Project_Charter_SOW_HPN

Project Charter Project Name Amazing Coffee Houses (ACHs) in Milwaukee, WI Project Number 1 Project Team Jim Young Prioritization High Owner(s) Sam and Gloria Ryder Start Date: 1/3/2023 Scheduled Completion Date: 6/20/2023 NOTE: Remove this note and all instructions in the template for a business professional document. Mission/ Purpose What is your project going to accomplish? How does this project relate to overall strategic goals and objectives of the company? Is it part of a program or larger project? Amazing Coffee Houses (ACHs) plans to open a new coffee shop that will be in Milwaukee, WI because our market analysis indicated that the city is the top city for coffee drinking in WI. We have been able to purchase our own building (not renovated) within the city that’s strategically near Milwaukee’s top tourist attraction site, the Gold Rock Museum. We plan to rapidly establish ACH’s presence in the coffee shop markets and become the top destination for local and foreign customers who visit Milwaukee each year. Our customers will have a wide range of coffee flavors to choose from including dark roast to light roast as well as specialty flavors throughout the year. They will also enjoy freshly baked low-fat donuts that aren’t available anywhere in the state. ACHs will hold true to its vision and mission of providing customers with a premier café experience. Sam and Gloria want to accomplish the expansion of their first multi-state business timely to jumpstart Sam’s vision to take ACHs to every city in America. SOW: Project Description and Project Product What will this project create? What are the outcome products being created with this project? At a high level, how do you plan on completing the work required for this project? List at least five high- level deliverables (outputs) that will be generated from the execution of this project. This section will help to prepare for your project scope and WBS later in the course. BULLET POINTS

Project Charter The SOW must contain an appropriate level of detail so all parties clearly understand what work is required, the duration of the work involved, what the deliverables are, and what is acceptable. This section should provide a general description of the project as well as highlight the project’s background and what is to be gained by the project. As the SOW often accompanies a request for proposal (RFP), the SOW introduction and background is necessary for bidding vendors to familiarize their organizations with the project. The project charter should contain three basic pieces of information: background, problem statement, and rationale. The charter should start with a brief statement on the project’s background, such as who requested it and when. It should then include a clear, succinct statement of the business problem that is being solved as a result of the project (or the opportunity that will be created). It should be phrased in terms that everyone in the project can understand, including the customers. It should not describe the solution; instead, it should focus on what the problem is that needs to be solved. It should clearly articulate the business value that the project will deliver. Finally, the project charter should describe the rationale for undertaking the project while incorporating the business value that will be delivered as a result of the project. The company is known for its own brand of gourmet coffee and low fat donuts, as well as for their own line of stainless steel coffee mugs that are able to keep drinks hot for 12 hours straight. The workforce is comprised mostly of bakers, managers, baristas, greeters, clerks, and cashiers. They also work closely with several large suppliers and distributors in the United States. o Planning o Stakeholder identification o Compose Project Charter o Get sponsors to sign Charter/ present Charter to owners o Create schedule of tasks- milestones o Determination of funding and appropriate allocation o Define project scope o Identify risks and constraints

Project Charter Objectives What objective is this project designed to meet? List a high-level objective statement for the overall project and at least three to five goals required to meet this objective. These must be measurable. For example, if an objective of the project is the cut cost, then by how much will costs be cut? o Establish business and reputation as the “Hottest and Newest Coffee Shop” in the city that also makes and sells unbeatable, one-of-a-kind donuts within 3-6 months. o The project has an initial budget of $650,000, which includes the renovation that must account for all that is needed to get the shop ready for both quality coffee and delicious donuts. The shop is 5,500 square feet of open space. Our plan is to have 2 bathrooms, a coffee bar, and enough tables to seat at least 50 customers. o The ideal opening date for the AHC is July 4th. o By creating a new twist for the café experience, ACHs will increase sales by more than $125,000 over the next three years and maintain a gross margin of 70%. To achieve the objective of high gross margins, a combination of competitive but profitable pricing, cost savings on supplies and resources, and extensive financial budgeting must be planned out. o Highly trained employees will uphold the values of ACH and provide the most opulent, quality coffee and excellent service to new and returning supporters of ACH. Business Need Why should we do this project? What will be gained, changed, or modified? Is there a financial or business reason to do this project? Explain, in detail, how this project will be beneficial to the project owner. Because the economic conditions have greatly improved throughout the United States and the company now has a well-established name and brands, ACHs is looking to expand in markets beyond Chicago.

Project Charter The first market it has decided to expand into is 81 miles away, Milwaukee, WI. The company has worked through a local real estate agent. Management thinks Milwaukee is where the next 10 stores will be opened. By creating a new twist for the café experience, ACHs will increase sales by more than $125,000 over the next three years and maintain a gross margin of 70%. Milestones What are the key milestone dates associated with the project? Milestones may show the completion of a set of major deliverables or phases. List at least 10 milestones and provide estimated end dates for each. Milestones must have associated dates. ADD DATES o Planning- January & February 2023 o Stakeholder identification-1/5/23 o Compose Project Charter- 1/10/23-1/25/23  Create schedule of tasks- milestones  Determination of funding and appropriate allocation  Define project scope  Identify risks and constraints o Get sponsors/owners to sign Charter- 2/10/23 o Project team assembly 2/20/23 o Adjustment and approval- 3/1/23 o Initiation 3/15/23 o Building renovation/construction- March-May 2023 o Architecture consultations- 3/15/23 o Research construction plans 3/15/23-4/1/23

