The Project Charter

The Project Charter

The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Student Notes:
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The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Student Notes:
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The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Student Notes:
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The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Student Notes:
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5
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Student Notes:
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6
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Student Notes:
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7
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Student Notes:
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8
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Student Notes:
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9
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Example: Reducing the cost of creating a subcontract from 5 person-days/contract (Process

Metric) to 1 person-day/contract, will result in a reduction of 4 person-days/contract, on
average. If 1000 contracts are issued yearly, on average, we can estimate a reduction in
total labor cost of 4,000 person-days. Assuming 250 person-days per person-year, this
results in an annual savings of 16 person-years. If a fully loaded person-year is worth
$100k, on average, we can estimate an annual cost reduction (Business Metric) of $1.6M.

Student Notes:
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The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

• Key Process Output Variables (KPOVs - the Y’s), measure the performance of the
completed process, as experienced by the Customers and/or the Business
• Examples: Customer Satisfaction, On Time Delivery, Cycle Time, Cost per Transaction
• Conversion Process Metrics (X’s), measure the effectiveness of the process to convert
Process Inputs into Process Outputs
• Examples: % Rework, Cycle Time for a portion of the process, Scrap
• Input Process Metrics (X’s), measure the quality and quantity of the inputs into the process
• Examples: Volume and Volume Variability, # of Customers, Quality of Orders, Quality of
Information, Database Accuracy

11
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Y=f(X) states that the result of any process (Y) is a function of the inputs into the process (X) and
the process for conversion of those inputs (also X) into the output.

Student Notes:
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The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Student Notes:
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13
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Student Notes:
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14
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Student Notes:
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15
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Student Notes:
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16
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Student Notes:
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17
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Problem
Statement

Business Impact
Student Notes:
___________________________________________________
Measures and
___________________________________________________ Goals

___________________________________________________ Project Scope

___________________________________________________
___________________________________________________ Project Timeline

___________________________________________________
Team Resources
___________________________________________________
18
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Problem
Statement

Business Impact
Student Notes:
___________________________________________________
Measures and
___________________________________________________ Goals

___________________________________________________ Project Scope

___________________________________________________
___________________________________________________ Project Timeline

___________________________________________________
Team Resources
___________________________________________________
19
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Problem
Statement

Business Impact
Student Notes:
___________________________________________________
Measures and
___________________________________________________ Goals

___________________________________________________ Project Scope

___________________________________________________
___________________________________________________ Project Timeline

___________________________________________________
Team Resources
___________________________________________________
20
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Problem
Statement

Business Impact
Student Notes:
___________________________________________________
Measures and
___________________________________________________ Goals

___________________________________________________ Project Scope

___________________________________________________
___________________________________________________ Project Timeline

___________________________________________________
Team Resources
___________________________________________________
21
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Problem
Statement

Business Impact
Student Notes:
___________________________________________________
Measures and
___________________________________________________ Goals

___________________________________________________ Project Scope

___________________________________________________
___________________________________________________ Project Timeline

___________________________________________________
Team Resources
___________________________________________________
22
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Problem
Statement

Business Impact
Student Notes:
___________________________________________________
Measures and
___________________________________________________ Goals

___________________________________________________ Project Scope

___________________________________________________
___________________________________________________ Project Timeline

___________________________________________________
Team Resources
___________________________________________________
23
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Problem
Statement

Business Impact
Student Notes:
___________________________________________________
Measures and
___________________________________________________ Goals

___________________________________________________ Project Scope

___________________________________________________
___________________________________________________ Project Timeline

___________________________________________________
Team Resources
___________________________________________________
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The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

§ Examples of Type I benefits include: Problem

Statement
- Overtime reduction due to process improvement
- Variable rate reductions (e.g. variable labor and other variable mfg.
costs) Business Impact
- Warranty reduction
- Period cost reduction (e.g. head count removal, not redeployment) Measures and
Goals
- Incremental revenue (traceable incremental volume and margin
realization)
- Space requirements for an activity are reduced enabling the company Project Scope
to vacate a facility or sublet the space to an external party
- Working capital reductions (benefit based on X% finance rate) Project Timeline
- Net proceeds (sales price less net book value) from the sale of excess
equipment resulting from process improvement or redesign
Team Resources

