Fillable Printable Project Charter Pmbok Template
Fillable Printable Project Charter Pmbok Template
Project Charter Pmbok Template
OE PROJECT CHARTER
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PROJECT NAME:
Initiating Tools to Reduce Costs for Meal Plans
PREPARED BY:
Shawn LaPean
DATE (MM/DD/YYYY):
PROJECT CHARTER VERSION HISTORY
VERSION
DATE
(MM/DD/YYYY)
COMMENTS (DRAFT, SIGNED, REVISED – CURRENT STATUS)
DOCUMENT PURPOSE
The Project Charter documents the formal conversation between the Project Sponsor and the Project Manager/Team, including the
definition of success for the project.
Once approved, the Project Charter communicates the current agreement between the Project Sponsor and the Project Team
throughout the lifecycle of a project. The Charter provides a high-level overview of the project including the definition of project
success, and project resource (people and funds) requirements.
Requests and additions to the project scope are considered “out-of-scope” for the current project. When a scope change is required,
a change request will be documented that includes an impact analysis of project cost, resources, schedule, and risk. The Project
Sponsor then formally approves the scope change request.
The project manager will retain additional documents that provide detail on the management of the project, including a
communications plan, an issues log, a risk log, a change management plan, a budget, and a work schedule.
REVIEW & APPROVAL
(The Project Sponsor signature indicates approval of the Project Charter, and authorizes the Project Manager/Team to use
identified resources to proceed with the detailed planning and execution of the project; using this charter as guide.)
PROJECT SPONSOR(S) NAME
SIGNATURE
DATE
Associate Vice Chancellor LeNorman
Strong, RSSP
CASE FOR CHANGE
(What is the Current Situation?)
Housing and dining costs, a significant component of the overall cost of student attendance, has been rising and is becoming a
more critical factor in the competition to attract the best students. This project seeks to mitigate room and board price increases
for residential students through selected investments to improve dining operations efficiency.
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PURPOSE
(What problem will be solved by the project? What value does this project add to the organization? How does this project align
with the strategic priorities of the organization? What benefits are expected once the project is completed?)
The objective of this project is to reduce annual spending on food and beverage by approximately $500,000.
Housing and dining costs, as one component of the overall cost of student attendance, has been rising and is becoming a more
critical factor in the competition to attract the best students. Cal Dining, a unit of the Division of Student Affairs, Residential and
Student Service Programs, has been successful in delivering high quality, convenient, and affordable dining services to Cal Students
and the campus community. For the entering freshman class in particular, the combination of dining, housing and student services
designed around their needs help to integrate them into campus life and contribute to an overall positive student experience at
Berkeley.
The project will deliver on 3 key areas, outlined below, to improve dining operations efficiency and help to contain future increases
in the housing and dining component of the cost of student attendance at Berkeley:
1. Create a new position within Cal Dining responsible for food and beverage procurement;
2. Acquire and implement an integrated food service information system; and
3. Acquire and implement a food waste management system.
FOOD & BEVERAGE PROCUREMENT MANAGER
Dining will create a single Procurement Manager position to centralize and standardize Dining’s purchasing strategy in order to
realize efficiencies and economies of scale. Under the auspices of this project, a dedicated food and beverage Procurement
Manager will be recruited and hired to centralize responsibilities related to Dining’s annual food and beverage purchase.
The Food & Beverage Procurement Manager will:
• Create a more effective and efficient procurement best practice that reduces costs associated with a $12.2M food buy
• Reduce the total expense cost of the Cal Dining operational cost of goods sold resulting in lower residential board costs for
resident students
• Create new revenue or cost savings means by management’s ability to focus on operational effectiveness and efficiency
The Procurement Manager will achieve this by:
• Leveraging economies of scale to secure best prices and vendor rebates;
• Establishing best practice approaches for food & beverage procurement; and
• Allowing current dining assistant directors to focus on operational issues
INTEGRATED FOOD SERVICE INFORMATION SYSTEM
The project will implement an integrated food service information system to manage all aspects of dining operations and provide
timely, actionable data and reports to support management decision making. Specifically, this system will help anticipate and meet
student dining needs through improved menu design and inventory management, optimized staffing levels and targeted hours of
operations. The ability to provide feedback based on timely data and analysis will inform and support new dining items as student
food tastes change over time.
