Develop Project Charter

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The project charter is the document that formally authorizes a project. The project charter provides the project manager with the authority to apply organizational resources to project activities. A project manager is identified and assigned as early in the project as is feasible. The project manager should

Project integration Management

Develop project charter

1. Inputs a. Contract b. Project statement of work c. Enterprise environmental factors d. Organization process assets

2. Tools a. Project selection methods b. Project management methodology c. Project management information system d. Expert judgment

3. Outputs a. Project charter

Develop preliminary project scope statement

1. Inputs a. Project charter b. Project statement of work c. Enterprise environmental factors d. Organizational process assets

2. Tools and techniques a. Project management methodology b. Project management information system c. Expert judgment

3. Outputs a. Preliminary project scope statement

Develop project management plan

1. Inputs a. Preliminary project scope statement b. Project management processes c. Enterprise environmental factors d. Organizational process assets

2. Tools and techniques a. Project management methodology b. Project management information system c. Expert judgment

3. Outputs a. Project management plan

Direct and manage project execution

1. Inputs a. Project management plan b. Approved corrective actions c. Approved preventive actions d. Approved change requests e. Approved defect repair f. Validated defect repair g. Administrative closure procedure

2. Tools and techniques a. Project management methodology b. Project management information system

3. Outputs a. Deliverables b. Requested changes c. Implemented change requests d. Implemented corrective actions e. Implemented preventive actions f. Implemented defect repair g. Work performance information

Monitor and control project work

1. Inputs a. Project management plan b. Work performance information c. Rejected change requests

2. Tools and techniques a. Project management methodology b. Project management information system c. Earned value technique d. Expert judgment

3. Outputs a. Recommended corrective actions b. Recommended preventive actions c. Forecasts d. Recommended defect repair e. Requested changes

Integrated change control

1. Inputs a. Project management plan b. Requested changes c. Work performance information d. Recommended preventive actions e. Recommended corrective actions f. Recommended defect repair g. Deliverables

2. Tools and techniques a. Project management methodology b. Project management information system c. Expert judgment

3. Outputs a. Approved change requests b. Rejected change requests c. Project management plan updates d. Project scope statement updates e. Approved corrective actions f. Approved corrective actions g. Approved defect repairs h. Validated defect repair i. Deliverables

Close project

1. Inputs a. Project management plan b. Contract documentation c. Enterprise environmental factors d. Organizational process assets e. Work performance information f. Deliverables

2. Tools and techniques a. Project management methodology b. Project management information system c. Expert judgment

3. Outputs a. Administrative closure procedure b. Contract closure procedures c. Final product, service, or result d. Organizational process assets updated

Figure 1.3 Project integration management overview.

always be assigned prior to the start of planning, and preferably while the project is being developed.

A project initiator or sponsor, external to the project organization, at a level that is appropriate to funding the project, issues a project charter. Projects are usually chartered and authorized by top management, a sponsor, a government agency, a partnering company, a program organization, or a portfolio organization, as a result of one or more of the following:

■ A market demand (e.g., a car company authorizing the development of a product to provide more fuel-efficient cars in response to gasoline shortages)

■ A business need (e.g., a training company authorizing a project to build a new substation to serve a new industrial park)

■ Acustomer request (e.g., an electric utility authorizing a project to build a new substation to serve a new industrial park)

■ A technological advance (e.g., an electronics firm authorizing a new project to develop a faster, cheaper, and smaller laptop after advances in computer memory and electronics technology)

■ A legal requirement (e.g., a paint manufacturer authorizing a project to establish guidelines for handling toxic materials)

■ A social need (e.g., a nongovernmental organization in a developing country authorizing a project to provide potable water systems, latrines, and sanitation education to communities suffering from high rates of cholera)

These factors that generate projects can also be called problems, opportunities, or business requirements. The central theme of all these stimuli is that management must make a decision about how to respond and what projects to authorize and charter. Project selection methods involve measuring value or attractiveness to the project owner or sponsor and may include other organizational decision criteria. Project selection also applies to choosing alternative ways of executing the project.

Charting a project links the project to the ongoing work of the organization. In some organizations, a project is not formally chartered and initiated until completion of a needs assessment, feasibility study, preliminary plan, or some other form of analysis that was separately initiated. Developing the project charter is primarily concerned with documenting the business needs, project justification, current understanding of the customer's requirements, and the new product, service, or result that is intended to satisfy those requirements. The project charter, either directly or by reference to other documents, should address the following information:

■ Requirements that satisfy customer, sponsor, and other stakeholder needs, wants, and expectations

■ Business needs, high-level project description, or product requirements that the project is undertaken to address

■ Project purpose or justification

■ Assigned project manager and authority level

■ Summary of milestone schedule

■ Stakeholder influences

■ Functional organizations and their participation

■ Organization, environmental, and external assumptions and constraints

■ Business case justifying the project, including return on investment

■ Summary budget

During subsequent phases of the multiphase projects, the "develop project charter" process validates the decisions made during the original chartering of the project. If required, it also authorizes the next project phase, and updates the charter.

The project charter commissions and challenges the project team, and the business itself, to work with their eyes fully open to both the risks and opportunities of the project. This means that the team is charged to plan, design, and monitor the program and/or project with an eye outward to customer expectations and requirements; cost, schedule, and quality trade-offs (using earned value tools); reaching out to supporting functions and systems (IT, functional departments such as accounting and purchasing/acquisition, technical test equipment, and tool managers); the costs of production and manufacturing of the project products and outputs; the need for strong configuration management to document and preserve the product; and other projects underway as part of the company's portfolio of projects. The team should look at the project as an investment in the company itself.

The charter will identify periodic stage-gate review points, the need for interfaces in those reviews, and will challenge the team to make the business case for the project at every stage-gate review.

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