Prince2 1

PRINCE2® - 8th July 2017 Start
Our Journey – the Road ahead

Session Breakup
• Day 1 i.e. 8th July 2017
o Introduction
o Introduction to PRINCE2®
 4 integrated elements
• Principles
• Themes
• Processes
• Tailoring to suit to the Project environment
o PRINCEPLES
o Themes
 Organization
 Business Case - ?
o Processes – Part 1
 Introduction
 Process Flow
 Integration between themes and process
• Each theme, we will see how processes interact with the
theme
• Day 2
o Themes
 Quality
 Plans
 Risk
 Change and
 Progress
o Processes – Part 2
• Day 3 and 4 i.e. 15th and 16th July 2017
o Themes
 Risk
 Change
 Progress
o Processes – deep dive
o Practitioner sample question paper Blended together
Session Breaks
• 15 minutes after about 2 hours or a logical conclusion point
• Let’s try for a 5 minutes’ quick break after a logical point
• Lunch break is about 45 minutes
Milestones – Phases of our PRINCE2® Journey

• Poll at lunch time
o Will help me to understand how I am going
o Your inputs are valuable
• At the end of the session when you close WebEx, a survey will open automatically in
browser
2
o This is very important for all of us

o You will be giving ratings on My performance and Simplilearn
Scope
• Foundation
o Explanation of each topic – 4 elements
o Aim or objective is to understand these concepts and to become familiar
o Exam
 Duration: 60 minutes
 Questions: 75 questions out of which 5 are trial questions. These 5
questions are not corrected for you. That means your passing score is
calculated on 70.
 Pass mark is 50% i.e. 35 out of 75 practically you should get 40 out of 75 to
pass (because we don’t know what are those 5 trial questions)
 All questions are objective type
 Closed book exam – no material is allowed
 Can be taken electronically or paper based (check with Simplilearn)
o Validity of certification
 Forever
 There is no need to earn any points, units etc.
• Practitioner
o Same content as Foundation
o Aim or objective is to test how you can implement PRINCE2®
o Exam
 Case study based – one case study for complete exam
 Duration: 150 minutes
 Questions: 80 (60 from themes, 20 from processes)
 Open book exam – ONLY OFFICIAL PRINCE2® MANUAL IS ALLOWED (Printed
Book) – You can buy it at: https://www.axelos.com/store/book/managing-
successful-projects-with-prince2 - without this book, you may not be able
to answer multiple questions.
o Certification
 Another certificate than foundation
 Validity is for 5 years, after 3 years – you can take an exam to recertify (no
need to earn any points or units like PMI®)
Referral link:
Refer your friends now - www.simplilearn.com/refer-and-earn

3
To communicate with others, please use Chat Window:
Session Recordings
To access session recordings, visit lms.simplilearn.com and login with your registered email id.
Recordings will be available

after 12 hours of the class
Reference and additional information such as Case Studies

Please refer to this link: https://www.axelos.com/case-study-and-white-paper-search
4
Our Team
My Name My Primary My Current My objectives of doing this
Industry is location course is
Karthik IT Chennai To learn and manage people
and other resources in better
way
Tirupati sahu Automotive chennai Become a PM
Sanjeev support engineer Gurgaon better job
Amulya Investment Hyderabafd Career growth
Banking
Latheesh Engineering Bangalore Job Change
Consultancy
Nandini IT Ahmedabad For my career growth
Chakravarty
Sangeeta IT-Infrastructure Pune Aspirational
Mondal services
Puneet Mahajan IT - Oracle Apps Sydney Prince2
Sandhya IT Kolkata I'm interested to be in hybrid
role as i'm currently into
Change Management role
VINOD Process Industry CHENNAI Learn more about Project
THIAGARAJAN management and certification.
Sushal IT Bangalore Career Change
Prakash IT Mumbai I want to learn project
management skills
Vivek Srivastava Business Gurugram (Delhi I wanted to ensure Project and
(Corporate) Travel NCR) New Setup (including new
client onboarding through a
project approach.
Abel Banking Bangalore,India Learning how to manage
projects efficently and to move
into project management
Mitrojit Service Industry Bangalore Is to Grow in the Management
Role
Evandro Construction and Between Europe Become an PM
banking and Africa
Rajee MNC BPO Pondicherry Career growth
Publishing
Ujwala IT industry Bangalore To learn and apply Prince2
principles in my job
Subrata Telecom Jaipur For my growth
Lohitha product base Bangalore To boostup my profile. And to
be PM
Dilip Service Industry - Bangalore Career Growth
BPO Finance &
Accounts
Krishna IT and Swoftware Hyderabad To grow further in my career as
PM
Ankita Khare Information Hyderabad End to end knowledge of a
TEchnology project of an organization so it
would help me to grow .
Akhil Chakote IT Telecom Bangalore Knowledge and certification
R C Sudish IT Bangalore Upskill myself
Satish Kumar Banking BLR To learn more about PM
5
Shiwaani Mintri Analytics Bangalore For Career growth

Diksha IT services for Delhi Learn about PM & effectively
Education apply in my domain
Anchu IT BLR Learn PRINCE2 for career
growth
Projects
• Project is a temporary organization that is setup to deliver a specific output.
o Temporary – it has fixed start and end dates
o Organization – a set of people with defined roles and responsibilities working
together towards a common goal – that common goal is the Project
o PMI defines a project as a Temporary endeavor where as PRINCE2® defines it as
Organization. This tell you PRINCE2® is more role driven, better guidance for each
role.
• Operations
o Day to day operations i.e. Business as usual support
 IT: Production support or L1/L2/L3 Support
 Construction: Building maintenance (regular cleaning, washing,
housekeeping tasks)
 Banking: handling customer transactions (deposits, withdrawals, loans,
investments)
 Travel: booking tickets, arranging tours etc.
• Programme Management
o Managing and directing set of projects i.e. multiple projects together
o Operate outside the Projects
o Examples:
 IT: ERP rollout in a manufacturing company like automobile
• Installation – project
• Training – project
• Customization – project
• Testing - project
• Launch and rollouts – projects
 Construction: apartment complex
• Each type of house – project
• Common facilities – project
• Procurement – project
 Bank
• Investments are a Programme
• Expansion of Banking
FIVE Common characteristics of each Project

• Temporary – definite start and end date – never run forever
• Unique – the final output is unique
• Change – newer ways of working, improvements
6
• Uncertainty – risk (economic – less funds, political – change of leadership, legal –

government regulation etc.)
• Cross functional – lot of people from different departments or business units are impacted
by the Project
Project Management
• Systematic approach of managing a project so that the project delivers its expected output
as per agreed cost, time, scope, quality and managing threats (Risks) to the Project
• Project Management is done by using a method – gives guidelines about how to manage the
Project
o PMI
 From USA
 Can be applied to any industry, any domain, any project
 Heavy on tools and techniques
 Exhaustive coverage on Procurement, Stakeholder engagement than
PRINCE2®
o PRINCE2®
 From UK, Office of Government Commerce
 Part of Best management practices along with ITIL, MoR, MSP etc.
 PRINCE stands for PRojects IN Controlled Environments

• Environment stands for where our project is getting executed in a
customer supplier engagement
• Controlled Environment means controlling the objectives of the
project, hierarchical organization (reporting structure), escalation
matrixes etc.
• 2 Stands for 2nd revision or version which came in 2009.
• Latest is 2017 Update (not called as PRINCE3 but 2017 update to
2009 version)
o Content:
7
 Configuration Management is removed (in Change

Theme)
 More guidance on tailoring (in 2009 version,
tailoring is one chapter, but in 2017 update, each
chapter has tailoring)
o Exams
 Foundation: 60 questions, 60 minutes
 Practitioner: 80 questions, 150 minutes
o Officially 2017 is not launched yet
o Current 2009 (even if you take exam in next 3 months) it is
valid
 From 2009 if you wish to go to 2017, take
Practitioner exam alone
Introduction to PRINCE2®
Structure of PRINCE2®
• Four integrated elements
• Principles – best practices applicable for any industry, any domain
• Themes – must be managed and controlled (like dashboard on a vehicle, themes must be
monitored throughout the Project)
o PMI – 10 subject areas or knowledge areas – Integration, Scope, Quality, Time, Risk
management etc.
o PRINCE2® - 7 Themes – we don’t have Procurement, Stakeholder (but covered by
means of roles, communication and reports), Integration (not required here
separately because it is already integrated)
o Organization, Business Case, Quality, Plans, Risk, Change and Progress
• Processes – how to implement PRINCE2®
o PMI – 47 processes as per PMBOK 5th edition
o PRINCE2® - 7 processes with 40 activities
• Tailoring to suit to the Project environment
• Example with a pressure cooker
o Principles – cooker needs water, ways to cook etc.

o Themes – temperature, safe operating etc.
o Process – cooking process
8
o Tailoring – per taste
SIX Objectives of every PRINCE2® Project
You can remember these six as BCQRST

• Benefits
o Measurable and achievable improvements that make investing in the Project
justified.
• Cost
o Every project involves cost.
o Cost here is development cost and maintenance cost.
• Quality
o Producing the output meeting customer requirements
• Risk
o Uncertainties that can happen to any project
• Scope
o What expected out of the Project
• Timeline
o The deadline by which the Project must be completed and
o The timeline by when benefits will occur
• These six objectives must be managed, monitored and controlled.
• Example
o Consider your PRINCE2® training as a Project.
o Benefits:
 Career growth
 Certification
 Higher package
 Knowledge
o Cost
 Training cost
 Certification cost
 No maintenance cost for your certification (unlike PMI, where sometimes,
you must pay to earn your PDUs – Professional Development Unit)
o Quality
 Training as per your expectations
 No WebEx interruptions
 Quality of material etc.
o Risk
 Over speeding through the content
 Network connectivity
 Not able to pass the exam
 Not able to attend
o Scope
 Foundation
 Practitioner
o Timeline
9
 Training timeline: 2 days + 2 days

 Examinations
Out of Scope in PRINCE2®

• Specialist methods
o PRINCE2® can be applied for any project, any domain. But how the actual
deliverable is produced is not covered by PRINCE2®
 Example:
• IT: Upgrade of Windows from 8 to 10 across organization. How to
do upgrade – PRINCE2® won’t tell.
• Construction: Airport – how to construct the runway, control tower
etc. PRINCE2® won’t tell
• Travel – how to book travelers, how to provide guidance etc.
• Detailed Tools and Techniques
o PMI prescribes or recommends lot of tools and techniques (more than 100 to be
precise)
o But PRINCE2® doesn’t recommend any tools and techniques. But as a PM, in
PRINCE2®, you will be using lot of tools and techniques. It is PM’s choice to use any
tools and techniques.
o Example
 Resource tracking
• PMI suggests using Resource Management Plan and Resource
Assignment matrix or utilization matrix etc.
• But in PRINCE2®, PM may use: Excel, Book, electronic tool like
Outlook (by using Shared Calendars), SharePoint list etc.
• Leadership qualities
o PRINCE2® is project management method.
o Management means implementing decisions taken by leaders.
o In PRINCE2®, Project Board takes decisions and PM implements them. PM is not
part of Project Board, but reports to it.
10
Principles
Characteristics of Principles
• Universal – applicable to all projects. If any one of the 7 principles are not followed, it is not
PRINCE2® project. We must follow all 7.
• Empowering – helps roles in the project to make decisions.
• Self-validating – if you follow them, results are self-validating.
1 Defined Roles and Responsibilities

• Projects are cross functional, involve lot of people.
• PRINCE2® provides:
o Roles that are involved in the Project with their role descriptions
 This is presented in the manual at the end of each theme
 Dedicated chapter on Roles and Responsibilities
 For each activity in the Process, responsibilities for that activity are given
11
o PM prepares Role descriptions for each role, shares with people playing those roles,
gets their concurrence, document and get it approved.
• PRINCE2® recommends for every project
o Inclusion of THREE PRIMARY STAKEHOLDERS - BUS
In BUS, B and U from Customer and S is vendor

 Business
• Provides funding for the Project
• Ensures that project provides value for money
• Executive – a role in PRINCE2® - presents Business interests in the
Project.
 Users
• Every project will impact users – end users.
• For a group of end users impacted by the Project, there must be a
representation in the Project.
• Example: For a metro rail project in a city – all citizens who are
going to use that Metro are impacted. Would it be possible for us
to talk to each citizen and get their requirements? Not possible.
There must be someone representing these group of users – that
role is called Senior User
 Suppliers
• Provide specialist or technical resources who will produce the
Project output.
• Senior Supplier represents them.
• Suppliers can be internal or external.
o Internal for small customer projects where an internal
team is executing the Project.
o Example: your office facilities department is executing
office relocation by themselves. No external vendor.
o Even though the supplier is internal, for role we consider
Senior Supplier.
 Examples
• Telecom: Project – commission of a telecom tower in a residential
area
o Business – company setting up the tower. Executive is
someone (one person) who leads this project, face of this
project i.e. accountable, gets money for this installation
12
o Users – group of end users impacted

 Internal to customer – service providers who will
be using this tower, legal team (compensation,
court cases if any)
 External to customer – area representatives
(concerns about radiation), Site owners (if not
owned by the customer – on rent or lease basis),
local police departments (for crowd control during
any situation or protest), NGOs that are protesting
this due to radiation
o Suppliers
 Tower equipment company or vendor
 Generator company
 Testing company (signal strength)
 Construction vendor etc.
 Example 2: Your PRINCE2® Training
• Imagine this course is sponsored by your company.
• Your company is Customer, Simplilearn is Supplier.
• B – Sponsor for your training. Your manager or your HR (who gives
funds for this training)
• U – You. You are attending this training.
• S – Simplilearn (not the trainer – Trainer is Team Manager) – your
sales contact or Your organization’s contact in Simplilearn.
• Board = Your manager + yourself + Simplilearn Contact
• Four Layers of Management
o Corporate or Programme management (CPM)
 Corporate word is used when your project is not executed as part of a
Programme.
 Operates from outside the Project – they manage multiple project’s
delivery (not execution – execution is internal to each project) –
coordination among multiple projects, dependencies across projects etc.
 Example:
• In any organization, resource management is a Programme.
Because for each project, required resources will be managed as a
central pool.
• In a large Programme such as Metro rail project, CPM will deal with
multiple projects – construction of metro track, parking facilities,
advertisement, recruitment of staff etc.
 A PRINCE2® Project starts when Project Mandate (a brief request to start a
Project – can be an email, purchase order, contract) is issued by CPM.
o Directing layer – Project Board
 Project Board consists of representations for BUS
 Executive, Senior Users and Senior Suppliers make Project Board.
 Operate within the Project.
 Directs the PM.
 CPM if required, interacts with Project Board.
o Managing layer – PM
13
 PM operates here.
 Focus of PM is one stage at a time (stage is a review point in PRINCE2®)
 Day to day management of the Project
o Delivering layer – Team Manager
 Team Manager comes from Supplier organization.
 Responsible for Delivery of project output.
Programme Outside the Project

