The Create Project Plan activity is a crucial component of the Initiating a Project Process in PRINCE2 7. This activity involves developing a comprehensive plan that will guide the entire project from start to finish. The Project Plan serves as the baseline document against which progress will be m…The Create Project Plan activity is a crucial component of the Initiating a Project Process in PRINCE2 7. This activity involves developing a comprehensive plan that will guide the entire project from start to finish. The Project Plan serves as the baseline document against which progress will be measured throughout the project lifecycle.
During this activity, the Project Manager works to establish the overall approach for delivering the project. This includes identifying the major products that need to be created, determining the sequence of work, estimating the time and resources required, and establishing key milestones and decision points.
The Project Plan typically contains several essential elements. First, it includes a product breakdown structure that identifies all major deliverables. Second, it outlines the project schedule showing when activities will occur and dependencies between them. Third, it details resource requirements including personnel, equipment, and materials needed. Fourth, it establishes the budget and cost estimates for the entire project.
The plan must also incorporate appropriate management controls, including stage boundaries where the Project Board will review progress and authorise continuation. Risk management considerations are integrated into the planning process to ensure potential threats and opportunities are addressed.
Creating the Project Plan requires input from various sources including the Project Brief, lessons learned from previous projects, and organisational standards. The Project Manager may consult with team members and specialists to ensure estimates are realistic and achievable.
Once completed, the Project Plan becomes part of the Project Initiation Documentation and is submitted to the Project Board for approval. This approval represents a significant commitment of organisational resources and authorises the project to proceed into the delivery stages. The plan provides transparency to stakeholders about what will be delivered, when it will be completed, and what resources are needed to achieve success.
Create Project Plan - PRINCE2 Foundation V7 Complete Guide
Introduction
The Create Project Plan activity is a fundamental component of the Initiating a Project process in PRINCE2 V7. This guide will help you understand its importance, mechanics, and how to tackle exam questions effectively.
What is the Create Project Plan?
The Project Plan is a high-level plan that provides the baseline for the Business Case and covers the entire project lifecycle. It describes how and when the project's objectives are to be achieved, showing the major products, activities, and resources required.
The Project Plan is created during the Initiating a Project process and is used by the Project Board to monitor progress at a strategic level throughout the project.
Why is Creating the Project Plan Important?
• Provides a baseline: It establishes the foundation against which project progress can be measured • Supports the Business Case: The plan provides cost and time information essential for assessing project viability • Enables strategic control: Allows the Project Board to make informed decisions about the project's direction • Defines delivery approach: Clarifies how the project's products will be developed and delivered • Identifies major milestones: Highlights key decision points and deliverables throughout the project
How Does Creating the Project Plan Work?
The Project Manager creates the Project Plan using the following steps:
1. Design the plan: Determine the planning approach, estimation methods, and level of detail required
2. Define and analyze the products: Use product-based planning to identify what needs to be delivered
3. Identify activities and dependencies: Determine what work is needed and in what sequence
4. Prepare estimates: Estimate effort, resources, and costs for each activity
5. Prepare the schedule: Create a timeline showing when activities will occur and resources will be needed
6. Document the plan: Record all planning information including risks, assumptions, and prerequisites
Key Components of the Project Plan
• Plan description and prerequisites • External dependencies • Planning assumptions • Delivery approach • Schedule with milestones • Budget breakdown • Tolerances for time, cost, scope, quality, benefits, and sustainability • Product descriptions for major products
Relationship with Other Elements
The Project Plan relates to several other PRINCE2 components:
• Business Case: Provides cost and schedule data for viability assessment • Stage Plans: More detailed plans created for each management stage, derived from the Project Plan • Project Product Description: Defines the final deliverable that the plan aims to produce • Risk Register: Planning identifies risks that must be recorded and managed
Exam Tips: Answering Questions on Create Project Plan
Tip 1: Remember that the Project Plan is a high-level plan covering the entire project. Stage Plans provide the detail for day-to-day management.
Tip 2: Know that the Project Manager creates the Project Plan, but the Project Board approves it as part of authorizing the project.
Tip 3: Understand that product-based planning is the recommended technique for defining what needs to be delivered.
Tip 4: Be clear that the Project Plan is created during Initiating a Project, not during Starting up a Project. The Project Brief and outline plan come from Starting up a Project.
Tip 5: Watch for questions about tolerances. The Project Plan includes project-level tolerances set by corporate or programme management.
Tip 6: Remember the Project Plan may be updated during the project, particularly when exception plans replace stage plans or at stage boundaries.
Tip 7: Questions may test whether you understand the difference between the Project Plan and Stage Plans. The Project Plan shows the big picture; Stage Plans show how to deliver each stage.
Tip 8: Look for keywords like 'baseline', 'strategic monitoring', and 'Business Case support' when identifying Project Plan purposes.