1- DEVELOP PROJECT CHARTER

DEVELOP PROJECT CHARTER Process Initiating Process Group

DEVELOP PROJECT CHARTER Process + IDENTIFY STAKEHOLDERS Process + PERFORMANCE DOMAIN I:

INITIATING ( 8 PM Tasks) = 13% of 200 Questions = 26 Questions

Close Project or Phase Process +PERFORMANCE DOMAIN V: CLOSING ( 7 PM Tasks) = 7% of 200 Questions =
14 Questions

PMP Preparation Course Eng. Ashraf Hamdan

 DEVELOP PROJECT CHARTER
1- Develop Project Charter is the process of developing a document that formally
authorizes the existence of a project.
2- Provides the project manager with the authority to apply organizational resources to
project activities.
3-The key benefits of this process are that it provides a direct link between the project
and the strategic objectives of the organization, creates a formal record of the project,
and shows the organizational commitment to the project.
4- Project manager is identified and assigned as early in the project as is feasible,
preferably while the project charter is being developed and always prior to the start of
planning.
5- Projects are initiated by an entity external to the project such as a sponsor, program, or
project management office (PMO), or a portfolio governing body chairperson or
authorized representative.
6- The project initiator or sponsor should be at a level that is appropriate to procure
funding and commit resources to the project.

PMP Preparation Course Eng. Ashraf Hamdan

DEVELOP PROJECT CHARTER

- Inputs ( Business case – Agreements – EEFs – OPAs )

- Tools & Techniques ( Expert judgment - Data gathering - Interpersonal
and team skills –Meetings )
- Outputs ( Project charter - Assumption log )

PMP Preparation Course Eng. Ashraf Hamdan

1.1 DEVELOP PROJECT CHARTER: INPUTS

1.1.1 BUSINESS DOCUMENTS

* Business case : Typically, the business need and the cost-benefit analysis are
contained in the business case to justify and establish boundaries for the project.
- Market demand
- Organizational need
- Customer request
- Technological advance
- Legal requirement
- Ecological impacts
- Social need

PMP Preparation Course Eng. Ashraf Hamdan

1.1.2 AGREEMENTS : Agreements may take the form of contracts, memorandums of understanding
(MOUs), service level agreements (SLA), letters of agreement, letters of intent, verbal agreements,
email, or other written agreements. Typically, a contract is used when a project is being performed
for an external customer.
1.1.3 ENTERPRISE ENVIRONMENTAL FACTORS
- Government or industry standards
- Legal and regulatory requirements and/or constraints,
- Marketplace conditions,
- Organizational culture and political climate,
- Organizational governance framework
- Stakeholders’ expectations and risk thresholds.
1.1.4 ORGANIZATIONAL PROCESS ASSETS
- Organizational standard policies, processes, and procedures;
- Portfolio, program, and project governance framework
- Monitoring and reporting methods;
- Templates (e.g., project charter template); and
- Historical information and lessons learned repository (e.g., project records and documents.

PMP Preparation Course Eng. Ashraf Hamdan

1.2 DEVELOP PROJECT CHARTER: TOOLS AND TECHNIQUES

1.2.1 EXPERT JUDGMENT

- Organizational strategy,
- Benefits management,
- Technical knowledge of the industry and focus area of the project,
- Duration and budget estimation, and
- Risk identification

1.2.2 DATA GATHERING

- Brainstorming : idea generation and analysis.
- Focus groups : stakeholders and subject matter experts.
- Interviews : obtain information on high-level requirements.

PMP Preparation Course Eng. Ashraf Hamdan

1.2.3 INTERPERSONAL AND TEAM SKILLS
- Conflict management: bring stakeholders into alignment on the
objectives.
- Facilitation: facilitator ensures that there is effective participation.
- Meeting management : agenda.

1.2.4 MEETINGS : meetings are held with key stakeholders to identify the
project objectives, success criteria, key deliverables, high-level
requirements, summary milestones, and other summary information.

PMP Preparation Course Eng. Ashraf Hamdan

1.3 DEVELOP PROJECT CHARTER: OUTPUTS

1.3.1 PROJECT CHARTER : high-level information, common understanding.

- Project purpose;
- Measurable project objectives and related success criteria;
- High-level requirements;
- High-level project description, boundaries, and key deliverables;
- Overall project risk;
- Summary milestone schedule;
- Preapproved financial resources;
- Key stakeholder list;
- Project approval requirements
- Project exit criteria
- Assigned project manager, responsibility, and authority level; and
- Name and authority of the sponsor or other person(s) authorizing the project charter.

1.3.2 ASSUMPTION LOG: technical specifications, estimates, the schedule, risks.

PMP Preparation Course Eng. Ashraf Hamdan

Initiating big project in your organization and stakeholders are confused
about why this project is undertaken and they don’t have any visibility. In
this case, which one is the best document you will use?

A. Charter
B. Scope Statement
C. Business case
D. Project Management Plan

PMP Preparation Course Eng. Ashraf Hamdan

Initiating big project in your organization and stakeholders are confused about why
this project is undertaken and they don’t have any visibility. In this case, which one
is the best document you will use?
A. Charter
B. Scope Statement
C. Business case
D. Project Management Plan
Correct answer (A)
Project charter contains the project purpose
At a high level, the project charter ensures a common understanding by the
stakeholders of the key deliverables, milestones, and the roles and responsibilities
of everyone involved in the project.
Refer PMBOK 81

PMP Preparation Course Eng. Ashraf Hamdan

Project can be initiated by all the following except?