CPM
Project
Directing
Inside the Project
Board
Managing PM
Team Team Team

Delivering Managers Managers Managers
• Green box indicates within the Project – So clearly, we can see CPM operating from outside.
2 Continued Business Justification

• Any project, at the beginning, the justification to launch the Project might seem relevant.
• Because projects have some duration (shorter to longer), anything can happen that can
make this justification invalid. The moment justification becomes invalid, the project must
be stopped.
• PRINCE2® provides:
o A mechanism called Business Case using which Project Board can validate business
justification of the Project i.e. whether then can continue with the Project or not.
o Every project – simple or complex requires a Business Case.
o A PRINCE2® project is broken into milestones called Management Stages. At the end
of each Management Stage, Business Case will be updated with
 Benefits that occurred due to completion of Stage – if any
 Actuals on Cost, quality, risk, scope and timeline against planned ones
before the stage
 Board reviews and evaluates justification.
o Even for detailed planning of the Project, Business Case is evaluated by Board to
decide if detailed planning can be done.
 Example:
14
• Consulting Services firms charge their customers for any work they
do. This work may involve:
o Preparing designs and plans
o Detailed designs etc.
• This work must be authorized and justified.
o At the end of the project, the complete Planned versus actual is evaluated.
• Diagrammatically, Business Case and evaluating Continued Justification is presented below.
o Stages represent milestones in the project.

o Exception is exceeding given targets on BCQRST.
o For all these projects, lot of money could have been saved, if justification was
evaluated throughout the Project.
3 Manage by Stages
• Every PRINCE2® project must be broken down into Management Stages – minimum 2.
o First stage is for planning the project
o Second stage is for reminder of the project that includes closing the Project.
• Management Stage is like financial year – year end reviews, project performance reviews,
appraisals etc. happen. Like a financial year, Management Stages never overlap but
Technical Stages (how your project is executed) can overlap. Example: you will have Jan-Jun
one cycle, Jul-Dec another cycle. But never like this: Jan-Jun one cycle, May-Oct another
15
cycle, Sept-Dec another cycle for same project. In same example during Jan-Jun cycle team
might do development, testing and documentation together.
• During Planning, Number of Stages and their duration will be arrived at.
• For each stage, a Stage Plan will be prepared by PM and reviewed by Board before the stage
is authorized (or approved.)
4 Manage by Exception
• In four management layers, each management layer will set limits on BCQRST to the layer
below it. These limits are called tolerances.
o Example:
 Cost: Project level $123000 to $129000, Stage 1: $45000 to $50000
 Time: Project level 9 to 11 months, Stage 1: 3 to 4 weeks
• Example from automobile industry:
• Exception is a forecast of missing or exceeding the tolerance.

• When an exception is forecasted (it has not yet occurred, it may occur in the future), its
impact on project objectives must be evaluated.
o Examples: for space missions to Mars, there is one window which comes every 21 or
22 years – Mars is closer to Earth. Impact of missing this window means probably
you must wait for another 22 years.
o Government law says that from a particulate date, there will be new tax system. If
you miss deadline, there would be huge penalties and legal cases. Now in this
project, you forecasted that you can’t complete by deadline
• PM comes up with an Exception Plan – that describes why this exception i.e. cause of this
exception, impact of exception, recovery options (for ex: adding more people, working
overtime, removing some scope etc.)
• Tolerances and Exceptions are at 3 levels
o Project level – provided by CPM to Board
16
o Stage level – provided by Board to PM

o Work Package level (Work Packages are created by PM and assigned to Team
Managers – that’s how work is assigned in PRINCE2®) – provided by PM to Team
Manager.
• This principle helps in economic usage of management time.
5 Focus on Product
• In PRNICE2®, Product means Scope.
• Scope
o High level requirement gathering is done in the first process – Starting up a Project –
by PM and Documented in Project Product Description - PPD
 Example: User Management (Login, Password recovery, locking users) etc.
 In construction: 4 BHK house
o Detailed requirement gathering – happens in Initiating a Project process (planning
process in PRINCE2®) = Project Product Description with more details
 Done progressively stage by stage as the Project progresses – one stage at a
time
 Example:
• Login
o User will enter login name and password
 Construction:
• Hall: 20m*15m, wall 2 brick wall, flooring – ceramic tiles 10 mm
thick, wiring etc.
o For each deliverable, a Product Description will be created by PM. These Product
Descriptions are part of Stage Plans.
o From Product Description, Work Packages will be created by PM and assigned to
respective Team Managers.
o Team Managers will create tasks from Work Packages and assign to team members.
o Example: using this class as example
 PPD – 4 days’ coverage of PRINCE2® - Introduction, Principles, Themes,
Processes and Exams – reviewed by Board and CPM (if required), approved
by Board (Your sponsor, Yourself, Simplilearn)
 PD for each day (considering each day as a Stage) OR each topic can go to
PD
• PD for each day:
o Day 1: Introduction, Principles, Organization theme, BC
theme …
• PD for each deliverable
o Principles
o Organization theme etc.
 WP are created by PM from PDs
• Organization theme – first question, explanation, review questions
 Trainer create tasks from WP
• First question – Mr X
• Explanation – Ms. Y etc.
• PRINCE2® recommends Product based Planning technique (covered in Plans theme) to arrive
at scope breakdown
17
o From PMI, we have Work Breakdown Structure which is identical to PRINCE2®

Product Breakdown Structure
o Example for annual conference
Months - PPD Annual

Conference
Weeks - PD Facilities Presenters
Hours - WP Inspection Booking Papers Slots Arrangements
Minutes - Tasks Visit venue - by

? duration ?
Take photos
6 Learn from Experience

• PRINCE2® emphasizes on Learn from experience.
• Its actual Business Case theme is big reflection from lessons learned in lot of failed
government project.
• Lessons are gathered
o From previous projects
o From team members
o Industry sources
 Associations such as NASSCOM (India), ANSI (USA), IEEE (USA) etc.
 Vendors or suppliers for example: Oracle, SAP, IBM, Microsoft
 Past surveys published by magazines and newspapers – Gartner Research
• Each Plan and Report in PRINCE2® has a place holder to publish lessons learned.
• Anyone can contribute to lessons learned.
7 Tailor to suit to Project Environment

• Each project is unique.
• Same PRINCE2® as it is can’t be applied for each project.
• Roles, stages, documents, delegation etc. can be tailored to suit to Project.
o Roles
 Mandatory roles – Executive, Senior Users, Senior Suppliers, PM, Assurance
 Optional Role – Team Manager
 Delegation of these Roles to PM can be done – Project Support, Team
Manager, Change Authority (for smaller changes)
o Documents
18
 For example, which reports from PRINCE2® are required and which are not
required.
 Plans – level of detail required.
• Tailoring is decided during Planning of the Project and documented in Project Initiation
Document.
Team exercise inputs on PROJECT FAILURES

Your Name Primary reasons for Project Failures Principles
Dilip Not involved in any failed project
Tirupati Scope Creep - Uncontrolled Scope changes Focus on product
Sahu
Vivek Defining Roles and responsibilities , managing Defined roles and resp,
Srivastava multiple activities , communication manage by exception
VINOD Poor scope definition, Quality of project did not Focus on Product, Lessons
give the expected results as envisaged by the learned
customer
Karthik assumption of being right Manage by Stages
No back loop for correction and adaptability
Anchu Not able to meet the timeline, human errors from Manage by Stages &
the resources ,quality of the product delivered Exception, Defined Roels
was not good and Resp, Focus on
product
Sandhya Scope changing multiple times and not adjusting Focus on Product
the timelines as per the scope changes
sridhar Tracking, Risk monitoring and control Manage by Stages,
Exceptions
Evandro Financial discrepancies Continued Business
Justification (Business
Case)
Michael Lack of risk assessment Lessons learned, stage by
Desmet stage
Anita unclear objectives, no proper due diligence, lack Focus on Product, Lessons
of visibility, no risk mitigation, lack of time learned, Stages, Exception,
management Defined roles and resp
vimal incorrect requirement, change priorities. Focus on product
sushal although not failed, due to project scope Focus on product
changes, new requirements in between
execution, has delayed project completion
Afsar Baig No proper communication, no proper skill set, Defined roles and resp
timelines not met.ect
Sudish Lack of Quality deliverables, improper resource Focus on product, defined
utilization, Scope change roles and resp, exception
Puneet Team not mapped properly, Project not properly Defined roles and resp,
managed, Risks not managed properly, Budget manage by stage,
issues, Team integrity issues exception, Continued
Justification
Mitrojit Quality check testing was not performed Focus on Product
correctly before the upgrade went live
Shiwaani unrealistic expectations, lack of communication, focus on product, defined
lack of funds, lack of support roles and resp, continued
justification, lessons
learned
Prakash Bad resource planning, risk mitigation plan, lessons learned, defined
process not adhered roles and resp
19
Prakash Bad resource planning, risk mitigation plan,

process not adhered
Abel quality issues,increase in cost,no proper focus, continued
management,not reaching expectations justification, defined roles,
exceptions, stages
Ankita quality not upto the mark. focus on product
Lohitha Less timeline/budget constrain/resource manage by stage,
constrain/ continued justification,
defind roles and resp
Sangeeta lack of proper planning, fail to deliver in time, stage by stage, focus on
lack of proper communication and coordination product, defined roles and
between teams/members, lack of proper resp, lessons learned
estimation etc.
Akhil A project to remove redundant data was focus o product
supposed to be removed. Clarity on scope and
requirement was problem. It failed.
20
Theme 1: Organization
• Primary stakeholders – BUS
Roles
• Executive
o Ultimate decision maker in the Project
o Accountable for success or failure of the project
o Appointed by CPM (First activity in a PRINCE2® Project)
o Owns the Business Case
o Chairs the Project Board
• Senior Users
o For each group of users impacted by the Project, Senior Users represent them in
Project.
o Provide scope i.e. requirements, resources (example: who will give sign off or
approve the deliverable, who will provide clarifications on scope etc.)
o Specifies Benefits – because after the Project is over, these users will be using the
Project output
• Senior Suppliers
o Represent a vendor or supplier organization involved in the Project.
o Provide specialist resources (Example: team members who will have necessary
skills to produce the deliverable)
• PM
o Day to day management
o One stage at a time
o Prepares all except 3 documents in PRINCE2® out of 26 documents (It would be
easy for you remember those 3 which PM doesn’t prepare – 1) Team Plan by Team
Manager 2) CheckPoint Report by Team Manager 3) Outline Business Case by
Executive))
• Team Manager
o Optional role
o From supplier organization
o Responsible for delivery
• Project Support
o Administrative and technical support to PM
o Manage documents, registers on behalf of PM
o Facilitate meetings, conference room bookings, travel of team members
o Arrange printers, stationary etc.
o By default, if no one is assigned, PM is expected to play this role.
o Typically, PMO (Project Management Office) can play this role.
• Change Authority
o Established with a dedicated focus only on managing changes
o Change Authority reviews each Request for Change (in PRINCE2®, Change Request
CR is called as Request for Change – example scope changes after approval) and
suggests Project Board what to do.
• Assurance
o Independently monitoring the Project
o Business Assurance
21
 Reports to Executive
 Focus is on how money is spent on this Project
 Example: why money was paid to supplier before invoice date?
o User Assurance
 Reports to Senior Users
 Focus is on scope and quality
 Example: did you get sign off? If yes, please show to me
o Supplier Assurance
 Reports to Senior Suppliers
 Focus is on delivery and execution
 Example: last week, one of the resource, worked overtime. It is chargeable
to client. Did you claim it?
o Project Assurance
 Reports to Board as a whole
 Focus is on complete Project, PM
Four layers of Management
• CPM – Outside - Strategic long term planning and strategy

• Directing – Project Board (Board = Executive, Senior Users and Senior Suppliers)
Midterm and short term plans in the Project
• Managing – PM day to day management
• Delivering – Team Manager
Role assignments
• For small internal projects, Executive and Senior User roles can be played by same person.
• Executive should never play Senior Supplier role.
• Executive and PM should never be the same person. And these roles can’t be delegated.
• PM should never be given any assurance roles.
22
Organization theme across processes

Starting Up • Executive, PM, Senior Users, Support and Assurance are
appointed
• Senior Supplier may be appointed
• Stakeholder Identification
Directing a Project • Project Board operates here
• CPM can interact with the Project via Board
Initiating a Project • Supplier’s delivery teams or execution teams are finalized
• Senior Suppliers can be onboarded if not done already
• Change Authority must be established
• PM prepares Communication Management Strategy – that
contains Stakeholder identification, communication needs of
these stakeholders and reports (except one report) with the
frequency
One Stage at a time, Stage by Stage
Controlling a Stage • PM creates Work Packages and assigns to respective Team
Managers – i.e. work allocations happens here
Managing Product Delivery • Team Managers work to produce the Deliverable or output
Managing Stage Boundary • Review of Stakeholders, communication requirements, new
onboardings for next stage if required
End of the Project as part of Last Stage
Close Project • All roles involved in the Project are evaluated
• All roles are released from the Project
Team Exercise inputs on Roles to PRINCE2® roles mapping

Input by Roles mapped to PRINCE2® Roles
Karthik Delivery Head (Vendor) – Senior Supplier
PM - PM
Technical lead – Team Manager
Developer – Team Member
Mitrojit PM - PM
TM – TM
Coordinators – Project Support
Engineer – Team Member
Tester – Team Member
sanjay Business Analyst (Customer) – Senior User or User Assurance
Business Analyst (Vendor) – Team Member
Vivek Srivastava Business Analyst (Customer) – Senior User or User Assurance
PM – PM
Sponsor – Executive or CPM (If operating outside the Project)
Executive/Decision Maker - Executive
Support - Support
Reviewer – Senior User or User Assurance
Change Authoriser – Change Authority
Vimal Pal Business Analyst (Customer) – Senior User or User Assurance
QAC – Team Member
Release management – Team Member
Amulya Program Manager – CPM
Project Manager – PM
Business Analyst (Customer) – Senior User or User Assurance
23

