Plans

Question 1

What is the purpose of the Plans theme?

Answer 1

The purpose of the Plans theme is to facilitate communication and control by defining the means to deliver products, including where and how, by whom, and estimating when and how much.

Question 2

Why are plans important in PRINCE2?

Answer 2

Plans in PRINCE2 are essential as they provide the fundamental information required for project management. Without a plan, adequate control cannot be achieved.

Question 3

How are plans defined?

Answer 3

A plan is a detailed proposal specifying what, when, how, and by whom something will be achieved or delivered.

Question 4

What types of plans are recognized?

Answer 4

In PRINCE2, four types of plans are recognized: project plan, stage plan, team plan, and exception plan.

Question 5

What is the role of those approving a plan in terms of resources?

Answer 5

Those who approve a plan must commit the required resources to ensure they are available when needed to execute the plan.

Question 6

What is the role of a plan as a reference point in project management?

Answer 6

A plan provides a reference point for measuring progress, obtaining support for the project, agreeing on scope, and securing commitment to provide the necessary resources.

Question 7

What does the principle of “manage by stages” reflect?

Answer 7

It reflects that it’s usually not possible to plan the entire project from the outset due to increased difficulty and uncertainty as the project extends into the future.

Question 8

What is the ‘planning horizon’?

Answer 8

It’s the time period over which you can plan with reasonable accuracy, and planning beyond it is typically inaccurate.

Question 9

How does PRINCE2 address the planning horizon, and what types of plans are required?

Answer 9

PRINCE2 addresses the planning horizon by mandating both high-level and detailed plans created together. It requires a project plan (typically high-level) and a detailed stage plan (aligned with the project plan) for the current management stage. Detailed planning beyond the horizon is discouraged.

Question 10

What’s the role of a project plan?

Answer 10

It shows major project products, delivery times, costs, and serves as a control document for measuring progress against expectations.

Question 11

What’s a stage plan used for?

Answer 11

It’s a detailed plan for project management control throughout a management stage, serving as a fundamental building block for project plans and governance.

Question 12

What is the relationship between project lifecycle, phases, and stages in PRINCE2?

Answer 12

In PRINCE2, the project lifecycle is described in terms of phases or stages, with the terms used interchangeably. It includes distinct phases or stages from project conception to completion, serving as the foundation for project planning and governance. Early phases involve investigation, while later ones focus on implementation.

Question 13

What is “Product-based planning”?

Answer 13

It is an approach that emphasizes identifying the products to be delivered before defining activities, dependencies, and resources.

Question 14

What are the main benefits of “Product-based planning”?

Answer 14

It includes reducing the risk of overlooking important aspects, removing ambiguities about the products, engaging users, improving communication, clarifying the scope, and preparing for suppliers.

Question 15

How does “Product-based planning” improve user involvement and manage approvals?

Answer 15

By involving users in defining product requirements, increasing acceptance, and reducing disputes over approval.

Question 16

How does “Product-based planning” improve project communication?

Answer 16

Through the use of tools such as the product breakdown structure and the product flow diagram for discussion and sharing.

Question 17

What is the role of “Product-based planning” in scope management and change control?

Answer 17

It clearly defines the products included and excluded, providing a basis for change control and preventing scope creep.

Question 18

What are the minimum requirements for plans in a PRINCE2 project?

Answer 18

The plans must support the realization of the business case, include at least two management stages (initiation and one additional), and use product-based planning for all project plans.

Question 19

What types of plans are required in a PRINCE2 project?

Answer 19

A project plan for the entire project and a stage plan for each management stage must be produced, in addition to specific plans for managing exceptions.

Question 20

What is a Product Breakdown Structure (PBS) in PRINCE2, and what does it represent?

Answer 20

The PBS is a hierarchical breakdown of all the products that will be produced during a plan. It represents the main project products, further subdivided to an appropriate level of detail for the plan. In PRINCE2, maintaining a project product description and individual product descriptions is required.

Question 21

What is the difference between a product breakdown structure and a work breakdown structure in PRINCE2?

