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Out of 7 Principals in PRINCE2, principle to focus on product is very important from planning prospective. Based on focus on product principal Product based planning technique is used. The idea behind using Product based planning technique in PRINCE2 is to ensure that the scope of the work is known for a Stage or Sprint. This helps in proper decision making for the stage. With product based planning technique, products are required to be identified first, and only then are the activities, dependencies and resources required to deliver those products are identified.

There are various benefits of product-based planning technique:

1. Reduces risk of wrong product being scoped.

2. Ensures that products and the inter dependencies between them are clearly identified.

3. Avoids ‘scope creep’

4. Makes communication between project stakeholders clear and un-ambiguous.

5. Involvement of Users and stakeholders to increase acceptance of product.

6. Clear identification of external and internal products.

There are 4 steps in product based planning technique. They are as follows:

1. Write the Project Product Description

2. Create the product breakdown structure

3. Write the Product Descriptions

4. Create the product flow diagram

1. Write the Project Product Description

Project Product Description is for overall project’s output. It also includes the customer’s quality expectations, together with the acceptance criteria and acceptance methods for the project. Although the Senior User is responsible for specifying the project product, in practice the Project Product Description is often written by the Project Manager in consultation with the Senior User and Executive.

2. Create the product breakdown structure

The plan is broken down into its major products, which are then further broken down until an appropriate level of detail for the plan is reached. In short product breakdown structure is a hierarchy of all the products to be produced during a plan and stage. It helps to identify Internal & external products. It is recommended to involve whole team and stakeholders to create PBS which sets the product limits and feature clearly.

3. Write the Product Descriptions

Product Descriptions states each product’s purpose, composition, derivation and quality criteria as expected by customer or user or stakeholder. Product Descriptions should be written as soon as possible after the need for the product has been identified. Initially, PD’s may be just a product name but you get clarity and product becomes better understood PD’s will be refined and amended. Mainly the responsibility for writing Product Descriptions rests officially with the Project or Team Manager but sometimes you might as well involve representatives from those who will use the product in question and Subject Matter experts.

4. Create the product flow diagram

A product flow diagram identifies and defines the sequence in which the products of the plan will be developed. The product flow diagram also identifies dependencies & dependencies on any products outside the scope of the plan. Primarily project or team manager is responsible for the creation of the product flow diagram. But as per the need you can involve those who are to develop or contribute to the products

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