Team lead – Team Manager
Technical Architect – Team Member
SME (Customer) – Senior User
SME (Vendor) - Team Member
Analyst – Team Member
QAC Team – Team Member
Client – Executive or CPM
VINOD Project manager - PM
PMO - Support
PMO Head – Project Assurance
Site manager – Team Manager
Machine specialist – Team Member
Team leader for start up – Team Manager or member
Prakash QAC – Team Member
DEVELOPER – Team Member
TL – Team Manager
PM - PM
DM (Supplier) – Senior Supplier
BRM (Supplier) – Senior Supplier
Latheesh Co-ordinator - Support
Vendor Development – Not sure, but can be Senior Supplier
Team Leader – Team Manager
Akhil Client Partner / Sponsor – CPM or Executive
Program Manager - CPM
Delivery Lead (supplier) – Senior Supplier
PM - PM
Solution design – Team Member
Test Team – Team Member
Dev team – Team Member
Change management – Change Authority
Michael PM – PM
Stakeholders – If from customer, can be Senior Users and Assurance
Sponsor - Executive
Team Mgr - TM
Supplier – Senior Supplier
Senior User – Senior Users
Tirupati Sahu PM - PM
Senior Delivery Manager – If from Supplier, can be at CPM Level
Delivery Manager – if from Supplier – Senior Supplier
Translator – Team Member
Team Lead - TM
Team member – Team Member
Test Manager – Team Member
Tester – Team Member
Dilip Mobilization Specialist – Team Member
Mobilization Associate Manager – Team Manager
Project Analyst – Team Member
Project Senior Analyst – Could be PM or Support
Sangeeta Mondal Account Manager – If at Program level, CPM
Group Lead – If at project level and from Vendor, Senior Supplier
Project Lead - PM
Tower Lead – SME or Team Member
Team Lead – Team Manager
24
Shift Lead – Team Member

Team Member - same
Evandro Business Analyst (Customer) – Senior User or User Assurance
Project coordination - Support
Team manager - Same
Project assurance - Same
Board - Same
sushal Program director - CPM
Prm mgr - CPM
PM - PM
DEV lead – Team Manager
Test lead – Team Member
Admin - Support
PMO – Support or Assurance
Governace Manager - Assurance
Netword admin - Support
QA/Audit mgr – Team Member
Abel Project planner – Team Member
Coordinator - Support
PM – PM
Project execution – Supplier team
PMO – Support and/or assurance
Lohitha Business Analyst (Customer) – Senior User or User Assurance
Quality assurance – Team Member
Project Manager - PM
Team Manager - TM
Team Lead - Member
Team member - Member
Satish AND Sponsor - Executive
Anchu PM - PM
Team Manager - TM
PM - PM
QA - Member
Specialist TM - TM
Sandhya PM - PM
Business Sponsor - Executive
IT Lead – Team Manager
Change Lead (This has the Training & Communication Leads) – Change
Authority
Testing Lead - Member
Support Lead - Member
Subrata Planning - Member
Cluster Manager - CPM
Zonal Manager – Senior User or Executive if from Client end
Surveillance Manager - Assurance
Project Manager - PM
O&M Manager – not sure, can be TM
SCM - Member
25
WH Manager – not sure, can be TM or member

Sudish Account Delivery Head – Outside Project, mostly CPM
Delivery Manager Program Director - CPM
Program Manager - CPM
Project Manager Quality - PM
Architect - Member
Technical Team - Members
Anita PMO – Support or Assurance
QA – Team Member
Ankita Consultant – If from client can be Senior User, if from vendor member
SME – same as above
Associate- member
Assistant manager - TM
PM - PM
SDM – can be Senior Supplier
Team Lead - TM
S/W E - Member
Quality analyst - member
Director – CPM or can be Executive if operating within the Project
Account manager – Senior Supplier if from vendor side
26
Theme 2: Business Case

• Document or a mechanism that justifies ongoing investment in a Project.
Development of Business Case
• High level - Outline BC Verify • Planned versus actual Confirm

• Detailed BC updates
• Continued Business • Done by PM • Confirmation of Benefits so
Justification is verified RoI can be evaluated
• Before planning, At the end
of each stage, when there
is an exception
Develop Maintain
Develop
• At the beginning of the Project, in Starting Up a Project process (first process) Executive will
drive PM to arrive at high level Business Case called as Outline Business Case. As per book
and for your exam, Outline BC is prepared by Executive.
• Before execution, while Planning the project in Initiating a Project process (third process),
PM will add more details to Outline BC and makes it Detailed BC.
o Detailed BC = Outline BC + More details (or you can say Outline BC version 2.0)
• Outline BC will be part of a mother document called Project Brief. Project Brief is a folder or
binder that helps to keep relevant documents together for decision makers.
27
• Detailed BC will be part of another Mother document called Project Initiation Document.
For better resolution image, check this link:

http://community.simplilearn.com/threads/difference-between-project-brief-pd-ppd-and-
pid.22048/
Verify
• Project Board verifies Business Case throughout the Project – to evaluate continued
Business Justification.
o At the end of Starting Up a Project process (first process), Board verifies Outline
Business Case to decide if detailed planning of the project can be undertaken
o At the end of Initiating a Project process (third process where planning is done),
Board verifies Detailed Business Case (which is nothing but Outline BC + more
details) to decide if execution of the Project can commence or not.
o At the end of each management stage except last one, Board will verify updated
Detailed BC (Updates are about planned versus actual from completed stage) to
decide if the next stage can be authorized or not. (this in line with Manage by Stages
principle)
o At the end of the Project (as part of last stage), Board will do final verification of
updated Detailed BC – COMPLETE project level Planned versus actual
o When there is a project level exception, Board will verify updated Detail BC along
with Exception Plan
Maintain
• PM will update Detailed BC at
o The end of each Management Stage before sending it to review by Board in
Managing Stage Boundary process (repeated at the end of each stage except last
one, Close Project process is executed at the end of last stage)
28
o If there is any exception, PM will update Detail BC with actuals and prepares
Exception Plan.
Confirm
• Confirm is all about confirming benefits and evaluating Return on Investment.
• These Benefits may occur during the Project or after the Project.
o Examples:
 In an IT System, done in phased manner, at the end of a phase there may
be some benefits.
• Online booking of film tickets
o Phase 1: User registration
o Phase 2: theatre, seat and show management
o Phase 3: payment integration
• After Phase 1: benefits are pre-registered users, do marketing with
producers or distributors.
• After Phase 2: we can start preview bookings, premier bookings
• After Phase 3 (last phase): Project benefits are now part of
Operations – KPI (key performance indicators – such as daily
revenue, food and beverages revenue etc.)
 Apartment Complex
• As a tenant: benefits (saving on house rent – after the project,
deduction on home loan i.e. tax exemption – during the project
also)
• As a promoter: benefits (pre-booking before launch – before or
during the project, offers to shops, ATM, parking places etc. –
during the Project, after launch – sales of unsold apartments –
after the project)
• Whenever benefits occur, they must be measured and reviewed so that Return on
Investment can be evaluated. These measurements will come from Operations. Reported by
PM, validated by Senior Users – during the Project.
• After the Project – no roles will continue in the Project. PRINCE2® recommends preparing a
Benefit Review Plan (along with Detailed BC in Initiating a Project process) containing:
baseline benefits (what are current measures), what are expected benefits, who will
measure them, how to measure them, when measure them etc. by PM. At the end of the
Project, Project Board will transfer BRP to CPM so that they can do post project benefit
reviews.
Benefits, Dis-benefits, Output and Outcome

• Benefit – measurable and achievable improvements. Specified by Senior Users.
o Ex: Profits, increase in revenue, increase in employee satisfaction, more return
customers, increase in market share etc.
• Dis-benefit – any benefit which is perceived (seen) negatively by few stakeholders
o Ex:
 Office relocation project
• Few employees there might be more distance to travel
• For some employees, they may have to move their families
including children, their schools etc., to new location
 Automation tools implementation (automotive – robots, IT – CI Tools)
29
• Few employees may be laid off

 Your PRINCE2® Training
• Your weekend is gone
• Output
o Final deliverable of your Project
o At the end of the Project, this output will be released or transitioned to Operation
teams.
• Outcome
o Result of change after using the Output
o Example:
 ISRO – Indian Space Research Organization launched Mars mission
• Mars Mission – Project
• Benefits – Planet exploration, Colonialization in the future
• Dis-benefits – this is high priority, some other launches may be
delayed
• Output – the satellite or probe
• Outcome – ISRO’s reputation increased, repeat orders from many
countries for launches – Example: 104 satellites in one launch
Contents of Business Case

• Business case is used to secure funding for the Project. When you ask money, there will be
lot of questions.
• BC is anticipating those questions and preparing answers for them.
• Questions addressed in BC: WHY, WHAT, WHEN, HOW MUCH (cost), WHEN WILL I GET MY
MONEY BACK, WHAT IF (Business questions are answered in BC)
• Other important questions: WHERE, WHO, HOW (solution) – answered by Project
Approach (technical questions are answered in Project Approach)
• Project Brief and PID keep these two docs together along with plans, role descriptions,
project organization hierarchy etc. so Board can review and take better decisions.
1. Executive Summary (appears first, but written last)
• Summary of complete Business Case for decision makers to quickly glance and
decide
2. Reasons – WHY
• Project Background
• Customer current pain points
• Why this project is required
3. Business Options – WHAT (NOT HOW – HOW will be technical and comes from Approach)
• What should be done to resolve the issues or problems mentioned in Reasons.
• Do Nothing – mandatory. Let the current situation continue. Act as a quantifying
agent for other options.
• Do minimum – with least possible time and effort what can be done.
• Do something – what other options are available. Example: make or buy
4. Expected Benefits – WHAT WOULD BE THE IMPROVEMENTS
• Measurable and achievable improvements
• Specified by Senior Users
30
5. Expected Dis-benefits
• Dis-benefit is a benefit but seen as negative by few stakeholders.
6. Timescale – WHEN
• Project duration
• Benefits – when they will occur
7. Costs – HOW MUCH
• Project Cost
• Maintenance Cost
8. Investment Appraisal – WHEN WILL I GET MY MONEY BACK
• Few techniques from PMI can be used here (IRR, Payback period etc.)
9. Major Risks – WHAT IF
• Major uncertainties that can impact the BC (tracked using Risk Register)
Example Business Case

Heading Project 1: Project 2:
Your PRINCE2® training Implementing an IT Payroll system
replacing existing paper based
system
Reasons • Career growth • Lot of delays in processing
• Client project payroll
• Salary hike • Lot of errors due to
• Better position reconciliation and wrong
• Designation Change calculations
• Time consuming effort
• Go green - less paper
Business Options • Do nothing – let me do it • Do nothing – let current
later. Not now situation continue (because in
• Do minimum – can I take next six months, our company
exam direct or can I skip the might be acquired by another
exam go only for training or one OR new tax system is coming
can I do only Foundation? in next year so let us do by that
• Do something – Google and time)
then decide on Simplilearn • Do minimum – can we do it in
shift system or can we pay
alternate days based on
department
• Do something – IT System
Expected Benefits • Career growth – increase in • Faster payroll processing (from
number of team member earlier 3 days now to 1 day)
reporting to you • No errors (0 errors in payroll
• Salary hike calculations)
• Designation Change
Disbenefits • More responsibilities • Accountants may not syphon
• Failure to do the role money now
• Forced implementation at • Some people may lose their jobs
work • Issues with IT system
• During training loss of
weekend
Timescale • 4 Days for training • TBD (feeds from Approach)
31
• Exam
Cost • N/A • TBD (feeds from Approach)
Return on • •
Investment
Major Risks • Exam failure •
• Interruptions in training
• Missing the exam
Business Case theme across processes

Starting Up • Since less information would be available at the beginning of the
Project, high level Business Case called as Outline BC is prepared
by Executive.
Directing a Project • Project Board reviews Business Case throughout the Project for
evaluating continued business justification.
Initiating a Project • Outline BC prepared in Starting Up, more details added due to
planning.
• Benefit Review Plan is also prepared that covers benefit reviews
during and after the Project.
Controlling a Stage • Work is getting completed – so PM will focus on collecting
actuals
Managing Product Delivery • Team Managers work to produce the Deliverable or output and
report back actuals to PM
Managing Stage Boundary • PM will update the Detailed BC with actuals from the stage and
prepare the document for Board’s review.
Close Project • Final update of Detailed BC is done by PM with last stage actuals.
• Board will do final verification against original planned versus
actual.
32
Theme 3: Quality
• Delivering a product or output meeting customer quality expectations
• From ITIL® (from same family as PRINCE2®)
o Fit for Purpose
o Fit for usage
Quality Planning
• Quality relates to Scope – they are inseparable.
• Scope in PRINCE2®
o Documented at 3 levels
 Project – Project Product Description (same as your BRD or SRS or Product
Backlog in Agile)
 Stage – Product Description (Module spec, Use Case, Sprint backlog in agile)
 WP – Work Packages (Work, User Story in Agile)
Project Product Description Product Description Work Package
• Composition – output • Identifier – unique ID • Date (allocated date)
to be created i.e. for each deliverable • Team Manager
complete project • Time and purpose authorized to work on
scope • Composition – scope this
• Derivation – what are of this deliverable • Description – scope of
inputs used in creating • Derivation – inputs this WP
project output – ex: used in creating this • Techniques, processes
existing design, output and procedures –
reusable components, • Format and more technical
libraries presentation – in • Development
• Development skill which environment it Interfaces
required – ex: J2EE, will be used, tested • Operational and
WebSphere AS, CSS, etc. maintenance
HTML 5, Oracle etc. • Development skill interfaces (once WP is
• Customer’s quality required live, operations will
expectations – project • Quality criteria – maintain, this
level expectations specific, measurable information is to be
• Acceptance criteria – • Quality tolerance transitioned to
feed into project level • Quality Method (how Operations)
test plans testing will be done – • Configuration
• Project level quality for ex: load testing, Management (source
tolerances automated testing, control, copies,
• Acceptance method – regression test etc.) versions etc.)
how you can get sign • Quality skills required • Joint agreements
off ex – UAT • Quality (between PM and TM
• Acceptance Responsibilities + Teams – such as
responsibilities – who timings, reviews etc.)
will give sign off, who • Tolerances
will review and test • Constraints
etc. • Reporting
Arrangements
(CheckPoint report by
Team Manager to
PM)
33
• Problem and
escalation matrix
• Extracts or references
– for ex: ISO standards
to be followed,
methodologies to be
followed etc.
• Approval methods
o Construction example
 PPD – Complete house or building requirements
 PD – each floor plan or each room plan
 WP – in each floor – flooring, electrical, roofing, painting, plastering, etc.
• Acceptance criteria
o Must be prioritized
o PRINCE2® suggests using MoSCoW Technique (comes from DSDM UK)
 Must have
 Should have
 Could have
 Won’t have (do later)
 Example
• Mobile Phone
o Must have: calling, battery, display, text messages
o Should have: contact management, camera, additional
storage, ear phones
o Could have: better resolution, more apps, 3 lenses camera
o Won’t have: wireless charger, tempered glass cover, apps,
case
• From Microsoft, real example bad prioritization
o Mistakes or lessons learned from Windows Vista
 Many variants – Starter, home, home premium,
business, enterprise and ultimate
o Windows 8 variants
 Lesser variants – home, pro, enterprise
• PM also prepares Quality Management Strategy in Initiating a Project process
o It contains
 Quality Management Procedure
 Tools and techniques (Six Sigma, automated or manual tests, external
independent testing agencies)
 Records (Evidences of approval, defects, proofs etc.)
 Reports
 Timing of quality activities (schedule of testing, UAT timelines etc.)
 Roles and Responsibilities
• Producer – one role which is accountable – Senior Supplier (not
Team Manager – because Team Manager is responsible)
• Reviewers – multiple people who will review and test the
deliverable – inputs will come from Senior Users
34
• Approvers – multiple people (or one depends on the project) who

