The document outlines the PRINCE2 project methodology. It describes the seven PRINCE2 principles, seven processes, and eight themes that make up the methodology. It also provides details on the roles and responsibilities in PRINCE2, including the project board, project manager, team manager, and more. Additionally, it gives an example of a project business case document format in PRINCE2.

1. Project Methodology based on
PRINCE2
Yuko Soma

2. PRINCE2
C S
Organization Theme
6 Tolerance
/ Variables
8 Themes
7 Principles
7 Processes
Change Theme
Quality Theme
Risk Theme
I P S BS U M PD P C P
Business Case Theme Progress Theme
Plan Theme
QualityBenefits Risk Cost Time
Tailoring Theme
(SU) Starting up a Project, (IP) Initiating a Project, (DP) Directing a Project, (CS) Controlling a Stage,
(MP) Managing Product Delivery, (SB) Managing a Stage Boundary, (CP) Closing a Project
Continued Business
Justification
Learn from
Experience
Defied Roles and
Responsibilities
Manage by
Stages
Manage by
Exception
Focus on
Product
Tailoring
Scope

3. Project TimelineDeliveringManagementDirectionCorp
S U I P
D P
C P
M P
S B
Project
Mandate
Authorize
Project Closure
Authorize
Work Package
C S
Stage 1
C S
Stage 2
C S
Stage 3
S B
Execute
Work Package
Work Package
Complete
Work Package
・ Quality expectations
・ Capture Previous lessons.
・ “Project Brief” includes
Appoint Executive, PM,
PM Team
Business reason PPD
Outline Business Case
Project Approach
・ Exception Assessment
・ Highlight Report
・ Maintain Business Case
・ Closure recommend
・ Draft closure notification
・ Assess Business Case
・ End Project Report
・ Lesson Report
Initiation Post-ProjectFinal StageDelivery Stages
Stage
Plan
Exception
Plan
Team
Plan
Stage
Plan
Plan Theme
Progress Theme
・ Exception Report
・ Checkpoint Report
(SU) Starting up a Project, (IP) Initiating a Project, (DP) Directing a Project, (CS) Controlling a Stage,
(MP) Managing Product Delivery, (SB) Managing a Stage Boundary, (CP) Closing a Project
Project
Plan
・ Update
Business Case
Authorize
a Project
Authorize
a Stage
・ Confirm
the benefit
・ Review ConMS
Update then
replace
Escalation
・ Updated PID
・ PBS, mind map
・ Product Flow
Diagram
・ Full BC with
Planned Cost
(budget, Resource)
Benefit Review
Plan
Authorize
Initiation
Pre-Project
・ Create “PID”

4. Management Strategy
Organization Theme
Communication
Management
Strategy
Configuration
Management
Strategy
Quality
Management
Strategy
Risk
Management
Strategy
・ CMD includes means and frequency of communication internally
and externally, roles and responsibilities, report type (email,
printed doc etc.), Project Brief
・ PM creates this in IP stage and it’s reviewed in the SB stage.
・ PM will use ComMS documents template from corporate
Change Theme
Quality Theme
・ Use Risk Management Strategy documents from corporate
・ Access Proximity (Aug 3, 2015), Response Category (Avoid, Enhance, Reduce, Fallback, Transfer), Risk
Status (Active), Risk Category (Financial, Organization, or safety)
・ Impact ($) x Probability (50%) = 1000 $ x 0.5 = Expected Value 500
・ PM creates RMS
・ Identify -- > Access -- > Plan (How to respond) -- > Implement -- > Communicate
Risk Theme
・ “Issue Control” and “Change Control” procedure
・ PM will use ConMS documents template from corporate
・ Project Support updates “Quality Register” with actual to Work Package.
・ ConMS is needed to manage the creation, safekeeping and controlled change to the project’s
products.
・ PM submit then PB or change authority approves “Exception Report” with RFC or off-
specification, change budget.
・ Create “Project Description” in SU
・ Create “Quality Tolerance” and “Quality File” consists
of “Quality Register”, Quality review invitations, quality review results.
M P

5. Roles and Responsibility
Corporate/Programme Manager
・ Set corporate tolerances. Appoint Executive
Project Board
Customer Supplier
Senior User
・ Realize post-project benefits
・ Specify user requirements.
Executive
・ Create and verify Business Case
・ Approve BRP
・ Responsible for Business Case
・ Single point of accountability.
・ Appoint Project Manager
Project Manager
・ Manage the project on a day to day
basis.
Assess and update Business Case at
the CP
・ Assist Executive to create BC
・ Approve “Exception Plan”, then
report it to Project Board
Team Manager
・ Configuration Management
・ Admin support for Project
Manager
・ Issue “Change Request”.
・ Manage Team Member
・ Create ”Exception Plan”
・ Produce products consistent
with PD.
Project Assurance
・ Advises the PM
・ Monitors performance
Senior Supplier
・ Ensure that products will be
delivered as expected (Timeframe,
cost)
ProjectManagementTeam
BU S
Verifying the BC, Approve “Exception Plan” then replace “Stage Plan”, Escalate the
“Exception Report” to higher management, Accountable for project success or failure.
Team MemberTeam Member
B = Business, U = User, S = Supplier
Change Authority
・ Control change requests
and off-specifications.
・ Approve change budget
according to level

6. Business Case
BC includes 1. business reason, 2. business option (Do nothing, do minimum), 3. expected benefits. 4. expected dis-
benefits, 5. timescale, 6. cost (Project and maintenance), 7. ROI, 8. major risk
Category: Business Strategy Develop Competitive Water Product
A. Introduction Develop new high quality mineral water to increase market share to 80%
B. Overall Plan 1. Target Customer: Rich elderly consumers, Expensive Italian, French restaurants
2. Benefit: 10% sales increase, 2000 USD / year increase
3. Dis-benefit: Sales has to learn new things. Hire new people for this project.
3. Project Timescale : 6 Months
4. Target date: Oct 1, 2015
C. Business Impact 1. Tolerance: Cost: 10% Timescale : 20 business day delay
2. Market Share 20% increase by Dec. 31, 2015
3. Project Cost: 1000 USD
4. Maintenance Cost: 100 USD/ year
5. ROI : 2000 - (300+500+1000)/1100 = 0.18 for the first year.
2000 - (300+500)/100 = 1992 for the 2nd year.
6. Non Financial Aspect: High quality water increase customer loyalty.
D. Risk 1. Water quality degrades due to environmental change: Probability 30% x Impact 1000 USD =
300 USD
2. Import troubles at custom clearance: Probability 50 % x Impact 1000 USD = 500 USD
E. Business Option Do minimum
F. Recommendations 1. Develop another Business Case for not doing anything and for buying out a competitor to
save this project cost.
2. Adding this water’s photo to our New Year calendar advertising the product.

7. References
Bentley, Colin, PRINCE 2 for Beginners, New York: Routledge, 2015
Management Plaza http://mplaza.pm/
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