Professional Documents
Culture Documents
P2 User Guide
P2 User Guide
Prince 2
Foundation
(Version 4.0)
User Guide
Printed and Published by
Key Skills Limited
Charles House
Barony Park
Nantwich
Cheshire
CW5 6PQ
The Company has endeavoured to ensure that the information contained within this
User Guide is correct at the time of its release.
The information given here must not be taken as forming part of or establishing any
contractual or other commitment by Key Skills Limited and no warranty or
representation concerning the information is given.
All rights reserved. This publication, in part or whole, may not be reproduced, stored
in a retrieval system, or transmitted in any form or by any means – electronic,
electrostatic, magnetic disc or tape, optical disc, photocopying, recording or
otherwise without the express written permission of the publishers, Key Skills
Limited.
Foreward 4
Section 1 5
Hardware / Software Pre-requisites
Section 2 5
Installation Procedure
Section 3 6
Operating the software
3.1 Sign-on Procedure 6
3.2 The User Interface 6
Section 4 8
Course Notes
4.1 An Introduction to Prince 2 8
4.2 Prince 2 Processes 11
4.3 Prince 2 Components 15
4.3.1 Organisation 15
4.3.2 Planning & Control 17
4.3.3 Other Components 22
4.4 Prince 2 Techniques 27
Appendix 30
Glossary 30
Processes/Components Matrix 40
3
Foreward
This interactive overview of the Prince 2 Project Management Method is the product
of a joint venture development between Key Skills Limited and SPOCE Project
Management Limited.
SPOCE were one of the first training organisations to be accredited for Prince 2
training and have provided the subject matter content of this Foundation course.
Key Skills Limited are a leading developer and distributor of multi-media training
products who specialise in the area of project and programme management.
Prince 2 Foundation uses the very latest multi-media educational techniques to
provide a learning environment which is stimulating, easy-to-use and stress-free.
The aim of this course is to take students with little or no knowledge of Prince 2 to
the level where they could take the Foundation (Part 1) examinations with a high
degree of confidence in achieving a pass. The examination within the course
package uses previous examination questions which are accessed at random to
provide an accurate simulation of the real thing.
An important complement to the training course is the unique on-line electronic
copy of the full Prince 2 manual. This can be run in parallel with the course to
provide a complete source of reference to facilitate your understanding of the whole
method.
We hope you enjoy the course and that you find it a useful starting point in your
Prince 2 training programme.
4
Section 1 Hardware / Software Pre-requisites
For optimum performance, you should operate this multi-media course on a
computer with the following minimum specification:
• IBM/PC Pentium 100 Processor with 16 mb RAM
• 8x CD-ROM drive
• Sound-card & speakers
• SVGA Monitor
Note
The course uses 800x600 resolution
• Mouse/Pointing device
• A Windows (95/98 or NT) environment is also needed.
The electronic Prince 2 manual which is contained on the CD-ROM provided with
Prince 2 Overview is in Adobe Acrobat format, and an Acrobat Viewer is embedded
within the courseware.
5
Section 3 Operating the software
The course is invoked by clicking on the icon in the Program Group Window.
6
Section 3
3.2 The User Interface
Each lesson is represented by one of the “boxes” on the menu screen, for example:
Go to Book Mark
Each of these lesson boxes is divided into two distinct areas. If you click on the
upper two-thirds of each box then you will be taken to the start of the corresponding
lesson.
The lower one-third of each box is the book mark area and a red bar will appear in
this area to show whether you have part or fully completed the corresponding
lesson. By clicking in the book mark area you will be taken to your last point of
study within the corresponding lesson.
Note
The bookmarking system is switched off as soon as you move around the course
using either the Index or the Contents buttons at the bottom of each page.
Throughout the course, the main user controls are located at the bottom of the
screen, and their functions are as shown below:
Note
It is also possible to move backwards and forwards through each lesson using the
Page-Up and Page-Down key on your computer’s keyboard.
