MNG91218 - Project Charter: Cloud ERP System for Blach Construction

This document presents a project charter for the development of a cloud-based ERP system for Blach Construction Company, aiming to address challenges with their current ERP system and facilitate organizational expansion. It includes a letter to the sponsor requesting a budget of AUD45,000, a scope overview defining in-scope and out-scope elements, a business case justifying the migration to the cloud, and a milestone schedule outlining key project phases and deadlines. The charter also incorporates a risk register identifying potential challenges and mitigation strategies, stakeholder analysis detailing roles and responsibilities, team operating principles, and lessons learned from the project management process. The commitment of the project team is emphasized to ensure the project's success within the defined timeline and budget.

Running head: PROJECT MANAGEMENT
Project management
Name of the Student
Name of the University
Author’s Note

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PROJECT MANAGEMENT
Letter to the sponsor
To,
The CEO,
Blach Construction Company
Date: 19.01.2019
Respected Sir/Ma’am
This is to inform you that from the last few years our organization is using ERP system in
order to handle the organizational operations however due to the rising problems and with the
aim of organizational expansion, it is quite necessary to move our ERP system to cloud. We
have come forward with the project in which we will develop a cloud based ERP system for
effectively handling our data and for this we need a budget of around AUD45, 000. The
project will be helpful in providing a number of benefits to our organization including
enhanced accessibility, boosting business value as well as empowering our IT department to
take strategic actions.
We are looking forward to your response
Thanking you,
(Project manager)

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Table of Contents
1. Project charter........................................................................................................................3
1.1 Scope Overview...................................................................................................................3
1.2 Business case........................................................................................................................3
1.3 Milestone schedule...............................................................................................................4
1.3.1 Milestone of the project................................................................................................4
1.3.2 Project schedule............................................................................................................4
1.3.3 Acceptance criteria........................................................................................................7
1.4 Risk register.........................................................................................................................7
1.5 Stakeholders.......................................................................................................................10
1.6 Team operating principles..................................................................................................13
1.7 Lessons learned..................................................................................................................13
1.8 Commitment.......................................................................................................................14
Bibliography.............................................................................................................................16
Appendices...............................................................................................................................18
Appendix 1: Background of the company...........................................................................18
Appendix 2: Gantt chart.......................................................................................................18

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1. Project charter
1.1 Scope Overview
In-scope
Project in-scope mainly includes the following:
 Development of cloud-based ERP system
 Transfer of knowledge and technology
 Data migration
 Work customization
 Testing system integration
Out-Scope
Out-scope of the project includes:
 Lack of proper facility of training
 Information related to the project suppliers are not added
1.2 Business case
The project reflects on the cloud ERP system development for Blach construction
company that has its offices in the central coast and Silicon Valley. Presently, the company
utilizes the ERP system in order to manage the work and for automating the business
functions. However, the organization faces some of the potential challenges including system
training, insufficient functional training facility, lack of budgeting and more. For resolving
the challenges, the Blach construction company wants to migrate to the cloud. It is identified
that the implementation of Cloud ERP system enhances the accessibility of features and
assists in quick implementation.

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1.3 Milestone schedule
1.3.1 Milestone of the project
The project milestone that is generally reflected in the table is provided below:
Milestone Completion date
Milestone 1: Completion of project initiation phase Fri 08-02-19
Milestone 2: Completion of planning phase Thu 07-03-19
Milestone 3: Completion of execution phase Fri 03-05-19
Milestone 4: Completion of closure phase Fri 17-05-19
1.3.2 Project schedule
The table reflects on the project schedule that is created for the “cloud ERP system
development for Blach construction company”.
WBS Task Name Duration Start Finish
0
Development of cloud-based
ERP system in Blach
construction company, Australia
85 days Mon 21-01-19 Fri 17-05-19
1 Initiation phase 15 days Mon 21-01-19 Fri 08-02-19
1.1
Developing proper business
plan
3 days Mon 21-01-19 Wed 23-01-19
1.2
Analyzing the financial profit
from the project
3 days Thu 24-01-19 Mon 28-01-19
1.3
Establishment of the project
charter
4 days Tue 29-01-19 Fri 01-02-19
1.4 Recruiting the staffs for the 5 days Mon 04-02-19 Fri 08-02-19

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project
1.5
Milestone 1: Completion of
project initiation phase
0 days Fri 08-02-19 Fri 08-02-19
2 Planning phase 24 days Mon 04-02-19 Thu 07-03-19
2.1 Developing plan for the project 3 days Mon 04-02-19 Wed 06-02-19
2.2
Resource development for the
project
2 days Thu 07-02-19 Fri 08-02-19
2.3
Developing financial plan for
the project
4 days Mon 11-02-19 Thu 14-02-19
2.4
Developing the quality analysis
plan
3 days Fri 15-02-19 Tue 19-02-19
2.5
Managing the risks of the
project
2 days Wed 20-02-19 Thu 21-02-19
2.6 Project acceptance planning 3 days Fri 22-02-19 Tue 26-02-19
2.7
Developing communication
plan
4 days Wed 27-02-19 Mon 04-03-19
2.8
Developing proper
procurement plan
3 days Tue 05-03-19 Thu 07-03-19
2.9
Milestone 2: Completion of
planning phase
0 days Thu 07-03-19 Thu 07-03-19
3 Execution phase 41 days Fri 08-03-19 Fri 03-05-19
3.1
Determining the project
requirement
5 days Fri 08-03-19 Thu 14-03-19
3.2 Developing cloud-based ERP 4 days Fri 15-03-19 Wed 20-03-19

