PRINCE2_LESSON_07.pdf

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Based on AXELOS PRINCE2® material. Material is reproduced under licence from AXELOS Limited. All rights reserved. PRINCE2® is a [registered] trade mark of AXELOS Limited, used under permission of AXELOS Limited. All rights reserved. AXELOS® is a [registered] trade mark of AXELOS Limited, used under permission of AXELOS Limited. All rights reserved.

Lesson 7—Plans Theme

PRINCE2

®

Foundation

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● Define the Plans theme

● Explain the PRINCE2® approach to Plans theme ● Define the roles and responsibilities in Plans theme

Objectives

After completing this lesson, you will be able to:

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The purpose of the Plans theme is to facilitate communication and control by defining the means of delivering the products (the where and how, by whom, and estimating the when and how much).[1]

The plans are baselined to measure progress against it. The targets are:

● Time ● Cost ● Quality ● Scope ● Risk ● Benefits

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The key definitions associated with Plans are:

Plan is a document describing how, when and by whom a specific target or set of targets is to be achieved. It is the backbone of the management information system required for any project. A plan requires approval and commitments of the relevant levels of the project management team.

Planning is the process of making and maintaining a plan. It should be product-based as recommended by PRINCE2®.

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Levels of Plan

Project Plan is created during Initiating a Project process.

● Initiation stage plan is created during the Starting up a Project process.

● PRINCE2® recommends three levels of plan to reflect the needs of the different levels of management involved in the project, stage and team.

● Team plans are created during the Managing Product Delivery

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The Project Plan provides a statement of how and when a project’s time, cost, scope and quality performance targets are to be achieved, by showing the major products, activities and resources required for the project.[2]

It includes the following:

Project Plan

Costs Efforts Timelines

Quality milestones Baselines to monitor project progress

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The salient features of a Project Plan are the following: ● Project Plan is created by the Initiating a Project process. ● It lists the management stages.

● It is used by the Project Board as baseline to monitor project progress stage by stage. ● Project Plan is prepared in sync with the corporate or programme management plan.

Project Plan (contd.)

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The Stage Plan is similar to the Project Plan in content, but each element will be broken down to the level of detail required to be an adequate basis for day-to-day control by the Project Manager.[3]

The salient features of a Stage Plan are as follows: ● Stage Plan is required for each management stage

● It is based on the Project Plan and exists for a shorter duration than the Project Plan

● It depends on the performance of previous management stages and is created for the next management stage and at the near end of the current one

● Stage Plan is created by Managing Stage Boundary process except the Initiation Stage Plan

Stage Plan

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A Team Plan is produced by a Team Manager to facilitate the execution of one or more Work Packages.[4]

The different features of a Team Plan are as follows: ● Team Plan are optional

● They do not have a specified format ● They are produced by the Team Manager

● Team Plan is reviewed and approved by the Project Manager and Senior Supplier

Team Plan

For composition of Plan please refer PRINCE2® Manual Appendix A.

!

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Exception Plan is created to handle situations when the tolerances are forecasted to exceed or have already exceeded.

Project Plan, Stage Plan, Team Plans and Exception Plans are different types of Plan. The salient features of an Exception Plan are the following:

● Exception Plan details the actions to be taken to control the situation in a project ● It is produced by Project Manager

● Project Board approval necessary for the Exception Plan if it replaces the Stage Plan ● It is prepared to the same level of details as the plan it replaces

● Exception Plan is not produced for Work Packages

Exception Plan

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PRINCE2® Approach to Plans

The products required are identified first, and only then the activities, dependencies and resources required to deliver those products identified. This is known as product-based planning.

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The features of design the plan step are the following:

● Decisions need to be taken about how the plan can best be presented to the audience who will use the plan and how it will be used.

● Where the project is part of a programme, the programme may have developed a common approach to project planning. This may cover standards, for example, levels of planning, estimation methods, presentation layout and tools. These tools will be the starting point for designing any Project Plan.

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Define and Analyse the Products

PRINCE2®uses a technique known as product-based planning to identify, define and analyse the plans products.

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The activities required to create or change each planned product need to be identified to give a complete picture of the plan’s workload.

● The activities should include management and quality checking activities as well as the activities needed to develop the specialist products.

● A work breakdown structure is created, based on the product breakdown structure, to define the activities required.

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Any dependency between activities should also be identified. There are two types of dependencies: internal and external.

Identify Dependencies

As part of a project to build a desktop computer in under 150 Pounds, the RAM cards will be designed only after the Motherboard is designed (internal

dependency). However, the mouse, supplied by the manufacturer, can be procured before the design (external dependency) as they will fit into standard USB slots.

