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Project Management

Prince2 Foundation

Prince2 Foundation
2017 Edition
PROGRAM

1. Overview

2. Principles

3. Themes

4. Processes
1. Overview
1. Prince2 Certification

2. Introduction to Prince2

3. Structure of Prince2

4. Definitions and concepts

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Prince2 Certifications

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Prince2 Certifications
Prince2 Foundation Exam

1 hour 60 Questions 1 Mark each

Closed-book
33 out of 60
Exam

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Introduction to Prince2

PRINCE2 (Projects IN Controlled Environments) is one of the most widely

used project management methods in the world.

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Introduction to Prince2

It is a generic method that can be applied to any project regardless of its scale, type,
organisation, geography or culture.

It is achieved by
 Separating the management of project work from the specialist contributions
 Focusing on describing what needs to be done, rather than prescribing how everything is done

It is based on established and proven best practices and governance for project
management.
 Established by OGC (UK)

Shows that participants focus on the viability of the project in relation to its business case
objectives

 Provides mechanism to evaluate Business Justification

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Structure of Prince2

PRINCE2 is a project management methodology that includes four integrated elements of


principles, themes, processes and the project environment.

7 7 7
PRINCIPLES THEMES PROCESSES

TAILORING PRINCE2 TO THE PROJECT ENVIRONMENT

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Structure of Prince2

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Structure of Prince2

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Structure of Prince2
What PRINCE2 Does Not Provide?
Structure of Prince2
What Makes a Project a ‘PRINCE2 Project’?

For a project to be following PRINCE2, it must be possible to demonstrate that the project:
• Is applying PRINCE2’s principles.
• Is meeting the minimum requirements set out in the PRINCE2 themes.
• Has project processes that satisfy the purpose and objectives of the PRINCE2 processes.
• Is either using PRINCE2’s recommended techniques or using alternative, equivalent
techniques.

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Definitions and concepts
What is a Project?

Project is a temporary organisation that is created for the purpose of delivering one or more
business products according to an agreed business case.

• In an organization, maintaining current business operations, such as maintaining profitability,


service quality, etc., is known as ‘business as usual’.

• On the other hand, an organization launches projects to transform business operations in order to
introduce new products or services and improve current ‘business as usual’ processes.

• Projects are the means by which an organization introduces change, making it different from
‘business as usual’.

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Definitions and concepts
Project vs Business as Usual

The following are the five characteristics of a project that distinguish it from business as usual:

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Definitions and concepts
Project Management

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Definitions and concepts
6 Aspects of Project Performance
Definitions and concepts
Role of project Manager

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Definitions and concepts
A Prince2 project can have multiple contacts: stand-alone, part of program, part of portfolio, in a
commercial environment

Stand-alone Projects

Projects can exist as stand-alone entities, outside the governance structure introduced by
programmes or portfolios.

Projects within Programmes

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Definitions and concepts

Projects within portfolio

Projects in commercial environment

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Definitions and concepts

Prince2 and Delivery Approaches

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MODULE 1 QUIZ

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2. Principles
1. Continued business justification
2. Learn from experience
3. Defined Roles and responsabilities
4. Manage by stages
5. Manage by exception
6. Focus on products
7. Tailor to suit the project

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PRINCE2 PRINCIPLES

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PRINCE2 PRINCIPLES

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CONTINUED BUSINESS JUSTIFICATION

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LEARN FROM EXPERIENCE

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DEFINED ROLES AND RESPONSIBILITIES

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MANAGE BY STAGES
MANAGE BY EXCEPTION

A PRINCE2 project has defined tolerances for each project objective to establish limits of
delegated authority.

• 4 levels of management
FOCUS ON PRODUCTS
TAILOR TO SUIT THE PROJECT

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TAILOR TO SUIT THE PROJECT

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TAILOR TO SUIT THE PROJECT

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MODULE 2: QUIZ

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3. Themes
1. Business Case
2. Organisation
3. Quality
4. Plans
5. Risk
6. Change
7. Progress

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PRINCE2 THEMES

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PRINCE2 THEMES

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Business Case Theme

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BUSINESS CASE

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BUSINESS CASE

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BUSINESS CASE
• PRINCE2 Products need to be used, Not just delivered

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BUSINESS CASE
BUSINESS CASE
The Contents of a Business Case
• Executive Summary: A short overview of the Business Case for upper management
• Reasons: Reasons for doing the project (comes from project mandate)
• Business Options: PRINCE2 teaches that there are always three options to consider concerning any investment:
• Do nothing
• Do the minimum
• Do something
• Expected Benefits: List each benefit and how and when it can be measured.
• Expected Dis-Benefits: According to PRINCE2 a dis-benefit is an outcome that is seen as negative by one or more
stakeholders.
• Timescales: Project starts and ends, when benefits will be realized.
• Costs: Cost for project plus expected on-going maintenance costs after the project.
• Investment Appraisal: ROI information / calculation (costs v. benefits).
• Major Risks: A summary of the major risks (comes from Risk Register).

