PRINCE2 7 Tolerances in planning
Various constraints, such as schedules and resources, drive many projects. For example, a project that must be completed by a specific date would be considered a schedule-driven project.
On the other hand, a project that must be delivered with resources beyond those authorized in the project initiation documentation would be considered a resource-driven project.
A crucial element of effective planning is understanding which constraints take precedence, selecting which approaches to use and the appropriate tolerances for control.
PRINCE2 includes tolerances for various project constraints, such as benefits, time, cost, quality, scope, risks, and sustainability. Each of these tolerances is set to manage the constraints within acceptable limits, ensuring the project remains on track and delivers the desired outcomes.
The PRINCE2 technique for planning is a collaborative process that involves the project management team in setting tolerances. This approach balances the need for the project board to maintain effective control while enabling the project manager or team manager to achieve efficient delivery, fostering a sense of shared responsibility.
PRINCE2 time tolerance in planning
The permissible deviation in a plan’s time that is allowed before the deviation needs to be escalated to the next management level. If this tolerance is exceeded, it could indicate a potential risk to the project’s timeline and require higher-level intervention to promptly address the issue.
For instance, in a schedule-driven project, the plan’s time tolerance is often narrow, possibly set to zero. This indicates that delays would significantly jeopardize the project’s success, underscoring the importance of timely execution and making the audience aware of the potential risks.
PRINCE2 cost tolerance in planning
A plan’s cost deviation is permissible before it needs to be escalated to the next management level.
The plan for a project that must be delivered within a fixed budget will have a narrow cost tolerance, possibly set to zero, indicating that there is no room for an increase in cost.
PRINCE2 scope tolerance in planning
The permissible deviation in a plan’s scope is allowed before it needs to be escalated to the next management level.
The plan for a project delivering a new product to an organization might specify some tolerance level for initial support and user training after acceptance. This is to ensure a smooth transition to the new business as usual.
How wide or narrow each tolerance is set for each level of plan improves the understanding of which constraints take precedence and how they should be incorporated into a plan.
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