Project Charter – detailed real example for Project Planning phases

This is a real example of a Project Charter document that is extensively used in project management practices and processes. The most common use of the Project charter is in the early phases of planning. The content in this publication is a real example with some abstract guidance and definitions that may really help with creating a real Project Charter.

The sections contain real practical training from a student in the project management field. At the end of the publication, you can find the actual feedback of the class mentor.

Project Charter

Section 1. Purpose and benefits of the project.

To create an innovative product that will be useful for the household.
When we develop new products, we focus on how they would be made our users’ lives easier. Putting theirs first experiences, we strive to make their lives more enjoyable.
The consumer experience depends on the intuitiveness of the appliances, the quality
design and exceed consumer expectations through remarkable
results.
The mission of the client company:
Client’s business goals:
Objectives and criteria for achievement:

Section 2. Scope. The end result of the project.

A new and innovative washing machine will be created with the following five new ones
custom features:
Graphical interface
Touch screen
Own operating system
Ability to install additional apps to it from the App Store
Remote control capability

Section 3. Project Milestones – Important milestones in the project

  • Meetings on the project board
  • Other important meetings such as work meetings, especially if they are fixed on time, because it is difficult to bring everyone together.
  • Deadlines for implementation of project components.
  • Results due to other projects.
  • Project turning points at which you are moving to another state or phase.
  • Starting a prototype building phase
  • Completion of the prototype building phase
  • Starting a Product Design Phase – Product Idea with all the details and functionality
  • Complete product design phase – product idea with all details and functionality
  • Starting a technical phase of product creation
  • Completion of the technical phase of product creation
  • Start the Create and Configure Touch Screen Phase for the product
  • Finish creating and configuring a touch screen for the product
  • Starting a self-build operating phase
  • Completing the degeneration phase of your own operating system
  • The launch phase of software development to be connected to the App Store and be able to download apps
  • Completion of Phase Phase Development of a software application to be connected to the App Store and be able to download apps
  • Starting a product testing phase
  • Completion of the product testing phase
  • Starting a phase of eventual product rework
  • Completion of the eventual product rework phase
  • Launching a product delivery phase among real customers
  • Launching a product delivery phase among real customers

Section 4. Key Stakeholders

  • Client:
  • Contact persons:
  • Sponsor:
  • CEO:
  • Product Director:
  • Project Manager:
  • A marketing manager:
  • Product team:

Section 5. Project planning

  • Survey of user requirements for the system
  • Development of the methodology of the study – 1 calendar month
  • Preparation of database with potential users – 1 calendar month
  • Completing the survey – 2 calendar months
  • Analysis of the results and preparation of the study report – 1 calendar month
  • Study of the legal and regulatory framework
  • Identification of information sources – 1 calendar month
  • Completing the survey – 2 calendar months
  • Analysis of the results and preparation of the study report – 1 calendar month
  • Development of a draft information system
  • Creating algorithms to work with users of the product – 2 calendar months
  • Database model creation – 2 calendar months
  • A timetable is a breakdown of activities and tasks in the project in time.
  • A methodology for conducting the consumer survey has been prepared requirements (report, 1 issue)
  • A database of potential users has been prepared to participate in the study (list 1 issue, 3000 contacts)
  • A survey was conducted (2800 questionnaires completed)
  • A study analysis report and conclusions (report, 1 issue)

Section 6. Budget. Project Budget

Cost types according to their purpose

  • Labor expenses
  • Equipment costs
  • Subcontracting costs – supplies or services
  • Travel expenses
  • Project management costs
  • Other direct costs – those that do not fall into the above categories
  • Variable costs and fixed costs
  • Cost variables whose total amount is proportional to the volume of work are variable. A typical example is labor costs.
  • Fixed costs whose quantity is not strongly influenced by the volume of work.

For example, expenses for business trips, expenses for printing materials, for visualization

Section 7. Project Risks.

Risks due to the wrong choice of economic goals of the innovation project due to unjustified determination of the priorities of the company strategy. These include:

  • wrong assessment by the company’s managers of its short and long-term interests (the latter is possible if in the course of the implementation of the innovative project the company changes ownership);
  • errors in the assessment of the current state and immediate prospects for market development.
  • inadequate needs assessment in the area of ​​consumption and own production;
  • insufficient knowledge of consumer requirements and their needs, insufficient awareness of the most pressing problems of own production; this is especially true of productions created by owners, which tend to overstate the possibilities and underestimate the complexity of their production.

Risk on the schedule that activities will take more than expected. Time limits in the schedule usually increase costs and delay the benefits of the project, which can lead to a loss of competitive advantage.

Risk of efficiency, the risk that the project will fail to achieve results that meet the specifications of the project.

