The Produce Exception Plan activity within the Managing a Stage Boundary process is a critical response mechanism in PRINCE2 7 when a stage or project is forecast to exceed its agreed tolerances. This activity is triggered when the Project Manager identifies that the current Stage Plan cannot be de…The Produce Exception Plan activity within the Managing a Stage Boundary process is a critical response mechanism in PRINCE2 7 when a stage or project is forecast to exceed its agreed tolerances. This activity is triggered when the Project Manager identifies that the current Stage Plan cannot be delivered within the approved boundaries and an Exception Report has been submitted to the Project Board.
When tolerance levels for time, cost, scope, quality, benefits, or risk are predicted to be breached, the Project Board may request an Exception Plan as an alternative to stopping the project. The Exception Plan essentially replaces the current Stage Plan or, in more severe cases, the entire Project Plan.
The Project Manager is responsible for creating the Exception Plan, which must address the exception situation and provide a viable path forward. This plan should cover the remaining work from the current point until the end of the stage or project, depending on the severity of the deviation. The Exception Plan must be developed with the same rigour and detail as any other stage plan, including updated schedules, resource allocations, risk assessments, and revised tolerance requests.
Key considerations when producing an Exception Plan include identifying the root cause of the exception, determining corrective actions, assessing impacts on subsequent stages, updating relevant documentation, and ensuring alignment with the overall project objectives and Business Case viability.
Once completed, the Exception Plan is submitted to the Project Board for approval through the Directing a Project process. The Board will evaluate whether the proposed approach remains viable and represents value for the organisation. If approved, the Exception Plan becomes the new baseline against which progress is measured. This mechanism ensures that the project maintains proper governance and that senior management retains control over significant deviations from the original agreements.
Produce Exception Plan - PRINCE2 Foundation V7 Complete Guide
Understanding Produce Exception Plan
The Produce Exception Plan activity is a critical component of the Managing a Stage Boundary process in PRINCE2. This activity is triggered when a stage or project is forecast to exceed its agreed tolerances, requiring the Project Manager to create a new plan that addresses the exception situation.
Why is Produce Exception Plan Important?
Exception Plans are essential for maintaining project control and governance. When a project deviates beyond acceptable limits, the organization needs a structured way to respond. The importance includes:
• Maintains Control: Ensures the project remains under proper management even when things go wrong • Provides Options: Gives the Project Board clear information to make informed decisions • Preserves Governance: Maintains the principle of management by exception at the appropriate level • Documents Recovery: Creates a formal record of how the project will recover from the exception • Enables Accountability: Ensures proper authorization for any revised approach
What is an Exception Plan?
An Exception Plan replaces the current Stage Plan (or Project Plan if the exception affects the whole project). It covers the period from the current point to the end of the stage or project. The plan must:
• Show how the exception will be resolved • Be produced at the same level of detail as the plan it replaces • Include revised time, cost, scope, risk, and benefit forecasts • Be submitted to the Project Board for approval
How Does Produce Exception Plan Work?
The process follows these key steps:
Step 1: Receive Direction The Project Board, through the Exception Report, requests an Exception Plan rather than choosing to close the project or take other action.
Step 2: Analyze the Exception The Project Manager reviews the cause and impact of the exception to understand what needs to change.
Step 3: Create the Exception Plan Using the same planning techniques as normal Stage Plans, the Project Manager develops a replacement plan that addresses the exception.
Step 4: Update Related Documentation The Business Case, risk register, and other project documents are updated to reflect the new plan.
Step 5: Submit for Approval The Exception Plan is presented to the Project Board for authorization through the Exception Assessment.
Key Relationships with Other Processes
• Controlling a Stage: This is where the exception is first identified and escalated • Directing a Project: The Project Board reviews and approves the Exception Plan • Exception Report: This document triggers the need for an Exception Plan
Exam Tips: Answering Questions on Produce Exception Plan
Tip 1: Remember the Trigger Exception Plans are only produced when requested by the Project Board after reviewing an Exception Report. The Project Manager cannot decide to create one independently.
Tip 2: Know What Gets Replaced An Exception Plan replaces the current Stage Plan (most common) or Project Plan. It does not exist alongside the original plan.
Tip 3: Understand the Authorization Level Exception Plans must be approved by the Project Board, not the Project Manager. This is a common exam question area.
Tip 4: Remember the Content Requirements The Exception Plan must be at the same level of detail as the plan it replaces. Exam questions may test whether you know this requirement.
Tip 5: Distinguish from Exception Report The Exception Report describes the problem and seeks guidance. The Exception Plan provides the solution. Do not confuse these two documents in exam questions.
Tip 6: Know When Exception Plans are NOT Needed If the Project Board decides to close the project or if tolerances can be adjusted, an Exception Plan may not be required.
Tip 7: Link to Management by Exception Questions may test your understanding of how Exception Plans support the management by exception principle - they escalate decisions to the appropriate authority level.
Common Exam Question Themes
• Who produces the Exception Plan? (Project Manager) • Who approves the Exception Plan? (Project Board) • What triggers an Exception Plan? (Project Board request following Exception Report) • What does an Exception Plan replace? (Current Stage Plan or Project Plan) • Which process contains Produce Exception Plan? (Managing a Stage Boundary)