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PRINCE2 Study Guide: 2017 Update, 2nd Edition

David Hinde

ISBN: 978-1-119-42085-9 May 2018 608 Pages



Everything you need to pass the PRINCE2 with flying colors

The PRINCE2 Study Guide, Second Edition, offers comprehensive preparation for the latest PRINCE2 exam. Covering 100 percent of the exam objectives, this guide provides invaluable guidance that will help you master both the material and its applications; indeed, a practice-centered approach helps you “learn by doing” to help you internalize PRINCE2 concepts on a deeper level. Although the exam is heavily focused on detailed business process, this guide’s accessible writing and real-world approach make learning fun. Each chapter poses a common project challenge, and walks you through the solution based on essential PRINCE2 principles. A year of FREE access to electronic study aids allows you to study anywhere, at any time, and expert instruction throughout breaks complex topics down into easily-digestible concepts.  

The PRINCE2 exam is challenging, but thorough preparation is your best defense. Conceptual knowledge is important, but it isn’t enough—knowledge is only useful if you can apply it. This book is designed as your personal PRINCE2 coach: 

  • Master 100 percent of the PRINCE2 exam objectives
  • Apply your knowledge to real-world workplace scenarios
  • Test your understanding with challenging review questions
  • Access sample questions, electronic flashcards, and other study aids
PRINCE2 is globally recognized as one of the premier project management credentials; while less expansive than the PMP, the PRINCE2 is more intense and tightly focused on detailed business processes. Companies around the world are in need of qualified project management professionals to optimize processes and boost organizational performance—and the PRINCE2 certification puts you on the map as a validated professional. If you’re ready to take on your next challenge, the PRINCE2 Study Guide, Second Edition, is your ultimate companion for complete preparation.