FOOD WASTE MANAGEMENT SYSTEM
Food waste management and prevention techniques provide a simple means to control food costs while maintaining food quality.
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Through this project, the University will acquire and implement a food waste management system to achieve the following goals:
• Reduce room and board expenses that may lessen the need for room/board price increases. Reduce all you can eat dining
waste by 1% to 3%. Current expense is 6.8M.
• Track and identify problematic areas such as source of waste to allow unit managers to develop measures and solutions to
reduce waste and subsequently reduce food costs.
• Create accountability tools for operational unit managers and their represented food production staff to proactively
reduce post-consumer waste, such as reviewing production and handling practices as well as better portion control.
• Reduce refuse and recycling by at least 1-2%.
• Collect and monitor necessary data to effectively measure and manage waste in all you can eat dining facilities.
RESULTS
(What does success look like? How do we know that the problem described above is resolved? This typically involves clarifying
metrics for operations once the project is completed.)
#
SUCCESS MEASURE
1
Food services annual spending on food and beverage is reduced by approximately $500,000.
2
Reduce all you can eat dining waste by 1% to 3%.
3
Reduce refuse and recycling by at least 1 to 2%.
4
Reduce cost per meal by $.08 per meal.
SCOPE
(The scope defines the boundaries in terms of where the project begins and ends. The scope describes what will be delivered -
where, when, and how. It describes the services, functions, systems, solutions, or tangible products for which the sponsor will take
delivery.)
This project is to be planned and delivered through UC Berkeley’s Residential and Student Services Program, Housing and Dining
Operations, Cal Dining. The scope consists of the following three components:
FOOD & BEVERAGE PROCUREMENT MANAGER
In financial times like these a cohesive purchasing strategy under a single Procurement Manager is an important way Dining can
reduce expenditures to pay for other costly aspects of managing a great dining program.
Currently, the procurement process for Cal Dining resides with two operations management personnel. Under the project, in order
to realize efficiencies and economies of scale, Cal Dining will centralize and standardize its annual food product purchasing strategy
and process under the leadership of a single Procurement Manager. This approach allows Dining, through the coordination of the
Procurement Manager, to create volume rebate and other monetary incentive programs with manufacturers and distributors and
to manage our business relationships, while retaining the individual character of campus dining units.
Creation of a Procurement Manager position allows Dining to establish a restaurant style of on going menu engineering the
effectively brings into alignment cost of goods sold with a food sourcing strategy that optimizes financial results and customer
satisfaction. This approach allows Dining to maintain high quality food procurement. Prime vendor relationships have become the
norm while sole sourcing is almost non-existent in today’s food services. As such, the Procurement Manager will change our “sole”
source distributor to a “prime” source distributor for the majority of our food products. Using a prime vendor relationship allows
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Dining to buy most of our daily food items at the same cost as a sole source would provide while allowing procurement of a range
of other food products that meet the needs of our customer. For instance, the Bay area has a wide range of ethnic food distributors
that would allow Dining to create menu items that have a more authentic ethnic cuisine flavor profile.
The Procurement Manager will oversee monitoring of the food products Dining purchases to ensure that quantity, quality, pricing,
rebates and service are at their utmost. This manager will pursue a procurement practice that takes into account market research,
management knowledge and trends all to create Dining’s purchasing approach to serving the needs of campus’s various dining
establishments and of our customer.
