PRINCEPRINCE2, or Projects in a Controlled Environment, is a project management method. It covers the managing, controlling and organizing of a project. HistoryPRINCE (Projects in Controlled Environments) is a project management methodology for the organisation, management and control of projects. It was initially developed in the year 1989 by the Central Computer and Telecommunications Agency (CCTA) as a UK Government standard for information technology (IT) project management; however, it soon became regularly applied outside the purely IT environment. PRINCE2 was released in 1996 as a generic project management method. PRINCE2 has become increasingly popular and is now the de facto standard for project management in the UK. Its use has spread beyond the UK to more than 50 other countries. The most current revision was released in 2002 by the Office for Government Commerce (OGC), which has replaced the CCTA. ProcessesPRINCE2 is a process based approach to project management. It consists of eight high level processes:
The processes Starting up a project, Initiating a project and Closing a project are specific phases in a project. Three processes are involved in the implementation phase - Controlling a stage, Managing product delivery and Managing stage boundaries. The process Directing a project applies for the length of the project, while Planning applies for all phases except the final one - Closing a project. A PRINCE2 project must consist of at least two phases, but will typically contain four:
The implementation phase is often broken up into multiple stages if, as is often the case, it proves sensible. Starting up a projectThe purpose of this process is to set the project up in the right way. It is a pre-project process that ascertains if the project would be worthwhile and viable before seeking commitment of resources. Its major input is the Project Mandate. It involves identifying the senior decision makers required to make up the project board who will oversee the project. The project board selects a project manager. The reasons for the project are outlined in a Project Brief. The project approach is decided, as is the plan for the initiation stage, to give the project a firm foundation. The actual elements of Starting Up a Project are:
Directing a projectThis process defines the functions of the Project Board who are responsible for the project. The project manager keeps the Project Board informed with regular reports, who leave the day to day management of the project to the Project Manager. They only become involved at stage boundaries when they must approve progress so far and give the go ahead to the next stage. A fundamental principle of PRINCE2 is management by exception, which means the only other time the Project Board make decisions about the project is when the project is forecast to go off course. The actual elements of Directing a Project are:
PlanningPlanning is a process involved throughout the project's life-cycle. The actual elements of Planning are:
Initiating a projectIn order for a project to be approved it must be carefully planned to show how it will meet its goals. This requires making detailed estimations of costs. These go together to create the main product of this process, the PID or Project Inititiation Document, which must be approved by the Project Board before implementation can commence. The actual elements of Initiating a Project are:
Controlling a stagePRINCE2 projects are divided into stages so the project can be more easily managed and controlled. The exact number of stages is not fixed; it depends on the size of the project and the degree of risk. This process cover the day-to-day management of the project by the Project Manager. The actual elements of Controlling a Stage are:
Managing product deliveryPRINCE2 is a product based system. A product can be a physical thing like a book, or it could be a more intangible thing like a service agreement. In fact everything created by PRINCE2 including documents is a product. Products can be created by anyone including external suppliers. This process creates the products of the project and is where most of its resources are used. The actual elements of Managing Product Delivery are:
Managing stage boundariesAccording to PRINCE2 principles, each stage must be completed and approved by the project board before the go ahead is given to proceed to the next stage. The actual elements of Managing Stage Boundaries are:
Closing a projectAnother principle of PRINCE2 is that projects must be closed down in a controlled and orderly way. This involves evaluating the project's result (The Post Project Review). Any lessons learned are recorded, a handover document is created if necessary and a post implementation review is planned. The actual elements of Closing a Project are:
ComponentsPRINCE2 recognises eight key concepts or what it calls components in project management: Business CaseThe purpose of the Business Case is to justify the project – it drives the business process and ensures the project’s progress is aligned with the business’ objectives. The Business Case must be valid for life of project. The owner of the business case is the project’s Executive. A major input to the business case will be the project mandate. The OrganisationDefines all the roles and responsibilities for the people managing and executing the project. PRINCE2 assumes that projects take place in a Customer – Supplier environment. The main roles are:
PlansPRINCE2 plans need to be approved before they are put into action. There are 3 levels of plan:
A fourth type of plan, an exception plan, is used to replace the stage plan when a project deviation occurs. ControlsControls ensure the right projects are produced at the right time and that the project remains viable against the business case. PRINCE2 uses management by exception. Therefore there is no standard requirement to hold meetings with the Project Board, who will be informed immediately if there are exceptions. The main types of control used are:
Management of RiskProjects are unique undertakings and therefore are subject to unpredictability. Risk is “uncertainty of outcome”. The management of risk is about keeping risks within acceptable bounds, in an efficient and cost effective manner. Risk management has 3 main principles:
Quality in a Project EnvironmentThe aim of a project is to produce products that are fit for purpose and satisfy the needs and expectations of the customer. The quality expectations are stated in the Project Mandate, Project Brief and the PID. There are 4 main elements that make up quality management:
Configuration ManagementConfiguration management is concerned with controlling all of the products of the project. A configuration is a logically related set of products that need to be managed as a composite set. In project management terms, this means all the products and deliverables of the project. Configuration management consists of 5 main functions:
Change ControlControlling change is dealt with by the technique change control (see below). TechniquesPRINCE2 identifies three specific techniques for use on projects. Product based planningPRINCE2 uses product based planning as opposed to activity based planning. Product based planning involves the production of:
Change controlIn PRINCE2 all changes are treated as Project Issues, of which there are three types:
All project issues are the responsibility of the Project Manager and are recorded in an Issues Log. Requests for change must be approved by the Project Board, who will require an impact analysis of the change. Off specifications can be dealt with directly by the project manager if they fall within pre-determined tolerance limits. The project board can approve an off specification without any change, known as a concession. Quality reviewsPRINCE2 requires products to be reviewed for quality. This takes place in a quality review meeting, which identifies errors in the product. The quality review meeting will not attempt to solve the problems it identifies. StrengthsPRINCE2 has a number of strengths:
WeaknessesPRINCE2 has weaknesses:
References
External link
See alsonl:Prince2
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