Final Project Charter nine
cjcfor
PROJECTCHARTER.FINAL.docx
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Project Name: Project Charter |
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Project Name: Value Driven Project and Portfolio Management in the Pharmaceutical Industry
Project Charter |
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Project: |
Value Driven Project and Portfolio Management in the Pharmaceutical Industry |
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Title: |
Project Charter |
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Document number: |
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Version |
0.1 |
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Document status: |
Final |
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Author: |
Chellyn Jones |
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Responsible: |
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Date created: |
14/08/2021 |
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Protection class: |
"For internal use only" |
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Document history
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Version |
Date |
Author |
Comment/Change |
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0.1 |
10/08/2021 |
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Draft |
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14/08/2021 |
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Final |
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Page
1 Background/Project purpose or justification 4
2.2 Scheduling goals/milestones
3 Project product description 6
8 Assumptions, restrictions and external dependencies 11
9 Responsibility of the customer 12
11 Project budget (overview) 14
13 Project end 16
Annex 17
A. Glossary and abbreviations 17
B. References, accompanying documents
1. Background/Project Purpose or Justification
Pharmaceuticals' perspective has shifted as a result of the rising healthcare expenses that are currently affecting everyone, and pharmaceuticals are focusing on the generation of value in research and development. Value-driven portfolio management is a term that has long been associated with the financial sector but has recently gained popularity in the pharmaceutical industry. The notion of value-driven portfolio management focuses on connecting a company's strategic goals and objectives with resource allocation. A corporation can raise the value of pharmaceuticals while also lowering healthcare expenses by focusing on studying the risks and effects.
The project's purpose is to create a value-driven project for the pharmaceutical company by following a set of decision-making stages. The steps will include developing a targeted product profile, defining a timeframe, developing a budget that is consistent with the goal product profile, and ultimately developing a stage gate decision-making system.
2. Goals
This section addresses the goals of the project which indicate what the project intends to achieve and the milestones related to the goals established.
a. Goals
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Goal |
Description |
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Efficiency |
Efficiency in the drug development process will mean that pharmaceuticals develop drugs through maximum utilization of the resources and ensuring that the waste products from the process are as minimal as possible. |
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Strategic alignment |
The goal is to come up with projects that are aligned with financial and strategic goals of pharmaceuticals. |
b. Scheduling Goals/Milestones
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Schedule |
Description |
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Phase 1 |
· Defining the scope and the budgets for the projects · Developing the goals of the project. · Evaluation of the potential risks
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Phase 2 |
· Coming up with the key performance indicators · Tracking performance. · Appraisal of performance. |
3. Project Product Description
The pharmaceutical company will have a framework at the end of the project to enable them improve their portfolio by transitioning to a value-based portfolio in the early stages of drug development. This will entail a number of steps, including refining development process techniques, developing a stage gate decision-making method, and aligning MPP and TPP criteria. This will be accomplished by establishing a multi-person portfolio and a project review board that will establish research requirements, stop/go criteria to be utilized for ongoing projects, understanding of capacity requirements for various initiatives, and assisting in the evaluation of development. All the projects which are in the POC stage will be subject to stage gated decisions which will be both quantitative and qualitative. The research portfolios shall be evaluated on the basis of the value, timing, cost, risks involved and the strategic fit.
