The Update Project Plan activity is a critical component of the Managing a Stage Boundary process in PRINCE2 7. This activity ensures that the Project Plan remains an accurate and realistic representation of the project's trajectory throughout its lifecycle.
When a stage boundary is reached, the P…The Update Project Plan activity is a critical component of the Managing a Stage Boundary process in PRINCE2 7. This activity ensures that the Project Plan remains an accurate and realistic representation of the project's trajectory throughout its lifecycle.
When a stage boundary is reached, the Project Manager must review and update the Project Plan to reflect the actual progress made during the current stage and incorporate any approved changes. This update provides the Project Board with current information needed to make informed decisions about continuing the project.
The key elements involved in updating the Project Plan include:
1. Recording Actuals: The Project Manager documents the actual costs, timescales, and resource usage from the completed stage against what was originally planned. This comparison highlights variances and trends.
2. Revising Future Estimates: Based on performance during the current stage, estimates for remaining work may need adjustment. Lessons learned and experience gained help refine these projections.
3. Incorporating Changes: Any approved changes to scope, schedule, or budget must be integrated into the updated plan to ensure it reflects the current agreed baseline.
4. Updating Tolerances: The plan should show revised tolerance levels where necessary, ensuring alignment with project governance requirements.
5. Risk and Issue Impact: The Project Manager must account for how identified risks and issues might affect future stages and adjust the plan accordingly.
The updated Project Plan feeds into the End Stage Report and supports the stage boundary decision-making process. The Project Board uses this information alongside the next Stage Plan to decide whether to authorize continuation.
This activity demonstrates PRINCE2's commitment to management by stages and ensures continued business justification by providing accurate forecasting of project completion dates, costs, and benefits realization. Regular plan updates maintain transparency and enable effective project oversight.
Update Project Plan - PRINCE2 Foundation v7 Guide
Why is Update Project Plan Important?
The Update Project Plan activity is a critical component of the Managing a Stage Boundary process in PRINCE2. It ensures that the Project Plan remains an accurate and reliable tool for project governance. As stages progress, circumstances change, and the project team gains better understanding of remaining work. Keeping the Project Plan current allows the Project Board to make informed decisions about whether to continue investing in the project.
What is Update Project Plan?
Update Project Plan is an activity performed by the Project Manager during stage boundaries. It involves revising the overall Project Plan to reflect:
• Actual progress achieved in the current stage • Updated forecasts for remaining stages • Any approved changes that affect the project baseline • Refined estimates based on experience gained • Updated risk assessments and their impact on planning
The updated plan provides the Project Board with a realistic view of how the project is expected to proceed.
How Does Update Project Plan Work?
The Project Manager performs this activity as part of preparing the Stage Boundary documentation. The process involves:
1. Recording Actuals: Documenting what has actually been achieved, including costs incurred, time elapsed, and products completed.
2. Revising Forecasts: Adjusting predictions for future stages based on current knowledge and performance trends.
3. Incorporating Changes: Ensuring all approved changes from the issue and change control process are reflected in the plan.
5. Aligning with Business Case: Ensuring the updated plan supports the continued viability of the Business Case.
Key Inputs and Outputs
Inputs: • Current Project Plan • Stage Plan actuals • Approved changes • Updated risk information • Lessons learned
Output: • Updated Project Plan ready for Project Board review
Exam Tips: Answering Questions on Update Project Plan
1. Remember the Timing: Update Project Plan occurs during the Managing a Stage Boundary process, not at project closure or during stage execution.
2. Know the Responsible Role: The Project Manager is responsible for updating the Project Plan. The Project Board reviews and approves it but does not create it.
3. Understand the Purpose: Questions may test whether you understand that this activity provides the Project Board with accurate information for their go/no-go decision on the next stage.
4. Link to Other Products: The updated Project Plan connects to the End Stage Report and the Stage Plan for the next stage. Questions may ask about these relationships.
5. Focus on Forecasts: Remember that updating includes both recording what happened AND revising future forecasts. Both elements are essential.
6. Consider the Business Case: The updated Project Plan must support Business Case review. If the plan shows the project is no longer viable, this affects continuation decisions.
7. Watch for Exception Scenarios: If an Exception Plan replaces a Stage Plan, the Project Plan still needs updating to reflect this change.
8. Distinguish from Stage Plan: Exam questions may try to confuse you between updating the Project Plan (overall project view) and creating the next Stage Plan (detailed view of upcoming stage). These are separate activities.
Common Exam Question Formats:
• Which role is responsible for updating the Project Plan? • When does the Update Project Plan activity occur? • What information is included in an updated Project Plan? • Why is updating the Project Plan necessary at stage boundaries?
Always read questions carefully and focus on the specific PRINCE2 terminology used.