Ace the PRINCE2 Foundation Blast 2025 – Unleash Your Project Power!

In PRINCE2, 'tolerance' refers to the allowable deviation from the plan for key project parameters such as cost, time, scope, and quality. This concept is pivotal because it sets the boundaries within which project managers can operate without needing to escalate issues to higher levels of authority. For instance, if a project is running slightly over budget but remains within the predetermined tolerance limits, the project manager can continue without requiring approval for corrective actions. Tolerance provides flexibility and helps in better decision-making by allowing the project team to manage minor variances effectively while maintaining overall project control.

This understanding of tolerance helps ensure that any deviations that exceed the established limits are identified early, allowing for prompt corrective measures. Thus, it plays a crucial role in maintaining the balance between project governance and practical management.