PRINCE2 Project Management Methodology - Report Example

Running Head: PROJECT MANAGEMENT Name Course Instructor Date Table of Contents Table of Contents 2 1.0 PRINCE2 Project Management Methodology; an Overview 4 1.1 Technical Stages 5 1.1.1 Starting up a Project 5 1.1.2 Initiating a Project 5 1.1.3 Controlling a Stage 6 1.1.4 Managing Product Delivery 6 1.1.5 Managing Stage Boundaries 6 1.1.6 Closing a Project 6 1.1.7 Planning 7 1.1.8 Directing a Project 7 1.2 Management Stages 7 1.2.1 Business case 7 1.2.2 Organization 7 1.2.3 Plans 8 1.2.4 Controls 8 1.2.5 Management risk 8 1.2.6 Quality in a project environment 8 1.2.7 Configuration management 9 1.2.8 Change control 9 2.0 Comparison of Prince2 compared with PMBOK 9 2.1 Project Major Processes and Life Cycle 9 2.2 Management Responsibilities and Levels 10 2.3 Authority Documentation 11 3.0 Engineering Management Project Analysis 11 3.1 Introduction 11 3.2 Project strategy and business case 12 3.3 Project Planning/Preparation 12 3.4 Starting up the project 13 3.5 Managing Product Delivery 13 3.6 Project failures 14 3.7 Directing a Project 14 3.8 Communication Management 14 3.9 Change Management 15 References 16 1.0 PRINCE2 Project Management Methodology; an Overview PRINCE2 is a project management methodology offering the best practice guidance used in controlled environments for management, control and organization of a project. There are key features present in PRINCE2 including; a focus on business case for every project and a defined organization structure comprising of project management team. It offers a product-based planning approach, division of a project into controllable and manageable stages and flexibility applicable at each level of a project. According to Sargeant, et al (2010, 12), an overview of PRINCE2 shows 6 major technical stages or step-by-step processes from; starting up a project, initiating a project, controlling a stage, managing product delivery, managing stage boundaries, closing a project with another two important stages; planning and directing a project running through the other six. It further present eight management stages or processes applicable at different stages of a project including; business case, organization, plans, controls, management risk, quality in a project environment, configuration management and change control. PRINCE2 Methodology: Technical stages (In the box) and Management Stages (Outer circle). (Adopted from Hinde, 2012).  1.1 Technical Stages 1.1.1 Starting up a Project The stage involves the creation of project management team, defining the project’s objectives, identifying how different solution will be provided and confirming availability of a Business Case and risks. A plan of work required to prepare project plans and project controls is set. At this stage, it gets management approval for commencement of the project. 1.1.2 Initiating a Project There are a number of steps involved in the stage where the business case is expanded and risks re-assessed. The stage identifies how project products will be controlled and sets up the necessary controls for a project. After approval, the right quality of product is determined and a project plan. 1.1.3 Controlling a Stage In the stage, project objectives are agreed upon, plan approved to generate contract and approval of the contract. Each stage of the project is approved with decisions made on major problems. It involves continuous information to the senior management, confirmation of correct closure of a project and project organization. 1.1.4 Managing Product Delivery The stage requires agreement about work with project manager. Team’s work is planned with a supervisor overseeing the team’s work. The stage reports the quality and progress and allows getting approval for completed products. 1.1.5 Managing Stage Boundaries The current stage in a project undergoes complete performance statistics to allow planning for the next stage. An exceptional plan is produced for the next stage as well as updating the project plan. The stage also allows a check on the Business Case or risks changes. The report is prepared for the Project Board. 1.1.6 Closing a Project The stage brings a project to conclusion after checking whether all the products are delivered and approved by project customer. Any later actions are documented which promote indicating the maintenance and support groups. A plan is availed to show when and how achievement will be assessed and expected benefits. A final report of the project performance is compiled. 1.1.7 Planning Planning span around the project with a number of activities is carried out. It involves the choice of planning tools, estimation methods, identifying the products, identifying product dependencies and generating activities. It involves effort estimation, creating schedules, assessing risks and coming up with a documented plan narrative in almost all the stages of a project. 1.1.8 Directing a Project There are quite a number of activities carried out to direct a project depending on the stage of a project. These activities pertains to work authorization, getting the progress information, documenting the issues, analyzing their impacts and reviewing progress, quality of work, issues and risk status. Reporting is ensured to Project Board and corrective actions taken. 1.2 Management Stages 1.2.1 Business case A Business Case describes and justifies the reasons for undertaking a project. It is based on estimated costs, risks, expected business benefits and savings. It covers an entire scope of the areas affected by change proposed in the project. It is an important set of information for a project that drives decision-making processes and aligns project’s progress to business objectives and organizational standards. 1.2.2 Organization Organization is created through a customer/supplier relationship. The customer specifies the desirable outcome, make use of outcome and pay for the project while the supplier provides resources, skills and create the outcome. An organization structure determines the direction, management, control and communication to map out the elements of a project. A flexible organization comprise of corporate management, project directors, project manager and teams. 