will sign off the deliverable
• PM also prepares Quality Register – a tracker for planned quality activities
o It doesn’t contain defects. Defect in PRINCE2® is considered as Issue. So, defects in
PRINCE2® are recorded in Issue Register.
Defect will be in Issue Register
Quality Control
• During Project Execution, the deliverable is to be produced as per agreed quality and
acceptance criteria i.e. Specifications to be made in line with Scope – fit for purpose and fit
for usage
• Focus is on defect free product
• PRINCE2® prescribes Quality Review Technique (meeting to review the deliverable and test
it, approve it) to be used at the end of each management stage (or when necessary) to
provide an opportunity to customer to test and review the deliverable. It is also known as
Product Demo. In agile, this is Sprint Review.
o Objective:
 Present completed work packages to users and seek their feedback (test
them), approval
 Involve stakeholders so they can see project progress
 Establishes a baseline for approved products for Change Management
o Roles:
 Chair: who chairs and leads the meetings, takes decisions. Usually
Executive.
 Reviewers: users who will test and submit questions, seek clarifications etc.
 Approvers: who will approve the shown products – sign off.
 Administrator: who facilitates this meeting, arranges for logistics etc.
Support can play this role.
 Presenter: PM presents and moderates this meeting
 Assurance: independent review, assessment and suggestions
o Activities
 PM presents the completed deliverables
 Reviewers review and provide feedback
 Chair and Approvers discuss and decide on approval
 Chair will notify PM and teams any pending items and seeks action plan
35
Quality Assurance
• Appointed by CPM (external to the Project)
• Focus is on process, standards (not on deliverable)
• Must be independent of team and Project
• Can work with Project Assurance (QA is senior in hierarchy when compared to PA)
Quality Assurance difference with Project Assurance

• Appointed by
o QA  CPM
o PA  Board
• Focus area
o QA  Process
o PA  Project in particular PM
• Who can play this role?
o QA  Independent of team and Project (operates from outside the Project)
o PA  independent of team, but part of Project (operates within the Project)
Project Assurance
Operating within the court
Can’t be from any two
teams – independent
Focus is on current game
(Product)
Quality Assurance
Operating outside the
court i.e. Project
Can’t be from any two
teams – independent
Focus is on how the game
is conducted (Process)
In the exam, if a question comes on QC and QA about

Process and Product, you may get confused.
36
Remember this tip: put them in alphabetical order.

Process and Product – alphabetical order
QA and QC – alphabetical order
• Which of these is focused on delivering the product?
o QP
o QA
o QC
o Answer: Product  QC
• Which of these is worried about corporate policies and standards applicable to the Project?
o QP
o QA
o QC
o Answer: Policies  QA
Quality Theme across the processes

Starting Up • High level requirements i.e. scope is gathered and documented
in PPD
• Project Approach is also selected – solution to the Project
Directing a Project • Project Board will participate in Quality Reviews (Product Demo)
and approves or finds defects with deliverables presented.
• Project Board will also focus on Quality Control to ensure that
the deliverable is produced as per given scope meeting
acceptance criteria
Initiating a Project • As part of Quality Planning, PM will prepare Quality
Management Strategy (guidelines about how quality will be
managed in the Project, standards etc. to be used in the project)
• PM will also setup Quality Register to track planned quality
activities.
• PM will also refine or add more details to high level PPD
Controlling a Stage • PM is focusing on getting deliveries meeting acceptance criteria
i.e. carrying out Quality Control
• PM also initiates Quality Review or Product Demo when
required.
Managing Product Delivery • Team Managers work to produce the Deliverable meeting
acceptance criteria – primary focus on Quality Control
Managing Stage Boundary • PM will review how quality was managed in the completed stage
and make necessary course corrections for upcoming stages.
Close Project • Board will do final verification of original scope from PPD with
completed deliverables – for project approval and sign off.
• QA will compile their reports about Process compliance etc.
37
Theme 4: Plans
Levels of Plan
• Project Plan
o Prepared by PM in Initiating a Project process
o Due to planning stage by stage, the Project Plan may not contain details of all stages
of the Project now. Project Plan will (should) contain place holders for all these
stages.
o These details will be added just as soon as that stage plan is prepared.
• Stage Plan
o Initiation Stage Plan is prepared by PM in Starting Up a Project process (first
process)
 Initiation Stage Plan covers only initiation i.e. first stage of the Project i.e.
Planning phase of the Project
o For all other stages, Stage Plan is prepared by PM in Managing Stage Boundary
process – PMI calls it as Progressive elaboration – in PRINCE2® Manage by Stages
principle
 At the end of current stage, PM will start preparations for upcoming stage
 Review of BCQRST will be done, BCQRST for upcoming stage will be
reviewed and finalized
• Team Plan
o Prepared by Team Manager in Managing Product Delivery process.
o These plans are optional.
o Usually, TM will prepare Team Plans along with PM when PM is preparing Stage
Plan.
Exception Plans are NOT a new level of Plan

They are at same level as Stage or Project
Watch out for Trap: 4 levels of Plan (wrong answer)
38
Planning Approach in PRINCE2®
Design the Plan

• Find out who is your audience (CPM, Board, Assurance, Teams etc.)
• Find out what level of detail they want to see (Year, Months, weeks, days, hours)
• Find out what kind of presentation is expected
o Milestone chart
Phase 1
July 20
Today
o Gantt Chart (created in MS Project)
• PRINCE2® provides only one template for all plans.

39
• It contains:
o Description (tells which plan it is: Project, Stage, Team or Exception)
o Prerequisite (must be there for the Plan to succeed examples: approvals, funding,
resources etc.)
o External dependencies
o Planning Assumptions (you think they are there, but they may not be examples:
resources are available as per dates – must be validated regularly. Can become risks
later)
o Lessons incorporated
o Monitoring and Control (how this plan will be governed i.e. review meetings, status
meetings, communications during the plan duration and reports etc.)
o Budgets
 Time and cost
 Change Budget – dedicated money kept aside only to fund Request For
Changes (scope changes, enhancements)
 Risk Budget – dedicated money kept aside only for funding risk mitigation
(in PRINCE2® mitigation is called as Response). Industry standard is 10% as
risk budget of total project budget.
 Project Budget = Cost + Change Budget + Risk Budget
o Tolerances – on BCQRST
o Product Description – Scope of this Plan (can be a link to PD)
o Schedule – any form as required – Excel sheet, milestone, calendar, Gantt chart etc.
Define and Analyze the Products

• Scope must be broken down
• PRINCE2® provides Product based planning for this step.
Product based planning technique – 4 step process

• Step 1: Create Project Product Description
o High level requirement gathering is done in the first process – Starting up a Project –
by PM and Documented in Project Product Description - PPD
o Detailed requirement gathering – happens in Initiating a Project process (planning
process in PRINCE2®) = Project Product Description with more details
• Step 2: Create Product Breakdown Structure
o Create first level of deliverables
o Then expand them further to create next level of deliverables and continue till you
reach lowest level.
o PBS in PRINCE2® is same as WBS in PMI.
o Example:
 Project: An IT project to develop a web based application to manage
Dealers
 Level 0: Dealer Management System
 Level 1: modules such as
• Dealers
• Products
• Orders
• Fulfillment
• Service Request
40
 Level 2 for Products:

• New Products
• Existing Products
 Level 3 for New Products
• Add new Product
• Modify Product or Edit Product
• Retire Product
 Level 4 for Add New Product
• Create a web page with forms At this level, we may not be able
• Create database tables to go down further as we see
• Write business logic technical activities or tasks.
• Write validation
• Send for approval
o Few guidelines on how to create levels
 Based on functionality
• For example:
o Construction: first floor, second floor etc.
o IT: Masters, transactions, reports, interfaces etc.
o Bank: Salaried accounts, current accounts, loans, cards etc.
o NGOs: community development, leadership, social
activities, health, educational etc.
 Based on geography
• For example: useful for a global rollout of a system
o Asia Pacific
o Europe
o North America
• Step 3: Write Product Descriptions
o For each level in the PBS, scope along with acceptance criteria is documented in PD
o PD is part of Stage Plan.
• Step 4: Create Product Flow Diagram
o Sequence deliverables
o Example:
 New product –
• 1 – New product entry
• 2 – Edit product
• 3 – View product
• 4 – Retire Product
o 4.1 Send for approval
o 4.2 Regional manager approval
o 4.3 Global VP approval
o 4.4 Soft deletion
Identify activities and dependencies

• From Flow diagram, identify activities required and dependencies between activities.
Prepare Estimates
• Step 1: for each activity, identify the skill required or expertise required.
o Example:
41
 A simple building – normal skill is enough

 A national monument – specialized skills may be design expertise
• Step 2: now calculate effort required
o Example
 A person with 2 to 5-year experience in a task may take X hours
 A person with 1 year experience on same task may take X+Y hours
 From this, you arrive at effort
 Billing to be paid is on effort
 Example:
• 2 to 5-year person: $22/Hr. So, 5 hours = 5*22= $110
• 1 year person: $10/Hr. So, 8 hours = 8*10 = $80
Prepare the Schedule

• Using activities and Product flow diagram, plot the schedule
• For each activity provide its start date and end date (end date = Start date + effort)
• In PRINCE2® time tolerance can act like a buffer.
Document the Plan

• PRINCE2® gives you a document template for Plan.
• Using that template (or any other as per tailoring such as MS Project, Excel etc.) document
the plan, get it reviewed and approved.
Analyze Risks
• For all the steps above, risks can be identified.
• Example:
o During PBS, we find multiple levels with many dependencies. Risk – scope is
complex so defects may be more
o During Product Flow diagram, it was identified that several activities have a
dependency on an important activity. Risk – if that important activity is delayed, all
these activities may be delayed causing project level exception.
Exceptions
• In four layers of Management, each layer sets tolerances (or agreed limits – lower and
higher) to the layer below it.
• These tolerances set at 3 levels: Project, Stage and WP
• Exception is a forecasted tolerance breach i.e. forecast of exceeding tolerance limit.
• Exceptions occur at Project and Stage level only. For WP, there are no exceptions. Team
Managers working on WPs must raise issues to PM not exceptions.
• How exceptions are handled:
o Step 1: PM must create an Exception Plan – at same level as Stage or Project where
exception is forecasted. This is because, the original plan is no longer valid due to
exception and it must be revised.
o Step 2: This plan must be reviewed and approved. Till the plan is approved, Work
can’t continue.
 Stage Level: approval is from Board
 Project level: approval is from CPM
42
• Illustrative example
o Imagine a Project with 3 stages = 1 IP + 2 more.
o Tolerances for this example, let us consider time.
 Project: ± 3 weeks
 Stage 2: ± 1 weeks
 Stage 3: ± 2 weeks
o Situation 1:
 We are at 3rd week of Stage 2, where 2 more weeks to go.
 PM is in Weekly Status Meeting. Team Manages raise a concern that there

is a strike happening for 1 week next week. They will not be able to
complete the deliverable in next 2 weeks remaining, they need 4 more
weeks
• Planned: 5 weeks
• New target: 7 weeks (today 3rd week + 4 weeks)
• Tolerance we have: ± 1 weeks
• Situation: Exception
 Step 1
• PM will revise current stage plan (which is approved for 5 weeks
and no longer valid because we need 7 weeks now).
• Exception Plan = current stage plan + reason for 1 week extra +
recovery options:
o Extending time tolerance by 1 week (if possible, borrow
from next stage)
o Ask resources to work overtime – pay the effort
o Descope i.e. remove any items if Senior Users agree
o Alternate work locations
 Step 2:
• Board will convene a meeting to discuss about exception.
• PM will present options available and revised targets for each
option
o Asking resources to work overtime for 1 week – will cost
$700
o Alternate work locations – will cost $450
• Board will evaluate source of this exception – strike (external). Is
that a change? Is this a risk? YES. i.e. Exception due to Risk
• Issue means something that occurred already, risk is something
that is going to happen.
43
• Board will explore if they can use Risk Budget. Risk Budget should
have sufficient funding if not Board may revise it
• The extra money required for working overtime is funded from Risk
budget.
• Exception Plan is approved.
• Once approved, it is no longer exception. This Exception Plan now
becomes Stage Plan.
o Situation 2:
 We are in Stage 3 last stage. 1 week gone. 4 weeks remaining.
 Supplier has gone bankrupt.
 Complete development team from supplier is not going to continue.
 New supplier onboard process takes 3 months.
 Exception: Yes. We can’t complete the project in next 4 weeks. Level:
Project level
 Step 1:
• PM prepares Exception Plan at Project level
• It will contain:
o Current Project Plan + reason for exception + recovery
options:
 Hold the project till new supplier comes in.
 Invoke BCP – Hire contractors
 Outsource
 Cancel the Project
 Step 2:
• Board will take this Exception Plan to CPM.
• CPM will review situation may try to explore other options (asking
some other project team with same skill to work on this project)
• CPM will approve exception plan – which will become revised
Project plan
Plans theme across processes

