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8 PRINCE2™ COMPONENTS

This section affords a brief overview of the actual PRINCE2™ method. Here, we explain the philosophy of the 8 Components and when, where and how they are used in the 8 PRINCE2™ Processes.

In simple terms, the Components are the various planning issues that you need to address as you plan your project. The Processes include the activities that you will have to perform to plan and run your projects.

It is essential that you tailor the PRINCE2™ method according to the type and scale of your project. When planning and managing projects, ask yourself this:

"How extensively should this component and/or process be applied to this project?"
(PRINCE2™ text - © Crown Copyright 2005 Reproduced under licence from OGC)

First of all, let us take a brief look at the 8 PRINCE2™ Components shown below, starting with Organisation.

8 components.gif

© Crown Copyright 2005 Reproduced under licence from OGC

 

 

The 8 PRINCE2™ Components - Multiple-choice questions

To conclude this section, please have a go at answering the following Foundation Examination multiple-choice questions about PRINCE® Components. Note your answers to the following questions and then select the link to the answer page.

In the Project Management Team, which role undertakes the monitoring of all aspects of the project's performance and products?

  1. Project Board
  2. Project Assurance
  3. Project Manager
  4. Project Support

Which one of the following is an optional Plan in PRINCE2™?

  1. Team Plan
  2. Project Plan
  3. Stage Plan

Which type of control is used by the Project Board to check on progress during a Stage?

  1. Highlight Report
  2. Exception Report
  3. End Stage Assessment
  4. Exception Assessment

What is the minimum number of Stages in a PRINCE® project?

  1. Two
  2. Three
  3. Four
  4. Five

Which of the following is not part of Risk Analysis?

  1. Identification
  2. Evaluation
  3. Prevention

How well did you do? Here are the answers.

Before we can answer the question "Do we have a project?", it is necessary to design and appoint a suitable Project Management Team to direct and manage the project.

A PRINCE2™ Organisation is simply 'people playing roles' and consists of:

pic_p2a.gif

 

A PROGRAMME EXECUTIVE

Only required when a project is part of a programme.

 

pic_p2b.gif

 

THE PROJECT BOARD

To direct the project and ensure that it remains focused  on the Business Case.

pic_p2c.gif

 

A PROJECT MANAGER

To plan and manage the project on the behalf of the Project Board with focus on product creation.

 pic_p2e.gif 

TEAM MANAGER(S)

An optional role responsible for supervising individuals creating the product(s).

 pic_p2f.gif 

PROJECT ASSURANCE

The responsibility of the Project Board but the task may be delegated. The role entails an independent monitoring of all aspects of the project's performance and products.

 pic_p2c.gif 

PROJECT SUPPORT

An optional role to help the Project Manager set up and maintain records: e.g. configuration management and change control.

 

The Project Management Team is disbanded at the close of the project.

 

 

A PRINCE2™ plan is more than a Gantt chart. The PRINCE2™ method includes three levels of plan:

  •  A Project Plan
  • A Stage Plan
  • A Team Plan

 

The Project Plan and Stage Plans are mandatory in the PRINCE2™ method, whereas Team Plans are optional.

A PROJECT PLAN

An overview of the entire project.

The Project Plan provides a statement of how and when a project's objectives are to be achieved, by listing the major products, activities and resources required. It provides the planned project costs to be included in the Business Case, and identifies the management stages and other key control points. The Project Plan forms part of the Project Initiation Document (PID).

A STAGE PLAN

One for each management stage.

Stage Plans are expansions of the Project Plan. They contain enough information on activities, resource effort and target delivery dates for a Project Manager to maintain day-to-day control and monitoring of the project.

A TEAM PLAN

For creating product(s).

Team Plans are optional, but if required, are used to break down stage activities into a lower level of tasks required to produce the actual products listed in the Stage Plan.


There are two other types of Plan which may need to be created during the life of a project: 

An Exception Plan

To replace the remainder of a Stage Plan when it is predicted that the Stage cannot be completed within agreed tolerance.

A Contingency Plan

Plan B - to do something else. 

 

 

PRINCE2™'s key philosophy is that a Business Case must exist to drive the project.

The Business Case is developed before the project is approved, and is thereafter maintained throughout the project lifecycle.

The Business Case is a description of the reasons for the project and the justification for undertaking it.

Briefcase.jpg

 

 

A key feature of the PRINCE® method is the concept of 'Management by Exception'.

Control is about decision-making to ensure that the project is:

  1. Producing the required products which meet defined Quality Criteria.
  2. Being undertaken according to agreed plans.
  3. Remaining viable against its Business Case.

pic_p2e.gif

The PRINCE2™ method enables a controlled start, progress and closure of a project. Key controls include:

  • PROJECT INITIATION: Should the project be undertaken?
  • END STAGE ASSESSMENT: Has the stage been completed successfully, and should the next stage be undertaken?
  • HIGHLIGHT REPORTS: At pre-determined intervals for the Project Board to check on progress during a stage.
  • EXCEPTION REPORTS: Early warning of forecast deviation beyond agreed tolerance levels.
  • EXCEPTION ASSESSMENT: What action to take in response to a forecast deviation.
  • CHECKPOINT REPORT: At pre-determined intervals to check progress on product creation in work packages.
  • TOLERANCE: The permissible deviation from a plan without bringing the deviation to the attention of the Project Board.
  • PROJECT CLOSURE: Has the project delivered everything expected?

