Fundamental Principles of PRINCE2 - Report Example

Portfolio: Project Management Student’s Name University Course Professor Date Table of Contents Table of Contents 2 1.0 PRINCE2 project management 3 1.1 Processes 3 1.1.1 Starting-up a project 3 1.1.2 Initiating a project 3 1.1.3 Directing a Project 4 1.1.4 Controlling a Stage 4 1.1.5 Managing product Delivery 4 1.1.6 Managing Stage Boundaries 4 1.1.7 Closing a project 4 1.2 Components 5 1.2.1 The Business Case 5 1.1.2 Organization 5 1.2.3 Plans 5 1.1.4 Controls 6 1.1.5 Management of Risk 6 1.1.6 Quality in project environment 6 1.2.7 Configuration Management 6 1.2.8 Change Control 6 2.0 PMBOK Knowledge 7 2.1 Integration management 7 2.2 Scope Management 7 2.3 Time Management 7 2.4 Cost Management 8 2.5 Quality Management 8 3.0 Engineering Project Management 8 3.1 Case: Quantum Bank’s Web Site 8 3.1.1 Business Case 9 3.1.2 Human Resources Management 9 3.2.3 Communication Management 10 3.1.4 Quality Management 10 3.1.5 Change Management 11 3.1.6 Managing expectations 11 References 12 1.0 PRINCE2 project management PRINCE2 project management method offers a framework that cover a wide range of disciplines and activities involved in a project. It focuses on the business case as a foundation of all the project management processes, for description of rationale and justification for taking a project. As indicated in Bentley (2009), PRINCE2 is a process-based approach divided into two major components; the processes and components. These are highlighted in details below: 1.1 Processes There are six processes and each process serves certain objectives and fulfills some fundamental principles. PRINCE2 list them in a logical sequence as follows: 1.1.1 Starting-up a project The process begins with creation of a project management team and definition of project objectives. It further details how each solution will be provided and take the first overview of the Business Case and risks involved in a project. It closes with planning of project work and controls and getting management approval to facilitate the project to commence. 1.1.2 Initiating a project The process starts with expansion of the Business Case and re-assessment of the risks. The project team identifies how products will be controlled and set up the required controls for the project. It is also a phase when they prepare to get approval for a project. In turn, they plan how the right quality of each product will be produced and plan the project. 1.1.3 Directing a Project The process start once the teams agree on project objectives. The plan is approved to generate a contract for the project. Each stage of the project gets approved and decision made on any major problems. At the same time, the project manager keeps the senior management informed of the project. To the end, they confirm the correct closure of the project and confirm the organization that assumes the project. 1.1.4 Controlling a Stage The process involves a number of activities from authorization of work, capturing the progress information. At the same time, the team must capture and log issues and analyze the impact of issues, review progress, quality work, risk status and issues, take corrective action and confirm work completion. The PM then reports progress to Project Board and escalate problems to Project Board. 1.1.5 Managing product Delivery The process involves inclusion of all stakeholders to agree the work with the PM, planning the team’s work and supervision of the team’s work. It further requires reporting on quality and progress and getting approval for all the competed products. 1.1.6 Managing Stage Boundaries The process is carried continuously by completing the performance statistics for current stage. It involves planning the next stage through an extended plan and updating the project plan. The teams also checks if the Business Case or risks have changed to prepare a report for and presenting it to the Project Board. 1.1.7 Closing a project The process involves checking and confirming delivery of all products and getting approval from the customer. The PM document any later action that can be taken by the maintenance team and support groups and plan the time and the manner to assess the achievement of expected benefits and report on project’s performance. 1.2 Components PRINCE2 discusses in details the eight components that are used by the processes as discussed below: 1.2.1 The Business Case The Business Case describes the reasons for carrying out a project and justifies why the project is undertaken. It has to take into consideration the estimated costs of a project, expected risks and business benefits and savings. The Case covers the entire project scope and changes in business that will result from the project. The Business Case is the most important information for a project to drive decision-making and align progress to business objectives. The Business Case highlights the reasons, options, benefits, risks, cost and timescale and investment appraisal. 1.1.2 Organization PRINCE2 identifies the project management structure a comprising of customer/supplier environment. The customer specifies the desired outcome, pay for them and make use of the product at the end. The supplier provides the resources and skills to create the outcome. An effective organizational structure is crucial for project success. The organization offers a project the required direction, management, communication and control. 1.2.3 Plans It involves the identification of whether the targets are achievable, the resources required to achieve the targets in a certain timeframe and activities that ensure that quality is built into the products. It also notes the problems and risks associated with the process of achieving the targets. Planning helps to avoid ad hoc decisions, help team to think ahead and provide yardstick to measure the progress. It sets the requirements, allocate responsibilities, monitoring and control. 