MNG00785: Project Charter - Theoretical and Practical Aspects

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MNG00785PROJECT MANAGEMENT -
ASSIGNMENT 1

Contents
Part A: Theoretical explanation of each project element...........................................................3
Project Scope:.........................................................................................................................3
Business case:.........................................................................................................................3
Milestone Schedule and Deliverables:...................................................................................3
Risks, Assumptions and Constraints:.....................................................................................4
Resources estimate:................................................................................................................5
Stakeholders:..........................................................................................................................5
Team operating principles:.....................................................................................................5
Lessons learned:.....................................................................................................................6
Charter Signatures:.................................................................................................................6
Part B: Practical examples of charter.........................................................................................7
Letter to sponsor:....................................................................................................................7
Project scope......................................................................................................................8
Business Case.....................................................................................................................8
Milestone Schedule and Deliverables................................................................................8
Risk Assumptions and Constraints.....................................................................................9
Resource Estimate..............................................................................................................9
Stakeholder.........................................................................................................................9
Team operating principles:.................................................................................................9
Lessons learned:.................................................................................................................9
Charter Signatory.............................................................................................................10
References................................................................................................................................11

Part A: Theoretical explanation of each project element
The document which describe the objectives and the goals of the project, highlights the basic
overview of the project, all the risks which can occur during the project, all the stakeholders
which are the part of the project, all the constraints in the project along with the assumptions
taken in the project, advantages of the project, etc is generally termed as the Project Charter.
It also clarifies the timeline of the project, the duration for which the project will be executed,
the scheduling of each & every phase as well as the entire milestones involves in the project
from the initiation of the project, till the project ends (Hayes & Diane 2000,p. 14–23).
Project Matrix
Project/Selection Criteria Criteria A Criteria B
Weight: 10 5 Total
The shifting of insurance
company branch 8 3
(10*8=) 80 (5*3=) 15 (80+15=) 95
Project Scope:
Project Scope is the important part of the project charter which restricts the project by putting
some boundaries on the project as it describes the objectives or the goals of the project,
budgetary information in context of the project, all the tasks involved in the project,
deliverables and the outcome of the project, along with the total timeline of the project as
well as the deadline to accomplish the project. It will define which phase and part of the work
in the project will be evaluated and verified by whom. Generally, it is known by the name of
SOW. The acronym of SOW is statement of work. But, sometimes is known by the term
scope statement. The project also assists the project manager in taking decisions regarding the
day to day project activities (Yana Derenskaya 2018,p. 118–125).
Business case:
The part of the project charter which contains the primary and the most essential reasons
behind starting the project. The business case includes the following components:
● Statement of problem
● Summary of the project
● Problem analysis
● Possible options available
 Proportioning benefits to costs
 Solutions to the problem (Nguyen et al. 2018,p. 1054–1067).
Milestone Schedule and Deliverables:
The Milestone Schedule is the part of the charted which explains the each and every phase of
the project in the form of work status by highlighting the completion of each activity along
with the time taken to accomplish that particular task Project deliverable is the outcome of
the must be delivered to the client of the project. The deliverable can be tangible and
intangible (Bryde et al. 2007, p. 363–37).

Milestone Completion
Date
Acceptance
Criteria
Stakeholder
Judge
Finding the new location
25/3/19 Should be nearby
to old location
Branch
manager, CIT,
Administration
manager
Finalizing the deal 5/4/19 Should be less
than budget
CIT,
Administration
manager,
Branch manager
Packing of materials from old
branch
26/4/19 Nothing should
left
Labors
Transporting the material 27/4/19 Safely without
breaking Labors
Setting the office 28/4/19 Everything
should be
organized
CIT,
Administration
manager,
Branch manager
Starting of new office 29/4/19 Should be up to
date
CIT,
Administration
manager,
Branch manager
Risks, Assumptions and Constraints:
Assumptions are the certain factors or the belief which is considered in the project & which is
taken by considering them to change in the future. The assumptions in the project are taken
by data available from the previous work or based on the experience and the knowledge of
the project manager. Risks are the conditions or some uncertainty which will affect the
project in achieving the goals and objective of the project (Hartono et al. 2014,p. 400–411).
Project (Potential) Risks Risk Owner Contingency Plans
Labors are absent Labors Extra labors should be
arranged before.
Venue is not cleaned. Labors Should be cleaned before a
day
Project manager is not present. Branch
managers
Allocate all the
responsibilities to other 2
managers

Resources estimate:
Resource estimating is the process in the project in which the man (human resources),
material, machineries, equipment’s and other services required to implement the project are
estimated (J. Kloppenborg et al. 2013,p.115).
Funding: Funding of $100,000 by CEO
People: CIT, Administration manager, Branch manager, Labors & other
staffs
Equipment: All the equipments in the current office should be shifted to other
branch.
Other: Vehicle for transportation of material & boxes for packing.
Stakeholders:
Stakeholders in the project are the persons, individuals or the complete project team and
sometimes or the firm who are the part of the project and therefore they are always affected
by the results from the project. The project stakeholders can be the members of the project
team, sponsor of the project, the project manager, customer, etc. (Beringer et al. 2013,pp.
830–846).
Stakeholder Interest in Project Priority
CEO Sponsor the project High
Branch manager
To find new location , fix
the deal & administer
other activities High
CIT manager
Responsible for
allocating responsibilities
to labors Medium
Administration
manager
Cross checking
everything Medium
Labors
To pack the materials &
to transport them. Low
Team operating principles:
The team operating principles are the principles which contribute in preventing the conflicts
between the different team members or to minimize the conflicts. (Nelson et al.2013,p. 347–
358).
# Team operating principle
1 Everyone should cooperate with each other in the staff.