 

One of your planning tasks will be to decide how to implement these controls beneficically without making your project management bureaucratic.

 

 

Even the best planned and managed projects have risks, so the PRINCE2™ method ensures that risk management is planned and integrated into the project management.

PRINCE® defines risk as "uncertainty of outcome (whether positive opportunity or negative threat)".
(PRINCE2™ text - ©Crown Copyright 2005 Reproduced under licence from OGC)

pic_c6a.gif

 The PRINCE2™ method of risk management includes:

  • Risk Analysis
  • Risk Management Actions
  • Risk Management Activities

 

Risk Analysis includes:

  • IDENTIFICATION - What is the risk?
  • EVALUATION - Is the level of risk acceptable or not?

 

Risk Management Actions include:

  • PREVENTION - Can we do something else?
  • REDUCTION - Can we limit the impact or likelihood?
  • TRANSFERENCE - Can we pass it to a third party?
  • CONTINGENCY - Plan B
  • ACCEPTANCE - Proceed anyway

 

Risk Management Activities include:

  • PLANNING - Develop a detailed action plan
  • RESOURCING - Allocate actions to teams or individuals
  • MONITORING - Are planned actions effective?
  • REPORTING - Planned actions are being effective or not
 
All risks, and information about them, are recorded in a Risk Log, and each risk is allocated an owner.

 

 

 

 

 

Quality is about delivering products or services that are 'fit for purpose'. Customer expectations of quality are determined in the Project Brief and are a starting point from which you create a Quality Plan.

 

In the PRINCE® method, there are 4 elements to Quality Management:

  • Quality System
  • Quality Assurance
  • Quality Planning
  • Quality Control
pic_c7a.gif
QUALITY SYSTEM

A Quality System includes an organisation structure, policies, procedures and processes to implement quality management.

QUALITY ASSURANCE

Quality Assurance checks that the Quality System is working properly. It monitors all aspects of the project's performance and products.

QUALITY PLANNING

Quality Planning determines how your customer's quality requirements will be met. This is recorded in the Project Quality Plan.

QUALITY CONTROL

Quality Control is about reviewing/testing products to determine that they are 'fit for purpose'.

The PRINCE2™ method assumes that projects will be run according to a Corporate Quality Management System and, therefore, fits neatly with ISO9001:2000, if your organisation has a certificate.

 

 

Configuration Management is largely product version control, and is part of your quality controls. It applies to nearly all products and is often really hard work.

The Configuration Management discipline consists of:

  • PLANNING - deciding the level of version control.
  • IDENTIFICATION - identifying all products to be put under configuration management.
  • CONTROL - nothing changes without authorisation.
  • STATUS ACCOUNTING - recording changes.
  • VERIFICATION - reviews and audits to check configuration management is working well.
pic_c8a.gif

          Manual

 

 

 

The Configuration Management method may be manual or automated, but, above all, it must be approrpaite for the size and scale of the project, and determined early in the planning work.

pic_c8b.gif

          Automated

 

 

Projects take place in dynamic environments and change requests are inevitable. All potential changes are dealt with as Project Issues and each one needs to be examined for:

1. Degree of importance and impact on the project.

2. Cost, time scale, scope and quality implications on the project.

3. The effect on the Business Case and project benefits.

4. The potential effect on an existing risk or creating a new risk.

pic_c9a.gif

 

If the project is using a Configuration Management method, then the procedure used to control change must be integrated with it.

 

 

Asnwers to the Components multiple-choice questions

In the Project Management Team, which role undertakes the monitoring of all aspects of the project's performance and products?

  1. Project Board
  2. Project Assurance
  3. Project Manager
  4. Project Support

2. is correct. Project Assurance monitors aspects of the project's performance and products independently of the Project Manager.

Which one of the following is an optional Plan in PRINCE2™?

  1. Team Plan
  2. Project Plan
  3. Stage Plan

1. is correct. The Project Manager will always produce a Project Plan and at least two Stage Plans. They can choose whether or not they require Team Managers to produce Team Plans covering the work of the Team Manager's team.

Which type of control is used by the Project Board to check on progress during a Stage?

  1. Highlight Report
  2. Exception Report
  3. End Stage Assessment
  4. Exception Assessment

1. is correct. The Project Board receives at a pre-determined frequency Highlight Reports from the Project Manager about their progress.

What is the minimum number of Stages in a PRINCE® project?

  1. Two
  2. Three
  3. Four
  4. Five

1. is correct. As already suggested above, there are always at least two Stages - the Initiation Stage (when the detailed planning is done) and the rest of the project.

Which of the following is not part of Risk Analysis?

  1. Identification
  2. Evaluation
  3. Prevention

3. is correct. Prevention is a type of response that can be taken to mitigate a risk.

Move on now to the next section for an overview of The 8 PRINCE2™ Processes.