Sample Project Charter in Project Management
- 1. 1 1.0 INITIATING PROCESS GROUP The purpose of the Initiating Process Group is to authorize a project, provide a high-level definition of the project, and identify stakeholders. There are two processes in the Initiating Process Group: • Develop project charter • Identify stakeholders The intent of the Initiating Process Group is to at least: • Authorize a project • Identify project objectives • Define the initial scope of the project • Obtain organizational commitment • Assign a project manager • Identify project stakeholders As the first processes in the project, the initiating processes are vital to starting a project effectively. These processes can be revisited throughout the project for validation and elaboration as needed. The forms used to document initiating information include: • Project charter • Assumption log • Stakeholder register • Stakeholder analysis Initiating Forms
- 2. These forms are consistent with the information in the PMBOK® Guide – Sixth Edition. Tailor them to meet the needs of your project by editing, combining, or revising them.
- 3. 2 Initiating Forms 1.1 PROJECT CHARTER The project charter is a document that formally authorizes a project or phase. The project charter defines the reason for the project and assigns a project manager and his or her authority level for the project. The contents of the charter describe the project in high-level terms, such as: • Project purpose • High-level project description • Project boundaries • Key deliverables • High-level requirements • Overall project risk • Project objectives and related success criteria • Summary milestone schedule • Preapproved financial resources • Key stakeholder list • Project approval requirements • Project exit criteria • Assigned project manager, responsibility, and authority level • Name and authority of the sponsor or other person(s) authorizing the project charter The project charter can receive information from: • Agreements (contracts) • Statements of work • Business case • Benefits management plan It provides information to: • Stakeholder register • Project management plan • Scope management plan • Requirements management plan • Requirements documentation • Requirements traceability matrix • Project scope statement • Schedule management plan • Cost management plan • Quality management plan • Resource management plan • Communications management plan • Risk management plan • Procurement management plan • Stakeholder engagement plan The project charter is an output from process 4.1 Develop Project Charter in the PMBOK ® Guide – Sixth Edition. This document is developed once and is not usually changed unless there is
- 4. a significant change in the environment, scope, schedule, resources, budget, or stakeholders.
- 5. Initiating Forms 3 Tailoring Tips Consider the following tips to help you tailor the project charter to meet your needs: • Combine the project charter with the project scope statement, especially if your project is small • If you are doing the project under contract you can use the statement of work as the project charter in some cases Alignment The project charter should be aligned and consistent with the following documents: • Business case • Project scope statement • Milestone schedule • Budget • Stakeholder register • Risk register Description You can use the element descriptions in Table 1.1 to assist you in developing a project charter. TABLE 1.1 Elements of a Project Charter Document Element Description Project purpose The reason the project is being undertaken. May refer to a business case, the organization’s strategic plan, external factors, a contract agreement, or any other reason for performing the project. High-level project description A summary-level description of the project. Project boundaries Limits to the project scope. May include scope exclusions, or other limitations. Key deliverables The high-level project and product deliverables. These will be further elaborated in the project scope statement. High-level requirements The high-level conditions or capabilities that must be met to satisfy the purpose of the project. Describe the product features and functions that must be present to meet stakeholders’ needs and expectations. These will be further elaborated in the requirements documentation. Overall project risk An assessment of the overall riskiness of the project. Overall risk can include the underlying political, social, economic, and technological volatility, uncertainty, complexity, and ambiguity. It pertains to the stakeholder exposure to variations in the project outcome.
- 6. Project objectives and related success criteria Project objectives are usually established for at least scope, schedule, and cost. The success criteria identify the metrics or measurements that will be used to measure success. There may be additional objectives as well. Some organizations include quality, safety, and stakeholder satisfaction objectives. (continued)
- 7. 4 Initiating Forms Table 1.1 Elements of a Project Charter (continued) Document Element Description Summary milestone schedule Significant events in the project. Examples include the completion of key deliverables, the beginning or completion of a project phase, or product acceptance. Preapproved financial resources The amount of funding available for the project. May include sources of funding and annual funding limits. Key stakeholder list An initial, high-level list of people or groups that have influenced or can influence project success, as well as those who are influenced by its success. This can be further elaborated in the stakeholder register. Project exit criteria The performance, metrics, conditions, or other measurements that must be met to conclude the project. Assigned project manager, responsibility, and authority level Name and authority of the sponsor or other person(s) authorizing the project charter The authority of the project manager with regard to staffing, bud- get management and variance, technical decisions, and conflict resolution. Examples of staffing authority include the power to hire, fire, discipline, accept, or not accept project staff. Budget management refers to the authority of the project manager to commit, manage, and control project funds. Variance refers to the variance level that requires escalation. Technical decisions describe the authority of the project manager to make technical decisions about deliverables or the project approach. Conflict resolution defines the degree to which the project manager can resolve conflict within the team, within the organization, and with external stakeholders. The name, position, and authority of the person who oversees the project manager for the purposes of the project. Common types of authority include the ability to approve changes, determine acceptable variance limits, resolve inter-project conflicts, and champion the proj- ect at a senior management level.
