Timed Network......................................................................... 81
Earliest Start Gantt Plan ............................................................................................................ 82
Resource Smoothing ................................................................................................................... 82
Project Gantt Plan...................................................................................................................... 84
Project Resource Reporting ........................................................................................................ 84
Graphical Summary.................................................................................................................... 85
Earned Value Analysis................................................................................................................ 86
Risk Analysis .............................................................................................................................. 87
Measuring The Business Benefits ................................................................................................ 88
Project Plan Text........................................................................................................................ 89
Management Stage Plans............................................................................................................ 89
Team Plans ................................................................................................................................ 91
Individual Plans ......................................................................................................................... 91
PRINCE 2 Planning - Summary.................................................................................................. 91
Introduction To Controls ............................................................................................................ 94
Management Controls ................................................................................................................ 94
The Project Initiation Meeting .................................................................................................... 95
Project Initiation & The Project Initiation Document (PID) ............ ............................................ 96
End Stage Assessment (ESA)....................................................................................................... 96
Attendees At An End Stage Assessment........................................................................................ 97
End Stage Assessment Agenda .................................................................................................... 97
Mid Stage Assessment (MSA)...................................................................................................... 98
Tolerance....................................................................................... ............................................ 99
Project Closure ........................................................................................................................ 102
Highlight Reports ..................................................................................................................... 102
Checkpoint Reports .................................................................................................................. 103
Stages....................................................................................................................................... 103
Management & Technical Stages.............................................................................................. 107
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Management Stages.................................................................................................................. 108
Updating The Business Case..................................................................................................... 108
Technical Stages....................................................................................................................... 109
Handling The End Of A Management Stage .................................... .......................................... 109
Stages - Summary ..................................................................................................................... 110
Risk Management - Introduction............................................................................................... 113
Risk Ranges & Risk Factors...................................................................................................... 114
Updating The Risk Analysis ...................................................................................................... 115
Modifying The Risk Analysis Checklist ...................................................................................... 116
PRINCE 2 &BS/EN/ISO9001.................................................................................................... 123
Quality Management ................................................................................................................ 123
Customer Quality Expectations................................................................................................. 124
Quality Aspects For Suppliers & Sub-Contractors..................................................................... 124
Quality Management - Summary............................................................................................... 125
Configuration Management - Introduction ................................................................................ 129
Configuration Management Techniques .................................................................................... 129
CM Activities............................................................................................................................ 130
Change Control - Introduction.................................................................................................. 135
Project Issue............................................................................................................................. 135
Off Specifications ..................................................................................................................... 136
Request For Change................................................................................................................. 136
Change Control Forms And Documentation.............................................................................. 136
Change Control - Summary ...................................................................................................... 137
Introduction To Processes ......................................................................................................... 141
The Processes........................................................................................................................... 141
The PRINCE 2 Process Model .................................................................................................. 142
Major Processes And Processes ...................................................... .......................................... 143
Structure Of The Individual Process Models.............................................................................. 145
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Individual Process Summary Models........................................................................................ 147
Starting Up A Project (SU) - Introduction ................................................................................. 151
SU1 - Appointment Of A Project Board Executive And A Project Manager ................................ 152
SU2 & SU3 - The Project Management Team............................................................................ 153
SU5 - The Project Approach: .................................................................................................... 156
SU6 - The Initiation Stage Plan................................................................................................. 157
Starting Up A Project - Summary.............................................................................................. 158
Initiating A Project (IP) - Introduction...................................................................................... 163
The Project Initiation Document ............................................................................................... 163
IP1 - Planning For Quality ....................................................................................................... 165
IP2 - Planning A Project........................................................................................................... 166
IP3 - Refining The Business Case & Risks................................................................................. 168
IP4 - Setting Up Project Controls.............................................................................................. 169
Project Board Controls............................................................................................................. 169
Project Manager/Team Controls: .............................................................................................. 170
IP5 - Set Up Project Files ......................................................................................................... 171
IP6 - Assembling The Project Initiation Document .................................................................... 173
Approach To Assembling Or Producing The PID....................................................................... 174
Initiating A Project (IP) - Summary........................................................................................... 175
Directing A Project (DP) - Introduction .................................................................................... 181
Management By Exception................................................................ ........................................ 182
DP1 – Authorising Initiation..................................................................................................... 183
DP2 – Authorising A Project............................................................. ........................................ 184
DP3 – Authorising A Stage Or Exception Plan.......................................................................... 185
Approval Of Exception Plans.................................................................................................... 186
DP4 – Giving Ad-Hoc Direction ............................................................................................... 188
DP5 – Confirming Project Closure.................................................... ........................................ 189
Summary Of The DP Process.................................................................................................... 191
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Controlling A Stage (CS) - Introduction .................................................................................... 197
CS1 – Authorising A Work Package .......................................................................................... 199
CS2 – Assessing Progress ......................................................................................................... 200
CS3 - Capturing Project Issues ................................................................................................. 202
CS4 - Examining Project Issues ................................................................................................ 203
CS5 - Reviewing Stage Status.................................................................................................... 204
CS6 - Reporting Highlights............................................................... ........................................ 205
CS7 - Taking Corrective Action ................................................................................................ 207
CS8 - Escalating Project Issues................................................................................................. 208
CS9 - Receiving A Completed Work Package ............................................................................ 209
Summary Of The Controlling A Stage Process........................................................................... 210
Managing Product Delivery (MP) - Introduction....................................................................... 215
MP1 - Accepting A Work Package............................................................................................. 217
MP2 - Executing A Work Package............................................................................................. 218
MP3 - Delivering A Work Package............................................................................................ 219
Managing Stage Boundaries (SB) - Introduction ....................................................................... 223
Exception Plans........................................................................................................................ 224
SB1 - Planning A Stage............................................................................................................. 225
SB2 - Updating A Project Plan ................................................................................................. 226
SB3 - Updating A Project Business Case................................................................................... 227
SB4 -Updating The Risk Log..................................................................................................... 228
SB5 - Reporting Stage End........................................................................................................ 229
SB6 - Producing An Exception Plan.......................................................................................... 231
Summary Of The Managing Stage Boundaries Process.............................................................. 232
Closing A Project (CP) - Introduction ....................................................................................... 237
CP1 - Decommissioning A Project ............................................................................................ 239
CP2 - Identifying Follow-On Actions ........................................................................................ 241
CP3 – Project Evaluation Review............................................................................................. 242
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Summary Of The Closing A Project Process.............................................................................. 243
Planning (PL) - Introduction.................................................................................................... 247
PL1 - Designing A Plan............................................................................................................ 249
PL2 - Identifying, Defining And Analysing Products.................................................................. 250
PL3 - Identifying Activities And Dependencies .......................................................................... 252
PL4 - Estimating....................................................................................................................... 253
PL5 - Scheduling ...................................................................................................................... 254
PL6 - Analysing Risks............................................................................................................... 255
PL7 - Completing A Plan................................................................ .......................................... 256
Summary Of The Planning (PL) Process ................................................................................... 257
PRINCE 2 Filing Technique - Introduction ............................................................................... 261
The Management File..................................................................... .......................................... 261
Physical Filing Considerations ................................................................................................. 266
Quality Review Technique - Introduction .................................................................................. 269
Quality Assurance And Quality Control .................................................................................... 269
What Is A Quality Review?........................................................................................................ 269
Quality Reviews - Formal And Informal.................................................................................... 270
People Involved........................................................................................................................ 270
The Quality Review Steps......................................................................................................... 271
Step 1 - Preparation ................................................................................................................. 271
Step 2 - The Review Meeting .................................................................................................... 272
Step 3 - Follow-Up Of Review Meeting ..................................................................................... 273
Summary Of The Quality Review Technique.............................................................................. 274
Index........................................................................................................................................ 277
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FOREWORD
This publication is based on the PRINCE 2 Project Management Methodology. It has
been produced to help anybody involved in a PRINCE 2 controlled project to understand
the approaches used in the Method.
This re-print incorporates the additional material included in the new manual – “Managing
Successful Projects with PRINCE 2” published in October 1998.
The book aims to fill the gaps present in the PRINCE 2 Method – in order to do thiscertain assumptions have been made and these are based upon my own experience and
understanding of the practical use of PRINCE.
I hope you will not only find this publication of practical use in managing your projectsbut will also enjoy reading and learning from it. If you have any questions or observations
about the content of this publication, please contact me at SPOCE Project Management
Limited direct at (UK +44) 01202-780740 (Telephone & fax) or E-Mail [email protected]
Ken Bradley
February 1999
Who This Publication Is Intended For
PRINCE 2 is the UK Government standard for managing large projects and has been
widely adopted as the standard for project management for all types of projects within the
private and public sectors. PRINCE 2 was officially launched on 1 October 1996.
The book is aimed at Project Managers, project management staff, and anyone needing to
organise, plan and control an undertaking using a structured project managementapproach.
Although primarily a summary and interpretation of the PRINCE 2 project management
method, this publication provides an excellent start point for anyone wishing to understand
the principles and use of structured project management in any activity. It is also an
invaluable aid for anyone wishing to take the CCTA/APMG PRINCE 2 examinations.
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UNDERSTANDING THE
BACKGROUND
TO THE PRINCE METHODOLOGY
Chapter 1
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Origins of the PRINCE 2 Method
The PRINCE Methodology is a development of the PROMPT Methodology (Project
Resource Organisation Management Planning Technique) originally formulated in the mid
1970s. A private sector company, Simpact Systems Limited, evolved the PROMPT
Methodology to provide a suitable framework within which to manage the strategy,
feasibility study, development and support of Information Technology systems through a
structured project management approach.
The PROMPT Methodology
The PROMPT Methodology comprised five major components:
♦ PROMPT I - Strategic Planning
♦ PROMPT II - System Development
♦ PROMPT III - Operations, Maintenance and Enhancement
♦ QSTAR Quality Assurance
♦
PROMPT Software Support Tools (The PROMPT Aids).
Government PROMPT
In the early 1980s, the UK Government published a requirement for a project
management method to improve the management and control of government IT projects.Many different methods were proposed and evaluated, and the contract to license the use
of the Method was awarded to Simpact Systems Limited.
CCTA (Central Computer and Telecommunications Agency) acting for the UKGovernment commissioned some changes in the basic methodology. Chief amongst these
was the incorporation of the quality assurance aspects into the PROMPT II Methodology
to provide a product that was to become referred to as “Government PROMPT”.
Although CCTA licensed all the PROMPT Methodology, PROMPT II was the only
element fully implemented.
The belief was that Government Departments were already well supported in the
production of strategic plans, and that maintenance and enhancement aspects would be
easily handled providing development systems were properly supported by developmentand quality assurance documentation. PROMPT II was therefore considered to be the key
ingredient for success. Government PROMPT, incorporating PROMPT II principles only
was introduced into the major UK Government Departments in Spring 1983.
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The Standard PROMPT Lifecycle
Government PROMPT had a number of deficiencies from the start; for instance, a pre-
defined lifecycle provided the backbone for a PROMPT II project, but this caused someproblems with its view that IT projects broke down into standard stages of work
addressing Initiation, Specification, Design, Development, Installation, and Operation.
Many projects did not conform to this formula and inconsistencies were encountered.
Figure 1: The PROMPT Standard Six Stage Lifecycle
PROMPT Organisation - Stage Managers
The PROMPT II Method made no mention of Project Managers, instead relying on a
series of Stage Managers, each responsible for a pre-defined stage within the standard six
stage lifecycle.
The philosophy was that this left the way open to appoint the most appropriate individual
to manage each Stage of the project. The Specification Stage managed by a
User/Customer, the Design Stage by a Designer/Analyst, the Development Stage by a
Technical Programmer and the Installation and Operation Stages by User/Customers.
The Initiation Stage was typically managed by someone with sufficient technical expertise
to understand and plan the whole of the project.
Initiation Specification Design Development Installation Operation
The PROMPT II “Planning” Stages The PROMPT II “Action” Stages
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Figure 2: The PROMPT Organisation Structure
PROMPT Planning
The Government PROMPT Methodology also made no mention or use of Critical Path
Analysis, which was used extensively in major projects. In practice these omissions did
not cause real problems as training courses and consultancy support filled the gaps.However the methodology was perceived as being not quite complete, or indeed, relevant
to many projects.
The Enhancement Project and PRINCE
During 1987, CCTA determined to update the Methodology by reflecting the actual usage
of PROMPT II and by introducing modern project management ideas. These elements
were Product-based planning, formal Project Initiation procedures, a Project Manager role,
sharper focus on Quality Management, and Open Life-cycle planning.
Leading consultancy companies in project and quality management were contracted to
work with the PROMPT User Group and CCTA to incorporate the changes.
Senior Management - Strategic Direction
The Project Board
Senior User Senior Technical Executive
Project Assurance Team
* Business Assurance Co-ordinator * Technical Assurance Co-ordinator
* User Assurance Co-ordinator
Stage 3 ManagerDesign
Stage 1 ManagerInitiation
Stage 5 ManagerInstallation
Project Resources & Development Teams
Stage 4 Manager
Development
Stage 2 Manager
Specification
Stage 6 Manager
Operation
Assurance
Work Direction Administrative Support
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CCTA were keen to place the enhanced method into the public domain, as an openmethod, in order to enable suppliers of major IT systems (and their component parts) to
adhere to consistent standards when fulfilling UK Government contracts.
The overall objective was to provide a high-level of consistency throughout government
projects and to improve project management generally.
Meanwhile, LBMS (Learmonth & Burchett Management Systems) a major managementconsultancy company, who had developed SSADM (Structured Systems Analysis and
Design Methodology) under a CCTA contract, had acquired the PROMPT products and
name from Simpact Systems (which had ceased its commercial operations) and was
licensing the methodology successfully to the public and private sectors.
LBMS obviously could not agree to an enhanced version of PROMPT II being placed in
the public domain in direct competition with their own proprietary method, andnegotiations provided that the enhanced method be re-named PRINCE (Projects in
Controlled Environments) to meet this point.
PRINCE was introduced in April 1989 with full documentation and formal entry into the
public domain in January 1990. The PRINCE Methodology is now the UK Government
Standard for managing major projects. It has been widely adopted by private sector
companies both for use in government projects, and in many cases for their own internal
use. CCTA, with its collaborative partners (The Association for Project Management
Group, IBM UK Limited, and The Stationery Office) continues to pursue the acceptance
of PRINCE as “best practice” project management within the UK, Europe and worldwide.
PRINCE 2 and Other Developments
PRINCE 2 has now been developed, funded by CCTA and following extensive
consultation with users and organisations over a two year period. PRINCE 2 is “Process-
driven” (ie “what” and “why” but little in the way of “how”) addresses a wider base of
projects (IT and non-IT), Programmes of Work, Smaller Projects, Customer:Supplier:issues and introduces changes to the PRINCE version 1 Organisation component.
PRINCE 2 was formally launched by CCTA in London on 1 October 1996.
CCTA are working in collaborative partnership with a number of organisations (IBM(UK), The Stationery Office and the Association for Project Management Group) to
promote PRINCE. One of the partners, IBM (UK) Limited, has developed a software
support product based on their existing Process Integrator application, which provides a
full PRINCE 2 Environment, enabling the launch of specific software for planning, word-
processing and other office applications.
The package is particularly useful for managing the myriad of project documentation that
has to be created, updated, tracked and managed during the life of a project.
With PRINCE 2, CCTA has launched an accreditation and certification scheme providing
a vehicle for assuring users of PRINCE 2 that training and consultancy providers are
registered as competent and that training courses reflect a common syllabus withexaminations and certification at its conclusion.
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CCTA continue to support and develop the PRINCE 2 Method and a contribution is levied
from all those taking the APM Group Professional Examinations and registering as trained
PRINCE 2 Practitioners.
Future plans include companion volumes covering the “softer” aspects of project
management (leadership, delegation, appraisal etc) and Programme Management, Risk
Management, including examinations on these topics.
Further information can be obtained from CCTA Information Services on telephone:
(UK +44) (0)1603 704787
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Chapter
2
UNDERSTANDING THE BASICS
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Introduction to PRINCE 2
PRINCE (PRojects IN Controlled Environments) is a structured method for effective
management of any size or type of project. It is the standard method for use in UK
Government Departments and is widely used in the private sector, NHS and Local
Government. A growing number of overseas Governments and multi-national companieshave adopted the method, or integrated it within their existing project management
approaches. The Method is being promoted actively by the APM Group (APMG) as a
“Best Practice” project management approach.
Benefits of PRINCE 2
There are a number of benefits to be gained from introducing and using a structured
approach to project management; among the benefits of using PRINCE 2 are that it:
♦ identifies management, technical (specialist) and quality Products or Deliverables and
helps ensure that they are produced on time and to budget;
♦ focuses attention on the quality of Products or Deliverables;
♦ separates the management and technical/specialist aspects of Organisation, Planning
and Control;
♦ facilitates control at all levels;
♦ makes the project’s progress more visible to management;
♦ provides a communication medium for all staff working on the project;
♦ ensures that work progresses in the correct sequence;
♦ involves senior management in the project at the right time and in the right place;
♦ allows the project to be stopped and, if required, re-started completely under management control, at any time in the project’s life;
♦ is in the Public Domain and requires no license fee;
♦ has a well established User Group dedicated to the support, promotion and
strengthening of the method.
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The Structure Of A PRINCE 2 Project
Within a PRINCE 2 project environment, each project which is undertaken must:
♦ address all the processes concerned with establishing an effective project management
environment;
♦ have a stated business case indicating the benefits and risks of the venture;
♦ demonstrate a properly defined and unique set of Products or Deliverables;
♦ have a corresponding set of activities to construct the Products or Deliverables;
♦ identify appropriate resources to undertake the activities;
♦ have a finite life-span; suitable arrangements for control;
♦ identify an organisation structure with defined responsibilities;
♦ include a set of Processes with associated techniques which will help plan and control
the project and bring it to a successful conclusion.
A PRINCE 2 project is divided into a number of Management Stages, each forming a
distinct unit for management purposes. Like the project, a Stage is driven by a series of
Processes, has a defined set of products and activities, a finite life-span, control elements,and an organisational structure. The delivery of these products, to the agreed quality
standards, marks the completion of the Management Stage. PRINCE 2 defines:
♦ the organisation of the project and its stages;
♦ the processes which drive the undertaking;
♦ the structure and content of the project plans;
♦ basic project management techniques;
♦ a set of controls which ensure that the project is proceeding to plan.
These, together with the products of the project and the activities which produce them, theproject business case, all encompassed within a Quality Management framework, make
up the PRINCE 2 environment.
All products of a PRINCE 2 project are filed within a defined structure - the
"Configuration". Management, Specialist and Quality Products are identified and filed
separately.
The PRINCE 2 framework provides the flexibility to set stage boundaries which are
appropriate to the needs of the project. Management Stage boundaries are chosenaccording to:
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♦ the sequence of production of Products/Deliverables;
♦ the grouping of Products into self-contained sets or associated Processes;
♦ natural decision points for review and commitment of resources;
♦ the risks and business sensitivity of the project;
♦ the completion of one or more discrete Processes.
The project stages correspond to the steps in the natural project life-cycle towards the
eventual outcome. Thus the stage boundaries are normally defined to correspond to the
completion of the major Products to be built and key decisions concerning commitment of
resources that need to be made. Whatever the nature of the project, it is advisable to
define one or more planning and/or definition processes in the early part of the project'slife. PRINCE 2 provides two Processes to cater for this - “Starting Up A Project (SU)”
(where the early foundations for decision support are laid) and “Initiating A Project (IP)”
(where senior management are invited to commit to the undertaking and a baseline is
produced. The project is triggered by a “Project Mandate” which might take any form
from an informal request by a sponsor to a formal recommendation from a report.
PRINCE 2 recognises that few projects will be undertaken entirely in isolation. The
outputs from one project may be used as input by another project. There may be otherdependencies between projects, such as the use of shared resources. PRINCE 2, therefore,
provides a mechanism for defining the boundary of a project and its relationship to other
projects. A high-level context diagram is a useful mechanism for defining these
relationships.
Figure 3: Scoping Diagram showing Inputs and Outputs for the Project
The Scoping Diagram illustrated above is particularly useful when planning and managing
a Programme of Work where individual projects inter-relate with each other and it isnecessary to ensure that expected outputs from individual projects are anticipated and
planned for. When all individual project Context Diagrams are assembled to complete the
The Project Under
Development
Bullet List of the Main Functions to be produced, developed or bought-in
Key User Groups
Central LogisticsProject
Business Processes Cleaned Data
Parts Requisitions
Current System
MIS Project
Information
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programme “jigsaw” it will be apparent which outputs and inputs do not match, andappropriate action can be taken by the Programme Director/Manager.
The Key Elements Contained In PRINCE 2
To understand the content of the PRINCE 2 Project Management Method, the following
model showing the key elements should be studied:
Figure 4: Summary Model of the PRINCE 2 Method
The PRINCE 2 methodology applies three key elements to each project and to the
Management Stages within a project. These are summarised in the above Model and
described, briefly, in the following tables. The three elements are the Processes whichdrive the project management, Components and Techniques, which are used by each of the
Processes to effect the management of the project.
PROCESSESTECHNIQUES COMPONENTS* Starting Up A Project (SU)
* Initiating A Project (IP)
* Directing A Project (DP)
* Controlling A Stage (CS)
* Managing Product Delivery (MP)
* Managing Stage Boundaries (SB)
* Closing A Project (CP)
* Planning (PL)
* Product-Based Planning- Product Breakdown- Product Description- Product Flow Diagram
* Quality Reviews- Preparation, Review,
Follow-up
* Change Control- Capture, Logging,Assessment, Decision
* Project Filing Structure- Management File- Specialist File- Quality File
+ Existing Organisation Techniques already used within the host organisation
* Organisation- Structure & Role Descriptions
* Planning- Products, Activities, Resources
* Controls- Management, Team, Quality
* Stages- Management & Technical Stages
* Management of Risk- Risk Assessment & Management
* Quality in a Project Environment- Quality Requirements & Response
* Configuration Management- Tracking Products & Documentation
* Change Control- Capture & Assessment
PRINCE 2 SOFTWARE SUPPORT ENVIRONMENTEXPERIENCE, BEST PRACTICE, COMMONSENSE
ORGANISATION STANDARDS & APPROACHES; BUSINESS STANDARDS & ETHICSQUALITY MANAGEMENT SYSTEM (QMS) (ISO9001)
THE BUSINESS CASE* Business Benefits
RISK MANAGEMENT* Risk Analysis & Actions
* Risk Management
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The PRINCE 2 Processes
DESCRIPTION
REF
EXPLANATION
Starting Up A Project SU Establishes the Objectives and Approach to the
Project; Set up the Project Management Team;
Plans for the Initiation Process. This is a pre-
project Process, which looks to answer the
question “do we have a worthwhile and viableproject?” before asking for commitment of
resources to set up a project environment.
Initiating A Project IP Plans the whole Project in terms of its Products,
Activities, Resource Usage and Quality; Setsthe baseline for the Business Benefits & Risks.
Directing A Project DP Provides Authorisation for work to be carried
out and Resources to be committed.
Authorisation for Project Initiation and Project
Closure and, in some cases, its premature
termination. The Process is “owned” by the
Project Board – the ultimate authority for theProject - accountable for its overall success.
Controlling A Stage CS The basic day-to-day project management
Process - authorising work to create or change
Products (or Deliverables), collecting andreflecting “actuals”, assessing progress and
reporting to senior management. Capturing
proposed changes and errors and escalating
these, where appropriate to management.
Managing Product Delivery MP The main “workshop” for the project where the
majority of resources are consumed. This
Process is where the Products of the Project arecreated. Progress reports (Checkpoint Reports)
are provided to the Project Manager. Quality
Review and Delivery of Products occurs here.
Managing Stage Boundaries SB Reporting on the achievements of the Current
Management Stage and the impact on theoverall Project Plan and Business Case.
Planning the Next Stage (Products, Activities,
Resource Usage). Putting together Exception
Plans when the Management Stage has suffered
a significant departure from its approved plan.
Closing A Project CP Preparation for closing the Project in an orderlyway. Customer sign-off, preparation of an End-
Project Report and identification of Lessons
Learned and Follow-on Recommendations.
Planning for a Post-Project Review.
Planning PL Used by all the other Processes - a common-to-
all Process featuring the design of the plan and
its creation.
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The PRINCE 2 Components:
DESCRIPTION
USED
BY
EXPLANATION
Organisation SU SB
Organisation Structure + Role Descriptions.Predominantly used in the “Starting Up A
Project” Process where the Executive and
Project Manager are appointed in the first
Process, and the Project Management Team is
designed and appointed. The Project
Management Team is reviewed at the end of each
Management Stage within “Managing Stage Boundaries”.
Planning SU
IP
CS
MP
SB
CP PL
DP
All Processes use the Planning Component. The
Initiation of the project is planned during
“Starting Up A Project”; the project itself is
planned in “Initiating A Project”; Stage plans
are prepared in “Managing Stage Boundaries”;
and Product planning is carried out in“Controlling A Stage” and “Managing Product
Delivery”. Follow-on actions, including
preparation of a Post-Project Review Plan are put
together in “Closing A Project”. “Directing A
Project” uses the approved plans throughout toconfirm the required progress.
Controls
SU IP
CS
MP
SB
CP
PL
DP
All the Processes use the Controls Component.The “control” Processes which make particular
use of this Component are “Initiating A Project”
(which sets up the overall project control
structure); “Controlling A Stage” (which uses
Checkpoint Reports to capture progress, and
records actual usage of resources. Highlight
Reports are used to inform the Project Board of progress); “Managing Product Delivery”
generates Checkpoint Reports for control
purposes. Stage approval is handled by“Managing Stage Boundaries” where
Management Stages are approved via End Stage
Assessments. This Process also uses Exception
Reporting and Planning to control significant
departures from plan. “Directing A Project” is
the Process within which overall authorisations
are made; this Process uses the key controls of
End Stage Assessment, Tolerance, Project
Initiation and Project Closure.
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The PRINCE 2 Components (Continued)
Stages
IP SB
CS
DP
Management Stages provide the key control forthe Project Board and are mainly used by
“Directing A Project” when authorising
commitment for expenditure. Technical Stages
often overlap and run in parallel; ManagementStages may not. The key control Processes use
Management Stages in planning and control of
the project.
Management of Risk SU IP
SB
DP
Risk Analysis is carried out initially in “Starting
Up A Project” when the Project Brief is created.
This is refined in “Initiating A Project” where
the Business Case for the project is established.The Risk Analysis is updated during “Managing
Stage Boundaries” to provide the basis for
decision support for the Project Board when they
review the project at the End Stage Assessment
in “Directing A Project”. No specific risk
analysis tools or techniques are recommended.
Management of risk has close ties with the
Business Benefits which are measured and
presented as the Business case for the project.
Both the Business Case and the Risk Analysis
are up-dated, minimally, at the end of each
Management Stage.
Quality In A Project
Environment
SU
IP
CS
MP
PL
The Customer’s Quality Expectations are first
identified in “Starting Up A Project” and quality
aspects are planned in “Initiating A Project”.
When the project is approved, “Controlling A
Stage” and “Managing Product Delivery”
enable specific Quality Criteria to be set for each
Product or Deliverable via Product Descriptions
described in the “Planning” Process.
Configuration
Management
IP
CS MP
CP
Configuration Management addresses the proper
safeguarding and management of Products orDeliverables and their associated documentation.
“Initiating A Project” sets up the Project Files
and “Controlling A Stage” and “Managing
Product Delivery” executes the Configuration
Management arrangements. Project Files are
archived in “Closing A Project” mainly for audit
purposes.
Change Control CS Managing proposals for change is an important
aspect of project management and the Process“Controlling A Stage” is where such proposals
are captured.
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The PRINCE 2 Techniques
DESCRIPTION
EXPLANATION
Product-Based Planning A “Product Breakdown Structure” which identifies the
Products or Deliverables to be produced during the project.
A “Product Description” for each Product identified in the
Product Breakdown Structure, which defines and specifies
each Product; a key feature of the Product Description is theQuality Criteria used to ensure that the Product is indeed a
“Quality Product” that conforms to its requirements. A
“Product Flow Diagram” which shows the relationship that
each Product has with others and external entities; theProduct Flow Diagram must “balance” with the Product
Breakdown Structure.
Quality Review Technique Used for measuring a Product or Deliverable against its
published Quality Criteria. PRINCE 2 recognises InformalQuality Reviews (typically “Desk Checks”, Tests or Visual
inspections) and Formal Quality Reviews (which are more
structured “Walkthroughs” of a Product or Deliverable).
Formal Quality Reviews comprise three distinct Phases -
Preparation, The Review Meeting and Follow-Up.
Change Control Every project must be able to accommodate changes
required by the customer or anyone else who has an interestin the project’s outcome. All suggested changes, identified
errors and departures from the agreed Specification must be
captured as “Project Issues, logged, analysed for technical,
customer and business impact, and a decision made on
whether to accept or reject the Issue.
Project Filing A suitable filing structure is suggested; this comprises a
“Management File” made up of one Project File and a series
of Stage Files - one for each of the Management Stages of
the project. A Specialist File housing the documentation
relating to the technical aspects of the project and a QualityFile housing the Quality Review documentation and the
Project Issues complete the structure.
More on the PRINCE 2 Processes
The eight major Processes state the minimum content that can be expected to be found in
a PRINCE 2 compliant project. Exactly how the Processes are addressed within any
project is the responsibility of the organisation’s senior management, represented by the
Project Board, and the Project Manager, but the method requires that each of the eight
Processes is reflected within the project one way or another.
All the Processes link to Components and Techniques some of which are described within
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the method. It is anticipated that most organisations will already be using some specificTechniques and might wish to incorporate additional Components reflecting their business
environment and culture. PRINCE encourages this where they provide value to the
management decision making process.
Each Process is defined in the following terms:
♦ The Fundamental Principles that underpin the Process;
♦ The Context within which the Process operates;
♦ An Overview of the Process;
♦ Responsibilities identifying accountability for the Process;
♦ The Information Needs required for the Process to function effectively;
♦ The Key Criteria which will influence the success or failure of the Process;
♦ Hints and Tips for carrying out the Process in the best way.
♦ Major Processes have an additional “Scalability” heading to help with scaling down
each Process for smaller, lower risk projects, where this is required by senior managers.
The Process-based approach is a powerful feature in PRINCE 2 and is the area which most
differentiates it from version 1 of the method. The flexibility of the method is, however,
underlined by allowing implementing organisations to choose their own destiny in terms
of identifying how to meet the requirements of any given Process. In most organisations
already operating successful project management systems there will be little need to make
changes to the way they are operating, provided effective project management procedures
are already in place.
The Organisation Component
The organisation and effective use of people assigned to manage a project needs to beconsidered from the view point both of the specialist skills they bring to the project and
their individual personalities.
Responsibilities need to be defined within a team structure to ensure that management is
both efficient and responsive, and that individuals understand exactly what is expected of
them. Within PRINCE 2, responsibilities are defined in terms of roles, rather than
individual’s jobs. Assignment of roles to individuals is a decision for each Project Board
to take in the light of organisational circumstances, and the same individual may be
assigned to more than one role, or to different roles at different stages of the project.
Three roles/interests must always be represented on any PRINCE 2 project – Business,
User, and Supplier.
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Corporate or Programme Management
The Project Board
Senior User Senior Supplier Executive
Project Assurance
Project Manager Project Support
Team ManagerTeam Manager Team Manager
Project Resources & Teams
Figure 5: The PRINCE 2 Organisation Structure
The Project Board
Every PRINCE 2 project will have a Project Board appointed. The Project Board is the
ultimate authority for the project and is normally appointed by Corporate or Programme
Management to take overall responsibility and control of a PRINCE 2 project. The Project
Board consists of three senior management roles, each representing major project interests.
♦ Executive: appointed by Corporate/Programme Management to provide overall
project guidance and assessment throughout. The Executive represents the interests of the
Customer and the Business and has overall responsibility for the project.
♦ Senior User: representing users (and, where appropriate, Customers) of the outcome
or the major products from the project.
♦ Senior Supplier: representing areas which have responsibility for providing thespecialist “know-how” and/or committing Supplier resources for the solution. The Senior
Supplier might be drawn from an external, commercial, organisation or from internal
sources responsible for delivering the specialist “End Product” to the customer (or amixture of both).
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There is a requirement within the Method to have a Project Board function and this cannot
be eliminated or delegated (although the terminology may be changed to suit the
organisation’s culture, for example “The Project Authority”). The Project Board’s
accountability for Project Assurance cannot be delegated although the day-to-day work of
Project Assurance can if Project Board members do not have the time or expertise to carry
out the tasks involved.
The Project Manager
A Project Manager will always be appointed to assume day-to-day responsibility for
planning and management of the project throughout all its Management Stages. The
Project Manager takes direction from the Project Board and is responsible for managing,
on behalf of the Project Board, the Processes, planning and delivery of Products for the
project, on-time, within budget, meeting the specialist/technical and quality criteria agreedwith the Project Board.
As with the Project Board, the role of Project Manager is a required role within the
Methodology and cannot be shared, delegated or eliminated.
The Team Manager
In a large or complex project, one or more Team Managers may be assigned the
responsibility for ensuring that the products of one or more particular Technical, or
Specialist, Stages of work are planned, controlled and produced on schedule, to thedefined and agreed quality standards, and within budget.
Figure 6: Project Manager and Team Manager Relationships
The Team Manager role is optional and will only be present in large projects or where the
Project Manager lacks the specialist skills to plan and control specific parts of the project.
Project Manager Project Support
Team ManagerTeam Manager Team Manager
Project Resources & Teams
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Project Resources and (Specialist) Teams
The Project and/or Team Manager have responsibility for Teams of specialist staff, tasked
to carry out the activities and produce the Products of the stage. The team organisation,
responsibility definitions and the allocation of these responsibilities to individuals will
depend upon the size and nature of the project and the skill mix available. PRINCE 2recognises the need to establish Team Manager roles where appropriate;
Project Assurance
PRINCE 2 separates the Project Assurance function from the Project Support function.The Project Board have responsibility and accountability for Project Assurance.
Depending on the size, scope, risk and profile of the project, and their own knowledge,skills and time available, they may choose to delegate responsibility for overseeing day to
day Project Assurance to others within the organisation. However, accountability for
Project Assurance rests with the Project Board and they are not able to delegate this.
Project Assurance may not be delegated to the Project Manager or to Team Managers.
Figure 7: Project Board and Project Assurance Functions
Although not specifically separated out in the PRINCE 2 Method, Project Assurance can
be found in two distinct forms:
♦ External Assurance to confirm that the project is following overall and corporate
standards (eg the published Quality Management System, or particular accounting
conventions) and the organisation can be expected to have an audit function already in
place to check these aspects.
♦ Internal Assurance to verify that the project is delivering Products or Deliverables
that meet the agreed Quality Criteria and that internal project standards are being
followed. Internal Assurance is ultimately the responsibility of the Project Board.
The Project Board
Senior User Senior Supplier Executive
Project Assurance
User Assurance Specialist Assurance Business Assurance
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Project Support
Within PRINCE 2, Project Support, on a formal basis, will only exist where there is a
perceived need for it. A Project Manager may well find that the Project Board see no
scope for any administrative support, and that any day-to-day assistance might need to be
on an “ad-hoc” basis.
Figure 8: Project Manager and Project Support Relationships
Where a project does warrant the appointment of a Project Support function, the
individual(s) selected will report directly to the Project Manager. Incidental support for
the Team Managers, where appointed, and Team resources will normally form part of
Project Support’s responsibilities.
The Project Support Office
A Project Support Office might well evolve in a Programme or multi-project
environment, to support a number of individual projects. The methodology supports the
possibility of a transition from several Project Support individuals to a central Project
Support Office where the number of projects under development warrants it. The resultant
Project Support Office will be able to provide a centre of expertise for all project
management aspects within the organisation/site, effectively delivering an internal
consultancy service where required by Project Board members, Project Managers and
project team members.
Summary of The Organisation Component
In the final analysis, it is the people who are responsible for the management of the
project and the creation of its deliverables who have its success in their hands. Clear
definition of responsibilities and a tenacious commitment to achieving agreed goals will
always be the predominant factor in success.
The PRINCE 2 Method must always be tuned to suit the implementing organisation’s
existing standards, business approaches, culture and people; the latter two are arguably
the most important.
Project Manager Project Support
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PRINCE 2 Planning
Estimating, planning and re-planning are constant and key activities when managing any
project. PRINCE 2 provides a structure for preparing and maintaining plans at appropriate
levels throughout the life of a project. Plans are prepared for the Project as a whole, for
each stage within the project and, optionally, for the teams’ work within eachManagement Stage. There is also an Exception Reporting and Planning process to handle
divergences from the original plan. The PRINCE 2 method include a Technique for
Product-Based planning incorporating Activity planning, Resource reporting and Quality
planning.
Products or Deliverables and Related Activities
PRINCE 2 provides a set of planning techniques which give structure to the project. The
key to PRINCE 2 planning is the identification and definition of the Products required.
From this comes an analysis of the work (ie the activities) required to generate these
products, and the sequencing of the work.
PRINCE makes a distinction between Management Products and Activities, Specialist
Products and Activities, and Quality Products and Activities. This is partly because these
are usually the concern of different groups of people, but also to ensure that management
activities are not overlooked in planning and estimating.
Figure 9: PRINCE 2 Plans Structure
PlanText
The Plan Text provides a high-level, overall view of the plan, summarising its key features
Product
BreakdownStructure
Identifying the Products/Deliverables that will be produced by the Project. The Products will be categorised under the headings of “Specialist”, “Management”, and
“Quality” Products.
Product
Descriptions
Describing the Products/Deliverables that will be produced by the Project. There is a prescribed format for Product Descriptions
Product
FlowDiagram
Describing the relationships that exist between each Product/Deliverable, and external entities.
PERTor
Activity
Network
Showing the relationships that extist between the Activities that will be undertaken to create the Products identified in the Product Breakdown Structure.
Ganttor
TimescalePlan
Derived from the PERT Network, this shows when Activities are planned to start and end. Major Review points (End Stage Assessments) are also shown on this plan.
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Management activities are concerned with planning, monitoring and reporting the work of the project, in both normal and exceptional situations. They produce Management
Products in the form of plans, reports and other control documents. Management activities
include the planning and control of all specialist activities on the project. Although
influenced by the specialist content, a similar pattern of management tasks can be
expected to be present in any PRINCE 2 project.
Conversely, the Specialist activities undertaken by a project are determined entirely by thescope and objectives of the project. The Specialist activities describe the work needed to
produce the Specialist Products required from the project.
The Specialist Products required by the user/customer are identified and defined at the
start of the project by the Project Manager and accepted by the Project Board. Additional
Specialist Products may be defined by the strategy appropriate to a particular Management
Stage of the project; specialist activities may also be prescribed by an organisation’s ownparticular technical strategy. PRINCE 2 therefore acknowledges the need for flexibility in
the selection and definition of Specialist activities and the corresponding Products.
Figure 10: Management, Quality and Specialist Products (For A Typical Feasibility Study)
Quality activities may be performed by anyone who is able to make a contribution to the
Product under review. Individuals within the project and host organisation as well aspeople external to the organisation are all appropriate. Quality activities must be planned
for early in the life of the project.