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Introduction xxv

Assessment Test l

Chapter 1: Overview of PRINCE2 1

Project Work 3

What Is a Project? 3

What Is Business as Usual? 5

What Is Project Management? 5

Measuring the Performance of a Project 7

Introducing PRINCE2 9

The Structure of PRINCE2 9

Other Parts of PRINCE2 12

What PRINCE2 Does Not Cover 16

Benefits of Using PRINCE2 16

PRINCE2 Principles 17

Continued Business Justification 17

Learn from Experience 18

Defined Roles and Responsibilities 18

Manage by Stages 19

Manage by Exception 19

Focus on Products 21

Tailor to Suit the Project 21

Tailoring PRINCE2 to Different Project Types and Environments 22

What Is Tailoring? 22

What Cannot Be Tailored? 22

Why Tailor PRINCE2? 23

What Can Be Tailored? 24

Simple Projects 25

Programme Environments 25

Commercial Customer and Supplier Environments 26

Agile Environments 26

An End-to-End Walk-Through of PRINCE2 28

Pre-Project Activities 30

Activities at the Beginning of the Project 33

Activities in the Middle of the Project 35

Activities at the End of the Project 38

Summary 40

Foundation Exam Essentials 41

Practitioner Exam Essentials 42

Review Questions 43

Foundation Exam Questions 43

Practitioner Exam Questions 45

Chapter 2 Starting a Project Successfully with PRINCE2 47

Beginning a PRINCE2 Project 49

The Starting Up a Project Process 50

Starting Up a Project Process Activities 52

Key Facts for Starting Up a Project 58

Tailoring the Starting Up a Project Process 59

The Directing a Project Process - Part I 60

Authorize Initiation 61

The Initiating a Project Process 62

Initiating a Project Activities 63

Key Facts for Initiating a Project 70

Tailoring the Initiating a Project Process 72

The Directing a Project Process - Part II 73

Authorize the Project 74

Authorize a Stage 74

Themes to Start a Project Successfully 74

Business Case Theme 75

Organization Theme 75

Quality Theme 76

Plans Theme 76

Risk Theme 77

Change Theme 77

Progress Theme 77

Using the PRINCE2 Principles to Start a Project

Successfully 78

Summary 78

Foundation Exam Essentials 79

Practitioner Exam Essentials 80

Review Questions 84

Foundation Exam Questions 84

Practitioner Exam Questions 86

Chapter 3 Organization Theme 89

Common Project Organizational Challenges 91

The Three Project Interests 92

The Business Interest 93

The User Interest 93

The Supplier Interest 94

Achieving Consensus Between the Project Interests 94

The Four Levels of Management 94

Corporate, Programme Management, or the Customer 95

Directing 96

Managing 97

Delivering 98

The Project Management Team 98

The Project Board 98

Change Authority 103

The Project Manager 104

Project Support 104

Team Manager 105

Other Stakeholders 106

Communication Management Approach 107

Contents 107

The Life of the Communication Management Approach 110

Other Management Products Used by the Organization Theme 110

The Project Brief’s Use in the Organization Theme 110

The Project Initiation Documentation’s Use in the Organization Theme 110

Organization Theme Responsibilities 111

Tailoring the Organization Theme 111

Minimum Requirements 111

Scaling the Organization Theme 112

Commercial Customer/Supplier Environment 113

Projects Within Programmes 115

Projects Within an Organizational Environment 118

Agile Environments 118

Linking the Organization Theme with the PRINCE2

Principles 121

Summary 121

Foundation Exam Essentials 122

Practitioner Exam Objectives 124

Review Questions 125

Foundation Exam Questions 125

Practitioner Exam Questions 127

Chapter 4 Business Case Theme 131

What Is the Business Case Theme? 132

Outputs, Outcomes, and Benefits 133

Business Cases Where Money Isn’t the Motivation 135

Using the Business Case Theme 135

Developing the Business Case 136

Maintaining the Business Case 137

Verifying the Business Case 137

Confirming the Benefits 138

The Business Case Management Product 139

The Purpose 139

The Contents of the Business Case 140

The Benefits Management Approach 144

Business Case Responsibilities 146

Corporate, Programme Management, or the Customer 146

Executive 146

Senior User 146

Project Manager 147

Other Roles 147

Tailoring the Business Case Theme 147

Minimum Requirements 147

Tailoring the Management Products 148

Regulatory Compliance 148

Projects Within Programmes 148

Commercial Customer and/or Supplier Environments 148

Agile Environments 149

Linking the Business Case Theme with the PRINCE2

Principles 150

Summary 150

Foundation Exam Essentials 151

Practitioner Exam Essentials 152

Review Questions 154

Foundation Exam Questions 154

Practitioner Exam Questions 156

Chapter 5 Plans Theme 159

Levels of Plans 161

The Project Plan 162

The Stage Plan 163

The Team Plans 164

The Exception Plan 164

The Plan Management Product 168

Plan Description 170

Plan Prerequisite 170

External Dependencies 171

Planning Assumptions 171

Delivery Approaches 171

Lessons Incorporated 171

