PRINCE2_LESSON_10.pdf

PRINCE2® Foundation Lesson 10—Progress Theme

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

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●

Define Progress theme

●

Explain PRINCE2® approach to Progress theme

●

Define the roles and responsibilities in Progress theme

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Purpose of Progress Theme The purpose of the Progress theme is to establish mechanisms to monitor and compare actual achievements against those planned; provide a forecast for the project objectives and the project’s continued viability; and control any unacceptable deviations.[1] ●

Tolerances set the limits of acceptable variation from the baseline before escalation to higher levels of management.

●

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Supports principles of managing by stages and continued business justification.

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Progress Terms—Definition The key definitions associated with Progress are: Progress is the measure of the achievement of the objectives of a plan. It can be monitored at Work

Package, stage and project level.[2] Progress controls ensure that each higher level, management team can monitor the progress and compare it against the current baseline. It helps in reviewing plans for future work, initiating corrective actions and authorising future work.

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Progress Terms—Definition (contd.) The other key definitions associated with Progress are: An exception is a situation where it can be forecast that there will be a deviation beyond the agreed tolerance levels.[3]

Tolerances are the permissible deviation above and below a plan’s target for time and cost without escalating the deviation to the next level of management. There may also be tolerance levels for quality, scope, benefit and risk.[3] The allocation of tolerances follows the four levels of project organisation. They are: Corporate or

program management, Project Board, Project Manager and Team Manager.

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Six Tolerance Areas by Level The table below illustrates the first four areas of the six tolerance areas by level. Project level tolerances

Stage level tolerances

Work Package Level Tolerances

Product level tolerances

Time +/- amounts of time on target completion dates

Project Plan

Stage Plan

Work Package

NA

Cost +/- amounts of planned budget

Project Plan

Stage Plan

Work Package

NA

Scope Permitted variation of the scope of a project solution, e.g. MoSCoW prioritization of requirements (Must have, Should have, Could have, Won’t have for now).

Project Plan (note 1)

Stage Plan (note 1)

Work Package (note 1)

NA

Risk Limit on the aggregated value of threats (e.g. expected monetary value to remain less than 10% of the plan’s budget); and Limit on any individual threat (e.g. any threat to operational service)

Risk Management Strategy

Stage Plan (note 2)

Work Package (note 2)

NA

Tolerance areas

Text in box is from Managing Successful Projects with PRINCE2®. Copyright © AXELOS Limited 2013. Material is reproduced under licence from AXELOS. All rights reserved.

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Six Tolerance Areas by Level (contd.) The image illustrates the tolerances for Quality and Benefits. Project level tolerances

Stage level tolerances

Work Package Level Tolerances

Product level tolerances

Quality Defining quality targets in terms of ranges, e.g. a product that weighs 300g +/- 10g

Project Product Description

NA (note 3)

NA (note 3)

Product Description

Benefits Defining target benefits in terms of ranges, e.g. to achieve minimum cost savings of 5% per branch, with an average of 7% across all branches

Business Case

NA

NA

NA

Tolerance areas

Note 1 – the scope of a plan is defined by the set of products to be delivered. Scope tolerance (if used) should be in the form of a note on or reference to the product breakdown structure for the plan. Scope tolerance at the stage or Work Package level is of particular use if applying a time-bound iterative development method such as Agile. Note 2 – more specific stage level risk tolerances may be set by the Project Board when authorising a stage or by the Project Manager when commissioning Work Packages, especially from external suppliers.

Note 3 – quality tolerances are not summarily defined at the Stage or Work Package level but are defined as per Product Description within the scope of the plan. Text in box is from Managing Successful Projects with PRINCE2®. Copyright © AXELOS Limited 2013. Material is reproduced under licence from AXELOS. All rights reserved.

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PRINCE2® Approach to Progress PRINCE2® provides progress control through: ●

delegating authority from one level of management to the level below it;

●

dividing a project into management stages;

●

authorising one stage at a time;

●

time-driven progress reporting;

●

event-driven progress reporting and

●

raising exceptions.

The project’s control should be documented in the Project Initiation Documentation (PID).

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For composition of Project Initiation Documentation (PID) and Exception Report please refer PRINCE2® Manual Appendix A. Copyright 2014, Simplilearn, All rights reserved.