Answer 21

A product breakdown structure contains only the products, while a work breakdown structure contains only the activities required.

Question 22

What is the role of the product flow diagram in PRINCE2?

Answer 22

Although not mandatory, PRINCE2 recommends creating and maintaining a product flow diagram, showing the sequence of production and interdependencies of the products listed in the product breakdown structure.

Question 23

What is the fundamental structure of plans in PRINCE2?

Answer 23

All PRINCE2 plans have the same fundamental structure and contents; they only vary in purpose, scope, and level of detail.

Question 24

What is the purpose of the project plan?

Answer 24

It provides a statement on how and when the project’s time, cost, quality, and scope objectives will be achieved, showing the main products, activities, and resources required.

Question 25

How does the project board use the project plan?

Answer 25

It is used as a baseline to monitor project progress stage by stage.

Question 26

When is the project plan created and updated?

Answer 26

It is created during the project initiation process and updated towards the end of each management stage during the stage boundary management process.

Question 27

What are stage plans?

Answer 27

A stage plan is required for each management stage, similar to the project plan but with more specific details for daily control by the project manager.

Question 28

When are stage plans created?

Answer 28

The initiation stage plan is created during the project initiation process, while plans for subsequent stages are produced towards the end of the current stage in preparation for the next.

Question 29

What are exception plans in PRINCE2?

Answer 29

These are plans produced to recover from or avoid deviations from the agreed tolerances in the project plan or stage plan.

Question 30

Who needs to approve exception plans?

Answer 30

If a stage plan is replaced, approval from the project board is required. Replacing a project plan may require referral to higher levels such as corporate management or the client.

Question 31

At what level of detail are exception plans prepared?

Answer 31

They are prepared at the same level of detail as the plan they replace and become the new baseline if approved.

Question 32

What is a work package?

Answer 32

It is a set of information for creating one or more products, including a work description, product descriptions, production constraints, and confirmation of the agreement between the project manager and the person performing the work.

Question 33

What are team plans?

Answer 33

These are optional plans for controlling team management in executing work packages, created by team managers.

Question 34

What should a team manager do if they anticipate a work package will exceed tolerances?

Answer 34

They must notify the project manager by raising an issue. If it can be resolved within the tolerances of the stage plan, the project manager will authorize corrective action.

Question 35

What is the main role of the Executive?

Answer 35

To approve the project plan and define/approve tolerances for each management stage.

Question 36

What are the main responsibilities of the Project Manager?

Answer 36

To design and prepare the project and stage plans, and to manage the management stages.

Question 37

What are the responsibilities of the Team Manager?

Answer 37

The Team Manager is responsible for preparing team plans and managing the execution of work packages.

Question 38

What does PRINCE2 recommend as an approach to planning when there are no other specific methods available?

Answer 38

It recommends following the following work pattern.
DESIGNING A PLAN
DEFINING AND ANALYSING THE PRODUCTS
IDENTIFYING ACTIVITIES AND DEPENDENCIES
PREPARING ESTIMATES
PREPARING A SCHEDULE
DOCUMENTING A PLAN
ANALYSING RISK TO A PLAN

Question 39

How is the number of management stages determined in a PRINCE2 project?

Answer 39

The number of management stages is determined based on the project’s scale, duration, and risk. A simple project may have only two, while larger and more complex projects may require more for optimal planning and control.

Question 40

What are the main considerations when defining management stages?

Answer 40

Defining management stages in PRINCE2 involves balancing how much planning is sensible in advance, the placement of key decision points, the project’s risk level, the trade-off between too many short stages and too few long ones, and the confidence of the project board and project manager in proceeding.

Question 41

How is the length of management stages determined?

Answer 41

The length of management stages depends on the level of risk, uncertainty, or complexity of the project. Shorter stages are preferred in the presence of higher risks, while longer stages may be suitable when the risk is lower.

Question 42

What factors influence the decision on the length of management stages?

Answer 42

Factors include the planning horizon, internal project delivery steps, alignment with program activities, and the overall project’s risk level.

Question 43

What is the relationship between management stages and delivery steps?

