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Model Guideline #12
Show me a typical
guideline for -
Project Charter,
Justification & Submission
Guideline Goal
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To provide a consistent format
for presenting the justification supporting an "Authorization for
Expenditure" (AFE) submission for the continuation of the project
through Phases 3 & 4 of the project life cycle
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It is designed to facilitate
management's selection and approval amongst competing projects
Expectations - 1
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Every project progressing from Phase 2 into Phases 3 & 4 will be
supported by a Project Charter
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Sometimes referred to as a Project Brief
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The Project Charter encompasses the Project Justification for
further expenditure on the project
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And the Project Implementation Plan
Expectations - 2
The Project Charter
will include:
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Complete Systems Scope Descriptions
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Updated Project Assumptions
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Upon which the Plan and Justification have been prepared
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The latest Priority Class
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The project's Key Success Indicators
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Providing guidance for the management of the project
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An AFE Class Estimate, converted to a working budget
Expectations - 3
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Approval for Expenditure must be
obtained before any commitments are made involving Phases 3 & 4
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The Justification section of the
Project Charter must conform to the organization's financial
standards
Particulars - 1
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The submission of a Project Charter is a major milestone control
point in the life of every project
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Approval results in a formal "Approval for Expenditure" (AFE)
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This AFE commits the organization to the continuation and completion
of the project
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And corporate funding and resources must be set aside
accordingly
Particulars - 2
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As a control point, it affords the organization an opportunity to
examine the project's documentation closely
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And accept it, amend it, recycle it or reject it.
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It's like a highway exit ramp - an opportunity to change
direction, or exit altogether if the project expectations no
longer meet corporate management's criteria
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Or if the necessary corporate resources are not available
Particulars - 3
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On some types of specialized project, involving very long lead times
for specialized items, an AFE may be approved for "Purchasing only"
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Where a project has a reasonable certainty of proceeding at some
time in the future
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Such as a project required to meet regulatory or safety
requirements
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In such cases, a full Project Charter submission approval must still
be in place before implementation is commenced
Definitions and Responsibility
Definitions to be
included
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Authorization for Expenditure, Project Justification, Project
Charter
Primary responsibility
Responsible to