Delegating Authority The allocation of tolerances follows the four levels of project organisation.

Corporate or programme management Project Board Project Manager Team Manager

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Sits outside the project but sets the overall requirements and tolerance levels for the project.[4] Has overall control at a project level, as long as forecasts remain within project tolerance, and will allocate tolerances for each management stage to the Project Manager.[4]

Has day-to-day control for a management stage within the tolerance limits laid down by the Project Board.[4] Has control for a Work Package, but only within the Work Package tolerances agreed with the Project Manager.

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Delegating Authority (contd.) The image illustrates how different types of tolerances are set in the project and how progress reporting is done.

Figure 10.1 Delegating tolerance and reporting actual and forecast progress. Copyright © AXELOS Limited 2013. Material is reproduced under licence from AXELOS. All rights reserved.

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Delegating Authority (contd.) Project Board controls the following: Authorisations Progress updates Exceptions and changes

The Project Board uses the directing a project progress to authorise initiation, authorise the project, authorise each stage and finally, authorise project closure. Include Highlight Reports and End Stage Reports. Include Exception Reports and Issue Reports.

Project Manager controls the following: Authorisations Progress updates Exceptions and changes

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Project Manager’s authorisations occur during the process Controlling a Stage. The Project Manager will be responsible for agreeing and authorising Work Packages and Work Package tolerances. Include Checkpoint Reports produced by Team Managers or team members. Use of project registers and logs to review progress and identify issues and risks that may need to be resolved.

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Use of Management Stages for Control A management stage is a collection of activities and products whose delivery is managed as a unit. The main characteristics of management stages are: ●

Provide review and decision points.

●

Give the ability to ensure that key decisions are made prior to the detailed work.

●

The Project Board authorises one management stage of the project at a time. Towards the end of each stage, an End Stage Report and Stage Plan for next stage are created to request authorisation to commence the next management stage.

●

The End Stage Report, together with the Stage Plan for the next stage should contain all the information necessary to enable the Project Board to conduct an end stage assessment and make a decision of whether to proceed.

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Number of Stages The use of management stages in a PRINCE2® project is mandatory, but the number of stages is flexible and depends on the scale and risk of the project. ● Every PRINCE2® project consists of at least two management stages; the initiation stage (first stage) and one or more further delivery stages. ● An important criterion is how confident the Project Board and Project Manager are in proceeding.

Defining management stages is a process of balancing these parameters. ● Too many short management stages (increasing the project management overhead) versus a few lengthy ones (reducing the level of control). ● Milestones of the project. ● Planning horizon and the amount of risks present.

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Length of Stages Every PRINCE2® project consists of at least two management stages. Stages should be shorter when there is greater risk and complexity. They can be longer when risk is lower, usually in the middle of the project. Factors that will influence this decision include:

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●

The planning horizon at any point of time.

●

The technical stages within the project.

●

Alignment with programme activities.

●

The level of risk.

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Length of Stages (contd.) The image on the screen shows the relationship between management and technical stages.

Figure 10.3 Specialist work crossing management stage boundaries. Copyright © AXELOS Limited 2013. Material is reproduced under licence from AXELOS. All rights reserved.

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Technical Stages Technical stages are a method of grouping work by the set of techniques used or the products created and are a separate concept from the management stage. ●

Technical stages often overlap but management stages do not. Technical stages are typified by the user of a particular set of specialist skills. Management stages equate to commitment of

resources and authority to spend. ●

If a technical stage spans a management stage boundary, the extent to which the product(s) of the technical stage should be complete at the stage boundary and clear in the relevant Product

Description(s).

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Technical Stages (contd.) The PRINCE2® approach is to concentrate the management of the project on the management stages and not on technical stages. The reason is that the management stages form the basis of the planning and control and are defined by PRINCE2® processes. ●

Technical stages can be formed based on specialist work.

●

Some popular models include Systems Development Lifecycle, Spiral model, Agile model and Rapid Action Development model.

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Event-Driven and Time-Driven Controls PRINCE2® provides two types of progress controls throughout the life of a project, event-driven controls and time-driven controls. ●

Event-driven controls are implemented at the occurrence of specific events. For example: completion of PID, end of a stage, occurrence of an issue, etc.