1.1.4 Controls Control impact on decision making in project management. Control ensures that a project produces the required products with defined quality. It impact on project to maintain a viable Business Case, to be carried on schedule and as per the set costs and resources plan. The management team can also monitor progress, compare achievement, review plans and options and detect problems through control. 1.1.5 Management of Risk Risk is a major factor in project management and need to be controlled and contained if a project is to be successful. Risk management focus on project’s exposure to risk through the use of reliable and up-to-date information about risks, decision-making processes and process in place to monitor risks. It also ensures the right balance of control to deal with all risks. 1.1.6 Quality in project environment Quality involves the identification the aspects of project’s products or service making them fit for a certain purpose and satisfying the stated needs. The project looks on actual needs and develops a quality system involving a structure, processes and procedures to implement quality management. Quality planning establishes the objectives and requirements for quality. 1.2.7 Configuration Management Configuration management promotes product control giving precise control over each product by specifying the product status, the owner and relationship with other products. 1.2.8 Change Control Changes to project specification can ruin a project. Careful control is required as change is highly likely. The changes must be defined according to its importance and cost before including them or not. 2.0 PMBOK Knowledge Knowledge areas comprise of a processes where each has unique inputs, techniques, tools and outputs. Together, the processes accomplish a specific project management functions to drive the project success (Ajmal, Helo & Kekäle 2010, 157). Some of the most important knowledge areas are considered below 2.1 Integration management Project is made up of separate parts which join together to a project. Integration management allows focusing on the larger tasks necessary for the project to work. It then aim to coordinate every part of the project from the start, planning, execution, monitoring work and verification of results and performing the tasks involved in closing the project (Anand, Ward & Tatikonda 2010, 308). Integration allows the project team to deliver a cohesive project as the initial products takes into consideration how they will fit to the end product. 2.2 Scope Management Project scope is very important and scope management involves the management of detail, requirements and processes. If any changes occur to the scope, then it is handled in a controlled, structured and procedural manner. The goal here is to have a defined need, set expectations, delivery of those expectations, managing changes, minimizing surprises and gain acceptance of products. Scope management ensures that the project team does not lose the sight of what is require and when and defines what is acceptable to include by its contribution to the end product. 2.3 Time Management A project combines resources, activities and schedule. Time management promotes effective sequencing of activities and estimation of duration and resources required for each activity. A schedule is necessary to allow occasionally reference and set each activity to fit in the timeline. Time management direct teams’ efforts and considers the budgets as well as the quality of the end product. 2.4 Cost Management The knowledge area involves cost estimation and budgeting. The project management controls the cost and makes changes to a budget where necessary. In most projects, project costs are always estimation. Cost management is a necessary factor in the project as accuracy of estimation can change as the project progresses. For instance, when initiating a project, it is hard to assess the estimate. However, at a later stage, it is easier as the scope and schedule get defined and detailed (Anand, Ward & Tatikonda 2010, 305). Cost is central to most other knowledge area; its increase may mean better quality or speedy delivery of products. 2.5 Quality Management Quality is a major factor considered and predetermines acceptability of the final project outcomes. Quality management plan is set early enough as it primarily impact on the scope, time, risks and cost of the outputs of processes. Quality management allows looking at specific results and ensuring that they conform to the stated standards and at the same time improve quality process. The end products must manifest a wide range of features for its current and future functionality. Quality management aid in identifying, creating and controlling the features and avoid delivering products in a haphazard manner. 3.0 Engineering Project Management 3.1 Case: Quantum Bank’s Web Site Quantum Bank, located in Southeastern States of United States set to start a project to improve the bank’s customer services in 1999 by integrating online services. The way the project was handled reflects a number of core aspects of a project management. Each will be considered depending on it contributed to the project’s success or failure. 3.1.1 Business Case According to Blomquist, Hällgren, Nilsson, & Söderholm (2010), a business case offers the reasons and justification for undertaking a project p.5. It must reflect the organizational standards and the nature of the project. Some require significant effort to develop and approval depending on their impact on the organization. The project in Quantum Bank focused on its Information System Department. The bank sought to enlarge its market segment by attracting and retaining customers from different states. A Web Site would allow the bank to launch online services like accessing account balances, opening an account, applying for loans, bill payment service, applying for credit cards and manage personal portfolios online. The bank would leverage an opportunity offered by communication technologies to promote its competitive advantages. 