Managing the many aspects of the business relationship with the vendors is critical to the success of the food service program. The
Procurement Manager will manage each aspect of these relationships: contractual, distribution, product quality and promotional
programs. The dedicated manager is responsible for tracking purchases and monitoring invoice related situations, which is
enormously important to maintain the integrity of the program. Within Dining purchases of over 12.2 million dollars a year, the
strategy must ensure product quantity and quality standards are met daily. During this process, the project team will also explore
the centralization of invoice entry for both FoodPro and accounts payable.
Product movement of what is bought and sold will be constantly monitored through a system to ensure that Dining measures its
effectiveness in regards to procurement and cost relief. Rebates, GPO and other incentives are available and though a single
Procurement Manager, the University will benefit as this individual works to secure such monetary incentives. While the task
might seem easy, it takes continual meetings, partnering and relationship building with vendors.
A large portion of a Procurement Manager’s role is to perform contract management in conjunction with the RSSP buyer. The
Procurement Manager will manage all dining contracts to ensure compliance in an auditable fashion. Such focus will serve to
maximize the effects of Dining’s relationships with the vendor community. For instance, with regard to the University’s relationship
with Coke, currently, there is no one in dining is an expert on most aspects of the contract with the responsibility to monitor the
overall effectiveness of the relationship, and to discuss opportunities with management.
This Procurement Manager will:
• Measure buying and selling power
o Understand the new food service supply chain environment
o Change buying and selling processes, Ensure commitment to contract change management
o Develop an integrated supply chain
o Apply best practices from other NACUFS schools
o Create successful partnerships
• Maintain business contract practices, University, RSSP and state of CA.
o Conduct oversight of planning
o Ensure contract opportunity evaluation and risk management
o Verify contract visibility management and status
o Support timely corrective actions
Dining’s Procurement Manager also will create a “buyers circle” where management, students and other customers may review
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products that dining is considering. This could be a part of an overall dining committee or a sub-committee.
IMPLEMENT AN INTEGRATED FOOD SERVICE INFORMATION SYSTEM
The implementation an integrated food service information system will create the opportunity to:
• Reduce costs associated with dining operations that will eventually lead to lower dining expenses translating into reduced
annual price adjustments to room/board,
• Increase dining effectiveness and efficiency related to operational management time spent on tasks versus customer
service and the enhancement of our living/learning environments in the dining halls and retail operations, and
• Provide high level report functions that will provide dining management timely and actionable data to decrease the time
from knowledge of a possible budget shortfall and mitigates that shortfall.
The scope of the implementation of the food service menu management and POS system includes the following functions:
Desired Enhancements
A. On‐line Ordering. Currently Cal Dining staff forecast their menus and the system then generates
an order list based on anticipated inventory levels. Staff members then call their order in or go
to the vendor’s website and manually enter the desired quantity for the appropriate product
items. In the ideal world, staff members would identify the items they wish to order from each
vendor and this would electronically be sent from the food production / inventory system to the
vendor.
B. Scanning of receivables. Currently receivables are manually counted at the loading dock, after
which another person enters the information into a menu management system when they receive the approved
delivery slip. In the ideal situation, inventory items would be scanned and uploaded into the
menu management system eliminating the need for data entry.
C. Profit margin analysis. This feature should be available if all the information has been entered
into the menu management system correctly.
D. Training area within system. Having a designated “training” location within the system would
be helpful for the training process to ensure that any information that is entered does not affect
actual records / analysis.
E. Recipe tagging system to identify ethnic, allergens, organic. Most systems now have this
feature.
F. Variance / shrinkage report. These reports are available on most systems; however, if the
system does not forecast inventory items for consumption, then it is difficult to ascertain if
items were purchased or stolen. Integrating point of sale devices with the food production
inventory system would track these non-forecasted items and help identify potential problems.
G. 24 hour support. This is probably compounded by the fact that Food Pro’s, our current the menu management system
headquarters are on the East coast, creating a three hour time difference. Many of the systems on the market,
including Food Pro, are moving to a “help” feature that is html based, similar to what is available
with Microsoft Office products.