●

Time-driven controls are implemented at pre-defined periodic intervals. For example: weekly Checkpoint Report, monthly Highlight Report, etc.

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For composition of Daily Log, Issue Register and Issue report please refer PRINCE2® Manual Appendix A. Copyright 2014, Simplilearn, All rights reserved.

Event-Driven and Time-Driven Controls (contd.) Management products that assist the Project Manager in establishing baselines for progress control are as follows:

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●

Project Plan

●

Stage Plan

●

Exception Plan

●

Work Package

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Event-Driven and Time-Driven Controls (contd.) The management products that assist the Project Manager in reviewing progress are as follows:

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●

Daily Log

●

Issue Register

●

Product Status Account

●

Quality Register

●

Risk Register

●

Lesson Report

●

Issue Report

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Capturing and Reporting Lessons One of the principles of a PRINCE2® project is that the project management team learns from experience. ● Lessons Log: Lessons are sought, recorded and actioned throughout a project. If a lesson identified during the current project involves taking action during the same project, they should be incorporated in the corresponding plans or Work Packages. ● Lessons Report: The purpose of the report is to provoke action so that the positive lessons from a project become embedded in the organisation’s way of working and the organisation is able to avoid the negative lessons on future projects. ● If a lesson is significant and has relevance for future projects, it should be included in the Lessons Report. The Lessons Report is created at any appropriate time during a project. ● As a minimum, however, a Lessons Report should be produced during the Closing of a Project process.

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For composition of Lessons Log and Lesson Report please refer PRINCE2® Manual Appendix A. Copyright 2014, Simplilearn, All rights reserved.

Reporting Progress The various reports that PRINCE2® recommends are as follows: Checkpoint Report ● ● ●

Produced by Team Manager Reviewed by Project Manager against the Work Package All the Checkpoint Reports of a stage are collected to review the status of a stage

Highlight Report ● ● ●

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Produced by Project Manager Reviewed by Project Board Frequency of reporting is defined by the Project Board and documented in Communication Management Strategy

For composition of Checkpoint Report, Highlight Report, End Stage Report and End Project Report please refer PRINCE2® Manual Appendix A. Copyright 2014, Simplilearn, All rights reserved.

Reporting Progress (contd.) The other reports recommended by PRINCE2® are as follows:

End Stage Report ● ●

Produced at the end of each management stage by Project Manager Reviewed by Project Board

End Project Report ● ● ●

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Produced by Project Manager during 'Closing a Project' process Used by Project Board to evaluate the project Helps Project Board to authorise project closure

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Raising Exceptions The output from reviewing progress is a decision whether the Work Package, Stage Plan or Project Plan remain or forecast to remain within agreed upon tolerances. Work Package-level exceptions ●

Team Managers raises an issue

●

Project Manager advices corrective

Stage-level exceptions ●

●

action ●

●

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Issue Report is produced by the Project Manager Exception Report is provided to the Project Board based on Issue Reports The Project Board may ask the Project Manager to prepare Exception Plan to replace the plan that was forecast to exceed the tolerance The Project Board's responsibility to assess the Exception Plan, review and approve it

Project-level exceptions ●

The Project Board should approach

corporate or programme management for a decision ●

The Project Manager generates Exception Plan as per the guidance

from Project Board

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Example of Raising Exceptions

A photographer from Photographs Ltd., a professional photographic company, has accepted the role of Team Manager after understanding the requirements of

the project. The Team Manager must arrange a meeting with the Site Manager to establish a schedule for the photographic sessions to minimise the impact on the factory’s production. However, the Site Manager has not responded to the

emails/calls from the photographer. This means the Team Manager will not be able to finish the work on schedule leading to an exception for the Work Package. This was raised as an issue to the Project Manager. The Project

Manager called up the Site Manager and asked to send the photographic schedule to the photographer in 2 days. 25

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Example of Raising Exceptions (contd.)

At the PRINCE2® Implementation Project (P2IP), City of Edinburgh Housing Services; after the 3-month long initiation stage, the Project Manager observed in the Issue Report to the City of Edinburgh Council Housing Department that the pilot was not progressing, as well as other high-profile issues were being given priority than on implementation of the project. This was forecasted to lead to an

exception at the stage level. On advice from the Project Board, the scope of the project changed quite considerably to include the whole of Housing Services.