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The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

§ Examples of Type II benefits include: Problem

Statement
- Redeployment of headcount to a productive function with a
demonstrated need (would otherwise result in added headcount to
the enterprise or the position would be subcontracted) Business Impact
- Redeployment of a capital asset to an area with a demonstrated need
(would otherwise result in purchase or lease of equipment or floor Measures and
space, building externally or the function would be outsourced) Goals
- Capacity on a capital asset (i.e. piece of equipment) is increased and
the excess capacity is productively redeployed (otherwise would have
Project Scope
had to purchase or lease equipment or outsource the function)

Project Timeline

Team Resources

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The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Problem
§ Examples of Type III benefits include: Statement
- Increased revenue due to faster time to market for new products and
services
Business Impact
- Increased revenue due to increasing the number of qualified sales

Measures and
Goals
Student Notes:
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Project Timeline
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The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Problem
§ Examples of Type IV benefits include: Statement
- Improved regulatory compliance
Business Impact

Measures and
Goals
Student Notes:
___________________________________________________ Project Scope

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Project Timeline
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The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Problem
Statement

Business Impact
Student Notes:
___________________________________________________
Measures and
___________________________________________________ Goals

___________________________________________________ Project Scope

___________________________________________________
___________________________________________________ Project Timeline

___________________________________________________
Team Resources
___________________________________________________
29
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Problem
Statement

Business Impact
Student Notes:
___________________________________________________
Measures and
___________________________________________________ Goals

___________________________________________________ Project Scope

___________________________________________________
___________________________________________________ Project Timeline

___________________________________________________
Team Resources
___________________________________________________
30
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Problem
Statement

Business Impact
Student Notes:
___________________________________________________
Measures and
___________________________________________________ Goals

___________________________________________________ Project Scope

___________________________________________________
___________________________________________________ Project Timeline

___________________________________________________
Team Resources
___________________________________________________
31
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Problem
Statement

Business Impact
Student Notes:
___________________________________________________
Measures and
___________________________________________________ Goals

___________________________________________________ Project Scope

___________________________________________________
___________________________________________________ Project Timeline

___________________________________________________
Team Resources
___________________________________________________
32
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Problem
Statement

Business Impact
Student Notes:
___________________________________________________
Measures and
___________________________________________________ Goals

___________________________________________________ Project Scope

___________________________________________________
___________________________________________________ Project Timeline

___________________________________________________
Team Resources
___________________________________________________
33
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Problem
Statement

Business Impact
Student Notes:
___________________________________________________
Measures and
___________________________________________________ Goals

___________________________________________________ Project Scope

___________________________________________________
___________________________________________________ Project Timeline

___________________________________________________
Team Resources
___________________________________________________
34
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Problem
Statement

Business Impact
Student Notes:
___________________________________________________
Measures and
___________________________________________________ Goals

___________________________________________________ Project Scope

___________________________________________________
___________________________________________________ Project Timeline

___________________________________________________
Team Resources
___________________________________________________
35
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Problem
Statement

Business Impact
Student Notes:
___________________________________________________
Measures and
___________________________________________________ Goals

___________________________________________________ Project Scope

___________________________________________________
___________________________________________________ Project Timeline

___________________________________________________
Team Resources
___________________________________________________
36
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Problem
Statement

Business Impact
Student Notes:
___________________________________________________
Measures and
___________________________________________________ Goals

___________________________________________________ Project Scope

___________________________________________________
___________________________________________________ Project Timeline

___________________________________________________
Team Resources
___________________________________________________
37
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Problem
Statement

Business Impact
Student Notes:
___________________________________________________
Measures and
___________________________________________________ Goals

