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It serves two primary purposes: 1) it provides a high-level definition of the project requirements and 2) it formally authorizes the existence of the project. It also explains the reason for project identification and selection. WHAT Develop Project Charter Is. The key benefit of this process is a well-defined project start and project boundaries, project manager’s name & authority, key budget, timelines, risks etc. There will be at least 10+ questions about the Project Charter on the PMP exam. This is to ensure that the integrity & sanctity of the project charter is maintained, and anyone is not allowed to change the charter at any time, just because they think a change is important. Since this is a formal document of the project, it would require board approvals. We will cover the project scope in detail in the Scope Management chapter. The project manager and project sponsor (or the person who kicked off the work, if a longer-term sponsor has yet to be appointed) should sign and date the document. Do you need to memorize ITTO for the PMP Exam, Difference between Contract Closure & Administrative Closure for PMP Exam. This document is developed once and is not usually changed unless there is a significant change in the environment, scope, schedule, resources, budget, or stakeholders. The PMP exam could include six to ten questions on project charter. It is considered ‘external’ because they are not involved in the day to day running of the project. It will pay off well at the end. They were skeptical about Project Charter purposeand thought that its creation would be a futile exercis… Identification of project assumptions: There are multiple activities which are done on the basis of organizational and project environmental factors. And 13% questions come from the Initiating process group (See PMP Exam Question Distribution Chart here). After all, you can not appoint yourself to be the project manager… meaning you can’t sign your own appointment letter. It begins the process of defining the roles and responsibilities of those participants and outlines the objectives and goals of the project. What is the Performance Measurement Baseline? A business case identifies the business need for doing a project. All the stakeholders of the project are informed about their roles and the level of efforts required from their end. Project charter objectives are to address the “why, who, what, when, where, and … Let’s understand the ITTOs for the Develop Project Charter process, in detail. It is not in the authority of the Projectmanager to approve changes in the charter. But then, who signs it anyway? All Notify me of follow-up comments by email. To have a Project charter is considered as Industry best practice. PMBOK, 5th Edition, Section 184.108.40.206, “Project Charter” The project charter is the document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities. A Project charter, on the other hand, is a formal document based on the SoW which is submitted for authorization. Don’t start a project to just “improve customer satisfaction”, or “increase topline revenue”, or “increase sales”, or “build better relationships with the customer” or “build a high speed train network”. An understanding of the components of the project charter, effective use of each component … But since the project charter is signed by the Project Sponsor (or any other manager external to the project – generally senior to the project manager), any changes to the project charter should also be approved by the Sponsor or the Change Control Board (CCB) appointed by the Sponsor. Develop Project Charter | PMP Guide share Developing a project charter is the process of developing a document that formally authorizes the existence of a project and gives the project manager the authority to apply the organizational resources to the activities of the project. It empowers the project manager to deliver. Identification of project scope: Scoping is a critical activity to create a boundary of what work to be done and what not to be done. What questions do you have regarding the PMP Exam? It belongs to the Initiating process group, and the Integration Management Knowledge Area. Wrap Up. After all, these are just guidelines, not a rule book. Having said that, a change of project manager should not have any impact on the Project Charter. The project manager CAN NOT sign the project charter, even though the project manager might have created the document. Project Statement of Work (SOW) includes the business need and the overview of the qualities/characteristicsof deliverables; 2. A template is an example of an enterprise environmental factor. Thus, it is important to uncover all the assumptions. Experts are generally available, but you may have to find them within the company, with the help of your sponsor or PMO. Configuration Management & Change Management System: Differences, Simple Formula Questions Part 1 – Three Point Estimates, How to Answer Situational Questions in the PMP Exam, PMP Exam Testing Center Moves to Pearson VUE, Project Need / Opportunity / Justification for the Project. However, for the PMP exam perspective, remember that it is the “manager external to the project” who signs the project charter. A project charter, on the other hand is based on the SOW and gives the project manager the authority for a project kick-off. Identification of high-level project requirements and objectives: Detailed level requirements and objectives are not possible at this stage of the project. The charter also identifies the main stakeholders and defines the authority of the project manager. Who will be affected by the project (influence the project), as known to date? Thus, making the Develop Project Charter an integration process. A face to face training is also good, but is often crammed in a short span of 4-5 days, and leads to information overload… which hinders memory retention. Microsoft and MS Project are the registered trademarks of the Microsoft Corporation. According to the PMBOK Guide, the project charter is an official document that formally authorizes a project or a phase and documenting initial requirements that satisfies stakeholders’ need and expectation. The project charter includes the following: Measurable Project Objectives and related success criteria, High-level Project description and boundaries, Project approval requirements (i.e, What constitutes project success, who decides the project is successful, and who signs off on the project), Assigned Project manager, responsibility, and authority level, Name and authority of the sponsor or another person (s) authorizing the project charter. Identification of project success criteria: Project Manager should also identify the success criteria of the project. Join over 18.000 visitors who are receiving our PMP Tips & Tricks to Pass the PMP exam in their First Attempt. Basis the given constraints and planning the project at a high level description of the project resources and supplements. Point for your projects, is a registered trade mark of International Association for six Sigma Certification a! 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