PRINCE2_LESSON_01.pdf

PRINCE2® Foundation Lesson 1—Introduction to PRINCE2®

Based on AXELOS PRINCE2® material. Reproduced under licence from AXELOS Limited. All rights reserved. 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.

1 The Swirl logo™ is a trade mark of AXELOS Limited, used under the permission of AXELOS Limited. All rights reserved.

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Objectives After completing this lesson, you will be able to:

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Explain the challenges faced by an organisation during project management

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Define a project

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Explain the need for project management methodology

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List the six variables of project

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Explain the structure and benefits of PRINCE2®

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Organizational Challenges The challenges faced by organizations are: ●

Managing current business operations

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Transforming business operations to sustain in the changing business circumstances

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Balancing between Business As Usual (BAU) and business change. A business change is introduced by means of projects

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Definition of Project A project is a temporary organization that is created for the purpose of delivering one or more business products according to an agreed Business Case.[1]

Characteristics of project are as follows: Change Temporary

Unique Cross-functional Uncertainty

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Project introduces change in an organisation. Each project has definite start date and an intended end date which makes all projects temporary in nature. Each project is unique in nature. The resources from various units with multiple skillsets are involved in the project. This makes all the projects cross-functional. Each project has its own share of risks. Hence, there is an uncertainty in each project.

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Need for Project Management Methodology Project management is the planning, delegating, monitoring and control of all aspects of the project, and the motivation of those involved, to achieve the project objectives within the expected

performance targets for time, cost, quality, scope, benefits and risks.[2]

The needs of a project management methodology are: ●

To keep control over the specialist work

●

To manage the risks effectively

Figure 1.1. PRINCE2® Manual. Project Management. Copyright © AXELOS Limited 2013. Material is reproduced under licence from AXELOS. All rights reserved.

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Introduction to PRINCE2® PRINCE2® is a non-proprietary project management method. ●

It is a generic methodology that can be applied to any project in any industry or domain.

●

Any product specific development methodology can be integrated with management aspect of PRINCE2®.

●

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PRINCE2® does not provide: o

specialist aspects such as industry specific activities.

o

detailed techniques such as earned value analysis.

o

leadership and motivational skills.

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Six Aspects of Project As per PRINCE2®, the Project Managers need to control the following six aspects or variables of a project: Cost

Timescales Quality

Scope Risks Benefits

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The project has to be affordable and, though initially there may be a particular budget, there will be many factors which can lead to overspending and, perhaps, some opportunities to cut costs. The next most-frequent question asked of a Project Manager, is the timescale of a project. Finishing on time and within budget is not enough if the result of the project is not functional. In PRINCE2® terms, the project’s products must be fit for purpose.

If the scope is not known, then the various parties involved in a project may end up talking at crosspurposes. All projects entail risks, however the amount of acceptable risk should be predefined. The Project Manager has to have a clear understanding of the purpose of the project as an investment and make sure that what the project delivers is consistent with achieving the desired return.

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Structure of PRINCE2® The PRINCE2® is a project management methodology that includes four integrated elements of principles, themes, processes and the project environment. PROJECT ENVIRONMENT Progress

Business case

Organization Change

PRINCE2 PROCESSES Quality Risks

Plans

PRINCE2 THEMES

PRINCE2 PRINCIPLES

Figure 1.2 PRINCE2® Manual. The structure of PRINCE2®. Copyright © AXELOS Limited 2013. Material is reproduced under licence from AXELOS. All rights reserved.

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Benefits of PRINCE2® The various benefits are as follows: ●

Widely recognised across industries

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Provides common vocabulary among the suppliers and customers

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Includes best practices for managing projects

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Independent of the industry, domain and technology

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Can be integrated with specialist product development method

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Clearly defined project roles and responsibilities

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Provides project organisation with structure of accountability, delegation, authority and communication

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Ensures that project is viable, desirable and achievable Copyright 2014, Simplilearn, All rights reserved.

Quiz

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QUIZ 1

Which among the following is one of the six aspects of a project performance that we wish to manage? a.

Performance

b. Reliability

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c.

Scope

d.

Ease of use

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QUIZ 1

Which among the following is one of the six aspects of a project performance that we wish to manage? a.

Performance

b. Reliability c.

Scope

d.

Ease of use

Answer: c. Explanation: Scope is an aspect of project performance that needs to be managed.

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QUIZ 2

Which among the following is one of the four integrated elements within PRINCE2®?

a.

Quality

b. Role descriptions

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c.

Processes

d.

Product descriptions

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QUIZ 2

Which among the following is one of the four integrated elements within PRINCE2®?

a.

Quality

b. Role descriptions c.

Processes

d.

Product descriptions

Answer: c. Explanation: Processes is one of the four integrated elements within PRINCE2®. The other elements are themes, principles and the project environment. 14

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QUIZ 3

Which statement does not state a characteristic of a project?

a.

Involves high degree of risks than BAU

b. All the benefits are realised during project life cycle

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c.

Involves people of various units of organisation and of various skills

d.

A temporary organisation

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QUIZ 3

Which statement does not state a characteristic of a project?

a.

Involves high degree of risks than BAU

b. All the benefits are realised during project life cycle c.

Involves people of various units of organisation and of various skills

d.

A temporary organisation

Answer: b. Explanation: All the benefits are not realised during project life cycle, they may also be realised after the project is over. For example, a product marketing campaign project may result into increased sales of the product even after the campaign is over. 16

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QUIZ 4

Which of the following is considered to be outside the scope of the PRINCE2® project?

a.

Timescale of the project

b. Scope of the project

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c.

Organization that is carrying out the project

d.

Specialist aspects of a project

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QUIZ 4

Which of the following is considered to be outside the scope of the PRINCE2® project?

a.

Timescale of the project

b. Scope of the project c.

Organization that is carrying out the project

d.

Specialist aspects of a project

Answer: d. Explanation: PRINCE2® does not provide: specialist aspects such as industry specific activities, detailed techniques such as earned value analysis and leadership and motivational skills. 18

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QUIZ 5

Which of the following is not a feature that distinguishes a project from business as usual? a.

Temporary

b. Cross-functional

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c.

Continuous production

d.

Uncertainty

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QUIZ 5

Which of the following is not a feature that distinguishes a project from business as usual? a.

Temporary

b. Cross-functional c.

Continuous production

d.

Uncertainty

Answer: c. Explanation: Continuous production is not a feature that distinguishes a project from business as usual. The five characteristics of a project that distinguishes itself from business as usual are: change, temporary, cross-functional, unique and uncertainty. 20

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

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Project is defined as a temporary organisation that is created for the purpose of delivering one or more business products according to an agreed Business Case

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As per PRINCE2®, Cost, Timescales, Quality, Scope, Risks and Benefits are the six aspects of any project that need to be controlled

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PRINCE2® is a project management methodology that includes four integrated elements of principles, themes, processes and the project environment

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Thank You

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. The Swirl logo™ is a trade mark of AXELOS Limited, used under the permission of AXELOS Limited. All rights reserved.

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Copyright2014, 2014, Simplilearn, All rights reserved. Copyright Simplilearn, All rights reserved.

References [1] Based on Managing Successful Projects with PRINCE2®, by AXELOS. Introduction, What makes projects

different? [2] Based on Managing Successful Projects with PRINCE2®, by AXELOS. Introduction, Why have a project

management method?

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