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Former Member

project chater


Please give me the definition of project chater.& how it is used in project preparaton steps in real time senirio.

Thanks ,


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    author's profile photo Former Member
    Former Member
    Posted on Oct 14, 2008 at 06:11 AM

    Hi Rashm,

    You can take a look at various Project Charter documents available in google search itself. It would give an overview of the contents in this document.




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  • author's profile photo Former Member
    Former Member
    Posted on Oct 14, 2008 at 06:00 AM



    Project Charter


    The project charter is a collection of documents that, together, establish the foundation of an SAP implementation project by defining its dimensions and completion criteria. Additionally, the charter specifies required project management, control structures, and other important factors.

    The project charter is a collaborative effort between the project manager and the project sponsor. Together, they define a common problem and solution. The project represents an agreement on and commitment to the deliverables of the project, as well as the time constraints, resources, standards, and budget of the project. The project charter is essential for managing the expectations of the projectu2019s participants.

    The charter is a dynamic document that may change throughout the projectu2019s duration. It includes the following:

    Mission statement

    Goals and objectives


    Critical success factors

    High-level project plan

    Organization/staffing requirements

    Management responsibility

    Resource allocation

    Cost/benefit analysis

    Risk assessment

    The creation of the project charter must be a formal process. For the sponsor, it thereby becomes a process of project justification and creation of internal support. Once the charter is ready, it should be reviewed by various groups in the sponsor environment, including:

    Information systems management

    User management

    The steering committee

    However, to the extent possible, all of these groups should participate in the creation of the charter, so that no surprises arise during final review.

    Mission Statement

    The mission statement is a concise summary of the purpose and goals of the project. Mission statements encourage motivation and support within the organization. Business drivers and objectives should be tightly tied to the scope and approach of an SAP implementation project. The statement clearly specifies:

    The customeru2019s expectations

    The teamu2019s primary customers

    The teamu2019s plans for meeting or exceeding those expectations

    The mission statement should focus on the main thrust of team effort, reflect the teamu2019s distinctive competence, and allow flexibility (but not so much as to lose focus), be consistent with the values, beliefs, and philosophy of the organization, and reflect attainable goals. An effective mission statement can be an important tool for increasing motivation and solidifying support within the organization.

    Goals and Objectives

    The Goals and Objectives section is more detailed than the mission statement. In this initial phase, it is crucial to identify why the project is taking place.

    Initially, the project sponsor may not grasp all the problems and opportunities that the project can address. It is crucial, at this stage, to evaluate and formulate the issues at hand, and explain how the project can remedy the situation, as specifically as possible. The projectu2019s success or failure will be judged against the project objectives.


    When identifying the scope of the SAP implementation project, evaluate what internal and external factors are driving its initiation.

    What are the business drivers (for example, competition, customers, government or regulation, suppliers) for installing SAP?

    What is the driving force for moving from the status quo? (People will resist change since there is comfort in the status quo.)

    Who are the right executives to sponsor the SAP implementation? Are they actively sponsoring the project? If not, how do we get them on board?

    What is the strategic significance of the project?

    Other questions to ask include:

    Where must we excel?

    Are we able to innovate, change, and improve to create value?

    How do we look to our customers?

    Are we looking at our bottom line?

    What will success look like from a team/business perspective?

    Why does our company need SAP?

    The scope is the most important element of the charter. It identifies what the project will produce, how long it will take to accomplish, and what costs are associated with it. The project sponsor must be involved in developing the scope, because it requires the strongest support/buy-in. It is crucial to project development and to the management of expectations.

    Critical Success Factors

    Critical success factors are the most significant requisites for successful project completion. They include the most important assumptions and expectations of management, user, and project team. Critical success factors identified for the SAP R/3 business system implementation include the following:

    The sponsor provides the leadership and functional skills to assume ownership of the project and responsibility for the deliverables.

    SAP provides the required leadership, SAP skills, and Best Business Practices to complement the project team members.

    Open and frequent communication occurs between project management and the steering committee.

    The implementation accommodates the business requirements of all processes defined in the project scope section.

    The project team is motivated, supportive, dedicated, and empowered.

    The issue resolution process is streamlined.

    The implementation is aggressively scheduled so that the benefits of SAPu2019s R/3 product can be fully realized as soon as possible.

    High-Level Project Plan

    The project plan establishes how progress is measured as well as controlled. Having a plan enables the project to continue in a stable manner and produce a controlled conclusion.

    The project plan also coordinates the time required to complete the project. Without such a plan, the project is useless and delivery dates are meaningless.

    Finally, estimates of the time and cost requirements of the project are essential to the project plan. They are useful in planning the project teamsu2019 work schedule and providing some control on a day-to-day basis. The estimates are constantly refined as work proceeds and knowledge increases.

    Other topics in the project plan include:


    Work plan


    Project organization

    Plans for risk management, quality assurance, and team training

    Detailed Project Plan

    The detailed project plan specifies the work to be done, when, and by whom. It identifies specific days and individuals. This plan is used throughout the implementation cycle. Topics include:

    Organization/staffing requirements

    Management responsibility

    Resource allocation

    Cost/benefit analysis

    Risk Assessment

    You should evaluate what the company risks by accepting the project and what the company risks by not accepting the project. In addition, the value-added result must be considered. Some factors to consider are:

    Lack of resources

    Compatibility across all regions of the country

    Gaining acceptance of the tools

    Training/Keeping current

    Departmentalized communications

    Potential for business errors/mistakes

    Cost of not doing the project now and doing it in the future

    Economies of scale

    Cost of being behind technology

    Cost of competition

    How much faster/better the company will operate

    How this transfers to customer service

    Phased Approach

    A phased implementation occurs when SAP components are implemented step-by-step, over a period of time.

    Factors favoring a phased approach include:

    Change occurs slowly, and not all sections of the company have to be reoriented at once.

    The expenditure is spread over a longer period of time.

    Project teams are generally smaller and thus easier to coordinate.

    Successes are quicker and more apparent in short-term.

    Factors against a phased approach include:

    Old systems must be serviced through interfaces that have to be created.

    The interface programs are no longer used afterwards.

    Advantages of the SAP R/3 System are felt slowly.

    Award if useful to you

    Edited by: narendran vajravelu on Oct 14, 2008 8:00 AM

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