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Course Overview
Read the Course Overview .

Project Quality, Change, and Progress


1. The Quality Theme

2. Quality Control Activities

3. The Quality Review

4. Quality Review Team Roles

5. Understanding the Change Theme

6. The Role of the Project Board in Change Control

7. Establishing and Maintaining Project Controls

8. The Issue and Change Control Procedure

9. Understanding the Progress Theme

10. Project Tolerance

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[Course title: PRINCE2® Project Management Overview (2017 Update). The presenter is Sue
Hopgood | MA (Hons), PGCE, Prince2, MSP, & APM Accredited Trainer. PRINCE2® is a registered
trade mark of AXELOS Ltd. Used under permission of AXELOS Ltd. All rights reserved.] When you
think about quality in a project, what comes to mind? Quality can be generally defined as the sum total
of the features and characteristics of a product that demonstrate that the product meets expectations
and needs. Most organizations thankfully have processes in place to manage the quality of the work
they produce. Imagine what might happen if they didn't. In this course, you'll learn about the
PRINCE2® Quality Theme, and why it's important. You'll also learn about the PRINCE2® Change and
Progress Themes, and the role they play in ensuring your project meets expectations and needs.

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Learning Objective
After completing this topic, you should be able to
distinguish between quality planning products

1.
[Topic title: The Quality Theme.] Quality within a project environment is particular to the project at
hand. Quality is the ability of the product or the service to meet the customer's stated needs. Quality
may also be thought of in terms of the characteristics or features that make the product or service fit
for its intended purpose.

The purpose of the quality theme is to define and implement the means by which the project will
create and verify products that so fit for that purpose. The quality theme defines the PRINCE2®
approach to ensuring that the project's products meet business expectations and enable the desired
benefits to be achieved. The quality theme also focuses on continuous improvement during the
project. Capturing and acting on lessons contributes to the PRINCE2® quality approach as it is a
means of achieving continuous improvement.

In the PRINCE2® project management methodology, there are number of quality planning products
you can use in quality planning activities. Firstly, the project will capture the customer quality
expectations. Customer quality expectations affect the entire project, driving product development
which in turn affects time and cost. Unfortunately, the customer's quality expectations, often quite
vague. For example, they might want a new IT system to be faster and easy to use. But that is difficult
for the project to deliver, unless they know what is fast enough or exactly what easy to use means.
This is what leads to the development of acceptance criteria. A prioritized and complete list of criteria
defined in measurable terms which an end product must possess in order to gain customer
acceptance. They are intended to reduce ambiguity by being specific and precise. They should also
be prioritized which is helpful if the project is ever forced to descope due to time or cost constraints. In
this example, a customer decides after consulting with the senior supplier. But the new IT systems
should process transactions five times faster than the old system. And that at least 90% of staff
trained to use the new system think that it is easy to use. These now become the accepted criteria.

The project will need to demonstrate that this criteria had been met before the customer will accept
the final product and project closure. Other examples of acceptance criteria are ease of support or
maintenance, appearance, major functions, developmental running costs, capacity, availability,
reliability, security, accuracy, and performance. The customer quality expectations and acceptance
criteria need to be negotiated and agreed very early in the starting of the project process and will be
recorded in the project product description. Consequently, acceptance criteria can be refined and
agreed upon during the initiating a project process, and review to the end of each management stage.

The quality management approach is another quality planning products. The quality management
approach describes how the quality management systems of participating organizations would be
applied to the project. And confirms an equality standards, procedures, techniques and tools that
would be used. It should also outline the quality management roles and responsibilities for the project
as well as quality communications requirements. Each project should also have a quality register. The
quality register summarizes all the quality management activities that are planned or have taken place
and is used to compare what was initially planned and agreed on with the quality activities that were

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actually performed. As a project progresses, the quality register is updated with summary information
pertaining to the actual results of quality activities.

There are two other quality planning products outlined in PRINCE2®, project product descriptions and
product descriptions. Now, I know it sounds a bit confusing as they are very similar in name, but in
fact, they are two entirely different items. The project product description is a general product
overview, created in the starting of a project process. That outlines of the overall purpose of the
project product, its composition, customers quality expectations, acceptance criteria, method and
responsibilities and project level quality tolerances. There is only one project product description
created. It is also used during the closing a project process to verify that the project has delivered
what was expected and that acceptance criteria have been met. Alternatively, product descriptions
govern the development of individual products, and desktops current review and approval. There will
be many product descriptions created. Product descriptions are not optional, and the project manager
should create them for all the project's products once detailed planning starts. Each product
description should include purpose section that clearly states who needs the product why they need it
and what it will do. In addition to the purpose, the product description should include quality criteria,
quality tolerances, quality methods, quality skills required and quality responsibilities. These define the
quality controls that must be applied during product development, review and approval of the
completed product.