2 Labors should follow the instructions of managers.
3 Punctuality should be the priority for shifting on time.
Lessons learned:
The learning or the lessons one learned or achieved being the part of the project or by
completing the project achieved. This will help in sharing the experience gained from the
project.
# Lesson
1 Project management & other activities related to it.
2 Leadership is learned as one has to manage everything.
3 Managing, controlling & organizing.
Charter Signatures:
The lists of the individuals which are the signatories to the project came under the category of
the charted signatures. This is helpful in some approvals related to the project.
Sponsor Department / Organization Signature
CEO N/A
Project Manager Department / Organization Signature
Branch Manager N/A
Core Team Members Department/ Organization Signature
Branch Manager
N/A
CIT Manager
Administration manager

Part B: Practical examples of charter
Letter to sponsor:
March 22, 2019
To: The CEO, Insurance company
From: The Branch manager, Insurance company
Respected authority,
The branch of the insurance company is currently running at XYZ, suburban area on lease.
And soon, the lease for this place will be ending in the upcoming two months. The major
problem is that the landlord has denied renewing the lease due to certain reasons. So, we have
decided to shift our company branch near the area we are currently running our office. The
shifting of the office will be handled by me, the manager for communication and technology
(CIT) and the administration manager.
Thank you so much in advance on the behalf of every member of the branch.
Thanks & Regards
The branch manager
Insurance company

Table 1: Project charter
Project Charter
Project Title: The shifting of
insurance company
branch
Sponsor: CEO, insurance company
Project scope
The scope of the project is that the insurance company branch is shifted to new locality to expiry of
lease at current location.
Business Case The need of this project is shifting of the company is very essential
as the landlord has denied to renew & to continue the functioning of
the company it is important to shift.
Milestone Schedule and
Deliverables
Milestones:
Finding the new location: 25/3/19
Finalizing the deal: 5/4/19
Packing of materials from old branch: 26/4/19
Transporting the material: 27/4/19
Setting the office: 28/4/19
Starting of new office: 28/4/19
Deliverables: To shift the company to new location
Project Objectives To shift the company to new location.

Risk Assumptions and
Constraints
Constraints: The project needs to implement on Saturday and
Sunday.
The cost should not exceed $ 100,000.
Assumption: The shifting will be done on Saturday and Sunday.
Smooth operation will start from Monday.
Risk:
 Labors are absent.
 Venue is not cleaned.
 Project manager is not
present.
Measures for risk:
 Extra labors should be
arranged before.
 Should be cleaned before
a day.
 Allocate all the
responsibilities to other 2
managers.
Resource Estimate Cost of new venue: 75,000$
Transportation cost: 500$
Labor cost: 200$
Total costs : 75, 700$
Stakeholder Brach manager, CIT manager, administration manager :T
CEO: To approve the project and act as a sponsor o control the entire
project
Labors: To pack and shift the material
Team operating principles: All must cooperate to successfully shift to the new locations and the
employs should take responsibilities, follow instructions of
managers & punctuality.
Lessons learned: The project management, controlling & organizing is best lesson
from this project as well as the team work.
Project
Board/Steering
Group Members:
Branch manager
CIT manager
Administration
manager
Project Team
Members:
Labors of the
company
Other employs
Start Date: 25/03/19 Completion Date: 28/04/19

Charter Signatory Signed Date: 22/3/19
Approval from Sponsor: Approved Date: 23/3/19

References
Kloppenborg, T., Anantamula, V., Wells, K., & Kloppenborg, T. (2019). Contemporary
Project Management: organize, lead, plan, perform. (4TH ED.). New York: Cengage
Learning.
Hayes & Diane 2000, ‘1999 International Student Paper Award winner: Evaluation and
application of a project charter template to improve the project planning process’, Project
Management Journal, vol. 31, no. 1, pp. 14–23.
Yana Derenskaya, 2018, ‘PROJECT SCOPE MANAGEMENT PROCESS’, Baltic Journal of
Economic Studies, vol. 4, no. 1, pp. 118–125.
Nguyen, Na Mi, Killen, Catherine P., Kock, Alexander & GemüNden, Hans Georg, 2018,
‘The use of effectuation in projects: The influence of business case control, portfolio
monitoring intensity and project innovativeness’, International Journal of Project
Management, vol. 36, no. 8, pp. 1054–1067.
Bryde, David & Joby, Roger 2007, ‘Product-based planning: the importance of project and
project management deliverables in the management of clinical trials’, R & D Management,
vol. 37, no. 4, pp. 363–37.
Hartono, Budi, Sulistyo, Sinta R., Praftiwi, Poetry P. & Hasmoro, Danar 2014, ‘Project risk:
Theoretical concepts and stakeholders’ perspectives’, International Journal of Project
Management, vol. 32, no. 3, pp. 400–411.
Beringer, Claus, Jonas, Daniel & Kock, Alexander 2013, ‘Behavior of internal stakeholders
in project portfolio management and its impact on success’, International Journal of Project
Management, vol. 31, no. 6, pp. 830–846.
Nelson, Geoffrey, Macnaughton, Eric, Goering, Paula, Dudley, Michael, O’ Campo, Patricia,
Patterson, Michelle, Piat, Myra, Prévost, Natasha, Strehlau, Verena & Vallée, Catherine
2013, ‘Planning a Multi‐site, Complex Intervention for Homeless People with Mental Illness:
The Relationships Between the National Team and Local Sites in Canada’s At Home/Chez
Soi Project’, American Journal of Community Psychology, vol. 51, no. 3-4, pp. 347–358.