Project Management: Insurance Company Relocation Project

Running Head: PROJECT MANAGEMENT
Insurance Company Relocation Project
Name of the Student
Name of the University

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Table of Contents
Section 1: Theory of Project Charter Elements...............................................................................2
Section 2: Project Charter for Insurance Office Relocation............................................................4
2.1 Overview of the Project.........................................................................................................4
2.2 Purpose of the Charter...........................................................................................................4
2.3 Project Scope and Objectives................................................................................................5
2.4 Project Deliverables and Milestones.....................................................................................5
2.5 Project Schedule....................................................................................................................8
2.6 Assumptions and Constraints................................................................................................9
2.7 Project Budget.......................................................................................................................9
2.8 Stakeholder Roles and Responsibilities...............................................................................12
2.9 Charter Acceptance..............................................................................................................13
References......................................................................................................................................14

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Section 1: Theory of Project Charter Elements
The main elements of project charter are listed as follows along with their detailed
explanation as found in literature.
Overview of the Project – This is the introductory section of a project charter that
provides an overall background information of the project to the reader (Kerzner and Kerzner
2017). The overview of the project includes the context of the project plan and why it is being
executed. The overview also includes the discussion of benefits that are expected from the
project.
Purpose of the Charter – In this section, the main discussion is based on the reason for
developing this charter. There are many projects that do not require project charter and the plans
are made differently. Project charter serves its own important purpose that helps the project
management to develop a fully fledged project plan (Heldman 2018). Even if the complete
project plan is not developed, the charter can act as a preliminary plan that can give the basic
idea of the overall project plan.
Project Scope and Objectives – Project scope is defined as the boundary that is set during
planning such that the project stays within a particular limit. Without the project scope, the
project will move out of control at one point causing huge losses to the parent organisation. In a
charter, the project scope is mainly defined using a six item checklist that includes objective, key
milestones, high level requirements, assumptions and exclusions, issues and risks and key
stakeholders (Kloppenborg, Anantatmula and Wells 2018). On the other hand, project objectives
define the main outcomes and requirements that are expected as the end product of the project. In

3PROJECT MANAGEMENT
most project charters, the objective is defined using the SMART technique (Specific,
Measurable, Acceptable, Realistic and Time-Based).
Project Deliverables and Milestones – In this section, the main deliverables of the
project are specified. This is mainly done by developing a work breakdown structure that
includes the project phases, sub-phases, deliverables and work packages that are to be executed
during the project (Varajão, Colomo-Palacios and Silva 2017). Milestones are specific points
within the work breakdown structure that define the completion of a particular part of the project.
These milestones are also specified within the work breakdown structure.
Project Schedule – Using the work breakdown structure, the project schedule can be
developed by adding durations to each of the work packages. This is either done manually or
using suitable project management software that can compute the total duration of the project
from the durations of the work packages entered (Kerzner and Kerzner 2017). The schedule is
generally presented in the form of Gantt chart.
Assumptions and Constraints – This section describes the main assumptions that have
been made during planning of the project (Heldman 2018). The section also discusses about the
constraints that will be faced while executing the project.
Project Budget – In this section, the total budget of the project is estimated. In most of
the cases, there are two main budget estimation techniques utilized depending on the nature of
the project – top down estimation and bottom up estimation (Kloppenborg, Anantatmula and
Wells 2018). Bottom up estimation technique is more common and it utilizes the work
breakdown structure developed earlier.