17spm_L18
PRINCE2
SPM 2017 © Ron Poet Lecture 18 1
Introduction
PRINCE2
� Projects in Controlled Environments.
� A project management methodology
o IT Projects
o Construction Projects
o . . .o . . .
� Launched in 1996
o Prince used earlier
� PRINCE2 2009
o Most recent edition.
� 2014: Accredited by the Cabinet Office and Capita
o There are PRINCE2 exams!
SPM 2017 © Ron Poet Lecture 18 2
Six Objectives: Quality
� We need to provide measurable estimates for the six objectives.
� Quality
o The deliverable is called the project product.
� Customers generate the customer’s quality expectations� Customers generate the customer’s quality expectations
o Often relatively vague.
� Must be turned into acceptance criteria, which are measurable, as
soon as possible.
� Key document is the Project Product Description, part of the
Business Case.
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Objective: Cost, Benefits, Time
� Cost
o Project manager is not the subject matter expert and so must get
cost estimates from suppliers as soon as possible
o Part of the Business Case.
� Benefits
o What will the sponsors get from the project.
o Usually expressed in financial terms.
o Sometimes hard to measure but real.
� Time
o This is the elapsed time.
o Get from suppliers and recorded in the Business Case.
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Objectives: Scope, Risk
� Scope
o What the project will and will not do.
� Risk
o Identify major risks as early as possible.o Identify major risks as early as possible.
SPM 2017 © Ron Poet Lecture 18 5
Quality – Cost – Time Triangle
� Quality – Cost – Time Triangle.
o Only two of these are independent, the other variable can be
derived from them. An equation.
o The project is in equilibrium if the other variable is correctly
specified. Is the equation true?specified. Is the equation true?
o Will need to negotiate to make sure of equilibrium.
o No one benefits from an underfunded project that has to be
delivered too soon. It will fail, damaging everyone.
� Ongoing Validity of the Business Case
o Keep checking that is still in equilibrium.
SPM 2017 © Ron Poet Lecture 18 6
The Seven Principles
� Continued business justification
� Defined roles and responsibilities
� Manage by exception
� Manage by stages
� Focus on products� Focus on products
� Learn by experience
� Tailor to the project environment
o Filling out all the PRINCE2 forms is overly bureaucratic.
o Tailoring means deciding which forms don’t need to be filled out.
o Tailor to the project, depending on size.
SPM 2017 © Ron Poet Lecture 18 7
The Seven Themes
� Business Case (BC)
� Organisation (ORG)
� Quality (QUAL)
� Plans (PLS)
� Risk (RISK)� Risk (RISK)
� Change (CHGE)
� Progress (PROG)
� Abbreviations can’t be more than 4 letters long!
SPM 2017 © Ron Poet Lecture 18 8
The Seven Processes
� Starting up a Project (SU)
� Initiating a Project (IP)
� Managing a Product Delivery (MP)
� Controlling a Stage (CS)
� Managing a Stage Boundary (SB)� Managing a Stage Boundary (SB)
� Closing a Project (CP)
� Directing a Project (DP)
SPM 2017 © Ron Poet Lecture 18 9
Products
� Management Products
o Documents with specific PRINCE2 form and structure.
o Defined in detail: purpose, composition.
o Business Case, plans, progress reports, logs, registers.
� Specialised Products
o Unique to the particular project.
o Can be documents.
o Can be buildings etc.
SPM 2017 © Ron Poet Lecture 18 10
Project Management Hierarchy
� Corporate Management
o Sponsor the project, along with many others.
� Project Board
o The Executive represents the business interests and makes sure it
delivers value for money.delivers value for money.
o The Senior Users who define the requirements and check the
products to make sure they satisfy the requirements.
o The Senior Suppliers who create the project products.
� Project Manager
o Day to day control of the project.
� Team Manager
o Manages a small team.
SPM 2017 © Ron Poet Lecture 18 11
Manage By Exception
� Only meet with higher levels of management if something is wrong (an
exception).
� Otherwise just send progress reports.
� EG Project Board to Project Manager� EG Project Board to Project Manager
o You have £200k +- £5k and 4 months +- 1 week. We only need to
meet if you are going to be outside the permitted range.
� Changes, such as the loss of a key person, and reviews of the business
case can also lead to exceptions.
SPM 2017 © Ron Poet Lecture 18 12
Manage By Stages
� The project is split into stages, which do not need to be the same
length.
� Progress is reviewed by the Project Board at the end of each stage.
� Stages are typically:� Stages are typically:
o Pre-project: A very simple business case, is it worth doing.
o Initiation
o Design
o Build
o Install and Train Staff
� The number and type of stages are not fixed in PRINCE2.
o Other stages can be used.
SPM 2017 © Ron Poet Lecture 18 13
Starting Up A Project
� Corporate Management
o Issue a project mandate (short description and justification)
o Appoint the Project Board.
� The Project Manager is appointed by either the Executive or Project
Board.Board.
� The Project Manager initiates the Start Up Process which produces the
Project Brief, which contains:
o Business Case
o Project Product Description together with measurable acceptance
criteria.
� We can now construct our Quality – Cost – Time Triangle and see if it
is in equilibrium.
SPM 2017 © Ron Poet Lecture 18 14
Initiating a Project
� The Business Case is valid and the project can start.
� This stage generates the Project Initiation Document (PID)
o Project Plan
o Updated parts of the Project Brief.
� If the Business Case is still valid then the Board will authorise the
project.
� The Stage Boundary process is initiated to produce a Next Stage Plan.
SPM 2017 © Ron Poet Lecture 18 15
Controlling a Work Related Stage
� Negotiate the Work Packages with the Team Managers.
o Allocate time and money.
� Work Packages are undertaken by Suppliers
o Within the host organisation, oro Within the host organisation, or
o Undertaken by external suppliers.
� Preparing requirements documents can be undertaken by Users.
� Team Managers produce weekly CheckPoint Reports (progress
reports)
� Project Manager produces a monthly Highlight Report for the Board.
� Exceptional procedures can also be undertaken.
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Managing a Stage Boundary
� Update the Project Plan with
o Progress
o Revised forecasts for the remainder of the work.
o Update time and cost estimates in the Business Case.
� Produce an End Stage Report and a Next Stage Plan for the Board.
� The Board holds an end stage assessment to see if they can make the
business case for the project to continue.
� Documents can be neglected and become out of date during a stage.
This should not happen, but the stage boundary is a time to make sure
they are up to date.
SPM 2017 © Ron Poet Lecture 18 17
Closing a Project
� The Project Manager will produce an End Project Report.
� The Board can then authorise project closure.
� The project management team is disbanded.
SPM 2017 © Ron Poet Lecture 18 18
Exception Procedure
� If we exceed our budget or time tolerances, or other problems arise, the
Project Manager must write an Exception Report for the Board.
� If the project can still continue, the Board will ask the Project Manager
to produce an Exception Plan rather than a Stage Plan and follow the to produce an Exception Plan rather than a Stage Plan and follow the
Exception Stage Boundary process.
� The Board may recommend a Premature Close if the Business Case no
longer support the project.
o The project may be rescued by a major change in scope.
o This would involve major replanning.
SPM 2017 © Ron Poet Lecture 18 19