The PRINCE 2 Product planning techniques require every project to be described and
Completed Feasibility Study
Specialist Products
FS 01 - Business review FS02 - Problem Definition FS03 - Options Identified & Agreed FS04 - Options Appraised FS05 - Selected Option Agreed FS06 - Final Report
Quality Products
QP01 - Product Descriptions QP02 - Quality Review Documentation QP03 - Project Issues Log QP04 - Quality Log QP05 - Configuration Management
Management Products
MP01 - Project Initiation Document MP02 - Stage Plans MP03 - Lessons Learned Log MP04 - Risk Log MP05 - Business Case MP06 - Product Checklist MP07 - Highlight Reports MP08 - Project Start Notification MP09 - Project End Notification MP10 - Project Filing Structure
The Project ManagementStandard for the
Project
The Quality ManagementStandard for the
Project
The Technical ManagementStandard for the
Project
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defined in terms of its Products or Deliverables. This is a very effective way to ensure fullunderstanding of what is required and to ensure that, as far as possible, all resource
consuming activities are related to one or more required Products.
Planning for the Delivery of Specialist Products
PRINCE 2 Plans are concerned with the Products to be delivered and with the activities
necessary to ensure that these Products emerge on time and to the required quality
standards.
The project Products are identified as a first step in Product-Based Planning; definition of
each product (via the PRINCE Product Description) allows its make-up and quality
requirements to be documented and properly understood. A Product Breakdown Structureillustrates the hierarchical make-up of the complete set of project products and a Product
Flow Diagram provides a view of the relationship each product has with others, within and
outside of the project.
Figure 11: Product Flow Diagram (For A Feasibility Study)
The Project Timescale or Gantt Plan charts the major activities of the project. It is usually
derived from the PERT (Programme Evaluation and Review Technique) or Activity
Network which shows the relationships that exist between project activities. It is used in
conjunction with a Project Resources Report to monitor progress on the project as a whole.
It also addresses planning requirements related to Quality Control and Configuration
Management. A Stage-level Gantt (or time-scale) Plan shows the products, activities and
quality controls for each stage of the project. The Stage-level Gantt Plan is produced and
approved at the end of the previous stage (the plan for the first stage is prepared with theproject plan).
FS01
Business Review
FS02
Problem Definition
FS03
Options Identified& Agreed
FS04
Options Appraised
FS05
Selected Option Agreed
FS06
Final Report
Strategy PlanSolution Providers
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Additional, lower-level Gantt Plans can be expected to exist in most projects, to give a
detailed breakdown of particular major activities These are termed “Team Plans”.
InitiateSpecify
DesignBuildTestTrainHandover
ManagementStage 1
ManagementStage 3
ManagementStage 2
Figure 12: Gantt Plan (Time-scale Plan)
Lower level Plans (or Individual Work-to Lists), if required, are derived from the Stageand Team Plans to allocate detailed activities (and Products/Deliverables) to particular
members of a Specialist Stage Team. Although this level of plan is not formally included
in PRINCE 2 they may be utilised if the size and/or complexity of the project requires
their production.
Resource Planning & Reporting
Resource requirements are concerned with managing the funding and effort resources of
the project. Specific resource plans are not produced for PRINCE 2 controlled projects, as
the method assumes that a software planning tool will be used. Where this is the case,
relevant reports on planned and actual resource usage can be drawn from the Project Plan
in the form of a “Resources Report” as and when required.
Where a software support tool for planning is not in use (for example in the case of a lowcost, short duration, low risk project) the format for a resources plan or report shown in
figure 13 may be of use. Even where a software planning tool is in use, the presentation of
the information might well benefit by adopting the format shown in figure 13 as it reflects
the type and level of information required by the Project Board in reaching a suitable
business decision.
It is the decision-support information about the requested commitment of resources that is
of most use to Project Board members in reaching their decision to start or continue with
the project and careful thought must be given as to the most appropriate presentation of the
data.
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Figure 13: Typical Project Resources Report (or Plan)
The standard Resources Report drawn from any software-driven Project Plan will identify
the type, amount and cost of the resources required by the project related to each
Management Stage of the work. It will also identify equipment, building, and fixed-pricecosts associated with the project. The intention is to provide a complete resource and
financial picture of the undertaking.
A more detailed Resources Report, at Management Stage Level identifies the resources
required by the particular stage. It defines the budget required by the stage and is used to
report actual expenditure and resource usage against plan More detailed Resource Plans atthe Team Level will be produced when required, to plan and control a particular major
activity, and the associated team work-plans and Products.
Quality Planning - BS/EN/ISO9001
Action must be taken at project planning time (within the “Initiating A Project (IP1)”Process) to ensure that the project can deliver its Products to the required quality standards(the Customers Quality Expectations) required by the customer. Quality Criteria must be
defined and agreed, and incorporated into a Product Description for each major Product
identified; a Project Quality Plan must be defined, published and adopted; Quality
Review procedures must be established and staff trained; review activities must be
properly resourced. Whatever action is proposed to build quality into the project, the
measures must be consistent with any published Quality Management System (QMS) that
is already in effect.
PRINCE 2 has been designed to comply with the BS/EN/ISO9001 Quality Management
Standard and the method contains a section relating its content to each section of the ISO
Standard. BS6079, the Project management Standard, is also reflected within PRINCE 2.ISO9001, BS6079 and PRINCE 2 are all Process-driven; the foundation for quality and
Stage 1 Stage 2 Stage 3
Plan Actual Plan Actual Plan Actual
EFFORT (Staff Weeks)Skill Types
Customers
EngineersIT Analysts
Others
COSTS (£K)Skill Types
Customers
EngineersIT Analysts
Others
Equipment
Fixed Price Elements
Total Stage Costs
Total Project Costs
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effective, modern project management is therefore integral and inherent in PRINCE 2.The results of the quality planning activity must be integrated into the timescale and
resource plans at each level. Just as quality must be built into the Products, so must
quality control be built into the plans.
Figure 14: PRINCE 2 Planning Levels - Project, Stage & Team
♦ The Project Level plan (required) sets the overall quality approach for the entireproject. It defines the standards to be followed and the quality criteria for the major
products. It also identifies external constraints that may apply to the project, such as a
specific Configuration Management Method.
♦ The Stage Level plan (required) identifies the quality criteria, methods and review
guidelines for each Product produced during the stage.
♦ A Team plan (optional) might be required for specific individual activities such as
carrying out interviews within a particular user/customer area.
The Project Manager is responsible for deciding whether any plans below stage-level are
required; this decision will be endorsed by the Project Board at the Project Initiation or
End-Stage Assessment meeting.
Tolerance and Planning
The Project Board Executive sets tolerances for Stage Plans. These define the limits of
time-scale and cost (or sometimes effort) within which the Project Manager can operate
without further reference to the Project Board. Tolerance is variable and will be assignedto each Management Stage to reflect the respective business risk, but a general rule of
Project Plan (Mandatory Plan)
Stage PlanStage Plan Stage Plan
TeamPlan
TeamPlan
TeamPlan
TeamPlan
TeamPlan
TeamPlan
Project Resources Report(Effort, Costs, Equipment, Direct Costs)
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thumb is that Time Tolerance of plus/minus 1 week and Cost Tolerance of plus/minus10% is about right.
An Exception Report and, subsequently, if required by the Project Board, an Exception
Plan, is produced in situations where costs or time-scales are forecast to be exceeded
beyond the tolerances set by the Project Board.
The Exception Report describes the cause of the deviation from plan and its consequencesand recommends corrective action to the Project Board. Once considered and approved by
the Project Board at a Mid-Stage Assessment (MSA), the Exception Plan replaces the re-
mainder of the current Stage Plan.
The Controls Component
Regular and formal monitoring of actual progress against the approved plan is essential to
ensure the timeliness, cost control and quality of the system or undertaking being
developed. PRINCE 2 provides a support structure of Management and Product-oriented
controls to monitor progress, supported by a reporting procedure which enables re-
planning or other appropriate corrective action to be taken.
Management Controls
PRINCE 2 provides a structure of management controls to be applied throughout the
project. These controls cover all aspects of project activity and, at the highest level, allow
the Project Board to assess project achievement and status prior to committing furtherexpenditure.
Controls are applied through measuring the progress towards production of a set of
pre-defined outputs (Products or Deliverables). The overall structure of Management
Controls is defined during the project Initiation Stage (“Initiating A Project (IP4)”
Process) to ensure that the project is set up with clear Terms of Reference, incorporating
agreed and measurable Objectives and an adequate management control structure.
Project Initiation
To document a firm foundation and to provide a positive start to the project, ensuring that
the terms of reference, objectives, plans and controls, business risks, benefits and financial
return, organisation structure and job definitions are clearly defined, published, understood
and agreed.
This Management Product is very important to the project and is the result of two
Processes - the pre-project“Starting Up A Project (SU)”
and“Initiating A Project (IP)”
.The key output is the Project Initiation Document (PID) which, when approved by the
Project Board, is a “frozen” document used to baseline the project.
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End Stage Assessment (ESA)
This is a required management control and occurs at the end of each stage. It typically
consists of a formal presentation to the Project Board of the current project status, and
reviews the overall business case (benefits and risks).
The approval of the proposed plans for the next stage is also obtained. Project Board
approval, with agreement by all the members, must be obtained before the project can
proceed to the next stage.
Stage 1 - Planning & Definition Stage 2 - Design & Contract
End Stage Assessment (ESA) “Directing A Project” Process •Review the Outcome of Stage 1; •Review the Project Plans; •Review the Business Case (Benefits & Risks); •Preview the Plans for Stage 2.
•Endorse the Project & Approve continuation of the project up to the next End Stage Assessment.
“ Managing Stage Boundaries” Process •Up-date the Plans for Stage 1; •Up-date the Project Plans; •Up-date the Business Case (Benefits & Risks);
•Prepare the Plans for Stage 2
Figure 15: Handling End Stage Assessments
Mid Stage Assessment (MSA)
This Project Board control is held only to review a significant deviation from an
approved Management Stage Plan and to approve an Exception Plan produced, at the
request of the Project Board, following an Exception Report.
An Exception Report is produced by the Project Manager to alert the Project Board as
soon as it is apparent that a significant departure from the approved plan is forecast.
The Exception Report records what has happened to cause the “significant departure” from
the approved plan, the impact on the Management Stage, overall Project and its Business
Case. The plan will also recommend appropriate action to take the project to the end of
the Stage and, where possible, recover the situation.
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Figure 16: Handling Mid Stage Assessments
Tolerance
The measure of a “significant departure” is that the Tolerance stated by the Project Board
at the beginning of the management stage has been, or is likely to be, exceeded.
Tolerance may be thought of as the scope that the Project Manager has been granted by the
Project Board to move away from the approved Management Stage Plan without needing
to report the variance.
Tolerance is not time and money to be spent but should be thought of as “trigger” figures
which help keep the Management Stage (and the Project Manager) within “tolerable”bounds.
Responsibility for Tolerance stems from the Project Board, with the Executive havingresponsibility for setting Management Stage Tolerance with the Project Manager. TheExecutive is also responsible for ensuring that an overall Tolerance is set for the project by
Corporate or Programme Management and that it is suitably recorded in the Project Brief
during “Starting Up A Project (SU)”.
Tolerance should always be set in terms of both time and cost, as over-concentration on
just one aspect will imbalance the overall project resulting in an unexpected and
unpredicted time or budget slippage.
Stage 1 - Planning & Definition Stage 2 - Design & Contract
Mid Stage Assessment (MSA)
“Directing A Project” Process •Consider the Exception Plan at an unscheduled Mid Stage
• Review the Problems with Stage • Review the Impact on the Project • Review the im[pact on the Business Case (Benefits &• Preview the revised Plans for the remainder of the
• Endorse the Project & Approve continuation the Stage up to the next End Stage
“Controlling A Stage” Process • Deviation from approved Stage Plans
•Exception Report Created - Reasons; Impact; Options;
• Direction from Project Board .... Create an Exception
“Managing Stage Boundaries” Process • Produce an Exception
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Figure 17: Tolerance - plus/minus 1 week; plus/minus 10%
Standard Tolerance in PRINCE 2 is measured in terms of Time (Schedule) and Cost.
There are other types of Tolerance which may be applied; these include Tolerance on
Quality, Technical Conformance, Scope, and Risk.
The level of Tolerance is decided by the Project Board and set by the Executive following
recommendations by the Project Manager. Tolerance is most usually applied to aManagement Stage but is also be applied at Project level (set by Corporate or Programme
Management) and Product level (set by the Project Manager in specific Work Packages).
Project Closure
A final review of the project's work is held, usually (but not necessarily) in the form of a
Project Board meeting. This is similar to a stage assessment but relates to the entire projectrather than a single stage. The objective is to ensure that all the project
Products/Deliverables have been satisfactorily delivered to their stated quality standard
and that the project documentation is complete.
A review of the project management standards and approaches used by the project will be
carried out within the “Closing A Project (CP)” Process and a Lessons Learned Report
produced for consideration by the Project Board. The Lessons Learned Report records
what has been learned from using the PRINCE 2 project management and qualitymanagement standards for the project and is created during the “Initiating A Project”
Cost
Time
Planned Delivery & Total Cost
2 4 6 8 10 12 14 16 18 Weeks
£110K
£100K
£90
£80K
£70K
£60K
£50K
£40K
£30K
£20K
£10K
Plus 10% Tolerance
Minus 10% Tolerance
Plus 1 Week Tolerance
Minus 1 Week Tolerance
o
STAGE PLAN
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process and “populated” as the project progresses (at the end of each Management Stage);it will eventually be sent to the organisation’s manager responsible for quality.
Recommendations will also be made for Follow-on Actions to record and trigger further
work which is recommended following the closure of the project. Follow-on Actions will
usually be derived from any outstanding Project Issues, shown on the Issues Log.
A Post-Project Review Plan, to enable the organisation to check the actual realisation of benefits after the project’s output has been operating for a while (perhaps 9-12 months
following hand-over), will be prepared and authorised by the Project Board.
Highlight Reports
The Project Board is kept informed of the progress of the Management Stage (and the
project) against the approved plans via regular, time-related Highlight Reports. These areprepared by the Project Manager and are usually provided monthly, although their
frequency will always be agreed with the Project Board.
Highlight Reports are usually sent through the post or by e-mail; the objective is to
remove the need for unnecessary time-related Project Board meetings which consume the
Project Board members’ valuable time, while still keeping them abreast of significant
developments. The format for Highlight Reports will typically include:
♦ a statement of the progress made during the last (usually monthly) period;
♦ a statement of problems during the last period, and how they were handled;
♦ confirmation of the Activities and Products to be worked on during the next period;
♦ a statement of the financial and schedule situation for the overall project and the
current Management Stage.
Some organisations specify that Highlight Reports should be kept to one side of A4 (or its
equivalent). Where the project is part of a Programme of work, separate Project and
Programme Highlight Reports will normally be produced.
Stages
Stages are partitions of the project with decision points at their conclusion, and sometimes
during their life.
PRINCE 2 differentiates between “Management Stages” (which equate to the commitment
of resources by the Project Board and a decision to continue with the project and authority
to spend) and “Technical Stages” which comprise sets of technical activities leading to a
stated and required Product.
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Initiate
Specify
DesignBuildTestTrainHandover
ManagementStage 1
ManagementStage 2
ManagementStage 3
Technical Stages
Project Review of Management Stage at End Stage Assessment (ESA)
Project Initiation Project Closure
Figure 18: Management & Technical Stages
Technical Stages will often overlap and be run in parallel; they are normally planned andmanaged by Team Managers who report to, and take direction from, the Project Manager.
Management Stages will always run in series.
In figure 18, some of the Technical Stages have been planned to run in parallel. Of course,
in a smaller project these might well be described as “Technical Activities”; in medium to
larger projects, the Activities will often combine to provide the Technical Stages under the
immediate control of a Team Manager.
In only the most exceptional circumstances will authority be given for work to commence
on the next Management Stage before all the Products of the current Management Stage is
completed.
Business Benefits and Risk Management
PRINCE 2 places emphasis on the Business Benefits for the project; they are described
by the Method as “…the driving force behind the project …”. The purpose of the
PRINCE 2 Business Case is the identification and measurement of the Business Benefits
and the continued review of them as the project progresses through its Management
Stages. Closely associated with the Business Benefits are the Risks that the project faces;
essentially the risks divide into two main areas:
♦ Business Risks relating to threats associated with the project not delivering products
capable of achieving the claimed and published Business Benefits (eg legislative changes,market changes, environmental issues).
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♦ Project Risks which are concerned with the ability to deliver the project’s outcome
within the required time and cost requirements (eg failure of third party suppliers, skills
shortages, technical problems).
The Method does not specify any particular way of measuring Business Benefits or
assessing Risks but whatever the chosen approach, PRINCE 2 requires the Business Case
and Risks to be updated on a regular basis - minimally at the end of each Management
Stage. This provides the Project Board with sufficient, up to date, information on which tobase their decision to continue with the project.
Planning For Quality
PRINCE 2 presumes that the project will be managed under the umbrella of a published
Quality Management System (QMS) conformant to ISO9001. If such a QMS is notpresent the Method compensates by specifying that quality must be planned from the
outset. Planning Quality takes place in the “Initiating A Project (IP)” Process and the
resultant Project Quality Plan is incorporated into the Project Initiation Document (PID)
and used throughout the project. The Process provides the following:
♦ it establishes a Quality regime for the project;
♦ it defines the overall project quality criteria and assurance arrangements to be
employed by the project;
♦ it establishes the approach to control of change during the project.
Responsibility for planning quality lies with the Project Manager, working in close
association with those responsible for quality (ie the Quality Manager).
Quality Controls - Quality Review
Quality controls are applied to specific products rather than to the overall output of a
stage or project. The aim is to identify and correct errors as early as possible in the
development process.
They will usually take the form of a formal or informal quality review, whichever is
specified in the Product Description.
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Figure 19: The Product Description & Quality Review Relationship
Quality control may take many forms from a visual inspection, through a test programme,
to a formal meeting. These are all Techniques and PRINCE 2 describes some, but not all
that might be available - the selection of appropriate Techniques is left to the
implementing organisation. However, one of the most powerful Techniques is the Quality
review which has been successfully used in a wide variety of projects for a number of
years.
The Formal Quality Review has three distinct steps:
♦ Preparation - where the Product or Deliverable is measured against the QualityCriteria contained in the Product Description, and Error Lists are created by selected
Reviewers who are able to make a suitable contribution.
♦ Review - where the Product or Deliverable is “walked-through” by its Producer and
an agreed list of Follow-up Actions is agreed. The Reviewers who prepared the original
Error Lists attend this Review.
♦ Follow-up - where the identified faults, errors, omissions and inconsistencies in the
Product or Deliverable are fixed, agreed and signed-off.
At each Quality Review, appropriate Supplier and user/customer staff are designated toexamine a Product to ensure that it is complete and correct; these “appropriate resources”
are identified in the Stage-level Plan and the corresponding Product Description.
The Product is reviewed against defined quality criteria contained within the Product
Description, which assures its technical integrity and its compliance with user or customer
requirements; It is thereafter an “Approved Product “subject to formal change control
procedures. If any subsequent changes are made to Approved Products, there should
always be a reference back to the original Product Description to determine whether a
corresponding change needs to be made. This procedure applies to informal quality
reviews (for example a test, visual inspection, or desk-check) and to formal quality
reviews where 2-3 reviewers meet with the author of the product under the chair of asuitably senior person to “walk-through” the product.
ProductDescription
•Composition•Quality Criteria•Type of Check•People Required
The Product
Quality Review
Checking the Product against the Quality Criteria published in the Product Description
Activity (shown on the Gantt or Timescale Plan) consuming Resources (Time/Effort/Funding)
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Change Control
Unplanned situations relating to changes to one or more Products need to be captured as
“Issues” relating to the project.
* Good Ideas* Errors
* Departures From Agreed Specification* Resource Changes
* Specification Changes
Project Issue(Request for Changeor Off-Specification)
Originator Raises A
Sent to Project Support
Logged byProject Support
Reviewed by Project Manager
Project Issues Log
* Slippage/Budget Changes, exceeding Tolerance or
affecting other projects within the Programme
= Decision by Project Board (Exception Report)OR ....
*Changes Within Tolerance = Decision by Project Manager
and action taken to implement the change.
Project Issues Log Up-dated
Notify OriginatorCopy returned
to confirm receipt
Figure 20: Suggested Procedure For Controlling Changes
Examples of this are good ideas that project team members identify, resource changes,
errors discovered in a finished product, and departures from the agreed specification.Because the situation is unplanned, it needs to be recorded and action agreed, in order to
contain the impact and prevent wider divergence from plans. Issues are best handled
within the framework of a formal Configuration Management scheme.
An Issue will be raised to cover any situation which needs to be addressed within the
project and to a large extent is a “catch-all” for many unforeseen incidents; for example,
where no agreement can be reached on the outcome of a Quality Review, am Issue will be
raised to alert the Project Manager.
Configuration Management
A Configuration Management Method (CMM) controls the development of products by
providing a formal mechanism for labeling products, their development status, and the
relationship between them. PRINCE 2 does not define or recommend a specific CMM but
emphasises the need for a suitable system and clearly states that the presence of suitable
arrangements for Configuration Management is not optional.
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Configuration Management can be particularly useful in tracking back problems with
delivered, signed-off Products which fail to perform as expected in operation;
identification of the developer or supplier is vital to ensure that problems are tracked back
to source and appropriate action taken.
Filing Arrangements
PRINCE 2 contains a recommended filing structure which implementing organisations
may find useful as a start point. Where existing filing arrangements are in force, or where
organisations wish to arrange things differently, this may be done without conflicting with
the Method.
Figure 21: The PRINCE 2 Suggested Filing Structure
Software Support for PRINCE 2
In partnership with CCTA, the owners of the PRINCE Methodology, IBM (UK) have
developed a support tool called “The PRINCE 2 Environment”. This tool provides a
complete electronic support function which enables the Project Manager (or Project
Support) to keep track of the many project documents that are created during the life of the
project and to launch any application that is needed to manage the project.
Typical applications will be project planning tools, word-processing and spreadsheets;
both applications and associated files can be launched, modified and saved. The PRINCE2 Environment also contains the full PRINCE documentation and “skeletons” for the
creation of the Project Initiation Document. Users can add extra options and incorporate
their existing documentation to supplement the basic material supplied with the PRINCE 2
Environment.
An alternative – The Launch Pad – is available from SPOCE Project Management
Limited, providing similar functionality to the PRINCE 2 Environment. An evaluationcopy can be downloaded from web site www.spoce.com
Project FileOrganisation
Plans
Business Case
Risk Log
Control Documents
Product Checklist
Lessons Learned Report
Files
Stage File(s)Organisation
Plans
Control Documents
Daily Log
Correspondence
Product Checklist
Specialist FileConfiguration Items
Configuration Log
CI Locations
Off-Specifications
Quality FileProduct Descriptions
Quality Checks
Project Issues
Project Issues Log
Quality Log
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Following This Introduction
The introduction to PRINCE 2 in this Chapter should be sufficient for the “incidental
user” or senior manager to understand the basics of the Method. The rest of this book
provides further information on PRINCE 2 and explores each topic in more detail.
Although the Method is “Process-Driven” and the eight Processes use the Components and
Techniques, the recommended starting point to understand what is going on within a
PRINCE 2 project is the Components.
The remaining Chapters deal with the PRINCE 2 Components, explaining theircomposition and progresses through Processes to Techniques, adding value to the basic
descriptions in the PRINCE 2 Manual.
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UNDERSTANDING THE
ORGANISATION COMPONENT
Chapter
3
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PRINCE 2 Organisation - Introduction
Project organisation and staffing is the key to the successful management of any project.If the project staff have the right leadership, the appropriate technical competence, have
the will to make the venture successful, and understand exactly what is expected of them,
then the project will have an excellent chance of success.
Figure 22: The Suggested PRINCE 2 Organisation Structure
At the top of the organisation structure there will normally be a strategy body (PRINCE 2
identifies this as Corporate or Programme Management) responsible for interpreting the
overall objectives of the organisation into working arrangements, systems or other
outcomes. In private-sector organisations this body might well be the Board of Directors.
The PRINCE 2 organisation model assumes a Customer:Supplier environment within
which the project management components, processes and techniques will operate. The
structure assumes there will be a customer who will state and define the requirement, pay
for the project and use the outcome, and a supplier who will provide the necessary
experience, skills and know-how to create the End Product for the customer. This model
is used for all PRINCE 2 controlled projects - the supplier might be an external private
sector company or an internal division of the purchasing organisation - the approaches
used are similar. The main emphasis within the PRINCE 2 organisation component isconcentration on direction, management, control and communication. The method
provides a flexible framework which is capable of being mapped onto any organisation
with the minimum of disruption, and which provides the template to achieve the key
outputs.
Corporate or Programme Management
The Project Board
Senior User Senior Supplier Executive
Project Assurance
Project Manager Project Support
Team ManagerTeam Manager Team Manager
Project Resources & Teams
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Within any PRINCE project organisation, at least three interests must be represented:
♦ Business Interests - ensuring that the eventual output of the project meets (and
continues to meet) a stated business need while at the same time representing good value
for the time, money and other resources expended .
♦ User Interests - specifying the desired outcome and ensuring that the project actually
delivers what is required. Essentially representing the interests of those who will use the
outcome to deliver the business benefits.
♦ Supplier(s) Interests - providing the necessary knowledge, skills, equipment and
resources to produce the outcome in accordance with the specification and acceptance
criteria. There will often be internal and external specialist suppliers working co-
operatively on the project.
Responsibilities in a PRINCE 2 Controlled Project
The PRINCE 2 Method provides guidelines for the responsibilities that can be expected
to be placed on individuals working within the PRINCE environment. These are presented
in the form of Role Descriptions which should be used as input to discussions to secure the
final definition of the roles and responsibilities for all members of the Project Board andthe Project Management Team. Tuning the role descriptions is best carried out in three
passes:
♦ Step 1 - Tune the role descriptions to suit the specific project (they should already
have been tuned to reflect the organisation’s culture, standards and requirements);
♦ Step 2 - Modify the resultant role descriptions to suit the individual filling the role -
ask why that particular individual has been chosen for the role - what specifically does
he/she bring to the project;
♦ Step 3 - Discuss each tuned role description with the individuals concerned and
secure their agreement and commitment to their organisational role.
Following this simple three-step process will help secure the commitment of the Project
Board members and Project Management Team. Taking the role definitions directly fromthe PRINCE 2 manual is not recommended.
The Project Board
The Project Board is the overall authority for the project, having specific ownership for
the process “Directing A Project” and responsibility for delivering the required outcomeor End Product. It is the ultimate project authority and is responsible for the initiation,
direction, review and eventual closure of the project. To meet this function, Project Board
members must have the authority required to commit resources and to initiate new work.
These are the prime selection criteria for Project Board members. The Project Boardcomprises, as a minimum, representatives from the following three functional areas:
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The Executive Role:
Overall Responsibility: to be ultimately responsible for the project, supported by theSenior User and Senior Supplier.
The Executive has to ensure that the project is delivering value for the time, effort, costsand resources being invested, confirming a cost-conscious approach to the project,
balancing the demands of the Business, User and Specialist Provider Organisations. The
Executive will normally chair the Project Board meetings, owns the Business Case,
represents the Customer’s interests and has final responsibility for the project.
The Senior User Role:
Overall Responsibility: Responsible for the specification of User needs, user liaison with
the project team, the integrity of the desired outcome of the project and for monitoring that
the solution will meet those needs within the constraints imposed upon the project.
The role represents the interests of all those affected by the outcome and the Products
arising from the project. The Senior User role commits User resources and monitors
Products against the stated and agreed requirement. This role will often involve more than
one person to represent all the user interests. The User and Customer roles will sometimes
be represented by the same individual or group of people.
The Senior Supplier Role:
Overall Responsibility: Representing the interests of those designing, developing,
facilitating, procuring and implementing the project Products.
The Senior Supplier role must have the authority to commit or acquire the (specialist)
supplier resources required. In some projects, more than one person may be required to
represent the interests, and commit the resources, of the supplier.
Responsibilities of the Project Board Members
The PRINCE 2 Manual (Appendix C) provides lists of responsibilities for each of the
above roles. These are split between the Specific Responsibilities and the Assurance
Responsibilities for each of the identified roles. The role definitions must be adapted to
suit the organisation, project and individual tasked with the responsibility.
The three functional roles comprising the Project Board should not be interpreted as a
requirement for three individuals. In smaller projects, for example, two functional roles
may be combined in one person (although in normal circumstances it is not advisable forthe Project Board to be reduced to less than two individuals). In other circumstances
several individuals may take on a single functional role (eg where a number of user areas
are being served by the eventual outcome of the project).
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The Project Assurance Function
PRINCE 2 separates the Project Assurance function from the Project Support function.
Accountability for assuring the project always resides with the Project Board and cannot
be delegated; the day to day tasks involving the assurance function may, however, be
delegated to appropriate individuals. There are two types of Project Assurance that can be
expected to be found within a project - External and Internal.
Figure 23: The Levels of Assurance
♦ External Assurance concerns itself with the assurance that the project is performingin accordance with overall standards and approaches either published or recognised in
some way by the organisation. Examples might be that the project is conforming to the
BS/EN/ISO9001 Quality Management Standard or following Accounting Conventions laid
down by a professional body or within legislation. Invariably some form of audit will
already be present within the organisation to verify that these standards are being
followed.
♦ Internal Assurance is ultimately the responsibility of the Project Board. Examples of
Internal Assurance are verifying that the Products/Deliverables output by the project
conform to their agreed Quality Criteria; that they perform in accordance with the User’s
statement of requirement; that schedule and cost budgets are being met; and that the
Business Case (Business Benefits) and Risks remains viable.
Project Management FunctionProject Manager Project Support
Team Managers
Project Team Members
- Product Creators
Project Assurance Function
Project Board Assurance Function
- Business - User
- Supplier - Business
- User - Supplier
External Assurance & Audit FunctionStandards
- Quality - Financial
- Technical
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Delegation of Day-to-Day Project Assurance
Although accountability for Project Assurance rests with the Project Board it might well
be impractical for the individual members to carry out the tasks involved personally
(because of lack of time or lack of expertise). Each Project Board member may, therefore,
enlist help from other sources to actually perform the day-to-day Project Assurance
function on their behalf. It is important to note, however, that this responsibility is only
delegated - the Project Board retain full accountability.
Delegation of the assurance function may be to any number of individuals, although the
numbers must obviously, be sensible. The selection of appropriate people for the
assurance roles is also important - the assurance function must be independent of the
Project Manager and it is not appropriate for any of the assurance function to be delegated
to the Project Manager or Team Manager(s). In practice, an existing Quality Manager orProject Support Office might be used to carry out either or both Internal Assurance and
External Assurance - responsibility for getting it right rests with the Project Board (and
ultimately with the Executive Member).
The Project Manager
All projects need a focal point to plan, control and oversee the day to day work and to
co-ordinate the total effort. The Project Manager fulfills this role. PRINCE 2 requires
that all projects under the control of the Methodology have a Project Manager.
The prime responsibility of the Project Manager is:
♦ to ensure that the project as a whole produces the required products, to the required
standard of quality, and within the specified constraints of time and cost. The Project
manager is also responsible for the project producing a result which is capable of
achieving the benefits defined in the Project Initiation Document.
Figure 24: The Project Manager’s Relationship with the Project Board
In any PRINCE 2 project, there might also be one or more Team Managers to assist theProject Manager to plan, manage and control a specific Technical Stage. It is the
The Project Board
Senior User Senior Supplier Executive
Project Manager
User Assurance S peci al is t As su ranc e B us iness A s su rance
Project Assurance Assurance
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responsibility of the Project Manager to direct and co-ordinate the efforts of all TeamManagers.
Team Managers will usually be appointed to plan and control particular specialist areas,
where the Project Manager lacks the detailed knowledge and/or experience and/or
resources directly under his/her control to carry through the specific tasks required.
A selection of the main tasks for the Project Manager is as follows:
♦ Overall planning for the total project;
♦ Motivation and Inspiration;
♦ Drive the project towards a successful outcome;
♦ Liaison with other related/associated projects;
♦ Liaison with Programme Management for related projects;
♦ Define responsibilities for each Specialist Team Manager;
♦ Report to and take direction from, the Project Board;
♦ Present regular Highlight Reports for the Management Stage (and the impact on the
overall project) to the Project Board.
The Project Manager role is essential for large, complex, high-profile, high-risk,
undertakings and may be supported by one or more specialist Team Managers.
Team Manager(s)
The Team Manager is an optional role and may be expected to exist on large, high risk
projects. Where appointed the Team Manager is responsible for the day-to-day
management of the specialist work package activities and products under his/her control.
Typically, but not necessarily, a Team Manager will have line responsibility for a specific
specialist team appointed to be responsible for a discrete part of the project; for example
the supplier of key technical equipment, or a building contractor might be appointed as aTeam Manager for part of the customer’s project. In such circumstances it is quite normal
that the Team Manager is also the supplier’s Project Manager. The Team Manager works
to the defined and agreed plans for the stage products and activities and reports to the
Project Manager.
Team Managers may also be appointed where the project is large and the Project Manager
requires some experienced support at the management level. Also where there are
pressing geographical reasons, a Team Manager might well be nominated to implement aparticular part of the solution within a geographic region.
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The options described above are not exhaustive and Project Managers and their respective
Project Boards should use imagination and creativity to determine where and when to
make the best use of this PRINCE 2 role.
Figure 25: The Team Manager’s Relationship with the Project Manager
Responsibilities of the Team Manager
The prime responsibility of the Team Manager is:
♦ to ensure production of those Products defined by the Project Manager to an
appropriate quality (ie conforming to the Product’s Quality Criteria agreed within the
Product Description), in a time-scale and at a cost acceptable to the Project Manager and
the Project Board.
The Team Manager reports to and takes direction from the Project Manager. The Team
Manager will work with the Project Manager to define responsibilities for the team
members and provide plans, guidance, motivation and inspiration. All suggested changesrelating to the Products which are the responsibility of the Team Manager, raised
informally or as Project Issues will be routed through the Team Manager forrecommendation or decision on further action.
The Team Manager will work closely with his/her teams, providing advice and guidance
and taking decisions. The Team Manager will attend (and usually run) Checkpoints and
raise Checkpoint Reports for the Project Manager at the frequency agreed in the Work
Package, and may help the Project Manager to provide the regular Highlight Reports to the
Project Board.
Project Support may be used by the Team Manager where this is acceptable to the Project
Manager. At the discretion of the Project Manager, Project Support will provide
administrative assistance freeing the Team Manager from the day to day administration,and enabling provision appropriate support and guidance to the team members. In some
cases, Project Support may act as a “Scribe” at Quality Reviews to help with the
Project Manager
Team ManagerTeam Manager Team Manager
Project Resources & Teams
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administration and recording of this important control.
Team Managers and Technical Stages
PRINCE 2 draws a distinction between Technical Stages and Management Stages. A
Team Manager will take responsibility for one or more discrete Technical Stages of the
project.
Technical Stages relate to the delivery of specific portions of the final solution (or End
Product) for the project and there may well be a number of Technical stages, each under
the control of a different specialist Team Manager, running within one or more
Management Stages.
The Management Stages provide the basis for a series of major milestones during the life
of the project and represent the points in time when the Project Board will, at an End-
Stage Assessment (ESA) decide whether the project should go forward, be “frozen” for a
period of time, existing work be “re-visited”, or the whole project aborted.
Management Stages allow the Project Board to control the commitment of resources to the
project and provide authority to spend; they are also described by the Method as
“partitions of the project with decision points”.
Project Support
The Project Support function on a formal basis within a PRINCE 2 project will only exist
where there is a need for it. Its existence is driven by the needs of an individual project
(and Project Manager). In general, the kind of support provided will be administrativehelp to the Project Manager and the Team Managers where these are appointed.
Where organisations already have a Project Support Office in place, there need be no
change, although there will need to be a clear distinction drawn between the services
provided to the Project Manager by the Project Support Office staff and any Project
Assurance function they might be performing on behalf of the Project Board. The Project
Support prime function is:
♦ to provide administrative support and assistance to the Project Manager and the
Specialist Team Managers. Project Support may also provide support to the Team
Members in terms of advice and the interpretation of the project management, quality
and technical standards.
Project Support responsibilities comprise (among others as specified and agreed with the
Project Manager) the following:
♦ Administer Change Control;
♦ Set up and maintain the Project Files;
♦ Establish Document Control Procedures for the Management Products;
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♦ Compile, copy and distribute all Management Products;
♦ Collect Actual Performance Data and Forecast Data, and update the Plans;
♦ Administer the Quality Control Processes;
♦ Administer Project Board Meetings;
♦ Assist with the compiling of reports;
♦ Configuration Management activities.
♦ Performing the “Scribe” role at Formal Quality Review Meetings.
The selection of appropriate Project Support personnel (either for the direct support of theproject or through the creation of a Project Support Office) is important to the overall
success of the project. Typical knowledge and skills necessary for this key position might
include, among other areas:
♦ A broad understanding of estimating techniques (especially those used by the
Organisation);
♦ specialist knowledge and competence with the organisation’s chosen software support
tool, and other project management software support tools such as those for Risk
Assessment and Management;
♦ any other specialist knowledge that might be needed to support and reflect the
organisation’s existing standards, approaches and professional ethics and
approaches;
♦ administrative approaches relating to the organisation’s own filing and related
configuration approaches;
♦ planning and scheduling principles knowledge and expertise;
♦ good communication and interpersonal skills;
♦ a pro-active approach!
Customer:Supplier Environment
A suitable organisation structure for Customer:Supplier projects is included in the
PRINCE 2 manual and shown in figures 26 and 27 . PRINCE 2 assumes that the project
will be a joint venture between a Customer and a Supplier, who might be an internal or
external supplier of the specialist portion of the project.
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Figure 26: The PRINCE 2 Customer:Supplier Organisation Structure
Figure 26 is as far as the PRINCE 2 Manual takes the Customer:Supplier Environment – a
full view of the typical Customer:Supplier Organisation Environment to be found in aPRINCE 2 managed project is illustrated in figure 27 below.
Figure 27: Comprehensive View of the Customer:Supplier Organisation Environment
Developments On The PRINCE 2 Theme
A similar structure has been used successfully by customer and supplier organisations fora number of years; it is similar to that proposed by PRINCE 2 as a suitable start-point, but
Customer Project
Boardn Senior User
n Executive
Supplier Project Boardn Customer Account Manager
n Supplier Skill Management
n Senior Supplier
Project Board•Executive
•Senior User•Senior Supplier
Customer Organisation Supplier Organisation
Customer Project Board Supplier Project Board
The Project Board(Joint Representation from
Customer & Supplier Project Boards)
CustomerProject Manager
Supplier Project Manager
Supplier Team Manager
CustomerTeam Manager
CustomerResources
Supplier Resources
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has a few modifications which provide an alternative but compliant option. This model( figure 28) provides a practical approach to handling the day-to-day communication
linkages between the respective Project Managers and their respective teams, and the
higher level exchanges between each Project Board and has been used as an organisational
basis for private sector companies Local Government; Central Government and NHS
Trusts. A key element is to ensure that the customer and supplier organisations have an
opportunity to take the necessary commercial and business decisions within the privacy of
their own management organisations, but with the facility to meet to iron out difficultiesand problems on a “without prejudice” basis.
The Supplier Project Board
Supplier senior management will always need to represent the interests of their customers
if the eventual business outcome is to be satisfactory to all parties involved.