Marketing risks of capital expenditures for the purchase and current supply of the project

Risks of not providing the project with financial resources. Cost risk, usual escalation of project costs due to poor cost estimation and accuracy of implementation.

Strategic risks are the result of errors in strategy, such as the choice of technology that cannot be made to work.

Operational risk involves the risks of poor performance and the resolution of problems such as procurement, production, and distribution.

Market risks include competition, currency, commodity markets, and interest rate risk, as well as liquidity and credit risk.

Legal risks arise from legal and regulatory obligations, including contractual and litigation risks against the organization.

Section 8. Constraints

We may have flexible constraints that take into account the dependencies between the tasks and do not tie the task to a specific date.

Type restrictions As soon as possible. The organization sets the task of completing the restriction as early as possible, taking into account the relationship between the tasks and other factors affecting the design of the project schedule. This limit is used as the default constraint for projects in which the implementation schedule is calculated from the start date of the project.

Restrictions of type At the latest. The task with this restriction shall be completed as soon as possible, taking into account the relationship between the tasks and other factors affecting the design of the project schedule.

This limit is used as the default constraint for projects in which the implementation schedule is calculated from the date the project is completed.

Moderately strict restrictions:

End not later than.

When designing the project schedule, the company sets the task with this constraint so that it is completed no later than the specified date. This restriction is automatically imposed if we specify the end date of the project task with the scheduling of the project completion date.

Start no later than.

A task with this restriction must start no later than the specified date. This restriction is automatically imposed if we specify the start date of the project task with the scheduling of the project completion date.

End not earlier.

A task with this limit cannot be completed earlier than the specified date. This restriction is automatically imposed if we specify the end date of the project task with the formation of a schedule from the start date of the project.

Start no earlier.

A task with this limit cannot be started earlier than the specified date. This restriction is automatically imposed if we specify the start date of the project task with the scheduling of the project start date.

Fixed start. This restriction firmly determines the start date of the task.

Fixed end. This restriction strictly determines the date of completion of the task.

Uncontrolled restrictions such as: rules, rules, technologies, external environment, politics, economics, ethics, culture, etc.

Technical or logical limitations.

Section 9. Assumptions

For example, the Project Manager requires the approval of the design prototype by the client during the project. The project cannot proceed without this approval.
Project Assumption – “Approval will probably come within 2 weeks of the project prototype being submitted.

Review the competition again before launching the product.

The importance of social networks is increasing. We can focus our marketing efforts on social media without losing branding.

Frequent bug checks on the system should be performed so that they do not exceed 10% of the stage development.

The system will be built using an ASP model.

All data will be available in XML format.

Our in-house teams will help with the development of the project.

After completing the step to determine the reliability of the functionality, users see weaknesses that developers do not suspect and suggestions for improvement.

Section 10. Dependencies

The task may be completed at some of the stages faster or earlier if we have more resources.

We will have logical dependencies – we cannot start designing a product without having a prototype of the product.

We cannot launch a product in a real environment without testing.

Mentor’s feedback about the Project Charter document

Congratulations on the detailed work! Excellent presentation on all topics!

Project Milestones:

“Project Board meetings may not be included, so these events may not be relevant to the project development, its timing and parameters.”

You will not need to watch and monitor these events.

“Other important meetings such as work meetings, especially if they are fixed in time because it is difficult to get everyone together.”

If you don’t have a clear definition for a milestone, then you better not place it. This can easily be removed.

The following three may also not fit, as they do not describe anything specific, and in fact, your first milestone may be Starting a Prototype Phase

If you are expecting deliveries and supplies for the product, you may mention milestone.

“Study of the legal and regulatory framework”

It is a good idea to always start with this practice because if you find that an outside regulatory body will be a serious obstacle to your project, you will save yourself a lot of time in your next research activities and efforts.

“Section 8. Constraints”

You have described all possible types of restrictions in an excellent and detailed way. Very good sections!

In a real-world environment, such an abstract does not require an abstract description of the types of constraints. The document will simply have a larger volume.

Look for real restrictions that can be easily defined, such as

  • Insufficient funding
  • Not enough staff
  • Lack of a rich network of partners and suppliers
  • Specific legal restrictions cited
  • Etc.

Problems that senior management can more easily focus on and try to solve, or if the constraints are not serious, give up their project ideas.

Assumptions

Here is a place to describe all the positive factors that will influence the successful work of the project. For example:

  • Strong competencies of teams in the field
  • Available technology, know-how, or easy ways to acquire
  • Sufficient finances
  • Cheap material suppliers
  • etc.

The last point in Section 11. Completing the project and handing it over to the client may be superfluous, unless you add something important that needs to be emphasized for the moment regarding the topic of handing over the project and clients.

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