In the context of the PRINCE2 7 'Initiating a Project' process, creating the Project Plan is a critical activity led by the Project Manager. Its primary objective is to transform the high-level outline from the Project Brief into a detailed, baselined roadmap that specifies how, when, and at what c…In the context of the PRINCE2 7 'Initiating a Project' process, creating the Project Plan is a critical activity led by the Project Manager. Its primary objective is to transform the high-level outline from the Project Brief into a detailed, baselined roadmap that specifies how, when, and at what cost the project's products will be delivered. This plan constitutes a major part of the Project Initiation Documentation (PID) and is essential for obtaining Project Board authorization to proceed.
The creation of the Project Plan utilizes the PRINCE2 product-based planning technique to ensure a focus on outputs. This involves four specific steps: writing the Project Product Description to define the final deliverable and its acceptance criteria; creating a Product Breakdown Structure (PBS) to visualize the hierarchy of components; defining Product Descriptions for lower-level deliverables; and producing a Product Flow Diagram (PFD) to map the sequence of production.
Following product definition, the Project Manager identifies the activities, resources, and durations required to build these products. This leads to the development of a schedule and budget, including the calculation of the project's timeline and cash flow. The plan also incorporates specific management stages, which serve as control points for the Project Board. Furthermore, the Project Plan must align with the management approaches (Risk, Quality, Change, and Sustainability) defined earlier in the initiation process. Once approved, this plan becomes the master baseline against which performance, progress, and continued business justification are measured throughout the project lifecycle.
Create Project Plan (Initiating a Project Process)
What is 'Create Project Plan'? In the PRINCE2 methodology, Create Project Plan is a specific activity within the Initiating a Project (IP) process. While the starting point of a project involves a high-level initiation plan, this activity requires the Project Manager to produce a comprehensive plan covering the entire duration of the project. It provides a statement of how and when a project's objectives are to be achieved, by showing the major products, activities, and resources required.
Why is it Important? The Project Plan is critical because it acts as the baseline for the project. It allows the Project Board to verify the project's achievability before committing major resources (Authorizing the Project). Its specific importance lies in: 1. Business Case Validation: The time and cost estimates derived here update the Business Case to confirm the project is still viable. 2. Control: It establishes the Project Controls and Management Stages. 3. Communication: It clearly defines the scope and schedule for stakeholders.
How it Works Creating the Project Plan involves applying the PRINCE2 approach to planning, specifically emphasizing Product-Based Planning. The steps include: 1. Design the Plan: Deciding on the format and estimation methods. 2. Define and Analyze Products: Creating the Product Breakdown Structure (PBS) and Product Flow Diagram (PFD). 3. Identify Activities and Dependencies: Determining what work is needed to build the products. 4. Prepare Estimates: Calculating effort, time, and cost. 5. Prepare the Schedule: Defining the management stages and key milestones. 6. Analyze Risks: Assessing risks that might impact the schedule.
Exam Tips: Answering Questions on Create Project Plan When facing Practitioner exam questions regarding this activity, apply the following logic:
1. Distinguish the Level of Detail Ensure you are not confusing the Project Plan with a Stage Plan. The Project Plan provides a high-level overview of the total costs and timescales. If a question asks about the detailed activities for the immediate next phase, that is a Stage Plan, not the Project Plan.
2. The Relationship with the Business Case Questions often link the Plan to the Business Case. Remember: The Project Plan provides the cost and timescale data. If the Project Plan indicates the project will take longer than required, the answer likely involves updating the Business Case to show reduced justification.
3. Product-Based Planning is Key PRINCE2 v7 emphasizes focusing on products before activities. If a scenario suggests the PM started by writing a to-do list or Gantt chart without defining products (PBS/PFD), this is a violation of the proper procedure.
4. Management Stages A vital part of this activity is defining the number and length of management stages. Look for answers that justify stage breaks based on risk, planning horizons, or key decision points.