PRINCE2 Foundation

Lesson 1Introduction to PRINCE2

Based on AXELOS PRINCE2 material. Reproduced under licence from AXELOS Limited. All rights reserved.

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.
Copyright 2014, Simplilearn, All rights reserved.
1 The Swirl logo is a trade mark of AXELOS Limited, used under the permission of AXELOS Limited. All rights reserved. Copyright 2014, Simplilearn, All rights reserved.
Objectives

After completing Explain the challenges faced by an organisation during project management
this lesson, you will
be able to: Define a project

Explain the need for project management methodology

List the six variables of project

Explain the structure and benefits of PRINCE2

2 Copyright 2014, Simplilearn, All rights reserved.

Organizational Challenges

The challenges faced by organizations are:

Managing current business operations

Transforming business operations to sustain in the

changing business circumstances

Balancing between Business As Usual (BAU) and

business change. A business change is introduced
by means of projects

3 Copyright 2014, Simplilearn, All rights reserved.

Definition of Project

A project is a temporary organization that is created for the purpose of delivering one or more
business products according to an agreed Business Case.[1]
Characteristics of project are as follows:

Change Project introduces change in an organisation.

Each project has definite start date and an intended end date which makes all projects temporary in
Temporary
nature.

Unique Each project is unique in nature.

The resources from various units with multiple skillsets are involved in the project. This makes all the
Cross-functional
projects cross-functional.

Uncertainty Each project has its own share of risks. Hence, there is an uncertainty in each project.

4 Copyright 2014, Simplilearn, All rights reserved.

Need for Project Management Methodology

Project management is the planning, delegating, monitoring and control of all aspects of the project,
and the motivation of those involved, to achieve the project objectives within the expected
performance targets for time, cost, quality, scope, benefits and risks.[2]

The needs of a project management methodology are:

To keep control over the specialist work

To manage the risks effectively

Figure 1.1. PRINCE2 Manual. Project Management. Copyright

AXELOS Limited 2013. Material is reproduced under licence from
AXELOS. All rights reserved.
5 Copyright 2014, Simplilearn, All rights reserved.
Introduction to PRINCE2

PRINCE2 is a non-proprietary project management method.

It is a generic methodology that can be applied to any project in any industry or domain.

Any product specific development methodology can be integrated with management aspect of
PRINCE2.

PRINCE2 does not provide:

o specialist aspects such as industry specific activities.

o detailed techniques such as earned value analysis.

o leadership and motivational skills.

6 Copyright 2014, Simplilearn, All rights reserved.

Six Aspects of Project

As per PRINCE2, the Project Managers need to control the following six aspects or variables of a
project:

The project has to be affordable and, though initially there may be a particular budget, there will be
Cost
many factors which can lead to overspending and, perhaps, some opportunities to cut costs.

Timescales The next most-frequent question asked of a Project Manager, is the timescale of a project.

Finishing on time and within budget is not enough if the result of the project is not functional. In
Quality
PRINCE2 terms, the projects products must be fit for purpose.

If the scope is not known, then the various parties involved in a project may end up talking at cross-
Scope
purposes.

Risks All projects entail risks, however the amount of acceptable risk should be predefined.

The Project Manager has to have a clear understanding of the purpose of the project as an investment
Benefits
and make sure that what the project delivers is consistent with achieving the desired return.

7 Copyright 2014, Simplilearn, All rights reserved.

Structure of PRINCE2

The PRINCE2 is a project management methodology that includes four integrated elements of
principles, themes, processes and the project environment.

PROJECT ENVIRONMENT

Progress Business case

Organization
Change PRINCE2 PROCESSES
Quality
Risks Plans

PRINCE2 THEMES

PRINCE2 PRINCIPLES

Figure 1.2 PRINCE2 Manual. The structure of PRINCE2. Copyright AXELOS Limited 2013. Material is reproduced under
licence from AXELOS. All rights reserved.