Answer 43

Management stages are project control segments where resources and spending authority are allocated, while delivery steps refer to technical activities and may span across multiple management stages.

Question 44

Can delivery steps overlap across different management stages?

Answer 44

Yes, delivery steps can extend across multiple management stages to utilize specific technical expertise, as shown in Figures 9.3 and 9.4.

Question 45

Do management stages have to align with delivery steps?

Answer 45

Not necessarily. They can align when management decisions depend on the outcomes of delivery activities, but there can be multiple delivery steps within a single management stage.

Question 46

How are delivery steps planned in relation to management stages?

Answer 46

Each delivery step should be clear in its objectives and what needs to be completed at the boundary of each management stage. This ensures that project management remains focused and controlled.

Question 47

Does PRINCE2 require a specific format for project plans?

Answer 47

No, PRINCE2 does not prescribe a specific format. It is important that the plan is suitable for its purpose and appropriate for the scale and complexity of the project.

Question 48

How is the project plan adapted to the scope of a program or portfolio in PRINCE2?

Answer 48

Project plans should align with the standards and planning tools defined by the related program or portfolio, with specific variations agreed upon with management.

Question 49

When does the choice of planning tools become relevant in PRINCE2?

Answer 49

The choice of planning tools depends on the complexity of the project and may need to be deferred until the complexity level is clear

Question 50

How can the plan be represented in a small project according to PRINCE2?

Answer 50

In a small project, the plan can be represented simply, for example, with a list of products or a diagram on a whiteboard.

Question 51

What approach does PRINCE2 recommend for defining and analyzing products, and is it mandatory?

Answer 51

PRINCE2 recommends an approach for defining and analyzing products:
WRITIN A PROJECT PRODUCT DESCRIPTION
CREATING A PRODUCT BREAKDOWN STRUCTURE
CREATING A PRODUCT FLOW DIAGRAM
However, it’s important to note that this approach is not mandatory; it provides guidance but allows flexibility in its application.

Question 52

When and why is the project product description created in PRINCE2?

Answer 52

It is created during the project initiation phase to define the customer’s expectations regarding project outcomes. It is essential for initial planning and for confirming at project closure that acceptance criteria have been met.

Question 53

Who typically drafts the project product description in PRINCE2, and in collaboration with whom?

Answer 53

The project manager typically drafts the project product description in consultation with the senior user and the executive, even though the senior user has the responsibility to specify the project product.

Question 54

How important is the completeness of the project product description at the project’s outset?

Answer 54

It is crucial to strive for making the project product description as comprehensive as possible from the beginning since it serves as the foundation for planning and the subsequent verification of project success.

Question 55

How is a PBS typically created in PRINCE2?

Answer 55

Typically, a team with diverse skills and interests is involved. A structured brainstorming session, such as using post-it notes or a whiteboard, can be used to identify and capture each product.

Question 56

What is the importance of consensus in product breakdown in PRINCE2?

Answer 56

It is important to achieve consensus on how products are broken down in the PBS since there may be differing opinions between users and suppliers on how to categorize products.

Question 57

How are external products managed in PRINCE2’s PBS?

Answer 57

It is necessary to identify products that need to be created by other projects or purchased/rented from external suppliers. These products are not the responsibility of the project manager, but it is important to consider the risks associated with their delivery.

Question 58

When is it useful to include different states of a product in PRINCE2’s PBS?

Answer 58

It can be useful to identify different states of a product (e.g., ‘dismantled, transferred, and reassembled machinery’) as separate products, especially when responsibility for creating each state passes from one team to another.

Question 59

When and why should a product description be written in PRINCE2?

Answer 59

The product description should be written as soon as the need for the product is identified. Initially, it may be just a “skeleton” and is refined as the product becomes better understood and subsequent planning steps are executed.

Question 59

When is a product description baselined in PRINCE2?

Answer 59

A product description is baselined when the plan that includes the creation of that product is baselined. If the product changes, the product description must also go through change control.

Question 60

Who should be involved in writing product descriptions in PRINCE2?