One of the benefits of PRINCE2® is that it can be tailored for any project in any environment
depending on the needs of the project. But in order for your project to be considered a PRINCE2®
project, there are some minimum requirements for applying each theme set out for PRINCE2®.

The minimum requirements for the quality theme include defining a quality management approach,
including quality control into shorts, and quality management roles in communication. Specifying
product quality criteria and product descriptions, maintaining adequate records of quality activities
including at a minimum of quality register, specifying customer project quality expectations and
acceptance criteria in a project product description. And using lessons to influence quality planning,
quality expectation definitions, and quality criteria.

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Learning Objective
After completing this topic, you should be able to
recognize quality control activities

1.
[Topic title: Quality Control Activities.] The quality control function is used to carry out the quality
methods described in the quality management approach. The purpose of quality control is to provide
operational techniques and activities to those involved in the project in order to ensure quality
standards are adhered to throughout the project. The project manager is ultimately responsible for
controlling quality in PRINCE2® projects and can do so through a number of quality control activities.

The first quality control activity is the quality review technique. Quality reviews are inspections of the
product to determine whether they meet their respective quality criteria. In other words, this is testing
the product. The reviews have to decide does it pass the test. If not, what needs to be done to make it
meet the quality criteria next time we test it? This will be overseen by the team managers and they will
ensure that the quality register is updated with the result of the test.

Another quality control activity project managers perform is maintaining quality and approval records.
Once each product has been successfully tested, an approval will check that the tests were carried
out properly, and then document their formal approval. These quality and approval records contain the
evidence that the planned quality activities are being carried out, and therefore should be maintained
regularly. Obtaining acceptance of the project product by the customer is an activity that the project
manager performs at project closure. Since quality is the ability of the product or the service to meet
the customer's stated needs, gaining customer acceptance of the project product. Which really means
the customer's stated needs have been met, is crucial.

Another important activity in quality control is identifying ways of eliminating causes of error. Projects
will inevitably have quality issues from time to time. And a critical aspect of managing those issues
when they occur is the ability to identify methods to stop the errors from occurring again. An example
would be modifying or improving a process to address a gap that exists.

One other quality control activity that will affect a project is quality assurance. Quality assurance is a
function within an organization that creates and maintains the quality management system. And
monitors its application across all the projects, programs, and other activities, including the day-to-day
operations. This function is sometimes called internal audit or compliance and can audit the project
often without warning. It would check that the quality management system is being used properly and
that the project is effective in producing an end product that meets both quality and customer
expectations. Quality assurance therefore, gives the project's external stakeholders confidence that
the quality requirements can be fulfilled. Quality assurance should not be confused with project
assurance. Project assurance is a PRINCE2® project management team role concerned with
assuring that quality standards are met. Unlike the quality assurance function which is at the
organization level, project assurance operates at project level and gives the project board confidence
that the quality requirements can be fulfilled.

In summary, there are several activities that project managers can use to control quality in a project.
They include the quality review technique, maintaining quality and approval records, obtaining

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customer acceptance of products, identifying ways of eliminating causes of errors and quality
assurance.

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Learning Objective
After completing this topic, you should be able to
identify the characteristics and purpose of the quality review

1.
[Topic title: The Quality Review.] A fundamental aspect to project success is that the quality expected
for the final product is the quality delivered. And the quality review technique is a method that can be
used to help check and review project quality.

Quality reviews are performed by objective reviewers. Individuals with a vested interest in the product
being reviewed, but who aren't involved in producing it. Because they haven't been personally
involved in the product's development, they're more likely to be objective.

The quality review technique has four objectives. The first objective is to determine whether the
product conforms to its quality criteria. Another objective is to involve key interested parties in the
process of confirming whether the product has met quality requirements while providing wider
acceptance of the product. The third objective is to provide a formal process for determining whether
the product is complete and ready for approval. And the final objective of the quality review technique
is to baseline the product for change control purposes.

In summary, PRINCE2® provides the quality review technique to help check and review quality as
part of applying the quality theme. The objectives of the quality review technique are to determine if
the product conforms to its acceptance criteria. To involve interested parties in the process of
confirming the product has met quality requirements. To provide a formal process for determining if
the product is complete and ready for approval. And to baseline the product for change control
purposes.

