A Project Plan is a fundamental management product within the PRINCE2 7 framework that provides a high-level overview of the entire project. It serves as the primary planning document that describes how and when the project objectives will be achieved, including the major products, activities, reso…A Project Plan is a fundamental management product within the PRINCE2 7 framework that provides a high-level overview of the entire project. It serves as the primary planning document that describes how and when the project objectives will be achieved, including the major products, activities, resources, and costs involved throughout the project lifecycle.
The Project Plan is created during the Initiating a Project process and is refined as the project progresses. It forms part of the Project Initiation Documentation (PID) and provides the baseline against which project progress and performance can be measured by the Project Board.
Key components of a Project Plan include the project schedule showing major milestones and stage boundaries, resource requirements identifying what people, equipment, and materials are needed, cost estimates and budget allocations, risk assessment considerations, quality management approaches, and assumptions and constraints that affect delivery.
The Project Plan operates at a strategic level, providing sufficient detail for the Project Board to exercise control while delegating day-to-day management to the Project Manager. It does not contain the granular detail found in Stage Plans, which break down each management stage into specific work packages and activities.
The Project Plan must align with the Business Case, demonstrating how the planned approach will deliver the expected benefits within acceptable tolerances for time, cost, scope, quality, risk, and sustainability. It should be realistic, achievable, and based on sound estimates derived from historical data, expert judgment, or estimation techniques.
Throughout the project, the Project Plan may be updated to reflect approved changes, lessons learned, or revised forecasts. Any significant deviations from the plan trigger exception reporting to the Project Board, ensuring appropriate governance and decision-making at the right organizational level.
Project Plan - PRINCE2 Foundation V7 Complete Guide
What is a Project Plan?
The Project Plan is a high-level plan that provides a statement of how and when a project's objectives are to be achieved. It shows the major products, activities, and resources required for the project. The Project Plan forms the baseline against which the Project Board monitors project progress and is essential for gaining authorization to proceed.
Why is the Project Plan Important?
The Project Plan is crucial for several reasons:
1. Authorization and Control: It provides the Project Board with the information needed to authorize the project and each subsequent stage.
2. Baseline for Monitoring: It establishes a baseline against which actual progress can be measured and compared throughout the project lifecycle.
3. Communication Tool: It communicates the project timeline, major deliverables, and resource requirements to all stakeholders.
4. Risk Management: By planning ahead, potential risks and issues can be identified early and appropriate responses developed.
5. Resource Planning: It helps ensure that the right resources are available at the right time.
How Does the Project Plan Work?
The Project Plan is created during the Initiating a Project process and is refined throughout the project. Here is how it functions:
Creation: The Project Manager develops the Project Plan using the planning approach defined in the Project Initiation Documentation (PID).
Level of Detail: The Project Plan is less detailed than Stage Plans. It focuses on major products and milestones rather than individual activities.
Components: A typical Project Plan includes: - Plan description and prerequisites - External dependencies - Planning assumptions - Schedule showing timescales - Product descriptions for major products - Resource requirements and costs - Risk summary
Updates: The Project Plan may be updated at the end of each stage to reflect actual progress and any approved changes.
Relationship with Other Plans
The Project Plan sits within a hierarchy of plans in PRINCE2:
- Programme Plan: If the project is part of a programme, the Project Plan must align with the programme plan. - Stage Plans: These provide detailed planning for each management stage and must align with the Project Plan. - Team Plans: Optional plans created by Team Managers that must align with Stage Plans.
Exam Tips: Answering Questions on Project Plan
Tip 1 - Know the Purpose: Remember that the Project Plan is primarily for the Project Board to authorize and monitor the project at a high level. Questions often test whether you understand this governance purpose.
Tip 2 - Understand the Level of Detail: The Project Plan is less detailed than Stage Plans. If a question asks about detailed day-to-day activities, the answer is likely referring to Stage Plans or Team Plans, not the Project Plan.
Tip 3 - Remember When It Is Created: The Project Plan is created during Initiating a Project. Questions may ask about when different plans are produced.
Tip 4 - Know Who Is Responsible: The Project Manager creates and maintains the Project Plan, but the Project Board approves it. This distinction often appears in exam questions.
Tip 5 - Baseline Concept: Understand that the Project Plan serves as a baseline. Any approved changes should be reflected in updates to maintain an accurate baseline for comparison.
Tip 6 - External Dependencies: Remember that the Project Plan should document external dependencies that are outside the Project Manager's control. This is a commonly tested point.
Tip 7 - Read Questions Carefully: Pay attention to whether questions ask about the Project Plan specifically or plans in general. PRINCE2 uses precise terminology, so ensure your answer matches what is being asked.
Tip 8 - Link to Business Case: The Project Plan supports the Business Case by showing how and when the project will deliver its products. Understanding this connection helps answer questions about project justification.