In this example of a project charter, we have detailed the Project Title and Description, Project Manager Assigned and Authority Level and Business Case. Project Statement of Work is provided by the organization/management to the project manager for creation of Project Charter: 1. What is Project Charter. But since the project charter is signed by the Project Sponsor (or any other manager external to the project – generally senior to the project manager), any changes to the project charter should also be approved by the Sponsor or the Change Control Board (CCB) appointed by the Sponsor. Note that there are Five named inputs. Do you need to memorize ITTO for the PMP Exam, Difference between Contract Closure & Administrative Closure for PMP Exam. Project Charter is the document created based on the Project Statement of Work to authorize the Project Manager to kick off the project and spend the budget. It empowers the project manager to deliver. Requirements as stated by the Stakeholders. The charter also identifies the main stakeholders and defines the authority of the project manager. It is important that you first understand what a charter is and its critical importance on the PMP exam, before understanding HOW to develop a project charter. This alone can tell you how significant is the project charter in the PMP exam. It is best to go for a good quality Online PMP Exam Preparation Coaching workshop, or attend one face to face. This is used as a baseline and compared with actual project performance. Develop Project Charter implies working with stakeholders to create the project charter, the foundation document for the project. Enter your email and we'll send you instructions on how to reset your password. Glad you liked it Dr. Rao. 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You may be working on some “ghost” project… Be careful! The Project Charter is an extremely important document for real projects, as well as the PMP exam. Identification of project scope: Scoping is a critical activity to create a boundary of what work to be done and what not to be done. This does not mean that all the five must always be present, or must always be used. So the charter lets the project manager use organizational and outsourced resources to complete the project. The project charter should identify the assigned project manager. All the stakeholders of the project are informed about their roles and the level of efforts required from their end. Do you need help with any particular model – like Pareto Principle (80-20 Rule), or PERT, or corelation and regression? A business case identifies the business need for doing a project. The project charter is an extremely important document for any project, and for the PMP exam too . PMBOK, 5th Edition, Section 4.1.3.1, “Project Charter” The project charter is the document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities. This formal document uses all that information to authorize the project. The PMP exam could include six to ten questions on project charter. The project charter provides political and financial support for the project, telling everyone in the company why the project is needed and providing the project manager authority to manage the project. Identification of project assumptions: There are multiple activities which are done on the basis of organizational and project environmental factors. These activities are executed either because of process policies or certain assumptions. To have a Project charter is considered as Industry best practice. Develop Project Charter implies working with stakeholders to create the project charter, the foundation document for the project. The PMP exam could include six to ten questions on project charter. Difference between Fixed Cost and Direct Cost, How To Get PMP Certification in Just 30 Days, PMP Exam Question Distribution Chart here, better understanding of the ITTOs from this method, Online PMP Exam Preparation Coaching workshop, helped thousands of project managers achieve the PMP certification, PMP Strategy: How to answer PMP Questions, How to Pick The Right Answer When All Choices Seem Correct in PMP exam, Practice on over 1800 questions for the PMP exam, https://www.youtube.com/watch?v=Ri3KFCoQuUo&list=PL6lTcPjBaSdW2mygJ0VA_Q9Nzesmg6VGc&index=5&t=0s, 3 Point Estimate: Triangular Distribution vs Beta Distribution (PERT), Cost Plus Incentive Fee Calculations For PMP Exam, Point of Total Assumption Calculations on PMP Exam. 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