1.2.3 Plans Project have effective planning that identifies whether targets are achievable, the resources needed to achieve targets and within timeframe and activities needed for ensuring quality on project products. Planning eliminate the need for ad hoc decisions, promote focus for the management team, provide processes for measuring progress, communication, commitment of various contributors and recipients and provides personal targets. 1.2.4 Controls Control promotes project decision-making which is central to project management. It ensures that, the required products are produced and meet defined quality criteria. It ensures that the project is carried as per the schedule; according to its resource and cost plans and that it remain viable against the Business Case. 1.2.5 Management risk For project to succeed, it must access to reliable and up-to-date information about risks, promote decisions supported by risk analysis and evaluation, and ensure processes to monitor risks and right control to deal with risk. 1.2.6 Quality in a project environment Quality ensure that project products are fit for purpose and satisfy stated needs through quality system, assurance, planning and control. Quality is promoted by having an n acceptance criteria set for products and customer’s quality expectations in place. 1.2.7 Configuration management The status, ownership and relation between products are specified by configuration management. It ensures that the project has up-to-date records, control changes to products and audits records for products. 1.2.8 Change control Change is a requirement to carefully control anything that can ruin the project. It may involve noting the legislative, corporate, new customer, new supplier and unexpected changes. An anticipated or occurring problem can be dealt with through changes. 2.0 Comparison of Prince2 compared with PMBOK 2.1 Project Major Processes and Life Cycle PRINCE2 and PMBOK have a different approaches according to materials presented. It is hard to compare them direct as they seem to serve different purposes. PMBOK is presented as a material for teaching; with knowledge areas and processes as it deals with subject content for each of its knowledge area. PMBOK does not dictate the process or techniques to apply for a project but lays the process in a general way, link them together and showing tools that can be invoked (Siegelaub 2004, 2). PMBOK has twelve chapters with function-based knowledge areas, illustrating project management processes with descriptions of inputs, tools, techniques and outputs. On the other hand, PRINCE2 is effective in providing guidance to run a particular project. However, it must be tailored for a project occasion and scaled for different needs and sizes of a project (Maylor, 2008). Project cycle is phased out in six stagers with two continuous processes running through them. There are quite a number of sub processes presented in an easy-to-follow manner. For each stage there are checklists and detailed process diagrams with tips and hints (Wideman 2002, 2). Quite a number of differences can be noted between PRINCE2 and PMBOK based on their philosophies. PRINCE2 creates stages and makes the use of every stage mandatory though flexible according to management requirements. It differentiates two major stages; the technical and management stages. The technical stages comprise of six processes with a particular set of specialized skills. The management stages focus on commitment of resources as well as spending authority (Siegelaub 2004, 6). PRINCE2 present stages with divisions of implementing making it a peculiar implementation methodology applicable in some projects like construction. It covers the implementation phase of a product lifespan. Contracting and procurement is covered separately as part of contract. PMBOK define a project in phases with collection of related project activities for completion of a deliverable. It is presented as part of an overall project management and highly reflecting customer-supplier relationship (Wideman 2002, 3). 2.2 Management Responsibilities and Levels PRINCE2 identifies four levels of management including corporate/programme management, Directing a project (Project Board), Managing a project (Project Manager) and Managing Product Delivery (team-level management connecting the corporate business and interests closely to project management. The project manager is given authority over products and constrained as per agreements with the Project Board. PMBOK demonstrate the interesting responsibility of a project manager. It is presented as an important role for the entire project; directing, controlling, administering and regulating the project. He is also an individual ultimately responsible to end user (Wideman 2002, 4). 2.3 Authority Documentation PRINCE2 emphasizes on documentation with progressive governing documents in series of processes. Project Mandate and Business Case should at least be available before starting a project. The Business Case is given prominence in that its inexistence should halt the progress of a project. As a dynamic document, it has to be updated throughout to reflect changing conditions in the project (Siegelaub 2004, 7). The reasons, benefits, time, costs and risks should be considered. PMBOK does not recognize project brief and business case (Wideman 2002, 4). Overall, PMBOK is a useful methodology for project management though it does not precisely show how it can be taken into practice. PRINCE2 offer the best approach in theory and practice. 3.0 Engineering Management Project Analysis 3.1 Introduction In consideration of an Engineering Project Management, The Walsham hotel case is typical example for analysis. The upscale hotel in southern United States was targeting to meet its clientele high expectations. Walsham renovation and property update adheres to its reputation with redecoration scheduled on a 5-year cycle and thus, a $4 million for room renovation was expected to be rolled over. The Director of Rooms suggested for installation of a new but expensive technology to the Renovation Functionality Committee. As a popular hotel for conference, planners and meeting organizers, the project aimed at installing refrigerated mini-bars in 400 guest rooms within the four-story building. Project management fell on the Director of Rooms, Darren Mathews working closely with the supplier from Mechatronic Group, Roscoe Timmons. 