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Project Management & Agile · Intermediate

Tolerance

The permissible deviation above and below a plan's target before escalation is needed.

Definition

PRINCE2 7 defines tolerances for time, cost, scope, quality, benefits, risk, and sustainability. Project tolerances are set by the business layer, stage tolerances by the Project Board, and work package tolerances by the Project Manager.

Example

Stage cost tolerance of plus or minus 5% on a $200k budget.

Exam tip

Know who sets each level of tolerance.

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