The level and scale that you would use a project management methodology like PRINCE2 is dependent on the size of the project. Size can be determined in various ways including duration, scope, level of risk, budget, and level of interest/stakeholders.
For a very small low risk project, like moving a small office from one room to another in the same building, the Project Manager may only use a handful of the 26 PRINCE2 documents. The project may have a single person take on multiple roles.
For a larger project, like building an aircraft carrier, the Project Manager will want to use the methodology to its fullest extent to ensure there are as many controls on the project as possible.
Tailoring means that you can use the parts of the method that you think are most important to the size of the project you are managing. Generally speaking it is always important to:
For small projects these documents can be summarised as part of the project initiation documentation.