Starting Up • High level planning is done
• Initiation Stage Plan is created by PM
Directing a Project • Project Board will review all plans and may approve or
disapprove them.
Initiating a Project • Detailed Planning is done
• PM prepares Project Plan
Controlling a Stage • PM is using Stage Plan to monitor and control the Stage
Managing Product Delivery • Team Managers create Team Plans from Work Packages
Managing Stage Boundary • PM will prepare the Stage Plan for upcoming Stage. If the
upcoming stage is the last stage – it includes Closing the Project
activities.
Close Project • Final verification of original project plan versus actuals are done
44
Processes – Part 1
Overview of each Process
• Starting Up a Project – SU
o Do key appointments = Executive, PM, Senior Users, Senior Suppliers (if required),
PS, Assurance
o Do high level planning = high level PPD, Outline BC, project approach
o Minimum foundation for the Project
• Directing A Project – DP
o Direction throughout the Project to the PM
o Interface for CPM
o Project level focus
o All approvals and authorizations
• Initiating a Project – IP
o Detailed planning – solid foundation for project
o Lot of documents created = 4 Strategies, 3 registers, more detailed PPD, BC, Project
• For each Management Stage – two processes running together
o Controlling a Stage – CS
 Focus on Issue and risk control
 Monitoring and Controlling the stage in execution
 Reporting highlights of the stage – Progress information of the Project
o Managing Product Delivery – MPD
 The process where deliverable is created
 Teams operate here
• At the end of each management stage except last one
o Managing Stage Boundary – MSB
 Plan for upcoming stage – prepare for milestone review
 Update documents so that board can decide
• Close Project – CP
o Fixed reference point for closing the Project
o Handover of deliverable
Which role operates in which process

• CPM – no direct process. But if required, they will operate via Project Board in DP process.
• Board – only one process – DP
• PM – FIVE processes – SU, IP, CS, MSB, CP
• TM – only one process – MPD
To remember these easily,

PM doesn’t operate in “D” processes.
45
Process Flow
46
Theme 5: Risk
Definitions
• Risk
o Uncertain event, if it occurs it can cause damage to Project Objectives – BCQRST
• Types of Risk
o Threat
 Effect of the risk i.e. impact is negative
o Opportunity
 Effect of the risk is favorable (Positive)
o Example: Space travel – contains lot of threats (loss of human life, invalid
experiments, impact with earth on re-entry of failed missions) but also
opportunities (more knowledge about planets, galaxies, asteroids etc.)
• 3 Components of every risk
o Source
 The cause of the Risk
o Area of Impact or event
 Which of the Project’s Six objectives BCQRST that are impacted by the risk
o Effect of the risk
 Impact of the risk
o If we understand these 3 components, we can plan for better response (in
PRINCE2® response means mitigation)
o Example
 Candidates attending interviews with misleading information
• Source of the risk: candidate and the resume
• Area of impact: Benefit (delivery might be impacted due to fake
experience, company brand image may come down, Integrity
losses), Cost (due to lack knowledge – lot of rework, missing
deadlines), Quality (too many defects), Risk (Integrity, fraud),
Scope (lot of rework, Lesser quality etc.) and Timelines (loss of time
in rehiring and KT etc.)
• Impact:
o Low: if the project is small and internal (example:
employee leave application)
o Medium or high: in banking industry
• Risk appetite
o An organization’s attitude towards risk – i.e. how much risk an organization is
willing to take
o Knowing risk appetite of your client will help you
 To understand how missed deadline will be taken
• Example 1: for few companies, if you miss the project by 1 week,
big escalation – risk appetite with respect to this project is low.
47
• Example 2: for few companies, if you miss a project by 1 month, no

big escalation - risk appetite with respect to this project is more
 Companies with more risk appetite may have higher risk budget (so PM can
look for options such as hiring contractors, asking team to overtime that
will be paid etc.)
• Risk Probability
o Likelihood of risk occurring or chances of risk occurring
o Examples:
 At the beginning of the project, the probability of missing deadline is less.
Whereas towards end of the project, the probability of missing deadline is
more.
 If your family is prone to diabetics, more chances i.e. more probability of
you also getting it.
o Expressed in a scale rating: High (5), Medium (3), Low (1) (another example: Very
low:1, low:2, medium or average:3, high:4, very high:5)
• Risk Impact
o The effect of the risk once it occurs – must be forecasted to support better decision
making in planning the response
o Examples:
 If a project is delayed by 1 week, we may lose $10000 worth benefits. –
Impact is medium or high.
 If that project is delayed by 2 days, we may lose $1500 worth benefits –
impact is low.
o Expressed in a scale rating: High (5), Medium (3), Low (1) (another example: Very
low:1, low:2, medium or average:3, high:4, very high:5)
• Risk Proximity
o How soon the risk is likely to occur – understanding this will help to plan when to
respond for the risk
o Examples
 In flights that involve some transit (getting down at one airport and taking
another connecting flight)
• Gate and terminal announcements for connecting flights – are not
confirmed until the last minute
• All airlines – if they have connectivity – display connecting flight
information almost 1 hour before landing.
o In PRINCE2®, Proximity can be expressed as:
 Imminent – immediate – about to happen
 Within the Stage
 Within the Project
 Beyond the Project
o Based on proximity, early warning indicators can be created to monitor risks
 Example
48
• In cyclones, proximity drives lot of decisions such as when to

evacuate, when to sound which level of warning.
Risk Management Procedure
Risk management objective (3 objectives) is all risks must be

identified, assessed and controlled.
In the exam, don’t get confused with Risk management
process – it is 5 step process which are Identify, Assess, Plan,
Implement and Communicate
In Risk Management Process, communicate is a parallel step

– it is repeated after each step
Identify
• Risks are events that may happen in the near future so you must identify them (forecast)
before they occur
• Few identification techniques
o Document analysis
 Example 1: the system must be up always. – Risk is “always is ambiguous”.
This is the reason why we use 24*7*365.
 Example 2: if during UAT, defects are found more than 20, last payment will
be withheld. – Risk is “missed payment for supplier”
o Brainstorming
o Risk Checklist – yes or no questions
 Example for an IT Project
• Have you worked on similar technology – yes (less risk), no (more
risk)
• Do you have enough facilities to maintain and support the system
once it is live? Yes (less risk), no (more risk) etc.
 Example for a building construction
• Is this under seismic zone? Yes (earth quakes), No
o Risk Prompt List – open ended questions
 Number of interfaces – the bigger the bigger risk
 Duration – longer the bigger the risk on Budget or fund allocation
o All risks when identified, must be recorded in Risk Register. Risk Register is a tracker
for all identified risks in the Projec.t Prepared by PM in Initiating a Project process
Assess
• First, we do assessment on its probability – likelihood of its occurrence
• Few tools
49
o Decision Tree
Probability
o Simulation of probability using computer models (In PMI exams, Montecarlo is a

tool used for simulation)
o Fishbone diagrams
• Impact assessment is done

• These assessments are updated in Risk Register.
Plan
• Now that we know probability and impact, me must plan (mitigate) our responses.
• PM prepares Risk Management Strategy in Initiating a Project process – it outlines how risk
will be managed in this project, definition of probability, impact and proximity scales, risk
categories (example: Political, Economic, Sociological, Technological, Legal and
Environmental PESTLE. These categories can help the PM to create Risk Breakdown
Structure), Responsibilities for risk management, timing of risk management activities (for
example: mock drill, training, meetings, induction meetings)
• PRINCE2® recommends few options for both Threat and Opportunity as risk responses.
• Threats
o Avoid: avoiding the source of the risk
o Reduce: proactive actions undertaken to reduce the probability and/or impact
50
o Fallback: alternate options normally written as Plan B, Plan C etc. You will clearly
see IF Plan A Else Plan B …
o Transfer: only financial liability is transferred i.e. buying insurance from third parties
o Accept: record the risk in Risk Register and monitor the situation
• Opportunities
o Exploit: Let the opportunity happen
o Enhance: make the opportunity happen – proactive actions taken to improve the
opportunity probability and impact
o Reject: not interested in the opportunity
• SHARE – common for both Threat and Opportunity – contract between customer and
supplier contains penalties and incentives.
o Difference between Transfer and Share
 Transfer is with 3rd party (outside the Project), only financial liability is
transferred to 3rd party (i.e. customer may pay less Like in Insurance)
 Share is between customer and supplier (inside the Project), All BCQRST
can be shared between customer and supplier – For example if the project
is completed before deadline – 10% incentive to supplier, if the project is
delayed by 1 month after deadline – 15% penalty to supplier
• Examples for all these options:
o A candidate walks in for face to face interview – 1st interview with customer.
 He/she walks in a very unprofessional manner – improper dress, drunk etc.
• Cancel the interview or rescheduling it – Avoiding source of the
risk
• Candidate is frisked or checked before entering office premises –
Reduce proactive action of frisking or checking
 During interview, usually many candidates are screened. Alternative
options are evaluated to pick the best candidate. Few factors that can
influence these decisions are such as joining time, salary etc. Fallback is
where multiple options are considered. Most companies will offer more
than one candidate for same position for critical projects. Most companies
keep some employees with visa ready – Fallback.
 Hiring contractors – Transfer of the risk (ex: sourcing, bench, attrition) to
the third party.
 Though the candidate is unprofessional or drunk, let us do the interview.
Let us see what happens – Accepting the risk.
o In your shopping mall, a small vendor of Ice-creams comes and says I will setup a
stall near the entrance.
 You allow that person to have a stall – but no commissions on sales for you.
Exploiting the opportunity by allowing the stall.
 You allow that person to have a stall – but for each sale, that ice-cream
shop fellow must pay a commission to you. You offer coupons to your
customers to buy ice-creams at discount. You get commission from ice-
cream shop Enhance the opportunity
 Now you don’t allow that person to setup an ice-cream stall. This is
Rejecting the Opportunity.
• SHARE is penalties and incentives documented in the Contract.
• For each identified risk, a Risk Owner and Risk actionee must be identified.
51
o Risk owner is one person who is capable of managing the risks assigned to them.
o Risk actionee is a group of people or team (usually) who will implement risk
response actions based on approval from Risk owner.
o Example: in most organizations, hiring resources for the Project lies with HR. For
recruitment, Risk Owner is HR Manager, Risk actionee is the sourcing team.
• All identified risks can be plotted on Probability and Impact grid – for better monitoring and
control. For each risk, multiple Probability with Impact to arrive at a score.
Impact 5 5 10 15 20 25
4 4 8 12 16 20
3 3 6 9 12 15
2 2 4 6 8 10
1 1 2 3 4 5
Probability  1 – very low 2 - low 3 - medium 4 - high 5 – very high
o Above, any risk with score in the range 20 to 25 is treated as very high.
o Above, any risk with score in the range 12 to 16 is treated as high etc.
o All risks must be constantly evaluated for their probability and impact.
Implement
• Risk response is implemented by risk actionee based on risk owner’s approval.
• If this response requires any funding, then risk budget can be used.
• For example:
o Weather is predicted to be bad during production launch. Team members were
allowed to stay in office till launch is complete. During this time, they were provided
with food and other options. The cost of these food and other options are taken
from risk budget.
Communicate
• Risks can be communicated using any meetings, any reports and plans, Business Case etc.
• The recipients who should be informed and when is documented in Communication
Management Strategy.
Risk theme across processes

Starting Up • During preparation of Outline BC, high level risks are identified
and documented in Outline BC.
• When selecting project approach (solution to the project), any
risks identified are documented in Project Approach or Daily log
by PM
• Some risks may be identified by PMO, CPM, Legal etc. and
conveyed to Executive, Executive will ask PM to record them.
• Since risk register is prepared later, PM will keep all these risks
noted in Daily Log.
Directing a Project • Constant risk evaluation happens by Project board.
• Primary focus of risk evaluation would be on Continued Business
Justification.
Initiating a Project • PM prepares Risk Management Strategy and sets up Risk
Register. The moment risk register is setup, PM has to copy all
already identified risks from Outline BC, Project Approach and
daily log into risk register.
• Risk budget is also finalized along with approvals for using it.
52

Controlling a Stage • PM’s focus is to keep issues and risks under control.
• PM will also respond to escalations from Team Managers.
Managing Product Delivery • Team Managers will focus on delivery and associated risks. They
will escalate risks to PM as necessary.
• Team Managers may also implement risk responses
Managing Stage Boundary • End of a milestone – so risk assessment on complete project is
carried out.
• PM prepares End Stage Report – showing how the completed
stage worked – how risks were handled, any residual risks for
next stage etc.
Close Project • Any open risks are noted and shared with operations teams.
• Board will initiate how effective was risk management in this
project looking for lessons learned.
53
Theme 6: Change
PRINCE2®’s definition of Change  Issue
• PRINCE2® uses the word Issue for Changes.
• Issue is an event that has occurred (past tense) unplanned and requires management
action. Whereas Risk is an event that might occur in the near future (future tense)
Type of Issues
• Request for Change
o Any enhancements, changes that arise after PPD (Project level) or PD (Stage level)
or WP (WP level – tasks are created from WP) is approved.
o Funded from Change Budget (not from cost tolerance)
o Example
 After the PPD is approved, Senior User is requesting for end user training –
which was not part of approved PPD.
• Off-specification
o Agreed but not delivered.
o Defects come under this category.
o Supplier must fix them without customer getting any cost
o Example
 It was agreed that both internal users and external users should be able to
use the application. But during testing, it is found that only internal users
are allowed to login. This is a defect – so off-specification.
 During Initiation, Senior users wanted the user manual to be in English and
Spanish languages. During closing of the Project, if was found that only
Spanish manual was ready. English was not delivered – so defect  Off
specification.
• Problem or Concern
o It doesn’t belong to RFC or Off-specification.
o Example:
 Teams asked for new hardware and received it. But none of them know
how to operate it.
 One of the team member is creating problems to other team members by
some actions such as coming always late to office, not attending any
meetings, deleting colleague’s files.
For Change Management to be effective, we need

