Product-Based Planning
Product-Based Planning is a fundamental technique within PRINCE2's Plans theme that focuses on identifying and analyzing the products (deliverables) required from a project rather than the activities needed to create them. This technique shifts the planning emphasis from 'what work needs to be done' to 'what must be delivered,' ensuring clarity about project outputs before determining how to produce them. Product-Based Planning comprises three steps: creating a Product Breakdown Structure (PBS), which hierarchically decomposes the project's products; developing Product Descriptions that detail the purpose, composition, quality criteria, and other attributes of each product; and creating a Product Flow Diagram showing dependencies between products. This approach offers significant advantages by clarifying scope (preventing scope creep), improving quality (by defining acceptance criteria upfront), enhancing communication (by providing a common language about deliverables), and supporting effective estimation (by focusing on tangible outputs). Product-Based Planning aligns with PRINCE2's emphasis on delivering business value by ensuring the project team remains focused on creating required outputs rather than simply completing activities. It provides a robust foundation for subsequent activity planning, risk assessment, and resource allocation, ensuring the project remains aligned with business requirements. This technique helps avoid common planning pitfalls such as incomplete scope definition and unclear quality expectations.
Product-Based Planning in PRINCE2: A Comprehensive Guide
Introduction to Product-Based Planning
Product-Based Planning is a key technique within the Plans theme of PRINCE2 methodology. It represents a systematic approach to project planning that focuses on the deliverables (products) rather than activities, ensuring that all project outputs are clearly defined before work begins.
Why Product-Based Planning is Important
Product-Based Planning is crucial because it:
- Provides clarity on what needs to be delivered
- Ensures all stakeholders have a common understanding of project outputs
- Helps identify dependencies between products
- Reduces the risk of scope creep
- Enables more accurate estimation of time and resources
- Forms the foundation for quality planning and control
- Facilitates better communication about project deliverables
What is Product-Based Planning?
Product-Based Planning is a PRINCE2 planning technique that breaks down the project's end goal into its component products. Instead of starting with a list of activities, it starts by identifying what needs to be produced. This approach ensures that planning is oriented toward delivering tangible outcomes rather than just completing tasks.
The technique comprises four steps:
1. Write the Project Product Description - Defining the final deliverable
2. Create the Product Breakdown Structure - Decomposing the final product into its component products
3. Write Product Descriptions - Detailing each component product
4. Create the Product Flow Diagram - Showing the sequence and interdependencies
How Product-Based Planning Works
Step 1: Project Product Description
This document defines the purpose, composition, derivation, format, quality criteria, and quality methods for the project's final deliverable. It ensures everyone understands what the project aims to produce.
Step 2: Product Breakdown Structure (PBS)
The PBS is a hierarchical diagram that breaks down the final product into its major product groups and component products. It's similar to a family tree showing the relationship between products.
Step 3: Product Descriptions
For each product identified in the PBS, a product description is created, detailing:
- Purpose
- Composition
- Derivation (inputs needed)
- Format
- Quality criteria
- Quality methods
Step 4: Product Flow Diagram (PFD)
The PFD shows the sequence in which products will be developed and the dependencies between them. It helps identify the logical order of work.
Once these four steps are completed, the plan can be developed by identifying the activities needed to create each product, estimating time and resources, and scheduling work.
Exam Tips: Answering Questions on Product-Based Planning
1. Know the four steps: Remember the sequence - Project Product Description → PBS → Product Descriptions → PFD.
2. Understand the purpose: Be clear that Product-Based Planning focuses on deliverables rather than activities.
3. Recognize the components: For the Project Product Description and Product Descriptions, remember key elements (purpose, composition, derivation, format, quality criteria, quality methods).
4. Differentiate between diagrams: Know that the PBS shows hierarchical breakdown while the PFD shows sequence and dependencies.
5. Link to other themes: Understand how Product-Based Planning connects to the Quality theme (through quality criteria) and the Risk theme (by identifying product dependencies).
6. Identify benefits: Be prepared to explain advantages such as clarity, common understanding, and better quality control.
7. Application questions: Practice applying the technique to scenarios, identifying products vs. activities, and determining appropriate levels of breakdown.
8. Look for keywords: In exam questions, terms like "deliverable," "output," "product," "breakdown," and "dependency" often signal Product-Based Planning questions.
9. Remember specific terms: Use PRINCE2 terminology correctly - "products" not "deliverables," "Product Description" not "specification."
10. Context matters: Consider the project's size and complexity when determining the appropriate level of detail for Product-Based Planning.
By focusing on these key aspects, you'll be well-prepared to answer exam questions on Product-Based Planning in your PRINCE2 Foundation exam.
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