Project Charter

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