Configuration Management. i.e. Configuration Management
is a prerequisite for Change Management.
• Change = old state or current state ± modification or enhancement
o Old state or current state comes from Configuration Management because
Configuration Management preserves the state of a deliverable.
o ± is RFC or Off-specification = Issue = Change.
54
Configuration Management
• Configuration Management creates baselines (Approved deliverable or document such as
plan, strategy, business case) against which Changes are tracked.
Configuration Items
• Project deliverables, components used in creating those deliverables, any infrastructure and
support material used in the Project – Configuration Items.
o Example 1: in construction of a house: walls – thickness, flooring – tiles, painting –
colors, Roofing – what is used for roofing
o Example 2: in IT: servers, machines, equipment such as network, hardware,
databases, operating systems, repositories
• For each CI, PM or Project Support must create Configuration Item Records – to record or
take a snapshot of item so that baseline can be created.
o This CI is for a laptop. It also contains: RAM, Hard disk capacity, Processor, battery
etc.
Configuration Management Strategy

• PM prepares it in Initiating a Project process
• It contains:
o Configuration Management Tools
 Example:
• IT – Source control, release and build tools, testing tools etc.
Repositories etc.
• Automobile – Marking tools, labelling tools etc.
o Configuration Management Techniques
 Backup and recovery
 Root cause analysis
 Asset identification tags

o Roles and responsibilities for Configuration Management
 Example IT: Deployment responsibilities, backup and recovery
 Example Construction: site maintenance and security
o Timing of Configuration Management activities
 Example IT: Downtime schedules, release calendar
55
 Example Construction: schedules of watering, plastering, flooring and

electrical work etc.
o Scale definition of Priority and Severity
 Example: service outage
• Production outage – High priority and severity
• Development environment outage – Low priority
 Example: payroll system not available
• Outage during pay cycle – high priority and severity
• Outage during non-pay cycle – low priority
o Standards, policies and any other relevant information
Configuration Management Procedure

• 5 step process – PICSaVa
Plan
• Configuration Management must be planned earlier in the Project.
• PM prepares Configuration Management Strategy in Initiating a Project process
• Board will work with PM and supplier teams for Configuration tools, standards and policies
to be followed etc.
• For an IT Project, PM may also come up with coding conventions, location of files and
repositories, responsibilities for code and testing, code migration from one repository to
another etc.
Identify
• For all CI’s Project Support, will create CI records.
• Project Support will also create Product Status Account – to record the current baseline of
the deliverable.
Control
• Changes to CI’s are controlled.
• Some activities such as access control, privilege control (Read Only, Read Write, Delete
access), source code check-in and checkout, usage of admin rights etc.
• Some more activities such as sign off, code rollouts, confirmations on Post implementation
• Example: when cleaning a wet floor, signs (Configuration Item) is kept to control access to
the space
Status Accounting
• For each deliverable, it’s status (life cycle) is recorded in Product Status Account - PSA by
Project Support.
• During Quality Review (Demo) or end of a stage or end of the Project or when required,
Board will review PSA to decide on approvals and sign offs.
• Let us understand this with this example.
56
• In a Project, the following are deliverables and their stages mapping.
Deliverable Stage Status

D7890 1
Z3456 1
N7385 2
Z5670 2
U4667 2
• At the end of Stage 1, when Board is reviewing these deliverables, this is the updated PSA

D7890 1 Live
Z3456 1 Testing
N7385 2
Z5670 2
U4667 2
 Can this stage be deemed complete?
• NO because Z3456 deliverable is still under testing – not approved.
 Can we go live?
• NO
o So, PSA helps the Project Board to review the status of deliverables and decide on
approvals, sign off etc.
• At the end of Stage 2, when Board is reviewing these deliverables, this is the updated PSA
D7890 1 Live
Z3456 1 Live
N7385 2 Live
Z5670 2 Live
U4667 2 Live
 Can we close the Project now? With respect to deliverables
• Yes. All deliverables are in LIVE state – means completed, tested,
handed over.
• But there may be few Project Management activities left (but PSA
focuses on Scope)
Verification and Audit

• Configuration Management involves periodic verification and audits
o User right assignment
o Privilege assignment
o Physical Verification
Issue and Change Management Procedure

• 5 step procedure – CEPDI
Capture
• Issue is something that has happened in the past, unplanned. So, it must be captured first.
• Formal issues are captured in Issue Register.
• Informal issues are recorded in Daily Log (a small scribbling pad carried by PM – also called
as Project Diary)
57
Examine
• Request for Changes
o RFC is examined i.e. reason for change is validated.
o Change Authority may ask Senior Users for any alternate means they can use etc.
• Off-specification and Problem
o Root cause analysis
• During Examine, PM can prepare Issue Report to record all actions undertaken for this issue.
Propose
• Request for Changes
o Supplier team managers will submit a proposal with effort required to deliver the
RFC.
• Off-specification
o Supplier teams will propose resolution timelines or alternative ways of working or
classifying the defect as known manufacturing defect and working with vendors for
resolution.
o Root cause fix
o From ITIL, known error database concept can be used here.
 Example: frequent hanging of Windows OS – best fix is three finger salute
(Control+Alt+Del or Restart)
• Change Authority usually conducts weekly or bi-weekly meetings to review all issues.
Decide
• RFCs
o Board may utilize Change Budget o fund RFCs
o If sufficient change budget is not available, then
 Board will work with CPM to increase change budget OR
 Board may ask Supplier to descope i.e. remove some other scope and
accommodate this RFC
 Board may say we will come back later – defer decision
 Board may also reject the change or prioritize for later stages
• Off-specifications
o Board may insist the supplier on fixing the defect
o Board may also grant concession
o Board may say we will come back later – defer decision
Implement
• As per Board’s recommendation, PM will carry out issue resolution.
58
Change theme across processes

Starting Up • PM will capture issues informally in Daily log (because Issue
Register is not yet setup)
Directing a Project • Board reviews RFCs, Defects and Problems
• Board will also advise PM on issues
• Board will also seek guidance from CPM when required
Initiating a Project • PM prepares Configuration Management Strategy and sets up
Issue Register. The moment Issue register is setup, PM has to
copy all already identified formal issues from Daily Log
• Change budget is also finalized along with approvals for using it.
One Stage at a time, Stage by Stage – During Execution more work for Change and Issue theme
Controlling a Stage • PM’s focus is to keep issues and risks under control.
• PM will also respond to escalations from Team Managers.
Managing Product Delivery • Team Managers will focus on delivery and associated issues.
• They will escalate issues to PM as necessary.
• Team Managers may also implement issue resolution.
Managing Stage Boundary • End of a milestone – so Change assessment on complete project
is carried out.
• PM prepares End Stage Report – showing how the completed
stage worked – how issues were handled, any open issues or
incomplete issues for next stage etc.
Close Project • Any open issues are noted and shared with operations teams.
• Board will initiate how effective was Change management in this
project looking for lessons learned.
59
Theme 7: Progress
Type of Progress Controls
• Two types of Progress Controls in PRINCE2®
• Time driven
o At agreed time, the control or report must be sent
o Example: weekly status report (not a PRINCE2® term, in PRINCE2® can be
CheckPoint Report) must go every week at agreed time
• Event driven
o An event triggers these reports
o Example: completion of a milestone, exception
Communication Management Strategy

• Prepared by PM in Initiating a Project process
Out of the 4 strategies PM prepares, Communication is the

last one. Because it takes inputs from other 3: Risk, Quality
and Configuration
• It contains:
o Communication Procedure
o Tools and Techniques
o Records (evidence)
o Reporting
 Frequency of all reports except CheckPoint Report (CheckPoint Report’s
frequency is documented in WP because it is prepared by Team Manager)
o Timing of communication management activities
o Roles and Responsibilities
o Stakeholder Analysis
o Information needs for each party
60
• Some guidelines on Stakeholder Engagement and communication channels from MSP

(Programme Management)
• Stakeholder engagement
61
• Stakeholder map
Reports
Report Prepared by, Process Purpose
CheckPoint Report Team Manager How the work packages are progressing i.e.
Time driven control Managing Product status of work packages, issues and risks,
Delivery technical task detail
Highlight Report PM Takes inputs from CheckPoint Reports, reports
Time driven control Controlling a Stage how the stage is progressing (sent during the
stage in execution), summary of work packages,
issues and risks, tolerances under control of
BCQRST
End Stage Report PM At the end of each Stage, PM prepares this
Event driven control Manage Stage report about completed stage – what was
Boundary planned versus actual on BCQRST, WP’s –
summary – total, in progress, completed etc.
Team performance during the stage, lessons
learned during the stage
End Project Report PM Complete project performance report, planned
Event driven control Closing a Project vs actual of complete project
Lessons Report PM Focus is only on lessons learned during the
Event driven control Closing a Project Project
62
Issue Report PM or can be For each issue, a report outlining how the issue
Updated throughout delegated is handled, updated throughout the issue
Controlling a Stage resolution process
Exception Report PM or can be For each exception, after it is handled.
Updated throughout delegated
Controlling a Stage
Management Stages
• Management Stage is a review point where project’s progress is assessed and evaluated.
• Other names for Management Stages are: gate, phase, milestone etc.
• Management stages never overlap but technical stages can
• Number of Management Stages

o Minimum recommended is two
 1st one is always Planning stage i.e. Initiating a Project process – because
projects must be planned before execution
 2nd one is for reminder of the Project. It also includes closing the Project.
Last and final management stage includes closing activities.
o Maximum number – its upto you.
Duration of Management Stages

• One guideline
o If risk is more, go for shorter duration so that frequent reviews can happen
Exception
• Each management layer sets tolerances (agreed limits on BCQRST) to the layer below it.
• If there is a forecast that the tolerances will be breached or exceeded, an exception must be
raised.
To remember exceptions for the exam, practice this table.

You need a table with 4 rows and 3 columns.
Level Tolerance Provider Receiver (who will raise exceptions)
Project CPM Project Board
Stage Project Board PM
Work Package PM Team Manager (Issue, no exception)
• Project level tolerances are set by CPM, Stage level tolerances are set by Board, WP level
tolerances are set by PM.
63
• WP level we don’t have exceptions. Team Managers raise issues to PM.

Exception Handling – 2 steps
• Step 1: an exception plan must be prepared to replace current stage or project plan.
o This exception plan is prepared by PM in Managing Stage Boundary process.
• Step 2: this exception plan must be reviewed and approved by next management layer.
o Stage level  Board
o Project level  CPM
Progress Theme across processes

Starting Up • Nothing – because team is small, they do high level planning
activities – most likely team operates together
Directing a Project • Board will review any report and may share the same with CPM
• Works on Stage level exceptions
• For Project level exceptions, Board will ask PM to prepare an
exception plan and takes it to CPM
Initiating a Project • Reports required for this project as per tailoring are decided and
agreed
• PM records their frequencies and distribution list (recipients) in
Communication Management Strategy
• PM with advise from Board, prepares Escalation Matrix
One Stage at a time, Stage by Stage – During Execution more work for Change and Issue theme
Controlling a Stage • PM receives CheckPoint Reports
• PM sends Highlight Reports
• PM prepares Issue Reports when required
Managing Product Delivery • Team Managers prepares and sends CheckPoint Reports
• May assist PM in preparation of Issue Report
Managing Stage Boundary • End of a milestone – PM will prepare End Stage Report
• PM also will prepare Exception Plan in case of an exception
Close Project • PM prepares End Project and Lessons Report
64
Practitioner Exam
Exam pattern
• Multiple choice exam
• Pass mark is 55% i.e. 44 out of 80, all questions are counted – no trial
• 80 questions, 150 minutes i.e. 2 and half hours, each question 1 mark, no negative marks
o 60 questions come from themes
 Organization, Business Case, Risk, Plans, Quality are almost mandatory
(they appear in each paper)
 Change and Progress usually play hide and seek i.e. only one may appear
o 20 questions come from Processes
 Usually SU+IP is combined
 Normally they won’t ask on MPD process (team manager) due to focus on
PM
• Exam is open book exam, ONLY PRINCE2® manual is allowed.
Questions pattern
• One answer multiple choice questions
• Two answer multiple choice questions – clearly marked
o Though there are 2 answers, this question carries only one mark.
o You must get both answers correct to get 1 mark. There is no ½ mark.
• Matching questions from Column A to Column B
o It is not exact 1 to 1 matching. 1 answer matches to 1 question only.

