Final Project Charter nine

Due to the increase in Medicare costs in many companies the issue of shifting towards value driven project management. The concept of portfolio management has been use in most of the industries and businesses and can also be used in the streamlining of the activities within the pharmaceutical industry. The main focus of the value driven project management is the processes and the research & Development. It also focuses on the resource allocation and aligning the goals of the projects with the strategic goals that are in place for the organizations. The concept of value driven project management has been implemented in the process of drug development and also in the research conducted for the development process.

Scope Description

The project has a wide range of activities which range from the development of the project management all the way to project analysis and analysis of the outcomes. The primary aspects of the project is four integrated decision making steps that comprise of stage gate decision process, budget and timeline management, and alignment of the sales forecast with the target product profile. The project also involves the application of the of portfolio management in financial analysis and drug development in various companies.

Project Boundaries

The project mainly includes the implementation of value driven portfolio management in the pharmaceutical industry. The project is limited to a few activities as follows; it is currently limited to the implementation of the portfolio management framework in the pharmaceuticals. The implementation will be based on various decision making strategies and processes which will be accompanied by the timeline of the implementation process. The project also involves financial assessments and risk analysis. There will also a basis to be used in measuring the validity of the project and also the basis will be used in ensuring that the highest value is derived from the project.

There are various strategies that will be utilized in the project to ensure that it is a success. One of the strategies is cost minimization; since the main aim of the project is to minimize the costs one of the strategy that will be used is ensuring very minimal costs are used in the implementation are as minimal as possible. Another strategy that is useful in the project is ensuring efficient allocation and use of the resources in the pharmaceutical companies (Alkhaffaf, 2018). This strategy will ensure that there is minimal wastage of the resources and that the best outcomes are achieved in the projects. Another strategy is portfolio diversification to ensure that the risks of the projects are well balanced for the pharmaceutical companies; a balanced risk project portfolio will be good for the companies and will ensure good returns and performance of the companies.

One of the primary goals of the project is to ensure that the drug development process is cheaper so that the overall costs of healthcare for the companies go down. In some of the companies there is a quality problem. The solution to the issue will be based on the impact of portfolio management in the drug development and the research processes involved in the project management process. An analysis of the financial metrics and financial analysis are part of what will be delivered by the end of the project as well. These analyses will be found in the product development and process planning. Finally an implementation strategy and decision making strategy for the value driven project management based on the process identified will be delivered.

A project has to meet a set of conditions to be accepted. First, a project should consider all the possibilities during the decision making process and also ensure that all stakeholders are involved in the process. The value of the drugs will be based upon the costs used in the production process compared the sales made and the effectiveness of the applications of the drugs. The companies will also consider financial targets that will be set prior to the commencement of the projects; if a project meets set financial targets it is acceptable and vice versa.

There are two constraints for the project; time and finances. The project has to be completed within a certain duration and hence a schedule will be needed to help ensure that the project deliverables and milestones are completed within the set time (Tereso et al., 2019). Another constraint is finances where the projects have to be within the set budget and this is because if they are not within the budget the pharmaceuticals will need additional financing and this means that it will add to the healthcare costs which these companies are trying to minimize.

For the success of the project there are various assumptions which will be made in the process. One there is an assumption that if the specifics are well followed then the end product will have the ability to solve the problem at hand. Another assumption is that the stakeholders will agree with the project and it will be completed at the stipulated time and within the set budget.

The following is the cost estimates based on the data sets provided

Cost Benefit Analysis

The costs involved will include the purchase costs of the materials and supplies for the drug development process. The benefits outweigh the costs. The benefits include value creation which will be decreased healthcare costs, and the increased sales in the pharmaceutical companies (Armenia, et al., 2019).

Sponsor Acceptance

Approved by the Project Sponsor:

Date:

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<Project Sponsor Title>

References

Alkhaffaf, M. (2018). The Role of user Involvement in the Success of Project Scope

Management. International Journal of Advanced Computer Science and Applications, 9(10.14569).

Armenia, S., Dangelico, R. M., Nonino, F., & Pompei, A. (2019). Sustainable project

management: A conceptualization-oriented review and a framework proposal for future studies. Sustainability, 11(9), 2664.

Derenska, Y. M. (2018). Project scope management process.

Lampa, I. L., de Godoi Contessoto, A., Amorim, A. R., Zafalon, G. F. D., Valêncio, C. R., & de

Souza, R. C. G. (2017, April). Project scope management: A strategy oriented to the requirements engineering. In International Conference on Enterprise Information Systems (Vol. 2, pp. 370-378). SCITEPRESS.

Tereso, A., Ribeiro, P., Fernandes, G., Loureiro, I., & Ferreira, M. (2019). Project management

practices in private organizations. Project Management Journal, 50(1), 6-22.