The abbreviation PRINCE stands for PRojects IN Controlled Environments and describes a method for effective project management for all types of project. It was developed by the Office of Government Commerce and launched by the name PRINCE2 in 1996. PRINCE2 is now a de facto project management standard and widely used by the UK government as well as in the private sector, both in the UK and internationally.
PRINCE2 is a process oriented approach, which can be adjusted to any type of project due to its flexibility and scalability. The approach and the needed basic knowledge are assigned to three categories: processes, components and techniques.
Processes ensure that start, end and advancement of the project are monitored and controlled. The processes embrace the activities from setting the project off on the right track, through controlling and managing the progress to the completion of the project. Each PRINCE2 project will have to regard these processes differently. The following processes are applied in PRINCE2: Starting Up a Project, Initiating a Project, Directing a Project, Controlling a Stage, Managing Product Delivery, Managing Stage Boundaries, Closing a Project and Planning.
The components are key aspects of project management that are used throughout the processes and include the Business Case, the Organisation, Plans, Controls, Management of Risks, Quality in a Project Environment, Configuration Management and Change Control.
PRINCE2 presents very few techniques and leaves the selection of the preferred one to the user, who chooses according the demands of the specific project. The techniques the user can choose from include Product-Based Planning, the Change Control technique and the Quality Review technique.
Table of Contents
1 Introduction
2 Processes
2.1 Starting Up a Project (SU)
2.2 Initiating a Project (IP)
2.3 Directing a Project (DP)
2.4 Managing Stage Boundaries (SB)
2.5 Controlling a Stage (CS)
2.6 Managing Product Delivery (MP)
2.7 Closing a Project (CP)
2.8 Planning (PL)
3 Components
3.1 Business Case
3.2 Organisation
3.3 Plans
3.4 Controls
3.5 Management of Risk
3.6 Quality in a Project Environment
3.7 Configuration Management
3.8 Change Control
4 Techniques
4.1 Product-Based Planning
4.2 Change Control
4.3 Quality Review
5 Conclusions
Objectives and Topics
The primary objective of this assignment is to provide a comprehensive overview of the PRINCE2 project management methodology, analyzing its structured approach to project execution and its overall impact on effective project management. The study examines how the method’s processes, components, and techniques provide a framework for controlled, repeatable, and scalable project management across various sectors.
- Theoretical foundation and definition of PRINCE2 as a process-oriented standard.
- Detailed breakdown of the eight core management processes within the PRINCE2 framework.
- Identification of critical project components, including Business Case and Organisation.
- Evaluation of PRINCE2 techniques such as Product-Based Planning and Quality Review.
- Analysis of the practical advantages and limitations of applying PRINCE2 in modern organizations.
Excerpt from the Book
3.1 Business Case
PRINCE2 is based on the assumption that a useful Business Case is pushing the project. If a Business Case was not developed, the project should not start. In PRINCE2, the Business Case is developed at the beginning of the project and maintained throughout its life, being reviewed by the Project Board at each key decision point, such as end stage assessments (OGC 2005a, p. 197). The project should be stopped if the feasibility of the Business Case disappears for any reason (OGC 2005a, p. 18).
Being the most important set of information for the project, the Business Case holds reasons and the justification for conducting the project. This information is based on approximate costs of the project, the risks and the expected corporate profits and savings. Therefore, the Business Case should contain information about (OGC 2005a, p. 198):
• Reasons for the project,
• Options, that have been preconceived to deliver the outcome,
• Expected benefits,
• Risks,
• Cost and timescale,
• Investment appraisal and
• Evaluation.
Summary of Chapters
1 Introduction: Provides an overview of the PRINCE2 methodology, its origins under the Office of Government Commerce (OGC), and its role as a global standard for effective project management.
2 Processes: Details the eight cyclical management processes, ranging from Starting Up a Project to Closing a Project, that define the monitored and controlled progression of work.
3 Components: Explores the essential structural pillars of PRINCE2, including risk management, organization, and the Business Case, which ensure project viability and governance.
4 Techniques: Discusses specific practical tools such as Product-Based Planning and Quality Review that users can apply to maintain quality and control.
5 Conclusions: Evaluates the overall effectiveness of PRINCE2, summarizing its key advantages like standardization and its drawbacks, including potential document-heavy overhead.
Keywords
PRINCE2, Project Management, Business Case, Organisation, Process Oriented, Project Board, Product-Based Planning, Quality Review, Management by Exception, Risk Management, Configuration Management, Change Control, Project Lifecycle, Standardisation, Methodology.
Frequently Asked Questions
What is the core focus of this assignment?
The work provides a detailed examination of PRINCE2 (PRojects IN Controlled Environments) as a de facto standard for project management, focusing on its structure, components, and impact on project success.
What are the primary areas covered in this document?
The paper covers the three foundational pillars of the methodology: the eight management processes, essential project components, and the specific techniques used for planning and quality assurance.
What is the main goal of the PRINCE2 methodology?
The goal is to provide a flexible and scalable framework for effective project management that ensures projects are well-governed, monitored, and focused on delivering quantifiable business products.
Which scientific methods are employed in this paper?
The author utilizes a descriptive and analytical review of established project management literature, focusing primarily on official OGC documentation and supplementary academic resources on PRINCE2.
What does the main body of the work address?
The main body systematically breaks down the life cycle of a project through the lens of PRINCE2, from initial authorization and initiation to final closure, while explaining the supporting components and techniques involved.
Which keywords best describe this study?
Key terms include PRINCE2, Project Management, Business Case, Management by Exception, Product-Based Planning, and Project Lifecycle.
How does PRINCE2 handle project control?
It utilizes a "Management by Exception" principle, where the Project Board only intervenes when a project deviates from predefined tolerance levels, allowing project managers to work with significant autonomy within agreed boundaries.
What is the importance of the Business Case in PRINCE2?
The Business Case is considered the vital justification for the project; it is established at the start and continuously reviewed, ensuring the project remains viable and beneficial to the organization throughout its execution.
- Quote paper
- Anja Böhm (Author), 2009, Application of PRINCE2® and the Impact on Project Management, Munich, GRIN Verlag, https://www.grin.com/document/134455