- 8. PROJECT CHARTER Project Title: HD X440 Bike Assembly Process Development at Hero Neemrana Plant Project Sponsor: Manufacturing Head- Neemaran Date Prepared: 30/09/22 Project Manager: Bhupinder Saini Project Customer: Despatch Team Project Purpose: To Develop a Process for Vehicle assembly & Engine assembly for HD X440 for 50VPD by Sept-23 To Plan & Order the Infrastructure requirement for all 06 Manufactuirng shops by Jan- 23 To Installed & Commissioned all the machines & equipment in all 06 shops by March- 23 To successfully execute the PP1 & PP2 event in vehicle assembly on Jan-23 & March-24 High-Level Project Description: Process Development of HD X440 bike at Hero Motocorp Neemrna plant by aug-23. Project Boundaries: No X440 Vehicle will be assembled on line-2. Vehicle Start of Production will be start after CIT approval area. Vehicle Dispatch will be started after dispatch evaluation apparoval. Key Deliverables: Fuel Tank Welding Process machines tobe delivered within 3 months after order releaseing. Delivery of Tightening Tools for Engine & vehicle assembly within 2 months after the order release. Delivery of Special Tooling & Fixtures for Subassembly process withi 15 days of order released. Paint Shop Shade establishment within 3 days after approval of paint testing results High-Level Requirements: X440 PP1 & PP2 event to be completed by Jan-23 & March-23 respectively. X440 vehicles dispatched must be start on or before 18th October 2023. Overall Production Capcity of assembly line must be 50 vehicle per day. Manpower to be recruited & handover by Feb-23. Vehicle Quality Straight pass must be 100% from Day 1 of Start of Production (SOP)
- 9. Overall Project Risk Delay in Availbility of raw material from suppliers for starting of assembly. Delay in the Delivery of Tools & Fixture for assembly process. Engine performance parameters not meet the required standard during testing at R& D . Delay in the receiving of testing report form PDI Lab Page 1 of 4
- 10. PROJECT CHARTER Scope: To assembled the HD X440 motorcycle with 04 nos.of variant on vehicle assembly line-1 at neemrana plant by Oct2023. Assembly of HD X440 vehicle with 100% Qulality rate passing all CIT , IQC & ARAI test by oct 23 with minimum development rejection cost. Time: To complete the Project within schedule time of 12 months Completion of HD X440 Vehicle assembly by Oct2023 passed in all quality parameter Cost: To complete the project within Budget 120 Cr To attain a EBITA margin of 20%O Other: Summary Milestones Due Date Technical Specification Finalization of All Equipment Within 15 days of final releasing of the drawings Purchase Order Releasing Of all machines, Tools , Fixtures & machine Consumables Witin 7 days after technical specification signedoff Delivery of all Facilities Within 3 months of purchase order Child Parts Availbility for Machine Trial 20 days before the machine delivery Civil & Utilities Infrastructure Completion To be ready before machine delivery Machine Layout & material Flow Finalization On or before machine Delivery Installation & Commissioning of machines With 7 days after machine Delivery Project Objectives Success Criteria
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- 12. PROJECT CHARTER Preapproved Financial Resources: 100% Approved CAPEX from Central Team Stakeholder(s ) Role Project Manager (New Model Coordinator) All Project Related Activites Project Sponser (Manufactuing Head) Review progress of all activities Release of funds for projects Approval of all Procurement Project Team All Project related activities Machine Suppliers Machine Delivery & machines drawings as per timeline . Fixture & Tightening Tools Suppliers Delivery of Fixture & tightening tools as per timeline ARAI To provide the necceasry approval for go ahead Civil Contractor To get the civil drawings approval from Local authorities PDT Testing Divison To Provide the approval for Driveability test Project Exit Criteria: 1. Handing Over of New Facility to respective shops for Vehicle assembly of X440 2. Assembly of 1st 50 nos. QC Ok Vehicles to dispatch team Project Manager Authority Level: Staffing Decisions: Budget Management and Variance: 1.Assembly Process design Expert 2. Mitsuibuishi PLC Prorammer 3. Tools & Fixture Designer 2. 2.INR 150 cr ± 5%
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- 14. Technical Decisions: PROJECT CHARTER Conflict Resolution: Sponsor Authority: Approvals: Project Manager Signature Sponsor or Originator Signature Project Manager Name Sponsor or Originator Name Date Date 1. Approval of Machine Layout 2. Machine Technical specification Finalization 3. Utility Layout Finaliation 4. Approval of Process flow 5. Supplier Recommendations Resolution of Conflict between project team members R&D ,Central Project team , Plant team. Resolution of conflict between the civil contractor & other vendors for pricing finalization. Resolution of conflict with machine supplier on technical issues. Deployment of Project team Releasing of funds for project Review of progress of project Approval of suppliers recommended by PM