Reflecting the “partnership” approach, it is tempting to include a User/Customer
representative on the Supplier Project Board. This approach is, however, flawed as the
PRINCE Methodology places overall and ultimate responsibility and authority for the
project in the hands of the Project Board with consensus agreement. A “real”
User/Customer representative at this level within the project will always be placed in an
invidious position, especially in times of trouble when hard decisions have to be made
about the possibility of re-defining the project deliverables or re-negotiating the contractprice or terms and conditions, where the Customer‘s only realistic stance can be “no
comment” - indecisive and certainly not recommended at Project Board level!
A similar situation occurs where a Supplier is asked to provide a representative for a
Customer’s Project Board. Although commitment of the Supplier’s resources will be able
to be achieved, in times of difficulty where a specialist solution appears not to be workingin the way the Customer had expected, the supplier representative always experiences a
conflict over whose interests should be protected.
The solution, endorsed by practical experience, is for the Supplier to providerepresentation from internal resources such as a Customer Account Manager to speak for
the customer and to ensure that, at the highest level within the project, due account is
taken of the customer’s position.
For the customer, where there is an unwillingness to have a Senior Supplier from the
organisation they have contracted with on the Project Board, specialist technical expertise
for the project may be bought-in from outside if there is no specialist expertise already
resident or available from within. Such an appointment carries with it the disadvantage
that the individual(s) concerned are unable to commit the necessary technical resources,
but this is relatively easily remedied through the contract arrangements.
Establishment of a Steering/Co-ordinating Group (possibly evolving into a Joint Project
Board) will help smooth the path for communication between all the senior managersresponsible for the project.
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Customer: Supplier Steering/Co-ordinating Group
Each individual Project Board will be primarily responsible for the management of the
project within its own organisation, but there is also the need to meet on a regular basis to
discuss issues and to enable communication at a senior level. The Steering/Co-ordinating
Group (or Joint Project Board) pulls together all interested parties at Project Board, Project
Manager and, if appropriate, Project Assurance levels so that key decisions can be made.
Figure 28: The Customer & Supplier Management Structures
It is important to focus on the purpose of each meeting of the Steering/Co-ordinating
Group The objective is to provide a joint forum for decision making, the exchange of
“positive” views and the clarification of any issues. Progress and project status will be the
subject of separate arrangements (typically monthly Highlight Reports).
Within a contractual environment, it will always be advisable to set up each meeting with
the proviso that any discussions, views and agreements reached within theLiaison/Steering Group forum will always be “without prejudice to the agreed terms and
conditions of the contract”. Failure to do this might well result in an unwillingness to
enter into constructive debate and to provide mutually constructive suggestions to avoid or
repair problems.
Customer Organisation Supplier Organisation
Project Board Senior Management (Project Board Equivalent)
Steering/Co-ordinating Group(Joint Representation from
Customer & Supplier Project Boards)
CustomerProject Manager
Supplier Project Manager
Supplier Team Manager
CustomerTeam Manager
CustomerResources
Supplier Resources
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Customer: Supplier Project Manager
The supplier will always appoint someone to take responsibility for day-to-day
management of the project - the Supplier Project Manager. The communication lines
between the Customer Project Manager and the Supplier Project Manager are the strongest
ties between the two parties. This is reinforced where the Customer Project Manager
regards the Supplier Project Manager as a (specialist) Team Manager within the customer
project.
The Project Manager will normally come from the Customer organisation and will take on
responsibility for managing the total project. This is because the Supplier’s role in the
overall scheme of things is usually restricted to supply and installation of equipment.
There are many other vital component parts which must derive from the Customer project
- examples are the Specification, Business Design, Testing, Training etc.
Customer:Supplier - Project Support
Project Support may or may not exist on either side, but for major projects some form of
support will be established for the Project Manager. The communication links between
the support functions will be the regular reports (typically Highlight Reports) and
resolution of day-to-day queries between the customer and supplier project teams.
It is not envisaged that there will be any formal communication between customer andsupplier team members as this will always be routed through the Project Managers or
Project Support.
Organising The Managing Of Programmes
Most projects will have inter-relationships with other undertakings within and outside the
host organisation. In larger, longer term and high risk projects, there will be a consciouseffort to break the overall initiative into a series of smaller, more manageable projects,
each under the overall direction of a Programme Board.
The organisational aspects of programmes of work are straightforward and reflect the
basic principles of the PRINCE Methodology. The actual arrangements and structure will
vary with each programme and will need to reflect the local approaches, culture and, if
appropriate, contracts. The PRINCE 2 manual provides a suggested structure which
should always be considered as a suitable start point. The following model (Figure 29)
has formed the basis for a number of successful programmes and provides a near
alternative for consideration:
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Figure 29: Alternative Programme Management Organisation Model
Programme Board, Programme Manager & Programme Support
The Programme Board will appoint a Programme Manager to oversee the delivery of the
overall initiative. The Programme Manager may be a member of the Programme Board,
although this is not necessary or recommended.
Support to the Programme Manager is provided by Programme Support who are also
responsible for the overall programme integrity and the correct use of the organisation’s
project management and quality management standards. They will also, therefore, take on
the day to day role of Programme and individual Project Assurance on behalf of the
Programme Board members and individual Project Board members. Accountability for
Programme and Project Assurance remains, of course, with the individual roles on the
respective bodies.
Quality Assurance is normally a separate function and vested in the Quality Manager; theappointment of a joint Programme/Quality Assurance function role is the responsibility of
the Programme Board.
To avoid large numbers of individuals on Programme Boards, it is often convenient toestablish a Steering Group which is strictly speaking outside the project boundary. Such a
group may meet as frequently or infrequently as deemed to be appropriate and themembership need not be limited.
Programme BoardRepresentation from User/Customer, Supplier Function & Business Function
Programme ManagerProgramme Support
+ Project Support
Customer
Group
Project Board - 1 Project Board - 2 Project Board - 3
Project Manager Project Manager Project Manager
Programme/Project Resources (some common; someowned by one project)
Corporate ManagementSteeringGroup
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The Steering Group will be kept fully informed of the progress of the programme and willbe invited to contribute to the overall direction of the initiative.
The group will not, however, be responsible for decision making within the programme -
this vests absolutely in the Programme Board, devolved as appropriate to the Programme
Manager, Individual Project Boards and Individual Project Managers.
User/Customer Group In A Programme Context
Programmes of work often imply the need to address a large customer base and this is
catered for by having a separate Customer Group. This group will provide the SeniorUser/Customer on the Programme Board and the Senior User for each of the individual
Project Boards. Each individual Project Board Senior User is responsible for appointing
any necessary user/customer liaison resource, possibly coupled with assurance
responsibilities, within the project management team.
Individual Project Boards In A Programme Context
The individual Project Boards operate exactly as they would within a standard PRINCE 2
project. The members are overall responsible for delivery of the project(s) they own.
They will meet at appropriate event-related times to review the project and to approve itscontinuation and commit the resources. Each individual Project Board will comprise a
Senior User/Customer representative, a Supplier representative, and an Executive/Business
representative.
As mentioned above, the User/Customer Group will provide the Senior User. The
Programme Manager is best positioned to chair each Project Board and represent the
business interests of the overall programme and the host organisation. The individual
Project Board Supplier representative will be assigned/appointed by the Senior Supplier on
the Programme Board.
Project Support & Programme Assurance
Each individual Project Manager may be assisted by a Project Support function if this is
deemed to be necessary given the size, scope and complexity of the project and the
experience of the Project Manager.
Project Support will keep the project plans up to date and on a regular basis, usually
monthly, will provide a summary of status and progress to Programme Support who will
use this information to up-date the overall programme plan for the Programme Manager.
A Programme Highlight Report will be prepared and sent from the Programme Manager to
each member of the Programme Board. Assurance for the whole programme of work andfor individual projects will primarily be the responsibility of Programme Support whose
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authority devolves from the Programme Manager.
Typically (but not necessarily) the Programme Board will meet on a time related basis,
possibly every 6-8 weeks, depending entirely on the sensitivity, risk or profile the
programme has within the organisation.
Programme And Project Resources
These are often shared over all projects and identification, use and monitoring of the
resource pool is an important aspect of managing a programme of work. It is all too easy
for each individual project to plan to use the same resources to the full extent of theiravailability, thus ensuring over-utilisation and consequent slippage of the whole
programme. This can be avoided by the use of a suitable software planning tool which
allows sub-project or roll-up planning.
Other Structures Based On PRINCE 2
The PRINCE 2 organisation structure principles may be used to form the basis of a
variety of different projects. For example, many organisations are involved in Concurrent
Engineering or Rapid Application Development projects; a suitable PRINCE 2 compliant
structure has been produced and is included on the next page (Figure 30).
The model as presented is straightforward and conforms, generally, to the requirements of
PRINCE 2, with an owner with ultimate authority (The Project Board) reporting to
Corporate Management to ensure that the development project resides within the overallstrategy for the organisation, reflecting corporate objectives.
The Project Team is totally enclosed within the project structure, with separate Team
Managers responsible for the discrete stages of the work.
The project is under the direction of a Project Manager, exercising management control
on a day to day basis through the Team Managers and through Project Support, as the
Project Manager may be expected to be fully involved with the development, testing andinstallation of the emerging end-product.
Products will be passed forward within the organisation to the succeeding Team Manager,
and in some circumstances passed back for re-work.
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Figure 30: Rapid Application/Concurrent Engineering Organisation Model
Project Support will provide an important co-ordination function within this type of
project. Typical tasks will include:
♦ setting up regular (possibly 4-6 meetings between Team Managers and the Project
Manager every day);
♦ up-dating the Project Plan to show actual progress and expenditure profiles;
♦ initial preparation of Highlight Reports for the Project Board;
♦ liaison with any Project Assurance appointees to ensure that organisational standards
are being observed;
♦ incidental support to the Team Managers;
♦ provision of a communications centre for the whole project.
Quality Assurance imposes a discipline from the Corporate level through a published
Quality Management System and Project Assurance remains the responsibility of the
Project Board, although this may be delegated (but not to anyone within the Concurrent
Engineering/Rapid Application Development team).
Specification, Analysis& Design Team
Team Manager
- User/Customer- Analyst- Design
Resources
Development Team
Team Manager
- Programmer- Analyst- Design
Resources
Implementation & UserTesting Team
Team Manager
- User/Customer- Analyst
Resources
Project Manager
Project Support& Administration
Project Resources
Corporate Management Project Board & Project Assurance
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It should be stressed that the organisation structure shown does not form part of thePRINCE 2 Method but is included to illustrate how the principles within the method may
be easily adapted to reflect organisational needs.
PRINCE 2 Organisation - Summary
The key points within the PRINCE 2 Organisation Component are:
♦ Corporate or Programme Management appoints the Project Board, who have overall
and ultimate responsibility for the successful delivery of the project. Initially the
Executive member is appointed (Process SU1) along with the Project Manager.
♦ The Project Board endorse the Project Management Team designed and initially
appointed by the Project Manager and Executive within the SU Process.
♦ The Project Manager is responsible for day to day planning and control, helped where
appropriate by one or more of Team Managers. Project Support might be provided
where the Project Board believe this would help.
♦ The Project Board members may choose to delegate some or all of their Project
Assurance responsibilities, but accountability will always reside within the Project
Board, and ultimately with the Executive.
♦ Project Support provide administrative support (and sometimes technical help) to theProject Manager and, where appropriate, to the Team Manager(s).
♦ Project Assurance will always be a separate entity to Project Support.
♦ A Project Support Office might well address both support and assurance functions, but
these would need to be assigned to separate individuals within the Project Support
Office.
♦ Products and documents must be properly stored and safeguarded, and a suitable
Configuration Management System must be in force to make these arrangements;
Project Support will usually be responsible for the operation of the Configuration
Management System - the Project Manager is responsible for its integrity, which will
be audited by Project Assurance on behalf of the Project Board.
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UNDERSTANDING THE
PLANNING COMPONENT
AND
PRODUCT-BASED PLANNING
TECHNIQUE
Chapter
4
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Planning - Introduction & Overview
The PRINCE 2 Method does not prescribe any particular type of plans which must be
used on a project. The principles of “Product Based Planning” are incorporated in the
method within the “Techniques” section and the overall assumption is that some form of
software support planning tool will be used.
The exact form and layout of the plans is left for the implementing organisation to decide,
probably influenced strongly by whatever software planning tool is currently in use.
There will typically be up to 3 planning levels within a PRINCE 2 project, although there
is no limitation on the number of levels which might be utilised. Typical levels of planare:
♦ Level 1: Project Plans
♦ Level 2: Stage Plans
♦ Level 3: Team Plans
♦ plus Exception Plans where there has been a significant departure from the approved
plans and some re-planning must be done to recover the situation.
Individual Plans assigning particular Products and their associated work packages to
members of the project team might also be utilised if this is appropriate.
Figure 31: Levels of Plan In PRINCE 2
Plans at Levels 1 and 2 are necessary for effective planning of a major project – both theProject Plan and the Stage Plan are mandated in the Method.
Project Plan (Mandatory Plan)
Stage PlanStage Plan Stage Plan
Team
Plan
Team
Plan
Team
Plan
Team
Plan
Team
Plan
Team
Plan
Project Resources Report(Effort, Costs, Equipment, Direct Costs)
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Project Plans may provide sufficient detail for the early stage plans to be incorporatedwithin them. Plans at the lower Levels are optional but will usually be necessary to
produce in order to gain full understanding of the undertaking and to exercise effective
control at team level.
The plan structures at all levels (including the Exception Plans, which are intended to
replace the plan which it has been necessary to up-date) are similar in content and
structure; at team level for the individual, if these are used, the only plan needed will be asimple Gantt Chart or Activity List covering either one or two elapsed weeks. This type of
plan is often available as a standard output from the planning support software.
Figure 32: The PRINCE 2 Plan Package
Project Level Plans
Construction of PRINCE plans should normally be on a top-down basis; this will provide
a logical and controlled descent into detail and will help to identify any grouping of
Products and associated activities that might usefully be treated as a separate sub-project.
In some cases, however, it will be appropriate to work at the stage level in order to provide
a realistic picture of the total development. The more detailed activities will then need to
be grouped to provide an overall view at the project level.
PlanText
The Plan Text provides a high-level, overall view of the plan, summarising its key features
ProductBreakdownStructure
Identifying the Products/Deliverables that will be produced by the Project. The Products will be categorised under the headings of “Specialist”, “Management”, and “Quality” Products.
ProductDescriptions
Describing the Products/Deliverables that will be produced by the Project. There is a prescribed format for Product Descriptions
ProductFlow
Diagram
Describing the relationships that exist between each Product/Deliverable, and external entities.
PERTor
ActivityNetwork
Showing the relationships that extist between the Activities that will be undertaken to create the Products identified in the Product Breakdown Structure.
Ganttor
TimescalePlan
Derived from the PERT Network, this shows when Activities are planned to start and end. Major Review points (End Stage Assessments) are also shown on this plan.
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Product Breakdown Structure
The start-point will be to give consideration to the design of the plan (how many levels,
the general approach to planning, the most suitable software support tool to use,
involvement of external support services etc).
As the initial step, a list of Products to be produced during the project must be created.
These Products will be at the Project level and must be identified by the Project Manager
and the appropriate Team Manager where appointed. The resultant list should then be
critically reviewed with the Project Management Team in the light of what is known about
the proposed project, to produce an agreed list of high-level Products to be produced. This
is known as a Product Breakdown Structure and contains a list of the Specialist Products,Management Products, and Quality Products associated with the project.
Figure 33: Specialist, Management & Quality Products
Each Product must be supported by a Product Description which addresses the following:
♦ Product Title & Identification;
♦ Purpose;
♦ Composition;
♦ Derivation;
Management Information System
Specialist Products
SP01 - User Specification SP02 - Logical Design SP03 - Physical Design SP04 - Contract
SP05 - Hardware SP06 - Software SP07 - Communications SP08 - Integrated System SP09 - Technically Tested System SP10 - User Accepted System SP11 - Trained Staff SP12 - Test Products
Quality Products
QP01 - Product Descriptions QP02 - Quality Review Documentation QP03 - Project Issues Log QP04 - Quality Log
QP05 - Configuration Management
Management Products
MP01 - Project Initiation Document MP02 - Stage Plans MP03 - Lessons Learned Log MP04 - Risk Log MP05 - Business Case MP06 - Product Checklist MP07 - Highlight Reports MP08 - Project Start Notification MP09 - Project End Notification MP10 - Project Filing Structure
The Project ManagementStandard for the
Project
The Quality ManagementStandard for the
ProjectThe Technical Management
Standard for theProject
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♦ Format & Presentation;
♦ Allocated To;
♦ Quality Criteria;
♦ Type of Quality Check Required;
♦ People or Skills Required for Reviewing/Testing the Product .
The above headings may be added to but must not be omitted in order to secure PRINCE 2
compliance.
Product Descriptions form a significant part of the Quality Plan for the project and are
fundamental to its successful outcome. For these reasons Product Descriptions must not,in any circumstances be omitted from any PRINCE controlled project.
Figure 34: Example Product Breakdown Structure For The “User Specification” Product
Every PRINCE 2 project will have at least one Product identified (the End Product) and
defined in terms of a published and baselined Product Description. Baselining of a
Product Description will take place when the plan it relates to is baselined (agreement by
the Programme Director/Executive (for Programme Plans), the Project Board (for ProjectPlans) and the Project Manager (for Team Plans)).
A Product Description, once approved and base-lined, may only be changed via the
Change Control procedure.
SP01 - User Specification
User Requirements Enhancements
FunctionalRequirements
DataRequirements
EducationStrategy
TestingStrategy
Cut-OverStrategy
Fall-BackStrategy
Strategies
Short/MediumTerm
LongTerm
TechnicalTesting
UserTesting
ModuleTesting
SystemTesting
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Product Flow Diagram
AProduct Flow Diagram may then be drawn showing how the various products identified
are derived, one from another and from external Products and Entities. This helps to
confirm that all the Products that need to be produced have, in fact, been identified; all
Products in the Product Flow Diagram must balance with those in the Product Breakdown
Structure, and each must be supported by a Product Description.
Figure 35: Product Flow Diagram
The Product Flow Diagram helps set a basic approach and chronology for the completionof the Products. Stage beginnings and endings, and candidates for sub-project groupings
can also be determined from this diagram, although the final timings of Management Stage
endings will not be able to be made until later when the Gantt Plan (or Timescale Plan) hasbeen produced.
Construction of the Product Flow Diagram helps the project planners to appreciate theoverall approach and strategy that underpin the project. Any "missing" Products will be
more easily identified (these must of course be incorporated into the Product Breakdown
Structure and defined within Product Descriptions).
Less than obvious linkages between Products will be more clearly apparent at the time the
Product Flow Diagram is drawn, and the successive iterations will help to hone the overall
approach to a more realistic shape.
Another useful function of the Product Flow Diagram is the help it gives in identifyingActivities for inclusion in the activity plans.
SP01 - User Specification
SP02 - Logical Design
SP03 - Physical Design
SP04 - Contract
SP06 - Software SP05 - Hardware SP07 Communications
SP12 - Test Products
SP08 - Integrated System
SP09 - Technically Tested
System
SP10 - User Accepted System
SP11 - Trained Staff
Users/Existing System Feasibility Study
Potential Suppliers
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Figure 36: Product Flow Diagram With Activities Identified
The Activities identified on the Product Flow Diagram are sometimes referred to as
“Transformations” reflecting that they provide the means of transforming one or more
Products into another.
PERT Network
The PERT Network is a basic tool in project management; its full designation is
“ Programme Evaluation & Review T echnique” and the information to produce it may be
derived from the Product Flow Diagram. Alternative names for the PERT Network are“Critical Path Network”, “Critical Path Method”, and “MIST - Minimum Irreducible
Sequencing Technique”.
The Product Flow Diagram defines the data flow and relationships between Products to be
produced, and the PERT Network defines the activities needed to create each Product.
The PERT Logic Network & The Timed Network
The Logic Network shows the activities needed to produce each Product and establishes
the dependency relationship between activities. The Timed Network provides additional
information on the elapsed time to be taken for each activity and allows the total project
cycle time to be predicted. The Timed Network will also provide information on start andfinish times, critical paths, sub-critical paths and float.
SP01 - User Specification
SP02 - Logical Design
SP03 - Physical Design
SP04 - Contract
SP06 - Software
SP12 - Test Products
Users/Existing System
Feasibility Study
* Prepare & Issue Tenders
* Produce Tender Evaluation Criteria * Assess Offers & Select Supplier * Issue Contract
* Produce & Agree Program Designs
* Write Programs (& Fixes)
* Unit Testing * Suite Testing
* Extract Test Data
* Clean Data
* Produce Test Schedule
Produce Business (Logical) Design
Produce Business (Logical) Design
* Interview Users
* Produce Specification
Review FS
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Figure 37: PERT Network - Timed And Logic Diagram
Earliest Start Gantt Plan
Using the information on earliest start and finish times from the Timed Network, an
Earliest Start Gantt Plan can be produced. This chart will provide the basis for Project
Board approval. But first some tuning/resource smoothing has to be carried out.
Figure 38: Creating The Earliest Start Gantt Plan
Resource Smoothing
The Timed Network will have assumed unlimited resources were available andconcentrated solely on the underlying logic of the relationship between activities. This
Earliest Start Time Earliest Finish Time Latest Finish Time
Activity Total Float
0 3 3
10 Appoint ThePB Executive
0 0 3
3 2 5
20 Appoint TheProject Manager
9 6 11
11 5 16
30 Design & AppointThe Project Team
11 0 16
10 4 14
60 Prepare BoardPosition Paper 12 2 16
16 2 18
40 Produce TheProject Brief
16 0 18
3 7 10
50 Review TheStrategy Plan
5 2 12
3 8 11
70 Plan TheProject Approach
3 0 11
0 3 3
10 Appoint ThePB Executive
0 0 3
Earliest Start Time
(EST) Earliest FinishTime (EFT)
Latest Start Time (LST)
Latest Finish Time (LFT)
Duration
Total Float
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does not, of course mean that any number of people are available to the project, but thatthose that are assigned to the project are assumed to be able to work at any time (even to
the extent of carrying out simultaneous multiple activities.
Figure 39: Creating The Resource Smoothed Gantt Plan
The Earliest Start Gantt Plan will clearly show overlapping activities where resource usagewill be over-stretched. To inject reality into the plan it will be necessary to smooth the
resources.
Although not dealt with in the methodology, resource smoothing is an essential feature of
project planning. Resource smoothing is best carried out using a software support package
(such as Microsoft Project (MS Project), Project Manager’s Workbench (PMW), or
Primavera), initially, and then tuning "by hand". Full manual resource smoothing is a timeconsuming and tedious task involving many iterations and modification of both the Time-
scale/Bar Chart and the underlying Timed Network.
After smoothing, the resource usage may still be excessive, or the end date for the project
may have slipped back too far to be acceptable to the sponsor. In these cases it will be
necessary to reconsider the logic of the Timed Network and to plan for overlaps of activity
that would enable more effective use of resources and bring forward the delivery forecast.
Such action will invariably increase the risks to the project and will need to be properly
assessed and documented for a decision by the Project Manager or Team Manager and
subsequent endorsement by the Project Board.
Produce PlanId SourcesPrepare DocsPrepare I/VsAppointmentsInterviews
Un-smoothed Gantt Plan (Earliest Start)
Produce PlanId SourcesPrepare DocsPrepare I/VsAppointmentsInterviews
ManagementStage 1
ManagementStage 3
ManagementStage 2
Resource Smoothed Gantt Plan (With Stage Reviews)
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Project Gantt Plan
The Gantt Plan is the result of the resource-smoothed earliest-start bar chart. and provides
a view of the Products related to the envisaged time-scales for the total project, readily
showing where "clusters" of Products will be ready and thus point to natural Stage
beginnings and endings. The Project level Gantt Plan has the End Stage Assessment
control symbols added in, at appropriate key decision and resource commitment points and
is then ready for approval by the Project Board.
Figure 40: Gantt Plan With End Stage Assessments Added
Project Resource Reporting
A Project Resource Report provides a summary of the Effort and Cost of that effort on a
Stage-by-Stage basis. A separate Resource Plan is not specifically required by PRINCE 2,
as the Method presumes that a software planning tool will be in use and any resource
information required will be able to be drawn from the Project Plan and presented in
whatever format is required.
Information on the planned use of resources (and the subsequent record of actual usage) is
an essential element of decision support for management and should not be omitted
without good reason.
In projects where a software support tool is not being utilised, it may be produced by
taking a copy of the Project Gantt Plan and creating a "Transfer Sheet" for each resourcetype. The transfer sheet provides a statement of the resource usage against each activity
for the whole project; the planned effort usage for each stage is totalled and transferred to
the Project Resource Plan.
InitiateSpecifyDesignBuild
TestTrainHand-over
ManagementStage 1
ManagementStage 3
End Stage Assessment (ESA)
Project Initiation Project Closure
ManagementStage 2
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Stage 1 Stage 2 Stage 3Plan Actual Plan Actual Plan Actual
EFFORT (Staff Weeks)Skill Types
CustomersEngineersIT Analysts
Others
COSTS (£K)Skill Types
CustomersEngineersIT AnalystsOthers
Equipment
Fixed Price Elements
Total Stage Costs
Total Project Costs
Figure 41: Resources Report (or Plan)
The resource effort on the Project Resource Plan is then converted to resource cost by
reference to capitation or charge-out rates. Direct costs (for purchase of equipment etc) is
also added, as is the cost of any purchases for the development.
The aim is to capture the total, true costs of the project. When all the costs have been
identified on the Project Resource Plan, they are cumulated in order to provide input to a
Graphical Summary of the overall project.
Graphical Summary
This plan is not a stated or required part of the PRINCE 2 Method, but is useful to knowabout as it enables the project plans to be summarised on a single sheet in a graphical
format. It summarises the planned expenditure using the vertical axis to illustrate costs
and the horizontal axis for time. At the project level it is acceptable to show a cumulative
summary of each stage's planned costs , although the Project Board may require a more
detailed analysis. If this is required, the Project Resource Plan should be re-drawn to show
information at a similar level as it is important that all plans should be consistent with eachother.
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Figure 42: Graphical Summary Of The Plans
A useful feature on the Graphical Summary is the inclusion of delivery slots for major
Products. This information provides essential technical progress data and enables the
Project Board to assess the actual achievement against actual spend when reviewing the
plans at the end of each stage. The headings used in the Graphical Summary to show the
status of each Product may be used in conjunction with the Product Checklist. This
document has planned and actual dates inserted to show progress of Products. It is most
useful at Management Stage level but is also produced at Project level.
Earned Value Analysis
An extension to the Graphical Summary is the Earned Value Analysis chart. This
technique takes performance measurement a step further, enabling a clear measurement of
the project work accomplished and more disciplined forecasts of the likely task and
Product completion dates and associated costs. The concept of Earned-Value Analysis is
not incorporated into the PRINCE 2 Method, but is being used increasingly and may be
expected to be included in a subsequent revision.
Earned Value replaces the traditional practice which only compares Actual Cost with
Actual Progress and is based on assigning a value to the achievement of project work.
Ideally achievement is measured in terms of Milestones and Major (ie Product-level)
Products delivered.
Time
Cost
S p e c i f i c a t i on
B u s i n e s s D e s i gn
A gr e e d D e s i gn
C on t r a c t
C om pl e t e d S y s t em
T e s t e d S y s t em
T r ai n e d S t af f
I ni t i al S u p p or t C om pl e t e
P i l o t H an d ov er
C u s t om er A c c e p t an c e
P r o j e c t C l o s e- O u t
Product Ready
Quality Reviewed
Work Finished
Work Started
Work Package Agreed
Management
Stage 1
Management
Stage 3
Management
Stage 4
Management
Stage 2
Stage £20K ....
Stage £14K ....
Stage £58K ....
Stage £18K ....
£20K £34K
£92K
£110K
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Figure 43: Earned Value Analysis
The value is usually monetary but can be expressed in any appropriate unit such as staff
hours or days. The value to be earned when a specific Milestone or Major Product is
achieved is based on the planned cost of achieving the Milestone.
For example, if the plan showed that £100,000 was required to achieve a specified
Milestone/Project Product, £100,000 worth of Earned Value would be credited to the
Project Manager (as “owner” of the Product”) when achievement of the Product was
demonstrated (ie that the Product had successfully met all its Quality Criteria). Again, it is
worth emphasising that the plans described above, the Graphical Summary and the Earned
Value Analysis plan are not requirements of PRINCE 2, but are useful vehicles forillustrating project situations to the Project Board and other senior managers.
Risk Analysis
Risk analysis must be carried out in a structured manner. A Risk Analysis should always
be completed at Project Initiation and up-dated, minimally, when preparing for each End
Stage Assessment/Project Board meeting.
PRINCE 2 requires that a Risk Log be kept to record the (hopefully reducing) risks faced
as the project progresses. The risk analysis provides a complementary part of the BusinessCase for the Project and will be summarised in the Project Plan Description.
Time
Cost
S p e c i f i c
a t i on
B u s i n
e s s D
e s i gn
A gr e
e d D
e s i gn
C on
t r a c t
C om
pl e
t e d S y s t em
T e s t e d S y s t em
T r ai n
e d S t af f
I ni t i al
S u p p or t
C om
pl e
t e
P i l o
t H
an
d ov
er
C u s t om
er A
c c e p t an
c e
P r o
j e c t C l o
s e- O
u t
Product Ready
Quality Reviewed
Work Finished
Work Started
Work Package Agreed
£200K
£110K
Time Now
Actual Cost
Planned Cost
Value Earned
Predicted Revised Cost
Predicted Cost Over-Run
Predicted Schedule
Over-Run
Projection of Actual Costs
Original Planned Cost
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The risk analysis will address other issues, of course, (eg staff turnover; projectmanagement expertise, third party suppliers etc) but if time is to be saved by the
compression of time-scales by overlapping naturally dependent activities, this presents a
very real risk to the success of the undertaking and may well involve some nugatory
expenditure. For these reasons the implications of resource smoothing at this point in
planning must be seriously considered.
Measuring The Business Benefits
When all the resource usage and cost information has been assembled, the Project
Business Case can be created (“Initiating A Project”) or reviewed (“Managing Stage
Boundaries”).
Figure 44: Simplified Business Benefits - Costs:Benefits Analysis & Investment Appraisal
A high-level Business Case would normally have been produced during the Feasibility or
Preliminary Study, based upon information contained in the organisation's Strategic Plan.
This initial business case would have been subsequently refined and, following approval
by Corporate or Programme Management, passed with the Project Mandate to the Project
Manager for formal Start-up and, following approval at the Project Initiation Meeting, the
Initiation of the project.
The main elements of the Business Case are the reasons for the project, and a Benefits
and Costs Statement. An optional Costs:Benefits Analysis and Investment Appraisal may
also be created to measure the Business Benefits of the project’s outcome. If thought to benecessary a Sensitivity Analysis may also be produced. A Risk Analysis and proposals
arising from it, recorded in the Risk Log, is also closely linked to the PRINCE Business
Case.
Essentially all costs are fed into the model and all tangible benefits added in. The result
will be a Cash-flow for the project. This is then discounted by the appropriate rate(currently 6% in Government, but often higher within the private sector) and the Dis-
counted Cash Flow identified. The areas of main interest are:
Year 0 1 2 3 4 5
Costs : (10 0 ) (2 0 ) (2 0 ) (2 0 ) (4 0 ) (3 0 )
Benefit s : 0 4 0 8 0 10 0 10 0 10 0
CashFlow: (10 0 ) 2 0 6 0 8 0 6 0 70
Cumulat ed: (10 0 ) ( 8 0 ) (2 0 ) 6 0 12 0 19 0
Discount Fact or (@6 %) 1.0 0 .9 4 .8 8 .8 3 .78 .74
Discount ed Cash Flow (10 0 ) 19 5 3 6 6 47 52
Cumulat ed DCF (10 0 ) ( 8 1) (2 8 ) 3 8 8 5 13 7
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♦ the point at which the project starts showing a positive return
♦ the overall return on the investment in the project (the Net Present Value).
Where a full Cost:Benefits Analysis and Investment Appraisal is not required by the
Project Board, a narrative statement of the Benefits should be produced. This lists all the
anticipated benefits but does not attach any specific financial value to them.
Project Plan Text
The plans described are used for the overall control of the project and provide a summary
of the planned work and expenditure.
To initiate the project (and to approve each successive Management Stage) the Project
Board will require a document which ties the complete plan package together and
describes the approach and general philosophy. This document is the Plan Text (alsoknown as the Plan Description, Plan Narrative or Executive Summary) and will be mainly
a narrative summary with the plans described above attached as appendices.
The Plan Text typically contains the following information:
♦ the plan pre-requisites (what must be in place in order for the plan to work - eg staff
recruited, users assigned, equipment installed and building work completed);
♦ the plan assumptions (the bases upon which the plans has been constructed - eg staff
rates, discount factors used etc);
♦ the plan risks (the specific areas of risk that have been identified and must be closely
monitored - eg overlapping activities, staffing concerns etc);
♦ the overall time-scale for the project and how it has been achieved;
♦ the impact of resource usage on this project on other projects, undertakings etc.
♦ the return on the investment and the overall business case related to project viability.
Management Stage Plans
The Management Stage Plan package has a similar structure and its production follows a
similar path to the Project Plan package. The Stage Plans are produced in the “Managing
Stage Boundaries (SB)” Process.
Short horizon, limited commitment, planning is a fundamental feature of PRINCE. The
aim is to provide an overall view of the likely project profile (via the Project Plan package)with a succession of short term limited commitments for the sponsor (via the Management
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Stage Plan documentation). The structure of the PRINCE 2 Stage Plan package is asfollows:
♦ Stage Product Breakdown Structure - listing all the Stage Products to be produced.
Product Descriptions must also be available (or produced) for all Stage Products.
♦ Stage Product Flow Diagram - listing the Products to be produced during the stage
and the derivation paths.
♦ Stage Timed PERT Network - showing the Earliest Start/Finish Times, Float and
overall project timings.
♦ Stage Gantt Plan - This plan relates specialist activities against time-scales (typically
on a week-by-week basis) and summarises the level of control (frequency of
Checkpoints, Quality Reviews and another meetings required by the Project Board).
♦ Stage Resources Report- summarises the resource effort and costs for the stage.
Where there is no software support package in use, a Stage Resource Plan should be
provided to identify the effort and costs to be approved by the Project Board. It is
produced by taking the Stage Gantt Plan and creating a Transfer Sheet for each
resource. The Stage Resource Plan is usually constructed on a week-by-week
timescale and, in any case, must match the Stage Gantt Plan.
♦ Optional Stage Graphical Summary - provides a graphical view of the time:cost:
achievement for the stage. This might be supplemented or replaced by and Earned
Value Analysis Plan.
♦ Stage Plan Text - ties together and summarises the above plans and will essentially
cover the stage plan pre-requisites, assumptions and risks. This narrative might be
incorporated into the Project Plan Description.
Initiate
SpecifyDesignBuild
TestTrainHandover
ManagementStage 1
Management
Stage 2
Management
Stage 3
Start-UpProject Brief
Project Approach
PIDInterview Users
Produce Spec
Outline DesignFinal DesignAgree Design
Figure 45: Stage Plan Derived From The Project Plan
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Team Plans
Team Plans will usually (but not necessarily) be required for all but the smallest of
projects. They drop the Stage Plans down to an increased level of detail in much the same
way that the Stage Plans reflect an increased level of detail of the Project Plans.
Team plans are optional within the PRINCE 2 Method and where they are produced they
will normally be prepared by the Team Manager within the “Managing Product Delivery
(MP)” Process, based on the authorised Work Package in consultation with the TeamMembers and agreed with the Project Manager.
The Team Plan Package, where produced, will be related to a specialist team working on a
specific Product or set of Products or they might be aimed at an individual working within
the project. Team Plans will often reflect the work to be carried out in a Technical Stagewithin a Management Stage of the project.
Individual Plans
Individual Plans (sometimes referred to as Work-to Lists) are not required within
PRINCE 2 but may, at the Project Manager/Team Manager’s discretion, be drawn up for
individuals working on specified Products. The Individual Plans, where used, will be
derived directly from the Detailed Gantt Plan and will form the basis for discussion of
progress at the regular (usually weekly, but at the regularity agreed within the authorisedWork Package) Checkpoints.
The Individual Plan may comprise a detailed Bar Chart/Gantt Chart, Activity List, or
might only identify start and finish dates and Activity Status for specific Products.
PRINCE 2 Planning - Summary
There is a need within any project to produce plans in sufficient detail to derive
understanding of the way that objectives are to be achieved.
In the final analysis, control can only be exercised at the level that is enabled by the plans.
If a project is planned only at a high level then detailed control cannot be effected. The
recommended approach is to plan in detail to get a full understanding of what is involved
and then to select an appropriate level of control based on what is known about the project.
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Chapter 5
UNDERSTANDING THECONTROLS COMPONENT
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Introduction To Controls
The main mission of any project management method is to enable management at all
levels to exercise control over what has been planned and approved. The approved plans
reflect what is required to be achieved and the structure of controls enables managers to
reach informed decisions about committing resources and giving approval to proceed.
Regular and formal monitoring of actual progress against the approved plan is essential to
ensure the timeliness, cost control and quality of the system or undertaking being
developed. PRINCE 2 provides the essential support structure of Management and
Product-oriented controls to monitor progress, supported by a reporting procedure which
enables re-planning or other appropriate corrective action to be taken.
PRINCE 2 controls fall into three main categories – Management Controls, Quality
Controls and Configuration Controls; the latter two are covered in separate Chapters in
this book.
Management Controls
Most PRINCE 2 management controls are “event-based”; this facilitates management-
by-exception and helps reduce the overall cost of project control by limiting managers’
effort to occasions when decisions are really needed.
PRINCE 2 provides a structure of management controls to be applied throughout the
project. These controls cover all aspects of project activity and, at the highest level, allow
the Project Board to assess project achievement and status prior to committing furtherexpenditure.
Controls are applied through measuring the progress towards production of a set of
pre-defined outputs (Products or Deliverables). The overall structure of Management
Controls is defined at Project Initiation (IP4) to ensure that the project is set up with clear
Terms of Reference, incorporating agreed and measurable Objectives and an adequate
management structure.
Controls are applied at Project Board, Project Manager and Team Manager levels.
Configuration control and Quality control is exercised by the Project Manager and Team
Managers. The main Project Board controls are:
♦ The Project Initiation Meeting (establishing whether there is a worthwhile and
viable project);
♦ Project Initiation & the Project Initiation Document (PID) (fixing a baseline for
the project);
♦ End Stage Assessment (ensuring the project is still viable and authorising progress
to the next Management Stage through the approval of the next Management StagePlan);
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♦ Tolerance (providing time and cost margins within which the Project Manager has
discretion to deviate from the approved plan without seeking authority from the
Project Board);
♦ Mid-Stage Assessment (where significant deviations from the approved plans are
considered and an Exception Plan approved);
♦ Project Closure (authorising close-down of the project after ensuring that all the
project’s Products have been delivered to the required quality standards and that
customer acceptance has been obtained);
♦ Highlight Reports (regular, normally time-based, reports from the Project Manager
to Project Board members to keep them informed of the progress and status of the
current Management Stage);
The Project initiation Meeting
The pre-project Process “Starting Up A Project (SU)” seeks to answer the question “Do
we have a worthwhile and viable project?”. Creation of the Project Brief, Risk Log,
Project Approach, Initiation Stage Plans, Organisation Structure and Role definitions
contribute to answering this question and formal acceptance that there is a worthwhile
project on offer is confirmed by the Project Board at the Project Initiation Meeting (PIM).