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Roles and Responsibilities in Progress Theme The table depicts the responsibilities of Corporate or programme management, Executive, Senior User and Senior Supplier in Progress theme. Role

Responsibilities

Corporate or programme management

● ●

Provide project tolerances and document them in the project mandate. Make decisions on Exception Plans when project-level tolerances are forecast to be exceeded.

● ● ● ●

Provide stage tolerances. Ensure that progress towards the outcome remains consistent from the business perspective. Make decisions on Exception Plans when stage-level tolerances are forecast to be exceeded. Recommend future action on the project to corporate or programme management if the project tolerance is forecast to be exceeded.

Senior User

●

Ensure that progress towards the outcome remains consistent from the user perspective.

Senior Supplier

●

Ensure that progress towards the outcome remains consistent from the supplier perspective.

Executive

Text in box is from Managing Successful Projects with PRINCE2®. Copyright © AXELOS Limited 2013. Material is reproduced under licence from AXELOS. All rights reserved.

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Roles and Responsibilities in Progress Theme (contd.) The table depicts the responsibilities of Project Manager and Team Manager in Progress theme. Role

Project Manager

Team Manager

Responsibilities ● ● ● ● ●

Authorise Work Packages. Monitor progress against Stage Plans. Produce Highlight Reports, End Stage Reports, Lessons Reports and End Project Report. Produce Exception Reports for the Project Board when stage-level tolerances are forecast to be exceeded. Maintain the project's registers and logs.

● ● ● ●

Agree Work Packages with the Project Manager. Inform Project Support of completed quality activities. Produce Checkpoint Reports. Notify the Project Manager of any forecast deviation from Work Package tolerances.

Text in box is from Managing Successful Projects with PRINCE2®. Copyright © AXELOS Limited 2013. Material is reproduced under licence from AXELOS. All rights reserved.

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Roles and Responsibilities in Progress Theme (contd.) The table depicts the responsibilities of Project Assurance and Project Support in Progress theme. Role Project Assurance

Project Support

Responsibilities Verify the Business Case against external events and project progress. Verify changes to the Project Plan to see whether there is any impact on the needs of the business or the Business Case. ● Confirm stage and project progress against agreed tolerances. ● ●

● ● ● ● ●

Assist with the compilation of reports. Contribute specialist tool expertise (for example, planning and control tools). Number, record, store and distribute Issue Reports and Exception Reports. Assist the Project Manager in maintaining the Issue Register and Risk Register. Maintain the Quality Register on behalf of the Project Manager.

Text in box is from Managing Successful Projects with PRINCE2®. Copyright © AXELOS Limited 2013. Material is reproduced under licence from AXELOS. All rights reserved.

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Quiz

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QUIZ

Progress can be monitored at all the following levels except?

1

a.

Work Package

b. Project

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c.

Stage

d.

Exception

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QUIZ

Progress can be monitored at all the following levels except?

1

a.

Work Package

b. Project c.

Stage

d.

Exception

Answer: d. Explanation: Progress can be monitored at all the following levels except the exception level. 32

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QUIZ

__________ is a situation where it can be forecast that there will be deviation beyond

2

the agreed tolerance levels.

a.

Exception

b. Tolerance

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c.

Progress

d.

Time

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QUIZ

__________ is a situation where it can be forecast that there will be deviation beyond

2

the agreed tolerance levels.

a.

Exception

b. Tolerance c.

Progress

d.

Time

Answer: a. Explanation: Exception is a situation where it can be forecast that there will be deviation beyond the agreed tolerance levels. 34

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QUIZ

______________ is/are the permissible deviation above and below a plan’s target for

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time and cost without escalating the deviation to the next level of management.

a.

Exception

b. Progress

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c.

Tolerances

d.

Quality

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QUIZ

______________ is/are the permissible deviation above and below a plan’s target for

3

time and cost without escalating the deviation to the next level of management.

a.

Exception

b. Progress c.

Tolerances

d.

Quality

Answer: c. Explanation: Tolerances are the permissible deviation above and below a plan’s target for time and cost without escalating the deviation to the next level of management. 36

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QUIZ

The principles of management by exception uses _______ types of tolerances against

4

which a project can be controlled.

a.

five

b. four

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c.

seven

d.

six

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QUIZ

The principles of management by exception uses _______ types of tolerances against

4

which a project can be controlled.

a.

five

b. four c.

seven

d.

six

Answer: d. Explanation: The principles of management by exception uses six types of tolerances against which a project can be controlled. 38

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QUIZ

How many levels of management is used for progress control?