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Learning Objective
After completing this topic, you should be able to
distinguish between the four roles involved in the quality review

1.
[Topic title: Quality Review Team Roles.] The quality review technique is a method that can be used to
help check and review the quality of products during a project. So who performs the quality review?

There are four distinct roles involved in the quality review. They are the chair, the presenter, the
reviewer, and the administrator. The first role involved in the quality review, the chair, oversees the
quality review and is responsible for the overall conduct of the review. The major responsibilities of the
chair include planning the quality review meeting, chairing the quality review meeting, and following up
with members of the project management team. Other responsibilities of the chair include making sure
the product is ready to be reviewed. And that the meeting space, date, time, duration, and attendees
are set. The chair must also collect the question list from the reviewers, and set the agenda for the
meeting. The administrator will typically help the chair perform these administrative tasks, but they
remain the responsibilities of the chair. As the chair of the review meeting, the chair must keep the
meeting on task to identify defects in the product being reviewed. The chair leads the reviewers to
reach agreement on the actions and results required to ensure the product meets its quality criteria.
And finally, with the input of the reviewers, the chair determines the result of the quality review.

After the review meeting, the chair informs the project manager and team managers that the status of
the quality review. This may include establishing exception procedures when defects cannot be
resolved quickly, and raising project issues for unresolved defects, or defects identified in other
products. Once all the defects are resolved, the chair provides final review sign-off and updates
relevant quality records.

Another role in the quality review team is the presenter. The presenter introduces the product for
review and represents the producers of the product. The presenter's main function is to facilitate the
review by providing information about the products, including confirming whether the product is ready
for quality review. Providing reviewers a copy of the product description and the products. Confirming
review details and assessing question lists. The presenter is also responsible for resolving the
identified defects, including providing any clarifying details to the project team. Finally, the presenter
needs to get the follow-up action list signed off by the chair indicating that the review for the product is
complete.

The reviewer is the third quality review team role. The primary responsibility of the reviewer is to
review the product against the quality criteria. Reviewers note any product defects and questions they
have. And it's also the responsibility of reviewers to make sure the presenter understands any defects
they identify or questions they ask, and that issues are resolved appropriately. Reviewers are also
responsible for signing off on any items on the follow-up action list that they have been assigned to.
They are responsible for checking that the appropriate corrective action was taken.

The final quality of your team role is that of administrator. The primary role of the administrator is to
help the chair fulfill their responsibilities and to record the results and actions. The administrator's
responsibilities includes helping the chair with administrative tasks. Taking notes of agreed follow-up

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actions. And recording the details of who will implement the corrective action and who will check that
corrective actions were taken.

In summary, the four roles in the quality review team are, chair, presenter, reviewer, and administrator.
The chair administers the quality review. The presenter is the person or representative of the team
who produced the product. The reviewer reviews the product against the quality criteria established
for it. The administrator helps the chair fulfill their responsibilities.

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Learning Objective
After completing this topic, you should be able to
identify the purpose of the change theme

1.
[Topic title: Understanding the Change Theme.] Within any project, change will happen. However,
controlling change keeps a project from unraveling before the project manager's eyes. The
PRINCE2® methodology incorporates the change theme to ensure better project management. The
purpose of the change theme is to identify, assess, and control any potential and approved changes to
the baseline.

The PRINCE2® methodology uses change control to log all project issues and assess them
accordingly. Project issues can be requests, or queries, suggestions, advice about risks, reported
problems or changes to the project environment. Logging project issues ensures decisions are made
on what action to take. Whether to make changes and how those changes may affect the timeline,
budget or project specifications. Capturing and logging project issues during change control involves
logging items in the issue register. Accessing and categorizing the issues, suggesting possible
corrective actions, documenting the assessment and suggestions, and continuing the review of the
issue register. The change theme plays a role in most PRINCE2® processes including the directing a
project process. However, the bulk of capturing and examining project issues and taking corrective
action. Happens during the controlling stage process.

One of the benefits of PRINCE2® is that it can be tailored for any project and any environment
depending on the needs of the project. But in order for your project to be considered a PRINCE2®
project, there are some minimum requirements for applying each theme set out for PRINCE2®. For
the change theme, the first minimum requirement is to develop a change-control approach. Your
change control approach should at a minimum outline how issues will be identified and managed.
Assessment criteria issues such as impacts on the business justification and relevant change
management roles and responsibilities.