There is no real need to hold a formal meeting for all projects but the formality that ameeting provides will be appropriate for major investments. The PIM is a control function
of “Authorising Initiation (DP1)” which sits in the “Directing A Project (DP)” Process.
The “official start” of the project occurs following this approval which enables the Project
manager and team to begin to create the elements of the Project Initiation Document (PID)during the required Initiation Stage of the project.
Figure 46: Pre-Project and the Project Initiation Meeting
• Project Brief
• Risk Log• Project Approach
• Organisation
• Initiation Stage Plan
Initiation
Stage
Project InitiationMeeting
Do we Have
A Worthwhile&
viable Project?
Stage 2
End Stage
Assessment
End Stage
Assessment
The Project Initiation
Document Provides
the Project Baseline
Pre-Project ........ The Project Lifecycle .........................
The End Stage Reportconfirms the result of the
last Stage and reports on
the overall project viability.
It also contains the plans
for the next Stage.
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Project Initiation & the Project initiation Document (PID)
Project Initiation ensures a firm foundation and provides a positive start to the project,
ensuring that the terms of reference, objectives, plans and controls, business risks, benefits
and financial return, quality plans, organisation structure and job definitions are clearly
defined, published, understood and agreed.
Every organisation using PRINCE 2 as the basis for its project management standards
should create, agree and publish a suitable specification for its content and quality criteria– this will normally take the form of a Product Description and a suitable start-point is the
outline contained in Appendix A17 of the PRINCE 2 Method manual.
This Management Product is very important to the project and is the result of two
Processes - “Starting Up A Project (SU)” and “Initiating A Project (IP)”. The key output
is the Project Initiation Document (PID) which, when approved, is a reference document
used to Baseline the project.
The PID is used throughout the project as a reference back to the original intentions and
management objectives. During the “Closing A Project” Processes, the PID is used to
reference the original Acceptance Criteria and secure Customer Acceptance (CP1), and to
provide the statement of the original project objectives, scope and constraints for creation
of the End Project Report.
End Stage Assessment (ESA)
This is a mandatory management control and occurs at the end of each stage. It typically
consists of a formal presentation to the Project Board of the current project status, and
reviews the overall Business Case and risks. The vehicle used for this is the End Stage
Report.
Stage 1 - Planning & Definition Stage 2 - Design & Contract
End Stage Assessment (ESA) “Directing A Project” Process •Review the Outcome of Stage 1; •Review the Project Plans; •Review the Business Case (Benefits & Risks); •Preview the Plans for Stage 2.
•Endorse the Project & Approve continuation of the project up to the next End Stage Assessment.
“ Managing Stage Boundaries” Process •Up-date the Plans for Stage 1; •Up-date the Project Plans; •Up-date the Business Case (Benefits & Risks); •Prepare the Plans for Stage 2
Figure 47: Handling End Stage Assessments
The approval of the proposed plans for the next stage is also obtained. Project Board
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approval, with agreement by all the members, must be obtained before the project canproceed to the next stage.
Attendees at an End Stage Assessment
The attendees at an End Stage Assessment will be as follows:
The Project Board members (attendance should not be delegated to someone else except
in exceptional circumstances; where a Project Board member finds it necessary to send a
representative rather than attend personally, the representative must be empowered to take
decisions on behalf of the Project Board member. Frequent delegation of attendance
should provoke the Executive to consider replacement of the non-attending Project Boardmember).
The Project Manager (the Project Manager is not a member of the decision-making
Project Board but must attend to report to the Project Board and to take direction).
Project Assurance (to confirm that project management standards are being observed and
that “all is well” with the project. This function is essentially one of “reassurance”).
Project Support (to take care of the administrative arrangements and record the End
Stage Assessment).
In addition to the above, the Project Board and Project Manager may invite any other
person or representative of any organisation who may be able to assist in the ProjectBoard’s decision making process. These might include Team Managers, Team Members,
Policy Advisors, Suppliers and Sub-Contractors.
ESA Agenda
Although PRINCE 2 does not specify a specific agenda for running ESAs, the following
suggested agenda will help in preparing for this important Project Board control:
Item 1: Introductions (if external people are present for the first time).
Item 2a: Project Manager’s Report on the Current Management Stage.
Item 2b: Project Assurance report on the Current Stage.
Item 2c: Discussion, Questions and Acceptance of Project Manager’s Report.
Item 3a: Project Manager’s Report on the Overall Project:
- Project-Level Products – Added/Removed.
- Timescale – Current/Forecast to Completion/Variation + Reasons.
- Costs/Effort – Current/Forecast to Completion/Variation + Reasons.
Item 3b: Project Assurance report on the Overall Project and Projections.
Item 3c: Discussion, Questions and Acceptance of Project Manager’s Report.
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Item 4a: Project Manager’s Report on the Business Case & Risks:
- Business Case – Original/Current/Forecast/Variations + Reasons.
- Risks – Original/Current/Forecast/Variation + Reasons.
- Risk Log –Entries Removed; New Entries.
Item 4b: Project Assurance report on the Business Case & Risks.
Item 4c: Discussion, Questions and Acceptance of Project Manager’s Report.
Item 5a: Project Manager’s Proposals for the Next Management Stage.
Item 5b: Project Assurance comments on the Proposals for the Next Stage.
Item 5c: Discussion, Questions and Acceptance of Project Manager’s Proposals.
Item 6: Discussion, Questions on Overall Situation. Agreement on Future Actions.
Item 7: Any Other Project Related Business (eg External Information Which
Impacts on the Project’s Future).
Item 8: Project Board Formal Sign-off of the Current Stage and Commitment to
the Current View of the Project Plan, Business Case and Risks.
Acceptance of the Next Management Stage Plans. + Thanks and Close.
Remember, the information to prepare the Project Board for the End Stage Assessment
will be contained in the End Stage Report, prepared in the “Reporting Stage End (SB5)”Process which is part of “Managing Stage Boundaries (SB)” Major Process.
Mid Stage Assessment (MSA)
This Project Board control is held only to review a significant deviation from an
approved Management Stage Plan and to approve an Exception Plan produced, at the
request of the Project Board, following an Exception Report.
An Exception Report is produced by the Project Manager to alert the Project Board assoon as it is apparent that a significant departure from the approved plan is forecast.
The Exception Report records what has happened to cause the “significant departure” fromthe approved plan, the impact on the Management Stage, overall Project and its Business
Case. The plan will also recommend appropriate action to take the project to the end of
the Stage and, where possible, recover the situation.
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Figure 48: Handling Mid Stage Assessments
The Exception Report may be triggered by a number of different events, sometimes
without much advance warning, but in most cases a deteriorating situation will be known
by the Project Manager and observed by Project Assurance. Where Project Assurance
become aware of a Management Stage in decline an immediate report must be made to the
appropriate Project Board member (or the Executive). The Project Manager should
provide advance warning to the Project Board members via the Highlight Report – it is
most important to “come clean” and not attempt to disguise or hide the situation in the
hope that something will happen to improve matters – it invariably won’t happen! Where
appropriate the Project Manager should advise the Project Board members informally (by
telephone, e-mail, internal memorandum etc) rather than wait for the next formal report.
Tolerance
The measure of a “significant departure” is that the Tolerance stated by the Project Board
at the beginning of the management stage has been, or is likely to be, exceeded.
Standard Tolerance in PRINCE 2 is measured in terms of Time (Schedule) and Cost.There are other types of Tolerance which may be applied; these include Tolerance on
Quality, Technical Conformance, Scope and Risk. Tolerance need not necessarily be
equal – for example, it may be appropriate to set differential Tolerance of +0 and –4
weeks, coupled with cost Tolerance of +£10K and -£30K depending on where prioritieslie.
Stage 1 - Planning & Definition Stage 2 - Design & Contract
Mid Stage Assessment(MSA)
“Directing A Project” •Consider the Exception Plan at an unscheduled Mid Stage Assessment.
•Review the Problems with Stage 1;
•Review the Impact on the Project Plans;
•Review the im[pact on the Business Case (Benefits & Risks);
•Preview the revised Plans for the remainder of the Stage.
•Endorse the Project & Approve continuation of
the Stage up to the next End Stage Assessment.
“Controlling A Stage” •Deviation from approved Stage Plans Forecast;
•Exception Report Created - Reasons; Impact; Options; Recommendation; •Direction from Project Board .... Create an Exception Plan;
“Managing Stage Boundaries” •Produce an Exception Plan
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Figure 49: Tolerance - plus/minus 1 week; plus/minus 10%
The level of Tolerance is decided by the Project Board following recommendations by the
Project Manager. Tolerance is exercised mainly for a Management Stage but is also
appropriate at Project and Team Levels.
Project Tolerance is set by Corporate/Programme Management. The Executive member
of the Project Board is responsible for ensuring that Project Tolerance has been
established and recorded in the Project Brief. If at any time Project Tolerance is forecast
to be exceeded it is the responsibility of the Executive to report to Corporate/Programme
Management and to obtain new direction (possibly re-baselining the project and
establishing new Project Tolerance levels).
(Management) Stage Tolerance is agreed by the Project Board and set by the Executive.Stage Tolerance is always set within the context of the Project Tolerance – the Project
Board do not have any discretion to exceed Project Tolerance without authority from
Corporate/Programme Management. Where Tolerance is forecast to be exceeded the
Project Manager will convey this to the Project Board via an Exception Report which will
typically be followed up by an Exception Plan; alternatively, the Project Board may
decide to prematurely close the project.
Product Tolerance will usually be recorded in the Work package agreed between the
Project Manager and the Team Manager responsible for the Products addressed by the
Work Package. Product Tolerance will be agreed in “Accepting A Work Package (MP1)”
and used as part of the basis for Checkpoint Reporting in “Executing A Work Package
(MP2)”. Obviously, Product Tolerance must not, individually or collectively, exceed the
approved Stage Tolerance.
Cost
Time
Planned Delivery & Total Cost
2 4 6 8 10 12 14 16 18 Weeks
£110K
£100K
£90
£80K
£70K
£60K
£50K
£40K
£30K
£20K
£10K
Plus 10% Tolerance
Minus 10% Tolerance
Plus 1 Week Tolerance
Minus 1 Week Tolerance
o
STAGE PLAN
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Figure 50: Summary of the PRINCE 2 Exception Procedure
Tolerance is a major control for the Project Board, which allows its members to focus on
exceptions rather than be swamped with information about work which is proceeding to
plan. Similar benefits also accrue for Corporate/Programme Management who are able to
leave responsibility for the project to the Project Board, sure in the knowledge that any
major departures will be brought to their attention. Similarly for the Project Manager who,by setting Product Tolerance with Team Managers/Suppliers, can direct attention to those
areas of the project which do need additional support. Project Assurance has a vital role to
play here in assuring the Project Board (and the Project Manager for Individual Products)
that all is “set fair”.
Approving An Exception Plan
As mentioned above, the Mid Stage Assessment (MSA) in PRINCE 2 is held only toapprove an Exception Plan, following the raising of an Exception Report. Obviously,
MSAs will not be planned in advance and will only be held exceptionally.
If the duration of a proposed Management Stage is deemed to be too long to be acceptable
to the Project Board, then the Stage should be broken into more than one Management
Stage with an End Stage Assessment at each new break. The Mid-Stage Assessment
control is not appropriate for breaking up long duration Stages. Neither is the MSA
intended to be the vehicle for “incidental progress meetings” held by the Project Board;
the PRINCE 2 Method makes no provision for such meetings. The End Stage Assessment
and the Mid-Stage Assessment are decision-based meetings and major Project Board
controls to ensure that all work being undertaken has the support and overt approval of thekey managers.
CS8Escalating
Project Issues DP4Giving
Ad-Hoc Advice
1: Exception Report
DP3Authorising A Stage or
Exception Plan
SB6Producing An
Exception Plan
2: Exception Plan Request)
3: Exception Plan
CS1 -Authorising A
Work Package
4: AuthorisationTo Proceed
Mid-Stage
Assessment
Premature Termination of Project
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Project Closure
This provides a final review of the project's work is held, usually (but not necessarily) in
the form of a Project Board meeting. This is similar in structure to an End Stage
Assessment but relates to the entire project rather than a single stage. The objective is to
ensure that all the project Products/Deliverables have been satisfactorily delivered to their
stated quality standard and that the project documentation is complete.
A review of the contribution made by the project management standards and approachesused by the project will be carried out within the “Closing A Project (CP)” Process and a
Lessons Learned Report produced for consideration by the Project Board. The Lessons
Learned Report records what has been learned from using the PRINCE 2 project
management and quality management standards for the project and is first created during
the “Initiating A Project – Setting Up Project Files (IP5)” process and “populated” as theproject progresses; it will eventually be sent, via Corporate/Programme Management to
the organisation’s manager responsible for quality.
Recommendations will also be made by the Project Manager for Follow-on Actions to
record and trigger any further work recommended following the closure of the project.Recommended Follow-on Actions will usually be derived from any outstanding Project
Issues, recorded on the Issues Log and from recommendations impacting on operational
and maintenance of the delivered outcome.
Highlight Reports
The Project Board is kept informed of the progress of the Management Stage (and the
project) against the approved plans via regular, time-related Highlight Reports. These are
prepared by the Project Manager using information derived from Checkpoint Reports and
following a review of the status of the Management Stage. They are usually providedmonthly, although their frequency will always be decided by the Project Board.
Highlight Reports are usually sent through the post or by e-mail; the objective is to
remove the need for unnecessary time-related Project Board meetings which consume theProject Board members’ valuable time, while still keeping them abreast of significant
developments. The format for Highlight Reports will typically include:
♦ a statement of the progress made during the last (usually monthly) period;
♦ a statement of problems during the last period, and how they were handled;
♦ confirmation of the Activities and Products to be worked on during the next period;
♦ a statement of the financial and schedule situation for the overall project and the
current Management Stage.
Some organisations specify that Highlight Reports should be kept to one side of A4 (or itsequivalent) and this makes very good sense.
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Where the project is part of a Programme of work, separate Project and ProgrammeHighlight Reports will normally be produced and special attention must be paid to
reporting on interfaces with associated projects.
It is always good practice to agree a common format for Highlight Reporting where a
Programme Director (or Project Board responsible for a number of projects) has
responsibility for assessing Programme progress. A graphical representation is a useful
medium for achieving a common reporting structure, especially in a Programmeenvironment where the Programme Director may prefer to have a regular, time-based
meeting where individual project Managers present their Highlight Report Summaries in
short time units. A suitable format which can be adapted for this purpose is the Graphical
Summary/Earned Value Analysis plan described in the “Understanding Planning” Chapter
in this book.
Checkpoint Reports
Progress on the work of a Team against the agreed Work Package is the subject of the
Checkpoint Report. Typically a Checkpoint Report will be created following a
Checkpoint (meeting) in the “Managing Product Delivery Process – Executing A Work
Package (MP2)”. Its format and frequency will be agreed in “Accepting A Work Package
(MP1)” and it will generally mirror the information contained in the Highlight Report to
ease the task of reporting.
The Checkpoint Report is used to up-date the Management Stage Plans with “actuals” to
date and will ultimately be used as an input to the Highlight Report to inform the ProjectBoard of progress made.
Stages
Stages are partitions of the project with decision points at their conclusion, and sometimes
during their life.
PRINCE 2 differentiates between “Management Stages” (which equate to the commitment
of resources by the Project Board and a decision to continue with the project and authority
to spend) and “Technical Stages” which comprise sets of technical activities leading to astated Product.
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Initiate
Specify
DesignBuildTestTrainHandover
ManagementStage 1
ManagementStage 2
ManagementStage 3
Technical Stages
Project Review of Management Stage at End Stage Assessment (ESA)
Project Initiation Project Closure
Figure 51: Management & Technical Stages
Technical Stages will often overlap and be run in parallel; they are normally planned andmanaged by Team Managers who report to, and take direction from, the Project Manager.
Management Stages will always run in series.
In the above diagram, the Technical Stages have been planned to run in parallel. Of
course, in a smaller project these might well be described as “Activities”; in medium to
larger projects, the Activities will often combine to provide the Technical Stages.
In only the most exceptional circumstances will authority be given for work to commence
on the next Management Stage before all the Products of the current Management Stage is
completed.
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Chapter 6
UNDERSTANDING THE
STAGES COMPONENT
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Introduction
Stages are partitions of the project with decision points at their conclusion and,
sometimes, during their life.
Management & Technical Stages
PRINCE 2 differentiates between “Management Stages” (which equate to the
commitment of resources by the Project Board and a decision to continue with the projectand authority to spend) and “Technical Stages” which comprise sets of technical activities
leading to a stated Product.
Figure 52: Management and Technical Stages
Technical Stages will often overlap and be run in parallel; they are normally planned and
managed by Team Managers (within the “Managing Product Delivery (MP1)” Process)
who report to, and take direction from, the Project Manager. Management Stages, on the
other hand, will always run in series; they will overlap only in exceptional circumstances
and always only with the prior agreement of the Project Board.
In the above diagram, the Technical Stages have been planned to run in parallel. Of
course, in a smaller project these might well be described as “Activities”; in medium to
larger projects, the Activities will often combine to provide the Technical Stages. In only
the most exceptional circumstances will authority be given for work to commence on the
InitiateSpecifyDesignBuildTestTrain
Hand-over
ManagementStage 1
ManagementStage 3
Project Board Review of Management Stage - End Stage Assessment
(ESA)
Project Initiation Project Closure
ManagementStage 2
Technical Stages
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next Management Stage before all the Products of the current Management Stage iscompleted.
Management Stages
Each PRINCE 2 controlled project will contain at least two Management Stages - one
(the Initiation Stage) for planning the project and the other containing the “action” portion,or implementation of the project.
Management Stages enable the Project Board to control the release of funding for the
project and provide the major control for the project. This is known as “Limited
Commitment”.
Approval of each Management Stage commits the effort, cost and time resources
contained within the Next Stage Plan (prepared in the “Managing Stage Boundaries (SB)”
Process). Project Board approval to each Management Stage is given in the context of
endorsing continuation of the overall project.
The important thing here is that Project Board members understand that the estimates of
effort, cost and time within the Project Plan are “soft” estimates only and certainly not castin stone. The originally approved Project Plan will be embodied in the approved Project
Initiation Document which will have been “frozen” at the time it was formally approved
(in “Authorising A Project (DP2)” Sub-Process) at the conclusion of the “Initiating A
Project (IP)” Process. Each Management Stage will culminate in an End StageAssessment (ESA), at which point the following options will be open to the Project Board:
♦ Continue into the Next Stage;
♦ Re-visit part (or all) the Current Stage;
♦ “Freeze” the project for a finite or an indeterminate period;
♦ Abort the project.
The Project Board should not treat lightly any proposal to commence the next
Management Stage before all the Products of the Current Stage are complete.
Exceptionally the Project Board may agree to this but the practice is dangerous and may
well result in nugatory expenditure.
Updating The Business Case
At the conclusion of each Management Stage, the Business Case must be reviewed and
updated. Specifically this will mean up-dating the statement of Business Benefits to
confirm that the project remains on track to achieve them. Where the Business Benefits
are supported by a Cost:Benefit Analysis, this must be re-assessed and the results reportedto the Project Board.
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The Risk Assessment must also be reviewed and the Risk Log updated, minimally at thecompletion of each Management Stage.
Technical Stages
Technical Stages are quite different from Management Stages in that they will invariably
be planned to run in parallel, within one or more Management Stages. This saves time
within the Management Stage and enables the best use to be made of the available
resources.
Figure 53: Creating The Stage Plan From The Project Plan
In most major projects, Technical Stages will be present, planned and controlled by Team
Managers working directly for the Project Manager.
Typically Technical Stages will address specific specialist areas of the project such as
Work Packages placed with Suppliers under the cover of formal contracts. There will,
however, also be room for Technical Stages for discrete parts of the project being
undertaken by internal resources, such as the creation of the Specification for the project’soutcome, as illustrated in the diagram. This work will best be planned and managed by a
customer or user.
Handling The End Of A Management Stage
Handling Management Stage endings is a straightforward task once the basic principles
of PRINCE 2 planning and control are properly understood. The main feature to bear in
InitiateSpecifyDesign
BuildTestTrainHand-over
ManagementStage 1
ManagementStage 2
ManagementStage 3
Start-UpProject BriefProject Approach
PIDInterview UsersProduce Spec
Outline DesignFinal DesignAgree Design
Management Stage 1
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mind is that as Management Stages must not run in parallel, some degree of planning forthe next Management Stage must be included within the current Management Stage.
PRINCE 2 planning allows any combination of activities to be planned and executed
provided authority for the work is obtained from the Project Board. It is, therefore, quite
acceptable to be working on Products which will be delivered in the next Management
Stage provided approval and authority has been given. This enables Management Stages
to “butt” against each other and avoids the need to stop work on the project while Project
Board members assess the content of the End Stage Report, updated Project Plans, updatedBusiness Case, and the Next Stage Plans.
Figure 54: Handling Management Stage Endings
The approach does mean that a risk is being taken that, should the project be terminated at
the End Stage Assessment, some nugatory costs would have been incurred - but this risk is
well worth taking.
If, as is likely, the Project Board is unwilling to accept up to two weeks’ delay to the
project at every Management Stage end, this approach is the only real alternative. Failureto plan for Management Stage endings will inevitably put pressure on the Project Manager
to undertake some preliminary work on the next Management Stage without formal
authority to do so, and this must be avoided.
Stages - Summary
Management Stages are key control components within a PRINCE 2 project. Adequate
review procedures must be established to ensure that commitment of effort and funding
resources is fully under the control of the Project Board.
“Natural” Stage End
Time needed for the Project
Board to review the papers
& prepare for End Stage Assessment
Work, Effort & Cost “at risk”
Stage 1 Stage 2
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UNDERSTANDING THERISK MANAGEMENT
COMPONENT
Chapter 7
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Introduction
PRINCE 2 places stress on the need for a strong and visible Business Case with the
Business Benefits and Risk Management being key features within this concept. No
specific techniques are suggested by the Method, although there are some pointers to
commonly available packages which will help, especially in the identification andmanagement of risk.
The risks perceived for any individual project will be summarised by the Project Manager
at the time of Project Initiation, and will be reviewed and up-dated at each Project Review.
For many small, low risk projects it will be acceptable to provide only a narrative
statement of the perceived risks. However for higher profile, higher value, contentiousprojects a more formal risk assessment may be required by the Project Board.
Version 1 of the PRINCE Methodology referred to a Risk Analysis Checklist, originally
put together by CCTA at the request of the User Group. This Checklist has been modified,added to, and adjusted by SPOCE Project Management over a number of years and client
implementations, and is reproduced on the following pages.
An Excel Spreadsheet containing the Risk Analysis Checklist is available, upon request,
from SPOCE Project Management Limited (Telephone UK (+44) (0)1202-780740). It
provides a simple and structured way to identify the main risk areas for the project. It
should not be regarded as a definitive statement of the precise risks faced by the projectbut rather as an indicator of the areas that are more likely than not to cause problems! The
Risk Analysis Checklist expresses the project manager’s feelings about the likely risksfaced A completed example of the Risk Analysis Checklist is included at the end of this
Chapter.
The final score derived from the Risk Analysis will provide guidance for the proposals putforward by the project manager. Any score in excess of 15 should be extracted and
proposals made to the Project Board for reducing or managing the risk. A suggested
format for risk management proposals recorded in a Risk Log is as follows:
Figure 55: Risk Log
Description of the Risk Risk Score Comment on the Risk Proposals
The Project Manager hasonly limited experience ofmanaging a major projectof this type.
The Project Manager isalso responsible for 3other mainstream projectsbeing developed concurrently
21 The Project Manager has manyon-going responsibilities whichare expected to take up muchtime and effort (about 4 dayseach week). He also has noprevious experience of planningor managing a project of thissize and scope.
Proposal 1:The Project Manager toattend a Project Mgt.training course.
Cost: £2,000
Proposal 2:Buy in an experiencedProject Managementconsultant to advise theProject Manager andprovide support during thefirst two weeks of theproject.
Cost: £4,000
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Risk Ranges & Risk Factors
The risk factors of 2.00 and 2.60 within the Checklist relate to the assessed risk for the
project recorded in column (b) which is always rated on a scale of 0.10 to 4.00. The norm
for this scale is 2.00; any higher assessment would point to a higher than norm risk and
any lower assessment points to a lower than norm risk.
Figure 56: The Risk Management Analysis Ranges
Applying a risk factor of 2.00 to the assessed weighting in column (e) provides a
comparative figure to that obtained when multiplying the weighting by the assessed risk
(column (e) x column (b), placed in column (f)). Therefore, if the result of applying the
risk factor of 2.00 to the weighting column (e), is less than that calculated for column (f)
then the particular component (or the whole assessment) indicates a higher than norm risk
for the project as a whole.
Conversely, if the application of the 2.00 factor to the assessed weighting (column (e)results in a higher score than that calculated for the total score in column (f), then the
component (or overall assessment) indicates a lower than norm risk.
The selection of a factor of 2.60 as the threshold for a “very high risk” project is somewhatarbitrary, based on experience and actual situations. The factor may be reduced or
increased as experience with project risk within an organisation is gained.
The risk Analysis Checklist includes a simple calculation for identifying the risk factor for
the project. Regular assessment should indicate a downward movement in the calculated
risk factor as the project progresses towards its conclusion. Any consistent upward
movement should be investigated and reported to the Project Board Executive.
Lower Risk
Higher Risk
2.00 “Norm Risk”
0.10 4.00
Recommended“Norm” Range
1.00 3.00
2.00 “Norm Risk”
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Figure 57: Summary of the Impact of the Risk Scores & Weightings
In the example, if the assessed total score (column (f)) of 110 is less than 88 (having hadthe 2.00 “norm” Risk Factor applied), the overall assessment of risk is LOW.
If the assessed total score (column (f)) of 110 is greater than 114 (having had the threshold
2.60 Risk Factor applied), the overall assessment of risk is VERY HIGH.
Updating the Risk Analysis
Where a formal risk assessment is carried out, the project will be re-appraised,
minimally, at each review of the project (in “Managing Stage Boundaries (SB)” Process)
and a log of the overall score maintained.
The Risk Analysis should also be up-dated and logged at regular intervals (possiblyweekly) for the first 4 to 6 weeks of the project following approval of the PID, especially
where the initial risk factor is in excess of 2.20.
(b) (e) (f) (e) x 2.00 (e) x 2.60
2 x 4 = 8 8 10.4 (higher than 8 = LOW RISK)
2 x 5 = 10 10 13.0 (higher than 10 = LOW RISK)
2 x 6 = 12 12 15.6 (higher than 12 = LOW RISK)
2 x 7 = 14 14 18.2 (higher than 14 = LOW RISK)
3 x 4 = 12 8 10.4 (lower than 12 = HIGH RISK)
3 x 5 = 15 10 13.0 (lower than 15 = HIGH RISK)
3 x 6 = 18 12 15.6 (lower than 18 = HIGH RISK)
3 x 7 = 21 14 18.2 (lower than 21 - HIGH RISK)
TOTALS: 44 110 88 114
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Figure 58: Reducing Level Of Risk As The Project Progresses
Modifying The Risk Analysis Checklist
The best results will be achieved where the Risk Analysis Checklist is modified to reflectthe business, culture and types of project which predominate within the implementing
organisation. It will be noted that the Risk Analysis Checklist is particularly relevant to
the initiation of projects and contains comparatively little assessment of the on-goingcontrol and management of the project. It may well be that amendments to the standard
checklist would benefit from focusing on the control aspects.
RiskFactor Score
2.60 = 114
2.50 = 110
2.40 = 105
2.30 = 101
2.20 = 97
2.10 = 92.4
2.00 = 88
Very High Risk
High Risk
Moderate Risk
Low Risk
At Project Initiation
At End of Stage 1
At End of
Stage 2
Continuous Risk Assessment by the Project Manager
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STANDARD RISK ANALYSIS CHECKLIST
The Risk Factors which affect the probability that the project will be completed on time and within theagreed time and budget, and will deliver a quality-compliant End Product arise from six sources - Project
Management, The Project Staff, The Nature of the Project, The Maturity of the Development/SupplierOrganisation (Internal and External Suppliers), The Customer and the Contract, and Third PartySuppliers.
The project risks associated with each of these Elements are itemised and estimated below in the form of statements typifying Low and High Risk on either side of a scale of 0.10 to 4.00. The “norm” range used
is 1.00 to 3.00 and values outside this norm have only been used exceptionally and an explanation isprovided.
The assessed risk score under column (b) has been multiplied by the weighting factor inserted undercolumn (e) to provide a total risk score (rounded) for each question posed. Individual risks scoring inexcess of 15 have been extracted to a Risk Log recording the identified risks & proposed actions.
A Risk Factor for the project has been calculated and this will provide a Baseline for measurement of movements in the project risk. A Risk Factor of 2.00 is the neutral measurement, greater than 2.0indicates an increasing project risk; lower indicates a reducing project risk.
Element Ref
(a)
Low Risk
(b)
Score
(c)
High Risk
(d)
Suggested
Weight
(e)
Weight
(f)
Total
Project
Managem
ent
1 Full time, experienced
Project Manager
3.00 Part time, inexperienced
Project Manager
5 to 7 7 21
2 Customer Management
experienced and likely
to be active
3.00 Inexperienced Customer
Management - little
participation expected
4 to 6 5 15
Project
Staff
3 Customer staff likely to
be supportive and fully
involved in the project
2.30 Little Customer staff
involvement expected and
little contribution
3 to 6 3 7
4 High standard of
supervision & narrow
span of control in the
project team
1.50 Wide span of supervision
and control expected to be
poor
4 to 6 4 6
5 Good quality project
team, experienced withthe right skills
1.50 Inexperienced project team
lacking the key skills
6 to 8 6 9
6 Staff assigned full time
to the project 3.00 Staff have many other
responsibilities3 to 6 5 15
7 Low turnover of project
staff 2.00 High turnover of project
staff 4 to 7 7 14
8 Staff experienced at
Quality Reviews1.8 No experience of Quality
Reviews among staff 4 to 6 6 11
9 An organisational
commitment to quality
exists
2.20 Staff take little interest in
achieving a Quality
Culture
4 to 6 6 13
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Element Ref
(a)
Low Risk
(b)
Score
(c)
High Risk
(d)
Suggested
Weight
(e)
Weight
(f)
Total
Nature of
the
Project
10 Typical project with a
straightforward
lifecycle
2.20 A project lifecycle that has
a number of inter technical
relationships
4 to 6 5 11
11 The project has no, or
few novel features2.30 Pioneering new
approaches are being tried
out in the project
6 to 8 5 12
12 Equipment being
installed by the project
is well known, tried and
tested
2.10 Equipment is untried and
its use in uncertain4 to 6 5 10
13 Current main
operations will be only
minimally affected bythe project
3.00 Significant impact on
current main operations by
the project
3 to 5 5 15
14 The Requirements are,
or will be, well
established and well
documented by the
Customer
2.00 Requirements are
(expected to be) poorly
understood, documented
and presented by the
Customer
3 to 6 5 10
15 Little or no
modification needed to
existing technical
standards
2.60 Extensive modification
needed to existing
technical standards will be
needed
3 to 6 5 13
16 Little project work is
being undertaken
currently
2.80 Other project work is
being carried out in
parallel with this project
3 to 6 5 14
17 There is little
dependence on
development facilities
not under the control of
the project team
2.80 There is a dependence on
development facilities
which are outside the
control of the project team
3 to 7 6 17
18 Project duration is less
than 6 months or there
is only a small number
of workdays required
2.60 Project duration is longer
than 6 months or there is a
high number of workdays
2 to 5 4 10
19 There is little or no
constraint on the
completion date
3.00 There is a mandatory
completion date stated by
the Customer
4 to 7 6 18
20 Plans and estimates are(will be) based on
reliable data from
similar projects
3.00 Plans and estimates are(will be) based on
unreliable data -
essentially “green field”
4 to 7 6 18
21 Estimates have been
prepared using well
tried and documented
standards
2.60 Approximations have been
used based on unreliable
standards
4 to 7 6 16
22 This is the first or
second attempt at this
project - ie there is no
history of consistent
failure
2.90 There have been two or
more attempts to complete
this project - ie it has a
history of failure
4 to 8 7 20
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Element Ref
(a)
Low Risk
(b)
Score
(c)
High Risk
(d)
Suggested
Weight
(e)
Weight
(f)
Total
23 Few Customer
Departments will be
affected by the final
outcome
3.00 Many Customer
Departments will be
affected by the final
outcome
4 to 6 5 15
24 The project work will
affect few Customer
sites
2.80 Many Customer sites will
be impacted by the project
work
3 to 6 6 17
25 Sites which the project
team will visit are easily
accessible
2.90 Sites are remote and
inaccessible3 to 6 6 17
26 There will be only
minor impact on the
Customer’s day to daywork during the project
cycle
2.50 There will be significant
impact on the Customer’s
day to day work during the project
3 to 6 4 10
27 Well developed and
understood Project
Management Standards
will be available to the
project team
1.50 Few Project Management
Standards will be available
to the project team
4 to 7 5 7
Maturity
of the
Organisa
tion
28 There is a well
developed and
understood Quality
Environment - ie an
audited Quality
Management System
1.80 Quality Management is ill
defined and/or not visible4 to 7 5 9
29 Clear delegation of
authority is practised by
management
2.00 There is strict central
management control with
little empowerment or
delegation
3 to 6 5 10
30 Project Staff will wish
to make use of the
published Project
Management Standards
2.00 Project Staff are not
expected to utilise any
Project Management
Standards that exist
3 to 6 5 10
The
Customer
and the
Contract
31 The Customer
demonstrates a full
understanding of the
Requirement and its
impact
1.90 The Customer
demonstrates a poor
understanding of the
impact of the Requirement
4 to 7 6 11
32 There will be little or nomodification needed to
the Customer’s existing
facilities
2.20 Extensive modification tothe Customer’s existing
facilities is expected
3 to 6 5 11
33 An agreed contract is in
existence3.00 No formal contract is yet in
place4 to 7 6 18
34 There have been
previous dealings with
the Customer and
previous contracts have
been brought to a
satisfactory conclusion
1.80 There have been
difficulties when dealing
with this Customer on
earlier contracts
3 to 7 6 11
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Element Ref
(a)
Low Risk
(b)
Score
(c)
High Risk
(d)
Suggested
Weight
(e)
Weight
(f)
Total
Third
Party
Supplier
35 Suppliers are known,
approved and have a
satisfactory track
record
2.00 The Suppliers are new and
little is known about their
capabilities
4 to 8 6 12
36 Only one, well
established, approved
Supplier will be used to
provide the services
2.00 Multiple Suppliers (with
Sub-Contractor elements)
are anticipated
3 to 6 6 12
37 Suppliers have an
established Structured
Project Management
Method based on
PRINCE or similar
2.00 Supplier project
management arrangements
are ad-hoc with little
visible definition
3 to 6 6 12
38 A Supplier contract is in
existence1.50 Informal arrangements
only exist 4 to 7 6 9
39 The main Supplier has a
fully audited Quality
Management System to
ISO9001
1.50 The main Supplier has no
published Quality
Management System
4 to 7 6 9
40 The future level of
Supplier performance is
expected to be excellent
1.80 The future level of Supplier
performance is un-
assessable because too
little is known
3 to 6 6 11
TOTALS 214 494
SUMMARY
The project is assessed as LOW RISK if 494 (Column (f) Total) is LESS than 428 (Column (e) x 2.00)
The project is assessed as VERY HIGH RISK if 494 (Column (f) is MORE than 556 (Column (e) x 2.60)
The RISK FACTOR for the project is 2.31 (Column (f) total divided by Column (e) total)
The Project is assessed as HIGH RISK at this time.
nb: A Risk Factor of less than 2.00 indicates a LOW RISK project.
A Risk Factor between 2.00 to 2.20 indicates a MODERATE RISK project.
A Risk Factor between 2.20 to 2.60 indicates a HIGH RISK project.
A Risk Factor in excess of 2.60 indicates a VERY HIGH RISK project.
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UNDERSTANDING THE
QUALITY MANAGEMENTCOMPONENT
Chapter 8
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PRINCE 2 & BS/EN/ISO9001
PRINCE 2 has been designed to comply with the BS/EN/ISO9001 Quality Management
Standard and the method contains a section relating its content to each section of the ISO
Standard.
BS6079, the Project management Standard, is also reflected within PRINCE 2. ISO9001,
BS6079 and PRINCE 2 are all Process-driven; the foundation for quality and effective,
modern project management is therefore integral and inherent in PRINCE 2.
The Method assumes that a PRINCE 2 managed project will be carried out within a
published quality environment with defined standards and procedures. The PRINCE 2Manual contains a fairly detailed review of all parts of ISO9001 and states the extent to
which each of the parts of the full ISO standard is met by PRINCE 2.
Quality Management
Figure 59 : The Quality Structure
The prime aim of Quality Management within a project environment is to ensure that the
quality expected by the customer is delivered within the project and extends beyond
delivery of the outcome.
Quality Management System
Organisation Structure
Procedures
Processes
Quality Policy Statement
Quality Manual
Quality Assurance
Set up & Audit of Quality Management System
Quality Planning Quality Control
* Objectives & Requirements
* Overall Approach* Project Quality Plan* Stage Quality Activities
* Measurement Against
Quality Criteria* Measuring Against
Requirements
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Figure 53 summarises the main components of a quality structure. The PRINCE 2 Methodprovides specific guidelines for Quality Planning and Quality Control, with the process
“Planning For Quality (IP1)” taking place very early in the life of the project and
planning for quality within each Product or Deliverable being a major part of “Planning A
Stage (SB1)” as the project proceeds.
Specific Product quality planning occurs with the creation of a Product Description for
each project-level and Management Stage-level Product. The vehicle for this is the
Product Description which states the Quality Criteria, type of quality check and the peoplewho need to be involved.
Quality Control is effected in the most sensible way for the Product under scrutiny and the
organisation. PRINCE 2 includes the technique of Quality Review to provide the means of
assessing a Product against its stated Quality Criteria but leaves selection of the most
appropriate means to control quality to the Project Manager and Project Board.
Of course, this puts much emphasis on getting the Product Description right in the first
place, especially the Quality Criteria which will form the basis of acceptance, or not.
Customer Quality Expectations
These must be reflected in the PRINCE 2 project environment. Ideally they will be stated
within the Project Mandate, but will, in any event, be included in the Project Brief (“Starting Up A Project (SU)” Process) and expanded, if necessary, in the Project
Initiation Document (“Initiating A Project (IP)” Process).
The results of the quality planning activity must be integrated into the timescale and
resource plans at each level. Just as quality must be built into the Products, so must qualitycontrol be built into the plans. Within PRINCE 2, Planning for Quality within the project
takes place predominantly in the “Initiating A Project (IP1)” Process where the Quality
Management Systems of both the Customer and the Supplier are used to prepare a
foundation of quality for the project.
This does not, of course, mean that quality matters are taken into account only during this
Process; quality is a component which takes prominence throughout the life of the project
and fits closely with the Quality Review Technique discussed later in this publication.