Newcomers to the course will gain most benefit from starting at the beginning of the
first lesson and working their way through, sequentially, to the end. However, the
package is also a valuable source of reference and it is possible to re-visit specific
lessons, or parts of a lesson, at any time. The Contents and Index facilities are
particularly useful for browsing in this way.
7
Section 4 Course Notes
4.1 An Introduction to Prince 2
PRINCE was established in 1989 by CCTA (the Central Computer and
Telecommunications Agency). The method was originally based on PROMPT, a
project management method created by Simpact Systems Ltd in 1975. PROMPT
was adopted by CCTA in 1979 as the standard to be used for all Government
information system projects. When PRINCE was launched in 1989, it effectively
superseded PROMPT within Government projects. PRINCE remains in the public
domain and copyright is retained by the Crown. PRINCE is a registered trademark
of CCTA.
8
Section 4
4.1 An Introduction to Prince 2
What is PRINCE?
PRINCE (PRojects IN Controlled Environments) is a structured method for effective
project management. It is a de facto standard used extensively by the UK
Government and is widely recognised and used in the private sector, both in the UK
and internationally. PRINCE, the method, is in the public domain, offering non-
proprietorial best-practice guidance on project management. PRINCE® is, however,
a registered trademark of CCTA.
The key features of PRINCE are:
• its focus on business justification
• a defined organisation structure for the project management team
• its product-based planning approach
• its emphasis on dividing the project into manageable and controllable stages
• its flexibility to be applied at a level appropriate to the project.
9
Section 4
4.1 An Introduction to Prince 2
10
Section 4
4.2 Prince 2 Processes
This process does not cover the day-to-day activities of the Project Manager.
11
Section 4
4.2 Prince 2 Processes
12
Section 4
4.2 Prince 2 Processes
This process covers these activities, together with the on-going work of risk
management and change control.
13
Section 4
4.2 Prince 2 Processes
Planning (PL)
Planning is a repeatable process, and plays an important role in other processes,
main ones being:
• Planning an Initiation Stage (SL16)
• Planning a Project (IP2)
• Planning a Stage (SB1)
• Producing an Exception Plan (SB6).
14
Section 4
4.3 Prince 2 Components
Project Assurance
Project Manager
Project Support
Team Manager
15
Section 4
4.3 Prince 2 Components
The Project Board represents the business, user and supplier interests of the
project at managerial level.
The Project Board members must have authority because they are the decision-
makers and responsible for commitment of resources to the project. It is therefore
necessary for them to be sufficiently senior to fulfil this role.
Project Board membership is a part time job which involves being kept informed
regularly but only asks for joint decision making at key points in the project.
The project board are accountable for:
• approval of the appointment and responsibilities of the project manager
• approval of all major plans
• signing off completion of each project stage
• authorising the start of the next project stage
• ensuring required resources are committed to the project
• arbitrating on conflicts within the project
• liaison and communication with the world outside the project
The Project Manager is given the authority to run the project an a day-to-day basis
on behalf of the Project Board within the constraints laid down by the Project Board.
The Project Manager has the responsibility to ensure the project produces:
• the required products
• to the right standard of quality
• within the time
• within the budget
In addition the Project Manager is responsible for producing a result which is
capable of achieving the benefits as defined in the Project Initiation Document.
The Project Board do not work full time on the project.
A role is therefore defined within the PRINCE 2 structure to which members of the
project board may delegate responsibilities for monitoring the project’s performance
and products independent of the Project Manager.
This is the Project Assurance function and members of it report to the relevant
member of the Project Board . This is in order to give the Project Board confidence
that the project remains consistent with and continues to meet a business need and
that no change to the external environment.
16
Section 4
4.3 Prince 2 Components
Project Support
The Project Manager is likely to be very busy and administrative help may well be
supplied by a Project Support function.
Also there may be mandated use of certain tools in which the Project Manager has
insufficient expertise such as planning and control or configuration management
tools (more of these subjects later).
In many instances a central Project Support function will serve many projects.
Summary
Establishing an effective organisational structure for a project is crucial to its
success. Every project has need for direction, management, control and
communication.
PRINCE 2 offers an approach which provides these elements and is sufficiently
flexible to be mapped to any environment.
