Integration Management: Chapter -4,section (4.1) – Develop project Charter

Integration Management  Process :

4.1 Develop Project Charter
4.2 Develop Project Management Plan
4.3 Direct and Manage Project execution
4.4 Monitor and  Control Project  work
4.5 Perform integrated Change Control
4.6 Close Project or Phase

4.1 – Develop project Charter

A project charter is a written document that formally recognizes and authorize the existence of a new project. Its also documents initial requirements that satisfy stakeholders needs and objectives. On this basis project manager is identify and assigned as early as is feasible. PMI now recommended that the PM be assigned during development of the Charter but never later than the start of planning. The Charter

1. Formally initiate the project
2. Establishes a partnership between the performing and requesting organization
3. Authorize the PM to acquire and use organizational resources to accomplish project activity
4. Provide general , high level description of the project objective
5. Is assign by a senior manager , project initiator , or sponsor external to the project ( the PM may participate in creating the charter but not sign it ), there for the approval of a project and its associate funding occur external to  project boundaries .
6. Is developed during the concept (or initiating ) phase

Develop Project Charter
Input	Tool	Output
Project statement of work (SOW) Business case Contract  Enterprise Environment factor Organization process assets	External Judgment	Project charter

Five key input to develop a project charter

1. Project statement of work (SOW):  The SOW is a narrative description of the product and services to be deliver to the project. For internal projects, the initiator or sponsor provides the SOW based on business needs or opportunities. For external project, the SOW may be received from the customer as part of the proposal or bid document. The SOW is also on important document in the knowledge area for procurement management. It should contain

• Business Need 
• Product scope description
• Strategic Plan (How the project supports the organizational goals)

2. Business Case : Typically includes a description of the business need that is to be met as well as a cost -benefit analysis that justifies the expected investment.
3. Contract :  The contract is a input when ever the project is for an external customer.
4. Enterprise Environment Factors : Factors and systems that will influence the relative success of any project that is existing environment with in which a project will be initiated. Specific environment factors that may affect development of the charted include.
 

·         Government or industry standards

·         Organization infrastructure (do resources exist to supports the projects)

·         Marketplace conditions (is the projects feasible)

 5. Organizations Process assets: All of an organization’s processes, policies, procedures and knowledge bases that may influence the success of projects. They include  

·         Organizations standards processes and policies

·         Templates (specifically for project charters)

·         Historical information and lessons learned 

One Key tool for Develop project charter  

1.       Expert Judgment: Used to assess the accuracy of technical, management and other inputs in developing the charter. Such expertise comes from any group or individual with the appropriate knowledge, training and experience. Knowledge judgment is a tool for 19 of 42 processes (45%). Sources of expert judgment includes :

·         Other units within the organizations

·         Consultants

·         Key stakeholders (including customers)

·         Professional associations

·         Industry groups

·         PMO

One Key Output for Develop Project Charter

2.   Project Charter: In addition to the information provided in paragraph 4.1 above, charter links a new project to the on-going work of the organization. In some organizations, a project charter is not considered completes until some kind of preliminary analysis such as a needs assessment or feasibility study has been completed. A charted should documents

• Business   and customers needs
• Project purpose
• Project objectives and success criteria
• High-level project description and requirements (high –levels scope)
• High-level risks, budget and  milestone schedule
•  Approval requirements (acceptance criteria and who signs off on the project)
•  Assigned project manager with associated authority
• Name and authority of the sponsor

Other Information about the Project Charter: During the charter process, projects are often compared project against other projects in a process known as project selection. Project selection is important because few organizations can afford the resources to support all potential projects. In their most recent Role Delineation Study, PMI has stated “project selection is outside the scope of the PMP.” However, in the interest of comprehensive preparation, be aware of the following two categories of project selection method (this information has been historical tested):

1.       Benefit Measurement Methods:

·         Various benefit-cost models, for examples, BCR (Benefit-Cost Ratio)

·         Economic models (present value, IRR, payback period, and so on)

·         Scoring models

·         Comparative approaches (pair wise comparison)

·         Peer review (using selected experts)

·         Murder board

2.       Mathematical Models (also called constrained optimization): Includes a variety of mathematical programming models that are used less often because they are considerably more difficult to understand and to use. Notice that the four examples all end with the word “programming.” 

·         Linear and non-linear programming

·         Dynamic programming

·         Integer  programming

·         Multi-objective programming