o Each answer can match with 1 or more than 1 or 0 questions.
• Reason and assertion question – they are about 16 to 22 out of 80 (almost 25%)
o You will be presented with a table with 3 columns.
 Assertion is a statement from case study – an action undertaken by

someone in the Project. It might be correct or wrong i.e. TRUE or FALSE –
which we must find out.
 Reason is a statement from PRINCE2® - generic statement. This also can be
TRUE or FALSE – which we must find out.
65
o Each row is one question. Here we have 4 questions, each question carries 1 mark.
• BECAUSE Column must be evaluated ONLY WHEN both assertion and reason are TRUE.
o Because can be used to connect both statements together as one statement if both
are TRUE.
o Assertion (something done in the Project) is TRUE because that is how it is done in
PRINCE2® is TRUE
• Possible combinations of answers
Assertion Because Reason
TRUE Only to be evaluated for TRUE: TRUE TRUE
Assertion is valid because of reason = Answer A
Assertion is valid not because of reason = Answer B
TRUE Answer C FALSE
FALSE Answer D TRUE
FALSE Answer E FALSE
• How to solve them
o Start with Reason first i.e. right hand column. Evaluate if the statement is TRUE or
FALSE.
o Now answer Assertion. Evaluate if the statement is TRUE or FALSE.
o Only when both are TRUE, try to see if there is a connection between assertion and
reason. If you can find the connection, the answer would be A, otherwise it would
be B.
o Don’t evaluate BECAUSE if any one of them or both are FALSE.
• Example 1 – Non PRINCE2® example
Few days ago, a big ice shelf broke Global warming is causing drastic
out from Antarctica. changes to earth.
o Reason – TRUE
o Assertion – TRUE (Ref:
https://www.usatoday.com/story/weather/2017/02/02/antarctica-larsen-c-ice-
shelf-crack/97402418/)
o BECAUSE – Must be evaluated. Now do you see any connection between Assertion
and Reason? To find out, combine both the statements using because “Few days
ago, a big ice shelf broke out from Antarctica because Global warming is causing
drastic changes to earth” – sentence seems complete. Answer is A
• Example 2 – Non PRINCE2® example
Fast food chains such as KFC, McD Plants use Photosynthesis to generate
are popular across the world. energy.
o Reason – TRUE
o Assertion – TRUE
66
o BECAUSE – Yes. Combined statement: “Fast food chains such as KFC, McD are
popular across the world because Plants use Photosynthesis to generate energy” –
No connection. Answer is B
• Example 3 – Non PRINCE2® Example
Roger Moore, Daniel Craig both In almost all religions, we don’t have
played James Bond roles and are mythological heroes.
popular.
o Assertion – TRUE
o Reason – FALSE
o Because – NO. Direct answer: C
Sachin Tendulkar is a good tennis Tennis is played on lawn and clay courts.
player
o Assertion – FALSE
o Reason – TRUE
o Because – No. Direct answer: D
During winter, it shows heavily in Refugees across the world easily get
Chennai, India good job and homes.
o Assertion – FALSE
o Reason – FALSE
o Because – No. Direct Answer - E
• Document questions – time consuming. Advise: try them towards end of the exam
o As a PM your documentation skill will be tested using these questions.
o You will be presented with an already prepared document – that may contain some
errors.
o Questions are about entries inside a heading – whether that entry is correct under
the heading or it can be deleted (wrongly placed) or moved to some other section
67
or modified to clarify better
o How to answer
 Step 1: Identify the document in which questions are coming (refer to
additional information in case study). Here it is PPD.
 Step 2: Open the manual, navigate to Appendix A (Page 235 printed, 251 in
PDF), locate the document identified in step 1. Here it is PPD. Go to
Composition section (it is always 2nd heading)
 Step 3: from question, identify section and entries. Here it is Derivation and
9,10,11 and 12.
 Step 4: in the additional information, validate entries noted against the
header – use manual to know which kind of entries can come under this
heading. For each entry – write or note correct, incorrect, require
modification under this section.
 Step 5: now look at answers and try to find correct answers.
68
o Example 1:
 Document prepared already is shown below – Work Package
Date 16-Jul-17
Team Manager or • Your Name
person authorized
Work Package 1 This WP is about developing a login page for
description website.
2 It must be completed by 25-Jul-2017
3 The Login button must be in blue color
• Under work package description:
o Entry 1: yes. Valid
o Entry 2: no. should not come here
o Entry 3: Yes. But blue color means?
 Question – answers
A. Delete Entry 1 because it should appear under Joint agreements.
B. Move Entry 1 to Development interfaces
C. No change in Entry 2
D. Delete Entry 2 because it is invalid here
E. Amend Entry 3 “The login button should be in Blue color (RGB
100,120,120)”
o A is wrong answer, Entry 1 is correct.
o B is wrong answer
o C is wrong answer because date should not come here
o D is correct answer
o E is correct answer (better specification, measurable)
o Example 2: Risk Management Strategy prepared with errors
Risk Management Procedure 1. 5 step process – Identify, Assess, Plan, Implement and
Communicate
Tools and Techniques 2. Use Brainstorming
3. Use emails to communicate risks
4. Use Gantt Chart
Risk categories 5. Political
6. Technological
7. Any risk that exceeds time limit must be notified to Board.
Early warning indicators 8. Number of defects in each stage exceeding 10
9. Number of RFCs coming during a stage exceeding 5
• Answers
A. Delete entry 1 under Risk Management Procedure
B. Delete Entry 4 under Tools and Techniques
C. Move Entry 7 to communication management strategy
D. Change Entry 8 to “Number of defects in each stage exceeding <to be decided>”
 A – Wrong answer.
 B – Correct answer
 C – Correct answer
 D – Wrong answer
69
• Yes/No questions
o For some questions, you will find 4 answers – two each for Yes and No.
o To answer, don’t look at answers first. Look at question, decide if it is Yes or No first.
o Then look at appropriate answers only. For example, if you thought answer is YES,
look for only YES answers.
Our PLAN
• Time management is the key.
• First 8 to minutes, read only the first page of case study and make your own notes.
o Background – why is this project is done
o Scope and out of scope
o Number of stages and deliverables of each stage
o Cost and time, budgets, tolerances
• For each section (10 questions are grouped as a section), spend about 15 minutes answering
10 questions (1.5 min / question)
• Attempt document questions towards end of the exam.
• Refer to the manual when required
o Organization theme questions – look at Appendix C – Roles and Responsibilities
o Document questions or any question that refers to a plan, strategy, register etc. –
look at Appendix A – Page 235 in printed book, Page 251 in PDF
o Process questions – each process first page contains activities in that process
o Normally you will get 5 to 6 questions on risk responses. Refer to Page 86 in printed
book, Page 102 in PDF
70
Processes
1 Starting Up a Project
Process Flow
Activities
1 Appoint Executive and PM
• CPM appoints Executive
• Executive will appoint PM
2 Gather previous lessons

• Executive will direct PM to gather previous lessons
• Both executive and PM will review Project Mandate to understand what this project is, what
is expected out of this project
• PM will connect with PMO, Dr Google (internet), any other sources such as industry
associations, vendor associations, networking (LinkedIn etc.)
• PM prepares Lessons Log
PM undertakes High level planning that includes 3 activities running in parallel – each activity here
will feed some input to other activities and receives some output from other activities.
Design and appoint

Select Project
Project Prepare Outline BC
Approach
Management Team
3 Design and appoint Project Management Team

• Executive will now look for Senior Users (inputs from Project Mandate, CPM).
• If already a Supplier exists, Executive will appoint Senior Supplier.
• Now with these 3 roles we have Project Board = Executive + Senior Users + Senior Suppliers
71
• PM will work with Senior Supplier to get Team Managers (if required. They can join later
also)
• PM will also seek out Project Support (if no one, PM has to play)
• Board will appoint Project Assurance.
• Roles we have:
o Executive
o PM
o Senior Users
o Senior Suppliers (we may or may not)
o Project Support
o Project Assurance
o QA (automatically comes from CPM)
• Roles not finalized yet
o Change Authority
o Team Managers (may be identified now also)
• PM will prepare role descriptions for these roles, discuss with role players and get their
consent to play the role
4 Prepare Outline BC
• Outline BC is prepared by Executive
• Outline BC provides high level overview about investment decisions to the Project
• PM will work with Senior Users to collect requirements and document that in Project
Product Description
• PM will also work with Senior Suppliers to arrive at Project approach (this is another activity)
– Project Approach provides technical solution to the Project
• Now PM has: Scope of the Project (PPD), Background (Reasons – WHY) + Options (What is to
be done) + Benefits (What would be the improvements) + Dis-benefits (benefits perceived as
negative) + Cost (comes from Project Approach – how much) + Timescales (comes from
Project Approach – when) + investment appraisal (RoI) + Major Risks (what if) from Outline
BC
5 Select Project Approach and assemble Project Brief

• Project Approach is the solution for the Project.
• It answers – how the project will be done, who will be doing and where they will be doing it.
• Inputs:
o PPD (Scope)
o Project Mandate
o Outline BC (benefits determine timelines approach etc.)
• PM will drive solution design for the Project with Team Managers.
6 Prepare Initiation Stage Plan

• Initiation is a management stage. Every Management Stage in PRINCE2® must have a Stage
Plan prepared before the stage and approved by Board.
• PM will prepare Initiation Stage Plan (which is actually a Plan for detailed Planning the
Project) and submit to Board for approval
72
Outputs
Next Steps in Process Flow
2 Directing a Project
Process Flow
• This process is repeated throughout the Project
• Project Board operates here directing the PM throughout the Project
• CPM will interact with Project Board via this process.
• Multiple entry points to this process are clearly marked:
73
Activities
1 Authorize Initiation
• Indicated by 1 in above diagram
• After Starting Up a Project, PM visits this process to seek authorization for detailed planning
of the Project.
• Board will review
o Project Brief
o Initiation Stage Plan
2 Authorize the Project (Authorizing execution after detailed planning)

• As per PRINCE2®, project begins after Initiation i.e. when execution begins. That’s why this
activity is called Authorize Project.
• After Initiation Stage (1st stage in the Project), PM will visit this process with
o Project Initiation Document
o Next Stage Plan (prepared in Managing Stage Boundary Process)
o 3 Registers (Risk, Quality and Issue)
• Board will review these 3 documents and can decide
o To continue with next stage OR
o To close the Project prematurely
3 Authorize Management Stage

• Indicated with 3 in above diagram
• PRINCE2® operates one stage at a time.

• So, at the end of each stage (except the last one), PM will visit Managing Stage Boundary
process to prepare upcoming Stage Plan.
• And PM will also update PID with actuals from completed stage.
74
• Board will review upcoming Stage Plan, updated PID, registers to decide on next stage
authorization.
4 Authorize Exception (shown separately here for better understanding)

• Indicated by Red 4 in the above diagram
• During the project, anytime if an exception at Stage or Project level is forecasted, PM will
visit Managing Stage Boundary process to prepare an Exception Plan. This Exception Plan =
current stage or project plan + reasons for exception + recovery options if any.
• Board will review exception plan, ask assurance to evaluate continued business justification,
ask Change authority to prioritize and recommend on RFCs.
• For stage level exceptions, Board can decide. For project level exceptions, Board goes to
CPM.
5 Give adhoc direction

• Board will be consistently reviewing project progress, issues, risks, exceptions and guiding
the PM.
• PM may present supporting documentation for decision making such as Issue Report,
Exception Report, Highlight Report etc.
• When required, Board will also approach CPM for guidance (ex: Project level exceptions,
inter-project dependencies).
6 Authorize project closure

• Indicated by 5 in above diagram.
• From Closing a Project process, PM will recommend Project Board to close the Project.
• Project Board will also notify CPM about Project closure.
Outputs
• Project Board prepares or creates nothing. They review and approve.

• After SU process, if authorized – IP Process, if not authorized – CP Process.
• For each stage, if authorized – CS Process, if not authorized – CP Process.
• For an exception, if authorized – CS Process, if not authorized – CP Process.
• For giving adhoc direction – PM back to CS Process
• For project closure, no process. Project is closed, resources are released.
75
3 Initiating a Project
Process Flow
• Initiation is a Stage – must be authorized before it can begin.
• PM will present Initiation Stage Plan to Board seeking approval.
Activities
1 Prepare Risk Management Strategy
• PM prepares RMS which contains how risks will be managed in the Project.
• PM will also setup Risk Register.
2 Prepare Quality Management Strategy

• PM prepares Quality Management Strategy that outlines – Quality Planning + Control +
Assurance, tools and techniques, timing of quality activities, quality responsibilities etc.
• PM will also setup Quality Register to track all planned quality activities.
• CPM can provide information on applicable standards, policies for this project.
• In few organizations, you may find Quality Centre of Excellences – they may give guidelines
on few methods, tools and techniques, standards and policies, templates etc.
3 Prepare Configuration Management Strategy

• Configuration Management is the prerequisite for effect change and issue management.
• PM prepares it to provides guidelines about how configuration and change management will
be done in the project, tools and techniques, roles and responsibilities, timing of activities,
scale definition for Priority and Severity
• PM will also setup Issue Register to track all issues formally. PM will use Daily log to track
issues informally.
4 Prepare Communication Management Strategy

• PM prepares Communication Management Strategy to record information requirements of
all stakeholders, report frequencies, communication tools and techniques, roles and
responsibilities for communication
• PM must revise Communication Management Strategy at the end of each stage
• Relationship with other themes
o Contains who should be informed in case of a new risk is identified (Risk theme)
o Contains who should be informed at a milestone completion such as Stage
completion, Exceptions (Plans theme)
o Contains Stakeholder profiles and information (Organization theme)
76
Prepare Setup
Revise
Project Project
Outline BC
Plan Controls
• In initiation, PM will carry out detailed Planning – that includes executing these 3 activities
together
5 Prepare Project Plan

• PM will prepare Project Plan
o While preparing, Project Plan may have enough details about upcoming stage only.
For more of future stages, it may contain less details.
o PRINCE2® projects are planned one stage at a time with greater detail.
6 Revise Outline BC
• Outline BC created in Starting Up a Project process contains only high level information.
• Now PM will add more details to it, making it Detailed BC
• Along with Detailed BC, PM will also prepare Benefit Review Plan
7 Setup Project Controls

• Tailoring decisions for the Project
o Number of stages (recommended is 2 as minimum)
o Duration of stages
o Role assignments
o Tolerances and escalation matrix for exceptions
o Report frequencies and distribution list
o Change authority and change budget
o Risk response and risk budget
• Governance
o Meetings and reviews
o Approvals & Delegation (example: small changes i.e. RFC costing less than $5000,
PM can approve)
8 Assemble PID
• Project Initiation Document contains: Project definition, approach, Business Case, team
structure, Role descriptions, 4 strategies, Project Plan, Project controls and tailoring
77
Outputs
Next step in Process Flow

• Initiating a Project is also a Stage.
• At the end of a stage, PM will visit Managing Stage Boundary Process to prepare Stage Plan
4 and 5 Management Stage in Execution – 2 Processes together  CS +

MPD
Process Flow
• Each Stage requires a Stage Plan – must be prepared before the stage and reviewed and
approved by Board.
• Stage Plans are prepared at the end of each stage in Managing Product Delivery Process
78
Activities
3 Activities paired between PM and TM – grouped by Work Package
Controlling a Stage – PM – 8 activities Managing Product Delivery – TM only 3 activities
Create Work Package Receive WP (TM will now prepare Team Plan,
create tasks from WP, assign tasks to Team
Members, escalate any issues or risks with WP)
Review WP Progress (Receive CheckPoint Execute WP (Teams will be working to product

reports, conduct meetings and reviews, deliverable i.e. WP, Team Manager will be sending
update team about Board decisions) CheckPoint Report to PM to update about Progress,
escalate any issues or risks with WP, take corrective
Checkpoint Report
actions as per PM’s advice)
Receive Completed WPs Delivers WP (Completed WPs are delivered back to

PM. Fully tested and approved)
3 activities for the PM for Issue and Risk control (Team Manager will escalate and take
guidance from PM)
• Capture Issues and Risks
• Seek guidance (to Board via DP process)
• Take corrective action (fixing the issues, risk mitigation etc.)
2 Activities for stage review

• Create Highlight Reports
o PM creates Highlight Reports from multiple CheckPoint Reports, adds management
summary
• Review Stage progress
Outputs
• Controlling a Stage
• Managing Product Delivery

79

• If there is a next stage, PM will visit Managing Stage Boundary process to prepare next stage
plan.
• If there is no next stage, PM will visit Close Project to initiate project closure.
6 Managing Stage Boundary

Process Flow
• At the end of each stage (except last one)
Activities
Prepare Stage Plan
• At the end of current stage, the stage plan for next stage is prepared.
• If this next stage is the last one in the project, closing activities are also planned as part of it.
Update PID (includes Updating BC also)

• At the end of current stage, PM will update PID
o BC with actuals on BCQRST from completed stage
o 4 Strategies as required for upcoming stage
o Role descriptions as required for upcoming stage (example: few supplier teams
might have been moved out, few resources might have left the company, few new
people might have joined, new stakeholders from next stage etc.)
Report Stage End

• PM prepares End Stage Report
Prepare Exception Plan

• For Stage level and Project level exceptions, PM will prepare Exception Plans.
Outputs
Next steps in Process Flow

• Always from MSB, we go to Directing a Project process
80
7 Close Project
Process Flow
• There are two types of closures in a Project
o Planned closure
 As per plan, the Project is closed
o Premature closure
 Due to any reason, such as invalid business justification, project is to be
closed abnormally or abruptly
Activities
Prepare Planned Closure
• From last stage, we come here, as per plan.
• PM will prepare for Project closure – reminding suppliers for pending payments, talking to
operations to post project support etc., plan for release of resources
Prepare Premature Closure

• Abnormal termination of the Project as decided by Board
• Pending WPs will be reviewed and decisions taken
o Board may decide to continue work on few useful WPs – Board may form a separate
contract only for those WPs
o Board may ask supplier to surrender incomplete WPs as it is
Handover the Products

• This activity is common for both types of closure
• PM working with Senior Users must plan for Transition to Operations.

