Based on lessons from previous projects that used the ABC Company standard development model, the project board has set low cost and time tolerances for stage 2. As a result, the project manager plans to set very low tolerances for time and cost for all work packages to be carried out during stage 2.
Is this an appropriate application of the 'manage by exception' principle, and why?
Setting appropriate tolerances for work packages helps ensure that the stage remains within its overall tolerances for time and cost. This aligns with the 'manage by exception' principle, which is a key concept in PRINCE2 project management, aiming to give clear boundaries within which the project can be managed efficiently. By setting these tolerances, the project manager can effectively delegate and monitor performance without unnecessary interference, ensuring the stage is controlled within its set limits.
Agreed with option B as the other 3 options are clearly incorrect.
B So, while each work package might have different requirements and complexities, setting appropriate tolerances for each one (as per option B) will help keep the overall stage within its set tolerances1. This aligns with the PRINCE2 principle of 'Manage by Exception’1, which aims to provide an efficient way of governing a project by defining clear tolerances for project objectives.