Answer 60

Although the project manager or the team manager is officially responsible, it is wise to involve product experts and those who will use it, especially in defining product quality criteria.

Question 60

Is it possible to reuse product descriptions in PRINCE2?

Answer 60

Yes, successful product descriptions can be reused in other projects within the same program or organization. To do so, you need to establish a product description library and a mechanism for storage.

Question 61

What is the purpose of a product flow diagram in PRINCE2, and how is it created?

Answer 61

A product flow diagram helps identify and define the sequence of product development and dependencies between them. It can be created in parallel with the product breakdown structure and typically uses a few symbols to represent products and their sequences.

Question 62

Why is it important to identify activities in addition to products in PRINCE2?

Answer 62

Identifying products alone is not sufficient for planning and control. It is essential to identify the activities required to create or modify each product to have a complete view of the workload in the plan.

Question 63

What are some methods for identifying activities in a PRINCE2 plan?

Answer 63

Separate activity lists can be created using the product flow diagram as a source, or the product breakdown structure can be used to create a work breakdown structure to define the necessary activities.

Question 64

What types of activities should be included in a PRINCE2 plan?

Answer 64

In addition to activities needed for developing specialist products, management and quality control activities should be included, as well as activities required to interact with external parties, such as acquiring or converting products from external sources.

Question 65

How are dependencies managed in a PRINCE2 project?

Answer 65

After identifying activities, it is crucial to recognize and record dependencies between these activities and products. These dependencies should be documented, for example, on the product flow diagram or in a register, and a responsible person for managing each dependency should be identified, which could be the project manager or another designated individual.

Question 66

What is the definition of a dependency in PRINCE2, and what types of dependencies are relevant?

Answer 66

A dependency means that one activity depends on another. There are at least two types of dependencies in a project: internal and external. An internal dependency is between two project activities and can be controlled by the project team, while an external dependency is between a project activity and a non-project activity and is not entirely under the control of the project team.

Question 67

How is the effort required for each activity estimated in PRINCE2?

Answer 67

Estimate the effort needed for each activity based on the type of resource. Initially, these estimates will be approximate and provisional.

Question 67

What is the first step in preparing an estimate in PRINCE2?

Answer 67

Identify the type of resource required, which may include specific skills and non-human resources such as equipment, travel, or money.

Question 68

What are some basic rules for making accurate and realistic estimates in PRINCE2?

Answer 68

Assume reduced productivity (e.g., 80%), consider time lost for those working on multiple projects, account for optimism and underestimations, use past experiences, have the product creator estimate the effort, include time for problem-solving and meetings, estimate each activity separately, and communicate assumptions and constraints.

Question 69

What attitude should be adopted towards initial estimates in a PRINCE2 project?

Answer 69

Initial estimates do not guarantee accuracy and will change as more is learned about the project. It is important to challenge estimates because the same work can be estimated differently by different estimators or by the same estimator at different times.

Question 70

Why is it important to create a work schedule in a PRINCE2 plan?

Answer 70

A work schedule demonstrates the feasibility of achieving the plan’s objectives by defining when each activity will be performed. It is essential for understanding the temporal interaction between activities and ensuring the project proceeds efficiently.

Question 71

What are the different approaches to planning in PRINCE2?

Answer 71

Planning can be done manually or using computer-based planning and control tools. The choice of approach depends on the project’s needs and complexity.

Question 72

How is the optimal sequence of activities determined in a PRINCE2 plan?

Answer 72

After identifying activities and their dependencies and estimating duration and effort, the optimal sequence in which they can be executed is determined. This is an iterative task since the allocation of actual resources can influence estimated effort and duration.

Question 73

What are float and the critical path in a PRINCE2 work schedule?

Answer 73

Float is the time by which an activity can be delayed without affecting the overall completion time of the plan. The critical path is the sequence of activities with zero float; any delay in these activities delays the entire plan.

Question 74

What is the node activity technique, and how is it used in PRINCE2?

Answer 74

It is a diagram used to plan dependent activities within a plan, showing the interdependencies between activities through boxes and arrows. It helps determine the most efficient sequence of events to complete the plan and create a realistic schedule.

