Retained Fire Fighters Union. Introduction to PRINCE2 Project Management

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1 Retained Fire Fighters Union Introduction to PRINCE2 Project Management

2 PRINCE2 PRINCE stands for: PRojects IN Controlled Environments and is a structured method which can be applied to any size or type of project. PRINCE2 has rapidly gained acceptance amongst the UK Public Sector as a key tool for the management of projects. So what can PRINCE2 offer as a project approach? Ans. A structured project approach such as PRINCE2 will provide personnel: A clearer understanding of Project Management A more explicit definition of projects A clearer view of project roles and responsibilities A means of achieving product output A means of improving the planning process A means of committing project resources

3 PRINCE2 The PRINCE2 method can be broken down into two clear elements: Management Components The PRINCE2 process. These elements are supported by a number of techniques including: Planning Quality Review Management of Change Configuration Management

4 PRINCE2 Within a PRINCE2 project there are number of Management Components comprising of: Organisation Controls Stages Management of Risk Quality in a Project Environment Configuration Management Change Control.

5 PRINCE2 The Processes of a PRINCE2 project can be represented as a number of clearly defined phases: Project Direction Starting a Project Initiating a Project Managing Stage Boundaries Closing a Project Planning Controlling a Stage Managing Product Delivery

6 PRINCE2 - Introduction The PRINCE2 method can be applied to the management of all type of projects. The PRINCE2 method will not however, take the place of common sense. No two projects are alike and therefore a degree of flexibility must be adopted in the application of the PRINCE2 method. Blindly following PRINCE2 (or any other method) will often lead to frustration confusion and possible project failure.

7 Starting a Project

8 PRINCE2 Processes Starting a Project Objectives of the Process The primary objective of this process is to provide a controlled beginning to a project. PRINCE2 seeks to achieve this through: Identification of clear project objectives. Creation of a suitable project management team. Identification of a realistic approach to the work to be done. Planning for the Initiation Stage.

9 PRINCE2 Processes Starting a Project Instigation of a Project The trigger for the Starting a Project Process is the receipt of a Project Mandate. The term Project Mandate is used to describe any request to undertake a project and as such can be received in a number of forms including: Formal written Project Request Informal written Project Request ( , Fax etc.). Verbal Request.

10 PRINCE2 Processes Starting a Project Key outputs of Starting a Project include: Creation of Project Brief Document that can inform interested parties of the existence of the project and its potential impact Creation of Project Board the Project Board are members of the organisation that have overall responsibility for the success of the project and can include: The project manager Project Sponsor End user of project output Membership of this group is flexible and should reflect the complexity of the Project as well as its potential impact upon the organisation and its stakeholders Creation of a Risk Log this enables the project manager to begin to identify and therefore plan for any potential risks to the project

11 PRINCE2 Processes Starting a Project At this stage of the project it is important to have a clear idea of what the Project is hoping to achieve in terms of its output(s). To do this a significant amount of information is needed as this will be used to identify resources needed, time requirements, lines of communication as well as the financial impact that that project may have on the organisation. Information gathered at this stage will be used to inform the project manager of the potential risks involved in undertaking the project as well as information needed to get the project off to a smooth start.

12 PRINCE2 Processes Starting a Project Structure of the Project Brief Information Gathering Define the Project Approach Define Acceptance Criteria Define Quality Criteria Define Project Constraints Define Project Objectives Define Project Scope Define Review Activities Define Reporting Activities Outputs derived from the Project Brief Risk Log Planning & Analysis Planning Initiation Stage Planning Quality Project Planning Preliminary Risk Assessment Refining Business Case Project Initiation Document

13 PRINCE2 Processes Starting a Project Appointment of the Project Board The Project Board has the overall authority for the project and is responsible for the initiation, direction, review and eventual closure of the project. To support the appointment of personnel to a Project Board a useful exercise is to identify: Who is Responsible to whom and for what. Who is Accountable to whom and for what. Who must be informed of project developments. Who must be consulted as part of the decision making process. Who must provide support to the Project.

14 PRINCE2 Processes Starting a Project Organisation or Programme Management The Project Board Senior User Executive Senior Supplier Project Assurance Project Manager Project Support Team Leader Team Leader Team Leader Project Resources & Teams

15 PRINCE2 Processes Initiating a Project The purpose of Initiating a Project is to provide a common understanding for all those involved with the project including: The reasons for doing the project The key products to be delivered How and when the products will be delivered The scope of what is to be done Any constraints that apply to the project Who is to be involved in the decision making process How the required quality criteria will be achieved What risks will/may be faced How the project is to be controlled.