Monitoring and Control 172

Budgets 172

Tolerances 173

Product Descriptions 173

Schedule 173

Structuring the Project into Management Stages 174

The PRINCE2 Approach to Plans 180

Designing a Plan 181

Defining and Analyzing the Products 182

Identifying Activities and Dependencies 182

Preparing Estimates 183

Preparing a Schedule 183

Analyzing Risks to a Plan 183

Documenting a Plan 183

Defining and Analyzing the Products 184

Writing the Project Product Description 184

Creating a Product Breakdown Structure 185

Writing Product Descriptions 188

Creating a Product Flow Diagram 188

Benefits of the Product-Based Planning Approach 189

Planning Responsibilities 190

Tailoring the Plans Theme 190

Minimum Requirements 190

Tailoring the Management Products 191

Projects Within Programmes 191

Commercial Customer/Supplier Environments 192

Agile Environments 192

Linking the Plans Theme with the PRINCE2 Principles 193

Summary 193

Foundation Exam Essentials 194

Practitioner Exam Essentials 195

Review Questions 197

Foundation Exam Questions 197

Practitioner Exam Questions 199

Chapter 6 Quality Theme 203

What Is Quality? 205

What Is Scope? 206

What Is Quality Management? 206

Quality Assurance and Project Assurance 207

Quality Planning 209

The Project Product Description 209

Product Descriptions 213

Quality Control 217

Using the Quality Register 218

Types of Quality Methods 221

Application of the Quality Theme in a Project 222

Step 1: Before the Project 223

Step 2: Initiation Stage 224

Step 3: Product-Based Planning 224

Step 4: Planning the Quality Checks 225

Step 5: Building, Checking, and Approving the Products 225

Step 6: Accepting the Products 225

The Quality Management Approach 226

Introduction 227

Quality Management Procedure 227

Tools and Techniques 228

Records 228

Reporting 228

Timing of Quality Management Activities 228

Roles and Responsibilities 229

The Quality Review Technique 229

Roles Involved with the Quality Theme 230

Tailoring the Quality Theme 231

Minimum Requirements 231

Commercial Customer and Supplier Environment 232

Aligning the Quality Approach with Organizational

or Programme Approaches 232

Agile Environments 232

Linking the Quality Theme with the Principles 233

Summary 234

Foundation Exam Essentials 235

Practitioner Exam Essentials 236

Review Questions 239

Foundation Exam Questions 239

Practitioner Exam Questions 241

Chapter 7 Risk Theme 245

Why Are Projects So Risky? 246

The PRINCE2 Approach to Risk 247

How Does PRINCE2 Use the Word Risk? 247

Planning How to Manage Risk on the Project 248

An Example of a Risk Management Approach 248

Using the Risk Management Approach 249

The Risk Management Procedure 255

Identify 257

Assess 259

Plan 261

Implement 264

Communicate 266

Roles Involved with the Risk Theme 267

Tailoring the Risk Theme 268

Minimum Requirements 268

Scaling the Risk Theme 269

Commercial Customer/Supplier Environment 269

Aligning the Risk Approach with Organizational or Programme Approaches 269

Adapting the Risk Approach to Different Delivery Approaches 270

Linking the Risk Theme with the Principles 271

Summary 271

Foundation Exam Essentials 272

Practitioner Exam Essentials 274

Review Questions 275

Foundation Exam Questions 275

Practitioner Exam Questions 277

Chapter 8 Change Theme 281

Change Theme Terminology 282

Baselines 282

Releases 283

Configuration Items 283

Types of Issues 283

Request for Change 284

Off-Specification 284

Problem/Concern 285

Change Authority 286

Change Budget 288

Issue and Change Control Procedure 288

Capturing Issues 289

Assessing Issues 291

Proposing Corrective Actions 291

Deciding on Corrective Actions 292

Implementing Corrective Actions 293

Tracking and Controlling Configuration Items 293

Tracking Configuration Items 293

Controlling Baselines 296

Change Control Approach 297

Roles Involved with the Change Theme 298

Tailoring the Change Theme 299

Minimum Requirements 299

Aligning the Change Approach with Organizational or Programme Approaches 299

Agile Environments 300

Linking the Change Theme with the Principles 300

Summary 301

Foundation Exam Essentials 302

Review Questions 305

Foundation Exam Questions 305

Practitioner Exam Questions 307

Chapter 9 Progress Theme 311

Purpose of the Progress Theme 312

Tolerances and Exceptions 313

Levels of Tolerance 314

Types of Tolerance 318

PRINCE2 Controls 322

Project Board Controls 322

Project Manager Controls 324

Event-Driven vs. Time-Driven Controls 327

Controlling the Capturing and Reporting of Lessons 328

Roles Involved with the Progress Theme 329

Tailoring the Progress Theme 330

Minimum Requirements 330

Tailoring the Management Products 330

Projects within Programmes 332

Agile Environments 332

Linking the Progress Theme with the PRINCE2 Principles 334

Summary 334

Foundation Exam Essentials 335

Practitioner Exam Essentials 337

Review Questions 339

Foundation Exam Questions 339

Practitioner Exam Questions 341

