PRINCE2 – Foundation Exam Exam

What does the term "tolerance" refer to in PRINCE2?

1. The range of acceptable deviation from a plan

2. The budget allotted for changes

3. The project teams' performance expectations

4. The quality standards set for deliverables

The correct answer is: The range of acceptable deviation from a plan

In the context of PRINCE2, "tolerance" refers to the acceptable range of deviation from a plan. This concept is essential in project management, as it indicates the limits within which project performance can vary without requiring formal change control procedures. Tolerance encompasses various aspects of the project, such as time, cost, quality, and scope. For example, if a project has a tolerance of 10% on its budget, it can deviate up to 10% above or below the planned budget without necessitating a formal change request. This flexibility is vital for effectively managing projects, as it allows project managers to respond to minor issues that may arise during the project's execution without derailing the overall plan. The other options relate to important aspects of project management but do not capture the specific definition of "tolerance" in PRINCE2. The budget for changes involves a separate aspect of financial management. Performance expectations of the project team focus on human resource management and aligned responsibilities rather than variance from plans. Quality standards set for deliverables define the criteria for project output but do not speak to the deviations permitted in the project plan. Understanding the concept of tolerance is crucial for effective project control and maintaining the alignment between project objectives and outcomes.