The Project Board are strictly part time on the project, have individually assigned
responsibilities and make the high level decisions. The Project Manager may be
part time or full time.
The Project Board provide resources and the Project Manager manages them on a
day to day basis.
The Project Board are responsible for the success of the project .
The Project Manager reports to the Project Board and carries out their instructions.
17
Section 4
4.3 Prince 2 Components
Levels of Plan
PROJECT PLAN
STAGE PLAN
TEAM PLAN
The size and complexity of the project and the level of control required will be used
in deciding the number of levels of plan required.
The Project Plan is mandatory.
A project will always be broken down into at least 2 stages. Small projects may
have only one stage after Initiating a Project and so may possibly need only one
level of plan.
Note
A stage within PRINCE 2 is a division of the project for management purposes and
is a length of time. Stages cannot run in parallel.
If there is need to use Team Plans, the Stage Plan would normally act as a
summary of the key start and end dates.
The plan being used for control purposes by the Project Manager, normally the
Stage Plan, will incorporate ‘tolerance’ on finance and time as determined by the
Project Board. This will give the Project Manager some room to maneuver without
escalation to the Project Board. Tolerance may, of course, be set at zero if
applicable.
The number of levels of plan chosen for your project should reflect a balance
between:
• the different information and control needs of the Project Manager and the
Project Board
• the effort of creating extra plans
• the problems involved in ensuring compatibility between different plan levels
18
Section 4
4.3 Prince 2 Components
Products
A product is any input to or output from a project. Products may make up the final
deliverable from the project or may be items delivered on the way through the
project.
Products are defined for projects for two reasons:
1. to ensure that the people working on the project know what they expected to
produce
2. so that the project can be controlled by monitoring the satisfactory completion
of products which signifies the completion of the activities which produced
them.
Composition
This will vary according to the type of final product but is basically a list of the items
one would expect to find in the product. For example in a Project Plan - Project level
Gantt Chart, Project Level activity network.
Derivation
This describes the products or knowledge which are input to the process to produce
this product. For example - Project Brief, Senior User.
Format
This describes how the product should be presented. For example - on presentation
foils in landscape with A4 paper back up.
Quality criteria
This describes the measurable criteria which will be applied to determine whether
the product is acceptable. For example - every team members work planned,
project timescale acceptable to the users.
19
Section 4
4.3 Prince 2 Components
Quality method
This describes how the adherence to quality criteria will be determined.
For example - a review meeting, Senior User to approve on behalf of all users.
Estimating
The fundamental principle of estimating within PRINCE 2 is that estimating is not
going to produce an accurate prediction of what will happen but it is better than no
estimating at all.
PRINCE 2 does not recommend any specific estimating methods or tools but it
does define two basic approaches - top down and bottom up.
20
Section 4
4.3 Prince 2 Components
Bottom up estimating
This involves an estimate for each product which is built up into a figure for the
whole of the job in hand. This method will be used for a stage plan.
In addition to the above, PRINCE 2 identifies the major steps in a typical estimating
process as:
• Identifying resource types required
This will include human resources who may require specific skills depending
on the nature of the project, and also non-human resources such as
equipment, travel, money.
• Identifying the time and effort required for each activity.
Controls
Control is all about decision making and is the central role of project management.
The purpose of control is to ensure that the project:
• is producing the required products which meet the defined acceptance criteria
• is being carried out to schedule and in accordance with resource and cost
plans
• remains viable against the business case.
Controls ensure that, for each level of the Project Management Team, the next level
up can:
• monitor progress
• compare achievement with plan
• review plans and options against future scenarios
• detect problems
• initiate corrective action
• authorise further work.
21
Section 4
4.3 Prince 2 Components
Types of risk
Risks fall broadly into two categories:
Business Risks cover the threats associated with a project not delivering the
products which can achieve the expected benefits.
Examples of business risks are:
• change in the business area involved
• legislative changes
• change in political factors such as public opinion
Project Risks cover the threats to the management of the project and hence the
achievement of the project’s end results within cost and time.
