Following discussions with the senior user, benefits tolerance in the business case has been set for the first year, with a minimum benefits tolerance specified. The project manager is authorizing the work package for the 'marketed courses' which will need to generate sales, and has set this benefits tolerance within the work package.
Is this an appropriate action, and why?
No, because benefits tolerance should only be set at the project-level within the business case. In PRINCE2 methodology, benefit tolerances are set in the business case to define the expected benefits of the project and the acceptable variation range. These tolerances serve as a project-level control measure, not typically established within individual work packages. Setting benefit tolerances within the work package goes against this structure and could lead to confusion and misalignment with the overall project objectives.
isnt it C?
A In this case, the project manager is authorizing the work package for the ‘marketed courses’, which are expected to generate sales. By setting a benefits tolerance within this work package, the project manager is defining the acceptable range of sales (benefits) that this work package should generate. This is an appropriate action because it helps to manage expectations and provides a clear target for the ‘marketed courses’ to achieve. It also allows for effective management by exception, as any deviation outside this tolerance would need to be escalated for decision-making
C. No, because benefit tolerances should only be set at the project level within the business case ? In PRINCE2, benefit tolerances are set in the business case to define the expected benefits of the project and the range of acceptable variation. These tolerances are a project-level control measure, and are not typically established within individual work packages.