Quality Aspects For Suppliers & Sub-Contractors
PRINCE 2 assumes a Customer:Supplier relationship where the total project outcome
may be undertaken, under contract, by an external supplier; in most projects, there will bethe need to buy in components or services from external sources. In these situations,
control over quality takes on further importance as the procedures and staff used to carry
out the quality control function is outside the direct control of the Project Manager. The
approach used within the Method is to provide the “supplier” (internal or external) with a
clear statement of what is wanted, the quality standard that must be adhered to and the
reporting requirements, in the form of an authorised Work Package.
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The authorised Work Package may take the form of a formal contract or, where thesupplier of the Product or service is internal, a memorandum. The typical content for an
Work Package is:
♦ Date
♦ Team or Individual or organisation authorised to carry out the work
♦ Description of the Work Package (Product Description)
♦ Extract from the Management Stage Plan
♦ Statement of joint agreement on effort, costs, start date and end date
♦ Any specific techniques, processes or procedures that are to be employed
♦ Any interfaces that must be addressed before, during and at the conclusion of the work
♦ Any constraints to be observed
♦ Reporting Arrangements - timing, content, responsibilities
♦ Quality Checking arrangements
A copy of the relevant Product Description(s) will always accompany the authorised Work
Package; this will contain the specific Quality Criteria and checking arrangements that
must be observed.
Work Packages are authorised by the Project Manager in the “Controlling A Stage (CS1)”
Process and passed to the supplier in the “Managing Product Delivery (MP1)” Process for
discussion where necessary and agreement before work commences. Completed Work
Packages (Products/Deliverables) are delivered back into the commissioning organisation
on completion of the work. Completed Work Packages should always be complete and
Quality Reviewed in accordance with the agreed Work Package. Where there are
difficulties with the quality of supplier’s products, it will be necessary to set up additional
quality review/control arrangements within the customer’s organisation. In such cases asmoothly working Configuration Management system is essential in order to track down
“offending” suppliers and take remedial action.
Quality Management - Summary
Action must be taken at project planning time (within the “Initiating A Project (IP1)”
Process) to ensure that the project can deliver its Products to the quality standards required
by the customer. Quality Criteria must be defined and agreed, and incorporated into a
Product Description for each major Product identified; a Project Quality Plan must bedefined, published and adopted; Quality Review procedures must be established and staff
trained; review activities must be properly resourced. Whatever action is proposed to
build quality into the project, the measures must be consistent with any published QualityManagement System (QMS) that is already in effect.
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UNDERSTANDING THE
CONFIGURATION MANAGEMENT
COMPONENT
Chapter
9
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Configuration Management - Introduction
A configuration is a logically related set of products which need to be managed as a
composite set. The “Configuration” to be managed may, therefore, be summarised as the
sum total of all the equipment, instructions, information used, and documentation which
together represent the total of the Products or Deliverables from the project.
Configuration Management Techniques
Configuration Management (CM) provides techniques and procedures to perform the
following functions:
♦ Identifying the individual items which are to be managed. These are referred to as
Configuration Items (CIs).
♦ Recording, monitoring and reporting on the current status of each Configuration Item
as its development progresses through its own specific development life-cycle.
♦ Filing all development documentation produced during the project life of the CIs.
♦ Distributing and recording holders of copies of all project documentation for all CIs.
♦ Managing Project Issues raised during the project.
♦ Managing change to all CIs, from receipt of a Project Issue Report, through
assessment of the impact of proposed changes, release of both the documentation and
the Product itself.
In PRINCE 2, Configuration Management is not optional. All the above functions arenecessary for successful projects. Without CM, managers would have little or no control
over the products their projects are producing. All the Products of a PRINCE project,
including documentation Products, Management and Quality Products should be con-
trolled using a suitable Configuration Management Method (CMM).
Depending upon the sophistication of the method used, some or all of the following should
be observed; it should be possible to use the following list of criteria during the selection
process for a CMM method and/or support tool:
♦ Configuration Items must be able to be created, amended and deleted;
♦ Configuration Items must be capable of being uniquely identified;
♦ the owner of each Configuration Item must be able to be uniquely identified;
♦ the owner of a Configuration Item must be able to be changed, without necessarily
changing the Configuration Item itself;
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♦ baselines must be capable of being established;
♦ configuration audits must be able to be performed;
♦ it should be possible to restore a Product (or related group of Products) to its state as
at a previous baseline, either temporarily or permanently;
♦ the placing of a Configuration Item in the system library must be documented;
♦ Impact Analysis must be able to be carried out to help assess the ramifications
involved in changing one or more configuration item;
♦ Configuration Items which are of interest to more than one project must be able to be
held centrally.
In order to aid impact analysis the CMM should also provide a structure defining the
relationships between the configuration items, so that no configuration item is changed
without triggering a check for possible ramifications in its neighbours.
CM Activities
The word “configuration” has in the past been associated mainly with equipment and the
term “Configuration Management” was originally applied to the control of hardware
development and production. Nowadays, however, it is internationally accepted thatConfiguration Management can be and needs to be applied to all elements of a project.
In PRINCE 2, the term Configuration Management refers essentially to the managementof project Specialist Products and the associated Documentation.
Configuration Management consists of four basic activities which together assist in the
management and control of development projects:
♦ Configuration Identification;
♦ Configuration Control;
♦ Status Accounting;
♦ Configuration Audits.
Configuration Management is a service function which assists in making both thespecialist and managerial activities more effective. Effectiveness of the CM processes
increases in proportion to the degree that the discipline is part of the normal day-to-day
activities of everyone involved in the project.
Configuration Management practices offer support to the specialist activities as well as
providing management with the information necessary for controlling Products as they areproduced by the project teams.
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Configuration Management oversees all the Products of a project by controlling access tothem and by maintaining records of their status. Operation of Configuration Management
will benefit from the appointment of a Configuration Manager or Configuration Librarian
as custodian of master copies of all project Products. This role can be combined with the
Project Support role where appointed. Where no specific appointment has been made, and
where a Project Support role has not been confirmed by the Project Board, the Project
Manager is responsible for Configuration Management of the project’s Products.
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UNDERSTANDING THE
CHANGE CONTROL COMPONENT
AND
CHANGE CONTROL TECHNIQUE
Chapter 10
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Change Control - Introduction
There are three types of changes which can be raised within a project under a PRINCE 2
controlled project; they are used to document desired change to, or some failure in, the
project's products; they are:
♦ Project Issue;
♦ Off-Specification;
♦ Request for Change.
This chapter is written on the assumption that exceptions will be controlled by a
Configuration Manager. If no such role has been allocated, control of exceptions will be
the responsibility of the Project Manager or Project Support, where appointed.
Project Issue
A project Issue is used by anyone to raise issues relating to the project. The subject of a
Project Issue is limited only in so far as it must in some way relate to the project, it may:
♦
address a specialist or technical problem, for example:
♦ Perceived errors in the project's products;
♦ Perceived failures of a current representation of the products to meet User
Requirements;
♦ An identified inconsistency between one representation of a Configuration Item
and any of its earlier representations;
♦ Ideas for improvements in design, functionality, customer interface, documentation,
standards etc;
♦ Identification of improved Business Benefits, proposals to reduce the risks;
♦ Or, alternatively, it may be to address a management issue, perhaps related to
budgets, plans, schedules or projected staff or skill shortages.
Project Issues are often raised during the testing or operation phases of the project, but can
be raised by anyone, at any point during the project. Changes to Products after completion
and hand-over of the project outcome (ie after project closure) will not be subject to the
project's change control procedures, but will be dealt with in accordance with the organi-sation's normal maintenance and enhancement procedure standards. Errors discovered at
a Quality Review are only noted on a Project Issue (Report) if the error relates to an item
other than that which is being reviewed, or an error which is unlikely to be corrected via
the normal Follow Up procedures.
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At the end of the project all Project Issues should be closed (ie signed off, indicating thatthe issue has been resolved, possibly by transfer to one of the other two change categories,
Request For Change or Off-Specification).
The Issues Log, which is used to record each Project Issue, allocate a unique reference
and provide a summary of the status of all Project Issues raised, should be provided to the
Senior User/Customer at each End Stage review for prioritisation of outstanding Project
Issues. This might involve the Senior User in “canvassing” the other Project Boardmembers to provide the resources necessary to action outstanding Project Issues.
Off Specifications
An Off-Specification is used to document any situation where any project outcome fails
to meet its specification in some respect. The error(s) it describes are less likely to be
corrected and, as a consequence, are more likely to remain in the delivered output of theproject. For this reason Off-Specifications are normally filed in the approved
Configuration Items File.
Off-Specifications are normally raised by the Project Manager, Team Manager, or Project
Board after analysis of received Project Issue Reports. The method does, however allow
the originator to identify an issue as an Off-Specification at the time it is formally raised.
If a number of Off-Specifications remain outstanding at the conclusion of the project, it is
in order to bring them forward as the basis for a separate enhancement project after themain project has been formally signed off and accepted into the business environment.
Request for Change
A Request For Change is a means of recording a proposed modification to the delivered
output of the project and is raised by the Project Manager, Team Manager or Project Board
as a result of either analysis of a Project Issue or the decision to rectify a deficiency
currently recorded in an Off-Specification. As with the Off-Specification, the originator of
an issue may identify it as a Request for Change - this will be most appropriate incircumstances where an error has been discovered.
Requests For Change are not used to record deficiencies in an otherwise working system.
Deficiencies are documented on the Project Issue Report and Off-Specification Report
forms. All RFCs will be actioned and cleared prior to project closure.
Change Control Forms and Documentation
No forms are provided within the PRINCE 2 Method for managing changes; howeversuitable forms are available from within the IBM PRINCE Environment and the SPOCE
Project Management Launch Pad.
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Change Control - Summary
More information on the PRINCE 2 change control procedures are contained in the
PRINCE 2 Manual. It is advisable, however to check with the Quality Manager, Project
Support Office or Project Assurance representative as existing, effective, change-control
procedures are often (rightly) maintained after the adoption of the PRINCE 2 standard.
At the conclusion of the project all Requests for Change must be cleared. This will
normally be through completion of all outstanding work on them but, exceptionally,Requests for Change still not started or incomplete may be transferred to an enhancement
project. This device can be used to effect customer and business sign-off of the main
project. Some Off-Specifications may be present throughout the whole life of the output
of the project. Outstanding Off-Specifications should be considered for an enhancement
project, possibly on a year-by-year basis.
Figure 60: Suggested Change Control Procedure Based On PRINCE 2 Principles
A diagram summarising a suitable change control procedure is as follows. Each stage of the process is logged into the Issues Log. On completion of the project all the Project
Issues must be resolved - either by rejection or conversion to a Request for Change, or an
Off-Specification. However, the originator may identify the particular category of Project
Issue at the time it is raised. The summary provides an enhancement of the PRINCE 2
suggested procedure.
* Good Ideas* Errors* Departures From Agreed Specification* Resource Changes* Specification Changes
Project Issue(Request for Changeor Off-Specification)
Originator Raises A
Sent to Project Support
Logged byProject Support
Reviewed by Project Manager
Project Issues Log
* Slippage/Budget Changes, exceeding Tolerance oraffecting other projects within the Programme
= Decision by Project Board (Exception Report)OR ....
*Changes Within Tolerance = Decision by Project Managerand action taken to implement the change.
Project Issues Log Up-dated
Notify OriginatorCopy returned
to confirm receipt
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Chapter 11
UNDERSTANDING THE
PRINCE 2 PROCESSES
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Introduction To Processes
PRINCE 2 focuses on the Processes that are needed to manage a successful outcome for
any project. The Processes identified in PRINCE 2 represent the minimum content for a
PRINCE-compliant project but this certainly is not intended to encourage slavish
following of any or all of them! The key to successful management of a project is toensure that each of the Processes identified within a PRINCE 2 controlled project are
addressed in one form or another; how each Process is actually interpreted as a project
management procedure is left to the implementing organisation, or where an
organisational-wide implementation has not been made, the Project Board and Project
Manager.
Of course, the concept of a process-driven approach is not new; Project Managers have
always used the processes of starting, managing and closing their projects, and senior
managers have always been involved in the processes of direction and decision making
whether they realised it or not! PRINCE 2 formalises these implied processes and setsthem into the context of a successful management.
The Processes
There are eight major Processes in all, identified within the PRINCE 2 methodology; the
eighth Process of “Planning (PL)” is used by all the other Processes. The eight major
Processes are:
♦ Starting Up A Project (SU)
♦ Initiating A Project (IP)
♦ Directing A Project (DP)
♦ Managing Stage Boundaries (SB)
♦ Controlling A Stage (CS)
♦ Managing Product Delivery (MP)
♦ Closing A Project CP)
♦ Planning (PL)
The Planning Process is common to all the others, making a major contribution to
“Initiating A Project” where the whole project is planned, “Managing Stage Boundaries”
where the next Management Stage of the project is planned, and “Managing Product
Delivery” where the work of teams and each individual Team Member is planned. In
addition to these Processes, “Planning” also makes a contribution to all others
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The PRINCE 2 Process Model
The overall structure of the PRINCE 2 Process Model can be summarised as follows:
Figure 61: Structure Model of the PRINCE 2 Process Model And Major Product Flows
* Request for Exception Plan
* SU1 - Appoint Exec & PM
* SU2 - Design A Team
* SU3 - Appoint A Team
* SU4 - Prepare Brief
* SU5 - Prepare Approach
* SU6 - Prepare Initiation Plan
* IP1 - Plan Quality
* IP2 - Plan Project
* IP3 - Refine Bus Case & Risks
* IP4 - Set Up Controls
* IP5 - Set Up Files
* IP6 - Assemble PID
* DP1 - Authorise Initiation
* DP2 - Authorise Project
* DP3 - Authorise Stage or Exception Plan
* DP4 - Give Ad-Hoc Direction
* DP5 - Project Close
* CS1 - Authorise Work Package
* CS2 - Assess Progress
* CS3 - Capture Project Issues
* CS4 - Examine Project Issues
* CS5 - Review Stage Status
* CS6 - Report Highlights
* CS7 - Take Corrective Action
* CS8 - Escalate Project Issues
* CS9 - Receive Completed Work Package
* MP1 - Accept Work Package
* MP2 - Execute Work Package
* MP3 - Deliver Work Package
* SB1 - Plan A Stage
* SB2 - Up-date Project Plan
* SB3 - Up-date Business Case
* SB4 - Up-date Risk Log
* SB5 - Report Stage End
* SB6 - Produce Exception Plan
* CP1 - Decommission A Project
* CP2 - ID Follow-on Actions
* CP3 - Project Evaluation Review
SU
IP
DP
CS
MP
CP
* Project Brief * Project Approach
* Organisation
* Plan for Initiation Stage
* Authorisation
To Proceed
*Draft Project Initiation Document (PID) * Trigger for
Next Stage Plan
* Next Stage
Plan
* Exception
Plan
* Trigger - Next Stage Plan
* Authorisation
To Proceed
* Direction* Highlight
Reports
* Customer
Acceptance
* End Project Report
* Project Evaluation
* Lessons Learned
* Follow-on Items
* Post-Project
Review Plan
* Work Package
+ Confirmation of Acceptance
* Checkpoint Reports
* Project Start Notification
* Project End Notification
* Premature
Close
PL
* Completed Work Package
* Project Issues
* Project Mandate
Archive Files
* Trigger - End Project
* Product Based Planning
* Exception
Reports
* Info from
External
Sources &
Feedback
*Requests For
Advice
SB
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Each of the major Processes has associated Processes which drive the management of the
project through the use of Components and Techniques, The Processes do not link with
any required way of achieving the required outcome; this enables the use of any
techniques which are appropriate to the business and reflects the flexibility which comes
as part of the PRINCE 2 package.
Major Processes and Processes
Each of the eight major Processes has a number of Processes which are used to get the job
done. A table relating each Process to its parent, major Process is useful to illustrate
where each Process resides within the overall Process Model and a summary of each majorProcess and its “children” is particularly helpful to anyone intending to take the APM
Group PRINCE 2 Examinations.
The main objectives of each of the eight major Processes are summarised as follows:
♦ Starting Up A Project – Gathering the basic information needed to start the project.
♦ Initiating A Project – Ensuring that the key decision makers understand what is
involved and obtaining agreement and commitment to a formal baseline for the
project.
♦ Directing A Project – Decision making on behalf of the project by senior managers
(in PRINCE terms – “The Project Board”).
♦ Controlling A Stage – Day-to-day project management and controlling the project by
the Project Manager, on behalf of the Project Board.
♦ Managing Product Delivery – Creating, modifying and obtaining the Products or
Deliverables.
♦ Managing Stage Boundaries – Taking stock of the current situation and getting ready
for the next part (Management Stage) of the project.
♦ Closing A Project – Ensuring the project has properly completed prior to formal
closure of the project by senior management.
♦ Planning – Planning steps that are common to all the Processes except “Controlling
A Stage” and “Directing A Project”. Plans are, however, used by all the Processes.
These Processes link to the Components and Techniques included in the PRINCE 2
Method to provide a comprehensive “best practice” Project Management Method.
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A summary chart of Processes and Sub-Processes is shown below:
Parent Process Sub-Process Sub-Process Name
Starting Up A Project SU1 Appointing A Project Board Executive & Project Manager
(SU) SU2 Designing A Project Management Team
SU3 Appointing A Project Management Team
SU4 Preparing A Project Brief
SU5 Defining Project Approach
SU6 Planning An Initiation Stage
Initiating A project IP1 Planning Quality
(IP) IP2 Planning A Project
IP3 Refining The Business Case and RisksIP4 Setting Up Project Controls
IP5 Setting Up Project Files
IP6 Assembling A Project Initiation Document
Directing A Project DP1 Authorising Initiation
(DP) DP2 Authorising A Project
DP3 Authorising A Stage Or Exception Plan
DP4 Giving Ad-Hoc Direction
DP5 Confirming Project Closure
Controlling A Stage CS1 Authorising A Work Package
(CS) CS2 Assessing Progress
CS3 Capturing Project Issues
CS4 Examining Project Issues
CS5 Reviewing Stage Status
CS6 Reporting Highlights
CS7 Taking Corrective Action
CS8 Escalating Project Issues
CS9 Receiving A Completed Work Package
Managing Product MP1 Accepting A Work Package
Delivery MP2 Executing A Work Package
(MP) MP3 Delivering A Work Package
Managing Stage SB1 Planning A Stage
Boundaries SB2 Updating A Project Plan
(SB) SB3 Updating A Project Business Case
SB4 Updating The Risk Log
SB5 Reporting Stage End
SB6 Producing An Exception Plan
Closing A Project CP1 Decommissioning A Project
(CP) CP2 Identifying Follow-on Actions
CP3 Project Evaluation Review
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Planning PL1 Designing A Plan
(PL) PL2 Identifying, Defining And Analysing Products
PL3 Identifying Activities And Dependencies
PL4 Estimating
PL5 Scheduling
PL6 Analysing Risks
PL7 Completing A Plan
Structure of the Individual Process Models
Each of the major Processes and Processes is described by reference to a commonformula:
The Fundamental Principles
♦ The reason(s) for the Process;
♦ The project management aims for the Process;
♦ Why the Process is fundamental to good project management practice and, therefore,
a requirement in any PRINCE 2-compliant project.
This section is a good first-step to understanding the rationale for the Process and what it
is trying to achieve.
Context
♦ The relationship with the other Processes and external activities. A Context Diagram
is provided for each Process showing the flows of information into and out of the Process.
This section is particularly useful to provide a visual statement of the inputs, processes andoutputs as a quick guide.
Process Description
♦ An explanation of the objectives of the Process and a statement of the steps contained
within it. The steps identified are in no particular order and are not intended to be
comprehensive.
This section contains the “meat” of the Process and provides a fair commentary on what
the Process sets out to achieve, together with the means of achieving it. There is little
attempt to describe how the Process is expected to work in practice, as the PRINCE 2
Method addresses mainly “What” and “Why” with a much restricted “How” confined
mainly to the “Techniques” Section.
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Responsibilities
♦ Identification of who should be held accountable for the successful conduct of the
Process, and responsible for its management.
Generic responsibilities (Project Board, Project Manager etc) only are provided and
implementing organisations need to look very carefully at assignment of key project
activities to specified personnel.
Information Needs
♦ The key information needed for the Process to function in such a way to meet its
objectives. The information needs identified might take the form of Products/Deliverables,Plans, Reports, Decisions etc.
This section is particularly useful in understanding the flows of information into and out of
the Process. Read in conjunction with the Context Diagram, a good understanding of the
complete Input/Process/Output cycle can be obtained.
Key Criteria
♦ Identification of significant issues which will impact upon and affect the successful
working of the Process.
These criteria are generally straightforward and pose little difficulty in their understanding
and implementation. They are important in that they represent the minimum standard for
any PRINCE 2-compliant project. In essence, any PRINCE 2-compliant project will
address all eight Processes in one form or another and each of the Processes will meet theKey Criteria stated here.
Hints and Tips
♦ Guidance on the application of the Process within a PRINCE environment; the method
recommends that this section be augmented by reference to specific situations encountered
during the use of PRINCE on projects within the implementing organisation.
The Hints and Tips contained throughout the PRINCE 2 Manual should not be viewed as
an integral part of the Method but rather as helpful guidelines.
Much of the PRINCE 2 Manual is given to describing the Processes using the above
headings. Understanding the structure of the Processes and their objectives is fundamental
to the successful use of the method. PRINCE may be likened to an organic structure
which must be allowed to mature and adapt to fit changing circumstances and new
knowledge within the host organisation; up-dating the Process Models and descriptions,
especially with regard to the Hints and Tips section is recommended to achieve this.
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Scalability
♦ All PRINCE controlled projects will address all eight major Processes in some form
and the key question to be posed is “How extensively should this Process be applied on
this project?”.
Each of the eight major Processes includes a section on “Scalability” which provides
suggested approaches to scaling the major Process to reflect the size and scope of the
particular project. A “Scalability” section is not included within each Process definitionbut the principles established in the major Process may be used to provide a suitable
solution.
Individual Process Summary Models
On the pages that follow are summaries of the inputs and outputs for each of the Processes
within the PRINCE 2 Method. The summaries also indicate the action performed on aProduct within the Process. The notation is as follows:
Product Created = [C]
Product Updated = [U]
Product Referenced and/or Reviewed = [R]
The Major Process Models shown at the beginning of each section are reproduced from
the PRINCE 2 Manual, with minor amendments and corrections made.
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Chapter 12
UNDERSTANDING THE
STARTING UP A PROJECT (SU)
PROCESS
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Starting Up A Project (SU) - Introduction
This is the first Process within a PRINCE 2 managed project. A Project Mandate in the
form of a memo, formal or informal request will normally trigger this Process, although
there is no prescribed format.
Figure 62: Starting Up A Project (SU) Process
The “Starting Up a Project (SU)” Process provides a solution to the “ragged beginning”concept that bedevils many projects. Just how a project gets under way is a question often
posed by managers who find that they are asked to carry out planning and preparatorywork by Customers but are warned against committing any resources without authority!
Quite a dilemma which PRINCE 2 seeks to bridge by the use of this Process.
The Process seeks to set up the project by creating clear objectives, set up a suitable
Project Management Team, identify a realistic approach to the work to be done, and
planning for the next stage of the work (normally the Initiation Stage). The project
formally exists at the conclusion of this Process when the Project Board will be asked to
give a “go/no-go” decision on whether there is the rationale, will and business need for the
proposed project. This decision will normally take place at a “Project Initiation Meeting
(PIM) which marks the formal start to the project.
Appointing a
PB Executive
and PM
SU1
Designing a
Project
ManagementTeam
SU2
Appointing a
Project
ManagementTeam
SU3
Preparing a
Project Brief
SU4
Defining
Project
Approach
SU5
Planning an
Initiation Stage
SU6
Authorising
Initiation
DP1
Planning
Quality
IP1
Assembling
a PID
IP6
Project
Brief
Project
Approach
Project
Management Team
structure and job
descriptionsProjectBrief
ProjectMandate
Draft Initiation
Stage Plan
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SU1 - Appointment of a Project Board Executive and a Project
Manager
To get any undertaking under way, there is a need for a decision-maker (the Project Board
Executive) and a planner (the Project Manager). As soon as the project is “floated” by thereceipt of a Project Mandate, these two appointments must be made by Corporate
Management. Between them they will arrange to set up the proposed project in an orderly
and structured way by creating suitable decision-support documentation comprising The
Project Brief, The Project Management Team, The Project Approach, and the Plan for the
Initiation Stage.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
Project Board ExecutiveAppointment [C]
Designing A Project Management Team (SU2)
SU1 –AppointingA ProjectBoardExecutive &ProjectManager
Project Mandate (Corporate Management)
Project Manager Appointment [C] Designing A Project Management Team (SU2)
Figure 63: SU1 Plus Inputs and Outputs
The appointment of the Project Board Executive and the Project Manager will allow a
number of Products to be started. Although the PRINCE 2 Manual indicates an order of
precedence - design and appointment of the Project Management Team as the next step -
there is no reason why the Project Manager should not immediately commence work on
the Project Approach and the Project Brief. These two documents will have a major
influence on the design of the Project Management Team and identification of the mostappropriate individuals to make the project management actually work.
In practice, the Executive needs to have a close involvement with the production of the
Project Approach and the Project Brief, as these are the two prime documents which will
provide the decision support information for the Project Board Members when they areasked to approve the Initiation Stage of the project.
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SU2 & SU3 - The Project Management Team
The Project Management Team is the group of people who are responsible for the
planning, management , and control of the project. It might not always be possible to
appoint the whole team at this early stage but as many of the key appointments as possible
should be made.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
SU2 –Designing AProjectManagementTeam
Project Mandate (Corporate Management)
Executive & Project Manager Appointment (SU1)
Project Management TeamStructure [C]
Appointing A Project Management Team (SU3)
Job Definitions [C] Assembling A PID (SU6)
Authorising Initiation (DP1)
SU3 –Appointing AProjectManagement
Team
Project Management Team Structure (SU2)
Project Management TeamStructure [C]
Assembling A PID (SU6)
Authorising Initiation (DP1)
Figure 64: SU2 & SU3 Plus Inputs and Outputs
Part of the work in this Process will include the definition of Roles and Responsibilities foreach member of the Project Management Team. A start point for these is included at
Appendix C of the PRINCE 2 Manual. It is important to ensure that each member of the
Project Management Team clearly understands the expectations that go with the job, and
the Role Descriptions ensure that this is clearly communicated. Role Descriptions will
apply to all members of the Project Management Team including the senior managers who
are on the Project Board for the project.
Responsibility for establishing the Project Management Team rests jointly with the
Executive and Project Manager, the Executive taking the lead in identifying and
appointing the Project Board Members. When the Project Management Team has been
established it will accompany the other outputs of SU to be endorsed by the newly
established Project Board during consideration of the Initiation Stage Plan in DP1. Thesource documentation will be used to assemble the Project Initiation Document in IP6
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SU4 - The Project Brief and Its Relationship To The Project
Mandate
The Project Brief will normally contain the formal Terms of Reference (objectives, scope,
constraints, interfaces etc) for the Project together with an Outline Business Case, basedon the information contained in the Project Mandate
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
Project Brief [C] Defining Project Approach (SU5
Planning An Initiation Stage (SU6)
Planning Quality (IP1)
Planning A Project (IP2)
Refining The Business Case & Risks)
Assembling A PID (IP6)
Authorising Initiation (DP1)
SU4 –Preparing AProjectBrief
Project Mandate (Corporate Management)
Risk Log [C] Planning An Initiation Stage (SU6)
Planning A Project IP2
Refining The Business Case & Risks (IP3)
Figure 65: SU4 Plus Inputs and Outputs
The Project Brief is based on the Project Mandate which provides the “trigger” for the
project. The Project Mandate may take any form from an informal request by a senior
manager to a formal request to provide a proposal from a customer to a potential supplier.
The Project Mandate may therefore be quite thin on information in which case the Project
Brief will take a fair amount of effort to complete. On the other hand, where the Project
Mandate is a comprehensive document emanating from, say, a feasibility or scoping study,
there should be little to add to turn it into a suitable Project Brief.
The Project Brief is used primarily in “ DP1 - Authorising Initiation”, by the Project
Board, to decide whether the proposed project merits the time and effort needed to produce
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a Project Initiation Document. It needs to address the fundamental reasons and constraintsthat support the proposal for the project - it is essentially a “first-cut” Project Initiation
Document.
The Customer’s Acceptance Criteria are contained within the Project Brief and although
the Product Outline for the Project Initiation Document , included in the PRINCE 2
Manual , does not specifically mention the Acceptance Criteria within the “Composition”
section, it makes sense to incorporate Acceptance Criteria within the PID as these can then
be used for comparative purposes at each Management Stage review ( End Stage
Assessment ), at Project Closure (“Decommissioning A Project (CP1)”) where Customer
Acceptance is obtained, and in “Confirming Project Closure (DP5)” where the project is
formally shut down.
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SU5 - The Project Approach:
A suitable Approach to the project must be considered, discussed with the Project Board
Executive Member and agreed before seeking authority to prepare a Project Initiation
Document (acceptance of which by the full Project Board will signal the formal start of the
project). Examples of the Approach to the project are:
♦ In-house development/construction;
♦ Out-sourcing to one or more Suppliers;
♦ Joint venture development as a partnership;
♦ Prime Contractor sourcing with multiple sub-contractors;
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
SU5 –DefiningProject
Approach
Project Brief (SU4)
Risk Log (SU4)
Project Approach [C] Planning An Initiation Stage (SU6)
Planning Quality (IP1)
Planning A Project (IP2)
Refining The Business Case & Risks (IP3)
Assembling A PID (IP6)
Authorising Initiation (DP1)
Planning (PL)
Figure 66: SU5 Plus Inputs and Outputs
After formal endorsement by the Project Board, the Project Approach is included in the
Project Brief (and possibly also the Project Initiation Document). It provides a major
contribution to planning the project - Initiating A Project (IP2).
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SU6 - The Initiation Stage Plan
A suitable plan for the Initiation Stage must be produced to enable the Project Board toauthorise the creation of a suitable Project Initiation Document (PID) to authorise the
commencement of the project. Production of the PID might well consume considerable
time, effort and cost and is a key document that will be used to Baseline the project. It
therefore needs to be properly planned, resourced and authorised at a level appropriate tothe investment being proposed.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
Draft Initiation Stage Plan [C]
Authorising Initiation (DP1)
SU6 –Planning AnInitiationStage
Project Brief (SU4)
Risk Log (SU4)
Project Approach (SU5)
Risk Log [U] Authorising Initiation (DP1)
Figure 67: SU6 Plus Inputs and Outputs
The Method presumes that the “Starting Up A Project (SU)” Process will be a separate
“front-end” to the project and approval of the Initiation Stage Plan will provide
authorisation for the first Management Stage of the project. However, for smaller, low risk,
projects, the first stage might well embrace the “Starting Up A Project (SU)” and
“Initiating A Project (IP)” Processes. Indeed other Processes might also come into play
during the first Stage of the project - these include “Controlling A Stage (CS)”,
“Managing Product Delivery (MP)”, “Managing Stage Boundaries (SB)”. Because of the
involvement in the authorisation processes, the Project Board will also be in play within
the “Directing A Project (DP)” Process.
The “Planning (PL)” Process, the “Planning A Stage (SB1)” Process, and the Product
Based Planning Technique, are all used in Planning An Initiation Stage. The planningaspects are straightforward as there is a need only to plan for a short time-scale and for a
very simple series of Products and related Activities.
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Starting Up A Project - Summary
This Process, with the next (“Initiating A Project (IP)”) is critical to the success of any
PRINCE 2 project as it sets the scene, expands the often flimsy Project Mandate, and lays
down the foundation for the organisational structure for the project. It will often be
combined with the IP Process and others, especially where a smaller project is being
addressed. If “Starting Up A Project (SU)” serves to put a brake on the understandable
enthusiasm to commence development work before the basics of the project have been
thought through, then it will have served its purpose.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
Project Board ExecutiveAppointment [C]
Designing A Project Management Team (SU2)
SU1 –Appointing AProjectBoardExecutive &ProjectManager
Project Mandate (Corporate Management)
Project Manager Appointment [C] Designing A Project Management Team (SU2)
SU2 –Designing AProjectManagementTeam
Project Mandate (Corporate Management)
Executive & Project Manager Appointment (SU1)
Project Management TeamStructure [C]
Appointing A Project Management Team (SU3)
Job Definitions [C] Assembling A PID (SU6)
Authorising Initiation (DP1)
SU3 –Appointing AProjectManagement
Team
Project Management Team Structure (SU2)
Project Management TeamStructure [C]
Assembling A PID (SU6)
Authorising Initiation (DP1)
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Project Brief [C] Defining Project Approach (SU5
Planning An Initiation Stage (SU6)
Planning Quality (IP1)
Planning A Project (IP2)
Refining The Business Case & Risks)
Assembling A PID (IP6)
Authorising Initiation (DP1)
SU4 –Preparing AProject Brief
Project Mandate (Corporate Management)
Risk Log [C] Planning An Initiation Stage (SU6)
Planning A Project IP2
Refining The Business Case & Risks (IP3)
SU5 –DefiningProject
Approach
Project Brief (SU4)
Risk Log (SU4)
Project Approach [C] Planning An Initiation Stage (SU6)
Planning Quality (IP1)
Planning A Project (IP2)
Refining The Business Case & Risks (IP3)
Assembling A PID (IP6)
Authorising Initiation (DP1)
Planning (PL)
Draft Initiation Stage Plan [C]
Authorising Initiation (DP1)
SU6 –Planning AnInitiationStage
Project Brief (SU4)
Risk Log (SU4)
Project Approach (SU5)
Risk Log [U] Authorising Initiation (DP1)
Figure 68: Summary of the “Starting Up A Project (SU) Process
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UNDERSTANDING THE INITIATING A PROJECT (IP)
PROCESS
Chapter 13
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Initiating A Project (IP) - Introduction
The “Initiating A Project (IP)” Process is aimed at ensuring that a firm Baseline exists
for the project and that everyone involved understands what the project is seeking to
achieve. In smaller projects, this Process might well be combined with the “Starting Up A
Project (SU)” process but this should be considered carefully. A controlled break between
“Starting Up A Project” and “Initiating A Project” is always required event though both
Processes may be combined within the same Management Stage.
Figure 69: Initiating A Project (IP) Process
The Project Initiation Document
The major output for this Process is a Project Initiation Document (PID), which will be
used throughout the project to ensure that the work carried out and the
Products/Deliverables being produced are supporting the key objectives and meet thecustomer’s needs. The PID will always need to address the following:
♦ to identify the benefits and risks and to evaluate proposals for managing identified
areas of risk, thus confirming that an acceptable Business Case exists for the project;
Planning
Quality
IP1
Planning a
Project
IP2
Refining the
Business
Case and
RisksIP3
Setting up
Project
ControlsIP4
Setting up
Project Files
IP5
Assembling a
PID
IP6
Authorising a
Project
DP2
Authorising
Initiation
DP1Authorised
Stage
Initiation
Plan
Project
Brief
Draft PID
Corporate QMS
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♦ to provide a foundation for the project from which the Project Initiation Document can
be assembled or prepared.
♦ to provide decision support information to enable the Project Board to confirm the
initial (and ongoing) viability for the project;
♦ to encourage the Project Board to understand and take ownership of the project;
♦ to provide sufficient information for the Project Board to approve the whole project in
principle and to commit resources, formally, for the next Management Stage;
♦ to provide a Baseline for all decision-making for the duration of the project;
♦ to initiate the project in an orderly manner, thus setting “Norms” for the remainder of
the project;
♦ to monitor the progress of the project initiation process against the approved plans.
An Initiation Stage is recommended to be included in any PRINCE 2 managed project;
given that the minimum number of Management Stages within any PRINCE 2 project will
be two, this principle ensures that there will always be at least one “planning” Stage and
one “action” Stage.
The PID is used as a Baseline for the project. It is assembled from Products generated in
the “Starting Up A Project (SU)” Process and the “Initiating A Project (IP)” Process and
when approved by the Project Board it signifies the official start of the project. The
approved PID will be input to every formal review of the Project (ESAs and MSAs) tocheck progress against the agreed baseline. It is also used at Project Closure
(“Decommissioning A Project (CP1)”) to measure the project outcome against the
Acceptance Criteria; successful matching will generate a Customer Acceptance of theoutcome.
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IP1 - Planning For Quality
Quality plays an important role in any PRINCE 2 project and as such it must be
considered before any major planning activity takes place. The Customer’s Quality
Expectations will have been identified in the “Starting Up A Project (SU)” at the time the
Project Brief was prepared.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
IP1 –PlanningQuality
Quality Standards (Programme and/or Corporate QMS)
Project Brief (SU4)
Project Approach (SU5)
Project Quality Plan [C]
Planning A Project (IP2)
Setting Up Project Controls (IP4)
Setting Up Project Files (IP5)
Assembling A PID (IP6)
Figure 70: IP1 Plus Inputs and Outputs
This needs to be built upon and cross-matched with the supplier organisation’s own quality
standards, usually resident in the Quality Management System (QMS).
A correlation between the International Standards Organisation BS/EN/ISO 9001 standard
for quality management and what is offered within the PRINCE 2 Method is provided in
Appendix B of the PRINCE 2 Manual. This Appendix should be used to match the
supplier organisation’s QMS to the requirements of PRINCE 2 and is especially useful
where a QMS is being specified and introduced.
Where an organisation-wide QMS is not already in force, management should considerintroducing a specific Project QMS - having no quality strategy is not an option!
Other aspects that need to be considered are the project staff’s ability to perform effective
Quality Reviews and to understand the significance of the Quality Criteria that will be
included in the Product Description for each Product/Deliverable.
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IP2 - Planning A Project
Although PRINCE 2 includes a separate Process for “Planning (PL)” and includes
planning as a Component and a specific Technique (Product-Based Planning), the
activities associated with planning for a specific project situation come into operation
within the Process concerned with the specific plan required. For example, planning the
project is an activity which must be undertaken right at the start of the project and lies
naturally within the “Initiating A Project (IP)” Process. Similarly, planning for each
Management Stage is a function of “Managing Stage Boundaries (SB)” as the Project
Manager prepares for the transition from the Current Stage to the Next Stage and preparesdocumentation for the Project Board to reach an informed decision.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
Project Plan [C] Refining The Business Case & Risks (IP3)
Setting Up Project Controls (IP4)
Setting Up Project Files (IP5)
Assembling A PID (IP6)
Planning A Stage (SB1)
Risk Log [U] Refining The Business Case & Risks (IP3)
IP2 –Planning AProject
Project Brief (SU4)
Risk Log (SU4)
Project Approach (SU5)
Project Quality Plan (IP1)
Trigger(s) For Next Stage Plan [C] Planning A Stage (SB1)
Figure 71: IP2 Plus Inputs and Outputs
The Project Manager and the rest of the Project Management Team will use the “Planning
(PL)” Process and the Product Based Planning Technique to prepare the required planswithin the appropriate Processes.
The Process requires a demonstration of an understanding of the project in the long term.
The Project Manager is not expected to be able to predict accurately to the full term of theproject, but must make an intelligent stab at what the future holds and plan for
contingencies.
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On their part, the Project Board must take a sensible and realistic view of the project,especially where the duration is extended, and view the project plan as a “soft estimate”.