Project Charter Budget What is the estimated budget for this project? Do not research your project cost; this is an estimate. This does not need to be close to your project’s actual costs when your project planning is complete in Week 6. This is an order of magnitude estimate. Estimated Labor $ 40,000.0 Estimated Materials $ 100,000.0 Estimated Contractors $ 60,000.0 Estimated Equipment and Facilities $ 120,000.0 Estimated Travel $ 7,500.0 Total Estimated Cost $ 327,500.0 User Acceptance Criteria What are the minimum success criteria as defined by the key stakeholders? How will you monitor and measure the project quality? How will the project owners determine if the project is a success or not? These must be detailed and measureable. Constructions of ACH will stay within the estimated budget Weekly updates from the project team will have positive progress and milestones will be met ACH first extended branch in Milwaukee, WI will open on July 4 th ACH will attract 5,000 customers and surpass $50,000 in profit in the first 2 weeks High-Level Project Assumptions What are the assumptions on which the project is based? What 7–10 statements do you believe to be true or will become true about the project during project execution but cannot be sure at this time? o The selected building will meet and suffice all City of Milwaukee commercial zoning ordinances. o A building permit will be obtained from the city and county offices for additional minor repairs.

Project Charter o Safety and health inspections prior to opening day will pass o New equipment and furniture will be available for purchase and arrive on time for installation and decoration o Quality candidates will be available for hiring services o Training and implementation of high standard work culture and environment will be absorbed by new employees o Security services and cameras will be installed for customer and employee safety High-Level Project Constraints What are the major limiting factors that affect the project? What 8–10 rules, regulations, requirements, laws, processes, or procedures are you bound by on this project? o Milwaukee commercial zoning ordinances regulating the building design, electric… o The contingency of passing any electrical, structural and safety inspections of the building o The contingency of passing food and safety inspections from the Department of Health o Budget and funding for the new ACH in Milwaukee, MI o Opening day by July 4 th , 2023 o Crime rate’s effect on security and commercial insurance o City of Milwaukee fire codes, regulations, security and commercial insurance Exclusions and Boundaries What are the boundaries of the project? To ensure that your project scope is properly constrained, identify 8–10 things that will be excluded from the project plans. What items will be not be included in the project? o Competition within in the Milwaukee, WI city boundaries will be

Project Charter Work Breakdown Structure The PMBOK defines the WBS as “a deliverable-oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables”. So your WBS should start by outlining those major deliverables you outlined in your SOW or in your scope document, if one has been developed. The lowest level of your WBS is called a work-package. Please review your textbook and the PMBOK on ways you can create your WBS. You should keep your WBS here at a very high-level. An example of a portion of a WBS decomposed down through the work package level can be found in Figure 5-12 in your PMBOK Sixth Edition on page 58. You may create your WBS in 3 different ways, review 3 Ways to Chart your Work Breakdown Structure for more information. EXPAND BULLET LIST INTO CORRECT FORMAT o Planning o Stakeholder identification o Compose Project Charter o Get sponsors to sign Charter/ present Charter to owners o Create schedule of tasks- milestones o Determination of funding and appropriate allocation o Define project scope o Identify risks and constraints o Building renovation/construction o Research construction plans o Obtain city permits o Architecture  Commission interior designer  Verify interior design that meets budget, specifications, and time  Payments

Project Charter o Find construction crew  Ensure commitment and quality work  Joint discussion and agreement on contract terms and costs  Weekly updates to ensure timeline and budget  Post construction inspection  Payments o IT  Create list of required hardware, software and services needed  Verify hardware, software and services meet budget requirements  Reliable connection for operation purposes o Shop design/plan o Interior design  Commission interior designer  Verify interior design that meets budget, specifications, and time  Payments o Equipment/ supply purchase for food services o Equipment/ supply purchase for customers o Preparation for grand opening o Marketing plans  Create list of potential advertisers within defined budget  Select the best advertisers, including scope and timing of advertising campaign

Project Charter Gloria Ryder Amazing Coffee Houses Owner/Internal and primary Stakeholder Chief Financial Officer (CFO) Project Core Team Jim Young Amazing Coffee Houses Internal/Primar y Stakeholder Project Manager Hong Phuc Nguyen Amazing Coffee Houses Internal/Primar y Stakeholder Human Resources/Log istics Jerry Lawson Amazing Coffee Houses Internal/Primar y Stakeholder Information Technology Sara Jenkins Amazing Coffee Houses Internal/Primar y Stakeholder Finance Melissa Grant Amazing Coffee Houses Internal/Primar y Stakeholder Operations Management Mike Green Amazing Coffee Houses Internal/Primar y Stakeholder Marketing Human resources Chicago, IL and Milwaukee, WI Internal/Extern al Stakeholder Work closely with Melissa Grant to train staff in operations Subject Matter Experts (SMEs) (What resources will you need with special expertise?) Suppliers Chicago, IL and Milwaukee, WI External/Secon dary Stakeholder Supply Management Local government/aut hority Milwaukee, WI External/Secon dary Stakeholder Government Service users Milwaukee, WI External/Secon dary Stakeholder Technicians/Bu ilder and Electricians Human Chicago, IL Internal/Extern Work closely

Project Charter resources and Milwaukee, WI al Stakeholder with Melissa Grant to train staff in operations Marketing Milwaukee, WI External/Secon dary Stakeholder Promotional campaigner Staffing agency Milwaukee, WI External/Secon dary Stakeholder Provide candidates and hire qualifying staffs Local coffee shops (Sprinkles&Tea, Energy Supply, Homeroom) Milwaukee, WI External/Secon dary Stakeholder Competitors APPROVALS Type Name Signature Date Project Manager Approval Customer/Sponsor Approval