1- Project Manager
2- Sponsor
3- PMO
4- Program

PMP Preparation Course Eng. Ashraf Hamdan

Project can be initiated by all the following except?
1- Project Manager
2- Sponsor
3- PMO
4- Program
Correct answer (1)
Projects are initiated by an entity external to the project such as a sponsor,
program, or project management office (PMO), or a portfolio governing
body chairperson or authorized representative. The project initiator or
sponsor should be at a level that is appropriate to procure funding and
commit resources to the project
PMBOK Page 77
PMP Preparation Course Eng. Ashraf Hamdan
The main responsibility of Sponsor to secure,

1- Materials and equipment

2- Funds and resources
3- Labors and materials
4- Tools and utility

PMP Preparation Course Eng. Ashraf Hamdan

The main responsibility of Sponsor to secure
1- Materials and equipment
2- Funds and resources
3- Labors and materials
4- Tools and utility

Correct answer (2)

The project initiator or sponsor should be at a level that is appropriate to
procure funding and commit resources to the project
PMBOK page 77

PMP Preparation Course Eng. Ashraf Hamdan

You and your project team have an important meeting with senior
management to discuss the strategic objectives of the organization, which
document provides a direct link between the project and the strategic
objectives of the Organization?
1- Business case
2- BENEFITS management plan
3- Project charter
4- PROJECT MANAGEMENT PLAN

PMP Preparation Course Eng. Ashraf Hamdan

You and your project team have an important meeting with senior management to
discuss the strategic objectives of the organization, which document provides a
direct link between the project and the strategic objectives of the Organization?
1- Business case
2- BENEFITS management plan
3- Project charter
4- PROJECT MANAGEMENT PLAN
Correct answer (3)
Develop Project Charter is the process of developing a document that formally
authorizes the existence of a project and provides the project manager with the
authority to apply organizational resources to project activities. The key benefits of
this process are that it provides a direct link between the project and the strategic
objectives of the organization, creates a formal record of the project, and shows the
organizational commitment to the project.
PMBOK page 75

PMP Preparation Course Eng. Ashraf Hamdan

You are a PM of an important project and periodically review the Project
charter, which criteria you will find?
1- Exit criteria and Success criteria
2- Entrance criteria and Exit criteria
3- Evaluation criteria and Decision criteria
4- Decision criteria and Success criteria

PMP Preparation Course Eng. Ashraf Hamdan

You are a PM of an important project and periodically review the Project
charter, which criteria you will find?
1- Exit criteria and Success criteria
2- Entrance criteria and Exit criteria
3- Evaluation criteria and Decision criteria
4- Decision criteria and Success criteria

Correct answer (1) PMBPK page 81

PMP Preparation Course Eng. Ashraf Hamdan

You are appointed as the new project manager for XYZ project which has
already progressed to Organizing and preparing phase so you need to know
the expected benefits could be gained by the implementation of the project,
which document you can review?
A. Project charter
B. Project benefits management plan
C. Business case
D. Benefits register

PMP Preparation Course Eng. Ashraf Hamdan

You are appointed as the new project manager for XYZ project which has
already progressed to Organizing and preparing phase so you need to know
the expected benefits could be gained by the implementation of the project,
which document you can review?
A. Project charter
B. Project benefits management plan
C. Business case
D. Benefits register
Correct answer (B)
Project benefits management plan contains the target benefits
PMBOK 33
PMP Preparation Course Eng. Ashraf Hamdan
You are appointed as the new project manager for XYZ project which has
already progressed to Organizing and preparing phase so you need to know
the preliminary key stakeholder list of the project, which document you can
review?
A. Project charter
B. Communication management plan
C. Stakeholder engagement plan
D. Stakeholder register

PMP Preparation Course Eng. Ashraf Hamdan

You are appointed as the new project manager for XYZ project which has
already progressed to Organizing and preparing phase so you need to know
the preliminary key stakeholder list of the project, which document you can
review?
A. Project charter
B. Communication management plan
C. Stakeholder engagement plan
D. Stakeholder register
Correct answer (A)
Project charter contains the key stakeholder list
PMBOK 81
PMP Preparation Course Eng. Ashraf Hamdan
You are appointed as the new project manager for XYZ project which has
already progressed to Organizing and preparing phase, you need to present
the summary milestone schedule to your senior management, from which
document you can get this information?
A. Project charter
B. Milestone register
C. Scope statement
D. Milestone management plan

PMP Preparation Course Eng. Ashraf Hamdan

You are appointed as the new project manager for XYZ project which has
already progressed to Organizing and preparing phase, you need to present
the summary milestone schedule to your senior management, from which
document you can get this information?
A. Project charter
B. Milestone register
C. Scope statement
D. Milestone management plan
Correct answer (A)
Project charter contains the summary milestone schedule
PMBOK 81
PMP Preparation Course Eng. Ashraf Hamdan