Chapter 10 Managing the Middle of a Project Successfully with PRINCE2 345

Overview of the Middle of a PRINCE2 Project 348

The Controlling a Stage and Managing Product

Delivery Processes 349

Controlling the Delivery of the Specialist Work 351

Reporting on the Progress of a Stage 358

Dealing with Issues and Risks During a Stage 359

Deciding What to Do Next in a Stage 361

Key Facts for Controlling a Stage and Managing Product Delivery 362

Tailoring the Controlling a Stage and Managing Product Delivery Processes 364

The Managing a Stage Boundary Process 366

Plan the Next Management Stage 367

Produce an Exception Plan 368

Update the Project Plan 369

Update the Business Case 370

Report Stage End 370

After Managing a Stage Boundary 371

Key Facts for Managing a Stage Boundary 372

Tailoring the Managing a Stage Boundary Process 373

The Directing a Project Process 374

Authorize a Stage or Exception Plan 374

Give Ad Hoc Direction 375

Themes Used to Manage the Middle of the Project 375

Business Case Theme 375

Organization Theme 376

Quality Theme 376

Plans Theme 377

Risk Theme 377

Change Theme 378

Progress Theme 378

Using the PRINCE2 Principles to Successfully Manage the Middle of a Project 379

Summary 380

Foundation Exam Essentials 380

Practitioner Exam Essentials 382

Review Questions 386

Foundation Exam Questions 386

Practitioner Questions 388

Chapter 11 Managing the End of a Project Successfully with PRINCE2 391

Overview of the End of a PRINCE2 Project 393

The Closing a Project Process 395

Prepare Planned Closure 397

Prepare Premature Closure 397

Hand Over Products 397

Evaluate the Project 398

Recommend Project Closure 399

Key Facts for Closing a Project 399

Tailoring the Closing a Project Process 400

The Directing a Project Process 401

Authorize Project Closure 402

Key Facts for Directing a Project 402

Tailoring the Directing a Project Process 403

Using the PRINCE2 Themes to Close the Project 404

Business Case Theme 404

Organization Theme 404

Quality Theme 404

Plans Theme 405

Risk Theme 405

Change Theme 405

Progress Theme 405

Using the PRINCE2 Principles to Close the Project 405

Summary 406

Foundation Exam Essentials 406

Practitioner Exam Essentials 407

Review Questions 409

Foundation Exam Questions 409

Practitioner Exam Questions 411

Chapter 12 Passing the Accreditation Exams 415

Preparing for the Exams 416

Preparing for the Foundation Exam 416

Preparing for the Practitioner Exam 421

Taking the Exams 422

General Tips for Taking the Exams 422

Taking the Foundation Exam 425

Taking the Practitioner Exam 426

Appendix A Answers to Review Questions 433

Chapter 1: Overview of PRINCE2 434

Foundation Exam Answers 434

Practitioner Exam Questions 435

Chapter 2: Starting a Project Successfully with PRINCE2 435

Foundation Exam Answers 435

Practitioner Exam Answers 437

Chapter 3: Organization Theme 438

Foundation Exam Answers 438

Practitioner Exam Answers 439

Chapter 4: Business Case Theme 441

Foundation Exam Questions 441

Practitioner Exam Questions 442

Chapter 5: Plans Theme 443

Foundation Exam Questions 443

Practitioner Exam Questions 444

Chapter 6: Quality Theme 445

Foundation Exam Questions 445

Practitioner Exam Questions 446

Chapter 7: Risk Theme 447

Foundation Exam Questions 447

Practitioner Exam Questions 448

Chapter 8: Change Theme 450

Foundation Exam Questions 450

Practitioner Exam Questions 451

Chapter 9: Progress Theme 452

Foundation Exam Questions 452

Practitioner Exam Questions 454

Chapter 10: Managing the Middle of a Project Successfully with PRINCE2 455

Foundation Exam Questions 455

Practitioner Questions 457

Chapter 11: Managing the End of a Project Successfully with PRINCE2 458

Foundation Exam Questions 458

Practitioner Exam Questions 459

Appendix B Practitioner Exam Scenario 461

Scenario—Website Project 462

Additional Information 463

Appendix C Management Products in PRINCE2 465

Appendix D Bonus PRINCE2 Foundation Exam 473

Foundation Questions 474

Answers to Bonus PRINCE2 Foundation Exam 486

Appendix E Bonus PRINCE2 Practitioner Exam 493

Project Scenario and Additional Information 495

Project Scenario 495

Additional Information 495

Questions 496

Principles 496

Business Case 498

Organization 499

Quality 501

Plans 502

Risk 503

Change 504

Progress 505

Starting Up a Project 506

Directing a Project 506

Initiating a Project 507

Controlling a Stage 508

Managing Product Delivery 509

Managing a Stage Boundary 510

Closing a Project 511

Answers to Practitioner Exam Questions 512

Answers to Principles 512

Answers to Business Case 513

Answers to Organization 514

Answer to Quality 515

Answers to Plans 516

Answers to Risk 516

Answers to Change 517

Answer to Progress 518

Answers to Starting Up a Project 518

Answers to Directing a Project 519

Answers to Initiating a Project 519

Answers to Controlling a Stage 520

Answers to Managing Product Delivery 520

Answers to Managing a Stage Boundary 520

Answers to Closing a Project 521

Index 523