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- 16. Initiating Forms 9 1.2 ASSUMPTION LOG Assumptions are factors in the planning process that are considered to be true, real, or certain, without proof or demonstration. Constraints are also documented in this log. Constraints are limiting factors that affect the execution of the project. Typical constraints include a predetermined budget or fixed milestones for deliverables. Information in the assumption log includes: • Identifier • Category • Assumption or constraint • Responsible party • Due date • Actions • Status • Comments Assumptions can come from any document in the project. They can also be determined by the proj- ect team. Constraints may be documented in the project charter and are determined by the customer, sponsor, or regulatory agencies. The assumption log provides information to: • Requirements documentation • Project scope statement • Network diagram • Duration estimates • Project schedule • Quality management plan • Resource estimates • Risk register • Stakeholder engagement plan The assumption log is an output from the process 4.1 Develop Project Charter in the PMBOK® Guide – Sixth Edition. This log is a dynamic document that is updated throughout the project. Assumptions are progressively elaborated throughout the project and are eventually validated and no longer assumptions. Tailoring Tips Consider the following tips to help you tailor the assumption log to meet your needs: • Combine the assumption log with the issue register and the decision log, to create an AID Log (A = assumption, I = issue, D = decision). You can create them in a spreadsheet with each sheet dedicated to either assumptions, issues, or decisions. • If you have a very large project you may want to keep the constraints in a separate log from the assumptions.
- 17. 10 Initiating Forms Alignment The assumption log should be aligned and consistent with the following documents: • Project charter • Issue log • Risk register Description You can use the element descriptions in Table 1.2 to assist you in developing the assumption log. TABLE 1.2 Elements of an Assumption Log Document Element Description ID Identifier Category The category of the assumption or constraint Assumption/constraint A description of the assumption or constraint Responsible party The person who is tasked with following up on the assumption to validate if it is true or not Due date The date by which the assumption needs to be validated Actions Actions that need to be taken to validate assumptions Status The status of the assumptions, such as active, transferred, or closed Comments Any additional information regarding the assumption or constraint
- 18. ASSUMPTION LOG Project Title:Process Design of X440 Date Prepared: 30.09.2022 ID Category Assumption/Constraint Responsible Party Due Date Actions Status Comments AX1.1 Finance Assumption is that Advance Payment for Robot Suplier will be released by finance team Finance 30.12.2023 Timely Releasing of Payment as per due date Pending Urgent AX1.2 Supply Chain Assumption is that initial parts for machine trial will be available by supply chain team Supply Chain Team 20.01.2024 Parts Availibility as per timeline Pending Urgent AX1.3 Top Managment Assumption is that all Puchase orders value more than 20 lac will be approved by Head of Plant Operations Top Management Within a week after submission of all Documents Approval of Purchase orders Pending Critical AX1.4 R& D Assumption that R&D team will share the testing report within a week after receiving of initial lot of vehciles. R & D Within week after receiving of initial lot of vehicle Sharing of testing report Pending Semi-urgent AX1.5 R&D Assumption is that all design related open points of 1st trial event (PP1) vehicle will be closed by R&D before next trial event.(PP2) R &D Before PP2 EventAll open points of PP1 to be closed . Pending Semi-urgent
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- 20. 12 Initiating Forms 1.3 STAKEHOLDER REGISTER The stakeholder register is used to identify those people and organizations impacted by the project and to document relevant information about each stakeholder. Relevant information can include: • Name • Position in the organization • Role in the project • Contact information • List of stakeholder’s major requirements • List of stakeholder’s expectations • Classification of each stakeholder Initially you will not have enough information to complete the stakeholder register. As the project gets underway you will gain additional information and understanding about each stakeholder’s requirements, expectations, and classification and the stakeholder register will become more robust. The stakeholder register receives information from: • Project charter • Procurement documents It is related to: • Stakeholder analysis matrix It provides information to: • Requirements documentation • Quality management plan • Communications management plan • Risk management plan • Risk register • Stakeholder engagement plan The stakeholder register is an output from the process 13.1 Identify Stakeholders in the PMBOK® Guide – Sixth Edition. The stakeholder register is a dynamic project document. The stakeholders, their level of influence, requirements, and classification are likely to change throughout the project. Tailoring Tips
- 21. Consider the following tips to help you tailor the stakeholder register to meet your needs: • Combine the position in the organization with the role on the project, especially if it is a smaller project and everyone knows everyone else’s position. • Combine the stakeholder analysis matrix information with the stakeholder register. • Eliminate position, role, and contact information for small internal projects.
