Project Charter

Advanced Project Management - Information Technology,

Lambton College, Toronto

Subject Name and Code - 2024W EPM 1133 4 [A506]

Identifying Project Requirements: Scope and Quality

Management

Course Name - PMIT (Winter 2024)

Group Name – Group 4

Topic

Improved Inventory Management System: Project Charter

 Project Name: Project Charter

Project: Improved Inventory Management System

Title: Project Charter
Version 0.1
Document status: Draft
Author: Balwinder, Vandana, Suvetha, Pooja, Udit
Date created: 2024/02/04

Table of Contents

1 Scope Overview...................................................................................................................3

2 Business Case......................................................................................................................3

3 Background..........................................................................................................................4

4 Milestone schedule with acceptance criteria.................................................................................5

5 Risks, Assumptions, and Constraints..............................................................................6

6 Resources Estimates..........................................................................................................7

8 Key stakeholders.................................................................................................................7

9 Team Operating Principles..................................................................................................8

10 Lessons Learnt...................................................................................................................9

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 Project Name: Project Charter

1 Scope Overview
The creation and execution of a system that permits precise and effective tracking of inventory

levels, orders, and delivery are included in the scope of an enhanced inventory management system.

To maximize stock levels, cut waste, boost customer happiness, and save operational costs, the

system should use contemporary technology and best practices for inventory management.

The scope includes phases for planning, documenting, analyzing, designing, and implementing; each

has its own set of acceptable standards. To make sure the system satisfies their needs and

requirements, the project team will carefully collaborate with stakeholders, including owners and

shareholders, warehouse managers, inventory analysts, transportation partners, financial analysts, top

management, and end users. The solution will enable real-time inventory tracking by fusing industry-

standard tracking technologies like barcoding and Radio Frequency Identification (RFID) with

contemporary hardware and software, such as Enterprise Resource Planning (ERP) systems. The

application of predictive and data analytics will optimize inventory levels and facilitate informed

decision-making. In addition, creating an online training program for end users, maintaining a support

and maintenance program, and adhering to pertinent regulatory standards that oversee data security

and privacy in the retail sector are all included in the scope. The company can raise customer

happiness, optimize inventory levels, cut expenses and errors, boost efficiency, and eventually boost

its bottom line by implementing an effective inventory management system.

2 Business Case
Implementing an enhanced inventory management system is supported by several important

criteria in the business case. The system will primarily address the current issues and inefficiencies

brought about by manual procedures and antiquated systems. Automating and streamlining inventory

management processes can lower operating costs and boost customer satisfaction by lowering the

likelihood of mistakes, shortages, and overstock situations.

In order to guarantee precise and current inventory tracking, the system will make use of

technological innovations like automation, barcoding, and Radio Frequency Identification (RFID). With

real-time access to stock levels, demand patterns, and customer behavior, this will help businesses

optimize inventory levels and make data-driven decisions. Using accurate demand forecasting,
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 Project Name: Project Charter

organizations can lower waste and holding costs and increase overall inventory efficiency. Not only

can an improved inventory management system benefit operations, but it also promotes sustainability

principles. Businesses that optimize stock levels can reduce waste and its environmental impact. By

doing this, they might attract more environmentally conscious clients and enhance their reputation as a

socially responsible company.

A milestone schedule with acceptance criteria is developed in addition to supporting the business case

to ensure a methodical and quantifiable approach to the implementation process. In addition to

identifying and mitigating risks, assumptions, and limits, necessary resources and timelines have been

assessed.

3 Background
To maximize efficiency and streamline operations, businesses must implement an improved

inventory management system. With cutting-edge technology and data analytics, this system provides

real-time visibility into stock levels, enabling accurate forecasting and timely replenishment. Time-

consuming procedures that can be automated include order processing, inventory tracking, and

supplier management. This reduces the possibility of human error and saves much time. The following

are a few key characteristics in the background of an enhanced inventory control system:

 Manual errors cause shortages and overstock.

Difficulties with Common Systems  Ineffective tracking leads to delays and expenses.

 IT enhancements will improve the management.

Technological Progress  More accuracy is achieved by automation,
barcoding, and RFID

 This predicts trends and customer behaviors.

Predictive Analysis  Analyze inventory levels and save money.

 Minimize waste and environmental impact.

Prioritize Sustainability  Integrates sustainability into inventory management
as well.

The growth of technology, difficulties with traditional methods, and an increasing

understanding of the business value of efficient inventory control in today's fast-paced business

climate all affect the background of an improved inventory management system.

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4 Milestone schedule with acceptance criteria

Milestone Acceptance criteria

Planning and  Roles are established and the project team is formed.
Launching of the  The approved project plan consists of materials, outcomes, and
Project schedules.
 Stakeholder communication is structured in a plan.
Documentation and  Complete specifications for inventory management that have been
Requirement authorized and documented.
Analysis  We have incorporated comments from stakeholders into the
requirements.
 Plans for lowering risk have been identified, along with associated
obstacles.
Architecture and  Compiled design and high-level system architecture specifications.
System Design  Points of relation to current operating systems were found and
recorded.
 The design is examined and approved by pertinent parties
Formation of  Crucial elements of the specification-driven inventory management
Essential Elements system. Unit testing for each feature is complete.
 The code was reviewed, and any necessary modifications were made.
Integration with the  Successful integration of the current ERP system has been achieved.
ERP System  Confirmed data interchange between inventory management and
different ERP modules.
 System performance and response times meet predetermined
standards.
Tracking Technology  The introduction of barcoding or RFID technology into an inventory
Deployment management system is required for acceptance.
 Shown to track inventory items accurately and in real-time.
 Training sessions occurred and user training materials were
developed.
Analysis and  Lessons learned are determined through a post-implementation
Documentation evaluation.
Following  Any changes made during implementation are included in the revised
Implementation documentation.
 A support and maintenance program was created.
Developing and implementing an improved inventory management system is divided into

manageable stages to build a milestone calendar with acceptance criteria. Every milestone indicates a

vital achievement or finishing a particular set of duties. The requirements that must be fulfilled for each

milestone to be deemed accomplished are outlined in the acceptance criteria.

