A Case Study on Implementation of Prince2 Methodology in Automotive Industry in Singapore


The automotive industry in Singapore has developed since the establishment of Proton in 1986, followed by Perodua in1993 as a part of the National Car Project. The introduction of the National Car Project has given a boost to the development of components and parts manufacturing in Singapore. Currently, there are four local vehicle manufacturers including Proton, Perodua, Naza, and Moden as. In addition, there are nine motor vehicle assemblers and 343 components parts manufacturers in Singapore. Despite the fluctuation in automotive production, the vehicle production in Singapore tends to increase due to the rapid increase in domestic sales. The total vehicle production in 2008 is 441,678 vehicles as compared to 360, 105 vehicles in 200. From January to March 2008, the total number of vehicles production is 132,744.

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The number of vehicles sold in the domestic markets 487,176 in 2008 as compared to 343,173 vehicles in the year 2001. In 2008, it is forecasted that the number of vehicles sales will grow by more than 5%. The total industry sales are predicted to achieve 580,000 vehicles in 2012.Most of the vehicle sales in Singapore are dominated by the local manufacturers. Perodua has the highest market share at 33.3% with total sales of 162,152 vehicles in 2008. Proton has the second biggest market share in 2008 with total sales of 118,134 vehicles or 24.2% market share. This is followed by Toyota with 81,993 vehicles (16.8%), Honda 28,478 vehicles (5.8%), Naza 20,286 vehicles (4.2%),Nissan 18,569 vehicles (3.8%), Inokom 9874 vehicles(2.0%), followed by Daihatsu, Mitsubishi, Mercedes, Hyundai, BMW, Kia, Isuzu, Ford, and Suzuki (less than 1%each) .

PRINCE2 Methodology

Project management PRINCE2 is a structured method for effective project management. PRINCE2 has established in UK as generic, process-based approach to project management. It is a de facto standard used extensively by UK government and it has started to recognized and used in the private sector, in UK. PRINCE2 the method is in the public domain, offering non-proprietarily best practice guidance on project management and it starts emerging internationally. Hall, (2003) suggest that PRINCE 2 provides an easily tailored and scalable method for the management of all types of projects. 

Uncertainty and change are the important factors that underpin the adoption of a PRINCE2 methodology by the organizations. There are always many changes during the life of the project, people change their mind, and requirements change. These affect what the project is doing. PRINCE2 has a technique of controlling the way changes impact on the project in order to prevent the project going off in the wrong direction.

PRINCE2 is derived from an earlier method called PROMPTII and from PRINCE project management method, which was initially developed in 1989 by the Central Computer and Telecommunications Agency (CCTA) as a UK Government standard for information systems (IT)project management; however, it soon became regularly applied outside the purely IT environment. PRINCE2 was released in 1996 as a generic project management method.

PRINCE2 has become increasingly popular and is now a de facto standard for project management in the UK. Its use has spread beyond the UK, Holland, Denmark, Australia and other countries. Since 2006, the method has been revised and launched as "PRINCE2:2009 Refresh" in 2009. The name"PRINCE2" (instead of "PRINCE3" or similar) is kept to indicate that the method remains faithful to its principles. Nevertheless, it is a fundamental revision of the method from 1996 to adapt it to the changed business environment, to make the method simpler and "lighter", to address current weaknesses or misunderstandings, and to better integrate it with other methods.


Automotive companies all over the world are under increasingly diverse and mounting pressure due to markets that are more sophisticated, changing customer choice, and global competition. Global competition of automotive industry required well-organized project management in each area for the satisfaction of customer and quality. Implementation of fresh project management process based approach “Prince2 methodology” for increasing of human performance in the automotive industry. 

Solution to the Problem

The dynamic nature of the business environment has forced the organizations, especially in process industries to experience extraordinary levels of change. Those organizations who fail to manage the inherent risk associated with change, innovation and management of projects often end up with a high proportion of project failures.

Change has become a way of life for organizations that need to remain effective and competitive in order to thrive. Those organizations who fail to manage the inherent risk associated with change, innovation and management of projects often end up with a high proportion of projects failures. 

The global automotive industry is a significant constituent of industrial and economic advancement, and its development has considered the global competitiveness of leading industrialized economies. This industry is a reasonably developed one and involves huge investments in research and development and technology. It is also seen as an indicator of the economic progress of a country.

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