16 PRINCE2 Processes Initiating a Project Key outputs of Initiating a Project: Project Initiation Document. Quality Log. Issues Log. Project Files.

17 PRINCE2 Processes Initiating a Project The Project Initiation Document (PID) The Project Initiation Document (PID) represents the major management product created in this phase. This document must contain sufficient information to allow the Project Board to identify: Whether there is a justifiable reason to proceed with the project What the project is aiming to provide How the project will achieve its aims Who will undertake the work Where the project will be undertaken When the project will start and finish. The Project Initiation Document (PID) forms the baseline for decisionmaking during the project s lifetime and represents the standard against which the success of the project will be measured.

18 PRINCE2 Processes Initiating a Project Supplementary documents produced during the Initiation of a Project are the: Issues Log Quality Log. These documents should be updated during the lifetime of the project as a way of capturing relevant information and identifying actions to be undertaken by project personnel. As part of the Project Initiation process there is a need to create a central repository to hold all project documentation. This is achieved through the creation of project files. Project Files. By setting up dedicated project files it will be possible to store and retrieve all information relevant to the management of the project.

19 Directing a Project

20 PRINCE2 Processes Directing a Project This process is aimed at the Senior Management team responsible for the project usually represented by the Project Board. Within a PRINCE2 project these decision makers have five main responsibilities: Authorising the preparation of a project plan and business case for the project Approving the project go-ahead Checking that the project remains justifiable at key points in the project life cycle Monitoring progress of the project and giving advice as required Ensuring that the project comes to a controlled close.

21 PRINCE2 Processes Directing a Project It is the responsibility of the Project Manager to keep the Project Board informed of the progress of the project through the regular submission of Highlight Reports which give necessary and timely information regarding the progress of the project. It is often necessary as part of this regular communication to submit Exception Reports. These document highlight an issues that have arisen during each stage of the project and the actions necessary to ensure continuation of the project The Project Board are responsible for informing the Project Manager of any risks and issues from the wider environment that may affect the project activities and hence outcomes.

22 Controlling a Stage

23 PRINCE2 Processes Controlling a Stage This is the process by which the Project Manager monitors and controls the activities of the project and can be thought of as the day to day management of the project. This process requires the controlled production of agreed products: To stated quality standards Within agreed cost, effort & time To achieve the defined benefits of the project.

24 PRINCE2 Processes Controlling a Stage The control of a stage will consist of a cycle of: Authorising work to be done Monitoring the progress of work ongoing Identifying changes Reviewing the project situation and triggering new work authorisations Reporting activities Taking any necessary corrective action. In practice these processes should be tailored in respect of the size and complexity of the project. There may be no need to hold formal meetings to discuss actions, although the Project Board must be kept aware of project progress and be consulted in the event of changes outside of agreed tolerance levels.

25 PRINCE2 Processes Controlling a Stage A Progress Assessment achieved by: Collecting all progress information for work currently ongoing Collecting feedback on quality checking activities Estimating the time and effort required to complete any unfinished work Estimating the availability of resources Publishing accomplishments Identifying any points that need attention.

26 PRINCE2 Processes Controlling a Stage Project Issues The capture of Project Issues is best achieved by the upkeep of a Project Issues Log. Project Issues apart from general problems and questions can result in: A Request for Change, resulting in a change of specification or Acceptance Criteria of the project An Off Specification, covering errors or omissions found in work already conducted or planned for the future. The Project Manager is responsible for managing the actions taken once an issue has been identified, although a project support role may be nominated to act as the central focus for receiving and documenting Project Issues.

27 PRINCE2 Processes Controlling a Stage Reviewing Stage Status The objective of this process is to check that the current stage is kept within the tolerances set by the Project Board This is achieved by reviewing: Progress against the Stage Plan Resource allocation and availability Project activities against tolerance levels Updating Lessons Learned Escalating those issues which must be considered by the Project Board. The Project Manager is also responsible for: Checking the validity of the Business Case Reviewing the Risk Log.

28 PRINCE2 Processes Controlling a Stage Reporting Highlights The production of Highlight Reports is the recommended process for communicating the status of a Stage to the Project Board. Highlight Reports should summarise the relevant information on which the Project Board will make decisions. The Project Manger is responsible for the reporting of highlights to the Project Board at a mutually agreed frequency.

29 PRINCE2 Processes Controlling a Stage Escalating Project Issues In the event that any action required to correct a Project Issue falls outside of agreed tolerance margins, the proposed actions must be escalated to the Project Board for consideration and/or approval. Management of Work Packages A work package as the name suggests is a collection of tasks that once Completed make a contribution to the overall progress of the project. The identification of discrete work packages can help the project manager To break the overall workload of the project down into manageable pieces. Once a Work Package is completed it must be checked by the Project Manager to confirm that it conforms to the agreed product description, specification, standards and constraints.