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Identify Dependencies—Example

The 787 Boeing Dreamliner project involved multiple external dependencies including wing manufacture (Mitsubishi Heavy Industries, Japan), cargo doors, access doors and crew escape door (Saab AB, Sweden), software development (HCL Enterprise, India) and floor beams (TAL Manufacturing Solutions Limited, India). Though the project was supposed to be over before August, 2007, the project was delayed more than 5 times. The reasons included fastener shortage and incomplete software.

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A decision about the time and resources required to carry out an activity to acceptable standards of performance must be made by:

● Identifying the type of resources required.

● Estimating the effort required for each activity by resource type.

Prepare the Estimates

3 point estimating (best-case, most-likely and worst-case) and Delphi technique (Questionnaire based).

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Prepare the Schedule

A plan can only show the ultimate feasibility of achieving its objectives when the activities are put together in a schedule that defines when each activity will be carried out. The steps to prepare the schedule are: Define activity sequence (Critical Path Method) Level resource usage Assess resource

availability Assign resources

Present the schedule Calculate total resource requirements and costs Define milestones Agree control points

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Prepare the Schedule (contd.)

A schedule defines when each activity will be carried out in a plan. A schedule is best presented in a graphical form.

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The salient features of Analyse the Risks are the following:

● Analyse the Risks is the planning activity that will usually run parallel with the other steps, as risks may be identified at any point in the creation or revision of a plan.

● Each resource and activity, and all the planning information, should be examined for its potential risk content.

● All identified risks should be entered in the Risk Register.

Analyse the Risks

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Document the Plan:

● A narrative must be added to explain the plan—its constraints, external dependencies,

assumptions made, any monitoring and control required, the risks identified and their required responses.

● It is necessary to keep plans as simple as it is appropriate.

Document the Plan

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The key benefits of product-based planning technique are:

● Comprehensive identification and documentation of the plan’s products and the interdependencies between them

● Reduces the risk of important scope aspects being neglected or overlooked ● Involves users in specifying the product requirements

● Increases user buy-in and reduces approval disputes ● Clarifies the scope boundary

● Identifies external products

● Helps in preparing the Work Packages for suppliers

Benefits of Product-based Planning Technique

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Product-based Planning—Scenario

A project is required to organise and run a conference for 80 to 100 delegates. The date and the topics of the conference have been provided. The conference has been organised to bring members of a particular profession up-to-date on recent

developments in professional procedures and standards. All delegates will be members of the profession, and a mailing list is available for use.

The project team is responsible for: ● Identifying the venue

● Finding out availability of the venue and facilities ● Checking the price

● The venue will be booked depending on the availability and price

● The project team must identify the suitable speakers, contact them and book them for the conference

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Product-based Planning—Scenario (contd.)

A detailed agenda and programme must be identified after finalising the speakers. Booking arrangements must be established, the programme must be agreed upon and the venue must be selected and booked before the direct mail is sent out. Once the venue is booked, a press release based on the programme must be prepared and issued. The attendance list will be updated with the responses once the press release has been issued and the direct mail distributed. Staff must be recruited to help on the day, based on the finalised attendance list.

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Product-based Planning—Scenario (contd.)

For the conference, it is decided that out packets will be distributed. A hand-out packet should reflect the selected topic or subject matter. One hundred such delegate hand-out packets will be required.

The packets must contain:

● A printed agenda covering the agreed upon program ● Copies of slides and notes used by the speakers

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Project Product Description is one of the management products. The various sections of Project Product Description are as follows:

● Purpose

● Composition ● Derivation

● Development skills required ● Customer’s quality expectations

● Acceptance criteria and project-level quality tolerances (in priority order) ● Acceptance method

● Acceptance responsibilities

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Purpose:

● The Purpose of conference project states that the conference is organised to bring members of a particular profession up-to-date on recent developments in professional procedures and

standards. Composition: ● Conference venue ● Attendees ● Speakers ● Publicity ● Delegate hand-outs ● Conference logistics

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Derivation:

● Selected Subject Matter

● Marketing

● Public Relations

Development skills required:

● Conference management

● Marketing

● Public relations

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Customer’s quality expectations: ● Priority 1:

o Professional in style, funded by attendees and address the needs of the range of members (from beginners to experienced professionals)

o The event should provide a forum for networking

o Repeat attendance at future conferences is generated from satisfied members

● Priority 2:

o _{The speakers should be chosen on the basis of their knowledge, experience and expertise.} They are not delivering a ‘sales pitch’ to the members

o The conference should be interactive in style

o The conference should be held at a central location, therefore minimising travel

Example of Product-based Planning—Project Product Description (contd.)

