Product-based Planning is a fundamental technique within PRINCE2 7 that focuses on defining and delivering the products (outputs or deliverables) required by a project rather than concentrating solely on activities or tasks. This approach ensures clarity about what needs to be produced before deter…Product-based Planning is a fundamental technique within PRINCE2 7 that focuses on defining and delivering the products (outputs or deliverables) required by a project rather than concentrating solely on activities or tasks. This approach ensures clarity about what needs to be produced before determining how to produce it.
The technique comprises three main components:
1. **Project Product Description**: This defines the overall end product that the project will deliver. It includes details such as the product's purpose, composition, quality criteria, and acceptance methods. This description provides a clear vision of what success looks like.
2. **Product Breakdown Structure (PBS)**: This is a hierarchical diagram that breaks down the final product into its constituent parts. It identifies all products needed to create the final deliverable, including management products, specialist products, and any external products required from third parties. The PBS provides a comprehensive view of everything the project must produce.
3. **Product Flow Diagram (PFD)**: This shows the sequence and dependencies between products. It illustrates which products must be completed before others can begin, helping to establish a logical order of delivery and identify potential bottlenecks.
Product-based Planning offers several benefits. It ensures stakeholders share a common understanding of deliverables, reduces the risk of scope creep by clearly defining boundaries, facilitates accurate estimation by focusing on tangible outputs, and improves quality management by establishing clear criteria for each product.
Once products are defined through this technique, planners can then identify the activities needed to create them, estimate resources and durations, and develop schedules. This product-first approach distinguishes PRINCE2 from activity-based planning methods and supports better project control throughout the project lifecycle.
Product-based Planning in PRINCE2 v7 - Complete Guide
Introduction to Product-based Planning
Product-based Planning is one of the most distinctive and powerful techniques within the PRINCE2 methodology. It represents a fundamental shift from activity-focused planning to output-focused planning, ensuring that projects deliver tangible, measurable results.
Why is Product-based Planning Important?
Product-based Planning is crucial for several reasons:
• Clarity of Scope: It provides an unambiguous definition of what the project will deliver, reducing misunderstandings between stakeholders • Quality Focus: By defining products first, quality criteria can be established before work begins • Better Estimation: Understanding exactly what needs to be produced allows for more accurate time and cost estimates • Stakeholder Agreement: Product descriptions serve as a contract between the project team and stakeholders • Reduced Scope Creep: Clear product definitions make it easier to identify and manage changes • Improved Communication: Everyone understands what success looks like before work commences
What is Product-based Planning?
Product-based Planning is a technique that focuses on identifying, defining, and planning the delivery of products (outputs) rather than planning activities first. In PRINCE2 v7, a product is defined as an input or output that can be described in advance, created, and tested.
Products are categorized into two types:
• Management Products: These support the management of the project (e.g., Business Case, Project Plan, Checkpoint Reports) • Specialist Products: These are the actual deliverables specific to the project (e.g., software application, training manual, building design)
How Does Product-based Planning Work?
Product-based Planning follows a structured approach with four key steps:
Step 1: Write the Project Product Description
The Project Product Description defines the overall output of the project. It includes: • Purpose of the product • Composition (what it consists of) • Derivation (where inputs come from) • Development skills required • Customer's quality expectations • Acceptance criteria • Acceptance method • Acceptance responsibilities
Step 2: Create the Product Breakdown Structure (PBS)
The PBS is a hierarchical diagram that decomposes the final product into its component parts. It shows: • The project product at the top • Major products beneath • Sub-products at lower levels • External products (shown differently as they come from outside the project)
Step 3: Write Product Descriptions
Each product identified in the PBS requires a Product Description containing: • Identifier: Unique reference • Title: Name of the product • Purpose: Why the product is needed • Composition: What the product consists of • Derivation: Sources and inputs needed • Format and presentation: Characteristics of the product • Development skills required: Competencies needed to create it • Quality criteria: Measurable specifications • Quality tolerance: Permitted deviation • Quality method: How quality will be checked • Quality skills required: Competencies for quality checking • Quality responsibilities: Who performs quality activities
Step 4: Create the Product Flow Diagram (PFD)
The PFD shows the sequence and dependencies between products. It illustrates: • Which products must be completed before others can start • External products entering the flow • The logical order of product creation
The Relationship Between PBS and PFD
The PBS answers the question "What products do we need?" while the PFD answers "In what order do we create them?" Together, they provide a complete picture of the project's deliverables and their relationships.
Exam Tips: Answering Questions on Product-based Planning
Tip 1: Remember the Sequence The correct order is: Project Product Description → Product Breakdown Structure → Product Descriptions → Product Flow Diagram. Exam questions often test whether you know this sequence.
Tip 2: Distinguish Between PBS and PFD A common exam trap is confusing these two diagrams. Remember: • PBS = hierarchical breakdown (like a family tree) • PFD = sequential flow (like a process map)
Tip 3: Know External Products External products are inputs from outside the project scope. In exams, recognize that these appear in both PBS and PFD but are shown with different notation (typically an ellipse or different shape).
Tip 4: Understand Quality Criteria vs. Acceptance Criteria • Quality criteria appear in Product Descriptions for individual products • Acceptance criteria appear in the Project Product Description for the final deliverable
Tip 5: Link to Other PRINCE2 Elements Product-based Planning connects to: • The Plans practice (it is the core technique) • The Quality practice (product descriptions define quality criteria) • The Business Case (products must justify their inclusion)
Tip 6: Focus on Benefits Over Activities When answering scenario questions, remember that Product-based Planning emphasizes what is delivered rather than how work is performed. Look for answers that focus on outputs and deliverables.
Tip 7: Practice Identifying Products In scenario-based questions, practice identifying what would be classified as a product versus an activity. Products are tangible outputs; activities are the work done to create them.
Tip 8: Remember the Purpose If unsure about an answer, return to the fundamental purpose: Product-based Planning ensures the project delivers what stakeholders need by defining products before planning activities.
Common Exam Question Types
• Questions asking you to identify the correct sequence of Product-based Planning steps • Scenarios requiring you to determine which Product-based Planning document addresses a specific issue • Questions about what information belongs in a Product Description versus Project Product Description • Identifying external products in a given scenario • Understanding when Product-based Planning is applied during the project lifecycle
Key Points to Remember
• Product-based Planning is applied at all levels: project, stage, and team • The Project Manager is responsible for creating and maintaining plans using this technique • Product Descriptions can be refined as the project progresses • This technique supports the PRINCE2 principle of focusing on products