4. Delivery Units
a. Delivery Units/Services
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Delivery Unit |
Description/Comment |
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Target Product Portfolio |
A definition of the product profile template that is made up of the targeted categories which align with the company goals that are related to R& D, and marketing. |
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Stop/go decisions |
Definition of the minimum product profile which creates a minimum threshold which is the basis of the stop/go decisions. |
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Project Evaluation |
Establish a review board for project and research portfolios. The board will include senior managers from different departments and will be monitored by CEO. |
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Definition of TPPs |
Definitions of the TPPs for the discovery research. |
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Scoring method |
Coming up with a scoring method that encompasses the value of project, costs involved, the time to market and the risks involved in the process of project evaluation. |
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Capacity management system |
Development of a system which encompasses input from all the project and functional managers. |
5. Project Success Criteria
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Project Success Criteria |
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Getting new drugs with the desired value. |
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Decision making process involves all stakeholders |
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The financial goals and aims are met. |
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There is use of decision trees with stages for an effective development process. |
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Alignment of portfolio with company goals and strategies. |
6. High-Level Risks
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Risk |
Possible Impacts on the Project |
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Weak MPPs for financial and risk analysis |
MPPs which are not well defined and weak will come up with projects which do not fit in the portfolio or are too far in the project cycle to be cut. |
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There is no buy in from senior management |
This means that the organization as a whole is not in support of the portfolio and the impact is that the things remain in status quo. |
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Premature project management. |
The weak project management office or a new office cannot support the high level decisions and analysis that is needed for the current projects. |
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Undiversification of portfolio |
The organizations that do not have a diverse portfolio have no competitive advantage in the healthcare industry. |
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TPP does not meet customer needs |
All R&D decisions are based on TPP and hence if the TPP does not meet the customer needs, there will be no sales for the product and the portfolio will have unsuccessful projects |
7. Key Stakeholders
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Name |
Role |
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CEO |
Makes all the strategic decisions concerning what is a fit for the company. |
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Shareholders |
They are the owners of the company and their desires are given more priority compared to the other stakeholders. |
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Head of Research &Development |
Communicates to the employees on where the research should began and bases proposals on the patient needs and emerging trends. |
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Functional Managers |
Assists with the correct resource allocation for ongoing R&D projects. |
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Healthcare Providers |
Prescription of drugs to patients. |
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Customers (patients) |
Purchasing and consumption of drugs |
8. Assumptions, Restrictions and External Dependencies
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A |
R |
E |
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R |
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Resources are not sufficient to create an effective review board |
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R |
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The portfolio criteria has to be completed within a short period of time so that it is used on the ongoing projects. |
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R |
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Resources which develop board do not get along and that results in inefficiency |
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A |
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Thought process is needed to change from increasing effectiveness to enhancing process efficiency |
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A |
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Company is an established entity in the pharmaceutical industry |
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E |
Portfolios must align with corporate strategy |
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A |
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Functional and senior managers are on board with the plan. |
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A = Assumption |
R = Restriction |
E = External dependency |
9. Responsibility of the Customer
a. Tasks
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Task |
Comment |
Contact |
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Regulatory agent |
Come up with regulatory and market prerequisites for TPP development. |
Marketing Department |
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Customer-Decision maker |
Creation of the targeted decision categories TPP |
Research and Design Department |
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Customer representative |
Prepare sales forecasts and market research for TPP analysis |
Marketing Department |
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Customer-Financial analyst |
Computation of NPVs for current projects to help in decision tree analysis and also sales forecasts. |
Project Managers /Marketing Departments |
b. Resources and Staffing
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Resources/Staffing |
Comment |
Contact |
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Assigning resource responsibilities |
Definition of the roles of different stakeholders. |
Company management. |
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Staff schedules |
Allocation of shifts and the working hours for employees and staff in the organization. |
HR management. |
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Benchmarking |
Bring together experts to develop benchmarking for the backup assessments |
Senior Managers. |
10. Project Category
According to the relevant requirements and experiences in the company, the project is classified based on the following predefined features.
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Project Category |
High |
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Project Categories: |
C Projects: |
B Projects: |
A Projects: |
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Complexity |
Low |
Average |
High |
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Risk & Impact on Company |
Low |
Average |
High |
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Strategic Importance |
Low |
Average |
High |
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Number of Persons on Project |
Generally 5–10 |
Generally 10–20 |
Generally > 20 |
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Project Duration |
Up to six months |
6–12 months |
6–24 months |
11. Project Budget (Overview)
The financial framework within which the project has to operate is described here. Depending on the size of the framework, it may make sense to provide further details for individual parts.
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Area |
Amount |
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Labor |
$360,000 |
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Materials |
$190,000 |
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Overheads |
$50,000 |
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Totals |
$600,000 |
12. Project Startup
The project is deemed started with the following signatures:
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Representative of Steering Committee |
Customer |
Project Manager |
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Signature
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Name |
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Date |
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13. Project End
Planned Project End:
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14/2/2022 |
a. Signatures for Release
The project manager is released with the signatures provided here following the project closing phase:
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Representative of Steering Committee |
Customer |
Project Manager |
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Signature
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Name |
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Date |
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Term |
Explanation |
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Total Product Portfolio |
Collection of all the products and services that are offered by a company. |
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Budget |
Estimation of costs involved in a project. |
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Strategy |
The way in which an organization desires to achieve objectives |
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II. References, Accompanying Documents
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Reference No. |
Title |
Doc. No. |
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1. |
Miguel, A., Madria, W., & Polancos, R. (2019, April). Project management model: Integrating earned schedule, quality, and risk in earned value management. In 2019 IEEE 6th International Conference on Industrial Engineering and Applications (ICIEA) (pp. 622-628). IEEE. |
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2. |
Cha, J., Newman, M., & Winch, G. (2018). Revisiting the project management knowledge framework: Rebalancing the framework to include transformation projects. International Journal of Managing Projects in Business. |
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File name: Project Charter.docx Page 4 of 19 Print date 05.05.16