3.1.2 Human Resources Management A project is carried by a team or teams which respond to the planned roles and responsibilities. Project organization comprise of a structure and authority that ensure staff management. The role of human resource is taken by the PM who assigns roles to staffs or teams, asses their performance and overall manages the project team (Jonas 2010, 825). In Quantum Bank’s case, the project did not involve an external consultant as project staff were sourced internally. In turn, the project structure reflected a hierarchical structure with the Stacey Thomas; the Vice President of Information Systems at the top. Under the Vice President, the director of Information System defined the requirements of the Web Site, supervised the work and recommended changes. Bill Fence was selected to develop the Bank’s Web Site as he had technical knowledge in hardware and ability to program. Bill worked alone with frequent meetings with the Bank’s director. The director acted as the department’s customer as initially, he did most of design work and supervised Bill as he did most of programming work. However, the director and Bill communicated to identify the alternatives that would be incorporated as key features of a Web Site. The director often chooses the options identified by Bill though at the end, Bill was allowed to actively propose features to include in the site. 3.2.3 Communication Management As Jonas (2010) observes, communication in project focuses on keeping all the stakeholders informed throughout the entire project p. 822. Communication in project is always thorough and proactive and usually a mixture of written, verbal, formal and informal. The PM must distribute timely and accurate information to correct audience. Effective communication depends of created plans explaining the kind of information to communicate in a regular basis, the person to receive it and to keep everyone informed about the progress. It reports aspects that are outstanding, delayed and risk worrying about. Quantum Bank identified Andy Dover who had graduated with an MBA and Civil Engineering undergraduate degree with the role of communication. The reason for having him take the role was guided by the fact that, he was involved in training and senior operation analysis. His previous performance evaluations had indicated him as able to move back from a problem to understand the various issues that are interrelated. His role involved communicating with the bank team who would assume use of the products. He was to keep the executive management abreast of project progress. 3.1.4 Quality Management Quality management ensures that outputs of various processes are effectively measured against prior acceptable measure (Blomquist, Hällgren, Nilsson, & Söderholm 2010, 7). Though there was no quality plan or its management plan at the beginning, the director kept on communicating and reviewing the progress of the Web Site. However, lack of a predetermined measures of the products impacted on the project scope, cost and time. Quantum Bank’s project did not have a set time frame, budget and scope. In turn, the director kept on discussing the requirements and additional products to be included until the end of the project. Though the project was carried out by an internal team which is flexible and dynamic when carrying out a project, a plan indicating the scope, time and cost is necessary to ensure that the project does not go beyond its acceptable schedule and cost (Kutsch & Hall 2010, 247). 3.1.5 Change Management A project can face significant barriers and risks and particularly if it impacts on every individual in the organization (Kutsch & Hall 2010, 252). Some of the difficulties experienced in Quantum project were managing change. Though the creation of the product would be reached, staffs were required to adjust and shift to a new way of services (moving from serving people over the counter to online functions and activities). The change required time to learn and some staffs would experience difficulties to adjust to new processes. Change management was actively managed by Andy by ensuring that the project was understood as an integral part of Information Systems department. In turn, all presentations and discussions focused on project areas to champion the project, keep staffs informed of the project progress and having regular consultation sessions, briefings and training. The project was completed on time and budget despite the changes in its scope as the project progressed. 3.1.6 Managing expectations The project developers manage customers’ expectations by communicating with staff and making it clear the exact functionality or performance of the new system (Blomquist, Hällgren, Nilsson, & Söderholm 2010, 9). In the process of delivering the products, the director appeared to expect too much from the final results of the project. In turn, he would have reacted negatively if the solution provided were not what he expected. However, Bill handled the issue by proposing the functionalities that were applicable. Several suggestions that would extend the functionalities were tabled to allow considerations once the site was officially launched. References Ajmal, M, Helo, P, & Kekäle, T, 2010, ‘Critical factors for knowledge management in project business’, Journal of Knowledge Management, 141, 156-168. Anand, G, Ward, P T, & Tatikonda, M V 2010, ‘Role of explicit and tacit knowledge in Six Sigma projects: An empirical examination of differential project successes, Journal of Operations Management, 284, 303-315. Bentley, C 2009, ‘Prince2: a practical handbook’, Routledge. Blomquist, T, Hällgren, M, Nilsson, A, & Söderholm, A, 2010, ‘Project‐as‐practice: In search of project management research that matters’, Project Management Journal, 411, 5-16. Jonas, D 2010, ‘Empowering project portfolio managers: How management involvement impacts project portfolio management performance’, International Journal of Project Management, 288, 818-831. Kutsch, E, & Hall, M 2010, ‘Deliberate ignorance in project risk management’, International Journal of Project Management, 283, 245-255. Read More