Another minimum requirement of compliance with the PRINCE2® change theme for project is to
develop and maintain an issue register. In which you record identified issues as well as any issue
analysis, management and review decisions. You must also ensure that all project issues are
identified, assessed, managed and reviewed throughout the entire project life cycle.

And finally, you must apply any relevant lessons to issue identification and management activities. At
a minimum, change theme related products that must be produced for PRINCE2® projects are the
change control approach and the issue register.

In summary, the change theme in the PRINCE2® methodology establishes better project
management. It identifies, assesses, and controls any potential and approved changes to the project
baselines. That is, it records all project issues. Like requests, queries, advice about risks, observed
problems, or changes to the project environment, and it ensures appropriate decisions are made. In
order for your project to adequately comply with the PRINCE2® change theme it must meet minimum
requirements.

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Learning Objective
After completing this topic, you should be able to
identify the purpose and responsibilities of the project board in change control

1.
[Topic title: The Role of the Project Board in Change Control.] The project board plays a key role in
change control, with three key responsibilities.

The first is determining authority levels. Before a project begins, the project board is responsible for
determining authority levels by deciding at what level change control will be managed. Project board
members may choose to make every decision to do a change themselves. Or the project board may
decide that only major decisions will be brought to them specifically. A complex project that has the
potential for a variety of changes may cause the project board to consider if they have the time to
review every request for change. At such times, the project board delegates authority to an
appropriate individual groups, known as a change authority. The project board can set the authority
levels such that the change authority may authorize changes to a certain degree. In turn, any changes
above that threshold will have to be approved by the project board.

The project board is also responsible for deciding how changes will be funded when they do come
about in a project. An allocated change budget can be arranged for just that reason.

The project board has the additional responsibility of deciding to what extent the change authority will
use the change budget and whether changes to the scope, time, or cost of the project must be
elevated to corporate or program management for a decision.

In summary, the project board has three main responsibilities in change control. Before project
commencement, the project board determines the level of authority at which change control will be
maintained. They may be involved only in major decisions or may delegate to a change authority.
They are also responsible for change funding decisions and escalations to a higher level if required.

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Learning Objective
After completing this topic, you should be able to
distinguish between products used to establish and maintain project controls

1.
[Topic title: Establishing and Maintaining Project Controls.] The initiating a project process defines and
establishes the documents that we use during the project to manage and control issues and changes.
During the managing a stage boundary process, near the end of each managing stage, these
documents are reviewed and updated when necessary.

There are six key products used to establish and maintain project controls. This change control
approach is a key component of effectively establishing and maintaining project controls. It should
outline the relationships between products and how product baselines will be maintained throughout
the project. It is essential to have these items documented for effective issue and change control.

The project can also use configuration item records. Configuration item is any entity that the project
needs to track or control. It can be a product, component of a product, or even a set of products
grouped together to be controlled as a release. A configuration item record is created for each item
that needs to be controlled. And can describe information such as the status, version and variant of
each configuration item with any details of important relationships between the items. This information
is usually held in a spreadsheet or a database.

The third effective product for establishing and maintaining project controls is the product status
account. This is a report of the status of products being tracked via the configuration item records. It
could be as simple as a dated printout of the configuration item record spreadsheets. The product's
status account provides information about the status of the products within various defined limits. The
report could cover the entire project by simply printing out the entire spreadsheet. At a particular stage
wherever the project, or even the history of a single product by using a filter or query. It is particularly
useful for tracking product version numbers.

The remaining three products that can be used to establish and maintain project controls are the daily
log, issue register, and issue report. The daily log is used to record problems and concerns that can
be handled by the project manager informally. If an issue needs more formal treatment it can be later
transferred to the issue register. Acting as the project diary, the daily log can also be used to record
required actions or significant events not caught by other PRINCE2® registers and logs. It is not a
usually shared with any other member of the project management team. In practice, the project
manager's e-mail often acts as the daily log.

The issue register's purpose is to capture and maintain information on all of the issues that are being
managed formally. The project manager should mount the issue register on a regular basis and
ensure it's updated as needed throughout the project life cycle.

And issue reports, which are only created for certain issues when the issue register does not contain
sufficient information to make a decision. It might contain the issue description, impact assessment,
and recommendations for a request for change and/or specification, a problem, or a concern. This is
an optional management product.

