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Management

Project charter for a fictitious

Preface/Abstract

The purpose of this document is to establish the project definition and define the deliverables, tasks, work to be performed and the approach regarding tools and methodology to accomplish the project.  The project organization will be mapped out through a hierarchical chart as well as a responsibility matrix to ensure everyone from the project champions to the customer know their roles and responsibilities throughout the project.  As will any project the triple constraint dilemma regarding time, resources and cost will be analyzed.  The ultimate result of this document is to provide the project scope, requirements related to success of the project and baseline the acceptance criteria needed to verify a successful project.  Within this document you will find the following:

  • What the Project encompasses
  • Benefits/Schedule/Cost Analysis
  • Scope
  • Objectives
  • Risks
  • Assumptions

Overview of the Project

Enterprise resource planning (ERP) is an approach to alleviate unnecessary business processes by reducing the amount of source and legacy systems into a wing-to-wing operating model which allows multi-directional data and information flow that is not available within the current configurations.  The span of impact is enterprise wide encompassing finance/accounting, manufacturing, sales, service, customer relationship management, supplier management, and human resources.

Purpose of the Project Charter

The purpose of this document is to establish the project definition and define the deliverables, tasks, work to be performed and the approach regarding tools and methodology to accomplish the project.  The project organization will be mapped out through a hierarchical chart as well as a responsibility matrix to ensure everyone from the project champions to the customer know their roles and responsibilities throughout the project.  As will any project the triple constraint dilemma regarding time, resources and cost will be analyzed.  The ultimate result of this document is to provide the project scope, requirements related to success of the project and baseline the acceptance criteria needed to verify a successful project.  Within this document you will find the following:

  • What the Project encompasses
  • Benefits/Schedule/Cost Analysis
  • Information on whether or not to accept the project
  • How the project fulfills strategic intents of the business
  • How the project aligns with the portfolio management strategy
  • Priority and Impact of the Project
  • Resource Needs regarding effort, capital and operating funding
  • Commitment needed from the organization

Project Objective and Scope

Purpose:

The purpose is to implement a wing-to-wing enterprise wide Enterprise Resource Planning program allowing all systems and employees to act as one team with one purpose.

Objectives:

Growth-A system that provides growth opportunities and is scalable with business needs.  This system will provide

Return on InvestmentThe return on investment for this program is estimated at 18% over the course of five (5) years.  This return on investment includes the estimated ROI for each section and module and does not include the cost avoidance or productivity increases.

Line of Sight to Data/Information for Key Performance MetricOn-demand reports, metrics and key performance indicators

Scope:

The Scope of ERP includes all functionality in all aspects of the business.  Each function will roll out on different schedules falling under the ultimate program of ERP.  The overall ERP program will have a project for each module as well as an integration of those modules into the entire ERP system.

Major Deliverables

  • Elimination of legacy systems
  • Wing-to-Wing integration
    • Procure to Pay Solution
    • Centralized Source of Data
  • Integrated Manufacturing, Sourcing and Scheduling
  • Communication Device
    • Internal
    • External
  • Removal and sun setting of systems
    • Focused resources
    • Support and Sustainability enhancements

Risks/Assumptions

Risks

  • Large project impacting every aspect of the corporation
  • Potential work stoppage and line closure if not strategically planned and tactically implemented
  • Failure to redesign business process
    • Implement due diligence when designing business processes
    • Do not over analyze the process/100% optimization is not the goal
    • Set the stage for future process improvement
  • Management Acceptance and Support
    • Management must support the changes
    • Management/Leadership must be the best proponents of the system
  • Software Design/Technology
    • Scalable to business needs
    • Adaptability
    • Integration cross-functionally
    • Technological based decisions should be made on existing capability not future state
  • User involvement and training
    • End Users must be committed and involved with the development and progress
    • End Users must be fully training

Assumptions

  • Leadership will lead the change
  • Promote acceptance throughout the corporation
  • Provide user/employee buy in by making them part of the change and not just an impacted recipient
  • Ensure scalability of tool
  • Technical feasibility test on all technology based tools
  • Utilize tested functionality and not untested methods
  • Accountability among all parties: Internal and External

Computer and internet access will be limited

Approach

The project management method used for the ERP program is between the traditional waterfall project management methodology and the agile project management methodology.  The graphs represent the typical methods in which the company goes through the toll-gates as wells as a graphical depiction of a “Total Project” look.  Each method has the inherent positive and negative aspects regarding successful project management and each have their place in the ERP process.  The business as a whole must adjust and redefine the typical Project Management methodology based upon the PMBOK (Project Management Book of Knowledge) while maintaining the tested values of the methodology.

The waterfall method follows the basic principle of Requirements, Design, Implementation, Validation and Maintenance.  This allows movement from one phase to the next only when all of the requirements are met in the prior phase.  The waterfall method spends a great deal of time gathering requirements and locks in the scope of the project from the very beginning.  Agile project management on the other had revolved around iterations or sprints broken down into very specific measures of time which are typically two (2) week intervals.  This method allows for a project to deliver to the business without fully knowing 100% of the program/projects requirements from the beginning.  This method is very useful in the software development lifecycle and allows the project team to maintain flexibility on overall project delivery and cost but firm on time and sprint deliverables.

The inherent nature of the potential changes increase the risk of the project failing.  To mitigate this risk it is necessary to implement the appropriate tools necessary to accomplish the job.  Considering the lack of initial project definition in terms of requirements and the amount of time provided by leadership to implement the first phase of the project the methodology in which to conduct the project is essential for a successful outcome.

The agile project management methodology will be utilized in this project because of the inherent uncertainty of each sections initial requirements as well as the need to maintain an “agile” and flexible nature when accomplishing business needs.  Below are examples of both methods and a description of what is needed at each review.