Transcript media.clemson.edu

Project Charter
Tool: Project Charter
Purpose: Formalizes purpose, goal, and scope
of the project for tracking and accountability.
It builds on the information you brainstormed for
the A3 Problem Statement, Current Situation
and Target Goals.
The Lean Office uses it to submit projects to the
Board of Trustees.
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Project Charter
Project Charter Form
Project Name
College/Division
Strategy Linkage
Nature of Benefit
Supports vision to become a top 20 public university.
Cost Savings
Provide every student opportunities for engagement and leadership.
Re-allocation of Resources
Recruit, retain and reward faculty and staff quality, performance and productivity.
Risk Avoidance
Process Owner
Build competitive technology and information infrastructure.
Soft Savings
Mentor
Maintain an environment that is healthy, safe and attractive.
Revenue Generating
Department
Champion/Sponsor
Team Leader
Increase the reputation of the University: state, national, and international.
Metric
Business Issue/ Opportunity
Baseline
Target
Target Date
Project Metrics
Resources
Department
Employees Involved
Resource Demand
Project Goals & Objectives
Scope
Project Team
Lean Progress
Status
DMAIC phase
Stakeholders
Key Subject Matter Experts
Project Notes/ Comments
Date Started/ Completed
Red, Yellow, Green.
Deliverables
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Project Charter
• Provide a Project Name for
reference
Project Name
Procurement: Leverage Industry Norm
Payment Terms
 Use the format: Department: Descriptive
Title
• Name the College/Division that is
responsible for this project.
College/Division
Finance
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Project Charter
• List the Department responsible.
Department
Procurement Department
• A project Champion/Sponsor is
most likely the head of your
division. This is usually the person
who gives approval for the project
to go forward.
Champion/Sponsor
Procurement- Mike Nebesky
• The Process Owner is the individual
who is ultimately responsible for the
process being improved.
Process Owner
Mike Nebesky
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Project Charter
• Identify the assigned project
Mentor and the contact information.
Mentor
Lisa Knox- G06 Sikes; (864) 123-4567
• The Lean Office will designate
the Team Leader.
Team Leader
Lisa Knox- REPI
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Project Charter
• Draw on your initial A3 answers
to explain the problem.
What do I want
to fix?
Business Issue /
Opportunity
What is the
problem’s
background?
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Project Charter
• Be sure to include briefly:
• Who is being impacted? (This
is your customer.)
• What is the issue that is
impacting the customer?
• Where and when do the
customers encounter the
problem with the process?
• What is the impact to the
customer when the problem
occurs?
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Project Charter
• Now we can begin to define the
situation. Drawing again on the
A3…
What do I want
to fix?
Business Issue /
Opportunity
What is the
problem’s
background?
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Project Charter
• In this example, then:
Business Issue /
Opportunity
Clemson University currently pays
vendors upon approval. CU does not
leverage early payment discounts.
Industry standard discounts are
generally 2% for payment in 10 days
and 1% for payment in 30 days.
• Who: Clemson University
• What: Paying vendors upon
approval
• Where/When: Delays past
discount windows
• Impact: Foregone savings
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Project Charter
How far would I
like to get?
Project Goals &
Objectives
When would I like to
get there?
Benchmarking
Tool: Benchmarking
Purpose: provide realistic goals and direction; monitor
performance; improve processes to match the best in
Higher Education.
Benchmarking is the technique of comparing practices
and processes to the best in the industry.
Remember: Some processes should be compared to
norms outside of Higher Education!
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Benchmarking
Establishing benchmarks
• Call similar departments at other
universities or businesses.
• Consult other departments within
Clemson University.
• Contact individuals who have
experience with or ties to other
organizations.
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Project Charter
 As appropriate, include,
• What are my measures of success that
are aligned to the project objective? OR
• What are the goals for primary and
secondary metrics? OR
• What change in performance level will
be considered a success? OR
• How much does the primary metric need
to change for your project to be
considered a success?
 Be sure to include,
• How long will it take you to complete this
project?
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Project Charter
Project Goals &
Objectives
Develop and implement vendor
payment terms that yield $1M
annually by 7/1/2011.
• Goal: Save $1MM annually
• Deadline: 7/1/2011
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Project Charter
What do
I want to
fix?
How does
this process
run?
Scope
What areas can
I target?
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Project Charter
 Be sure to consider,
• What authority do we have?
• What processes are we addressing?
• What is not within scope?
• What are the starting and ending
points of the process?