___________________________________________________ Project Scope

___________________________________________________
___________________________________________________ Project Timeline

___________________________________________________
Team Resources
___________________________________________________
38
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Problem
Statement

Business Impact
Student Notes:
___________________________________________________
Measures and
___________________________________________________ Goals

___________________________________________________ Project Scope

___________________________________________________
___________________________________________________ Project Timeline

___________________________________________________
Team Resources
___________________________________________________
39
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Problem
Statement

Business Impact
Student Notes:
___________________________________________________
Measures and
___________________________________________________ Goals

___________________________________________________ Project Scope

___________________________________________________
___________________________________________________ Project Timeline

___________________________________________________
Team Resources
___________________________________________________
40
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Problem
Statement

Business Impact
Student Notes:
___________________________________________________
Measures and
___________________________________________________ Goals

___________________________________________________ Project Scope

___________________________________________________
___________________________________________________ Project Timeline

___________________________________________________
Team Resources
___________________________________________________
41
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Problem
Statement

Business Impact
Student Notes:
___________________________________________________
Measures and
___________________________________________________ Goals

___________________________________________________ Project Scope

___________________________________________________
___________________________________________________ Project Timeline

___________________________________________________
Team Resources
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42
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Problem
Statement

Business Impact
Student Notes:
___________________________________________________
Measures and
___________________________________________________ Goals

___________________________________________________ Project Scope

___________________________________________________
___________________________________________________ Project Timeline

___________________________________________________
Team Resources
___________________________________________________
43
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Problem
Statement

Business Impact
Student Notes:
___________________________________________________
Measures and
___________________________________________________ Goals

___________________________________________________ Project Scope

___________________________________________________
___________________________________________________ Project Timeline

___________________________________________________
Team Resources
___________________________________________________
44
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Problem
Statement

Business Impact
Student Notes:
___________________________________________________
Measures and
___________________________________________________ Goals

___________________________________________________ Project Scope

___________________________________________________
___________________________________________________ Project Timeline

___________________________________________________
Team Resources
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45
 SIPOC Exercise
Process  Name: Process  Owner:

Suppliers Inputs Process Outputs Customers

The Project Charter

46
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Problem
Statement

Business Impact
Student Notes:
___________________________________________________
Measures and
___________________________________________________ Goals

___________________________________________________ Project Scope

___________________________________________________
___________________________________________________ Project Timeline

___________________________________________________
Team Resources
___________________________________________________
47
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Problem
Statement

Business Impact
Student Notes:
___________________________________________________
Measures and
___________________________________________________ Goals

___________________________________________________ Project Scope

___________________________________________________
___________________________________________________ Project Timeline

___________________________________________________
Team Resources
___________________________________________________
48
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Student Notes:
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49
The Project Charter

Introduction

Process and
Business
Metrics

Project
Charter
Overview

Project
Charter
Detailed
Elements

Student Notes:
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The Project Charter

This Training Manual and all materials, procedures and systems herein
contained or depicted (the "Manual") are the sole and exclusive property
of Firefly Consulting, LLC (“Firefly Consulting”) and the Sharing Group
(“Sharing Group”).
The contents hereof contain proprietary trade secrets that are the private
and confidential property of Firefly Consulting and the Sharing Group.
Unauthorized use, disclosure, or reproduction of any kind of any material
contained in this Manual is expressly prohibited. The contents hereof are
to be returned immediately upon termination of any relationship or
agreement giving user authorization to possess or use such information
or materials. Any unauthorized or illegal use shall subject the user to all
remedies, both legal and equitable, available to Firefly Consulting and the
Sharing Group. This Manual may be altered, amended or supplemented
by Firefly Consulting and the Sharing Group from time to time. In the
event of any inconsistency or conflict between a provision in this Manual
and any federal, provincial, state or local statute, regulation, order or
other law, such law will supersede the conflicting or inconsistent provision
(s) of this Manual in all properties subject to that law.

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