Examples of project risks are:
• failure of third party to deliver satisfactorily
• skill shortages
• requirements not fully understood
Risk Analysis
This comprises three activities:
• Risk Identification which determines the potential risks that could be faced by
the project
22
Section 4
4.3 Prince 2 Components
The actions which may be taken break down to five broad types:
• Prevention
stop the risk occurring or prevent it having any impact on the project or
business
• Reduction
reduce the likelihood of the risk developing or limit the impact to acceptable
levels
• Transference
pass the impact of the risk to a third party via perhaps an insurance policy
• Contingency
where actions are planned to come into force as and when the risk occurs
• Acceptance
where the Project Board decides to go ahead and accept the possibility that
the risk may occur.
Risk Management
Once the risks have been identified and evaluated, attention needs to focus on
managing them.
Risk management consists of four major activities:
• planning for any countermeasure actions itemised during the risk evaluation
activities
• resourcing which will identify and assign resources to be used for the work to
carry out the risk avoidance or amelioration actions.
• monitoring which will involve checking planned actions are having the desired
effect and watching for early signs that a risk is developing.
• controlling which is taking action to ensure that the events of the plan really
happen.
23
Section 4
4.3 Prince 2 Components
Quality System
A quality system will normally include an organisation structure, procedures and
processes to implement quality management. PRINCE 2 itself will typically form part
of a corporate quality system where it has been adopted as a corporate standard.
The quality system and the corporate quality policy may be dependent on the
international standard for quality systems ISO 9001 issued under the authority of
the International Organisation for Standardisation (ISO). The PRINCE 2 manual
contains a description of which parts of ISO 9001 are satisfied by PRINCE 2.
Quality Assurance
This element sets up the Quality System and assures that it operates to achieve an
end product which meets customer quality expectations. Quality assurance is done
before the job.
Quality Planning
This element establishes the objectives and requirements for quality on the project
and lays out the activities for the application of the quality system.
Quality Control
This is the means of ensuring the products meet the quality criteria specified for
them. Quality control applies to the completed product and is therefore done after
the job has been done .
24
Section 4
4.3 Prince 2 Components
3. Configuration Management
What is Configuration Management?
Configuration Management may be thought of as product control.
The construction of a car is a good example.
What components have to be brought together to assemble a particular model
of car?
What about components being redesigned and updated?
If a replacement window winder for a five year old example is required, the car’s
serial number in conjunction with the records kept by configuration management will
ensure the right one is supplied.
4. Change Control
Purpose of change control
Change during a project is inevitable. However, change to specification or scope
can potentially ruin any project unless carefully controlled.
The control of change means the assessment of the impact of potential changes,
their importance, their cost, and a judgmental decision by management to decide
whether to include them or not.
Any approved changes must be reflected in any necessary corresponding change
to schedule and budget.
25
Section 4
4.3 Prince 2 Components
Authority levels
In some projects the Project Board may choose to delegate consideration of
changes to a group often called a change authority.
A budget to pay for changes is normally given to this change authority. This
arrangement can avoid a number of mid stage assessments where the frequency of
changes is high.
The Project Board needs to decide before the project moves out of initiation where
the authority for making changes lies, and the responsibilities must be written into
the appropriate job descriptions.
26
Section 4
4.4 Prince 2 Techniques
1. Change Control
Project Issues - All changes are treated as types of Project Issue and are handled
through the same change control process. A Project Issue can be:
• a request to change requirements (request for change)
• a suggestion for improving products (request for change)
• a record of some current or forecast failure to meet a requirement
(off specification)
• a question on any topic
Every issue is sent to the Project Manager and entered on the Issue Log together
with its priority as indicated by the author:
1. a must
2. an important change. It absence would be very inconvenient
3. a nice to have
4. a cosmetic change
5. no change involved
27
Section 4
4.4 Prince 2 Techniques
2. Quality Review
Why have quality reviews?
Benefits which can be gained from quality reviews include:
• assessment of the product against criteria in the product description
• early identification of defects
• measurement of progress by the formal completion of products
• shared ownership of products
28
Section 4
4.4 Prince 2 Techniques
3. Project Filing
This is a suggested filing system to be used by a project.
