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Project Charter Development

Project Charter Development 2

Project Charter Development

Student’s Name

BUS 633: Project & Operations Management

Instructors Name:


International Logistic Service Operations Improvement Project Charter


Internal Logistic Service (ILS) has faced issues that have led to low customer satisfaction, safety issues, and wasted resources that have resulted in financial losses. The organization has encountered problems that have significantly contributed to the mentioned shortcomings. The issues are primarily linked to disorganized service operations (Demirkesen, & Ozorhon, 2017). Therefore, the initiated projects aim to improve the country’s newly acquired business operations. Project scope and limitation

Scope Overview

The projects look to make some crucial adjustments that will improve the firms’ operations to enhance its service delivery. The project wants to implement measures to reduce the accidents as witnessed in the warehouse and during inventory transportation. Second, the project will implement strategies that will lead to the utilization of resources, e.g., the energy that has been skyrocketing initially. Third, the project will put in place a plan that will lead to effective warehouse organization. Fourth, suggest new equipment that will enable the firms to reduce the cost currently witnessed using old equipment. Fifth, the project will implement associates’ job training in their positions and safety procedures. Lastly, the project will also implement effective process documentation.

Business case

ILS has realized losses in the area of its primary operations. The currently existing issues in the firms have rendered the organization profitless and faced serious customer satisfaction issues. The firm might run into losses if the issues are not correct as early as possible to make operations smooth and resolve problems resulting in accidents on the premises and during inventory transportation.

The projects will allow the organization to realize its corporate strategy in the new area of business operation. It has Walmart as one of the major clients in other countries and wants to win the organization in this new area of business operations. The firm also wants to have other firms who will purchase their services, thus generating more revenue (Kloppenborg, 2016).

As a new entrant in the location, ILS anticipates improvement in operations lead improved revenue and thus giving back to society. On generating substantial profit, the firm will fund local projects or offer philanthropic assistance to the needy. Also, the firm gives employment to the people in the community.

Business Case Net Present Value

Considering the firm’s current cost, its NPV in the next six years will be $1,267,923.22. At this point, the organization will have generated significant profit given that the project succeeds during the implementation phase. The initial cost incurred is $500000, which comprises the project implementation cost and the cost incurred when purchasing the promises. It is assumed that the discount rate is 10 %, and the annual profit after the deduction of other associated costs is $150000. Appendix A show calculation of the NPV.

Milestone Schedule

The project will be implemented following the following process as per schedule. Completion o one process leads to start of another process.

Project Risk, Threats, and opportunities

Projects Risk

The following are some of the main project risks that could happen to the project during the implementation. The project team need to determine in advance on how to deal with them incase they occur in the process of project implementation (Elias, 2016).

Scope creeping – this is a serous risk that can deviate the team from the main project goals. it is important to keep track of the project process to make sure that it is on the right track.

Technology – the project team might like the right technology to implement the project. It is important technology assessment is done before the project is initiated (Croxatto & Greub, 2017).

Cost – this another serious risk that ca brings down the entire project. The firm should allocate enough resources to fund the entire project to completion.

Time – the project should not take more time than it is allocated. Increase in time will lead to the project taking longer thus incurring more costs.

Resources Needed for the Project

The project requires some of the critical resources for its successful implementation. the following are some of the resources that should be availed before the project implementation commence. The following are some of the resources that are required

Time – this is the period in which the project gets implemented.

Money – this is the main resources used for acquiring resources and hiring personals.

Man power – this is the expertise that is required for implementation of different aspects of the project.

Project stakeholders

JohnOperation expertManaging operationsinternal
AliceBusines analysisAnalyses the business caseinternal
HarrietTechnology expertsConsulting with technology expertsexternal
HarryMr.Robotics expertsExterna;
HarveyMr.Solar power expertInternal


Croxatto, A., & Greub, G. (2017). Project management: importance for diagnostic laboratories. Clinical Microbiology and Infection23(7), 434-440.

Demirkesen, S., & Ozorhon, B. (2017). Impact of integration management on construction project management performance. International Journal of Project Management35(8), 1639-1654.

Elias, A. A. (2016). Stakeholder analysis for Lean Six Sigma project management. International Journal of Lean Six Sigma.

Kloppenborg, T. J. (2016). Contemporary project management: Organize, plan, perform. South Western, Cengage Learning.

Appendix A

Project Net Present Value
Discount Rate10%
year 0$ (100,000)
year 1$ 150,000
year 2$ 150,000
year 3$ 150,000
year 4$ 150,000
year 5$ 150,000
year 6$ 150,000

project initation

correcting the Course of accidents

Updating equipmesnt

Job training

process dumntation

Last Updated on April 12, 2021

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