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Project Charter

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Autor:  anton  26 December 2010
Tags:  Project,  Charter
Words: 2295   |   Pages: 10
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Pulp Mill Pumping System Upgrade

Project Charter

Document History:

Date Version # Author(s) Description of Changes

28 Sep 2004 00 K. Law Initial Draft

Table of Contents

0. Purpose of This Document 3

0.1. Document Purpose 3

0.2. Reviewers 3

1. Executive Summary 4

1.1. Project Background, Purpose and Objectives 4

1.2. Business Needs 4

1.3. Schedule 4

1.4. Cost 4

1.5. Key Project Stakeholders 4

1.6. Authorization to Proceed 4

2. Project Framework 5

2.1. Project Background 5

2.2. Business Needs/Justification 5

2.3. Detailed Project Objective 5

2.4. Project Sponsor/Stakeholders 5

2.5. Scope 5

2.6. Assumptions 6

2.7. Constraints 6

2.8. Budget 6

2.9. High-Level Project Risks 6

2.10. Critical Success Factors 6

2.11. Completion Criteria 7

3. Project Approach 7

3.1. Approach 7

3.2. Schedule 7

3.3. Milestones 7

4. Project Resources, Organization, Roles and Responsibilities 8

4.1. Key Resource Requirements 8

4.2. Roles and Responsibilities of the Project Manager 8

4.2.1. Responsibility 8

4.2.2. Authority 8

5. Project Delivery Activities 9

5.1. Status Meetings and Status Reporting 9

5.2. Issue Management 9

5.3. Scope Management 9

0. Purpose of This Document

0.1. Document Purpose

The primary purposes of the Project Charter are to formally establish the existence of the project; give the project manager authority; and establish the goals and objectives of the project.

The Project Charter provides the high-level definition of the project to facilitate understanding between all project participants. It provides a mechanism to communicate a common understanding of the project scope and the context under which the project is being undertaken. It represents what the Client and the Service Provider agree to have delivered during the term of the project and the project methodology that is to be undertaken. The degree of detail provided in the Project Charter will be based on the size and impact of the project.

Everyone who has a role in the project should have a common understanding of:

 Why the project is being undertaken,

 What their roles is and what is expected of them,

 What and who will be affected by the project,

 How the expected results will be delivered,

 When the results are to be delivered, and

 How scope changes are to be addressed and managed.

Note: If changes arise during the course of this project, they will be addressed via a Scope Revision Request, which will be discussed in this document.

0.2. Reviewers

The primary reviewers for the Project Charter are:

 The Business Sponsor,

 The Service Provider,

 The Project Manager, and

 Selected Project Staff.

1. Executive Summary

1.1. Project Background, Purpose and Objectives

The Executive Summary should be written last and should reflect the key information contained in the remainder of this document. You should try to limit the information in this section to as few pages as possible because it should reflect the more detailed information in the subsequent sections. This section summarizes the project's background, business need and objectives.

Weyerhaeuser Company (the "Client") produces over 800 tonnes of pulp daily at its Pulp Mill located in Kamloops, BC. The operations staff at the Kamloops Pulp Mill is experiencing reliability problems in their thick stock pumping system on one of the production lines. The existing pumping system is more than 50 years old and is prone to mechanical problems, causing downtime and, in turn, decreases pulp production. Maintenance records on this system show increasing costs for the past 5 years.

The engineering department at Kamloops Pulp Mill has engaged AMEC Americas Limited ("AMEC") to design a pumping system that will replace the existing deteriorating system. The project design will be performed by AMEC at its Vancouver office. Construction will be by the Client's internal construction crew or by outside contractors.

1.2. Business Needs

Weyerhaeuser has been identified as one of AMEC's key clients by senior management and this project continues to align with the company's business strategy.

1.3. Schedule

The project is expected to start on March 1, 2003 and be completed in 8 months.

1.4. Cost

The budget estimate for the overall project is $500,000 CDN.

1.5. Key Project Stakeholders

This section summarizes the key project stakeholders. The key stakeholders of this project are:

В• Project Manager (Kim Law)

В• Client's Representative (Jim Brown)

В• Project Team

В• Weyco Kamloops Maintenance Workers (end users who will install, repair and maintain the system)

В• Weyco Kamloops Control Room Operators (end users who will operate the system)

1.6. Authorization to Proceed

This Project Charter is approved and accepted by the Executive Sponsor and the Client. Before granting approval to proceed, all signatures requested in section 1.5 must be obtained. By signing this document, the following people authorize the project to proceed based on the scope of work, project schedule and costs documented in this Project Charter:

Signature: Date:

Executive Sponsor Jack Dosenberg, P.Eng.

Client Representative Jim Brown,P.Eng.

