Write is one page ‘Project Purpose or Justification’ for a project to create a Project Management Office (PMO) within a company.
Details about the company and it’s staff are in the document that is attached.
Group Project: Charter Exercise Instructions
The project charter officially announces and authorizes the existence of the project. The charter names the project manager and indicates the extent of the project manager’s authority over the project and its resources. The charter should contain at least the following element:
- Project purpose or justification
Galaxy Industries Company Description
Galaxy Industries, a traditionally organized company, has asked your consulting firm, Project Management Consultants (PMC) to define and implement a Project Management Office (PMO) within the company. The sponsor for the project is the CEO, John Smith. The CIO is Joe Brown, and the COO is Sue White.
Mr. Smith wants Galaxy to assist him in developing the Project Charter and Mr. Brown will be working with Galaxy to develop the Project Plan (and sub-plans). Mrs. White has requested that the plan include the development of a Project Management Intranet Site so that internal staff will be well informed as related to project progress, problems/risks, and issues.
Galaxy Industries Environment
Galaxy is a small company that sells home accessories such as lamps, pictures, end tables, rugs. They purchase many of their products from manufacturers in the US, England, France, Italy, and China. They sell to gift shops in the US and have an Internet site that sells to worldwide customers. Their Internet sales are now exceeding their US sales. The company is in a solid financial condition, with sales expected to rise 25% within the next year (because of the success of their online sales). Because of their revenue and sales growth, they have hired new staff in their warehouse operations, sales and information services. They have partnered with CISCO for network services, FedEx for shipping services, HP/IBM/Dell/Microsoft for computer hardware and software services.
Some of the problems Galaxy is facing are: inability to process orders within 24 hours; rising transportation costs (due to higher fuel cost); inadequate employee training; increased demand for internal IT services related to their website, sales, financial reporting, and warehousing/shipping; inability to keep up with information technology advancements and trends; and high personnel turnover in IT, marketing, and sales. All of these problems have been addressed in the company’s strategic plan.
PMC has 55 Project Managers and 275 project support staff. The company mandates that all project managers obtain their project management professional (PMP) certification. PMC has assigned 1 project manager and 2 project support staff to the Galaxy account because this project is very small in size.
Galaxy has just completed their strategic plan, and one of the strategies to be implemented is the development of a PMO. This strategy was given high priority as it will eliminate and/or reduce the problems associated with internal projects not being completed on time and within budget. Successful completion of internal projects is crucial to the continued success of the company, as these internal projects support the sales, marketing, accounting and warehousing functions of the company.
PMC’s Project Manager has met with Mr. Smith and has obtained adequate information for the development of a Project Charter and Scope Statement. He has learned the following from Mr. Smith:
- Galaxy has 3 project managers, however, none of them are PMP certified, and they are not centrally located. Two project managers work in Information Services and the third works in the COO’s office. Mr. Smith wants all of Galaxy project manager’s to obtain their PMP certification.
- Galaxy has 8 projects in progress and 10 projects that have not been approved or prioritized. One project manager has four projects, and the other two have 2 projects each.
- Galaxy has no formal project management methodology, policy, or procedures. Project progress reporting is sent out weekly Department heads (via email).
- Galaxy does have an empty location for the PMO office (located across from the Accounting Offices); however, office furniture and equipment will need to be purchased and phone/fax/network services will need to be installed.
- Galaxy does not have a software package for tracking projects and has asked that this be a part of the project plan.