The Management Stage Plan (produced in “Managing Stage Boundaries (SB1)”) provides
the firm, but limited, commitment of resources within the framework of the Project Plan.
This approach ensures that a realistic planning horizon is always in focus (the Stage Plan)
within the context of the overall Project Plan.
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IP3 - Refining The Business Case
The Project Brief will have identified an outline Business Case for the project. This
preliminary assessment will have been approved in principle by the Project Board when
considering the package put forward in support of investing resources into creating a
suitable Project Initiation Document to support the authorisation of the project.
The outline Business Case needs to be enhanced and refined before a final decision to start
the project can be made. The expected Business Benefits will need to be clearly specified
and the risks associated with the project identified.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
Risk Log [U] Setting Up Project Controls (IP4)
Assembling A PID (IP6)
Business Case [C] Assembling A PID (IP6)
IP3 –RefiningTheBusinessCase &Risks
Project Brief (SU4)
Project Approach (SU5)
Project Plan (IP2)
Risk Log (IP2) Project Plan [U] Assembling A PID (IP6)
Figure 72: IP3 Plus Inputs and Outputs
Where possible, both elements of Business Benefits and Risk will need to be measured in
concert. In the case of the Business Benefits, a Costs:Benefits Analysis/Investment
Appraisal should be considered.
Risks can be measured in many ways; PRINCE 2 does not recommend any particularapproach from the many software-based risk assessment tools that are available but thereneeds to be a balance between creating an effective Risk Assessment, suitable as the basis
for Risk Management, and the time and effort that a comprehensive assessment is bound to
consume. A simple Risk Analysis Checklist has been in use in PRINCE projects for many
years and an enhanced variant of this has been included at Chapter 7. Use of the Risk
Analysis Checklist is straightforward and an advantage is its visibility - it is well worth a
try and usually provides acceptably accurate results.
The Business Case, when approved by the Project Board will need to be reviewed and up-
dated when preparing for each Management Stage Review (see “Managing Stage
Boundaries (SB)”).
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IP4 - Setting Up Project Controls
Project controls are the key to the successful management of any project. It is onlypossible to control a project to the level of detail in which it has been planned so the
Project (and later, the Stage) plans are critical to the successful management of the project.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
Project Plan [U] Assembling A PID (IP6)
Project Controls [C] Assembling A PID (IP6)
Risk Log [U] Assembling A PID (IP6)
IP4 –Setting UpProjectControls
Project Quality Plan (IP1)
Project Plan (IP2)
Risk Log (IP3)
Communication Plan [C] Assembling A PID (IP6)
Figure 73: IP4 Plus Inputs and Outputs
This Process is concerned with the identification of the most appropriate level of control
for the project. For large, high-risk projects it may be expected that all the controls listed
below will be appropriate. For smaller, low-risk projects it will be necessary to consider
both the types of control that are appropriate and their frequency. In principle, however,
all the controls listed below will be appropriate to all projects whatever their size. Themanagement controls that will be identified and used in any PRINCE 2 project fall into
two main categories:
Project Board Controls
♦ Project Initiation Meeting & Project Initiation;
♦ Management Stages - End Stage Assessment;
♦ Exception Reporting & Management - Mid Stage Assessment;
♦ Tolerance – Time & Costs;
♦ Highlight Reporting (from the Project Manager to Project Board Members).
♦ Business Case Re-evaluation (Business Benefits)
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♦ Risk Analysis (+ Up-date of the Risk Log);
♦ Project Closure.
Project Manager/Team Controls:
♦ Checkpoints;
♦ Quality Reviews (Informal);
♦ Quality Reviews (Formal);
♦ Day-to-Day Communication/Ad-hoc Meetings.
Controls may also be appropriate at the Programme level but this will depend on thenumber, size and relationship of the projects that fall within the aegis of the PRINCE 2
arrangements within a particular implementing organisation.
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IP5 - Set Up Project Files
All projects will produce documentation which must be stored in an appropriate and
secure way. A fair amount of documentation will already have been produced in the
“Starting Up A Project (SU)” Process and organisations implementing PRINCE 2 project
management systems will wish to consider whether setting up the project filing structure
would best be carried out during the SU Process.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
Project Filing Structure [C] Assembling A PID (IP6)
Issue Log [C] Controlling A Stage (CS)
Quality Log [C] Controlling A Stage (CS)
IP5 –Setting UpProjectFiles
Project Quality Plan (IP1)
Project Plan (IP2)
Lessons Learned Report [C] Controlling A Stage (CS)
Figure 74: IP5 Inputs & Outputs
The documentation which will already be in place following “Starting Up A Project (SU)”
is:
♦ The Project Management Team Organisation Structure;
♦ Roles and Responsibilities for Project Management Team Members;
♦ The Project Brief;
♦ The Project Approach;
♦ The Risk Log;
♦ The Plan for the Initiation Stage;
♦ The Project Board Sign-off Approving the Initiation Stage Plan;
♦ Records of the Project Board Meeting (if appropriate).
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PRINCE 2 suggests a filing structure but does not require an electronic format, a physical
file or both. Perhaps the best approach is to have both electronic and physical file
structures sharing a common structure. This will enable Project Managers to maintaincopies of documentation in a format which is permanent, structured and flexible.
All files and their associated documentation, whatever their format, will need to bearchived at the conclusion of the project to allow for appropriate auditing.
Figure 75: PRINCE 2 Suggested Filing Structure
Project File
OrganisationPlansBusiness CaseRisk Log
Control DocumentsProducts Checklist
Files
Stage File(s)
OrganisationPlansControl DocumentsDaily Log
CorrespondenceProducts Checklist
Specialist File
Configuration ItemsConfiguration LogCI LocationsOff-Specifications
Quality File
Product DescriptionsQuality ChecksProject Issues
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IP6 - Assembling The Project Initiation Document
The key document to be output from the “Initiating A Project (IP)” Process is the Project
Initiation Document. (PID) This document provides a comprehensive view of the project
as it is viewed from the outset of the project.
The PRINCE 2 concept of “assembling” a Project Initiation Document is understandable
but not necessarily realistic as there are always many additional elements that, at the point
the PID is put together, are not available. To help with this, a Project Initiation Document
Template should be prepared for use in all projects within the implementing organisation.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
IP6 –AssemblingA PID
Project Approach (SU5)
Project Brief (SU4)
Project Management Team Structure + Job Definitions (SU3)
Project Quality Plan (IP1)
Project Plan (IP2)
Business Case (IP3)
Risk Log (IP3)
Project Controls
(IP4)
Communication Plan (IP4)
Project Filing Structure (IP5)
Draft Project Initiation Document(PID) [C]
Authorising A Project (DP2)
Figure 76: IP6 Plus Inputs and Outputs
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Completion of the PID will trigger the need to plan for the next Management Stage of theproject. The work for this activity will be carried out in the Process “Managing Stage
Boundaries (SB)” within the Sub-Process “Planning A Stage (SB1)”.
The PRINCE 2 Method does not recommend that the plan for the next stage be included in
the Project Initiation Document, thereby putting the emphasis on this document being
concerned with the project itself.
Approach to Assembling or Producing The PID
Assembly of the PID is a very simple task if all the component parts are available and it
can easily be performed by Project Support or the Project Manager. If this is not the case,
the use of the PID Template will make the task much simpler and enable the work to beshared. In practice, the best approach has been found to be to hold a “PID Workshop”attended by all members of the Project Management Team (including Project Board
members where they can spare the time). Typically one or two days is sufficient, provided
some foundation work has been undertaken. Where this approach is taken, the Project
Initiation Stage Plan should reflect the time and resources needed.
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Initiating A Project (IP) - Summary
Successful initiation of any project is a key contributor to its eventual outcome. The time,
effort and resources invested in this stage will be well worthwhile, especially if some
unforeseen problem occurs during the project. The Project Board and Project
Management Team will have firm ground on which to base decisions about proposed
changes in direction and investment of resources.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
IP1 –PlanningQuality
Quality Standards (Programme and/or Corporate QMS)
Project Brief (SU4)
Project Approach (SU5)
Project Quality Plan [C]
Planning A Project (IP2)
Setting Up Project Controls (IP4)
Setting Up Project Files (IP5)
Assembling A PID (IP6)
Project Plan [C] Refining The Business
Case & Risks (IP3)
Setting Up Project Controls (IP4)
Setting Up Project Files (IP5)
Assembling A PID (IP6)
Planning A Stage (SB1)
Risk Log [U] Refining The Business
Case & Risks (IP3)
IP2 –
Planning AProject
Project Brief (SU4)
Risk Log (SU4)
Project Approach (SU5)
Project Quality Plan (IP1)
Trigger(s) For Next Stage Plan [C] Planning A Stage (SB1)
Risk Log [U] Setting Up Project Controls (IP4)
Assembling A PID (IP6)
Business Case [C] Assembling A PID (IP6)
IP3 –RefiningTheBusinessCase &Risks
Project Brief (SU4)
Project Approach (SU5)
Project Plan (IP2)
Risk Log (IP2) Project Plan [U] Assembling A PID (IP6)
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Project Plan [U] Assembling A PID (IP6)
Project Controls [C] Assembling A PID (IP6)
Risk Log [U] Assembling A PID (IP6)
IP4 –
Setting UpProjectControls
Project Quality Plan
(IP1)
Project Plan (IP2)
Risk Log (IP3)
Communication Plan [C] Assembling A PID (IP6)
Project Filing Structure [C] Assembling A PID (IP6)
Issue Log [C] Controlling A Stage (CS)
Quality Log [C] Controlling A Stage (CS)
IP5 –Setting UpProjectFiles
Project Quality Plan (IP1)
Project Plan (IP2)
Lessons Learned Report [C] Controlling A Stage (CS)
IP6 –AssemblingA PID
Project Approach (SU5)
Project Brief (SU4)
Project Management Team Structure + Job Definitions (SU3)
Project Quality Plan (IP1)
Project Plan (IP2)
Business Case (IP3)
Risk Log (IP3)
Project Controls (IP4)
Communication Plan (IP4)
Project Filing Structure (IP5)
Draft Project Initiation Document(PID) [C]
Authorising A Project (DP2)
Figure 77: Summary Of The Initiating A Project (IP) Process
Another major, but intangible output from this Process is the understanding that
individuals within the Project management Team (including the Project Board Members)
will gain about the nature, scope and possible pitfalls that the project may have to face.
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The inclusion of an Initiation Stage in any PRINCE 2 controlled project is not optional -the method is very clear that an Initiation Stage be included whatever the type, scope or
size of the project. The PID itself will be used to provide a baseline for the project
throughout its life and beyond, extending to the completion of a Post-Project Review
sometime after the project is closed down (typically some 6-9 months after the Product
from the project has been handed over to the customer).
When the PID has been completed and assembled, it is ready to be reviewed by the Project
Board within the “Directing A Project (DP2)“ Process. The vehicle for this is an EndStage Assessment (at the completion of the mandatory Initiation Stage). Acceptance of
the PID and approval by the Project Board signals the formal start of the project.
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UNDERSTANDING THE DIRECTING A PROJECT (DP)
PROCESS
Chapter 14
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Directing A Project (DP) - Introduction
Directing A Project (DP) operates throughout all stages of the project, from the end of
Project Start-up through to Project Closure and is the primary concern of the Project
Board. They achieve this by managing by exception, monitoring through reports provided
primarily by the Project Manager, and controlling through a series of key decision points.
Figure 78: Directing A Project (DP) Process
The key Processes break into the following areas:
♦ Control of the Initiation of the project ensuring it has the best possible start;
♦ Authorisation of the Project, committing the organisation to its successful outcome;
♦ Authorising Continuation of the project where a significant departure from the
approved plans has occurred;
♦ Control of the Stage Boundaries, committing new and additional resources as the
project progresses towards its ultimate aim;
Authorising
Initiation
DP1
Starting up
a Project
SU
Authorising
a Project
DP2
Authorising
a Stage or
Exception
PlanDP3
Giving
Ad hoc
Direction
DP4
Confirming
Project
Closure
DP5
Initiating a
Project
IP
Controlling
a Stage
CS
Managing
Stage
Boundaries
SB
Closing a
Project
CP
Project Brief
Draft Initiation Stage Plan
Job Definitions
Project Management Teamstructure
Project Approach
Authorisation
to proceed
Draft
PID
Authorisation
to proceed
Authorisation
to proceed
Highlight Report
Exception Reports
Requests for adviceEnd Project Report
Project Closure
Recommendation
Draft Post Implementation
Review Plan
Follow-on Action
Recommendations
Lessons Learned Report
Operational and
maintenance confirmation
PID
Follow-on Action Recommendations
Lessons Learned Report
Post Implementation Review Plan
Project Closure Notification
Information from external sourcesProject Start-up
Notification
PID
Exception Plan
End Stage Report
Next Stage Plan
Project Team changesUpdated Project Plan
Updated Business Case
Updated Risk Log
Mobilisation of support
services
Approved PIDException Report
Request For
Exception Plan
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♦ Ad-hoc Decision-making and Direction, monitoring progress and providing advice and
guidance as necessary;
♦ When the project has achieved its outcome, or is no longer considered to be a viable
business proposition, arranging for Project Closure, bringing the whole undertaking to
a controlled finish.
This Process does not cover the day-to-day activities of managing the project - these rest
with the Project Manager. The Process is positioned at the level of management residing
above the Project Manager.
Information will be presented to the Project Board in a number of ways, from formal
report documents such as the Project Initiation Document (PID) through Highlight
Reports, usually prepared on a monthly basis, to requests for ad-hoc direction by the
Project Manager where a gentle “touch on the tiller” is required and senior managementsupport is recommended. The Process is one of the busiest within the Process Model interms of potential and actual inputs and outputs and the physical interpretation of how to
direct a project may be expected to add further reports and directives.
A key requirement within this Process is having senior managers on the Project Board who
have the organisational authority to commit the resources that will be needed to see theproject through to a successful conclusion. The ability to make decisions on commitment
of additional resources in the event of problems and the vision to see the wider picture are
also vital ingredients resident within this Process.
Management By Exception
A guiding principle at this level should always be the ability for senior managers to adopt
a “hands-off” approach and to become involved with the project only at those points in
time when their input is needed and to adopt a Management by Exception approach.
Essentially this approach requires Project Board members to view the project strategically
and to become involved only at planned review dates and at unscheduled meeting called
only because the project has significantly departed from the approved plan. This is
measured by a control known as “Tolerance” - essentially the scope a Project Manager has
to depart from an approved Stage Plan without needing to report the departure to theProject Board.
A forecast that the current Stage will not be able to complete within Tolerance (standard
Tolerance of Time and Cost) will result in an Exception Report being prepared by the
Project Manager for consideration by the Project Board members. An Exception Plan will
often follow, this being produced by the Project Manager, which will be considered by the
Project Board at a specially convened Mid-Stage Assessment.
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DP1 – Authorising Initiation
The work carried out in the “Starting Up A Project (SU)” Process is designed to put
together enough information for the Project Board to make a “go/no-go” decision on
whether to invest the necessary resources into the creation of a Project Initiation
Document (PID).
The Project Board will be presented with a set of decision support documentation and
asked to approve the project in principle.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
Authorisation To Proceed [C]
Stage Plan [U]
Project Brief [U]
Risk Log [R]
Project Management TeamStructure [R]
Project Approach [U]
Initiating A Project (IP)
DP1 –AuthorisingInitiation
Project Management Team Structure (SU3)
Job Definitions (SU3)
Project Brief (SU)
Risk Log (SU)
Project Approach (SU5)
Draft Initiation Stage Plan (SU6)
Project Start-up Notification [C] Corporate or
Programme Management
Figure 79: DP1 Plus Inputs and Outputs
The project formally starts when this approval is gained (not when the Project Initiation
Document has been prepared and approved).
For low risk, smaller, projects a formal meeting of the Project Board may not be necessary
and approval may be given directly by the Executive member (having responsibility for
the overall business objectives).
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DP2 – Authorising A Project
Following the creation of the Draft Project Initiation Document (PID) in “Initiating A
Project (IP)” the project can be approved formally by the Project Board and the PID
“frozen”. The point of doing this is to establish a baseline against which to judge the
project as it proceeds towards its conclusion and to measure against the final out-turn
although certain parts of the PID are reviewed and modified at the end of each
Management Stage; these are the Project Plan, the Business Case and the Risk Log.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED ORUSED
OUTPUT TO
Authorisation To Proceed [C] Authorising Work Package (CS1)
DP2 –AuthorisingA Project
Draft Project Initiation Document (IP6)
Next Stage Plan (SB1)
Approved Project InitiationDocument [U]
Corporate or Programme Management
Figure 80: DP2 Plus Inputs and Outputs
The above diagram shows how both the Draft Project Initiation Document and the plans
for the next Management Stage are input to this Process as decision support
documentation. Note that the plans for the next Management Stage are not included as
part of the PID but are prepared within a separate Process (“Managing Stage Boundaries
(SB1)”) and accompany the PID as a separate document (the End Stage Report ).
Approval of the draft PID and the next Management Stage plans commits the resources
and triggers commencement of work, providing authorisation for the Project Manager to
begin using the resources in the plans.
A copy of the approved PID is lodged in the Project File and Corporate Management isnotified of the existence of the project by dispatch of a notification, or copy of the PID
whatever is most appropriate.
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DP3 – Authorising A Stage Or Exception Plan
As it proceeds, the project will be reviewed by the Project Board at the conclusion of each
Management Stage. Essentially the Project Board will be looking for evidence that the
Management Stage has been completed to budget, on time and meeting the requirements
of the Product Descriptions. This will be formally undertaken at an End Stage Assessment
(ESA) and an approval will be sought for the project to continue and the next Management
Stage plans approved and resources committed.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED ORUSED
OUTPUT TO
Authorisation To Proceed [C] Controlling A Stage (CS)
Tolerances [C] Controlling A Stage (CS)
Business Case [U] Controlling A Stage (CS)
Project Plan [U] Controlling A Stage (CS)
DP3 –AuthorisingA Stage orExceptionPlan
Next Stage Plan (SB5)
Project Management Team Changes (SB5)
Product Checklist (SB5)
Business Case (SB5)
Risk Log (SB5)
End-Stage Report (SB5)
Request for Authorisation To Proceed (SB5)
Exception Plan
(SB6)
Project Initiation Document (IP6)
Project Tolerances (Corporate or Programme Management)
Progress Information [C] Corporate or
Programme Management and other interested parties.
Figure 81: DP3 Plus Inputs and Outputs
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A number of products and documentation are needed for the Project Board to properlycarry out this responsibility and these are all created and/or updated within the “Managing
Stage Boundaries (SB)” Process. Logs and on-going reports will be retrieved from the
appropriate file and input to the Project Board either before or at the Project Board
meeting. Care should be taken not to swamp the Project Board with too much paper or
unimportant information.
Approval of Exception Plans
This Process is used also for approving Exception Plans. An exception occurs when a
significant deviation from an approved plan occurs; a “significant deviation” is measured
by whether Tolerance is exceeded and may occur as a result of a technical or quality
problem within the project or a suggested change to one or more Products.
The procedure is for an Exception Report to be raised by the Project Manager, alerting the
Project Board members of the perceived problem. The Exception Report provides a
statement of the problem, an analysis of its impact, the options available for recovery and
a firm recommendation for recovery.
The Exception Report is considered by the Project Board and a decision taken on whether
the project may continue without any further action, or whether the remainder of the
Management Stage needs to be re-planned to reflect the problem or required change.
If the Project Board decide that the situation is serious enough to warrant it, an Exception
Plan is produced by the Project Manager. The Exception Plan will be considered by the
Project Board at a Mid Stage Assessment and after its approval, substitutes the plan it
replaces.
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Figure 82: Exception Reporting and Planning
Figure 76 summarises the procedure for notifying the Project Board of a significant
departure from plan (via the Exception Report) and subsequently the creation of the
Exception Plan. Also shown on the above diagram is the Project Board’s option toterminate the project prematurely if they do not wish to continue with the undertaking
following a major change in the approved plans (although this decision might have been
taken earlier, when the exception was first reported and considered in the Process “Giving
Ad-Hoc Direction (DP4)”. Where the cancellation option is preferred, the prematureclosedown of the project will be handled within the “Closing A Project (CP)” Process.
CS8Escalating
Project IssuesDP4
GivingAd-Hoc Advice
1: Exception Report
DP3Authorising A Stage or
Exception Plan
SB6Producing An
Exception Plan
2A: Direction
3: Trigger - (Copy ofException Report)
4: Exception Plan
CS1 -Authorising AWork Package
5: AuthorisationTo Proceed
Premature Termination of Project
2B: Request forException Plan
Mid-Stage Assessment
Problem … Forecast to Exceed Tolerance
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DP4 – Giving Ad-Hoc Direction
This Process is the most powerful of all the Processes in that it includes provision to
terminate the project prematurely if the Project Board are unhappy about the progress
being made or if a significant departure from the approved plans occurs.
The Process is also concerned with giving advice to the Project Manager and other staff
employed on the project as and when it is needed and requested.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED ORUSED
OUTPUT TO
Exception Plan Request [C] Producing An Exception Plan (SB6)
Premature Close [C] De-Commissioning AProject (CP1)
Response to External Sources(Corporate & Programme
Management)
Corporate & Programme Management
DP4 –Giving Ad-HocDirection
Information from &to External Sources (Corporate or Programme Management)
Highlight Reports (CS6)
Requests for
Advice (CS7)
Exception Report (CS8)
Communication Plan (IP4)
Response to Requests for Advice Project Manager
Figure 83: DP4 Plus Inputs and Outputs
Highlight Reports, prepared by the Project Manager (usually monthly, but at the frequency
required by the Project Board) will provide much of the everyday input for the Project
Board’s advice, comments and direction. Information coming into the project fromexternal sources will also be filtered by the Project Board and acted upon, usually by
providing direction to the Project Manager.
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DP5 – Confirming Project Closure
The responsibilities of this sub-process will usually (but not necessarily) be exercised
through the holding of a Project Closure Meeting where the project will be shut down in
an orderly and structured way.
The information needed for the Project Board to shut down the project will be produced in
“Closing A Project (CP)” Process and will include Customer Sign-off and identification
of any follow up actions.
The approval of a plan for performing a Post-Project Review (usually some 9-12 months
after the closedown of the project will also be considered during this final Process.
A fuller summary of the inputs and outputs to DP5 is shown in the following diagram:
Project Closure Notification [U](Approved)
Corporate or Programme Management
Follow0on ActionRecommendations [U] (Approved)
Corporate or Programme Management
Post-Project Review Plan [U]
(Approved)
Corporate or
Programme Management
DP5 –ConfirmingProjectClosure
Operational &Maintenance Acceptance (CP1)
Customer Acceptance (CP1)
Project Closure Recommendation
(CP1)
Post-Project Review Plan (CP2)
Follow-on Action Recommendations (CP2)
Lessons Learned Report (CP3)
End Project Report (CP3)
Baselined Project Initiation Document (DP2)
Lessons Learned Report [U](Approved)
Corporate or Programme Management
Figure 84: DP5 Plus Inputs and Outputs
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Specifically, the Project Board will wish to satisfy themselves that the project has a clearly
defined end and that an orderly hand-over to operational use has been effected. The
Project Board will look to the Senior User for confirmation that an acceptable End-Productis in existence and that it can be supported in an operational environment.
A close liaison with the Project Board members will need to be maintained throughout theProject Manager’s preparation for this very important Process, ensuring that there are no
surprises awaiting the members at the closure meeting.
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Summary of the DP Process
It is within the “ Directing A Project (DP)” Process that every authorisation takes place.
The Process is extremely important to the successful outcome of the project.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
Authorisation To Proceed [C]
Stage Plan [U]
Project Brief [U]
Risk Log [R]
Project Management TeamStructure [R]
Project Approach [U]
Initiating A Project (IP)
DP1 –
AuthorisingInitiation
Project
Management Team Structure (SU3)
Job Definitions (SU3)
Project Brief (SU)
Risk Log (SU)
Project Approach (SU5)
Draft Initiation Stage Plan (SU6)
Project Start-up Notification [C] Corporate or Programme Management
Authorisation To Proceed [C] Authorising Work Package (CS1)
DP2 –AuthorisingA Project
Draft Project Initiation Document (IP6)
Next Stage Plan (SB1)
Approved Project InitiationDocument [U]
Corporate or Programme Management
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Authorisation To Proceed [C] Controlling A Stage (CS)
Tolerances [C] Controlling A Stage (CS)
Business Case [U] Controlling A Stage (CS)
Project Plan [U] Controlling A Stage (CS)
DP3 –
AuthorisingA Stage orExceptionPlan
Next Stage Plan
(SB5)
Project Management Team Changes (SB5)
Product Checklist (SB5)
Business Case (SB5)
Risk Log (SB5)
End-Stage Report (SB5)
Request for Authorisation To Proceed (SB5)
Exception Plan (SB6)
Project Initiation Document (IP6)
Project Tolerances (Corporate or Programme Management)
Progress Information [C] Corporate or Programme Management and other interested parties.
Exception Plan Request [C] Producing An Exception Plan (SB6)
Premature Close [C] De-Commissioning AProject (CP1)
Response to External Sources
(Corporate & ProgrammeManagement)
Corporate & Programme
Management
DP4 –Giving Ad-HocDirection
Information from &to External Sources (Corporate or Programme Management)
Highlight Reports (CS6)
Requests for Advice (CS7)
Exception Report (CS8)
Communication Plan (IP4)
Response to Requests for Advice Project Manager
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Project Closure Notification [U]
(Approved)
Corporate or
Programme Management
Follow0on ActionRecommendations [U] (Approved)
Corporate or Programme Management
Post-Project Review Plan [U](Approved)
Corporate or Programme Management
DP5 –
ConfirmingProjectClosure
Operational &
Maintenance Acceptance (CP1)
Customer Acceptance (CP1)
Project Closure Recommendation (CP1)
Post-Project Review Plan (CP2)
Follow-on Action
Recommendations (CP2)
Lessons Learned Report (CP3)
End Project Report (CP3)
Baselined Project Initiation Document (DP2)
Lessons Learned Report [U](Approved)
Corporate or Programme Management
Figure 85: Summary of the Directing A Project (DP) Process
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UNDERSTANDING THE
CONTROLLING A STAGE
PROCESS
Chapter 15
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Controlling A Stage (CS) - Introduction
Following the Project Board’s decision to approve a Stage, the Project Management Team
must be fully focused on delivery of the Products, to their stated Quality Criteria, within
the approved time-scales and budget, within the stated Tolerances.
Figure 86: Controlling A Stage (CS) Process
This Process forms the main part of the Project Manager’s effort on the management of the
project, and provides the direction for the day-to-day management of the Stage and the
overall project. All through the Stage there will be an on-going cycle of:
♦ authorising Packages of Work that must be completed during the Management Stage
and receiving Completed Work Packages (or Products) back into the host
organisation;
♦ gathering Progress Information about the work carried out and the resources and
effort expended;
Closing aProject
CP
TakingCorrective
Action
EscalatingProject Issues
CS8
AuthorisingWork Package
AssessingProgress
Receiving
CompletedWork
PackageCS1CS7 CS2 CS9
ReviewingStage Status
CS5
ReportingHighlights
CS6
ExaminingProject Issues
CS4
CapturingProject Issues
CS3
Directing aProject
DP
Managing
StageBoundaries
SB
ManagingProductDelivery
MP
Project EndNotification
Work Package
Checkpoint ReportQuality Log
CompletedWork Package
Exception ReportIssue Log
HighlightReport
Stage Plan
Risk Log
Business Case
New ProjectIssues
Authorisation toproceedStage/ExceptionPlan
Copy of Exception Report
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♦ watching for Changes to the approved plan; managing any changes raised formally
against the project (Project Issues) and making decisions on the introduction of
beneficial changes provided these do not result in the Stage Plans exceeding theTolerance;
♦ reviewing situations for Stage and Project Impact;
♦ reporting to the Project Board and to other members of the Project Management
Team;
♦ approving and initiating any Corrective Action.
It may be expected that for much of the time events during a Management Stage willfollow a regular and predictable pattern. However, personal qualities and project
management abilities need to combine to address situations which are not going accordingto plan and it is then that the Project Manager must use knowledge, political and people
skills to bring things back on course.
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CS1 – Authorising A Work Package
Work is released to Team Managers or directly to staff working on the project via the
issue of authorised Work Packages. The format for these might be a formal contract,
where the Products are being produced by a Supplier external to the host organisation, or
much less formal (for example by internal memorandum or discussion) where the provider
is employed within the host organisation.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
Plan Adjustments [C] Assessing Progress (CS2)
CS1 –AuthorisingWorkPackage
Stage or Exception Plan (DP3)
Authorisation To Proceed (DP3)
Proposed Work Package (CS5)
Work Trigger (CS7
Product Descriptions (PL2)
Work Package [C] Accepting A WorkPackage (MP1)
Figure 87: CS1 Plus Inputs and Outputs
The Project Manager is responsible for the preparation, release and agreement of Work
Packages; authority for this responsibility stems from the Project Board’s approval of the
relevant Management Stage Plan and for this reason Management Stage Plans (produced
in the “Managing Stage Boundaries (SB)” Process) must be sufficiently detailed for theProject Board to understand to what they are committing.
Changes necessary as the Management Stage progresses must be reflected in the work being carried out on the relevant Work Packages – this demands a close association
between the Project Manager and the Team Manager(s) responsible for producing the
Product(s). Where a formal contract is in existence, care must be taken not to upset the
contract arrangements by demands for trivial changes.
This Process provides the Project Manager with the main vehicle for release of work and
is a major control on a day to day basis.
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CS2 – Assessing Progress
The Project Manager must keep track on how well the Management Stage, and the
Project, is performing against the plan approved by the Project Board at the last End Stage
Assessment. This Process provides the mechanics for capturing “Actuals” and passing
the information forward to “ Reviewing Stage Status (CS5)” where the Project Manager can
take stock of progress so far.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
CS2 –AssessingProgress
Checkpoint Reports (MP2)
Quality Log (MP2)
Plan Adjustments (CS1)
Stage Plan (CS5)
Work Package
Status (CS9)
Up-dated Stage Plan [U] Examining Project Issues (CS4)
Reviewing Stage Status (CS5)
Figure 88: CS2 Plus Inputs and Outputs
The information needed to update the approved Management Stage Plan comes from three
major sources:
♦ Checkpoint Reports (created within the “Managing Product Delivery (MP2)”
Process);
♦ Timesheets (where these are in use within the host organisation – otherwise an
assessment by the Project Manager of effort expended and financial liability incurred);
♦ Project Issues – especially where errors or departures from the agreed requirement
have been identified.
This Process is best carried out by Project Support, where appointed, with a presentation
of the plans, updated to show “actuals”, to the Project Manager for overall assessment on
at least a weekly basis.
Use of a suitable software planning tool (such as MS Project, Project ManagerWorkbench, Primavera etc) will simplify this Process especially if standard “actuals”
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reporting forms generated within the package are fully utilised.
The output from CS2 goes towards the Project Manager’s review of how well the
Management Stage is progressing when measured against the Management Stage plan
approved by the Project Board at the previous End Stage Assessment.
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CS3 - Capturing Project Issues
As the project progresses there will be a need to capture and decide upon changes that
occur. All changes within a PRINCE 2 project are treated as types of Project Issue. These
include errors found in signed-off Products, departures from the agreed Specification,
ideas and suggestions people have for improving the project’s outputs, resource changesthat need to be reflected in the project and stage plans.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,
UPDATED, REFERENCED ORUSED
OUTPUT TO
CS3 –CapturingProjectIssues
Issue Log (Quality File)
New Project Issues (Any Project Source)
Up-dated Issue Log [U] Examining Project Issues (CS4))
Figure 89: CS3 Plus Inputs and Outputs
A Project issue can be raised by anyone associated with the project. Typically
organisations will have their own existing change control arrangements and these should
be adopted where they are performing satisfactorily.
The first job on receipt of a Project Issue is to record it on the Issue Log - this will
normally be a function of Project Support or the Configuration Librarian where appointed.The Issue can then be passed to “CS4 - Examining Project Issues”.
The types of Project Issue are:
♦ Request For Change - causing a change to the Customer’s Specification or Acceptance
Criteria; usually paid for by the Customer.
♦ Off-Specification causing errors or omissions in work already completed or planned;
usually paid for by the Supplier.
♦ Other Changes such as modification to the Project Management Team.
More information can be found in the Chapter on Understanding The Change Control
Component and Technique.
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CS4 - Examining Project Issues
This Process enables each Project Issue to be examined and its impact assessed; this
should be carried out as soon as possible after receipt and logging of the Project Issue.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
Issue Log [U] Reviewing Stage Status
(CS5)
Risk Log [U] Reviewing Stage Status (CS5)
CS4 –
EvaluatingProjectIssues
Business Case
(SB3)
Stage Plan (CS2)
Issue Log (CS3)
Risk Log (SB4)
Project Plan (SB2)
Issue Log [U] Reporting Highlights (CS6)
Figure 90: CS4 Plus Inputs and Outputs
The examination and evaluation of Project Issues may take place via a regular meeting or
by circulation of the Issue and comments to those involved. Whatever route is chosen,
progress needs to be recorded in the Issues Log.
Project Issues should always be examined from a Customer, Supplier and Business
perspective; any action needed which would take the Management Stage over the agreed
Tolerance must be referred to the Project Board in the form of an Exception Report (see“Escalating Project Issues (CS8))”.
Responsibility for examining Project Issues rests with the Project Manager who will use
the support services of Team Managers in helping arrive at an appropriate decision. TheSenior User member of the Project Board will prioritise and if necessary canvas the
Project Board for any additional resources needed to clear outstanding Project Issues.
Prioritisation of outstanding Project issues is usually done by referring to the Issues Log at
each End Stage Assessment.
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CS5 - Reviewing Stage Status
This Process provides for a regular check of how the Management Stage is performing
against its approved plan. The intention is to allow the Project Manager to stand back
from the day to day problem solving activities and take stock, prior to reporting the
situation to the Project Board.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
Notification of Project End [C] De-Commissioning A
Project (CP1)
Work Trigger(s) [C] Authorising Work Package (CS1)
Stage Status Information [C] Reporting Highlights (CS6)
Plan Deviation [C] Taking Corrective Action (CS7)
Stage Plan [U] Escalating Project Issues (CS8)
Planning A Stage (SB1)
Project Issue [R] Escalating Project issues (CS8)
CS5 –
ReviewingStageStatus
Stage Plan (CS2)
Issue Log (CS4)
Risk Log (CS4)
Tolerances (DP3)
Business Case (DP3)
Project Plan (DP3)
Stage End Notification [C] Planning A Stage (SB1)
Figure 91: CS5 Plus Inputs and Outputs
The key driver for assessing Management Stage status is the “Assessing Progress (CS2)”
Process which captures information from Checkpoint Reports and Timesheets and updatesthe approved plans with “actuals”. Inputs will also be needed from the Issues Log where
modifications to the Management Stage plans may be brewing following the discovery of
errors and omissions or ideas for improvement., and the Risk Log which will enable the
Project Manager to review emerging risks identified at the outset of the Management
Stage.
The overall outcome of the Process is to ensure on a regular basis (recommended weekly
at the minimum) that the Management Stage remains within Tolerance and that nothing
untoward is likely to occur without warning.
Information and knowledge gleaned from this Process will feed the creation of theHighlight Report for the Project Board.
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CS6 - Reporting Highlights
Having approved a Management Stage Plan, the Project Board will need to be kept
informed of the progress being made towards the successful conclusion of the stage.
Reporting Highlights to the Project Board will be a regular, time-related activity, typically
every month but specifically at the frequency required by the Project Board.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
Highlight Reports [C] Giving Ad-Hoc Direction (DP4)
CS6 –ReportingHighlights
Communication Plan (Project File/PID)
Stage Plan (CS5)
Checkpoint Reports (CS5)
Issue Log (CS5)
Risk Log (CS5)
Tolerances (CS5)
Plan Revisions (CS5)
Communications To InterestedParties [C]
Corporate or Programme Management
Figure 92: CS6 Plus Inputs and Outputs
The objective of the Highlight Report is to provide summary information to the ProjectBoard - one sheet of paper (or its equivalent) is all that is needed. The steps taken in
performing this Process are:
Assemble information from Checkpoint Reports and Project Issues received during the
previous period since the last Highlight Report
♦ Identify any new or potential problem arising from “Reviewing Stage Status (CS5)”
♦ Identify any significant revisions to the approved plan from “Taking Corrective Action
(CS7)”
♦ Create the Highlight Report (Project Support might well produce the first draft)
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♦ Distribute the Highlight Report to Project Board members and any other agreed
recipients.
The Highlight Report does not normally require a meeting of the Project Board although
this is an option for high-profile, high-risk projects where the Project Board are
particularly sensitive about the progress that is being made.
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CS7 - Taking Corrective Action
In even the best managed projects, departures from the planned course of action will occur
and remedial action must be taken to bring the work back into line. This Process enables
the Project Manager to make small adjustments, within the agreed Tolerance, to the work
being carried out.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
Work Trigger [C] Authorising Work Package (CS1)
Up-dated Stage Plan [U] Reporting Highlights (CS6)
CS7 –TakingCorrectiveAction
Stage Plan (CS5)
Issue Log (CS5)
Plan Deviation (CS5)
Risk Log (CS5) Request For Advice [C] Giving Ad-Hoc Direction
(DP4)
Figure 93: CS7 Plus Inputs and Outputs
The main driver for the Process comes from “CS5 - Reviewing Stage Status” where
deviations from the required and planned outcome will start to become apparent. Projects
seldom change course dramatically but rather significant slippage is prompted by many
smaller incidents and this Process aims to treat each incident as it occurs. Additional Work Packages may be identified in this Process.
Advice and guidance may well need to be sought from Project Board members and this
will usually be informal. The results of this Process will need to be considered for
reporting to the Project Board by inclusion on the next Highlight Report but this should be
the exception rather than the rule.
The Project Manager is responsible for the operation of this Process helped by the Project
Management Team. Project Managers should always be aware of the build-up of
apparently minor problems being symptomatic of bigger trouble with the project.
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CS8 - Escalating Project Issues
As soon as it is forecast that a Management Stage (or the Project) is likely to go outside
the Tolerance the Project Manager must notify the Project Board by raising an Exception
Report.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
Exception Report [C] (+ Responseback from Project Board)
Giving Ad-Hoc Direction (DP4)
Producing An Exception Plan (SB6)
Project Board Response [R] Producing An Exception Plan (SB6)
CS8 –EscalatingProjectIssues
Business Case (CS5)
Issue Log (CS5)
Project Plan (CS5)
Stage Plan (CS5)
Risk Log (CS5)
Project Initiation Document (IP6)
Stage Plan [R] Producing An Exception Plan (SB6)
Figure 94: CS8 Plus Inputs and Outputs
Although many things may contribute to or trigger this Process the most common situation
is where a Project Issue has been raised to record an error or deficiency with one or more
Products. The steps to be taken in this Process are:
♦ Identify the problem and carry out an Impact Analysis
♦ Identify and Evaluate options for recovery
♦ Select a recommended direction
♦ Document the problem, reasons, impact, options and recommendations in an Exception
Report for the Project Board
♦ Await the Project Board’s response
The expected outcome will be a request to produce an Exception Plan which will replace
the plan that has gone into exception. The Project Board’s views and advice shouldalways be sought before producing an Exception Plan and the effect on the overall Project
Plan (including the Business Case and Risks) must always be evaluated.