• Transition guidelines from Programme Management
81
Manage pre-transition
Establish benefits measurement – Customer (KPIs)
Monitor benefits realization – Customer
Plan transition – PM
Communicate the change – Operation teams
Assess readiness for change – PM and Senior Users
Manage Transition
Initiate Transition – PM
Establish the support arrangements – PS
Enact transition – PM leads, TM does it
Review transition – Board will review
Manage outcome achievement - CPM
Manage post-transition
Measure benefits – Operations (KPIs and BRP will give inputs)
Remove access to legacy working practices and systems (decommission old systems)
Respond to changing requirements (Change Management kicks on)
Monitor and report benefits realization (KPIs, return on Investment of the Project)
Evaluate the Project
• PM will conduct project evaluation.
• Complete Project performance evaluation – planned versus actual
o Benefits – planned versus achieved, post project reviews
o Cost – planned versus actual, Change and Risk budget review, RoI Calculation
o Quality – PPD, PD and WP along with QR (defects, reworks etc.)
o Risk – Business Case, risks in the Project, exceptions
o Scope – original PPD versus Final, RFCs, Off-specifications
o Timelines – planned versus actual of each stage, WP, timesheets of supplier teams
etc.
• PM will prepare End Project Report and Lessons Report
• PM may also do supplier team evaluation and report to Board.
Recommend Project Closure

• PM will recommend Board to close the Project.
• Board will do final review and decide.
Outputs
82
PRINCE2® AT A GLANCE
*** Focus is on KEYWORDS ***
Organization
• Executive
o Represents Business in BUS
o Value for money
o Ultimate decision maker
o Aligns the Project with corporate strategies and objectives
o Secures funding for the Project
• Senior Users
o Provides requirements
o Represent a business department or function
o Specify benefits
o Impacted by the Project
o Leads users of final output
• Senior Supplier
o Provides technical/specialist resources
o Produce project output
o Bounded by a Contract with Customer
o Accountable for quality of deliverable from supplier
• Board
o Made up of BUS = Executive, Senior Users and Senior Suppliers
o Directs the PM
o All authorizations and approvals
o Works with CPM
• PM
o Day to day management
o One stage at a time
o Reports to Executive, works at direction of Board
• TM
o Optional role
o From supplier organization
o Deals with WP delivery
o Reports to PM
• Assurance
o Independent
o Impact assessment
o Advise
o Evaluation
o PM can’t be given any assurance roles.
o Business Assurance – reports to Executive, focus is on how money is spent
o User Assurance – reports to Senior users, focus is on requirements i.e. scope,
quality and testing
o Supplier Assurance – reports to Senior suppliers, focus is on delivering the Project
o PA – reports to Board, independent of team, focus is on project and PM
83
o QA – appointed by CPM, independent of team and project, focus is on policies and

standards
Business Case
• Justifies continued investment in the Project
• Document that is live and gets updated throughout the Project
• Two forms
o Outline BC – very high level – part of Project Brief – prepared in Starting Up a
Project process
o Detailed BC – more detailed, live document and updated throughout the Project –
part of Project Initiation Document – prepared in Initiating a Project process
• Project mandate may provide high level expected cost and timelines into Business Case
• Responsibilities for BC
o Executive owns it (accountable)
o Outline BC – Executive prepares it, Detail BC – PM prepares it, updates it
o Senior Users – inputs on Benefits, dis-benefits, validate options, cost and timeline,
inputs on risks
o Senior Suppliers – inputs on cost and timeline, major risks
o Assurance – validate BC, evaluate RoI Independently, question the project approach
• Cycle
o Develop – it must be developed for the project
 Outline BC
 Detailed BC
o Verify – Board throughout the Project
o Maintain – by PM throughout the Project (at the end of a stage, in Managing Stage
Boundary process)
o Confirm – confirming the benefits (that may occur during and after the project)
• Benefit Review Plan contains when benefits will occur, who will measure them, how to
measure them, what tools and techniques can be used to measure, what do current
measures indicate i.e. baseline. At the end of the Project, this BRP is transferred to CPM
• Contents
o Reasons – WHY
o Business Options – WHAT
 Do Nothing is mandatory
o Benefits – WHAT WOULD BE THE IMPROVEMENTS
o Dis-benefits – NEGATIVE (FEELINGS)
o Cost – HOW MUCH
 Development cost
 Maintenance cost
o Timelines – WHEN
 Deadlines
 When benefits will occur
o Investment Appraisal – when will I get my money back – after the project
o Major Risks – WHAT IF
84
Risk
• Risk is an uncertain event, if it occurs can cause damage to Project’s BCQRST
• 2 types of risks
o Threat: impact is negative
o Opportunity: impact is favorable
• 3 Components of each risk
o Source: cause of the risk
o Event: in BCQRST which is impacted
o Effect: damage of the risk
• Probability: likelihood of occurrence
• Impact: effect of the risk
• Proximity: how soon the risk is likely to occur
• Risk Owner: one person capable of managing the risk assigned to them
• Risk actionee: a group of individuals who implement risk response based on risk owner’s
guidance
• Risk register: tracker for all identified risks in the Project
• Risk Management Procedure – IAPIC
o Identify
o Assess
o Plan
o Implement
o Communicate (parallel. Any report, plan can be used to communicate risks)
• For practitioner exam, questions on risk usually ask on risk responses. 5 to 6 questions. If
you are not sure about the answers, look at Page 86 in printed book (102 in PDF).
o First clearly understand what is the source of the risk
o For each answer, ask this question – are we continuing or not.
 If not means most likely it will be avoiding
 If continuing:
• Do you see any extra effort?
o Yes – Reduce
o No – do you see any 3rd party and financial liability given to
3rd party?
 Yes – Transfer
 No – do you see more than one option? Look for
if..else
• Yes – Fallback
• No – are we keeping quiet i.e. just
recording the risk in risk register?
o Yes – Accept
o Clearly see if the given is threat or opportunity.
 Clue for SHARE: between customer and supplier – contracts – Penalties and
incentives.
85
Quality
• Scope is gathered and documented at 3 levels in a PRINCE2® Project:
o Project level – PPD
o Stage level – PD is part of Stage Plan
o WP level – PM assigns work to Team Managers
• All these documents i.e. PPD, PD and WP also contain acceptance criteria
• Senior users provide requirements i.e. scope, clarifications on scope, provide resources to
do the testing, approval if required etc.
• Senior Supplier will be accountable for their deliverables, team managers are responsible for
quality of their work packages.
• Quality Planning
o Requirement gathering
 High level – in Starting Up a Project process while selecting Project
Approach
 Detailed – in Initiating a Project process
 For each stage, just before that stage is about to begin
o Testing
 Planned as part of quality planning
• Testing strategy
• Testing tools or techniques
• Templates – release, defect reports, user communication etc.
• Resource requirements and effort required
o Governance
 To control scope and quality, CIs are used to create baselines.
 PSA will be used to verify the status of deliverables
 Quality Review will be held for a formal presentation of completed WPs
(product demo)
• Quality Control
o Deliverable or Product is produced as per agreed acceptance criteria
o Various testing will be undertaken
o At regular intervals or at the end of each stage, PM can facilitate Quality Review to
showcase completed WPs.
• Quality Assurance
o Appointed by CPM
o Operate outside the Project, independent of team
o Focus is on Processes, standards, policies
Change
• Type of issues
o Request for Change – scope changes coming after approval, enhancements
o Off-specification – defect, agreed but not delivered
o Problem or concern – other than RFC and off-specification
• Configuration Management
o Configuration Items
o Configuration Management Process – Plan, Identify, Control, Status Accounting ,
Verification and audit
• Issue or Change Management
86
o Issue is defined as something that has occurred, unplanned and require

management attention.
o Process: Capture, Examine, Propose, Decide and Implement
o PM can create Issue Reports to keep everyone involved informed about the issue
o PM will use Daily log to record issues informally. Daily log is also called as Project
Diary.
Plans
• 3 levels of Plan
o Project Plan – by PM in Initiating a Project process
o Stage Plan – by PM (for Initiation Stage, plan is prepared in Starting Up a Project, all
other stages plan is prepared in Managing Stage Boundary process)
o Team Plan – optional, by Team Manager – in Managing Product Delivery process
• Planning approach
o Design the plan
o Using Product based planning technique – arrive at product breakdown, product
flow diagram
o Identify activities and dependencies
o Estimate the effort
o Plot the schedule
o Document the Plan
o Analyze the risks
• Product based planning
o Create PPD
o Create Product Break down structure
o Write Product Descriptions
o Create Product Flow diagram
• Exceptions – build this 4*3 table
Level Provider Receiver
Project CPM Board
Stage Board PM
WP PM TM (only issue, no exception)
o Exception handling – 2 steps
 PM prepares Exception Plan
 Stage level exception plans approval by Board, Project level exception plans
approval by CPM
• Plans are prepared in these processes
o Starting Up – Initiation Stage Plan
o Initiating a Project – Project Plan
o Managing Stage Boundary – Stage Plan, Exception Plan
o Managing Product Delivery – Team Plan
o No plans are prepared in Controlling a Stage, Directing a Project and Close Project
87
Progress
• Type of controls
o Time driven – at agreed time, the report must go
o Event driven – at the event, these reports go
• Reports
o CheckPoint report by Team Manager – frequency is in Work Package
o Highlight Report by PM – frequency is in Communication Management Strategy
o End Stage Report by PM – distribution list is in Communication Management
Strategy
o End Project Report by PM - distribution list is in Communication Management
Strategy
o Issue Report by PM (or can be delegated) –
o Exception Report by PM
• Management Stages
o Minimum recommended is 2
o No overlap, but technical stages can
o Duration: if risk is more, go for shorter duration

Prince2 1

Diunggah oleh

Informasi Dokumen

Judul Asli

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

Prince2 1

Diunggah oleh

Hak Cipta:

Format Tersedia

PRINCE2® - 8th July 2017 Start

Our Journey – the Road ahead

Milestones – Phases of our PRINCE2® Journey

o This is very important for all of us

Refer your friends now - www.simplilearn.com/refer-and-earn

To communicate with others, please use Chat Window:

Recordings will be available

Reference and additional information such as Case Studies

Shiwaani Mintri Analytics Bangalore For Career growth

FIVE Common characteristics of each Project

• Uncertainty – risk (economic – less funds, political – change of leadership, legal –

 PRINCE stands for PRojects IN Controlled Environments

 Configuration Management is removed (in Change

o Principles – cooker needs water, ways to cook etc.

o Tailoring – per taste

SIX Objectives of every PRINCE2® Project

You can remember these six as BCQRST

 Training timeline: 2 days + 2 days

Out of Scope in PRINCE2®

1 Defined Roles and Responsibilities

 Dedicated chapter on Roles and Responsibilities

In BUS, B and U from Customer and S is vendor

o Users – group of end users impacted

Programme Outside the Project

Team Team Team

2 Continued Business Justification

o Stages represent milestones in the project.

• Exception is a forecast of missing or exceeding the tolerance.

o Stage level – provided by Board to PM

o From PMI, we have Work Breakdown Structure which is identical to PRINCE2®

Months - PPD Annual

Weeks - PD Facilities Presenters

Hours - WP Inspection Booking Papers Slots Arrangements

Minutes - Tasks Visit venue - by

6 Learn from Experience

7 Tailor to suit to Project Environment

Team exercise inputs on PROJECT FAILURES

Prakash Bad resource planning, risk mitigation plan,

Four layers of Management

• CPM – Outside - Strategic long term planning and strategy

Midterm and short term plans in the Project

• Managing – PM day to day management

• Delivering – Team Manager

Organization theme across processes

Team Exercise inputs on Roles to PRINCE2® roles mapping

Business Analyst (Vendor) – Team Member

Shift Lead – Team Member

WH Manager – not sure, can be TM or member

Theme 2: Business Case

Development of Business Case

• High level - Outline BC Verify • Planned versus actual Confirm

For better resolution image, check this link:

Benefits, Dis-benefits, Output and Outcome

• Few employees may be laid off

Contents of Business Case

Example Business Case

Business Case theme across processes

• Approvers – multiple people (or one depends on the project) who

Defect will be in Issue Register

Quality Assurance difference with Project Assurance

In the exam, if a question comes on QC and QA about

Remember this tip: put them in alphabetical order.

Quality Theme across the processes