Basic terms and acronyms

Question 1

What is the great strength of Prince2? (5 points)

Answer 1

It is truly generic, regardless of

• scale of project
• type of project
• nature of organization
• culture
• geographic location

Question 2

How does Prince2 achieve being generic? (2)

Answer 2

1. It separates the management of the project from the specialist aspects of the project
2. it focuses on describing what needs to be done, rather than prescribing how to do it

Question 3

What are the 4 elements of Prince2 project management?

Answer 3

1. Principles
2. Themes
3. Processes
4. Project Environment

Question 4

What makes a project a Prince2 project? (4)

Answer 4

1. Applying all Prince2 principles
2. Meeting the minimum requirements set out in the Prince2 themes
3. Using processes that satisfy the purpose and objectives of Prince2 processes
4. Using recommended techniques (or equivalent ones)

Question 5

BAU

Answer 5

Business as usual

Question 6

How is a project different from business as usual? (5)

Answer 6

1. Change (e.g. introducing a new product)
2. Temporary
3. Cross-functional (i.e. different skills needed to implement)
4. Unique
5. Uncertainty (carry risks)

Question 7

What are the six aspects of performance of a Prince2 project?

Answer 7

1. Scope (defines what we’re doing)
2. Quality (defines standards to be delivered)
3. Risk (positive or negative)
4. Cost (i.e. budget)
5. Time (i.e. project duration)
6. Benefits (improvements to BAU due to project outcomes)

Question 8

Definition of a program

Answer 8

A group of related projects which deliver outcomes and benefits related to an organization’s strategy

Question 9

Definition of a portfolio

Answer 9

The totality of an organization’s investment of changes required to achieve its strategic objectives

Question 10

What are the 7 underlying principles of Prince2?

Answer 10

1. Continued business justification
2. Learn from experience
3. Defined roles and responsibilities
4. Manage by stages
5. Manage by exceptions
6. Focus on products
7. Tailor to suit projects

Question 11

What can be said about the Prince2 7 principles? (3)

Answer 11

• They apply to any project
• They are proven in practice
• They give practitioners added confidence and the ability to influence the way the project will be delivered

Question 12

7 Principles: What’s a Continued Business Case?

Answer 12

There needs to be a justifiable reason to start the project, that reason must be documented and updated and reviewed throughout the project (i.e. stay on track)

Question 13

7 Principles: What’s Learn from Experience?

Answer 13

Avoid problems by reviewing lessons from earlier similar projects and by recording during project implementation what’s going well or not, and learning throughout the project

Question 14

7 Principles: What’s Defined Roles and Responsibilities?

Answer 14

Everyone needs to know what is expected of them throughout the project

Question 15

What are the three primary project stakeholders?

Answer 15

1. Business sponsors (say yes to objectives and budget)
2. Users (who will benefit from project)
3. Suppliers (who provide resources to undertake project work)

Question 16

Whose interests need to be represented in the project management team structure?

Answer 16

Those of the three primary stakeholders (business sponsors, users and suppliers)

Question 17

7 Principles: What’s Manage by Stages?

Answer 17

Projects are broken down into management stages (at least two - initiation and delivery). The more complex, the more stages a project will have

Question 18

Definition: Management Stages

Answer 18

The section of a project the Project Manager is managing on behalf of the Project Board at any one time, at the end of which the Project Board will wish to review progress to date, the state of the project plan, the business case and risks, and the next stage, to decide whether to continue with the project

Question 19

What are the benefits of managing a project by stages? (5)

Answer 19

• Making sure the project is properly initiated before work starts
• Giving the Project Board the opportunity to assess the project’s viability and defined intervals
• Making sure key decisions are made before the work starts (e.g. awarding a contract)
• Clarifying the impact of external influences on the project before the go-ahead is given
• Facilitating the Management by Exception principle by delegating authority to the Project Manager on a stage by stage basis

Question 20

7 Principle: What’s Manage by Exception?

Answer 20

The authority to work within specified limits (“tolerances”) is delegated through the project team structure

Question 21

For what elements are tolerances set through the Manage by Exception Principle? (6)

Answer 21

• Cost (over-/underspend)
• Time
• Scope (variations in project outputs)
• Quality (e.g. variation in performance standards)
• Risk (how it contributes to the project’s overall risk)
• Benefits (over-/underdelivering on benefits of project)

Question 22

7 Principles: What’s Focus on Products?

Answer 22

Focus on the definition and delivery of products, and their quality requirements

Question 23

Definition: Product

Answer 23

An input or output, whether tangible or intangible, that can be described in advance, created and tested

Question 24

What are the two types of products of Prince2?

Answer 24

• Management products (documents required and created to manage the project)
• Specialist products (things that will be created by the project to satisfy business needs)

Question 25

What are the benefits of the Focus on Products Principle? (3)

Answer 25

- Ensure that the project only undertakes work that directly contributes to the delivery of a product - Help manage uncontrolled changes or unapproved changes to products - Reduce risks of user complaints and acceptance disputes by clearly establishing what will be delivered at the start of the project

Question 26

7 Principles: What's Tailor to Suit the Project?

Answer 26

Prince2 can be used on any project because it can be tailored to ensure that 1. the method and its use are appropriate to the size of the project 2. the project controls are appropriate to the project's complexity, importance, team capability and risk.

Question 27

What are the 7 Themes of Prince2?

Answer 27

1. Business case (why are we doing this project? 2. Organization (who is involved and what are their responsibilities?) 3. Quality (what are the product quality requirements and how will they be judged?) 4. Plans (what's the product, how will it be developed, when, and for how much?) 5. Risk (What might affect the project outcome?) 6. Change (what impact will an issue have on the project outcome, and how will it be dealt with?) 7. Progress (where are we now, where will we be, and should we carry on?)

Question 28

What are the 7 Processes of Prince2?

Answer 28

1. Starting up - SU (do we have a viable project?) 2. Initiating (initiation stage) 3. Controlling a stage - CS (allocate work, monitor and control progress) 4. Managing product delivery - MP (accept work, deliver it and hand it back) 5. Managing a stage boundary - SB (plan work of next management stage) 6. Closing a project - CP (handover of product) 7. Directing a Project - DP (Project Board making decisions, and providing advice and guidance)

Question 29

What can be tailored in a project, and who is in charge of doing it?

Answer 29

- Processes can be adapted by combining, adding or removing activities - Themes can be adapted by using techniques appropriate to the industry we're in - Roles can be combined and split as long as the lines of accountability are maintained and don't create a conflict of interest - Terminology can be changed All this is the Project Manager's responsibility. Team Managers may propose tailoring actions in their packages.

Question 30

PID

Answer 30

Project Initiation Document