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system
3.3 Customizing work 4 days Thu 21-03-19 Tue 26-03-19
3.4 Data migration 5 days Wed 27-03-19 Tue 02-04-19
3.5
Checking the infrastructure of
the system
4 days Wed 03-04-19 Mon 08-04-19
3.6 Proper customization 3 days Tue 09-04-19 Thu 11-04-19
3.7 Management of changes 4 days Fri 12-04-19 Wed 17-04-19
3.8 Data and knowledge transfer 4 days Thu 18-04-19 Tue 23-04-19
3.9 Undertaking testing 3 days Wed 24-04-19 Fri 26-04-19
3.10 Integration of system testing 2 days Mon 29-04-19 Tue 30-04-19
3.11 Testing of user -acceptance 3 days Wed 01-05-19 Fri 03-05-19
3.12
Milestone 3: Completion of
execution phase
0 days Fri 03-05-19 Fri 03-05-19
4 Closing phase 10 days Mon 06-05-19 Fri 17-05-19
4.1 Reviewing the project 4 days Mon 06-05-19 Thu 09-05-19
4.2 Sign off from the stakeholders 4 days Fri 10-05-19 Wed 15-05-19
4.3 Post go-live support 2 days Thu 16-05-19 Fri 17-05-19
4.4
Milestone 4: Completion of
closure phase
0 days Fri 17-05-19 Fri 17-05-19

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1.3.3 Acceptance criteria
The acceptance criteria that which is related with the project are mainly listed below:
Completion of project on deadline: If the cloud-based ERP system is completed
successfully within the 85days then the project will be accepted.
Completion of project within assumed budget: If the project will get completed
within the assumed budget that is around AUD 49, 440 then the project will be considered
under acceptance criteria.
Achievement of project objectives: If the goals and objectives of the project are
achieved successfully then it is considered as one of the important acceptance criteria.
1.4 Risk register
The risks, as well as challenges that can occur while developing the cloud ERP
system for the Blach construction company, is mainly provided in the table with proper risk
mitigation strategies.
ID Risk Description Impact Probability Mitigation
1 Improper
testing
Testing of a cloud-
based system is not
done properly after
the development
phase and as a
result, there are a
number of security
glitches that can
create a negative
High High Testing must
be done
properly for
making sure
that the
developed
project does
not create
any

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impact on the Blach
construction
company.
challenges
or issues.
2 Schedule
slippage
Due to improper
tracking of the
project schedule, it
is quite difficult to
complete each of the
project activities on
time and therefore
the project faces
delay.
High High Project
schedule
must be
tracked on
regular basis
for avoiding
schedule
slippage.
3 Lack of
budget
Due to improper
estimation, the
project manager
faces a number of
financial issues as
the budget that is
assigned for the
project is not
enough.
High High The project
budget that
is required
must be
assumed
before the
initiation
phase of the
project so
that the
project does
not face
financial

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issues and
challenges.
4 Inexperience
d team
members
Due to the improper
experience of the
team members, they
are unable to
complete the work
that is assigned to
them within the
deadline.
Medium Medium Hiring
experienced
team
members is
required so
that the
project work
can be
executed
successfully
with the help
of the team
members.
5 Improper
management
Due to improper
management, it is
quite difficult to
achieve the project
goals and objectives
within the deadline.
Medium Medium Proper
project
management
strategies
must be used
within the
project for
successfully
managing
the project.

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1.5 Stakeholders
The table that is provided below mainly reflects on the responsibilities, interest as
well as the power of the project stakeholders.
Stakeholders Roles and
responsibilities
Interest Power
Project planner Project planners are
the individuals who
work with the
project managers for
tracking the
schedule of the
project.
High Low
Project manager The project
managers take the
responsibility of
properly undertaking
all the project work
starting from the
initiation phase to
the closure phase of
the project.
Moreover, the
project manager
identifies the risks
that is associated
High High

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with the Cloud ERP
project.
Financial manager Financial manager
is the person who
handles the financial
reports, monitors
account and prepares
various types of
activity reports as
well as financial
forecast.
Low Low
Supervisor Supervisor the
person who is
mainly responsible
for organizing the
workflow by guiding
the team members of
the project.
Low High
Risk analyst Risk analyst is the
person who
identifies the risks
that are associated
with the project and
provides a
recommendation for
Low Low