• What components of the business
are/are not included?
• What, if anything, is outside of the
project boundaries?
• What constraints must the team work
under?
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Project Charter
BEWARE Scope Creep
PROCESS
• Not
your
job!
Upstream
Process
• Stick with
beginning
/end points.
• Not
your
job!
Downstream
Process
Create boundaries and
maintain them!
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Project Charter
Note the limitations:
Scope
The scope of this project is limited to
the current payment process and
vendor base. Focus is on the vendors
that have already agreed to accept
industry standard payment terms.
• current payment process
• current vendor base
• vendors accepting industry
standards
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Project Charter
• List your Project Team.
Project Team
Lisa Knox, Taylor Vick, Mike Nebesky,
Angie Wiggins
• List Stakeholders -- individual
consumers, employees, etc. who
could gain or lose from this
project. Be specific!
Stakeholders
Employees involved in the current AP
process, Vendors
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Project Charter
• Identify Subject Matter Experts,
people with technical skills or
experience that could help
complete this project.
Key Subject Matter
Experts
Mike Nebesky - Procurement
• Add any additional (or quarterly
updated) Comments you may
have about the project,
stakeholders, team, etc.
Project Notes/
Comments
Use this section to update each
quarter savings to date, revenue, etc.
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Project Charter
• Place an “X” in each box in which
you believe the project will align
with our current University
Strategy.
Strategy Linkage
Supports vision to become a top 20 public university.
Provide every student opportunities for engagement and leadership.
Recruit, retain and reward faculty and staff quality, performance and productivity.
Build competitive technology and information infrastructure.
Maintain an environment that is healthy, safe and attractive.
Increase the reputation of the University: state, national, and international.
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Project Charter
• Place an “X” in each box that you
believe will be a benefit from
completing this project.
Nature of Benefit
Cost Savings
Re-allocation of Resources
Risk Avoidance
Soft Savings
Revenue Generating
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Project Charter
Various Financial Benefits
Hard
dollars
Calculated
dollars
Intangible
Some benefits like new revenue,
higher profitability, or faster growth
result in tangible dollar amounts
and are easy to measure.
Others, like cost avoidance,
reduced labor, or reduced process
time are harder to measure but can
be calculated.
Customer satisfaction, employee
morale, risk avoidance and image
are hardest to quantify.
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Project Charter
“Nature of Benefit,”
explained
Cost
Savings
• Direct expense reduction
• Yield improved bottom line
Resource
Reallocation
• Reduction of non-value-added
work
• Typically employee time
Risk
Avoidance
• Calculated value of removing
the threat of financial
culpability or penalty
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Project Charter
“Nature of Benefit,”
explained
Soft
Savings
Revenue
Generating
• Financial benefits that are
difficult to quantify but still
mission-critical
• For example: satisfaction,
image, ranking
• Development of new income
streams or expansion of existing
ones
• Recorded in income statements
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Project Charter
• Establish metrics, baseline,
targets and target dates.
How far
would I
like to go?
What are
some ways to
measure this?
Metric
Baseline
Target
Project Metrics
Where do
we stand?
When would
I like to get
there?
Target Date
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Project Charter
What is a metric?
• A measured variable that can be tracked
and used to detect errors, inefficiency, or
improvement. It can be a process
metric or and organizational metric.
Process metrics apply to specific
processes or programs like time, cost, or
quality.
Organizational metrics address
organization-wide issues like employee
satisfaction and turnover.
Choose one or more to describe
accurately your process’ efficiency.
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Project Charter
Kinds of Metrics
• Time Metrics
– Value-added
time
– Non-valueadded time
– Processing
time
– Cycle time
• Cost Metrics
– Cost savings
– Opportunity
cost
– Decreased
waste
• Quality Metrics
– Customer
satisfaction
– Percent
complete and
accurate
• Output Metrics
– Backlog
– Work in
process
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Project Charter
You must have a
baseline to measure
improvement.
The Lean Office will help establish
your baseline metrics.
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Project Charter
• Enter your metrics and goals.
Project Metrics
Metric
$ Saved
Vendors discounting
Baseline
0
Current
Target
$400K
All
Target Date
5/15/2011
7/1/2012
Be sure to document your inputs,
assumptions and reasoning in setting
your baseline, target and timeline in the
electronic version of your project charter.
We must be able to replicate your
baseline and savings!
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Project Charter
• Now that you have your metrics,
targets and deadlines
established...
What offices
will be
involved?
