EXAMPLE PROJECT CHARTER - PAGE 1

Version No.: 1

Project Name: Relocation Study

Current Name Phase: None

Date: September 5, 1990 Number: 111-90 Telephone #: 919-0001 Telephone #: 919-0002 Telephone #: 919-0003

Project Manager: Joan McLean

Division Functional Director: Jim Logan Project Sponsor: Joanne Kline

PROJECT DEFINITION

CORPORATE PROJECT PURPOSE: Because the company is currently considering the possible consolidation of its seven manufacturing sites into one location, it needs more complete information on locations, employee opinions and costs to make a decision.

CRITICAL SUCCESS FACTORS: 1. Identify a minimum of two potential locations 2. Involvement of employees PROJECT GOALS: 1. To provide corporate management with sufficient information upon which to decide

whether to consolidate the company into one site. PROJECT STRATEGY 1. Involve all departments in the research 2. To be open with the employees and other interested stakeholders about the project and its goals. COMMUNICATIONS STRATEGY 1. To develop a process to solicit employee input 2. To provide reports on the results of the employee survey process, and the two selected sites 3. To provide a recommendation to senior management on the preferred site END PRODUCTS: A study report which -identifies and justifies a location which provides the best rationalization of all operations -provides a view of employees attitudes towards consolidation -provides and economic analysis of such a consideration KEY INTERIM PRODUCTS: 1. Location Short List Study Report 2. Employee Attitude Study Report

PROJECT SCOPE Project Scope Is (Includes): 1. Study is to determine options 2. Will include employee options Project Scope Is Not (Does Not Include): 1. A decision to relocate 2. Preconceive a possible location

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PARAMETERS

PROJECT OBJECTIVES SCHEDULE: Project to be completed by March 1

BUDGET: To be determined

KNOWN CONSTRAINTS: RESOURCES:

To be determined

OTHER: The company desires to retain as many employees as possible and there will probably be some resistance to moves.

BEGINNING ASSUMPTIONS: 1. There is a business need to consolidate operations. 2. That any decisions should be made in time for rational decision to be made concerning two major leases coming up for renewal in two years.

RISK ASSESSMENT:

(High, Medium, Low) Probability Impact

External Risk Political Risk: Provincial and local political pressures to protect current plants H M

Market Risk: Potential image of service disruption if consolidation goes forward Internal Risk Schedule Risk: TBD Budget Risk: TBD Technical Risk: TBD Other Risk: Employee resistance to consolidation

EXAMPLE PROJECT CHARTER - PAGE 3

PROJECT ORGANIZATIONAL IMPACTS

PROJECT PLANNING TEAM NAME Joan McLean John Lyle Susan Anderson Jim King ORGANIZATION & TELEPHONE Facilities Management Facilities Management Human Resources Manufacturing 919-0001 919-2323 919-3333 374-5574

ORGANIZATIONS INVOLVED IN PROJECT EXECUTION INTERNAL: Facilities Human Resources Legal Corporate Administration Manufacturing Research Engineering Marketing EXTERNAL: Real Estate Companies CONTACT & TELEPHONE Jim Logan 919-0002 Andrew Jones 919-3345 Shirley Peterson 919-7676 Nancy Lewis 919-2123 Joe Rayner 374-9087 Ann Lane 374-1867 Steve Matthews 374-9854 Eileen Kemp 919-1008 CONTACT & TELEPHONE To be determined

ORGANIZATIONS IMPACTED BY THE PROJECT INTERNAL: All departments of the company CONTACT & TELEPHONE

EXTERNAL: To be determined

CONTACT & TELEPHONE

REPORTING RELATIONSHIPS: SENIOR MANAGEMENT 1. President and the Senior Management Committee will require interim reports during the project. 2. Project Sponsor will be briefed monthly. The PM will report directly to the Project Sponsor for project schedule and financial authority. FUNCTIONAL MANAGEMENT 1. The PM will report to the Director of Facilities Management for FM resources and administrative authority. 2. All Department heads to receive the PM's monthly report.

POTENTIAL PROJECT PRIORITY TYPE PROJECT POTENTIAL PRIORITY: STRATEGIC (X ) HIGH (X ) OPERATIONAL ( ) MEDIUM ( ) LOCAL ( ) LOW ( )

USER/CLIENT RESPONSIBILITIES Department Director: 1. Encourage all employees to participate in the employee survey.

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COMPLETION CRITERIA 1. Report of feasibility and recommendations has been delivered and approved by corporate management. PROJECT PLANNING PARAMETERS DATE PLANNING COMPLETION DUE: ESTIMATED PLANNING BUDGET: September 15, 1990 $12,000

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