The Produce Exception Plan activity within the Managing a Stage Boundary process is a critical response mechanism in PRINCE2 7 when a stage or project is forecast to exceed its agreed tolerance levels. This activity is triggered when the Project Board has requested an exception plan following an ex…The Produce Exception Plan activity within the Managing a Stage Boundary process is a critical response mechanism in PRINCE2 7 when a stage or project is forecast to exceed its agreed tolerance levels. This activity is triggered when the Project Board has requested an exception plan following an exception report from the Project Manager.
When tolerance is forecast to be exceeded, the Project Manager must first raise an exception report to the Project Board. If the board decides the project should continue, they will request an exception plan to replace either the current stage plan or the entire project plan, depending on which tolerance has been breached.
The exception plan is essentially a new plan that replaces the remaining portion of the current plan from the point of the exception onwards. It must demonstrate how the project or stage will recover and reach a successful conclusion while addressing the issues that caused the exception.
Key elements of producing an exception plan include reviewing the cause of the exception, assessing available options for recovery, defining revised activities and resource requirements, updating risk and issue registers, and establishing new tolerance levels for board approval.
The Project Manager develops this plan using the same planning techniques and standards as regular stage or project plans. The plan must be realistic and achievable, incorporating lessons learned from the exception situation.
Once completed, the exception plan is submitted to the Project Board for approval through the exception assessment process. The board may approve the plan, request modifications, or decide to close the project prematurely if recovery appears unviable.
This mechanism ensures that significant deviations from agreed parameters receive appropriate executive attention and that informed decisions are made about project continuation. It maintains the management by exception principle central to PRINCE2 governance while providing a structured approach to handling significant variances.
Produce Exception Plan - PRINCE2 Practitioner V7 Complete Guide
Introduction to Produce Exception Plan
The Produce Exception Plan activity is a critical component of the Managing a Stage Boundary process in PRINCE2. It is triggered when a stage or project is forecast to exceed its tolerances, and the Project Board has instructed the Project Manager to prepare an Exception Plan as an alternative to stopping the project.
Why is Produce Exception Plan Important?
Understanding the importance of this activity is essential for exam success:
1. Maintains Project Viability When a project deviates significantly from its approved plan, an Exception Plan provides a formal mechanism to recover the situation while maintaining business justification.
2. Ensures Proper Governance It demonstrates that PRINCE2 has built-in controls for handling deviations, ensuring that significant changes receive appropriate authorization from the Project Board.
3. Provides a Recovery Path Rather than abandoning a project when things go wrong, the Exception Plan offers a structured approach to getting back on track.
4. Documents Lessons Learned The process of creating an Exception Plan captures valuable information about what went wrong and how similar issues can be avoided in future projects.
What is an Exception Plan?
An Exception Plan replaces the current Stage Plan (or Project Plan if the exception affects the whole project). It covers the period from the current point to the end of the stage or project, incorporating:
• The remaining work from the current plan • Any new or modified activities needed to address the exception • Revised time, cost, scope, risk, benefit, or quality targets • Updated product descriptions where necessary
When is an Exception Plan Produced?
An Exception Plan is produced when:
• A current or forecast deviation exceeds stage or project tolerances • The Project Manager has raised an Exception Report • The Project Board has reviewed the Exception Report and requested an Exception Plan (rather than choosing to close the project)
How Does Produce Exception Plan Work?
The activity follows a structured approach:
Step 1: Understand the Exception Review the Exception Report and the Project Board's direction. Understand the root cause and the constraints within which the Exception Plan must operate.
Step 2: Develop the Exception Plan Create a new plan that replaces the remainder of the current plan. This follows the same approach as creating any PRINCE2 plan, using the product-based planning technique.
Step 3: Update Related Documentation Revise the Business Case to reflect new forecasts. Update the Project Plan if the exception affects project-level targets. Review and update the Risk Register and Issue Register.
Step 4: Seek Project Board Approval Submit the Exception Plan to the Project Board for approval through the Exception Plan approval process in the Directing a Project process.
Key Inputs and Outputs
Inputs: • Exception Report (with Project Board direction) • Current Stage Plan or Project Plan • Project Initiation Documentation • Lessons Log • Risk Register • Issue Register
Outputs: • Exception Plan • Updated Business Case • Updated Project Plan (if applicable) • Updated Risk Register • Updated Issue Register
Relationship with Other Processes
Produce Exception Plan connects with:
• Controlling a Stage: Where the exception was first identified and the Exception Report was created • Directing a Project: Where the Project Board authorizes the Exception Plan • Managing Product Delivery: Where work continues under the approved Exception Plan
Exam Tips: Answering Questions on Produce Exception Plan
Tip 1: Know the Trigger Remember that an Exception Plan is only produced after the Project Board has reviewed an Exception Report and specifically requested one. The Project Manager cannot decide to create an Exception Plan independently.
Tip 2: Understand What Gets Replaced An Exception Plan replaces the remainder of the current Stage Plan or Project Plan. It does not supplement or run alongside the existing plan.
Tip 3: Focus on Authorization Questions often test whether you understand that Exception Plans require Project Board approval before implementation. The approval happens through the Directing a Project process, not Managing a Stage Boundary.
Tip 4: Distinguish from Issue Handling Not all issues lead to Exception Plans. Only issues that cause tolerance breaches and where the Project Board chooses to continue with a new plan result in Exception Plans.
Tip 5: Remember the Business Case Link Exception Plans must include an updated Business Case. This ensures the project remains viable despite the exception.
Tip 6: Watch for Scenario Context In scenario-based questions, identify whether tolerances have been breached and whether the Project Board has given direction. These are prerequisites for producing an Exception Plan.
Tip 7: Timing Matters An Exception Plan can be produced at any time during a stage when an exception occurs, not just at planned stage boundaries. This distinguishes it from normal Stage Plans.
Tip 8: Level of Detail Exception Plans should have the same level of detail as the plan they replace. If replacing a Stage Plan, use stage-level detail; if replacing a Project Plan, use project-level detail.
Common Exam Traps to Avoid
• Do not confuse Exception Plans with Contingency Plans (which are prepared in advance for anticipated risks) • Do not assume the Project Manager can approve their own Exception Plan • Do not forget that creating an Exception Plan requires the same planning effort as any other plan • Do not overlook that Exception Plans may require updated product descriptions and work packages
Summary
Produce Exception Plan is a vital activity that enables projects to recover from significant deviations. Success in exam questions requires understanding the triggers, authorization requirements, and the relationship between Exception Plans and other project documentation. Always consider the governance context and ensure you recognize that Exception Plans are a response to Project Board direction following an Exception Report.