3.2 Project strategy and business case The project demonstrates overall project business requirements. A high-level project proposal of business case validated the approach to be used for installation of the new refrigerated mini-bars. Installing mini-bars in the rooms would increase profits for profitable mini-bar department which closed at 11 pm and thus, it would operate around the clock with guest having access to drinks in their room 24/7. The refrigeration units that were in place for 10 years would be replaced by a KN346 unit with interesting electronic features like sensing technology, peer-to-peer networking and permit remote real-time access to mini-bar inventory. Consequently, it would drive down labour costs, improve customer services, allow personalized mini-bar stocking and reduce disagreements at check-point by registering guests’ expenses (Kerzner, 2009). 3.3 Project Planning/Preparation A project have to involve key stakeholders, project team members already identified for establishing and starting the project. The Director of Rooms assumed the responsibility of internal project manager and was to communicate the General Manager, William Houseman. He was also to work closely with Walsham directors of IT. A high-level work-breakdown structure (WBS) was completed with details of every phase of the project. Renovation activities were approved and were to take approximately a year from ordering for units, manufacturing, shipping and installation. However, there was no document that revealed how the project goals were to be achieved and whether the required timeline and budget would be met. No members were recruited internally for the project and formal project documents did not exist. The sales manager from Mechatronic Group was to communicate with the Director of Rooms as a supplier to deal with the mini-bars and IT. The project was scheduled 36 week before delivery and 12-16 weeks in the shipping terms. 3.4 Starting up the project Mathew took trail tests with Roscoe before the units were ordered. They also took close measurements for dimensions of units and trays. He also forwarded a PDF with high-detailed plan for a custom case before signing off the final design. The system was ordered in October and was to be assembled in Germany using electronics from Canada and parts from China. The units would arrive by 1 June. The cost for each refrigeration unit was set at $800 per room with a total $600,000 worth mini-bar system to be fitted. 3.5 Managing Product Delivery Renovation drew closer and Walsham managers held meetings with contractors and vendors. Russ was an experienced project manager with an impressive tenure with Mechatronic. However, by the day of installation, the tray had 1.5 inch wide attachments on its side and failed to fit the customer cabinet and Russ claimed that Ruscoe may have failed to tell him about it. Russ added more plastic attachment that disfigured the wireless tray. The sensing technology would not accurately and consistently register purchase and some products would be sold in specially made glass jar which GM had pushed the Director to eliminate for safety reasons. The case cabinets would arrive in three months time which Russ confirmed will be worked on once all installation personnel from Mechatronic arrived. After the arrival, the initial test of ZigBee communication network was not reassuring as the unit would not communicate over a wireless network from one floor to another. 3.6 Project failures There are a number of stages that were not considered in Walsham mini-bar project that led to failure of a very expensive project. First, phase management is an important part of a project and ensures that each phase is adequately satisfying before starting the next. The project manager, Russ was not fully aware of the deliverables sizes which were seen as inappropriate by Mathews, the stakeholder in charge of Walsham. It is noted that deliverables and the sign-off requirements were identified in Project Initiation Document but it was not ascertained whether the assembler got the details. 3.7 Directing a Project A high-level planning was done for the whole project indicating the schedules, phases and start of each phase. The project had set right people, resources, supporting tools and methodologies in place from customer and supplier’s sides (Highsmith 2009, 9). However, the supplier did not involve the right person with technical skills to note the measurements of the units as Roscoe was a sales representative who communicated to Russ, the installation manager. 3.8 Communication Management Communication was highly hampered by two major issues. As much as Walsham was clear about the person responsible for communication to internal members and the supplier, the supplier did not assign a single person to ensure all details from the beginning were set in place. Inadequate communication is a major problem as customer and supplier were far apart and could not communicate well (Burke 2003). 3.9 Change Management Change can be for detriment or for the good of the project. Change of personnel should be taken with care to avoid disjuncture and problems. Mechatronic changed personnel and assigned Russ Foss as an installation manager who was to engage with Darren Mathews. References Highsmith, J 2009, Agile project management: creating innovative products. Pearson Education. Hinde, D. (2012). PRINCE2 study guide. Chichester: Wiley. Sargeant, R., et al 2010, Creating value in project management using PRINCE2. Siegelaub, J. M 2004, January, How PRINCE2 can complement PMBOK and your PMP. In PMI Global Congress Proceedings, Anaheim, California. Wideman, R. M 2002, Comparing PRINCE2® with PMBoK®. http://www. pmforum. org/library/papers/Prince2vsGuide3easrd1. htm. Acessado em, 1(04), 2004. Burke, R, 2003, Project management: planning and control techniques. Chichester: John Wiley & Sons Kerzner, H, 2009, Project management – a systems approach to planning, scheduling and controlling, 10th edn, New York: John Wiley & Sons Maylor, H, 2008, Project Management 3rd ed. London: Prentice Hall Nicholas, J, 2004, Project management for business and engineering: principles and practice, 2nd edn, Burlington: Elsevier Butterworth-Heinemann Read More