Context – Where we are in PRINCE2

In the PRINCE2 method the process Managing Product Delivery (MP) is about the interface between the Project Manager and the Team Manager: accepting work packages, executing them, delivering the products and reporting checkpoints.

The objective is: - products allocated to the team are authorised and agreed; - the team is clear what must be produced, and understands effort/time/cost; - planned products are delivered to expectations and within tolerances; - accurate progress information is provided at agreed frequency.

Since this process sits at the heart of delivery, the KPIs we choose must reflect the core concerns: time, cost, quality, scope, risk/issue, and stakeholder expectations.

What makes a “good” KPI in this context

Before listing specific KPIs, let’s revisit characteristics of strong KPIs (which apply equally to the MP process) :

• Aligned – they must reflect business objectives and project objectives.
• Measurable – quantifiable, clearly defined.
• Realistic / Achievable – set within tolerances that make sense.
• Clear – stakeholders understand what is being measured and why.
• Reported regularly – so that progress can be monitored and corrective action taken if needed.

In MP you also add: KPIs must reflect work‐packages and product‐deliverables, align with team-plans, tolerate thresholds (tolerances are key in PRINCE2) and escalate when thresholds are breached.

Top KPIs for Managing Product Delivery

Here are strong KPI candidates—grouped by dimension—with guidance for how you can use them, interpret them, and embed them into your MP governance.

1. Time / Schedule Delivery

• Work-Package Completion % on time — the percentage of work-packages delivered by the agreed date (or within tolerance).
• Time Variance — actual vs planned duration for each work-package or product.
• Checkpoint Report Frequency Compliance — whether checkpoint reporting from Team Manager to Project Manager happens as agreed.

Why these matter: In MP you must ensure planned products are delivered within the agreed effort/time/cost. Missing time‐targets may indicate risk of escalation.
Use tip: Report weekly or at checkpoints, and flag any variance beyond tolerance for escalation.

2. Cost / Effort

• Budget / Cost Variance per Work Package — actual cost/effort vs budgeted for each work package.
• Resource Utilisation Rate — percentage of planned resource hours that have been utilised on the product delivery.
• Cost of Delay — quantifying the cost impact due to delayed product delivery (if measurable).

Why: Cost is one of the seven performance aspects in PRINCE2 (scope, time, cost, quality, benefits, risk, and resources) and delivering products within cost is essential.
Use tip: Incorporate cost-variance into the regular checkpoint report to maintain transparency and trigger corrective action early.

3. Quality / Product Acceptance

• Number of Non-conformities per Product — count of defects or deviations from quality criteria defined in product descriptions.
• Product Approval Rate — proportion of products accepted at first pass without rework.
• Customer/User Satisfaction Score for Delivered Products — a tailored survey or feedback mechanism post‐delivery.

Why: In MP the team must demonstrate that products meet their quality criteria and obtain approvals.
Use tip: Link this KPI to product description quality criteria. Exhibit trends in defect counts or rework across deliverables.

4. Scope / Requirements Stability

• Change Request Rate per Product — number of change requests raised after product description baseline per work‐package.
• Requirements Drift Index — measure of variance between original product description scope and delivered product (for example number of scope deviations).
• Percentage of Products Delivered as Described — proportion of deliverables delivered exactly as per product description without extras or omissions.

Why: Scope stability controls how predictable and reliable product delivery can be. In MP you must operate within tolerances; scope changes risk breaking those tolerances.
Use tip: Monitor change-requests and scope deviations at checkpoint level, escalate if deviation exceeds predefined tolerance.

5. Risk / Issue Management

• Outstanding Issues per Work Package — count of open issues (risks materialised or problems identified) at checkpoint.
• Risk Resolution Time — average time taken to resolve issues/risks impacting the work‐package.
• Percentage of Products delivered with Zero Escalated Exceptions — i.e., no exceptions raised beyond team manager’s tolerance.

Why: MP requires team manager to report issues, risks, lessons to PM and update registers.
Use tip: Include in checkpoint dashboards, emphasise corrective actions and trend escalation triggers.

6. Communication / Governance

• Checkpoint Report Submission Rate — percentage of scheduled checkpoint reports submitted on time.
• Stakeholder Feedback Frequency — count of stakeholder engagement or feedback sessions related to product delivery.
• Work Package Acceptance Delay — time between product completion and formal acceptance by Project Manager or Board.

Why: Effective communication and governance are key to MP’s success: team managers must keep PM and assurance informed, and the formal hand-off is critical.
Use tip: Use as an early warning: delays in acceptance often signal underlying quality or expectation mismatches.