2. Project Framework

2.1. Project Background

Weyerhaeuser Company (the "Client") produces over 800 tonnes of pulp daily at its Pulp Mill located in Kamloops, BC. The operations staff at the Kamloops Pulp Mill is experiencing reliability problems in their thick stock pumping system on one of the production lines. The existing pumping system is more than 50 years old and is prone to mechanical problems, causing downtime and, in turn, decreases pulp production. Maintenance records on this system show increasing costs for the past 5 years.

The engineering department at Kamloops Pulp Mill has engaged AMEC Americas Limited ("AMEC") to design a pumping system that will replace the existing deteriorating system. The project design will be performed by AMEC at its Vancouver office. Construction will be by the Client's internal construction crew or by outside contractors.

2.2. Business Needs/Justification

This project has arisen due to the requirements of the Client for a technical upgrade on one of their pulp production lines. Weyerhaeuser has been identified as one of AMEC's key clients by senior management and this project continues to align with the company's business strategy. AMEC wants to continue being identified as Weyerhaeuser's preferred engineering partner in order to obtain a sustained backlog of work.

AMEC has vast experience and expertise in the pulp and paper industry. Technical expertise on the subject of stock pumping is readily available.

A feasibility analysis was conducted using the ROAM method, with the result being in the "High Benefit В– Low Risk" quadrant of the Risk Benefit Analysis Matrix.

2.3. Detailed Project Objective

The objective of the project is to design an upgraded pulp stock pumping system and install it during the annual production line maintenance shut-down to achieve a 98% uptime during production.

2.4. Project Sponsor/Stakeholders

In addition to the Project Sponsor, the stakeholders of this project are the following:

В• Project Manager (Kim Law)

В• Client's Representative (Jim Brown)

В• Project Team

В• Weyco Kamloops Maintenance Workers (end users who will install, repair and maintain the system)

В• Weyco Kamloops Control Room Operators (end users who will operate the system)

В• Weyco Kamloops Process Engineer (end user who maintains the end product's quality)

В• Project Vendors

2.5. Scope

Work in scope:

В• Engineering analysis of the existing pumping system

В• Structural engineering, mechanical, piping and electrical engineering design of an new pulp stock pumping system

В• Procurement of equipment and materials for construction

В• Liaison with vendors and contractors

В• Construction management and supervision

В• Training of staff on operating the new system

Work out of scope:

В• Production line testing to determine the system's effect on the pulp quality.

2.6. Assumptions

These are the factors that are considered to be true, real or certain about the project:

В• the annual maintenance outage is 10 continuous days or longer

2.7. Constraints

The following are high-level factors that limit options and affect the requirements:

В• the system must be installed during the annual outage and its construction must not delay the start up of the production line

В• the system must be installed at the same location of the existing system В– it must not take an increased "footprint"

В• the total capital cost must not exceed $500,000 CDN.

2.8. Budget

Based on a high-level estimate by a subject matter expert and previous project experience by AMEC, the total budgeted cost is $500,000 CDN. This value is a budget estimate (-10% to +25%). A contingency factor of 10% was used on equipment and material, in anticipation of price escalation.

2.9. High-Level Project Risks

Risk Event Probability

L = 1

M = 2

H = 3 Impact

L = 1

M = 2

H = 3 Exposure

Risk Response and Plans

(to manage and monitor)

1. Equipment cannot be procured in time for installation 2 Г— 3 = 6 an aggressive yet realistic schedule must be developed with input by the equipment vendor

2. Annual shut-down duration is shorter than 10 days 1 Г— 3 = 3 continual communication between the project and the production plant's schedulers

(Probability Г— Impact = Exposure)

2.10. Critical Success Factors

The following are critical success factors for the project:

В• the annual shutdown duration is 10 days or longer

В• the piping design is reviewed and approved by the Boilers Branch of Safety (outside regulatory body that registers pressure piping)

2.11. Completion Criteria

The following completion criteria are to be applied against this project:

В• formal acceptance of the engineering and installation drawings by the Client

В• installation of the complete pumping system

В• training manual describing the operation of the new system

3. Project Approach

3.1. Approach

AMEC will serve as the principal engineering and construction management arm for Weyerhaeuser Kamloops during this project. A project plan will be developed with client approval. Site visits will be conducted to gather information. Engineering design will initiate. A procurement strategy will be developed, keeping in mind of the date constraints for equipment delivery. Engineering design will finalized when funds are committed to the vendor to provide equipment engineering information. Construction will occur during the production plant shutdown and the installation will be monitored by AMEC. The system will start up and data will be collected to assess its performance.

3.2. Schedule

The project is expected to be completed in 8 months. The schedule must be aligned with the production plant's maintenance schedule.

3.3. Milestones

The following are tentative milestones and could change depending on the final project scope.