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CS9 - Receiving A Completed Work Package
This Process records the successful completion of a Work Package (or Product) anddelivery of it back into the host organisation. It is closely associated with “Authorising A
Work Package (CS1)” discussed earlier.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
CS9 –ReceivingCompletedWorkPackage
Approved Work Package (MP3) Work Package Status [C] Assessing Progress
(CS2)
Figure 95: CS9 Plus Inputs and Outputs
The arrangements for delivering the Completed Work Package will have been agreed
when the Work Package was accepted by the Supplier, Team Manager or personresponsible for its production in the Process “ Accepting A Work Package (MP1)”.
Completed Work Packages or Products delivered into the host organisation will all have
been Quality Reviewed (in Process “Executing A Work Package (MP2)”) in accordance
with the requirements agreed when the Work Package was accepted.
The results of the Process are used to assess the progress made by recording the task as
complete and updating the Management Stage and project records accordingly.
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Summary of the Controlling A Stage Process
C ontrolling A Stage (CS) is the main project management driver for a PRINCE 2
controlled project. The Process is owned by the Project Manager and is where most of the
“day-to-day” project management activities are carried out.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
Plan Adjustments [C] Assessing Progress (CS2)
CS1 –AuthorisingWorkPackage
Stage or Exception Plan (DP3)
Authorisation To Proceed (DP3)
Proposed Work Package (CS5)
Work Trigger (CS7
Product Descriptions (PL2)
Work Package [C] Accepting A WorkPackage (MP1)
CS2 –AssessingProgress
Checkpoint Reports (MP2)
Quality Log (MP2)
Plan Adjustments (CS1)
Stage Plan (CS5)
Work Package Status (CS9)
Up-dated Stage Plan [U] Examining Project Issues (CS4)
Reviewing Stage Status (CS5)
CS3 –CapturingProjectIssues
Issue Log (Quality File)
New Project Issues (Any Project Source)
Up-dated Issue Log [U] Examining Project Issues (CS4))
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Issue Log [U] Reviewing Stage Status
(CS5)
Risk Log [U] Reviewing Stage Status (CS5)
CS4 –
EvaluatingProjectIssues
Business Case
(SB3)
Stage Plan (CS2)
Issue Log (CS3)
Risk Log (SB4)
Project Plan (SB2)
Issue Log [U] Reporting Highlights (CS6)
Notification of Project End [C] De-Commissioning AProject (CP1)
Work Trigger(s) [C] Authorising Work Package (CS1)
Stage Status Information [C] Reporting Highlights (CS6)
Plan Deviation [C] Taking Corrective Action (CS7)
Stage Plan [U] Escalating Project Issues (CS8)
Planning A Stage (SB1)
Project Issue [R] Escalating Project issues (CS8)
CS5 –ReviewingStageStatus
Stage Plan (CS2)
Issue Log (CS4)
Risk Log (CS4)
Tolerances (DP3)
Business Case (DP3)
Project Plan (DP3)
Stage End Notification [C] Planning A Stage (SB1)
Highlight Reports [C] Giving Ad-Hoc Direction (DP4)
CS6 –ReportingHighlights
Communication Plan (Project File/PID)
Stage Plan (CS5)
Checkpoint Reports (CS5)
Issue Log (CS5)
Risk Log (CS5)
Tolerances (CS5)
Plan Revisions (CS5)
Communications To InterestedParties [C]
Corporate or Programme
Management
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Work Trigger [C] Authorising Work
Package (CS1)
Up-dated Stage Plan [U] Reporting Highlights (CS6)
CS7 –
TakingCorrectiveAction
Stage Plan (CS5)
Issue Log (CS5)
Plan Deviation (CS5)
Risk Log (CS5) Request For Advice [C] Giving Ad-Hoc Direction
(DP4)
Exception Report [C] (+ Responseback from Project Board)
Giving Ad-Hoc Direction (DP4)
Producing An Exception Plan (SB6)
Project Board Response [R] Producing An Exception Plan (SB6)
CS8 –EscalatingProjectIssues
Business Case (CS5)
Issue Log (CS5)
Project Plan (CS5)
Stage Plan (CS5)
Risk Log (CS5)
Project Initiation Document (IP6)
Stage Plan [R] Producing An Exception Plan (SB6)
CS9 –ReceivingCompletedWorkPackage
Approved Work Package (MP3)
Work Package Status [C] Assessing Progress (CS2)
Figure 96: Summary of the Controlling A Stage (CS) Process
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UNDERSTANDING THE
MANAGING PRODUCT DELIVERY
PROCESS
Chapter 16
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Managing Product Delivery (MP) - Introduction
This major Process is aimed primarily at managing the interface between the Customer
Project Manager and the Supplier Project Manager ensuring that work is actually
progressing in accordance with the customer’s expectations and that all the planned
Products are created and delivered within the agreed time-scales and contract price or
internally approved budget, and meet their approved Quality Criteria. The Process is also
used for managing the delivery of Products where an external Supplier is not involved in
the project and where all resources managed by the project are internal; it is also
appropriate where there is a mixture of both.
Figure 97: Managing Product Delivery (MP) Process
The Process comprises:
♦ making certain that work on Products allocated to each external Team or Team
Member resource is properly Authorised;
♦ ensuring that Packages of Work are identified, discussed, agreed, authorised and
accepted by those responsible for the creation of Products;
♦
checking that all Interfaces between the Customer and Supplier organisations areidentified, recorded, observed and handled in an appropriate way;
Assessing
Progress
CS2
Checkpoint Report
Quality LogStage Plan
Work Package
ClosureProduct Sign-off
Accepting a
Work Package
MP1
Executing a
Work Package
MP2
Delivering a
Work Package
MP3
Receiving
Completed
Work
PackageCS9
Authorising
Work Package
CS1
Work Package
Stage Plan
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♦ ensuring that all the Work is actually Carried Out, as agreed;
♦ ensuring that the Progress of Work and Forecasts of the time and effort to completion
are regularly assessed;
♦ checking that all finished Products conform to their agreed Quality Criteria;
♦ obtaining Approval for completed Products. This will usually be at three levels –
Producer and Reviewer level, Project Manager level, and ultimately endorsement by
the Project Board at the end of each Project Stage. These levels of approval will be
reflected in both the Customer and Specialist Supplier organisations, although it is not
necessary that either will be working within a PRINCE environment; it is essential,
however, that all involved are working within a suitably controlled project management
environment.
This Process will operate continuously throughout each Stage; it provides a healthy
separation between the Customer Project Manager and the Supplier Project Manager and
requires the interface between the Supplier(s) (be they internal or external) and theCustomer to be identified, defined and operated. Care must be taken to ensure that the
interfaces are neither missed nor lost, and that bureaucracy is kept to the absolute
minimum consistent with effective control.
Where a Project Manager allocates work directly to individuals responsible for carrying
out the work package, this Process will be informal but will always exist.
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MP1 - Accepting A Work Package
The Process provides for the establishment of agreement between the Project Manager
and the Team Manager, Team or individual who will be responsible for creating and
delivering the completed Work package (or Product) for the host organisation.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
Risk Log [U] Up-Dating The Risk Log (SB4)
Work Package (Authorised) [C] Executing A Work Package (MP2)
MP1 –Accepting AWorkPackage
Work Package (CS1)
Team Plan [C] Executing A Work Package (MP2)
Figure 98: MP1 Plus Inputs and Outputs
The interface between the Project Manager and those responsible for creating the Products
of the project needs to be properly managed. This Process enables the agreement to beestablished before any work is commenced. The agreement/interface manifests itself in
the form of a Work Package authorisation of which the key elements are:
♦ Agreement of the Objectives for the Work Package
♦ Tolerances for the Work Package
♦ The Reporting Arrangements - Timing and Content
♦ A Plan for the Work Package
♦ A Product Description specifying the Product’s content, its Quality Criteria and the
Method of measuring if the Product conforms to its stated Quality Criteria.
The Project Manager is responsible for delivering the Products to the Project Board as part
of the Management Stage objectives; responsibility for agreement of the Work Package
resides with the Project Manager and the Team Manager, where appointed (and the Project
Manager where no Team Manager exists).
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MP2 - Executing A Work Package
This Process addresses the creation of the Products of the project. It may be that thecreators of the Products are not using PRINCE or any other formal project management
method and where this is the case agreement of the Work Package in MP1 is even more
significant.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
Quality Log [U] Assessing Progress (CS2)
Checkpoint Reports [C] Assessing Progress (CS2)
Completed Work Package [C] Delivering A Work Package (MP3)
MP2 –Executing AWorkPackage
Work Package (Authorised) (MP1)
Team Plan (MP1)
Team Plan [U] Stage File
Figure 99: MP2 Plus Inputs and Outputs
It is within this Process that “actuals” are captured, at source, to enable the effort and costs
in the Management Stage Plan and the Project Plan to be updated within the “Controlling
A Stage - Assessing Progress (CS2)” Process.
The quality checking arrangements agreed within MP1 will be performed during this
Process; the objective is to ensure that quality is integral to the Product(s) being built so
that Products delivered back into the host organisation are complete and ready to be placed
into the Configuration Management System as finalised Products. Indeed it might well bethat the Configuration Librarian may be the first recipient of completed Work Packages or
Products to log and file them before reporting the situation to the Project Manager.
Checkpoint Reports are generated within MP2 at the frequency and in the format agreed in
the Work Package. Checkpoint Reports are used within CS2 to update the Management
Stage and Project Plans.
Responsibility for all activities within this Process is vested in the Team Manager where
appointed, or the Project manager where no such appointment has been made.
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MP3 - Delivering A Work Package
Formalising the return of a completed Work Package is the focus for this Process.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
MP3 –Delivering A
WorkPackage
Completed Work Package (MP2)
Approved Work Package [C] Receiving Completed Work Package (CS9)
Figure 100: MP3 Plus Inputs and Outputs
A simple but significant Process, MP3 provides for final sign-off of the Product(s),
dispatch and hand-over of the Product(s) and formal notification to the Project manager of
the completion of work by the Team Manager or person responsible.
The arrangements for hand-over and notification should have been established in MP1 and
will often be embodied into a formal contract document.
Responsibility lies with the Team Manager where appointed.
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Summary of the Managing Product Delivery Process
Managing Product Delivery is the “engine room” for the PRINCE 2 project, creating the
Products required for Management Stage; it is where the bulk of the project’s time, effort
and financial resources will be spent. The Process will always be present in some form
although it will be less formal where no outside Supplier or sub-contractor is being used.
External suppliers may not be using the PRINCE 2 Method for their project management
standard and this Process may not, therefore be physically implemented or understood
where this is the case.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
Risk Log [U] Up-Dating The Risk Log (SB4)
Work Package (Authorised) [C] Executing A Work Package (MP2)
MP1 –Accepting AWorkPackage
Work Package (CS1)
Team Plan [C] Executing A Work Package (MP2)
Quality Log [U] Assessing Progress (CS2)
Checkpoint Reports [C] Assessing Progress (CS2)
Completed Work Package [C] Delivering A Work Package (MP3)
MP2 –Executing AWorkPackage
Work Package (Authorised) (MP1)
Team Plan (MP1)
Team Plan [U] Stage File
MP3 –Delivering A
WorkPackage
Completed Work Package (MP2)
Approved Work Package [C] Receiving Completed Work Package (CS9)
Figure 101: Summary of the “Managing Product Delivery (MP)” Process
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UNDERSTANDING THE
MANAGING STAGE BOUNDARIES
PROCESS
Chapter 17
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Managing Stage Boundaries (SB) - Introduction
To achieve a successful outcome to the project, it is necessary to break it into smaller,
discrete packages to enable the Project Team to focus on specific Products or Deliverables;
this approach provides the concept of Project Stages. By controlling the start and finish of
each stage, specific attention can be given to whether the Stage Products/Deliverables
have all been completed in accordance with their Quality Criteria, whether the remaining
project Products/Deliverables are still required, and whether the Business Case for the
project remains viable.
Figure 102: Managing Stage Boundaries (SB) Process
The aims of the Process are:
♦ to assure the Project Board that all the Products/Deliverables planned for the current
stage have been completed and meet their Quality Criteria;
♦ to provide the information on time-scale, technical achievement, and the budget needed
to enable the Project Board to assess whether the overall project Business Case is still
viable, and whether the Benefits can be achieved within an acceptable level of risk;
ReportingStage End
SB5
Updating aProject Plan
SB2SB1
Updating aProjectBusinessCase SB3
Updating theRisk Log
Producing AnExceptionPlan
SB4
Authorising a
Stage orExceptionPlan
DP3Project Plan, Business Case,Project Brief
Issue Log
Risk Log
Business Case
Request for Authorisation to proceed
Next Stage Plan
End Stage ReportLessons Learned Report
Risk, Issue andQuality Logs
Current Stage Plan
Current PM Team
Risk & Issue Log
Project Plan
Updated PM team
Request ForException Plan+ Exception Report
Agreed Tolerance
CurrentStagePlan
Issueand RiskLog
Project Approach
ProjectQualityPlan
PlansIssueand RiskLogs
Plans Plans
Closing aProject
CP
Project Brief
Planning AStage
SB6
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♦ to provide decision-support information on the status of the current stage and the
overall project, which will enable the Project Board to reach a decision on final
completion of the current stage, authorise the start of the next stage, and to endorse the
overall project.
♦ to provide a vehicle for stating the Tolerance which may be allowed for the next Stage.
Tolerance is a control providing cost and time “trigger-figures” beyond which the
Project Manager may not progress without the approval of the Project Board.
♦ to record any information or Lessons Learned which might impact on later stages of
the project, or on the organisation as a whole.
The Process is an iterative one as the project proceeds from one stage to the next.
Controlling the start and end of stages is a key control process for the Project Board and
incorporates all the key aspects of directing a project.
Exception Plans
The steps of this Process may also be used when creating an Exception Plan, where a
significant departure from the approved plan has occurred and Tolerance is forecast to beexceeded. In order to reach a decision on the future of the project, the Project Board will
need to consider an impact analysis, options appraisal, and a recommendation for action
prepared by the Project Manager; these will all need to be supported by an up-dated
Business Case confirming the benefits and re-appraisal of the risks.
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SB1 - Planning A Stage
As the project progresses the Project Board will limit their commitment and risk exposure
by releasing the commitment of effort and funding via End Stage Assessments at the
completion of each Management Stage. A key input to these major Project Board controls
is the plan for the next Management Stage put together in SB1.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
Next Stage Plan [C]
Up-Dating A Project
Plan (SB2)
Project Plan [R] Up-Dating A Project Plan (SB2)
Project Management TeamChanges [U]
Reporting Stage End (SB5)
SB1 –
Planning AStage
Current Stage Plan
(CS5) (Stage File)
Stage End Notification (CS5)
Project Plan (IP2)(Project File)
Trigger For Next Stage Plan (IP2)
PID (IP6) (Project File)
Current Project Management Team (IP6) (Project File &Stage File)
Product Checklist [U] Reporting Stage End (SB5)
Figure 103: SB1 Plus Inputs and Outputs
The aim of the Process is to identify all the Products (Specialist, Management and Quality)
that will need to be produced during the next Management Stage and estimate the effort
and cost to its completion. A number of inputs will be necessary to achieve this end
(including the agreed Project Plan) to accurately position the Management Stage, and theyare summarised in the above diagram.
The Organisation Structure for the Project Management Team will also be reviewed
during this Process, to ensure that the most appropriate resources and management team
are available for the work to be undertaken.
Much of the work involved in creating the Next Stage Plan will be carried out by members
of the Project Management Team under the supervision of the Project Manager, who has
prime responsibility for the timely production of the plan.
Any individuals having responsibility for Project Assurance will need to be consulted
during this Process especially in respect of the proposed management controls and quality
control structure.
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SB2 - Updating A Project Plan
Information needed for decision support at the end of each Management Stage obviouslyincludes an updated view of the Project Plan to identify what impact work so far on the
project has impacted on the final delivery date and cost.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
Up-Dated Project Plan [U] Up-Dating A Project Business Case (SB3)
Reporting Stage End (SB5)
Up-Dating The Risk Log (SB4)
SB2 – Up-Dating AProject Plan
Current & Next Stage Plans (SB1)
Exception Plan (SB6)
Project Approach (IP6) (Project File)
Project Quality Plan (IP6) (Project File)
Next Stage Plan [R]
or
Exception Plan [R]
Reporting Stage End (SB5)
Figure 104: SB2 Plus Inputs and Outputs
The three key inputs to this Process are:
♦ the Management Stage which has just been completed (the Current Stage Plan)
♦ the Next Management Stage Plan created in SB1
♦ the approved Project Plan
Actual schedule, effort and cost information is extracted from the Current Stage Plan and
any changes proposed in the Next Stage Plan are used to present an up-to-date view of the
likely final out-turn for the project.
Other inputs are also available to this Process from a number of sources; the main
objective is to present a comprehensive view of what the Project Board is being asked tocommit to, long term, at the approaching End Stage Assessment.
Any significant changes in the Project Plan brought about by this Process should beincluded in the End Stage Report produced by the Project Manager for the Project Board.
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SB3 - Updating A Project Business Case
The Business Case is the main driving force behind any PRINCE 2 controlled and this
must be kept up to date and reviewed at the completion of each Management Stage as a
minimum requirement.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
Business Case [U] Reporting Stage End (SB5)
SB3 – Up-Dating AProjectBusinessCase
Up-Dated Project Plan (SB2)
Exception Plan or Next Stage Plan (SB2)
Risk Log (SB4)
Issue Log (SB4)
Risk Log [R] Reporting Stage End SB5)
Figure 105: SB3 Plus Inputs and Outputs
Many events would have occurred during the previous Management Stage which will
impact the Business Benefits which were used to justify the project initially and at the last
formal Project Board Review. For example, if the overall project plan has been extended
or its predicted out-turn cost increased then there will be a detrimental effect on the
Business Benefits; the reverse is also true!
On the positive side, it can be expected that the risks faced by the project will be reduced
as progress is made. This aspect is treated in SB4 - “Updating The Risk Log” but needs tobe considered here as the two topics are very closely related.
Changes requested (and made) during the Management Stage will also impact on theBusiness Benefits, especially where required changes for improved functionality have
incurred additional effort and costs.
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SB4 -Updating The Risk Log
As the project proceeds towards its planned conclusion, the risks faced for delivering on
time, within budget and to the required specification should reduce. This must be recorded
and presented to the Project Board when they are being asked to approve the next
Management Stage Plan.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
Risk Log [U] Up-Dating A Project Business Case (SB3)
Accepting A Work Package (MP1)
SB4 – Up-Dating TheRisk Log
Project Plan (SB2)
Next Stage Plan (SB2)
Exception Plan (SB2)
Issue Log CS4 (Quality File)
Issue Log [U] Up-Dating A Project Business Case (SB3)
Figure 106: SB4 Plus Inputs and Outputs
Essentially the Risk Management Component comes back into play and the project risk re-
assessed. Although PRINCE 2 does not include any requirement to use any specific risk
management tool the Risk Analysis Checklist described in Chapter 6 can be used to update
the risks. Whatever approach is used, the results must be logged and presented to the
Project Board at the End Stage Assessment. The Risk Log should indicate a downward
trend if the project is to proceed without any changes. Significant increases in the risk
measurement must always be brought to the attention of the Project Board andrecommendations made.
Ownership of each identified risk should always be considered - the most appropriate
member of the Project Management Team being best placed to keep a watchful eye on
movements against the baseline.
Changes in approach, planning and resource usage will always have a potential impact on
the risks facing the project and so changes to the Project Plan or Next Stage Plan shouldalways be reviewed for their impact within this Process.
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SB5 - Reporting Stage End
The results of a Management Stage needs to be reported back to those who have provided
the resources which have contributed to its completion
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
End Stage Report [C] Authorising A Stage or
Exception Plan (DP3)
Request for Authorisation ToProceed [C]
Authorising A Stage or Exception Plan (DP3)
Next Stage Plan [R] Authorising A Stage or Exception Plan (DP3)
Exception Plan [R] Authorising A Stage or Exception Plan (DP3)
Risk Log [R] Authorising A Stage or Exception Plan (DP3)
Product Status Account [C] De-Commissioning AProject (CP1)
SB5 –
ReportingStage End
Project Plan (SB2)
Current Stage Plan (SB2)
Next Stage Plan or Exception Plan (SB2)
Business Case (SB3)
Issue & Risk Logs (SB3)
Quality Log (CS5)(Quality File)
Communication Plan (IP4) (Project File)
Communications to interestedparties [C]
Corporate or Programme Management
Figure 107: SB5 Plus Inputs and Outputs
This Process is activated as near as possible to the end of the Current Management Stage.
The results of the Process are presented as an End Stage Report which summarises the
result of the Management Stage; the report provides the following information to the
Project Board:
♦ Planned vs out-turn costs
♦ Planned vs out-turn effort
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♦ Planned vs out-turn milestone dates
♦ Products delivered (and confirmation they meet the stated Quality Criteria
The End Stage Report acts as the vehicle for presentation of the Stage results and the Next
Stage Plan to the Project Board.
Responsibility for creation of the report rests with the Project Manager, with help and
support from the Project Management Team as appropriate. It will be provided up to a
week in advance of the End Stage Assessment to allow Project Board members to consider
its content; arrangements for handling Management Stage endings to allow for this are
discussed in the Chapter on Understanding The Stages Component .
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SB6 - Producing An Exception Plan
As soon as it is forecast that a Management Stage is likely to deviate beyond the
Tolerance set by the Project Board at the previous End Stage Assessment, it is deemed to
be in Exception and an Exception Report must be prepared for the Project Board. The
likelihood is that the Project Board will require an Exception Plan to be prepared and this
Process is where such a plan is created.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
SB6 –ProducingAnExceptionPlan
Exception Report (CS8)
Stage Plan (CS8)
Exception Plan Request (DP4)
Exception Plan [C] Up-Dating A Project Plan (SB2)
Authorising A Stage or Exception Plan (DP3)
Figure 108: SB6 Plus Inputs and Outputs
Standard Tolerance is measured in Time (Schedule) and Cost. For each Management
Stage Tolerance is recommended by the Project Manager, based on the latest assessmentof risk and the nature of the work, and confirmed by the Project Board at the End Stage
Assessment. There is a separate component within PRINCE 2 for Tolerance described in
the Controls Component. Additional Tolerances might be usefully considered – these
include Scope, Quality and Risks.
The Exception report, raised by the Project Manager as soon as it is forecast that Tolerance
will be exceeded, describes the nature of the exception, its impact on the ManagementStage and Project, the options open to recover the situation, and the recommendation by
the Project Manager. The Exception Report is considered in “Giving Ad-Hoc Direction
(DP4)” by the Project Board members (although no specific meeting or control for this
consideration is identified by PRINCE).
The Project Board will normally require an Exception Plan to be created to replace the
approved plan which has been departed from; they might, of course decide to prematurely
terminate the project or to just live with the departure but this could not be described asrealistic management.
This Process creates the Exception Plan which will be approved by the Project Board in
“Authorising A Stage or Exception Plan (DP3)” Process at a specially convened MidStage Assessment.
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Summary of the Managing Stage Boundaries Process
The “Managing Stage Boundaries Process (SB)” Process will always be present in a
PRINCE 2 controlled project (since every PRINCE project will have a minimum of two
Management Stages, and therefore at least one SB Process).
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
Next Stage Plan [C]
Up-Dating A Project Plan (SB2)
Project Plan [R] Up-Dating A Project Plan (SB2)
Project Management TeamChanges [U]
Reporting Stage End (SB5)
SB1 –Planning AStage
Current Stage Plan (CS5) (Stage File)
Stage End Notification (CS5)
Project Plan (IP2)(Project File)
Trigger For Next Stage Plan (IP2)
PID (IP6) (Project File)
Current Project Management Team (IP6) (Project File &Stage File)
Product Checklist [U] Reporting Stage End (SB5)
Up-Dated Project Plan [U] Up-Dating A Project Business Case (SB3)
Reporting Stage End (SB5)
Up-Dating The Risk Log (SB4)
SB2 – Up-Dating AProject Plan
Current & Next Stage Plans (SB1)
Exception Plan (SB6)
Project Approach (IP6) (Project File)
Project Quality Plan (IP6) (Project File)
Next Stage Plan [R]
or
Exception Plan [R]
Reporting Stage End (SB5)
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Business Case [U] Reporting Stage End (SB5)
SB3 – Up-Dating AProjectBusinessCase
Up-Dated Project Plan (SB2)
Exception Plan or Next Stage Plan (SB2)
Risk Log (SB4)
Issue Log (SB4)
Risk Log [R] Reporting Stage End SB5)
Risk Log [U] Up-Dating A Project Business Case (SB3)
Accepting A Work Package (MP1)
SB4 – Up-Dating TheRisk Log
Project Plan (SB2)
Next Stage Plan (SB2)
Exception Plan (SB2)
Issue Log CS4 (Quality File)
Issue Log [U] Up-Dating A Project Business Case (SB3)
End Stage Report [C] Authorising A Stage or Exception Plan (DP3)
Request for Authorisation ToProceed [C]
Authorising A Stage or Exception Plan (DP3)
Next Stage Plan [R] Authorising A Stage or Exception Plan (DP3)
Exception Plan [R] Authorising A Stage or Exception Plan (DP3)
Risk Log [R] Authorising A Stage or Exception Plan (DP3)
Communications to interestedparties [C]
Corporate or Programme Management
SB5 –ReportingStage End
Project Plan (SB2)
Current Stage Plan (SB2)
Next Stage Plan or Exception Plan (SB2)
Business Case (SB3)
Issue & Risk Logs (SB3)
Quality Log (CS5)(Quality File)
Communication Plan (IP4) (Project
File)
Product Status Account [C] De-Commissioning AProject (CP1)
SB6 –ProducingAnExceptionPlan
Exception Report (CS8)
Stage Plan (CS8)
Exception Plan Request (DP4)
Exception Plan [C] Up-Dating A Project Plan (SB2)
Authorising A Stage or Exception Plan (DP3)
Figure 109: Summary of the “Managing Stage Boundaries (SB)” Process
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UNDERSTANDING THE
CLOSING A PROJECT
PROCESS
Chapter 18
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Closing A Project (CP) - Introduction
At its conclusion, the project must be closed down in an orderly and firm manner. The
end of a project may arise when all the planned work has been completed and the
Products/Deliverables finished and signed off as meeting their stated Quality Criteria.
Alternatively a project might be brought to a premature conclusion because of changes to
requirement, removal of resources or unacceptable slippage of time, effort or costs.
Figure 110: Closing A Project (CP) Process
Most of the work involved in this major Process is concerned with preparation of
information for the Project Board in order for it to make the decision to close the project,
or not. Rather like Project Initiation and Stage Initiation, this Process provides a decision-
support structure; it aims to:
♦ ensure that the Objectives for the project have been met;
♦ confirm that the Customer is Satisfied with the outcome;
ProjectEvaluation
Review
CP3
Confirming
Project
Closure
DP5
De-
commissioning
a Project
CP1
Identifying
Follow-on
Actions
CP2
Reviewing
Stage Status
CS5
Reporting
Stage End
SB5
Giving ad hoc
Direction
DP4
Follow-on Action
Recommendations
Post-Project
Review Plan
Issue, Risk and
Quality Logs
Lessons Learned
Report
Project Files
Notification of
approaching
Project End
Premature
Close
Product Status
Account
PID
Project ClosureNotification
Operational and
Maintenance
Acceptance
Customer Acceptance
Lessons Learned
Report
End Project Report
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♦ obtain Formal Acceptance of the project Products/Deliverables;
♦ confirm that all Products/Deliverables have been handed over to the Customer, and
that these have been accepted;
♦ ensure that where Ongoing Support, enhancement and maintenance is appropriate (and
required), suitable provision has been made;
♦ identify any recommendations for Follow-on Actions and document;
♦ Capture “Lessons Learned” and publish these in a suitable report for the Project
Board;
♦ Prepare an “End Project Report” for sign-off by the Project Board;
♦ Notify the Customer/Sponsor/Host Organisation, as appropriate, of the Intention to
Close the project, disband the project organisation and release the resources.
Obviously, it will be difficult to close down a project in an orderly manner if the
expectations and criteria for completion and close-down have not been agreed at the outset
and this will normally have been done and the final Acceptance Criteria included withinthe Project Initiation Document. Project staff and managers should be provided with as
much notice as possible in order for them to plan their return to normal operations.
Thanks to those who have contributed to the project are also in order!
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CP1 - Decommissioning A Project
The main aim of this Process is to bring the project to an orderly close, ensuring that the
Customer is happy with the outcome and demonstrates this by providing a Customer
Acceptance sign-off. Assurance that the outcome can be supported and that a proper audit
trail exists for the project documentation, should it be needed in the future, must also be
forthcoming.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
Project Closure Notification [C] Confirming Project Closure (DP5)
Operational & MaintenanceAcceptance [C]
Confirming Project Closure (DP5)
Customer Acceptance [C] Confirming Project Closure (DP5)
Draft communication to interestedparties [C]
Confirming Project Closure (DP5)
CP1 – De-Commissioning AProject
Premature Close (DP4)
Notification of Project End (CS5)
Product Status
Account (CS5)
Issue Log (SB5)
PID (IP6) (Project File)
CommunicationPlan (IP6) (Project
File)
Project Files [R] Archives
Figure 111: CP1 Plus Inputs and Outputs
Key features of CP1 are:
♦ Checking that all Project issues have been dealt with;
♦ Checking that all Products have been completed, documented and handed over;
♦ Confirmation that the Customer’s Specification has been addressed;
♦ Confirmation that the outcome can be supported, operationally;
♦ Archive of all project documentation (mainly for audit purposes);
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♦ Notify all concerned that the project is coming to a conclusion and resources will be
returned.
This Process is primarily the responsibility of the Project Manager in that it marks the
conclusion of the work performed over what will often be a considerable period of time.
There will be a need for close contact between the Project Manager and Project Board
members to ensure there are “no surprises” at the final meeting to close the project
formally.
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CP2 - Identifying Follow-on Actions
Essentially picking up any loose ends that remain at the conclusion of the project. In
particular any outstanding changes in requirements, raised as Project Issues, which were
not actioned for fear of prejudicing a contractual situation or because time and budget did
not allow the changes to be introduced. There might also have been some general
technical improvements that would benefit the project’s outcome that the Supplier wishes
to bring to the Customer’s attention.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED ORUSED
OUTPUT TO
Post-Project Review Plan [C] Confirming Project Closure (DP5)
CP2 -IdentifyingFollow-OnActions
Business Case (SB5)
Risk Log (SB5)
Issue Log (SB5) Follow-On ActionRecommendations [C]
Confirming Project Closure (DP5)
Figure112: CP2 Plus Inputs and Outputs
A major output from this Process is the Post-Project Review Plan which will be used to set
up a future project to review whether the Business Benefits identified at the outset (and
reviewed and updated at each formal review) of the project, have been achieved. This will
usually take place between 6-12 months after the project has been formally closed.
The follow-on Actions Recommendations will provide the basis for Project Mandates for
any future projects which may arise from the recommendations made.
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CP3 – Project Evaluation Review
The lessons learned during the project must be captured as it progresses and disseminated
to those in the host organisation that would benefit from it at the conclusion of the project.
There is also a need to compare what was intended to be achieved by the project against
what was actually achieved. This review addresses the project and its outcome rather than
the outcome itself (which will the subject of a Post-Project Review (see CP2).
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
Lessons learned Report [U] Confirming Project Closure (DP5)
CP3 -ProjectEvaluationReview
Lessons Learned Report (SB5)
Risk Log (SB5)
Quality Log (SB5)
Issue Log (SB5)
PID (IP6) (Project File)
End-Project Report [C] Confirming Project Closure (DP5)
Figure 113: CP3 Plus Inputs and Outputs
The Lessons Learned Report (Log) is a prime input to this Process, along with the various
Logs needed to provide a comprehensive view of the performance of the project.
The outputs are:
♦ An assessment of the project against its targets;
♦ An examination of the records to establish how well the Project Management and
Quality Management Standards performed and to what extent they supported the
project;
♦ Identify any lessons learned and to recommend changes to the existing standards.
The Project Manager has responsibility to produce these analyses and present them to the
Project Board
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Summary of the Closing A Project Process
Closing A Project provides the “housework” tasks for properly shutting down a project.
Authority for closure can only be given by the Project Board. The Process is essential for
an orderly and effective shut-down of the project.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
Project Closure Notification [C] Confirming Project Closure (DP5)
Operational & MaintenanceAcceptance [C]
Confirming Project Closure (DP5)
Customer Acceptance [C] Confirming Project Closure (DP5)
Draft communication to interestedparties [C]
Confirming Project Closure (DP5)
CP1 – De-Commissioning AProject
Premature Close (DP4)
Notification of
Project End (CS5)
Product Status
Account (CS5)
Issue Log (SB5)
PID (IP6) (Project
File)
Communication
Plan (IP6) (Project
File)
Project Files [R] Archives
Post-Project Review Plan [C] Confirming Project Closure (DP5)
CP2 -IdentifyingFollow-OnActions
Business Case (SB5)
Risk Log (SB5)
Issue Log (SB5) Follow-On ActionRecommendations [C]
Confirming Project Closure (DP5)
Lessons learned Report [U] Confirming Project
Closure (DP5)
CP3 -
ProjectEvaluationReview
Lessons Learned
Report (SB5)Risk Log (SB5)
Quality Log (SB5)
Issue Log (SB5)
PID (IP6) (Project File)
End-Project Report [C] Confirming Project Closure (DP5)
Figure 114: Summary of the Closing A Project (CP) Process
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UNDERSTANDING THEPLANNING
PROCESS
Chapter 19
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Planning (PL) - Introduction
Planning embraces PRINCE Components, Processes, and Techniques and is an on-going
activity throughout the project. Understanding of the tasks involved and the possible
pitfalls will emerge from planning the project and stages; control can only be exercised in
as much detail as the project plan allows; and the approaches to planning, using manual or
software supported techniques is a matter of preference and choice for the implementing
organisation.
Planning for all but the smallest projects is best tackled using a software support tool as
the time saved in the longer term will more than repay the initial outlay, especially wherecomplicated inter-dependencies exist between Products and Activities.
Figure 115: Planning (PL) Process
The philosophy behind the PRINCE 2 planning concepts are:
♦ Plans are constructed by identifying the final Products/Deliverables and all associated
intermediate Products/Deliverables;
Completing aPlan
PL7
(Identifying),
Defining and
Analysing
ProductsPL2
Designing aPlan
PL1
IdentifyingActivities and
DependenciesPL3
AnalysingRisks
PL6
DefiningProjectApproach
SU5
PlanningQuality
IP1
Planning anInitiation Stage
SU6
Planning a
Project
IP2
Planning aStage
SB1
Scheduling
PL5
Estimating
PL4
Authorising a
Project or Plan
DP2 or DP3
Reviewing
Stage Status
CS5
Giving ad hoc
Direction
DP4
Plan
Design
Product
Flow
Diagrams
Product
Descriptions List of
Activities
Estimated
Activities
Resourc
e
availabilit
y
Risk Log
Completed
Plan for
approval
Product
Checklist
Assessed
PlanSchedule
Draft Product
Checklist
A c t i vi t y d e p e n d e n c i e s
Producing anException
PlanSB6
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♦ Products/Deliverables are defined and specified by producing associated Product
Descriptions;
♦ The Activities and associated Resources are identified; all Activities must be thought
through to a level consistent with the control requirements identified in the Project
Initiation Document;
The planning framework incorporated in PRINCE 2 is intended to cater for any type or
size of project - after given due consideration to the design of the plan (content, software
tool to be used, levels of planning, detail of content required etc.) the steps are:
♦ Step 1:
Identify and Define what Products/Deliverables are needed;
♦ Step 2:
Determine the sequence in which each Product/deliverable should be produced;
♦ Step 3:
Identify the Activities needed for the creation of the Products/Deliverables;
♦ Step 4:
Estimate the Resource Requirements and calculate the durations (elapsed times)
where appropriate;
♦ Step 5:
Schedule the Activities (usually using a software planning tool;
♦ Step 6:
Schedule the Resource Requirements (usually at the same time as scheduling the
Activities);
♦ Step 7:
Review the Plan especially in respect of Risks and determine the need for any
contingency planning;
♦ Step 8:
Finalise the Plan by assembling all the information and creating a Plan Text;
♦ Step 9:
Print the Plan and obtain approval from the appropriate project authority.
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PL1 - Designing A Plan
PRINCE 2 defines the plan as “the backbone” of every project; essentially it is not
possible to control in any more detail than that planned, so the best advice is to plan in
detail and then select the level of control appropriate to the risk and understanding there is
for the project.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
PL1 –Designing APlan
Project Approach (SU5) (Project File)
Project Quality Plan (IP1) (Quality File)
Project Brief (SU4)(Project File)
Or
Project Initiation
Document (IP6)(Project File)
Company Planning Standards
Plan Design [C] Relevant Process
Figure 116: PL1 Plus Inputs and Outputs
The Process addresses the fundamental decisions that must be made about planning before
any real planning can commence. Decisions must be taken about the approach to planning
and the style of presentation. The required number of levels of plan (Project-level and
Stage-level plans are required in PRINCE controlled projects) and the amount of
information to be included to provide the Project Board with adequate decision-support
must be clearly understood.
Use of software tools for estimating and planning (and possibly for preparation of analysis
tools such as Product Flow Diagrams) must be considered and decisions taken. Decisions
on software tools will affect the means of establishing control, especially how “actuals”
are to be captured and reflected in the approved plans as the project progresses (see“Controlling A Stage (CS2)” Process).
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PL2 - Identifying, Defining And Analysing Products
The benefits of Product-based planning is that management and the Project Management
Team can be assured that all planned activity within the project is geared towards
providing known, required Products or Deliverables that will all contribute towards the
final outcome. As the activities within a project always consume resources (time, effort
and money) then management can be confident that no resource is being wasted on
carrying out unnecessary work.
This Process requires the Project Manager to identify the required Products for the Project
(A Product Breakdown Structure), Define each Product in terms of a Product Description,and then analyse the relationship of Products with each other (and the outside world) by
producing a Product Flow Diagram.
Each of these three Product Plans is described and illustrated in the Chapter on
“Understanding The Product Based Planning Component and Technique”.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
Product Breakdown Structure [C] Relevant Process
Product Descriptions [C] Identifying Activities &Dependencies (PL3)
Relevant Process
Product Flow Diagram [C] Identifying Activities &Dependencies (PL3)
Relevant Process
PL2 –(Identifying)Defining &AnalysingProducts
Project Approach (SU5) (Project File)
Project Quality Plan (IP1) (Quality File)
Draft Product Checklist [C] Completing A Plan (PL7)
Figure 117 : PL2 Plus Inputs and Outputs
For a Project Plan it will not always be possible (or desirable) to identify and define all the
Products for the life of the project. An attempt should be made, however, to present themost comprehensive information available to the Project Board. Often this will be limited
to a statement of the name and a brief description of the expected Product. Planning at
Management Stage level is quite different - a firm commitment in terms of Products,
Activities and Resources required must be made and a fully-featured plan created. If this
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is not possible, consideration must be given to moving the Management Stage boundaryforward to the point where a firm commitment can be made.