Which people in
those offices do I
need?
How much of their
time?
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Project Charter
• Under Department, list the offices
involved.
• Under Employees Involved, list
the specific individuals.
Department
Resources
Employees Involved
Time Commitment
Procurement
REPI
Procurement
Admin Support
Vendors
Mike Nebesky
Lisa Knox
Angie Wiggins
many
many
50%
5%
30%
as needed
as needed
• Estimate how much time (per
day/week/month) will be necessary
for successful project completion.
This is the Time Commitment.
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Project Charter
Note that this is where you
create your team.
The Lean Office will
immediately enroll your
team members in Purple
Belt training.
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Project Charter
• Now, from a high level, apply
DMAIC to the project to define
the activities and plan to
complete them.
Deliverables
Define the issues and metrics
involved in the procurement process
Measure the current cost of not
leveraging payment terms.
Conduct analysis of the procurement
process.
Improve the process by publishing
revenue and receivables plan.
Control the process by implementing
performance measures.
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Project Charter
Next make a thorough list of everything
necessary to achieve each of those high
level goals. These are your Deliverables.
This list will include steps like:
–
–
–
–
–
–
–
–
–
–
–
–
–
make a plan
define what the customer wants
identify those involved
establish a process for communication
define the ideal system or norm
understand the current process
determine what data to collect and how
analyze the current process for
improvement opportunities
evaluate the options for the most benefit
prepare the ground for selected changes
prepare the solution
train in the new format
implement changes and monitor
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Project Charter
– make a plan
– define what the customer wants
Define
– identify those involved
– establish a process for communication
– define the ideal system or norm
– understand the current process
Measure
– determine what data to collect and how
– analyze the current process for
improvement opportunities
Analyze
– evaluate the options for the most benefit
– prepare the ground for selected changes
– prepare the solution
Implement
– train in the new format
– implement changes and monitor Control
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Define
Deliverables and DMAIC
Phase
Tool
Step
Define
Project
Charter
Voice of
Customer
Stakeholder
Analysis
Benchmark
Make a plan
Define what
customer
wants
ID those
involved
Establish
ideal
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Define
Deliverables and DMAIC
Phase
Measure
Tool
Current
State Map
Metrics
Step
Draft the
current
process
ID data to
collect and
how
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Define
Deliverables and DMAIC
Phase
Analyze
Tool
5 Whys
Fishbone
Pareto
Chart
Step
Find main
causes for
problems
Find all
contributors
to problems
ID primary
contributor
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Define
Deliverables and DMAIC
Phase
Improve
Tool
Implementation
Plan
Future State
Map
Step
Define how the
solution will
happen
Draft the endgoal for the
process
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Define
Ongoing Deliverables
Change
Management Plan
Help stakeholders
accept and
embrace change
Define what
stakeholders need
to know
Leadership
Communication
Plan
Set up ways to
inform and engage
stakeholders
Project Charter
Revise and update
quarterly
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Project Charter
Good planning
is critical!
You need a thorough list to
make a reasonable timeline.
You need a reasonable
timeline to achieve your
target date.
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Project Charter
• Fill in the Deliverables, Phase
and relevant Date under Status.
Lean Progress
DMAIC
phase
Define
Measure
Measure
Measure
Measure
Measure
Status
Date Started/
Red, Yellow, Green
Completed
3/7/2011
Complete
3/7/2011
Complete
3/7/2011
Complete
3/7/2011
Complete
3/7/2011
Complete
3/7/2011
Complete
Analyze
3/7/2011
Complete
Analyze
3/7/2011
Complete
Implement
3/7/2011
Complete
Implement
3/7/2011
Complete
Implement
3/7/2011
Complete
Implement
3/7/2011
Complete
Implement
Implement
Implement
Implement
Control
2/12/2011
2/24/2011
Started
Started
Deliberables
Identify current university deliverables
Develop a detailed data collection tool
Create a high level SIPOC diagram
Collect revenue and receivables data
Collect internal customer data
Create a value stream map
Conduct value-added/non-value-added
analysis
Create prioritization and cost benefit matrix
Develop comprehensive communication
strategy
Publish revenue and receivables strategic
plan
Develop change management plan
RFP written for procurement website
development upgrade
Website complete
Develop training plan
Plot future state
Implement performance measures
Implementation complete
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Project Charter
• Keep in mind that the Project
Charter template is just a
template; it may need
modifications to fit your project.
• Consult the Lean Office to
determine how best to adjust the
template for your project needs.