5

a.

Two

b. Three

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c.

Four

d.

Five

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QUIZ

How many levels of management is used for progress control?

5

a.

Two

b. Three c.

Four

d.

Five

Answer: c. Explanation: The four levels of management are corporate/programme management, Project Board, Project Manager and Team Manager. 40

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QUIZ

PRINCE2® provides following types of control throughout the life of a project? 1) Event-

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driven controls, 2) Time-driven controls and 3) Trigger-driven controls

a.

1 and 2 only

b. 1 and 3 only

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c.

2 and 3 only

d.

1, 2 and 3

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QUIZ

PRINCE2® provides following types of control throughout the life of a project? 1) Event-

6

driven controls, 2) Time-driven controls and 3) Trigger-driven controls

a.

1 and 2 only

b. 1 and 3 only c.

2 and 3 only

d.

1, 2 and 3

Answer: a. Explanation: PRINCE2® provides two types of progress control throughout the life of a project, i.e. event-driven controls and time-driven controls. 42

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QUIZ Technical stages often overlap but management stages do not.

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a.

True

b. False

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QUIZ Technical stages often overlap but management stages do not.

7

a.

True

b. False

Answer: a. Explanation: Technical stages often overlap but management stages do not. Technical stages are typified by the use of a particular set of specialist skills. Management stages equate to commitment of resources and authority to spend. 44

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QUIZ

The Team Manager produces which of the following report to provide the Project

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Manager with details of progress against the Work Package?

a.

Highlight Report

b. Checkpoint Report

45

c.

End Project Report

d.

End Stage Report

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QUIZ

The Team Manager produces which of the following report to provide the Project

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Manager with details of progress against the Work Package?

a.

Highlight Report

b. Checkpoint Report c.

End Project Report

d.

End Stage Report

Answer: b. Explanation: Checkpoint Report is prepared by the Team Manager to provide the Project Manager with details of progress against the Work Package. 46

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QUIZ

If a Work Package is forecast to exceed its tolerances, the Team Manager should inform

9

the Project Manager by raising an exception.

a.

True

b. False

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QUIZ

If a Work Package is forecast to exceed its tolerances, the Team Manager should inform

9

the Project Manager by raising an exception.

a.

True

b. False

Answer: b. Explanation: If a Work Package is forecast to exceed its tolerances, the Team Manager should inform the Project Manager by raising an issue. The Project Manager will advise of any corrective actions required. 48

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If the stage is forecast to exceed its tolerances, the Project Manager should produce an _______________ to capture and analyse the details of the deviation and then provide an _______________ for the Project Board.

QUIZ 10

a.

Exception Report, Issue Report

b. Issue Report, Exception Report

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c.

Issue Report, End Stage Report

d.

Exception Report, Exception Plan

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If the stage is forecast to exceed its tolerances, the Project Manager should produce an _______________ to capture and analyse the details of the deviation and then provide an _______________ for the Project Board.

QUIZ 10

a.

Exception Report, Issue Report

b. Issue Report, Exception Report c.

Issue Report, End Stage Report

d.

Exception Report, Exception Plan

Answer: b. Explanation: If the stage is forecast to exceed its tolerances, the Project Manager should produce an Issue Report to capture and analyse the details of the deviation and then provide an Exception Report for the Project Board. 50

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

●

The allocation of tolerances follows the four levels of project organisation. They are: Corporate or program management, Project Board, Project Manager and Team Manager

●

The project’s control should be documented in the Project Initiation Documentation (PID)

●

The use of management stages in a PRINCE2® project is mandatory, but the number of stages is flexible and depends on the scale and risk of the project

51

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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. Progress, Purpose. [2] Based on Managing Successful Projects with PRINCE2®, by AXELOS. Progress, What is progress?

[3] Based on Managing Successful Projects with PRINCE2®, by AXELOS. Progress, Exceptions and tolerances. [4] Based on Managing Successful Projects with PRINCE2®, by AXELOS. Progress, The PRINCE2 approach to

Progress.

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