8 Copyright 2014, Simplilearn, All rights reserved.

Benefits of PRINCE2

The various benefits are as follows:

Widely recognised across industries
Provides common vocabulary among the suppliers and customers
Includes best practices for managing projects
Independent of the industry, domain and technology
Can be integrated with specialist product development method
Clearly defined project roles and responsibilities
Provides project organisation with structure of accountability, delegation, authority and
communication
Ensures that project is viable, desirable and achievable
9 Copyright 2014, Simplilearn, All rights reserved.
 Quiz

10 Copyright 2014, Simplilearn, All rights reserved.

 QUIZ Which among the following is one of the six aspects of a project performance that we
1 wish to manage?

a. Performance
b. Reliability
c. Scope
d. Ease of use

11 Copyright 2014, Simplilearn, All rights reserved.

 QUIZ Which among the following is one of the six aspects of a project performance that we
1 wish to manage?

a. Performance
b. Reliability
c. Scope
d. Ease of use

Answer: c.
Explanation: Scope is an aspect of project performance that needs to be managed.

12 Copyright 2014, Simplilearn, All rights reserved.

 QUIZ
Which among the following is one of the four integrated elements within PRINCE2?
2

a. Quality
b. Role descriptions
c. Processes
d. Product descriptions

13 Copyright 2014, Simplilearn, All rights reserved.

 QUIZ
Which among the following is one of the four integrated elements within PRINCE2?
2

a. Quality
b. Role descriptions
c. Processes
d. Product descriptions

Answer: c.
Explanation: Processes is one of the four integrated elements within PRINCE2. The other
elements are themes, principles and the project environment.

14 Copyright 2014, Simplilearn, All rights reserved.

 QUIZ
Which statement does not state a characteristic of a project?
3

a. Involves high degree of risks than BAU

b. All the benefits are realised during project life cycle
c. Involves people of various units of organisation and of various skills
d. A temporary organisation

15 Copyright 2014, Simplilearn, All rights reserved.

 QUIZ
Which statement does not state a characteristic of a project?
3

a. Involves high degree of risks than BAU

b. All the benefits are realised during project life cycle
c. Involves people of various units of organisation and of various skills
d. A temporary organisation

Answer: b.
Explanation: All the benefits are not realised during project life cycle, they may also be
realised after the project is over. For example, a product marketing campaign project may
result into increased sales of the product even after the campaign is over.

16 Copyright 2014, Simplilearn, All rights reserved.

 QUIZ
Which of the following is considered to be outside the scope of the PRINCE2 project?
4

a. Timescale of the project

b. Scope of the project
c. Organization that is carrying out the project
d. Specialist aspects of a project

17 Copyright 2014, Simplilearn, All rights reserved.

 QUIZ
Which of the following is considered to be outside the scope of the PRINCE2 project?
4

a. Timescale of the project

b. Scope of the project
c. Organization that is carrying out the project
d. Specialist aspects of a project

Answer: d.
Explanation: PRINCE2 does not provide: specialist aspects such as industry specific
activities, detailed techniques such as earned value analysis and leadership and
motivational skills.

18 Copyright 2014, Simplilearn, All rights reserved.

 QUIZ Which of the following is not a feature that distinguishes a project from business as
5 usual?

a. Temporary
b. Cross-functional
c. Continuous production
d. Uncertainty

19 Copyright 2014, Simplilearn, All rights reserved.

 QUIZ Which of the following is not a feature that distinguishes a project from business as
5 usual?

a. Temporary
b. Cross-functional
c. Continuous production
d. Uncertainty

Answer: c.
Explanation: Continuous production is not a feature that distinguishes a project from
business as usual. The five characteristics of a project that distinguishes itself from business
as usual are: change, temporary, cross-functional, unique and uncertainty.

20 Copyright 2014, Simplilearn, All rights reserved.

Summary

Here is a quick Project is defined as a temporary organisation that is created for the
recap of what we
purpose of delivering one or more business products according to an agreed
have learnt in this
lesson: Business Case

As per PRINCE2, Cost, Timescales, Quality, Scope, Risks and Benefits are
the six aspects of any project that need to be controlled

PRINCE2 is a project management methodology that includes four

integrated elements of principles, themes, processes and the project
environment

21 Copyright 2014, Simplilearn, All rights reserved.

 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.
22 Copyright2014,
Copyright 2014, Simplilearn,
Simplilearn, All rights
All rights reserved.
reserved.
References

[1] Based on Managing Successful Projects with PRINCE2, by AXELOS. Introduction, What makes projects
different?
[2] Based on Managing Successful Projects with PRINCE2, by AXELOS. Introduction, Why have a project
management method?

23 Copyright 2014, Simplilearn, All rights reserved.