Prince2 Notes
Prince2 Notes
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Business Case
In the beginning, someone has an idea or a need. This may result from new business objectives, responding to
competitive pressures, changes in legislation, or a recommendation in a report or an audit. The trigger for the project
could be almost anything. In PRINCE2, this trigger is called a project mandate. The project mandate is provided by the
commissioning organization (corporate or programme management) and can vary in form from a verbal instruction to a
well-defined and justified project definition.
Organization Theme
Quality Theme
Plans Theme
Risk Theme
Change Theme
6 Tolerance areas by level
Progress Theme
Responsiblities
The Executive is responsible for ensuring that those benefits specified by the Senior User(s) represent value for money,
are aligned to corporate objectives, and are capable of being realized.
A Stage Plan is required for each management stage. The Stage Plan is similar to the Project Plan in content, but each
element will be broken down to the level of detail required to be an adequate basis for day-to-day control by the Project
Manager. Each Stage Plan for the next management stage is produced near the end of the current management stage.
………………………………………….
Appoint Executive and the Project Manager
Capture previous lessons
Design and appoint the project management team
Daily Log
Used to record problems/concerns that can be handled by the Project Manager informally.
Project management team structure
An organization chart showing the people assigned to the project management team roles to be used, and
their delegation and reporting relationships.
Highlight Report: The Project Manager produces this report on management stage progress for the
Project Board. The Project
Board will determine the frequency of Highlight Reports required. The Highlight Report should confirm that
progress is being made within these tolerances and provide early warning of possible problems which may
need actions.
Exception Report:
A description of the exception situation, its impact, options, recommendation and impact of the
recommendation. This report is prepared by the Project Manager for the Project Board.
The threshold levels of risk exposure which, when exceeded, will trigger an Exception Report to bring the
situation to the attention of the Project Board.
Authorize project closure
Below you will find a diagram and subsequent explanation of the PRINCE2 processes to
help guide you when managing projects with PRINCE2. Leading accredited training
organisation ILX Group also provide a free comprehensive PRINCE2 process model poster
available for you to download and use as a quick reference on your desk or wall!
See the PRINCE2 download centre for many more useful PRINCE2 resources, available for
free from ILX Group.
If you require PRINCE2 training there are two PRINCE2 qualification levels you can get
accredited for: PRINCE2 Foundation and PRINCE2 Practitioner.
PRINCE2 Foundation level is for those with a requirement to learn the basics and
terminology of PRINCE2. A PRINCE2 Foundation qualification can be reached with ILX's
renowned PRINCE2 Foundation online learning . If you don't wish to enter the classroom
you can purchase PRINCE2 Practitioner Plus which combines both Foundation and
Practitioner online learning.
Directing a Project
Directing a Project runs from the start-up of the project until its closure. This process is
aimed at the Project Board. The Project Board manages and monitors via reports and
controls through a number of decision points.
The key processes for the Project Board break into four main areas:
Starting up a Project
This is the first process in PRINCE2. It is a pre-project process, designed to ensure that
the pre-requisites for initiating the project are in place.
The process expects the existence of a Project Mandate which defines in high level terms
the reason for the project and what outcome is sought. Starting up a Project should be
very short.
The work of the process is built around the production of three elements:
Ensuring that the information required for the project team is available
Designing and appointing the Project Management Team
Creating the Initiation Stage Plan.
Initiating a Project
Agree whether or not there is sufficient justification to proceed with the project
Establish a stable management basis on which to proceed
Document and confirm that an acceptable Business Case exists for the project
Ensure a firm and accepted Foundation to the project prior to commencement of
the work
Agree to the commitment of resources for the first stage of the project
Enable and encourage the Project Board to take ownership of the project
Provide the baseline for the decision-making processes required during the
project's life
Ensure that the investment of time and effort required by the project is made
wisely, taking account of the risks to the project.
This process provides the Project Board with key decision points on whether to continue
with the project or not.
Controlling a Stage
This process describes the monitoring and control activities of the Project Manager
involved in ensuring that a stage stays on course and reacts to unexpected events. The
process forms the core of the Project Manager's effort on the project, being the process
which handles day-to-day management of the project.