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Acceptance criteria and project-level quality tolerances (in priority order): ● The cost of the conference must be covered by the attendance fees ● Minimum 80 and maximum 100 delegates must attend the conference ● More than 50% of the presentations should be interactive

● The speakers and programme must be approved by the editorial board representing the interests of the members

● The attendees’ satisfaction survey should indicate that more than 75% will attend next year’s conference and/or recommend it to their colleagues

● The hotel venue should be within three miles of a main line train station

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Acceptance method:

As the conference cannot be rerun if it is proven to be unacceptable, the project board will grant: ● Preliminary acceptance—based on approval of the agreed programme by the editorial board and

independent assurance that the attendee numbers and conference costs re-forecast to be acceptable

● Final acceptance—based on the end project report providing evidence that the acceptance criteria were met

Acceptance responsibilities:

● The senior user and executive are responsible for confirming the acceptance

Example of Product-based Planning—Project Product Description (contd.)

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Example of Product-based Planning—Product Breakdown Structure

Project Product Description: Conference Project, contd.

In the hierarchy chart, the product’s various components are shown in a hierarchical manner.

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Example of Product-based Planning—Product Breakdown Structure (contd.)

Mind Map technique can be applied to prepare a product breakdown structure.

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Example of Product-based Planning—Product Flow Diagram

A product flow diagram must be created to identify and define the sequence in which the products of the plan will be developed and any dependencies between them.

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Roles and Responsibilities in Plans Theme

Role Responsibilities

Corporate or programme management

● Set project tolerances and document them in the project mandate.

● Approve exception plans when project-level tolerances are forecast to be exceeded.

● Provide the corporate or programme management planning standards.

Executive

● Approve the Project Plan.

● Define tolerances for each stage and approve Stage Plans.

● Approve exception plans when stage-level tolerances are forecast to be exceeded. ● Commit business resources to Stage Plans (i.e., finance).

Senior User ● Ensure that Project Plans and Stage Plans remain consistent from the user perspective.

● Commit user resources to Stage Plans.

The table depicts the responsibilities of Corporate or programme management, Executive and Senior User in Plans theme.

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Roles and Responsibilities in Plans Theme (contd.)

Senior Supplier ● Ensure that Project Plans and Stage Plans remain consistent from the supplier perspectives.

● Commit supplier resources to Stage Plans.

Project Manager

● Design the plans.

● Prepare the Project Plan and Stage Plans.

● Decide how management and technical stages are to be applied and design Stage Plans.

● Instruct corrective action when work package-level tolerances are forecast to be exceeded.

● Prepare an exception plan to implement corporate management, programme management or the project board’s decision in response to exception reports.

Team Manager ● Prepare Team Plans.

● Prepare schedules for each Work Package.

The table depicts the responsibilities of Senior Supplier, Project Manager and Team Manager in Plans theme.

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Roles and Responsibilities in Plans Theme (contd.)

Project Assurance

● Monitor changes to the Project Plan to see whether there is any impact on the needs of the business or the project Business Case.

● Monitor stage and project progress against agreed tolerances.

Project Support

● Assist with the compilation of Project Plans, Stage Plans and Team Plans.

● Contribute specialist expertise (for example: planning tools).

● Baseline, store and distribute Project Plans, Stage Plans and Team Plans.

The table depicts the responsibilities of Project Assurance and Project Support in Plans theme.

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a. b. c. d.

QUIZ _{Which of the following is used by the Project Board as a baseline against which project} progress can be monitored on a stage-by-stage basis?

Project Plan Exception Plan Team Plan Stage Plan 1

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a. b. c. d. QUIZ Answer: b.

Explanation: Project Plan is used by the Project Board as baseline to monitor project

progress stage-by-stage. Project Plan Exception Plan Team Plan Stage Plan

Which of the following is used by the Project Board as a baseline against which project progress can be monitored on a stage-by-stage basis?

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a. b. c. d. QUIZ

Exception plans are not produced for which of the following?

Project Plan

Initiation Stage Plan Work Packages Stage Plan 2

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a. b. c. d. QUIZ Answer: d.

Explanation: Exception plans are not produced for Work Packages.

Project Plan

Initiation Stage Plan Work Packages Stage Plan

Exception plans are not produced for which of the following? 2

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a. b. c. d. QUIZ

Who is responsible for preparing the schedules for each Work Packages?

Project Manager Project Assurance Quality Assurance Team Manager 3

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a. b. c. d. QUIZ Answer: a.

Explanation: Team Manager is responsible for preparing the schedules for each Work

Packages.