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In summary, a change control approach is used for effective issue and change control. It provides
information on product relationships and manages product baselines. In addition to the change control
approach, configuration item records, the product's status account, daily log, issue register, and issue
report are also products you use to establish and maintain project controls.

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Learning Objective
After completing this topic, you should be able to
sequence the five steps of the issue and change control procedure

1.
[Topic title: The Issue and Change Control Procedure.] PRINCE2® offers an effective technique for
managing change throughout a project, known as the Issue and Change Control Procedure. This is a
five step process with the following steps, capture, assess, propose, decide, and implement.

Step one of the issue and change control procedure is to capture. The individual who identifies the
issue, authors relevant information about the issue, and forwards it to the project manager. The
project manager then does an initial assessment of the issue, assigns it an initial severity and priority,
and logs it in the issue register if it should be formally managed. Once prioritized, feedback is given to
the author. Typically, this involves indicating that the issue has been received and entered into the
project's issue register. If there's any question about the issue, it's important to direct meet to its
author for further explanation. It is critical that the issue is properly understood. It's important to note
that if this issue is something that be dealt with immediately, it does not need formal management.
Then the project manager at this point can direct the appropriate action to take to resolve the issue to
the author and or another relevant individual group. The issue will then be recorded in the daily log.

Step two of the issue and change control procedure is to assess. To effectively manage the issue or
change, the project team needs to be aware of the potential impact it will have on other unresolved
project issues and the project itself. The project manager may create an issue report at this point, and
use it to get advice from the project board, project assurance, or the change authority.

The third step of the issue and change control procedure is propose. Having gained the full
understanding of the impact to the issue, the next step is to consider what type of options for
responding to it in proposing the recommended course of action. Consideration should be given as to
the impact each of the options will have on the project's time, cost, quality, scope, benefit, and risk
performance targets. There must be a balance between the advantage gained by implementing the
option and the time cost and risk of implementing it.

Step four of the issue and change control procedure is to decide. Just who makes the decision will
depend on the change authority limits and tolerances agreed by the project board. If the issue is a
request for change, and within the project manager delegate to change authority limits, they can make
the decision. If this is outside their limits, then the project manager will have to escalate the decision to
the project board, where it's delegated to change authority. Also if the design actions to deal with off
specification problem or concern, but take the stage or project beyond its stage or project tolerance,
then an exception report will need to be created to report the tolerance breach, and ask the project
board for a decision.

The fifth and final step of the issue and change control procedure is to implement. With the first four
steps complete, a decision can be implemented. Once again, this will depend on the issue and our
specification or a request for change.

In summary, the five steps of the PRINCE2® issue and change control procedure offer effective
change management in a project. In the first step, capture, you sign a priority and severity to the issue

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and locates an issue register. In the second step, assess, you analyze the impact of the issue by
gathering all information about about it. In the third step, propose, you analyze all courses of action
and recommend the one that best maintains a balance between the advantages and impact of the
change. In the fourth step, decide, the project manager makes a decision on how to deal with the
issue, or escalates the decision to the project board or their delegated change authority. And finally, in
the last step, implement, the decision and chosen course of action is implemented, and the issue is
resolved.

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Learning Objective
After completing this topic, you should be able to
recognize the purpose of the progress theme

1.
[Topic title: Understanding the Progress Theme.] Progress can be defined as the measurement of
achievement in relation to the objectives of the plan.

The purpose of the progress theme in PRINCE2® is "to establish mechanisms used to monitor and
compare actual achievements against those planned. Provide a forecast of the project objectives and
the project's continued viability, and control any unacceptable deviations." (Quoted text Source is
Managing Successful Projects with PRINCE2®. Copyright © AXELOS Limited 2017. Reproduced
under license from AXELOS. All rights reserved.) So why is that important? Well, the entire purpose of
a project is to meet the objectives set by corporate, program management, or the customer. So in
order to ensure things are on the right track, it's vital to track your project's progress as work continues
throughout the entire project life cycle. And it's equally important to control progress along the way, to
ensure that the project is viable and continues to be so.

PRINCE2® includes seven principles that must be upheld throughout all project management
activities in order to align with PRINCE2®. Four of those principles are especially relevant and
supported by the progress theme. The first two of those supported principles are manage by stages
and continued business justification. The manage by stages and continued business justification
principles are supported by the progress theme because they provide the mechanisms for monitoring
and control, enabling the critical assessment of ongoing project viability.

A third PRINCE2® principle supported by the progress theme is manage by exception. The manage
by exception principle specifies the tolerances for the project stage and work package objectives, in
order to establish limits of delegated authority. These tolerances define the amount of discretion that
each management level can exercise without the need to refer up to the next level for approval.

