2

“List the circumstances where you would base your project management approach on a model-based methodology”.

The circumstances around deciding which project methodology (project framework) to choose can depend on the complexity of the project not only in its functionalities they must provide but also the requirements they must meet. Constraints such as dependability, timing, resources, variability, corporate environment, project size, external influences and budget all influence the project during its lifecycle. A project management methodology should address the specific processes for project initiation, prioritisation, project planning, status reporting, issue/decision/change management, quality management and risk management. It should clearly define the fundamental elements of project management and how to deliver them but most importantly a sound methodology will enable the project team to tackle complex problems as they arise and have effective reporting and analysis. A methodology also ensures a consistent and clear approach within organisations. A project manager may use PRINCE2, PMBOK, Agile, Scrum and Waterfall or tailor a model to suit an organisations needs.

The value of project management comes from its application across the entire lifecycle. Some projects can be quite complex and to ensure the processes are coordinated properly and successfully a model based methodology is essential. It is likely without a robust methodology to follow, the project could be prone to fail but it is important to look at all the circumstances and complexities involved in a projects lifecycle to ensure the correct methodology is applied.

Below is a construction project which shows the complexities of Project Management and highlights just how important it is to have a methodology which can successfully coordinate all phases and processes.

3

“Briefly compare the two major project models (PMBOK and PRINCE2)”

PMBOK is a document of "what is", unlike PRINCE2 which is a "how to" document.

PRINCE2 provides guidance relating to the externalities of projects, that being governance and benefits, how to establish effective project governance structure and the use of the Business Case as the primary control over the life of the project where as PMBOK doesn’t. Another area where the two methods differ is PRINCE2’s need for role clarity, project assurance function, concepts around management stages, guidance to team managers (work packages and quality), product descriptions and tolerance around estimates.

PMBOK implies that the project management is the work of the project manager where as PRINCE2 project management is the process that organisations use to govern and deliver projects. PRINCE2 is principles based while PMBOK is a collection of tools and techniques, the project method being used should be tailored to suit the needs of each project. With PMBOK it is possible to start a project, find out the stakeholder’s requirements then deliver a solution that meets these requirements. With PRINCE2 requirements are captured in product descriptions, it states that if you don’t know what the requirement for the key products are, you shouldn’t start the project to deliver a solution.

Comparisons of Important Areas

PMBOK provides nine knowledge areas and PRINCE2 provides eight. One notable difference is in the area of risk, although both recognise risk PMBOK provides much more support with risk but it should be noted in Australia most organisations will conform to AS4360.

Knowledge areas

Both recognise scope, schedule, cost and quality are related but they are knowledge areas in PMBOK whereas PRINCE2 recognises them as integral aspects of planning and change control. The integration area differs in that PMBOK deals with all aspects of project management during integration and PRINCE2 only in start-up, initiation and planning process and by change control technique.

The human resource and communications knowledge area in PMBOK is covered by a single component in PRINCE2 called organisation and leadership. Procurement in PMBOK has no matching area in PRINCE2.

PRINCE2 recognises the business case as a component and also configuration management and its control group has a broader spectrum that those governing the

4

PRINCE2 has eight main processes and PMBOK only five.

Process Groups

The three techniques offered by PRINCE2 -product based planning, change control and quality review. The two latter are knowledge areas in PMBOK.

Techniques

PRINCE2 identifies five and PMBOK three main roles with the Project Manager in PMBOK carrying a lot more responsibility.

Roles and Responsibilities

PMBOK’s three major documents the project charter, scope statement and project management plan are very similar to PRINCE2’s project mandate, brief and project initiation document (PID) but PRINCE2 does recognise a standalone project management product that being the Business Case. The Business Case is the major difference between the methods and it highlights PRINCE2’s support of governance. It is updated at the end of each management stage and gives the Project Board the information it requires to terminate a project as early as possible.

Both are similar although it can be said PMBOK provides greater detail. A WBS is created in PMBOK to cover the entire project, reviewed and revised as needed where as PRINCE2’s concept is a planning horizon.

Planning

Project managers are well supported by PMBOK in its knowledge areas where as PRINCE2 provides various mechanisms for support. PMBOK doesn’t recognise team members but PRINCE2 does through the Work Package Concept.

Project Manager and Team Support

5

“Using a suitable project example from your experience or reading, illustrate how one model- of your selection- will benefit your project compared to the other model (i.e. the comparative strength of the chosen model for a specific project)”

PROJECT- Developing a new open cut mining operation in a remote environment.

Mining projects are subjected to high risks because of their size, uncertainty and high cost. The project manager and project team will manage this project using the PMBOK model.

The PMBOK model offers more support in the area of risk and it is vitally important that current and future risks are identified and analysed to reduce cost and time.

Due to the size and complexity of the project, a lot of work will be sub-contracted and its remote environment will see products purchased and brought into the area. PMBOK model offers Project Procurement Management as a knowledge area which is not covered by PRINCE2. Procurement management will be so important because during this project a large percentage of the project scope may be purchased from other companies.

6

References

Project Management Body of Knowledge (PMBOK GUIDE) Fourth Edition

PRINCE2 Revealed Colin Bentley

Comparing PRINCE2® with PMBOK® R. Max Wideman

A Comparison of PRINCE2 against PMBOK

http://www.tmr.qld.gov.au/Business-and-industry/OnQ-Project-Management-Framework.aspx

http://www.lifecyclestep.com/

http://www.prince2.com/

http://www.goalgroup.com.au/