Question 75

How is resource availability assessed in a PRINCE2 project?

Answer 75

The number of people available to perform the work or the cost to acquire external resources is determined. Specific details such as names, experience level, percentage availability, and availability dates are recorded.

Question 76

What is the recommended approach for allocating resources in PRINCE2?

Answer 76

Resources are assigned first to activities with zero slack (on the critical path) and then to activities with more slack. It is important to define task owners and ensure their availability and willingness to take on responsibility.

Question 77

What is resource leveling, and how is it done in PRINCE2?

Answer 77

Resource leveling is the rearrangement of resources to avoid uneven use or overutilization of certain resources. Activities can be reassigned or have their start dates and durations changed while respecting available slack to achieve balanced resource utilization.

Question 78

Why is it important to review the critical path after resource allocation?

Answer 78

After resource allocation, it is important to review the critical path because the assigned resources may be more or less productive than the assumptions made during the estimation of effort and activity durations.

Question 79

How are checkpoints established and confirmed in a PRINCE2 project?

Answer 79

Checkpoints are established and confirmed by the project board during the review of the preliminary project plan. It is important to include activities related to the conclusion of each management phase, such as preparing end-stage reports and plans for the next phase, to ensure effective project control.

Question 80

What is a milestone in PRINCE2, and what is its purpose?

Answer 80

A milestone is an event that marks the completion of key activities, such as the conclusion of a work package, a delivery stage, or a management phase. Milestones are useful for monitoring progress and can serve as reference points for payments in commercial environments.

Question 81

What considerations should be made regarding the number and interval of milestones?

Answer 81

There is no “correct” number of milestones or a precise duration between them. However, they lose value if there are too many or too few. There should be fewer milestones than delivered products or work packages but sufficient to assess whether the plan is progressing as expected.

Question 82

How are the total resource requirements and costs calculated in a PRINCE2 project?

Answer 82

Resource requirements are tabulated, and resource costs and other expenses are calculated to produce the budget for the plan. The budget should include costs for activities to develop and verify specialist products, project management activities, risk budget, change budget, and cost tolerances.

Question 83

What are the key elements to include in PRINCE2 plan documentation?

Answer 83

Plan documentation should include the work schedule, costs, necessary controls, explanations of constraints, external dependencies, assumptions made, required monitoring and control, as well as identified risks and their responses.

Question 84

What is the importance of simplicity in PRINCE2 plan documentation?

Answer 84

Maintaining plans that are simple and clear is crucial, especially for presentation to the project board. Using summary diagrams is recommended to facilitate understanding and approval.

Question 85

Why is it advantageous to use different plan formats in PRINCE2?

Answer 85

Utilizing different plan formats for formal approval and day-to-day control allows for adapting the presentation to specific needs, making it easier to understand for various levels of readers.

Question 86

When and how are risks analyzed in a PRINCE2 plan?

Answer 86

Risk analysis occurs in parallel with other planning steps, as risks can be identified at any point during the creation or review of a plan. Every resource, activity, and planning information should be examined for its risk content.

Question 87

Where are identified risks recorded during planning?

Answer 87

All identified risks should be entered into the risk register or daily log when planning the initiation stage.

Question 88

What is the impact of risk analysis on the plan?

Answer 88

After the production of the plan, it should be considered a draft until risks related to the plan have been identified and assessed, and the plan possibly modified.

Question 89

What are some common examples of risks in the planning of a PRINCE2 project?

Answer 89

Examples include omitting plans at appropriate management levels, unidentified resources, a high proportion of external dependencies, the use of untested suppliers or new technologies, many tasks on the critical path, lack of management decision points, scarcity of float, multiple products to complete simultaneously, budget or schedule constraints, and parallel paths to the critical path that could become critical.

Question 90

What considerations are important for project plans within a PRINCE2 program?

Answer 90

Plans must adhere to the standards specified in the program’s monitoring and control strategy. It’s important to include dependencies with other projects within the program in the project plan and align management stages and reviews with program milestones.