The fourth and final PRINCE2® principle supported by the progress theme is learn from experience.
Learning from experience entails actively seeking out lessons, recording them, and putting them into
action throughout the project. Lessons are often identified while reviewing project progress. Lessons
could include information about management or specialist processes. Products, techniques, or
procedures that either made a contribution to the project's achievements or caused a problem. These
include, for example, the performance of the project management team, the success of tailoring
PRINCE2® to the project, or the analysis of quality statistics and measurements.

One of the benefits of PRINCE2® is that it can be tailored for any project and any environment
depending on the needs of the project. But in order for your project to be considered a PRINCE2®
project, there are some minimum requirements for applying each theme set out for PRINCE2®.

The minimum requirements for the progress theme include defining an approach for controlling
progress in the project initiation documentation, or PID. Managing by stages, setting tolerances, and
managing tolerances by exception only, reviewing the business justification in instances where
exceptions are raised, and learning lessons.

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In conjunction with minimum requirements, there are also some mandatory products required for your
project in order to apply the progress theme in alignment with the PRINCE2® methodology. Products
required for baselining progress control include the project plan, stage plan, exception plan, and work
package. Products required for reviewing progress include the issue register, risk register, quality
register, and the product status account. The lessons log is a product required for capturing and
reporting lessons. And finally, required products for reporting progress include checkpoint and
highlight reports, and stage reports and end project reports.

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Learning Objective
After completing this topic, you should be able to
identify the six types of tolerance in the PRINCE2® methodology

1.
[Topic title: Project Tolerance.] Deviation or change within the project can be evident in any number of
elements. Quality, time, cost, or resources. The project is live and changes with natural fluctuations
brought on by internal and external factors. Variance in a project plan is normal, and is to be expected.
Once variance reaches a certain level though, it cannot be ignored and must be addressed. Tolerance
in the project is the level at which variance must be examined and approved or changes made. By
setting tolerances within a project, controls are maintained. The purpose of tolerance is to allow for
certain deviations in the plan without requiring constant reports and approvals.

There are six types of tolerances defined in the PRINCE2® methodology. Cost, time, scope, risk,
quality, and benefits. Cost tolerance is the amount that the project or stage may go under or over
budget. For example, a stage may have a target budget of $50,000, but they're allowed to overspend
by 10% or under spend by 15%. Cost tolerance maybe expressed as an actual amount of money, as
well as a percentage.

Time tolerance is the flexibility around the target deadline date. For example, you may have a project
completion date as seven months. Plus or minus one month tolerance. If you complete the project in
less than six months or after eight months, the project is outside its established time tolerance. Time
tolerance is best stated in days, weeks, or months rather than in percentages.

You must also determine scope tolerance. First, you must distinguish the projects essential elements
from the desirable elements that can be completed later. In other words, you should identify the
project must-haves versus the nice to haves. An example would be a website that must have a
homepage, product pages, a contact us page, and online purchasing capability. Nice to haves might
include a meet the team page and a company history page. This is particularly important if your
delivery teams are using an agile approach.

Risk tolerance is the degree to which the project can tolerate uncertainty. Risk can be expressed in a
number of different ways. It could be expressed in relation to one or more of the other tolerances. For
example, a project with a firm finish date but flexible budget is said to have a low risk tolerance in
terms of time but a moderately high risk tolerance in terms of cost. Some organizations might express
risk tolerance in terms of the severity and/or impact. For example, they could insist that the project
escalate any red or high impact risks for them to consider. Others might have zero tolerance for
certain types of risks such as those that could result in loss of trading or the risk of losing commercial
data. These would have to be escalated immediately to the corporate level as soon as they were
discovered.

Quality tolerance is the degree to which you're able to sacrifice quality in order to meet other
constraints. In some cases, cost or time limitations may force quality tolerances such as in the case of
printing a newspaper. A strict print deadline will force editorial quality tolerances as editing can only be
done up to a certain time before printing must begin.

The business justification for a project is based on the expected benefits that will come from

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undertaking the project. Target benefits are expressed in terms of a range, such as this project
expects to achieve minimum cost savings of 5% per branch with an average of 7% across all
branches.

In summary, tolerances in the project set boundaries and seek appropriate project management level
approval when those tolerances are reached. There are six types of tolerances defined in the
PRINCE2® methodology, cost, time, scope, risk, quality, and benefits.

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