Free PRINCE2 Ebook to download to your Mobile

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How to Manage a Prince2 Project. The information makes a great free PRINCE2 Resource and covers the following:

  • What is PRINCE2
  • What makes projects different
  • The key features of PRINCE2
  • Benefits of using PRINCE2
  • Themes in PRINCE2
  • PRINCE2 Plans
  • PRINCE2 approach to plans
  • Progress
  • Risk Management
  • PRINCE2 Approach to Risk management
  • Risk Management procedure
  • Quality
  • PRINCE2 approach to quality
  • Change
  • Configuration Management
  • PRINCE2 Processes
  • Starting Up a Project
  • Initiating a Project
  • Directing a Project
  • Closing a Project

PRINCE2 Tolerance

If you are a project manager, having a tolerance can make your life significantly easier. This means that you can go a little over or under and not have to constantly return to your project sponsor for any new approval on such things as budget, timescales and/or quality. This allows you a little leeway and can help you get on with more important aspects of the job.

Tolerances are just one important area of Project Management that are covered in PRINCE2 Training. There are two levels of PRINCE2 Qualification: The PRINCE2 Foundation certificate is necessary for involvement on projects in the PRINCE2 environment, and proves your knowledge of PRINCE2 theory and its application. Becoming certified as a PRINCE2 Practitioner allows you to manage PRINCE2 projects.

Tolerance in the PRINCE2 framework

Tolerance...

Positive Tolerances

Positive tolerances are the most common for of tolerances; these tolerances allow you to go a little over budget.

Negative Tolerances

You would think that if you came in way under budget or finished the project four months early then your sponsors would be happy? No, because that means you have held on to money that could have been placed elsewhere and the same with employees.

The Six Tolerances of PRINCE2:

Time, cost, scope, risk, quality and benefits

  • Time – Time tolerance is how much you can go over or under the dates of which you expect to complete the project.
  • Cost – These tolerances are normally set up in percentages, for example if you have a 10% tolerance level on £1,000,000 then you can spend up to £1,100,000 before you need to ask for more money.
  • Scope – Scope depends from project to project, you can’t do a percentage on scope. Scope needs to be well thought out and discussed with your sponsor before the project has begun, so if a certain situation arises, you can sort it out without having to get them involved.
  • Risk – Risk tolerance needs to be well documented list of potential upsets the project could encounter. With each risk there needs to be a set tolerance level.
  • Quality – Tolerances on quality are set targets that must be adhered to, to make a product that satisfies the sponsors wants and needs.
  • Benefits – There are very few, if any, instances where you would want to cap the amount of benefits, but there may be a lowest benefits tolerance level.

PRojects IN a Controlled Environment (PRINCE2) vs Project Management Body Of Knowledge (PMBOK)

PRINCE2-vs-PMBOKPapers are frequently explaining the distinction between PRINCE2 and PMBOK, and they are likely to be technical.

To start off with, there is significant confusion in the workplace to do with the differences in the two approaches.

They do not compete against each other as much as you might be led to believe. When you compare them in more detail you discover that in fact PRINCE2 and PMBOK take on two very dissimilar ways of managing a project, and they actually harmonise each other if used correctly.

Because of this, if you already have been trained in PRINCE2, it is advisable that you undertake a course in PMBOK training and vice versa, as they can both go together very nicely.

PMBOK is, basically, something that tells you information on what a project manager needs to be aware of, but PRINCE2 tells you how to use this information.

PMBOK would tell you the important roles and responsibilities in a job and how to define them, but PRINCE2 shows us how we should create a Project Team and all the different job descriptions involved and which are most appropriate for the type of job.

PMBOK relies on the project manager to build up a model for a project team.

People who use PMBOK can sometimes become angry as other people may view the project manager incorrectly. This is very common in the building industry as the project manager has complete control over everything and everyone. Other business projects that rely mainly on IT solutions do not allow the project manager to be in financial control as this sits with senior managers. In this situation the project manager is not the right person to make complicated decisions. Whereas in PRINCE2 all of the major decisions are made by senior management and the project manage only has to deal with the day-to-day jobs.

A key criticism of PRINCE2 is that it overlooks the ‘soft skills’ required to look after a project, which in turn could possibly give more detail on other areas, this is what PMBOK give much better control with.

The recent popularity of PRINCE2 is probably down to the fact that is gives a model approach on how to manage a lot of difference projects. Every part of an organisation can benefit from this, but PMBOK is very broad and gives the project manager a lot of options as to how they want to deal with things. This can often lead to differences in management which can end up working against the company.

Much larger companies have a set way they want their managers to act and so prefer PRINCE2, another good thing about PRINCE2 is that you don’t need to know a lot about project management to be able to succeed, but PMBOK requires a deep knowledge.

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