12 Oak Avenue Cleveland, Ohio 44114

11 June 2001

To: Distribution

From: L. White, Executive Vice President

Subject: Project Charter for the Acme Project

Mr. Robert L. James has been assigned as the Project Manager for the Acme Project.


Mr. James will be responsible for ensuring that all key milestones are met within the time, cost, and performance constraints of his project, while adhering to proper quality control standards. Furthermore, the project manager must work closely with line managers to ensure that all assigned resources are used effectively and efficiently, and that the project is properly staffed. Additionally, the project manager will be responsible for:

1. All formal communications between the customer and contractor.

2. Preparation of a project plan that is realistic, and acceptable by both the customer and contractor.

3. Preparation of all project data items.

4. Keeping executive management informed as to project status through weekly (detailed) and monthly (summary) status reporting.

5. Ensuring that all functional employees and managers are kept informed as to their responsibilities on the project and all revisions imposed by the customer or parent organization.

6. Comparing actual to predicted cost and performance, and taking corrective action when necessary.

7. Maintaining a plan that continuously displays the project's time, cost, and performance as well as resource commitments made by the functional managers.


To ensure that the project meets its objectives, Mr. James is authorized to manage the project and issue directives in accordance to the policies and procedures section of the company's Project Management Manual. Additional directives may be issued through the office of the executive vice-president. The program manager's authority also includes:

1. Direct access to the customer on all matters pertaining to the Acme Project.

2. Direct access to Electrodynamics' executive management on all matters pertaining to the Acme Project.

3. Control and distribution of all project dollars, including procurement, such that company and project cash flow limitations are adhered to.

4. To revise the project plan as needed, and with customer approval.

5. To require periodic functional status reporting.

6. To monitor the time, cost, and performance activities in the functional departments and ensure that all problems are promptly identified, reported, and solved.

7. To cut across all functional lines and to interface with all levels of management as necessary to meet project requirements.

8. To renegotiate with functional managers for changes in personnel assignments.

9. Delegating responsibilities and authority to functional personnel, provided that the line manager is in approval that the employee can handle this authority/responsibility level.

Any questions regarding the above policies should be directed to the undersigned.

L. White

Executive Vice-President manager can predict what conflicts will occur and when they are most likely to occur, he may be able to plan for the resolution of the conflicts through project administration.

Figure 11-14 shows the complete project planning phase for the quantitative portions. The object, of course, is to develop a project plan that shows complete distribution of resources and the corresponding costs. The figure represents an iterative process. The project

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