Project Manager Project Assurance Quality Assurance Team Manager

Who is responsible for preparing the schedules for each Work Packages? 3

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a. b. c. d. QUIZ

PRINCE2® recommends how many levels of plan?

Three Four Five Two 4

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Explanation: PRINCE2® recommends three levels of plan to reflect the needs of the

different levels of management. Three

Four Five Two

PRINCE2® recommends how many levels of plan? 4

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a. b. c. d. QUIZ

Who approves the Project Plan?

Project Manager

Corporate or programme management Project Assurance

Executive 5

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Explanation: Executive approves the Project Plan. Corporate or programme management

sets project tolerances and documents them in the project mandate. Project Manager

Corporate or programme management Project Assurance

Executive

Who approves the Project Plan? 5

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a. b. c. d. QUIZ

Which of the following is not a correct step of product based planning technique?

Create the product breakdown structure Write the Product Description

Create the Work Packages

Write the Project Product Description 6

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Explanation: Create the Work Packages is not part of the technique. The correct four steps for product

based planning technique are: Write the Project Product Description, Create the product breakdown structure, Write the Product Description and Create the product flow diagram.

Create the product breakdown structure Write the Product Description

Create the Work Packages

Write the Project Product Description

Which of the following is not a correct step of product based planning technique? 6

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a. b. c. d. QUIZ

What is the advantage of product-based planning technique?

Ensures the delivery of the product within agreed time and cost Removes the need of activity sequencing

Depicts how long the team would take to develop the products Reduces the risk of incorrectly scoping the project

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Explanation: The philosophy behind producing plans in PRINCE2® is that the products required are identified first,

and only then are the activities, dependencies and resources required to deliver those products identified. This is known as product-based planning and is used for the Project Plan, stage plan and optionally, the team plan.

Ensures the delivery of the product within agreed time and cost Removes the need of activity sequencing

Depicts how long the team would take to develop the products Reduces the risk of incorrectly scoping the project

What is the advantage of product-based planning technique? 7

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a. b.

QUIZ _{Team Plans are optional: their need and number will be determined by the size and} complexity of the project and the number of resources involved.

False True 8

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a. b. QUIZ

Answer: a.

Explanation: A Team Plan is produced by a Team Manager to facilitate the execution of one

or more Work Packages. Team Plans are optional. False

True

Team Plans are optional: their need and number will be determined by the size and complexity of the project and the number of resources involved.

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a. b. c. d.

QUIZ _{___________ is a plan prepared for the appropriate management level to show the} actions required to recover from the effect of a tolerance deviation.

Team Plan Project Plan Exception Plan Stage Plan 9

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Explanation: An Exception Plan is a plan prepared for the appropriate management level to

show the actions required to recover from the effect of a tolerance deviation. Team Plan

Project Plan Exception Plan Stage Plan

___________ is a plan prepared for the appropriate management level to show the actions required to recover from the effect of a tolerance deviation.

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a. b. c. d.

QUIZ _{In a(n) ________ Plan each element will be broken down to the level of detail required} to be an adequate basis for day-to-day control by the Project Manager.

Stage Team Exception Project 10

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Explanation: A Stage Plan is required for each management stage. The Stage Plan is similar

to the Project Plan in content, but each element will be broken down to the level of detail required to be an adequate basis for day-to-day control by the Project Manager.

Stage Team Exception Project

In a(n) ________ Plan each element will be broken down to the level of detail required to be an adequate basis for day-to-day control by the Project Manager.

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● The purpose of Plan theme is to facilitate communication and control by defining the means of delivering the products

● A Plan is a document describing how, when and by whom a specific target or set of targets is to be achieved

● Designing the plan is a pre-requisite of planning

● Hierarchy chart and mind map are the two formats of product breakdown structure

Summary

Here is a quick recap of what we have learnt in this lesson:

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Based on AXELOS PRINCE2® material. Material is reproduced under licence from AXELOS Limited. All rights reserved. PRINCE2® is a [registered] trade mark of AXELOS Limited, used under permission of AXELOS Limited. All rights reserved. AXELOS® is a [registered] trade mark of AXELOS Limited, used under permission of AXELOS Limited. All rights reserved.

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[1] Based on Managing Successful Projects with PRINCE2®, by AXELOS. Risk, Purpose.

[2] Based on Managing Successful Projects with PRINCE2®, by AXELOS. Plans, The Project Plan. [3] Based on Managing Successful Projects with PRINCE2®, by AXELOS. Plans, Stage Plans. [4] Based on Managing Successful Projects with PRINCE2®, by AXELOS. Plans, Team Plans.