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POL00337632
Tolerance
TOLERANCE PROCESS
INNOVATE PROVE
pf Jee tet Ene)
Thresholds —_—_———————/) Operate within Tolerance
Project
Change
Request
The aim of the Tolerance Process is to keep projects operating within agreed
key control parameters.
All projects that have been approved to Deliver will have agreed envelopes in
terms of Finances, Scope and Timescales. If any of these change, the project
MUST submit a Project Change Request form to the IADG via
change.approvalss = =GRO
It is crucial that projects work to anticipate these changes and seek approval
before any delivery envelope is broken.
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POL00337632
FINANCIAL TOLERANCE:
In order to avoid the additional work involved in projects having to return to
governance when their costs have overrun or NPV decreased by a moderate
amount, the POL Board has agreed the Tolerances Process. This means that when
the Costs or NPV of a project have deteriorated by 2% or 15%, respectively, the
change will be administered jointly by Change Finance and Portfolio Leads.
If, as part of your regular reviews with your Finance partner and Portfolio Lead the
project identifies that Costs and/or NPV have changed - use the following table to
guide your subsequent actions.
Project ensures Finance and Portfolio Leads Project works with Portfolio Lead and
are aware and forecasts updated Change Finance to absorb within Portfolic
ea »
OR
Project ensures Finance and Portfolio Leads Project works with Portfolio Lead and
are aware and forecasts updated Change Finance
4 »
SCOPE TOLERANCE:
If, as part of your regular reviews you find the following aspects of scope will be
changed - the project needs to submit a Project Change Request to the IADG.
© The scope of what is to be delivered is materially expanded or contracted
¢ Achange in the design of the proposed solution
e Achange to the way in which the design is going to be executed and how
this is going to be managed through the project or programme
¢ Any changes in design that may have an impact on other projects or
programmes across the Post Office
DELIVERY TOLERANCE:
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POL00337632
If, as part of your regular reviews you find the following delivery tolerances will be
breached (milestone slippage) - the project change needs to be agreed with your
Portfolio Lead without raising a Project Change Request document ONLY IF
THERE IS NO IMPACT ON SCOPE, COST OR BENEFIT (otherwise the change falls
under the above tolerance rules and IADG paperwork must be raised).
Templates
(\__ Description Name v Mandated v A
5) If project is outside of PROJECT CHANGE REQUEST PRJn... Yes
tolerance for time, cost n
or quality - it must
submit this form to PRB.
This form is also used to
request funding
drawdown for waterfall
projects
EB) Standard Finance cost BUSINESS CASE MODEL PRJname... Yes F
model Pp
Training
(§ Name? v Description Format v N
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