Prince2 Principles in depth

Question 1

Describe the first 3 Prince2 Principles:

1) Continued Business Justification

2) Learn from experience

3) Defined roles and responsibilities

Answer 1

1) Continued business justification:

Need to justify the reason for starting a project (Business case).

That the reason is documented and is updated and reviewed throughout a project. If business case becomes invalid, project should be stopped.

Justification drives decision making process (avoid starting different objectives/going off track) Ensures VFM.

Business case may take form of business plan in early stages of project.

2) Learn from Experience - Reviewing lessons from projects of similar nature. And learn from each previous stage during stage boundary.

3) Define roles and responsibilities - Ensures everyone knows what they’re doing, what each members responsibilities are..

Question 2

Describe the Management by Stages Principle, talk about it as much as you can and then check to see what points you’ve missed.

Answer 2

There are different stages in the project, each stage is a section of the project the PM is managing on behalf of the project board at any one time.

There’s a review at the end of each stage (called a boundary) at which the Project board will review progress, project plan, business case and risks etc and decide whether to continue the project/to the next stage.

Requires at least two stages (initiation and rest of the project) - number of stages depend on risk, organisational standards and policies, required decision points (significant decisions like awarding a contract usually done initially).

More stages mean more control and more effort.

Question 3

Describe manage by exception principle

1) General overview of what it is.

2) General info around meetings.

3) Tolerances are set for each aspect of project performance as follows: x6

4) Escalate when…

Answer 3

1) Authority to work within specified limits is delegated through the project team structure, limits are known as tolerances.

2) If project is proceeding within the defined tolerances, there’s no need for regular update meetings. Important for PB who only need to meet at end of stage to make decisions.

3) Tolerances are set foe each aspect of project performance as follows:

A) Scope - Allowable variation in a projects outputs, for example distinguishing between mandatory and desirable outputs
B) Quality - The variation in quality or performance standards. E.g. a divers watch should work whilst swimming at 50 metres +- 5 metres
C) Risk - Limits on the plans aggregated risk, for example less than 10% of projects budget
D) Cost - Allowable under or overspend against the budget for the project stage or work package usually expressed as a percentage
E) Time - Amount of time either side of target date within which the project, stage, or work package can deliver
F) Benefits - The degree to which it’s allowable to under or overdeliver the benefits. e.g. cost saving of 50k plus or minus 5k.

4) Escalate when forecast to exceed tolerance…

Question 4

Describe Focus On Products.

1) Products means the same as x2

2) Define Product - FUCK THIS NOT IMPORTANT

3) x2 types of products that prince2 defines

4) By focusing on products, prince 2:
A)
B)
C)

Answer 4

Not just how you’re going to deliver the products, but what it is.

1) Products = outputs = deliverables

2) A product is an input or output, whether tangible or intangible, that can be described in advance, created and tested… FUCK THIS NOT IMPORTANT

3) A) Management products - documents required and created to manage the project
B) Specialist Products - Things that will be created by the project to satisfy the business need.

4) A) Ensures that the project only undertakes work that directly contributes to the delivery of a product.
B) Helps manage uncontrollable change by ensuring that all changes are reviewed before being accepted. E.g. kit shortage/using other kit types that may offer different functionality to what you originally wanted.
C) Reduces risk of user complaints and disputes by establishing the deliverables at the start of the project.

Prince2 uses product descriptions to clearly define the product.

Question 5

Tailor to suit the project…

2 Key purposes of tailoring

Answer 5

A) Ensure that the method and it’s use, is appropriate to the size of the project.
B) The project controls are appropriate to the projects complexity, importance, team capability and risk.

Project controls are processes for gathering and analyzing project data to keep costs and schedules on track.