2. PRINCE2
C S
Organization Theme
6 Tolerance
/ Variables
8 Themes
7 Principles
7 Processes
Change Theme
Quality Theme
Risk Theme
I P S BS U M PD P C P
Business Case Theme Progress Theme
Plan Theme
QualityBenefits Risk Cost Time
Tailoring Theme
(SU) Starting up a Project, (IP) Initiating a Project, (DP) Directing a Project, (CS) Controlling a Stage,
(MP) Managing Product Delivery, (SB) Managing a Stage Boundary, (CP) Closing a Project
Continued Business
Justification
Learn from
Experience
Defied Roles and
Responsibilities
Manage by
Stages
Manage by
Exception
Focus on
Product
Tailoring
Scope
3. Project TimelineDeliveringManagementDirectionCorp
S U I P
D P
C P
M P
S B
Project
Mandate
Authorize
Project Closure
Authorize
Work Package
C S
Stage 1
C S
Stage 2
C S
Stage 3
S B
Execute
Work Package
Work Package
Complete
Work Package
・ Quality expectations
・ Capture Previous lessons.
・ “Project Brief” includes
Appoint Executive, PM,
PM Team
Business reason PPD
Outline Business Case
Project Approach
・ Exception Assessment
・ Highlight Report
・ Maintain Business Case
・ Closure recommend
・ Draft closure notification
・ Assess Business Case
・ End Project Report
・ Lesson Report
Initiation Post-ProjectFinal StageDelivery Stages
Stage
Plan
Exception
Plan
Team
Plan
Stage
Plan
Plan Theme
Progress Theme
・ Exception Report
・ Checkpoint Report
(SU) Starting up a Project, (IP) Initiating a Project, (DP) Directing a Project, (CS) Controlling a Stage,
(MP) Managing Product Delivery, (SB) Managing a Stage Boundary, (CP) Closing a Project
Project
Plan
・ Update
Business Case
Authorize
a Project
Authorize
a Stage
・ Confirm
the benefit
・ Review ConMS
Update then
replace
Escalation
・ Updated PID
・ PBS, mind map
・ Product Flow
Diagram
・ Full BC with
Planned Cost
(budget, Resource)
Benefit Review
Plan
Authorize
Initiation
Pre-Project
・ Create “PID”
4. Management Strategy
Organization Theme
Communication
Management
Strategy
Configuration
Management
Strategy
Quality
Management
Strategy
Risk
Management
Strategy
・ CMD includes means and frequency of communication internally
and externally, roles and responsibilities, report type (email,
printed doc etc.), Project Brief
・ PM creates this in IP stage and it’s reviewed in the SB stage.
・ PM will use ComMS documents template from corporate
Change Theme
Quality Theme
・ Use Risk Management Strategy documents from corporate
・ Access Proximity (Aug 3, 2015), Response Category (Avoid, Enhance, Reduce, Fallback, Transfer), Risk
Status (Active), Risk Category (Financial, Organization, or safety)
・ Impact ($) x Probability (50%) = 1000 $ x 0.5 = Expected Value 500
・ PM creates RMS
・ Identify -- > Access -- > Plan (How to respond) -- > Implement -- > Communicate
Risk Theme
・ “Issue Control” and “Change Control” procedure
・ PM will use ConMS documents template from corporate
・ Project Support updates “Quality Register” with actual to Work Package.
・ ConMS is needed to manage the creation, safekeeping and controlled change to the project’s
products.
・ PM submit then PB or change authority approves “Exception Report” with RFC or off-
specification, change budget.
・ Create “Project Description” in SU
・ Create “Quality Tolerance” and “Quality File” consists
of “Quality Register”, Quality review invitations, quality review results.
M P
5. Roles and Responsibility
Corporate/Programme Manager
・ Set corporate tolerances. Appoint Executive
Project Board
Customer Supplier
Senior User
・ Realize post-project benefits
・ Specify user requirements.
Executive
・ Create and verify Business Case
・ Approve BRP
・ Responsible for Business Case
・ Single point of accountability.
・ Appoint Project Manager
Project Manager
・ Manage the project on a day to day
basis.
Assess and update Business Case at
the CP
・ Assist Executive to create BC
・ Approve “Exception Plan”, then
report it to Project Board
Team Manager
・ Configuration Management
・ Admin support for Project
Manager
・ Issue “Change Request”.
・ Manage Team Member
・ Create ”Exception Plan”
・ Produce products consistent
with PD.
Project Assurance
・ Advises the PM
・ Monitors performance
Senior Supplier
・ Ensure that products will be
delivered as expected (Timeframe,
cost)
ProjectManagementTeam
BU S
Verifying the BC, Approve “Exception Plan” then replace “Stage Plan”, Escalate the
“Exception Report” to higher management, Accountable for project success or failure.
Team MemberTeam Member
B = Business, U = User, S = Supplier
Change Authority
・ Control change requests
and off-specifications.
・ Approve change budget
according to level
6. Business Case
BC includes 1. business reason, 2. business option (Do nothing, do minimum), 3. expected benefits. 4. expected dis-
benefits, 5. timescale, 6. cost (Project and maintenance), 7. ROI, 8. major risk
Category: Business Strategy Develop Competitive Water Product
A. Introduction Develop new high quality mineral water to increase market share to 80%
B. Overall Plan 1. Target Customer: Rich elderly consumers, Expensive Italian, French restaurants
2. Benefit: 10% sales increase, 2000 USD / year increase
3. Dis-benefit: Sales has to learn new things. Hire new people for this project.
3. Project Timescale : 6 Months
4. Target date: Oct 1, 2015
C. Business Impact 1. Tolerance: Cost: 10% Timescale : 20 business day delay
2. Market Share 20% increase by Dec. 31, 2015
3. Project Cost: 1000 USD
4. Maintenance Cost: 100 USD/ year
5. ROI : 2000 - (300+500+1000)/1100 = 0.18 for the first year.
2000 - (300+500)/100 = 1992 for the 2nd year.
6. Non Financial Aspect: High quality water increase customer loyalty.
D. Risk 1. Water quality degrades due to environmental change: Probability 30% x Impact 1000 USD =
300 USD
2. Import troubles at custom clearance: Probability 50 % x Impact 1000 USD = 500 USD
E. Business Option Do minimum
F. Recommendations 1. Develop another Business Case for not doing anything and for buying out a competitor to
save this project cost.
2. Adding this water’s photo to our New Year calendar advertising the product.