- 22. Initiating Forms 13 Alignment The stakeholder register should be aligned and consistent with the following documents: • Project charter • Stakeholder analysis matrix • Stakeholder engagement plan Description You can use the element descriptions in Table 1.3 to assist you in developing the stakeholder register. TABLE 1.3 Elements of a Stakeholder Register Document Element Description Name Stakeholder’s name. If you don’t have a name you can substitute a position or organization until you have more information Position/Role The position and/or role the stakeholder holds in the organization. Examples of positions include programmer, human resources analyst, or quality assurance specialist. Roles indi- cate the function the stakeholder performs on the project team, such as testing lead, Scrum Master, or scheduler Contact information How to communicate with the stakeholder, such as their phone number, email address, or physical address Requirements High-level needs for the project and/or product Expectations Main expectations of the project and/or product Classification Some projects may categorize stakeholders as friend, foe, or neutral; others may classify them as high, medium, or low impact
- 23. STAKEHOLDER REGISTER Project Title:HD X440 Vehicle Development Date Prepared: 30.09.2022 Name Position/Role Contact Informati on Requirements (Resp) Expectations Classific ation PG Manufacturing Head (Project Sponsor) XXXXXX XXXX To review the project progress on weekly basis The project must be completed within decided timeline within budget. There will be no defects outflow from the process during vehicle assembly. High Impact AS Project Manager XXXXXX XXXX To overall review of the project as per schedule , all activities execution safely & alignment of different stakeholders Project must be completed within decided schedule as per the scope , within budget . There will be no impact on the quality of work. There will be no accidents during commissioning of machine during the project. High Impact PK Research & Development SPOC XXXXXX XXXX Timely review of ECN received Timley review of Designed related Points during 1st vehicle lot Production. The updated drawings to be released as per the received ECN. All the design related points to be closed on or before the SOP. Timely Releasing of test reports High Impact DC Civil Contractor XXXXXX XXXX Drawings approval fromLocal Authority
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- 25. Initiating Forms 15 1.4 STAKEHOLDER ANALYSIS Stakeholder analysis is used to classify stakeholders. It can be used to help fill in the stakeholder register. Analyzing stakeholders can also help in planning stakeholder engagement for groups of stakeholders. The following example is used to assess the relative power (high or low), the relative interest (high or low), and the attitude (friend or foe). There are many other ways to categorize stakeholders. Some exam- ples include: • Influence/impact • Power/urgency/legitimacy Stakeholder analysis receives information from: • Project charter • Procurement documents Stakeholder analysis is a tool used in 13.1 Identify Stakeholders in the PMBOK® Guide – Sixth Edition. Tailoring Tips Consider the following tips to help you tailor the stakeholder analysis to meet your needs: • For projects with relatively homogenous stakeholders you can use a 2 × 2 grid that only considers two variables, such as interest and influence. • For larger projects consider using a 3 × 3 stakeholder cube. Tailor the categories to reflect the impor- tance of various stakeholder variables. Alignment The stakeholder analysis should be aligned and consistent with the following documents: • Stakeholder register • Stakeholder engagement plan Description You can use the element descriptions in Table 1.4 to assist you in developing a stakeholder analysis. TABLE 1.4 Stakeholder Analysis Document Element Description Name or role The stakeholder name, organization, or group Interest The level of concern the stakeholder has for the project
- 26. Influence The degree to which the stakeholder can drive or influence outcomes for the project Attitude The degree to which the stakeholder supports the project
- 27. STAKEHOLDER ANALYSIS Project Title: Date Prepared: Name or Role Interest Influenc e Attitude
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