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4: Project Integration Management
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Document project assumptions Develop and analyze cost-benefits
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Where Does a Project Charter Come From
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The project charter can come in many forms and in different names It may be formal, such as a contract or letter of agreement (LOA), or informal, such as a call or e-mail from your boss or the customer telling you to proceed with the project or phase It is best if the charter is in writing to minimize confusion and to meet audit requirements To clarify the term project phase, let s use as an example a specific project to estimate the cost of designing a new fuel-efficient car The approval may be to conduct a preliminary review or feasibility study (concept phase analysis) to determine whether there is sufficient business justification to proceed The prudent approach to any project is to first determine whether it is doable or can be cost-justified before the company commits to the project in its entirety In today s economy, many companies are not able to afford long-term investments and need to realize benefits and ROI (return on investment) sooner than later, thus the need to take projects in smaller steps using fewer investment dollars
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Sample Components of a Project Charter Template
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As mentioned, many great templates and forms are available that provide a good starting place for documents such as the project charter Here is a summary list of the key components of a sample project charter template: 10: General project information
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11: Project name 12: Sponsors (who is funding or will be the primary benefactor of the project) 13: Document history (for tracking changes and version control)
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20: Identify stakeholders and contacts (project manager, team lead, etc) 30: Project description
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31: Project purpose, business need, opportunity, or justification (problem to be solved) 32: Project objectives (measurable outcomes, such as reduce cost, increase performance, increase sales, etc) 33: Deliverables or major milestones (products of the project, such as working software code, training manual, completed call center, user test document, etc)
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34: What the project is intended to do and not do 35: Risks or constraints (barriers/limitations)
40: Financial or resource information
41: Budget assumptions 42: Reporting strategy (frequency and format) 43: Type of estimate 44: Funding source(s)
50: Acceptance criteria
51: Approvers 52: Change control process
60: Final signoff (formal acceptance signatures) of the charter[3]
NOTE
When filling out a template, remember that all projects are unique in some way, so the template might not fit the project exactly Therefore, consider all the inputs, tools and techniques, and outputs of the processes to ensure you haven t missed anything
Case Study: Sample Project Charter Alternative
In our case study, the Budweiser Events Center (BEC) uses their contract with the client (artist, performer, promoting agent, or organization) as their project charter The contract also serves as important input to the scope of the project In the case of BEC, contracts usually have a rider (technical data sheet) that specifies the artist s (organization s) requirements, which vary based on the nature of the event Here are a few of the key components:
Compensation and how payment is made/received Event date and ticket on-sale date Advertisement and merchandise sales Contract cancellation and liability insurance Permits needed and special security/staffing Advancing requirements such as the following:
4: Project Integration Management
Production setup requirements (power, rentals, spotlights, and so on) Dressing rooms needed and special requirements such as food and beverage Stage configuration, sound and audio/video (AV) special effects, and other lighting Backline band equipment or gear not being provided by the band/performer
These requirements are then documented in an event data sheet that serves as the formal communications document for the event The next step is then to begin the setup process for that particular event This is referred to as building conversion or changeover, and the process involves the following steps:
1 Transferring the physical setup requirements from the previous event to the next
scheduled event
2 Scheduling the labor for the event (ticket sellers, merchandise sellers, ushers, ticket
takers, security, parking, law enforcement, fire marshal, medical, conversion labor, cleaners, operations staff, fire panel monitor, house audio/visual, electricians, stagehand labor, runners, and supervising staff)
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