30 Managing Product Delivery

31 PRINCE2 Processes Managing Product Delivery This is the part of the process that deals specifically with the creation of the product(s) of the project. The objectives of the process are to allow the Team Leader to manage day to day operations and ensure that the planned products are created and delivered by the project team. This can be achieved by: Making certain that work on products allocated to each team is authorised by the Project Manager Checking authorised Work Packages for completeness of information Creating team plans Checking progress against plans Ensuring completed products meet the desired quality criteria Ensuring approval for the completed product is provided by the Project Board.

32 PRINCE2 Processes Managing Product Delivery Accepting a Work Package Where work is delegated there must be a clear understanding between the Project Manager and the project team of all the work requirements. This can be achieved by the Team Leader (in consultation with the Project Manager) through the following activities: Defining exactly of what is required of each work package Planning the work necessary to complete the package Perform a risk analysis of the activity(ies) to be undertaken Confirm available resources Agree the quality criteria to which the work package must conform Confirm how and to whom the Work Package must be handed over.

33 PRINCE2 Processes Managing Product Delivery Executing a Work Package ie getting the work done The necessary steps within this are: Allocate work to team members Capture and record the effort expended Determine achievement of each element within the Work Package Monitor and control the risks associated with the Work Package Evaluate with the creator(s) the amount of effort still required Feedback progress and status reports to Project Managers Ensure quality checking procedures are carried out and products meet quality criteria Communicate any problems that may arise.

34 PRINCE2 Processes Managing Product Delivery Delivering a Work Package This process has three elements: Obtain sign-off by any required quality checkers for the product(s) developed Hand over the completed product(s) Advise the Project Manager of completion of the Work Package. The methods employed to achieve these should be defined as part of the Work Package Authorisation process and are the responsibility of the Team Leader.

35 PRINCE2 Processes Managing Stage Boundaries Through the effective management of Stage Boundaries the Project Manger is able to confirm for the Project Board which project outputs planned for the current stage have actually been deliverer. The main activities undertaken during this process include: Planning each stage to a level of detail that allows individual tasks to be identified, planned and undertaken. Updating the Project Plan to provide an overall view of project progress Updating the Business Case in response to any significant changes to the project s environment* Updating the Risk Log* Updating Lessons Learned Report Producing Exception Plans*. *These actions should be tailored to reflect the current status of each project stage and may therefore not always be necessary.

36 PRINCE2 Processes Closing a Project A project exists for a finite length of time and will, as products are created and stages completed, need to be closed in an orderly and controlled manner. The method of Closing a Project will need to be tailored to suit the needs of each individual project although there are a number of core activities that must be undertaken by the Project Manager. These activities include: Decommissioning the project Identifying follow-on actions Project Evaluation Review Production of an End Project Report Updating of the Lessons Learned Log.

37 PRINCE2 Processes Closing a Project Decommissioning the Project This process is directed towards ensuring that all issues have been dealt with or, if necessary, transferred to the list of follow on actions. The Project Manager is responsible for: Confirming that products of the project have been approved and handed over to the Customer All project information is completed and stored within the project filing system That a notification is sent to all interested parties and associated organisations that the project is closing.

38 PRINCE2 Processes Closing a Project Identifying Follow-on Actions The aims of this process are to: Establish actions required following the project Document any Follow-on Action recommendation Recommend a date and plan for any Post Project Review considered necessary. Project Evaluation Review The aims of this process are to: Assess the results of the project against what it was intended to achieve Examine the records of the completed project to assess the quality of its management Identify lessons to be learned from the project and applied on future projects.

39 PRINCE2 Processes Closing a Project Documentation produced as part of this process will include: End Project Report The Project manager is responsible for creation of this report which will detail the effectiveness of the project management process and and how well the project has performed against the Project Initiation Document (PID). Lessons Learned Report This report should be aimed at answering the question what should be done differently next time? and is part of the ongoing process of quality Improvement. It is important to identify who should receive the Lessons Learned Report as well as informing the Project Board of its location.

40 Plans and Planning

41 PRINCE2 Processes Plans and Planning Planning and re-planning are constant and key activities when managing any project. Plans created as part of the role of the Project Manager must address how the following are to be met during the lifetime of the project: Identified products Timescales Costs Quality. Within the PRINCE2 method the planning activities are aimed at creating plans for: The project as a whole Each stage within the project The project team s work within the project.