The files decided upon may be tied in with the configuration management system
as required.
There are 3 major types of files within PRINCE 2:
• Management
• Specialist
• Quality
29
Appendix
Glossary
A
Acceptance Criteria
A prioritised list of criteria which the final product(s) must meet before the Customer
will accept them. They should be defined as part of the Project Brief and agreed
between Customer and Supplier no later than the Project Initiation Stage. They
should be in the Project Initiation Document.
B
Baseline
A snapshot; a position or situation which is recorded. Although the position may be
updated later, the baseline remains unchanged and available as a reminder of the
original state and as a comparison against the current position.
Business Case
Information which describes the justification for setting up and continuing a PRINCE
project. It provides the reasons (answers the question 'Why?') for the project. It is
updated at key points throughout the project.
C
Change Authority
A group to which the Project Board may delegate responsibility for the consideration
of Requests For Change. The Change Authority is given a budget and can approve
changes within that budget.
Change Budget
The money allocated to the Change Authority to be spent on authorised Requests
For Change.
Change Control
The procedure to ensure that the processing of all Project Issues is controlled,
including the submission, analysis and decision-making.
30
Appendix
Glossary
Checkpoint
A team level, time-driven review of progress.
Checkpoint Report
A progress report of the information gathered at a Checkpoint meeting, which is
given by a team to the project manager, and provides reporting data as defined in
the Project Initiation Document.
Concession
An Off-Specification which is accepted by the Project Board without corrective
action.
Configuration Management
A discipline, normally supported by software tools, which gives management
precise control over its assets (eg. the products of a project), covering identification,
control, status accounting and verification of the products.
Contingency Plan
A plan which provides an outline of decisions and measures to be taken if defined
circumstances, outside the control of a PRINCE project, should occur.
Corporate Body
Used to describe any company, government department, corporation or charitable
body which is involved in the project. It can be a customer for the end results,
supplier of specialist skills or deliverables, assurance or auditing body. The word is
used to avoid confusion particularly between the public and private sectors.
Customer
The person or group; who commissioned the work and will benefit from the end
results.
31
Appendix
Glossary
D
Deliverable
An item which the project has to create as part of the requirements. It may be part
of the final outcome or an intermediate element on which one or more subsequent
deliverables are dependent. According to the type of project, another name for a
deliverable is 'product'.
E
End Project Report
The review by the Project Board and Project manager of the End Stage Report to
decide whether to approve the next Stage Plan (unless the last stage has now been
completed). According to the size and criticality of the project, the review may be
formal or informal. The approval to proceed should be documented as an important
management product.
Exception
A situation where it can be forecast that there will be a deviation beyond the
tolerance levels agreed between Project Manager and Project Board (or between
Project Board and corporate or programme management).
Exception Report
A report which describes an exception, provides an analysis and options for the way
forward and identifies a recommended option. It is given by the Project Manager to
the Project Board.
Executive
The chairman of the Project Board, representing the Customer.
32
Appendix
Glossary
F
Follow-on Action Recommendations
A report which can be used as input to the process of creating a Business
Case/Project Mandate for any follow-on instructions covering incomplete products
or outstanding issues. It also sets out proposals for Post Implementation Review of
the project's products.
H
Highlight Report
Report from the project Manager to the project Board on a time-driven frequency on
stage progress.
Issue Log
A log of all issues and change request raised during the project, showing details of
each issue, its evaluation, what decisions about it have been made and its current
status.
33
Appendix
Glossary
O
Off-Specification
Something which should be provided by the project, but currently is not (or is
forecast not to be provided). This might be a missing product or a product not
meeting its specification.
Outcome
The result of a project. Useful term where the project result is not an easily
definable 'product'.
P
Post Implementation Review
One or more reviews held after project closure to determine if the expected benefits
have been obtained.
PRINCE
A method which supports some selected aspects of project management. The
acronym stands for PROJECTS IN Controlled Environments.
PRINCE Project
A project whose product(s) can be defined at its start sufficiently precisely as to be
measurable against pre-defined metrics and which is managed according to the
PRINCE method.