This process covers these activities, together with the on-going work of risk management
and change control.
The objective of this process is to ensure that planned products are created and
delivered by:
Closing a Project
The purpose of this process is to execute a controlled close to the project. The process
covers the Project Manager's work to wrap up the project either at its end or at
premature close. Most of the work is to prepare input to the Project Board to obtain its
confirmation that the project may close.
The objectives of Closing a Project are therefore to:
Check the extent to which the objectives or aims set out in the Project Initiation
Document (PID) have been met
Confirm the extent of the fulfilment of the Project Initiation Document (PID) and the
Customer's satisfaction with the deliverables
Obtain formal acceptance of the deliverables
Ensure to what extent all expected products have been handed over and accepted
by the Customer
Confirm that maintenance and operation arrangements are in place (where
appropriate)
Make any recommendations for follow-on actions
Capture lessons resulting from the project and complete the Lessons Learned
Report
Prepare an End Project Report
Notify the host organisation of the intention to disband the project organisation
and resources.
Planning
PRINCE2 recommends three levels of plan to reflect the needs of the different
management levels involved in the project, stage and team.
Planning is a repeatable process and its activities are included within the seven main
PRINCE2 processes, as appropriate. Information about plans and how to plan can be
found in the Plans Theme section of the PRINCE2 Manual.
PRINCE2 uses a technique known as ‘Product based planning’ which requires four
activities :-
These four activities are performed within the ‘Define and analyse the products’ activity
above.
1. Which role is responsible for providing the customer’s quality expectations?
A. Executive
B. Senior User
C. Project Manager
D. Senior Supplier
2. Which of the following is not included in the Quality Register?
A. Quality criteria
B. Quality check method
C. Quality responsibilities
D. Planned quality check date
3. Which process is triggered by a request to authorize a stage?
A. Starting up a Project
B. Directing a Project
C. Managing a Stage Boundary
D. Managing Product Delivery
4. Which is a purpose of the Risk Register?
A. To define the procedures for risk management
B. To define the scales to be used for assessing a risk
C. To act as a repository for all risks
D. To document the risk budget
5. Which describes a change budget?
A. Funds set aside to accommodate estimate shortfalls
B. Money to fund responses to known risks
C. Funds that can be used for expanding the project scope
D. Is a budget used for the development of products
6. Which of the following is not part of the Benefits Management Approach?
A. Scope of benefits to be reviewed
B. Risks to each benefit
C. How benefits are to be reviewed
D. Who will review the benefits
7. Which of the following is the PRINCE2 definition for a project?
A. A series of activities to deliver an output
B. A structure established for the management and control of a temporary and unique
initiative
C. A temporary organization created for the purpose of delivering one or more business
products
D. A series of routine activities required for day to day control
8. Which of the following roles can the Project Manager also perform?
A. Project Assurance and Team Manager
B. Team Manager and Project Support
C. Team Manager and Senior Supplier
D. Project Executive and Senior User
9. What is an objective of Starting up a Project process?
A. To ensure the work required for initiation is planned
B. To establish a management and control structure for the delivery of the project’s
products
C. To ensure the project is fully justified before work can commence on the specialist
products
D. To assess achievement of objectives
10. To whom should the Team Manager report an exception situation?
A. Project Board
B. Project Manager
C. Project Assurance
D. Corporate management
Quiz
1. Each project has a trigger. What do we call this trigger in PRINCE2?
2. What topics are usually covered in the trigger?
3. What’s the name of the highest role in the project, who is responsible for
the return of investment?
4. What are the two main outputs of starting up a project? What topics are
covered in them?
5. What’s the first Project Board decision about?
Show Answers
1. Project mandate
2. Project mandate contains very high-level information about the purpose of
the project, as well as its scope, quality, cost, and benefits. Remember that
it’s a very simple document.
3. Executive
4. One is the Project Brief, which covers general information about the project
(reasons, scope, quality, cost, benefits, and team structure), and the other
is our plan for the next stage.
5. Check the Project Brief to see if it’s a good idea to proceed with this project.
6.