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BUSINESS CASE
• Investment Appraisal Techniques

 Whole -life costs


 Net benefits
 Return on Investment (ROI)
 Payback period
 Discounted cash flow
 Net Present Value
 Sensitivity Analysis

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Organisation Theme

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ORGANISATION

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ORGANISATION
PRINCE2 identifies three principal categories of project stakeholders.

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ORGANISATION
• Four levels of Management

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ORGANISATION
• PRINCE2’s Requirements for an Organisation

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ORGANISATION
• Mandated project management team roles
• Executive
 Project board • Senior user
• Senior Supplier

 Project Assurance team (giving advice and guidance on issues:


PMO)
 Change Authority
 Project manager
 Project support team (Administrative role)
 Team manager (Optional, could be done by Project manager)

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Quality Theme

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QUALITY

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QUALITY

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QUALITY
• Quality planning

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QUALITY
• Quality control

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QUALITY
• Relationship between Product, Quality Planning and Quality Control

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QUALITY
• Quality assurance & Project assurance
QUALITY
• Management products

The quality records are maintained in the quality register

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QUALITY
• Example of Quality Register

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QUALITY
• Quality Inspections

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QUALITY
• Quality Records

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QUALITY
• Quality Review Techniques
QUALITY

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Plan Theme

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PLANS

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PLANS

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PLANS

• The project plan provides a statement of how and when project’s time, cost, scope quality performance
targets are to be achieved, by showing the major products, activities and resources required for the project

• The stage plan is similar to the project plan in content, but each element broken down to a level of
detail required to be an adequate basis for the day-to -day control by the project manager

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PLANS

Example:

If during a stage, the Project Manager is forecast to go out of tolerance on cost by 15% (or does so), and then
they must warn the Project Board about this deviation (also called “Exception”). The Project Board will most likely
ask for an update plan to complete the current stage, and this plan (Exception Plan) will replace the current
Stage Plan. So the Project Manager will create an Exception Plan and if approved by the Project Board, will
replace the current Stage Plan to allow the Project Manager to complete the current stage.

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PLANS
PLANS

• Management products

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PLANS

 Project Product Description

The Project Product Description is a specific type of Product Description. It’s only focused on the final
product. This type of description defines what the project must deliver to gain acceptance.

 Product Description

The Product Description presents information about product components of a project.

A product breakdown structure (PBS) is a hierarchical of the products to be produced during plan; a
PBS contains only products

 Project flow Diagram

Product flow diagram shows the sequence of production and interdependencies of the products listed in a
product breakdown structure.

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PLANS

• Planning Steps

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PLANS

• Planning Steps
PLANS

• Planning Steps
PLANS
• Planning Steps
PLANS

• Planning Steps

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PLANS

• Planning Steps

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PLANS

• Planning Steps

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Risk Theme

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RISK

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RISK

• Risk: Threat and Opportunity

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RISK

• Risk Management

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RISK

• Management products

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RISK

• Risk Budget

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Change Theme

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CHANGE

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CHANGE
• Issue
CHANGE

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CHANGE

• Management products

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CHANGE
• Issue and change control procedure

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Progress Theme

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PROGESS

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PROGESS
PROGESS

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PROGRESS

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PROGESS
Sits outside the project but sets overall requirements and tolerance
levels the project

Has overall control at a project level as long forecasts remain within


tolerance and allocates tolerances for each management stage to the
Project Manager

Has day-to-day control for a management stage within the tolerance


limits laid down by the project board

Has control for a work package but only within the tolerances agreed
with the project manager Raises an issue when there is a forecast of
exceeding tolerance limit
PROGESS
• Baselines for Progress Control

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PROGESS
• Reviewing Progress

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PROGESS
• Reporting Progress

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PROGESS
• Raising Exceptions
MODULE 3: QUIZ

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4. Processes
1. Starting up a Project
2. Directing a Project
3. Initiating a Project
4. Controlling a Stage
5. Managing Product Delivery
6. Managing a Stage Boundary
7. Closing a Project

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PROCESSES

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PROCESSES

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STARTING UP A PROJECT

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STARTING UP A PROJECT

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DIRECTING A PROJECT

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DIRECTING A PROJECT

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INITIATING A PROJECT

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INITIATING A PROJECT

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INITIATING A PROJECT

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CONTROLLING A STAGE
CONTROLLING A STAGE

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MANAGING PRODUCT DELIVERY

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MANAGING PRODUCT DELIVERY

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MANAGING A STAGE BOUNDARY

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MANAGING A STAGE BOUNDARY

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CLOSING A PROJECT

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CLOSING A PROJECT

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MODULE 4: QUIZ

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