Project Charter Document
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1 Project Charter Document I. General Information Project Name Sponsor Name BLOCPLAN Project Number 1 John Smith Date 02/08/2015 II. Project Overview Describe the product or service of the project, the reason the project was undertaken, and the purpose of the project. RFID tags can be placed on raw materials, consumer goods, etc. When the tag is activated, the products movement is transmitted to a centralized database. Management can track where products are going and what they are doing. RFID implementation will assist with a strategic layout (BLOCPLAN). Creating time efficient processes and advanced procedures will allow the enterprise to reduce expenses and maximize profits. ACME will maintain existing accounts while proactively becoming more marketable to new customers.
2 III. Project Objectives Describe the overall objectives of the project and what factors will determine the success of the project. Primary Objectives: 1. Reduce labor expense by $45,000 annually 2. Improved speed and customer satisfaction 3. Less shrinkage and improved inventory management 4. Staying current with technological trends 5. Accomodate economies of scale w/large accounts. Successful integration and support from leadership will contribute greatly to the success of the project. Employee training and support will need to be provided to ensure the enterprise goals are aligned. IV. Requirements Describe the expectations and requirements of the customer, sponsor, and stakeholders. Customer: Require implementation of align technology. Walmart is the only account requiring RFID technology but company's like Best Buy and Target are following suit. RFID is the way the future of commerce is headed. Sponsor: John Smith presented BLOCPLAN to leadership and received their approval. He expects the project will be fulfilled quickly, efficiently, and accurately. Successful implementation and execution will catapult his career. Stakeholders: Decreased expenses, increased profits, and maximum efficiency.
3 V. Business Justification State the reason this project is needed and what problem or issue the project will resolve. Describe the impacts to the organization if the project is not approved. BLOCPLAN is needed to implement the newest RFID technology and strategically layout the warehouse facility. Executing this project will eliminate timely inventory management, product sortation, location tracking, and inventory management. It will streamline the reporting process and minimize inventory shrinkage. If the approval is not obtained, the enterprise will likely lose customers now and in the future. Additionally, they will be less marketable closing new accounts. VI. Resource Costs and Estimates Provide cost estimates if known, including monies already expended such as a feasibility study or consulting times. As outlined in the Product Concept Document, the initial investment cost for the project is $100k. Additionally, it will require $25k annually for system maintainence and RFID tags. The result from product automation and optimized storage/handling amount to $45k cost reduction annually. ACME will break-even in 6.5 yrs. This investment cost represents a very small portion of ACME's shipping budget. Long-term outlook is extremely promising considering large companies are incorporating RFID technology into their management systems.
4 VII. Roles and Responsibilities List the stakeholders and their responsibilities. 1. Project Manager (Luis Silva) - Communicates and coordinates activities, roles, and responsibilities. 2. Sponsor (John Smith) - Oversees project, provides advice, makes decisions based on budget and direction. 3. Functional Managers - Executes project categories and delivers results (Install RFID tags, gates, etc). 4. Customer - Adapting systems to fit business needs. 5. Project Team - Reports to PM, executes the project. 6. Suppliers - Provides products and services needed to complete the project. VIII. Signatures: project sponsor, project manager, key stakeholders, customers, and vendors.
5 IX. Attachments List the attachments to the charter here.
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