Milestones Target Date

1. Approval to Proceed Mar 1, 2003

2. Pumping System Ordered Apr 1, 2003

3. Pumping System Delivered Sep 1, 2003

4. Mill Production Line Shut Down Oct 15, 2003

5. Mill Production Line Start Up Oct 26, 2003

4. Project Resources, Organization, Roles and Responsibilities

4.1. Key Resource Requirements

Key Resources (Personnel) Requirements:

Project Sponsor Jack Dosenberg

Project Manager Kim Law

Client Representative Jim Brown

Engineers: 1 Structural, 1 Mechanical, 1 Piping, 1 Electrical

4.2. Roles and Responsibilities of the Project Manager

Kim Law has been assigned as the Project Manager for this project.

4.2.1. Responsibility

Kim Law will be responsible for ensuring that all key milestones are met within the time, cost, and performance constraints of his project, while adhering to proper quality control standards. Furthermore, he must work closely with line managers to ensure that all assigned resources are used effectively and efficiently, and that the project is properly staffed. The project manager's responsibilities also include:

В• All formal communications between AMEC, the client and contractors.

В• Preparation of a project plan that is realistic, and acceptable by the client and contractors.

В• Preparation of all project data items.

В• Keeping executive management informed of project status through weekly (detailed) and monthly (summary) status reporting.

В• Ensuring that all functional employees and managers are kept informed as to their responsibilities on the project and all revisions imposed by the customer or client organization.

В• Comparing actual to planned cost and performance, and taking corrective action when necessary.

В• Maintaining a plan that continuously displays the project's time, cost and performance as well as resource commitments made by the functional managers and contractors.

4.2.2. Authority

To ensure that the project meets its objectives, the project manager is authorized to manage the project and issue directives to accomplish activities necessary for project completion. The project manager's authority also includes:

В• Direct access to the client on all matters pertaining to this project.

В• Control and distribution of all project dollars, including procurement, such that project cash flow limitations are adhered to.

В• To revise the project plan as needed, and with client approval.

В• To require periodic functional status reporting.

В• To monitor the time, cost, and performance activities in the functional departments and ensure that all problems are promptly identified, reported, and solved.

В• To cut across all functional lines and to interface with all levels of management as necessary to meet project requirements.

В• To renegotiate with functional managers for changes in personnel assignments.

В• Delegating responsibilities and authority to functional personnel, provided that the line manager is in approval that the employee can handle this authority/responsibility level.

5. Project Delivery Activities

5.1. Status Meetings and Status Reporting

The following regularly scheduled meetings will be held:

В• Weekly, on Mondays 8:00 AM at the AMEC office

All status reports will follow the standards established for the organization.

Regular status reports will be created and distributed on a schedule agreed to between the Client and the Project Manager and documented in the Communications Plan.

5.2. Issue Management

Issues arising from project activities will be identified, tracked and escalated to resolution using the following process:

1. Team members identify areas where the project could be impacted or delayed.

В• Team members will identify any potential issues and raise them with the project manager for consideration.

В• The project manager will also regularly review progress with team members to identify actual or potential problems and risks that could lead to potential issues.

2. Identified issues are addressed by the project manager who will:

В• Assess the issues.

В• Determine whether the issue lies in or out of the defined project scope. The Client is consulted where needed. Any disputes are reviewed with the Stakeholders.

В• Define alternative solutions and determine the impact in terms of cost and time to implement viable resolutions.

В• Ask the team member to enter and track the issues in the designated issue log.

3. The project manager will identify the most suitable solution to resolve the issue and will determine the impact in terms of cost and schedule to implement the resolution.

4. The project manager will consult with the Client to resolve issues that are achievable within the existing project scope, schedule and budget.

5. The Client will be informed of all issues where the solution causes an increase to the scope, budget or schedule or escalation of the issue is required.

6. Once the Client authorizes resolution, the project manager will revise the necessary schedules, tasks, cost estimates and budget to reflect the changes.

7. The "Issues and Concerns" section of the regular status report will contain a summary of the outstanding issues/problems.

5.3. Scope Management

The following process will be used to manage scope and the scope revision requests:

1. Any potential change that impacts the project's scope, schedule, cost, or resulting deliverables will be documented as a Project Control Notice.

2. The project manager prepares the Project Change Notice and documents the impact the change will have.

3. The project manager and Client review the Project Change Notice and decide if the request is in or out of the agreed project scope. The Client determines if the scope revision should be approved and seeks additional funding if required.

4. The Client is informed of the scope revision with the impact assessment, schedule changes and costs.

5. Approved changes are grouped into a formal Contract Amendment if needed.

6. Once accepted, the project manager will revise the project plan to reflect the accepted change. Any deliverable content that is expected to change will be documented in the Project Change Notice. The contents of the Project Change Notice (and any related documentation) will signify an official amendment to the relevant sections of the Project Charter.



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