Process
That which must be done to bring about a particular outcome, in terms of
information to be gathered, decisions to be made and results which must be
achieved.
Producer
This role represents the creator(s) of a document which is the subject of a Quality
Review. Typically it will be filled by the person who has produced the product, or
who led the team responsible.
34
Appendix
Glossary
Product
Any input to or output from a project. PRINCE distinguishes between management
products (which are produced as part of the management of the project), specialist
products (which are those products which make up the final deliverable) and quality
products (which are produced for or by the quality process). A product may itself be
a collection of other products.
Product Checklist
A list of the major products of a plan, plus key dates in their delivery.
Product Description
A description of a product's purpose, composition, derivation and quality criteria. It
is produced at planning time, as soon as the need for the product is identified.
Project
A temporary organisation which is created for the purpose of delivering one or more
business products according to a specified business case.
Project Assurance
The Project Board's responsibilities to assure itself that the project is being
conducted correctly.
Project Brief
A description of what the project is to do; a refined and extended version of the
Project Mandate, which has been agreed by the Project Board and which is input to
Project Initiation.
35
Appendix
Glossary
Project Issue
A term used to cover both general issues and change requests raised during the
project. Project Issues can be about anything to do with the project. They cover
questions, suggestions, Requests For Change and Off-Specifications.
Project Management
The planning, monitoring and control of all aspects of the project and the motivation
of all those involved in it to achieve the project objectives on time and to the
specified cost, quality and performance.
Project Manager
The person given the authority and responsibility to manage the project on a day-to-
day basis to deliver the required products within the constraints agreed with the
Project Board.
Project mandate
Information created externally to the project, which forms the terms of reference and
is used to start up the PRINCE project.
36
Appendix
Glossary
Project plan
A high-level plan showing the major products of the project, when they will be
delivered and at what cost. An Initial Project Plan is presented as part of the
Project Initiation Document. This is revised in later versions as information on actual
progress appears. It is a major control document for the Project Board to measure
actual progress against expectations.
Project Records
A collection of all approved management, specialist and quality products and other
material, which is necessary to provide and auditable record of the project.
Note
This does not include working files.
Quality
The totality of features and characteristics of a product or service which bear on its
ability to satisfy stated and implied needs.
37
Appendix
Glossary
Quality Review
A Quality Review is an inspection with a specific structure, defined roles and
procedure designed to ensure a document's completeness and adherence to
standards. The participants are drawn from those with an interest in the document
and those with the necessary skills to review its correctness. An example of the
checks made by a Quality Review is 'does the document match the Quality Criteria
in the Product Description?'
Quality System
see Quality Management System
Reviewer
A person asked to review a product which is the subject of a Quality Review.
Risk Log
A document which provides identification, estimation, impact evaluation and
countermeasures for all risks to the project. It should be created during the start-up
of the project and developed during the life of the project.
Senior Supplier
The Project Board role which provides knowledge and experience of the main
discipline(s) involved in the production of the project's deliverable(s).
Senior user
A member of the Project Board, accountable for ensuring that user needs are
specified correctly and that the solution meets those needs.
38
Appendix
Glossary
Stage
A division of the project for management purposes. The Project Board approves
the project to proceed one stage at a time.
Supplier
Supplier is defined as the group or groups responsible for the supply of the project's
products.
T
Tolerance
The permissible deviation above and below a plan's estimate of time and cost
without escalating the deviation to the next level of management. Separate
tolerance figures should be given for time and cost.
User(s)
The person or group who will use the final deliverable(s) of the project.
W
Work Package
The set of information relevant to the creation of one or more products. It will
contain the Product Description(s), details of any constraints on production such as
time and cost, interfaces, and confirmation of the agreement between the Project
Manager and the person or Team Leader who is to implement the Work package
that the work can be done within the constraints.
39
Appendix
Processes/Components Matrix
Processes/Components Matrix
The matrix below is reproduced from Lesson 1 and shows the relationships which
exist between the Prince 2 Processes and the Prince 2 Components.
40