The Product Checklist is a useful means of identifying Products (at Project-level and
Management Stage-level), showing their planned Milestone dates and, subsequently, the
achievement dates.
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PL3 - Identifying Activities And Dependencies
The Product Flow Diagram can be put to use to identify the Activities within the plan and
to provide an indication of the likely dependencies between them.
PROCESS
INPUT &SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
PL3 –
IdentifyingActivities &Dependencies
Product Flow
Diagram (PL2)
Product Descriptions (PL2)
Risk Log (Project File)
List of Activities [C]
and
Activity Dependencies [C]
Scheduling (PL5)
Figure 118: PL3 Plus Inputs and Outputs
Each connection between Products (and external entities) on the Product Flow Diagram
represents one or more potential activities to be carried out to create the Product. Armed
with this principle, the Project Manager or planner can derive the raw data to plan the
activities of the Project, Management Stage or Team Plan. The process of deriving
activities from the Product Flow Diagram is also known as “Transformation”.
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PL4 - Estimating
Accuracy and consistency of estimating is perhaps the single most important aspect of
project management. PRINCE 2 devotes little space to how to estimate the project
activities as it relies on the availability of specific approaches and techniques being
available within the organisations involved in the project.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
PL4 –Estimating
All Planning Information
Activity Estimates [C] Scheduling (PL5)
Figure 119: PL4 Plus Inputs and Outputs
Organisations wishing to formalise their estimating methods and procedures will wish toconsider Function Points Analysis Mark 2 which is a license-free estimating method,
owned by CCTA and placed in the public domain to support the PRINCE and Structured
Systems Analysis and Design (SSADM) Methods. The Method is suitable only for IT
projects but the principles can be adapted for other types of project if required.
Other methods of estimating are “Delphi” which is essentially asking experienced people(oracles) to provide the answer! This approach can be structured and formalised by
obtaining a “first-cut” estimate from each individual and gradually refining the estimates
through filters until the most optimistic, most pessimistic, and most likely by consensus is
obtained and using the following formula to create the final estimate:
1 x Most Optimistic + 1 x Most Pessimistic + 4 x Most Likely
6
This approach may not be very scientific but has been around and used effectively formany years!
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PL5 - Scheduling
Scheduling requires the creation of a Programme Evaluation and Review Technique
(PERT) Network and a Gantt (Timescale) Plan. This will usually be done using a
Software planning tool such as MS Project®. There is no requirement in the Method touse a software tool but it will be a great timesaver in all but the smallest of projects.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
PL5 –Scheduling
List of Activities (PL3)
and
Activity Dependencies (PL3)
Activity Estimates (PL4)
Schedule [C] Scheduling (PL6)
Relevant Process
Figure 120: PL5 Plus Inputs and Outputs
The techniques used in this Process are fully explained in the Chapter on “Understanding
The Product-Based Planning Component and Technique”. At the same time that
activities are being inserted into a software support tool, the planner will be prompted toenter resource availability and estimating information. The plan created in this Process
addresses both the work to be done, including start and finish dates, and the people needed
to work on them; it will also provide information on bought-in resources (such as fixed-price sub-contracted work) and equipment.
From the information provided, Resources Reports can be generated for the Project
Management Team and the Project Board members. Where a software support tool is not
being used, a separate Resource Plan will need to be produced to inform the Project Board
of the commitment of resources that is being asked of them.
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PL6 - Analysing Risks
Before a plan can be completed the risks must be re-visited to ensure that any appropriate
contingency planning has been catered for. Risks should, of course, also be addressed at
the outset of planning and through every step.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
Risk Log [U]
Completing A Plan (PL7)
PL6 –AnalysingRisks
All Planning Information
Risk Log (Project File)
Schedule (PL5)
Assessed Plan (Schedule) [U] Completing A Plan(PL7)
Figure 121 : PL6 Plus Inputs and Outputs
Each of the resources planned for should be examined and considered for potential risk and action taken to include a contingency in the plan. Risks can arise from many sources
including:
♦ Quality issues;
♦ Past ability to meet deadlines;
♦ Commitment from Management and Team members;
♦ Past Sub-Contractor performance;
♦ Sources of labour and skill types;
♦ Foreseen and unforeseen external events;
♦ Other initiatives currently under way;
♦ Deadlines set for the project;
♦ Self-belief.
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PL7 - Completing A Plan
The plans addressed in PL2 - PL5 are largely support documents for presenting
information to those responsible for decision-making (mainly the Project Board). To
conclude the plans the Project Manager or Team Manager must draw all the elements
together and provide a brief summary addressing all the salient points; this is known as
the “Plan Text”.
PROCESS
INPUT & SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
Plan Text [C]
Plus
Completed Plan For Approval [U]
Relevant Process and Approval By Project Board/Project Manager
PL7 –CompletingA Plan
Assessed Plan (Schedule)(PL6)
Draft Product Checklist (PL2)
Product Checklist [U] Project or Stage File
Figure 122: PL7 Plus Inputs and Outputs
A Plan Text describing the plan in straightforward language is created and the various
plans and analysis sheets appended to it. The Product Checklist (initially created in “IP2 –
(Identifying), Defining And Analysing Products”) is also completed by the insertion of
planned start and completion dates for each of the Products.
It is in this Process that consideration should also be given to creating a “Graphical
Summary of the Plan” which, although not a part of the stated PRINCE 2 plan package, isan invaluable aid to the Project Board and other members of senior management in
understanding what the plan is trying to achieve.
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Summary of the Planning (PL) Process
Planning is uses throughout the PRINCE 2 Method. In many ways it is unhelpful to viewplanning as a “Process” - it is essentially a “Technique” used on a day to day basis and
coming into prominence at the beginning of the project and at the end of each
Management Stage.
PROCESS
INPUT &SOURCE
PRODUCTS CREATED,UPDATED, REFERENCED OR
USED
OUTPUT TO
PL1 –Designing APlan
Project Approach (SU5) (Project File)
Project Quality Plan (IP1)(Quality File)
Project Brief (SU4) (Project File)
Or
Project Initiation Document (IP6)(Project File)
Company Planning Standards
Plan Design [C] Relevant Process
Product Breakdown Structure [C] Relevant Process
Product Descriptions [C] Identifying Activities &
Dependencies (PL3)
Relevant Process
Product Flow Diagram [C] Identifying Activities &Dependencies (PL3)
Relevant Process
PL2 –(Identifying)Defining &AnalysingProducts
Project Approach (SU5) (Project File)
Project Quality Plan (IP1)(Quality File)
Draft Product Checklist [C] Completing A Plan (PL7)
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PL3 –Identifying
Activities &Dependencies
Product Flow Diagram (PL2)
Product Descriptions (PL2)
Risk Log (Project File)
List of Activities [C]
and
Activity Dependencies [C]
Scheduling (PL5)
PL4 –Estimating
All Planning Information
Activity Estimates [C] Scheduling (PL5)
PL5 –Scheduling
List of Activities (PL3)
and
Activity Dependencies (PL3)
Activity Estimates (PL4)
Schedule [C] Scheduling (PL6)
Relevant Process
Risk Log [U]
Completing A Plan (PL7)
PL6 –AnalysingRisks
All Planning Information
Risk Log (Project
File)
Schedule (PL5)
Assessed Plan (Schedule) [U] Completing A Plan (PL7)
Plan Text [C]
Plus
Completed Plan For Approval [U]
Relevant Process and Approval By Project Board/Project Manager
PL7 –Completing APlan
Assessed Plan (Schedule)(PL6)
Draft Product Checklist (PL2)
Product Checklist [U] Project or Stage File
Figure 123: Summary of the Planning (PL) Process
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UNDERSTANDING THE
PRINCE 2 FILING
TECHNIQUE
Chapter 20
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PRINCE 2 Filing Technique - Introduction
PRINCE 2 suggests a suitable filing structure based on three different types of file:
♦ The Management File (Broken down into an overall Project File and a series of Stage
Files)
♦ The Specialist File
♦ The Quality File
Figure 124: Summary of the PRINCE 2 Suggested Filing Structure
There is no requirement in the Method to adopt the suggested filing structure -
implementing organisations are free to retain their existing standards or to modify the
suggested structure to suit their own requirements.
The Management File
This comprises the following components:
The Project File (One File for the Whole Project):
♦ The Project Organisation Structure Chart and agreed/signed-off Job Descriptions;
♦ Project-level Plans:
♦ Project-level Product Breakdown Structure;
Project FileOrganisationPlansBusiness CaseRisk LogControl DocumentsProducts Checklist
Files
Stage File(s)OrganisationPlansControl DocumentsDaily LogCorrespondenceProducts Checklist
Specialist FileConfiguration ItemsConfiguration LogCI LocationsOff-Specifications
Quality FileProduct DescriptionsQuality ChecksProject Issues
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♦ Project-level Product Flow Diagram;
♦ Timescale Plan (Project-level Gantt Plan);
♦ Project-level PERT Network;
♦ Project Resource Report;
♦ The Business Case:
♦ Business Benefits Assessment;
♦ Risk Assessment & Proposals;
♦ Risk Log;
♦ Control Documentation:
♦ the Project Initiation Document;
♦ End Project Report
♦ The Lessons Learned Report;
♦ Products Checklist;
♦ Products Status Account;
♦ Follow-On Items;
♦ Post-Project Review Plan;
♦ Project Closure Sign-off Document
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Figure125: Comprehensive View of the Project File
The Management Stage Files (one file or section for each Management Stage
of the Project):
♦ Management Stage Organisation Structure Chart and agreed/signed-off Job
Descriptions; this will relate to the Team Members.
♦ Management Stage and any lower-level Plans:
♦ Stage-level Product Breakdown Structure;
♦ Stage-level Product Descriptions (The Master Product Descriptions will be stored
in the Quality File);
♦ Stage-level Product Flow Diagram;
♦ Stage-level Timescale Plan (Gantt Plan);
♦ Stage-level PERT Network;
♦ Stage-level Resources Report;
♦ Exception Plans and associated documentation.
♦ (nb: The Stage Plans should normally be up-dated to reflect “actuals” at least
once every week)
♦ Management Stage-level Control Documentation:
♦ Copies of Work Package Authorisations;
Management File - Project File
* Project Mandate* Project Brief* Project Organisation Structure* Project Organisation Roles & Responsibilities* Project Approach* Project Board Approval For Initiation
* Baselined Project Initiation Document* Project Filing Structure Summary* Project Board Approval For The Project
* Record of End Stage Assessments* Record of Mid Stage Assessments
* Product Checklist (Project Level Products)* Highlight Reports* Exception Reports (Project)* Project End Notification
* Business Case (Initial & Updates)* Project Plan (Initial & Updates)* Risk Log
* Lessons Learned Report* Project Closure Recommendation* Post Implementation Review Plan* End Project Report
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♦ Checkpoint Reports, Highlight Reports;
♦ Exception Reports;
♦ End Stage Assessment and Mid Stage Assessment records and formal Project
Board sign-offs.
♦ Products Checklist for the Management Stage Products;
♦ Daily Log recording events, problems questions, informal discussions with Project
Board members and other senior managers and resultant actions impacting on the
Management Stage.
♦ Correspondence - management correspondence and other papers relevant to the
Management Stage.
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Figure 126: Comprehensive View of the Stage File
The Specialist File (One File for the whole Project):
♦ The Configuration Items for the project and the Configuration History (changes,
version etc); log-out and in information. Correspondence relating to a specific
Configuration Item will be associated with the item it addresses.
♦ Physical Location of each Configuration Item.
♦ A copy of the relevant Product Description for each Specialist Product may be
included for completeness. (The Master Product Descriptions will be stored in theQuality File);
♦ Specialist General Correspondence especially where a number of Configuration Items
are referred to.
Figure 127: Comprehensive View of the Specialist File
Specialist File
* Configuration Items
* Location of Configuration Items* Log of Configuration Items
* Off Specifications For Configuration Items
* Correspondence Relating To Specialist Products
Management File - Stage File
* Stage Organisation Structure* Stage Organisation Roles & Responsibilities
* Current Stage Plan* Project Board Approval For The Stage
* Work Package Authorisation (Contract)* Checkpoint Reports* Exception Reports (Stage Level)* Product Checklist (Stage Level Products)* End Stage Report
* Daily Log* Correspondence
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The Quality File (One File for the Whole Project):
• The Master Product Descriptions;
• Quality Control Documentation
• Selection Criteria for Quality Reviewers;
• Invitations to Quality Reviews;
• Error/Observations Lists;
• Follow-up Actions List;
• Reviewers’ Sign-offs for each Configuration Item will be stored either here or in the
Specialist File, associated with the relevant product.
• Project Issues;
• Project issues Log.
Figure 128: Comprehensive View of the Quality File
Physical Filing Considerations
The files themselves may take on a variety of guises from a consolidated four-post binder
for a small project to a whole room of filing cupboards for a major initiative. The Method
has no views on the physical implementation of filing arrangements.
It will often be sensible to establish an electronic filing structure to help standardise the
filing arrangements within the implementing organisation.
Quality File
* Master Product Descriptions
* Quality Review Documentation- Invitations- Error Lists- Follow-up Actions- Sign-offs/Results
* Project Issues
- Issue Log- Project Issues- Requests For Change- Off-Specifications
* Project Quality Plan
* Project Quality Plan
* Stage Quality Plan
* Quality Log
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UNDERSTANDING THE
QUALITY REVIEW
TECHNIQUE
Chapter 21
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PRINCE 2 Quality Review Technique - Introduction
In PRINCE projects, quality is controlled through a number of quality management
procedures and techniques. Used correctly, in appropriate circumstances and in
conjunction with Product Descriptions (see the Product-Based Planning Technique), the
Quality Review is one of the most powerful of the techniques used within the Method.
Quality within PRINCE 2 is embedded within each of the Components, Processes and
Techniques; it is not perceived as something separate that can be applied after a Product
or Deliverable has been produced, or even at isolated points during the product cycle.
Quality Assurance and Quality Control
It is well worth viewing the concepts of Quality Assurance and Quality Control as
different, but mutually supportive, Quality Assurance will normally be present in the
form of a published and defined Quality Management System, often implemented against
the BS/EN/ISO9001 standard.
A Quality Management System (QMS) provides the all important backdrop to managing
quality throughout the whole organisation and provides an environment of confidence forstaff and customers alike. This confidence manifests itself in a considered, professional
approach to all tasks undertaken by all personnel - ensuring that the primary objective of
the control functions - the Quality Review Technique, for example - is to confirm that all
project deliverables meet their stated Quality Criteria (contained within the appropriateProduct Description) rather than to identify perceived deficiencies and mistakes.
Some organisations may find they are at odds with this approach, having spent many
years using quality control techniques to pick up faults and planning re-work of
deliverables as an inevitable outcome of the quality checks. But it does not have to be
like this - given a sensibly written set of quality procedures, published in the form of a
Quality Management System, reflecting the principles of BS/EN/ISO9001 and regularly
audited by internal and external auditors, any organisation can enjoy a quality
environment, where “getting it right first time” is the watchword for all staff.
What is a Quality Review?
PRINCE 2 describes a Quality Review as “an involved partnership designed to ensure a
Product’s completeness and adherence to standards by a review procedure”. In essence a
Quality Review is a review of a Product with the emphasis on checking for errors and
omissions, and non-compliance with the stated Quality Criteria. The PRINCE 2 Quality
Review has a clear and defined structure which when followed will produce the required
results.
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Quality Reviews - Formal and Informal
Quality Reviews can be either formal, for example a scheduled meeting, or informal. The
selection of the type of quality control is the responsibility of the Project Manager,
endorsed by the Project Board at the Project Initiation or End Stage Assessment meetings.
The Project Manager will consider the relative importance of each project deliverable in
reaching a final decision on whether to recommend a formal or informal Quality Review
but whatever the decision, the objective is the same - to confirm that the product or
deliverable under review conforms to its stated and agreed Quality Criteria.
An informal Quality Review may take many forms. A simple test or visual inspection to
check out the Product may be both sensible and acceptable. A "desk-check" may be
carried out. This might be performed by the author's line manager, or could be carried outby an expert Reviewer either within or outside the project, site or organisation. In many
cases a physical test of the deliverable will be the obvious way to assure compliance withthe Quality Criteria. In all circumstances, the documentation must be produced to record
the review and to provide the essential “audit trail”.
People Involved
Those involved in the Quality Review process are:
♦ The Producer: who is usually the creator/ author of the Product being reviewed .
♦ The Review Chair: who may be the Producer’s line manager, the Project Manager,
or any other competent person with authority (or perceived authority).
♦ The Reviewers: who must be competent to assess the Product from their particular
specialist viewpoints .
♦ The Scribe: who will take notes of the agreed actions arising from the review.
♦ Project Support: providing administrative support for the Quality Review technique;this will typically include arranging the venue, sending out invitations and providing
the scribe role, taking note of the follow-up actions during the meeting.
♦ Project Assurance and Quality Assurance: assuring the effective use of the Quality
Management System and the techniques associated with it, and monitoring
appropriate use of organisational, industry and ethical standards on behalf of the
Project Board and senior managers .
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The Quality Review Steps
Detailed procedures for carrying out a Quality Review will normally be specified by the
organisation’s own Quality Management System, but where such a system is not
published, the following arrangements will be found to work successfully.
Step 1 - Preparation
The objective of this step is to examine the Product or Deliverable under review against
its Product Description and to create a list of queries, possible errors, and topics that
warrant re-examination.
♦ The Chair will check with the Producer that the product will be ready on time and
ensure that the team of Reviewers is agreed and that they will all be available.
♦ An invitation to the Quality Review, indicating the Product, time and place for the
review is sent with copies of the Product and the Product Description. Any specific
Standards used in the production of the Product would normally be available to all
project personnel - if not a copy of the relevant Standard used to produce the
deliverable should be attached. This should dispatched between one and five days
before the review.
♦ Each Reviewer will study the product and supporting documents (including the
Quality Criteria included in the Product Description), and will complete a Quality
Review Error List.
♦ The QR Error List will, wherever possible, be sent to the Producer before the review.
Figure 129: Formal Quality Review Step 1
Product Description
Finished Product
Error Lists
Producer of the Product Reviewers of the Product
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Step 2 - The Review Meeting
The objective of the Quality Review is to agree a list of queries, observations and errors
in the Product. The Chair and the Producer do not have to reconcile these errors at the
meeting - it is sufficient for the QR Chairman and Reviewers to agree that a particular area
needs re-examination. Provided that the point and follow-up action is logged, theReviewers have an opportunity to confirm that action has been taken, after the review
meeting.
The procedure for the PRINCE Quality Review step is:
♦ The Quality Review Chair opens the meeting and introduces those present if
necessary. The meeting Objectives and Timing (a maximum of 2 hours is
recommended) is announced.
♦ The Chair asks each Reviewer for comments. The purpose of this is to identify the
main areas for discussion that the review must focus upon. It also affords an
opportunity for an overall reaction to the total Product and to consider premature
closure of the meeting if appropriate.
♦ The Producer then "Walks-through" the Product in detail. This may be
sentence-by-sentence or page-by-page and will be determined by the Reviewers' QR
Error Lists already sent to the Producer, and by their general comments made earlier.
♦ The QR Chair controls the discussion during the Walk-through ensuring that no
arguments or solutions are discussed (other than obvious and immediately accepted
solutions!). Follow-up Actions are noted on the QR Follow-Up Action List by either
the Scribe or Project Support. No minutes need be taken of the review. Reviewers’
comments are always related to the Quality Criteria contained in the Product
Description - these are the measures used by all involved to determine the
acceptability, or otherwise, of the Product under review.
♦ At the conclusion of the walk-through, the Chair summarises the Follow-up actions
and determines responsibility for sign-off of specific points if required. The initials of
the Reviewer who will sign-off any specific point is recorded on the QR Follow-Up
Action Sheet.
♦ The Chair, after seeking the Reviewers' and Producers' opinions, will decide on the
outcome of the review. A QR Result Notification will be completed and a copy of the
Follow-Up Action List attached. These forms will be sent to Project Support (or the
Project Manager) and/or Team Manager for the plans to be up-dated.
♦ The Reviewers' Error Lists, copies of the Product (typically containing the Reviewer's
annotations) and any other relevant documentation is collected by the Chair and
passed to the Producer to assist in the Follow-up.
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Figure 130: Formal Quality Review Step 2
Step 3 - Follow-up of Review Meeting
The objective of the Follow-up step is to ensure that all items identified on the QR
Follow-Up Action List are dealt with and signed off.
♦ The Producer takes the list away from the review and evaluates, discusses, and corrects, if necessary, all the items on the list.
♦ When an error has been fixed, the Producer will obtain sign-off from whoever is
nominated on the QR Follow-Up Action List. This person may be the Reviewer who
raised the query initially, or may be another Reviewer, the Project Manager, Team
Manager, or the Quality Review Chair.
♦ When all errors have been reconciled and sign-off obtained, the Quality Review Chair
will raise a QR Review Result Notification confirming that the Product is "Complete"
and will attach the signed QR Follow-Up Action List. The documents will be sent to
Project Support (or the Project Manager or Team Manager) to up-date plans.
Error Lists
Chair-person
Follow-Up Actions
Sign-off
Quality Reviewed Product
Quality Review Meeting
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Product Description
Finished Product
Error Lists
Producer of the Product Reviewers of the Product
Chair-person
Follow-Up Actions
Sign-off
Quality Reviewed Product
Quality Review Meeting
Figure 131: Formal Quality Review Step 3
Summary of the Quality Review Technique
The Quality Review technique is a structured way of running a meeting to ensure that all
aspects are properly covered. It needs to be used with common-sense (to avoid the
dangers of an over-bureaucratic approach) but with an intent to follow the procedures laid
down (to ensure nothing is missed).
If an organisation already uses existing effective standards for quality reviewing products,
it will not be necessary to change these to reflect the PRINCE 2 Quality Review
procedures. PRINCE 2 emphasises the need to ensure that all Products pass through a
quality control process (as laid down in the Product Description); this ensures that only"reviewed - correct - products" are regarded as being complete. The PRINCE 2 Manual
contains a fairly detailed step-by-step summary of the Quality Review Technique which
should be consulted and modified to suit the required procedure within the implementingorganisation.
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Ken Bradley’s
Understanding PRINCE 2
Index
Chapter 22
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Index
A
Acceptance Criteria · 155, 164, 202, 238
Accepting A Work Package · 144, 217 Accountability · 33, 36, 61, 74
Activities · 77, 81, 82, 88, 89, 130
Activity · 38, 77, 91
Actuals · 29, 200, 204, 218, 249, 263
Analysing Risks · 145, 255
Appointing A Project Management Team ·
144
Assembling A Project Initiation Document ·
144
Assessing Progress · 144, 200, 204, 218
Authorised Work Package · 91, 124, 125
Authorising A Project · 108, 144, 184 Authorising A Work Package · 144, 199, 209
Authorising Initiation · 144, 154, 183
B
Baseline · 44, 96, 164
Benefits · 25, 26, 44, 45, 58, 61, 88, 89, 96,163, 224
Benefits Statement · 88boundary · 27, 70, 71
BS/EN/ISO9000 · 42, 60, 123, 269
BS/EN/ISO9001 · 42, 123
BS6079 · 42, 123
Business Benefits · 29, 49, 50, 88, 108, 113,
135, 168, 227, 241, 262
Business Case · 26, 45, 88, 89, 96
Business Case · 60, 87, 88, 113, 154, 163,
223, 224, 262
C
CCTA · 2, 3, 17, 19, 20, 21, 53, 113, 253
Change Controls · 52
Checkpoint · 264
Closing A Project · 29, 30, 31, 47, 102, 141,144, 187, 189, 237, 242
CMM · 52, 129, 130
Communication · 25, 57, 67, 68, 69
Completed Work Packages · 125
Completing A Plan · 145, 256
Components · 17
Components · 28, 30, 31, 32, 54, 143, 247,269
Concurrent Engineering · 72, 73
Configuration · 26, 31, 40, 43, 52, 53, 65, 74,
125, 129, 130, 131, 135, 136, 202, 218,
265, 266
Configuration Librarian · 135
Configuration Management · 40, 43, 52, 74,
129, 130
Confirming Project Closure · 144, 155, 189
Context Diagram · 145, 146
Control · 17, 25, 26, 34, 39, 42, 43, 44, 45,
51, 57, 61, 62, 64, 72, 74, 77, 84, 89, 90,
94, 96, 124, 129, 130, 135, 136, 137, 182,
216, 224, 247, 248, 269, 270
Controlling A Stage · 29, 30, 31, 125, 141,144, 157, 197, 210, 212, 218, 249
Controls · 44, 50, 52, 94
Critical Path · 19, 81
Customer’s Quality Expectations · 165
D
decision points · 27, 181
Decision-support · 224, 237
Decommissioning A Project · 144, 155, 164,
239
Defining Project Approach · 144 Deliverables · 25, 26, 27, 36, 38, 39, 40, 47,
60, 102, 146, 223, 237, 238, 247, 248
Delivering A Work Package · 144, 219 Dependencies · 27, 247
Designing A Plan · 145, 249
Designing A Project Management Team · 144
Directing A Project · 29, 30, 31, 58, 141,
144, 157, 177, 181, 191, 193
E
Earned Value · 86, 87, 90
End-Stage Assessment · 43, 64
Enhancement · 17, 19
ESA · 45, 64, 96, 264
Escalating Project Issues · 203
Estimating · 38, 65, 249, 253, 254
Estimating · 38, 145, 253
Evaluating A Project · 144, 242 Exception · 38, 182, 224, 263, 264
Exception Plan · 44, 45, 98, 144, 182, 185,
186, 187, 208, 231
Exception Report · 44, 45, 98, 186, 187, 203,
208, 231
Executing A Work Package · 144, 218 Executive · 30, 34, 59, 61, 71, 74, 89, 144,
152, 153, 156, 183
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External Assurance · 36, 60, 61
F
Feasibility · 88
Feasibility Study · 88
Filing · 32, 53, 65, 129, 171, 172, 261, 266
Follow-on Actions · 48, 102, 144, 238, 241
Formal Quality Review · 51, 65, 271, 273,
274
G
Gantt · 40, 41, 42, 43, 77, 82, 83, 84, 90, 91,
124, 262, 263Giving Ad-Hoc Direction · 144, 188
Government Departments · 17
Graphical Summary · 85, 86, 87, 90, 256
H
Highlight Report · 62, 63, 68, 69, 182, 264
Highlight Reports · 30, 48, 73, 102, 188
Hints and Tips · 33, 146
I
Identifying Activities And Dependencies ·
145, 252
Identifying, Defining And Analysing Products
· 145, 250
Initiating A Project · 27, 29, 30, 31, 42, 44,
47, 50, 96, 102, 108, 124, 125, 141, 157,
158, 163, 164, 166, 173, 175, 176, 184
Internal Assurance · 36, 60, 61
Issues · 52, 129, 136, 137, 198, 266 Issues Log · 48, 102, 202, 203, 204
L
Lessons learned · 242 Lessons Learned · 47, 102, 224, 238, 242,
262
Lessons Learned Report · 47, 102, 262
Levels of plan · 249
Lifecycle · 18
M
Maintenance · 17
management · 17, 19, 20, 25, 26, 27, 32, 33,34, 35, 37, 38, 39, 42, 44, 45, 46, 47, 57,
62, 64, 65, 67, 68, 69, 70, 72, 74, 81, 88,
94, 96, 99, 102, 113, 123, 130, 135, 141,
145, 146, 176, 182, 197, 216, 264, 269
Management Products · 64, 65, 78
Management Stage · 26, 29, 30, 38, 42, 45,47, 48, 49, 50, 62, 80, 86, 89, 90, 98, 100,102, 104, 108, 109, 110, 124, 125, 141,
155, 157, 163, 166, 167, 168, 174, 184,
185, 186, 197, 198, 199, 200, 201, 203,
204, 205, 208, 209, 217, 218, 220, 225,
226, 227, 228, 229, 230, 231, 250, 251,
252, 257, 263, 264
Management Stages · 26, 28, 30, 31, 32, 35,
48, 49, 64, 103, 104, 107, 108, 109, 110,
164, 169, 232
Managing Product Delivery · 29, 30, 31, 91,
107, 125, 141, 157, 200, 215, 220
Managing Stage Boundaries · 29, 30, 31,108, 115, 141, 157, 166, 167, 168, 174,
184, 186, 199, 223, 232, 233
Manuals · 59
Mid Stage Assessment · 45, 98, 169, 186,
231, 264
Milestone · 87, 251
O
Objectives · 44, 94, 237
Off-Specification · 135, 136, 137, 202
Operation · 18, 131Organisation · 26, 32, 33, 34, 35, 36, 37, 39,
44, 48, 51, 57, 58, 59, 60, 65, 67, 68, 69,
70, 71, 72, 74, 76, 88, 96, 102, 114, 116,
124, 125, 135, 141, 146, 165, 170, 181,197, 199, 200, 209, 217, 218, 224, 238,
242, 247, 266, 269, 270, 271, 274
Organisation · 17, 20, 25, 33, 238, 261, 263
Ownership · 58
P
PERT · 40, 81, 82, 90, 254, 262, 263PID · 44, 50, 96, 115, 155, 157, 163, 164,
173, 174, 177, 182, 183, 184
Plan · 26, 38, 40, 41, 42, 43, 44, 61, 62, 71,
72, 76, 77, 83, 85, 87, 89, 90, 94, 182, 198,
224, 238, 247
Plan Description · 87, 89, 90
Plan Text · 89, 90, 248, 256
Planning · 19, 20, 27, 30, 31, 35, 38, 39, 40,41, 42, 43, 44, 50, 53, 62, 65, 72, 74, 76,
77, 78, 83, 84, 88, 89, 94, 108, 109, 110,
124, 125, 151, 153, 157, 164, 165, 166,
200, 228, 247, 248, 249, 250, 255, 257,
269Planning · 17, 19, 25, 29, 30, 31, 32, 38, 40,
41, 42, 43, 50, 76, 124, 141, 144, 145, 157,
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165, 166, 174, 187, 225, 247, 250, 254,
257, 258, 269
Planning A Project · 141
Planning An Initiation Stage · 144Planning levels · 76 Plans · 76, 77, 89, 91
Post Project Review · 29, 30, 177, 189, 241,
242
Preparing A Project Brief · 144
PRINCE · 15, 17, 19, 20, 25, 26, 27, 28, 32,
33, 34, 36, 37, 38, 39, 40, 42, 44, 47, 51,
52, 53, 54, 57, 58, 59, 60, 61, 63, 64, 65,
67, 69, 71, 72, 74, 76, 77, 79, 89, 90, 91,
94, 102, 113, 123, 129, 130, 135, 136, 137,
141, 145, 146, 216, 247, 261, 269, 272,
274
PRINCE 2 · 1, 14, 20, 21, 26, 27, 28, 29, 30,31, 32, 34, 36, 37, 38, 41, 42, 43, 47, 48,
49, 50, 53, 54, 57, 58, 61, 64, 65, 66, 69,
72, 74, 76, 77, 79, 84, 85, 86, 87, 91, 99,
103, 107, 108, 109, 110, 123, 124, 129,
137, 139, 141, 142, 143, 145, 146, 151,
152, 153, 155, 158, 164, 165, 166, 168,
169, 170, 171, 172, 173, 174, 177, 202,
210, 220, 227, 228, 231, 232, 248, 249,
253, 256, 257, 259, 261, 269, 274
PRINCE Environment · 20, 53
Process Models · 145, 146 Process-based · 33
Processes · 26, 27, 57, 125, 130, 141, 157 Processes · 26, 27, 28, 29, 30, 31, 32, 35, 44,
54, 65, 96, 141, 143, 144, 145, 146, 157,
163, 166, 181, 188, 247, 269
Product Breakdown Structure · 40, 78, 80,
90, 261, 263
Product Description · 32, 40, 42, 50, 51, 63,
78, 79, 80, 124, 125, 165, 217, 250, 265,
269, 271, 272, 274
Product Flow Diagram · 32, 40, 80, 81, 90,
250, 252, 262, 263Product Flow Diagrams · 249
Products · 20, 26, 34, 35, 38, 40, 43, 49, 50,
52, 61, 62, 80, 125, 129, 131, 135, 186,
274
Products · 25, 26, 27, 36, 38, 39, 40, 43, 47,
52, 59, 60, 63, 64, 65, 72, 74, 77, 78, 80,
81, 84, 86, 90, 91, 102, 124, 129, 130, 131,
135, 146, 197, 215, 216, 223, 237, 238,
247, 248, 262, 264. See Outputs
Programme · 57, 62, 69, 70, 71, 72, 81
Programme of work · 48, 103Project Approach · 152, 156, 171
Project Assurance · 35, 36, 60, 61, 64, 68,
70, 73, 74, 137, 225, 270
Project Assurance Team · 270
Project Board · 30, 31, 32, 33, 34, 35, 36, 37,
39, 41, 43, 44, 45, 46, 47, 48, 50, 58, 59,
60, 61, 62, 63, 64, 65, 67, 68, 70, 71, 72,
73, 74, 82, 83, 84, 85, 86, 87, 89, 90, 94,
96, 98, 99, 100, 102, 103, 107, 108, 110,
113, 114, 124, 131, 136, 141, 144, 146,151, 152, 153, 154, 156, 157, 164, 166,167, 168, 169, 171, 174, 175, 176, 177,
181, 182, 183, 184, 185, 186, 187, 188,
189, 190, 197, 198, 199, 200, 201, 203,
204, 205, 206, 207, 208, 216, 217, 223,
224, 225, 226, 227, 228, 229, 230, 231,
237, 238, 240, 242, 243, 249, 250, 254,
256, 264, 270
Project Brief · 31, 124, 152, 154, 155, 156,
165, 168, 171
Project Closure · 47, 102, 181, 182
Project Files · 64
Project Initiation · 19, 43, 44, 53, 61, 87, 94,96, 113, 163, 164, 182, 237, 238, 248, 262,
270
Project Issue Report · 129, 135, 136
Project issues · 239, 266
Project Issues · 32, 48, 102, 129, 135, 136,
137, 144, 200, 202, 203, 208, 241
Project Management Team · 29, 30, 58, 74,
78, 151, 152, 153, 166, 171, 174, 175, 198,
202, 207, 225, 228, 230, 250, 254
Project Manager · 19, 29, 30, 32, 35, 36, 37,
39, 43, 45, 47, 48, 49, 50, 52, 53, 61, 62,63, 64, 68, 69, 70, 71, 72, 73, 74, 78, 83,
87, 88, 91, 98, 100, 102, 104, 107, 109,110, 113, 117, 124, 125, 131, 135, 136,
141, 144, 146, 152, 153, 166, 169, 170,
174, 181, 182, 184, 186, 188, 190, 197,
198, 199, 200, 201, 203, 204, 207, 208,
210, 215, 216, 217, 218, 224, 225, 226,
230, 231, 240, 242, 250, 252, 256, 270,
272, 273
Project Mandate · 88, 151
Project plans · 26, 71, 85
Project Support · 36, 37, 53, 60, 61, 63, 64,65, 69, 71, 72, 74, 131, 135, 137, 270, 272,
273
PROMPT · 17, 18, 19, 20
Public Domain · 25
Q
QMS · See Quality Management System
Quality · 17, 19, 26, 36, 38, 40, 42, 50, 51,
60, 61, 63, 65, 70, 73, 78, 79, 87, 90, 102,
125, 135, 197, 215, 216, 223, 237, 261,
263, 265, 266, 269, 270, 271, 272, 274
Quality assurance · 17, 274
Quality criteria · 35, 43, 50, 51
Quality Criteria · 31, 32, 51, 124, 125, 165,217, 230, 269, 270
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Quality Management · 19, 26, 42, 50, 73,
119, 120, 123, 124, 125, 165, 242, 269,
270, 271
Quality Management System · 42, 73, 125,269, 270, 271
Quality Review Technique · 32, 124, 269,
274
Quality Reviews · 90, 266, 270
R
Rapid Application Development · 72, 73
Receiving A Completed Work Package · 144,
209
Refining The Business Case and Risks · 144
Reporting Highlights · 144, 205 Reporting Stage End · 144, 229
Request for Change · 135, 136, 137
Request For Change · 136, 202
Resource · 17, 82, 83, 84, 85, 90
Resource Plan · 40, 42, 84, 85, 90, 254
Resources · 82, 83 Resources Report · 41, 42, 85, 263
responsibilities · 26, 33, 36, 58, 62, 63, 64
Review · 136, 271, 272, 273
Reviewing Stage Status · 144, 200, 204, 205,
207
Risk · 31, 36, 41, 43, 62, 69, 72, 87, 88, 89,
110, 113, 114, 115, 117, 163, 168, 169,183, 206, 223, 228, 231, 249, 255
Risk Assessment · 65, 87, 88, 113, 115, 262
Risk Factor · 115, 117, 120
Risks · 26, 27, 44, 45, 83, 87, 89, 90, 96, 113,163, 224
Risks · 29, 49, 50, 60, 168, 248, 255
Role descriptions · 58
Roles · 33, 34, 36, 58, 59, 61
S
Scheduling · 145, 254Scoping Diagram · 27
Senior User · 59, 71, 136
Setting Up Project Controls · 144, 169
Setting Up Project Files · 144
Significant deviation · 45, 98, 186
Smaller projects · 59
Software · 20, 65, 72, 76, 77, 83, 84, 90, 247
Software support tool · 41, 78, 254Software tools · 249
specialist · 25, 33, 34, 35, 36, 38, 39, 58, 59,
62, 64, 65, 67, 69, 90, 91, 109, 130, 135,
216, 270
SPOCE · 113
Stage · 18, 26, 27, 36, 38, 39, 40, 42, 43, 44,
45, 46, 47, 50, 61, 62, 63, 77, 84, 85, 86,
89, 90, 96, 99, 102, 125, 137, 164, 223,224, 264
Stage Manager · 83, 136
Stages · 18, 26, 27, 33, 64, 72, 89, 181, 224,
247
Stages · 18, 31, 35, 48, 49, 64, 103, 104, 107,
109, 223, 230
Starting A Project · 44, 96, 141, 151
Starting Up A Project (SU) · 124
Strategic Planning · 17
Supplier · 34, 57, 58, 59, 65, 67, 69, 71, 215,
216
System Development · 17
T
Taking Corrective Action · 144, 205, 207
Team Leader · 36
Team Manager · 35, 36, 62, 63, 64, 69, 72,74, 78, 83, 136
Team Managers · 35, 61, 62, 64, 72, 74
Team Plan · 91, 252
Teams · 36, 37
Technical · 18, 31, 35, 47, 48, 49, 61, 64, 84,
90, 99, 103, 104, 107, 109, 130, 271
Techniques · 26, 33, 38, 39, 57, 65, 113, 125,129, 143, 247, 253, 254, 269, 270
Techniques · 28, 32, 38, 51, 54, 129, 143,
145, 247
Terms of Reference · 44, 94, 154Tolerance · 30, 43, 46, 47, 99, 100, 169, 182,
186, 198, 203, 204, 207, 208, 224, 231
Transformation · 252
U
UK Government · 17, 20
Updating A Project Business Case · 144, 227 Updating A Project Plan · 144, 226
Updating The Risk Log · 144, 227, 228
User · 20, 34, 89, 135, 137
User/Customer Group · 71
W
Walk-through · 51, 272
Work Package · 263
Work Packages · 109, 125, 197, 199, 209,
218