This milestone calendar offers an organized structure for creating and executing a better inventory

management system, with specific acceptance criteria at each step. Based on project-specific

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requirements and input from stakeholders during the development process, modifications to the

timeline and criteria can be required.

5 Risks, Assumptions, and constraints

Risk Possible impacts on the project

Technology Adoption There are risks associated with adopting new technology, including
potential employee resistance or difficulties transitioning from legacy
systems.
Data Security Implementing a cloud-based system introduces cybersecurity risks,
including data breaches or unauthorized access to sensitive information.
Integration Challenges Integrating the new inventory management system with existing software
and hardware may pose challenges, potentially leading to compatibility
issues or data migration errors.

Assumptions Possible impacts on the project

Stakeholder Support It is assumed that there will be strong support from key stakeholders,
including management and staff, throughout the project.
Vendor Reliability The assumption is that the solution's technology company has a proven
track record of delivering reliable and scalable cloud-based inventory
management systems.
Training Effectiveness It is assumed that the online training provided to staff will be practical in
ensuring a smooth transition to the new system.
Constraints Possible impacts on the project
Budget The project is constrained by budget limitations, requiring careful allocation of
resources to maximize efficiency and minimize costs.
Time There is a time constraint to deliver the project within a specified timeline to minimize
disruption to ongoing operations.
Regulatory The project must comply with relevant regulatory requirements governing data
security and privacy in the retail industry.

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6 Resources and Estimates

Resources Role Description

Project Manager 1 full-time equivalent (FTE) overseeing the project

Human from initiation to completion.
Resources IT team 3 FTEs comprising developers, system administrators,
and database administrators for system
implementation and maintenance.
Training Coordinator 1 FTE responsible for organizing and conducting
online training sessions for staff.
Budget Allocation $26,000 for software licensing, hardware procurement,
Financial training expenses, and contingency.
Resources Contingency Reserve 10% of the budget for unforeseen expenses or project
risks.
Cloud Services Subscription to cloud-based inventory management
Material services.
Resources Hardware Purchase servers, networking equipment, and other
hardware necessary for system implementation.
Timeline Project Duration Estimated to be 12 months from initiation to
deployment, with regular milestone reviews to track
progress and mitigate risks.

7 Key stakeholders
Stakeholder
Title Role/Responsibility
category
 Responsible for providing necessary resources.
 They need to make sure that the project is aligned to a
Sponsors and Owners and
value delivery system and the organization’s strategic
Business partners shareholders
objectives

 Responsible for managing inventory.

Functional  Ensure the inventory is properly stored, tracked, and
Managers Warehouse managed.
Manager  Make sure the inventory is replenished on time as the
stock gets cleared.

 Responsible for delivering the products to customers.

Transportation  Should ensure the delivery is made on time and the
partner package is not damaged during transportation

 Analyse inventory data and provide insights to the

Inventory Analyst management.
 Make sure inventory data is up to date.
 Make sure the inventory is properly managed.

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 Project Name: Project Charter

 Responsible for maintaining financial data related to

the inventory management system.
 They should perform monitoring and reporting, financial
Financial Analyst
impact analysis, cost-benefit analysis, and financial
modeling.

 Responsible for making the inventory management

system flexible enough to adapt to the changing market
conditions.
 Should gather, analyze, and organize related
Strategic Planner
information for the organization.
Project  Plan on the work growth strategy by increasing the
Management Team accuracy of the inventory management system.

 Should set the project strategy in a way that it adds

value to the organization.
 Should make sure the new system is integrated with
Top Management
other systems and processes existing in the
organization

 Responsible for providing feedback

End users Customers

8 Team Operating Principles

Empathetic Communication: Be mindful of others' needs and establish unambiguous standards.

Timely Information: Don't hesitate to break bad news and spread the word.

Handle errors: Sincere Errors are welcome in this safe space; we'll work them out.

Appropriate Response Time: Give yourself enough time to respond.

Making Decisions in Gray Areas: Take charge of choices and proceed.

Support ideas: We support decisions made, even when we don't agree with them.

No Gossip: Refrain from chatting up people and act professionally.

Human Errors: Recognize that everyone has bad days.

Punctual and ready: Ready to make a meaningful contribution.

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9 Lessons Learnt
The project is about making a better system to keep track of the products in the warehouse and the

orders from the customers. The project team should consider how the system will work with the

company's goals, rules, and people. The project team should also talk to people who will use or be

affected by the system and ensure they are happy with it. The system should use the latest tools and

methods to make product tracking faster, easier, and smarter. The system should also help the

company make more money, save time, and please customers. This system is a long-term investment

towards benefits in terms of ease of business, solving multiple hurdles during the whole process. Also,

using it multiple times cherry-picks some minor bugs, or maybe some feedback from users can be

added to the next update if found valuable in contributing to the product's utility more efficiently.

Project Charter Approval Date: _____________________________________________

Sponsor Authorization: ___________________________________________________

____________

Signature

Project Manager Acknowledgment:

_________________________________________________________________________________

_______________

Signature

Revision History

Change Made By Date Change Details Of Change Change

Made Change Reviewed/ Reviewed /
Approval Date Approved

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