Question 91

How is product-based planning applied to Agile approaches in PRINCE2?

Answer 91

In Agile, planning focuses on delivering requirements in fixed time periods (such as sprints or timeboxes). Typically, it includes an initiation phase for product vision and roadmap, an initiation phase for the product backlog, and then a series of delivery phases for feature releases.

Question 92

What needs to be clarified in plans when dealing with a customer/supplier situation in PRINCE2?

Answer 92

The contract should clarify how plans are produced and what rights of inspection and audit the customer has. Supplier plans should include sufficient activities and/or milestones for managing the customer’s plan, with a specific focus on milestones related to procurement.

Question 93

What is the MoSCoW prioritization technique in PRINCE2?

Answer 93

The MoSCoW technique is a prioritization method that classifies project requirements as Must have (essential), Should have (important), Could have (useful but not essential), and Won’t have (not planned). It helps establish which elements are crucial for the project’s business justification.

Question 94

What is the difference between Must have, Should have, and Could have in the MoSCoW technique?

Answer 94

“Must have” are elements essential to the project; without them, the project cannot succeed. “Should have” are important but not critical, and their absence weakens the business justification. “Could have” are desirable but not essential, and their absence does not weaken the justification.

Question 95

Why is it useful to record “Won’t have” items in a PRINCE2 project?

Answer 95

Recording “Won’t have” elements helps formalize the agreement on what will not be delivered by the project. This prevents the reintroduction of such requirements later and clarifies the project’s scope.

Question 96

How does the MoSCoW technique support project management in PRINCE2?

Answer 96

The MoSCoW technique helps establish clear priorities by defining which elements are crucial (Must have) and which are less critical (Should/Could have). This helps project managers focus resources and attention on the most important aspects, which indirectly supports management by exception by identifying where variations could have the most significant impact.

Question 97

What does the top-down estimation method in PRINCE2 involve?

Answer 97

In the top-down method, an overall estimate for the plan is broken down through the levels of the product breakdown structure, distributing the total estimate based on the historical percentage of effort for each component.

Question 98

How does bottom-up estimation work in PRINCE2?

Answer 98

In the bottom-up method, each individual piece of work is estimated separately, and these individual estimates are then summed to obtain the overall effort for the plan.

Question 99

How is the top-down approach combined with the bottom-up approach?

Answer 99

It starts with an overall estimate of the plan and then individually estimates activities, using these individual estimates to proportionally distribute the overall estimate.

Question 100

What is reference class estimation in PRINCE2?

Answer 100

It relies on historical data regarding the effort and duration of similar activities in past projects. This data can be used as a reference for similar projects.

Question 101

What does parametric estimation involve?

Answer 101

It is based on measured/empirical data, such as estimation models in the construction industry that predict materials, effort, and duration based on building specifications.

Question 102

What is the difference between single-point estimation and three-point estimation?

Answer 102

Single-point estimation uses sample data to calculate a single value as the best estimate. Three-point estimation requires optimistic, realistic, and pessimistic estimates, using a weighted average of these three estimates.

Question 103

How do the Delphi technique and planning poker work for estimation?

Answer 103

The Delphi technique uses questionnaires and iterative feedback to achieve group consensus. Planning poker, used in agile, employs numbered cards to vote on estimates until consensus is reached.

Question 104

What is the role of Gantt charts in PRINCE2 project management?

Answer 104

Gantt charts are used to graphically visualize the duration of activities over time, aiding in planning, managing dependencies, and monitoring progress.

Question 105

Why is the critical path important in PRINCE2?

Answer 105

The critical path highlights activities that cannot be delayed without affecting the project’s completion, essential for effective project planning and monitoring.

Question 106

In what circumstances are spreadsheets used for planning in PRINCE2?

Answer 106

Spreadsheets are useful for simple projects with a stable timeline, providing a visual representation of activities and progress.

Question 107

What is the benefit of using a product checklist in PRINCE2?

Answer 107

A product checklist provides a simple overview of key products and their delivery dates, helping track progress in delivering the project’s products.