Product-Based Planning
Product-Based Planning is a powerful planning technique that implements the PRINCE2 principle of 'Focus on Products'. Unlike activity-focused planning methods, this approach centers on the outputs or deliverables (products) that the project must produce, rather than the work required to create them. This shift in focus helps ensure that all stakeholders clearly understand what the project will deliver before work begins. The technique involves four steps: writing a Project Product Description that defines the final deliverable; creating a product breakdown structure that hierarchically decomposes the final product into its constituent components; developing product descriptions for each significant product; and creating a product flow diagram showing dependencies between products. By defining products clearly before work begins, Product-Based Planning addresses a common cause of project failure: unclear or misunderstood requirements. It provides a shared understanding among stakeholders about what will be delivered, reducing scope creep and misalignment of expectations. The technique aligns with quality management principles by defining acceptance criteria and quality methods for each product upfront. It also facilitates more accurate estimation since well-defined products make it easier to estimate required resources and time. Product-Based Planning supports effective delegation as product descriptions provide clear targets for team members. By focusing on deliverables rather than activities, this approach helps keep the project aligned with business needs and ensures the finished project actually delivers what was agreed upon at the outset.
Product-Based Planning in PRINCE2: A Comprehensive Guide
Introduction to Product-Based Planning
Product-Based Planning is a crucial technique within the PRINCE2 methodology that focuses on planning by first identifying the products (deliverables) to be created rather than the activities needed to create them.
Why Product-Based Planning is Important
Product-Based Planning is essential because it:
• Ensures clarity about what needs to be delivered
• Helps identify dependencies between products
• Improves estimation accuracy
• Facilitates better resource allocation
• Enhances stakeholder communication
• Reduces the risk of scope creep
• Provides clear criteria for measuring progress
What Product-Based Planning Is
Product-Based Planning is a structured planning technique that starts by identifying all products (deliverables) required by the project. It shifts focus from activities to outcomes, ensuring that the project delivers what is needed rather than just keeping busy with tasks.
In PRINCE2, Product-Based Planning consists of four key steps:
1. Write the Project Product Description - Defining the final deliverable
2. Create the Product Breakdown Structure - Decomposing the final product into component products
3. Write the Product Descriptions - Specifying each product in detail
4. Create the Product Flow Diagram - Showing dependencies between products
How Product-Based Planning Works
1. Project Product Description (PPD)
The PPD defines the overall project deliverable, including:
• Purpose and composition
• Quality criteria
• Customer quality expectations
• Acceptance criteria
• Required skills
2. Product Breakdown Structure (PBS)
The PBS breaks down the final product into its constituent parts in a hierarchical structure, similar to an organizational chart. It shows what needs to be delivered, not how. The PBS includes:
• The final product at the top
• Major products in the next level
• Sub-products beneath them
• External products (those already existing or created outside the project)
3. Product Descriptions
For each product identified in the PBS, a product description is created that includes:
• Title and identifier
• Purpose
• Composition
• Derivation (source inputs)
• Format and presentation
• Quality criteria
• Quality method
4. Product Flow Diagram (PFD)
The PFD shows the sequence in which products will be developed and the dependencies between them. It answers:
• What products are needed to create each product?
• What products can be created once this product is complete?
From these four components, the project team can then derive:
• Activities required to create each product
• Estimates for those activities
• Resource requirements
• A schedule or plan
Exam Tips: Answering Questions on Product-Based Planning
Understanding the Fundamentals:
• Know the four components of Product-Based Planning (PPD, PBS, Product Descriptions, PFD)
• Understand that products come before activities in PRINCE2 planning
• Recognize that Product-Based Planning is part of the Plans theme
Identifying Key Characteristics:
• The PBS is a hierarchical breakdown, not showing sequence
• The PFD shows sequence and dependencies
• External products are included in the PBS but marked differently
• Management products (e.g., plans, reports) should also be included
Application Questions:
• When presented with a scenario, identify what would go in each component
• For Product Descriptions, focus on quality criteria and acceptance methods
• For the PBS, remember to include all products, including management products
• For the PFD, focus on logical dependencies between products
Common Pitfalls to Avoid:
• Mixing up the PBS (hierarchy of products) and PFD (sequence and dependencies)
• Focusing on activities rather than products
• Forgetting to include management products in the planning process
• Confusing product descriptions with work packages
Sample Question Approach:
When faced with a question about Product-Based Planning:
1. Identify which component is being discussed (PPD, PBS, Product Description, PFD)
2. Remember the purpose of that component
3. Eliminate answers that focus on activities rather than products
4. Look for answers that emphasize the product-focused nature of PRINCE2
By mastering Product-Based Planning, you'll demonstrate a solid understanding of one of PRINCE2's most distinctive and powerful planning approaches.
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