42 PRINCE2 Processes Plans and Planning The hierarchy of plans within the PRINCE2 method is as follows: Programme Plan Project Plan Stage Plan Team Plan Exception Plan The exception plan is Often referred to as a contingency plan and is usually invoked when the project gets into some form of difficulty ie experiences a risk of some nature.

43 PRINCE2 Processes Plans and Planning Project plans are usually constructed by listing the sequence of activities required to carry the project from start to completion, and developing an action plan to complete the activities. Sequencing is a necessary consideration for determining the project schedule and duration. All activities required to complete a project must be precisely defined and coordinated Some activities must be done sequentially, and some simultaneously Using a hierarchical planning system will allow these activities to be identified and sorted appropriately.

44 PRINCE2 Processes Plans and Planning Components of a Plan Products Pre-requisites Quality Requirements Assumptions Activities Resources Risks Revised Activities & Resources Control Points Time & Cost

45 PRINCE2 Processes Plans and Planning Steps involved in the Planning Process Step 1 - Identify and define products to be produced during the project. Step 2 - Determine the sequence in which products will be produced. Step 3 - Identify the activities needed for the creation of each product. Step 4 - Estimate resource requirements & elapsed times for each product. Step 5 - Schedule the activities & resource requirements. Step 6 - Create draft plan (include risks and contingencies). Step 7 - Review plan and create Plan Text. Step 8 - Finalise Plan and gain approval from appropriate authority.

46 PRINCE2 Processes Plans and Planning Steps in the creation of a Work Breakdown Structure Activities Identify and define products to be produced during the project. Identify the activities needed for the creation of each product. Outputs Creation of Network Diagrams. Determine the sequence in which products will be produced.

47 PRINCE2 Processes Plans and Planning Activity Network Diagrams enable a visual representation of what work is to be done and in what order Activity Network Diagrams also highlights any prerequisites that must be completed as part of product development

48 PRINCE2 Processes Plans and Planning The formation of a Work Breakdown Network Diagram represents the first activity in the creation of a project schedule. Schedules A schedule is the conversion of a project action plan into an operating timetable. It serves as the basis for monitoring and controlling project activity Taken together with the plan and budget, it is probably the major tool for the management of projects. In a project environment, the scheduling function is more important than it would be in an ongoing operation. Projects lack the continuity of day-to-day operations and often present much more complex problems of coordination.

49 PRINCE2 Processes Plans and Planning Estimating: Optimistic (a), Pessimistic (b), and most likely (m), which are expressions of the risk associated with the time required for each activity On the distribution graph m is the mode, a is the estimation of actual time so that the the actual time will be a or greater about 99 percent of time, and b is estimated such that about 99% of the time the activity will have a duration of b or less. a m TE b Expected Time (TE) is found by: TE=(a + 4m + b)/6 The method is based on BETA statistical distribution. TE is an estimate of the mean of the distribution, as a weighted average of a,b, and m with weight

50 PRINCE2 Processes Plans and Planning Project activity times and precedences Activity Optimistic time Most likely time Pessimistic time Expected time (TE) a b c d e f g h i j

51 PRINCE2 Processes Plans and Planning Scheduling often requires the creation of a Project Evaluation and Review Technique (PERT) Network and/or a Gantt (Timescale) plan. The information required to produce either of these project representations can be derived from the Product Activity Network. Example of a PERT Network Review the Strategy Plan Prepare Board Position Paper Appoint the Project Board Executive Appoint the Project Manager Design and Appoint Project Team Produce Project Brief Plan the Project Apporach Earliest Start Time Duration Earliest Finish Time Appoint the Project Board Executive Latest Start Time Total Float Latest Finish Time

52 PRINCE2 Processes Plans and Planning Example of a Gantt Plan ID Task Name 1 PROJECT LIFE CYCLE 2 CONCEPTUAL PHASE 3 PRELIMINARY PROJECT PLAN 4 Define Scope & Objectives 5 Document Assumptions & Dependencies 6 Define Project Organisation 7 Define Project Execution Approach 8 Estimate Resource Requirements 9 Develop Phase Schedule 10 Define Project accounting Procedures 11 Prepare Risk Assessment 12 PROJECT CONCEPT 13 Define Project Structure 14 Prepare Outline of the Problem 15 Develop Potential Solutions Description 16 Define Development Alternatives 17 Prepare Plan & IT Cost 18 Write Management Summary 19 Prepare PCR & Issues Register 20 Conduct PCR 2 04 Mar '02 11 Mar '02 18 Mar '02 25 Mar '02 S S M T W T F S S M T W T F S S M T W T F S S M T W T F S Task Bar Summary Bar Linkage Line Milestone

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