H. Electronic invoice upload and payment. This would be a time saver for the Cal Dining staff.Activities – control and
insight into your activity booking
I. Integrated labeling system that can be printed with pricing if so desired. This would especially
be helpful at service points, where customers want to read and know key ingredients,
potentially nutritional information, as well as the price of the item.
J. Ability to print bar codes for Grab ‘n Go products. As self check-out becomes more main
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stream or as campuses use more scanners at check-out stations, the ability to print a bar code to
adhere to grab ‘n go product made on campus will facilitate speed of service and identify the
item and price at the point of sale register.
K. A Windows based system would be more intuitive and probably more accepted by the younger
work force.
• Analytics – consolidate and leverage information to identify trends that will help increase
• Invoice and Document Management – scan , index, archive, store and retrieve online documents and images while
seamlessly integrating with existing applications
• Inventory & Procurement – provides real-time inventory information to help make good economic decisions by purchasing
of all departments and all locations
• Point-of-Sale (POS) – flexible to match our vision of how you want to operate, reliable enough to never get in the way of
serving our customers and scalable enough to accommodate future growth
• Self-Service – increases efficiency, speed service and ultimately provides customers a better experience
• Guest activity monitor – helps manage the front and customer information
• Labor Management – improves the efficiency and productivity of their workforce
IMPLEMENT A FOOD WASTE MANAGEMENT SYSTEM
Dining’s implementation of a food waste tracking systems will enable reduction of food waste from food procurement, storage,
trimmings, preparation, service, waste/spoilage and expiration. The ability to track and quantify food waste will not only help keep
meals affordable for students and support sustainable energy practices but it will also represent a significant opportunity to
enhance efficiency and save resources.
The scope of work will focus on the following areas:
• Reducing costs associated with dining operations that lead to lower dining expenses, which will translate into reduced
annual price adjustments to room/board;
• Increasing and providing and more effective operational management of the behaviors of represented production staff
which drive dining productivity and productiveness;
•
Increasing accountability measures for the management staff to hold unit manager, chef and represented staff responsible
for their food expenses;
• Provisioning of high level reports to provide dining management timely and actionable data with the goal of decreasing
time from knowledge of a possible budget shortfall to implementation of mitigation steps that address such shortfalls.
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PROJECT CONSTRAINTS & ASSUMPTIONS
(List the known and anticipated constraints, and the initial assumptions for the project.)
#
NAME
1
Food and Beverage Procurement Manager
• No constraints anticipated. Approved in the 2011-12 RSSP budget
2
Integrated Food Service Information System
• Hiring freeze
• SAIT’s willingness to support a Business system analyst that works for dining with strong dotted line to SAIT
• Capital costs approaching $500k
3
Food Waste Management System
• IT’s acceptance of selected technology
• Capital costs approaching $75,000
• Possible union push back on new work rules and accountability measures
PROJECT MILESTONES & DELIVERABLES
(List the major milestones and deliverables of the project.)
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MILESTONE
DELIVERABLES
DATE
FOOD & BEVERAGE PROCUREMENT
MANAGER
Job Description
Job description
Complete
Hiring request acceptance
Approval to recruit and hire a procurement
specialist/buyer
March, 2011
Recruitment
April-May, 2011
Hire
Transition from 2 operation management personnel to
new position
July 1, 2011
Train
Training of new position- UC procurement policies,
procedures and current food costing and buying tools
July, 2011
Review current buy
July, 2011
Create strategy documents for
savings
Document savings metrics
August, 2011
INTEGRATED FOOD SERVICE
INFORMATION SYSTEM
Project plan created
Project plan
May, 2011
Recruit, hire and train new IT FTE
New IT FTE on board
May-August, 2011
RFP for review of existing systems,
developing a solution strategy and
implementing that strategy
RFP issued
June, 2011
Vendor chosen and notified
Selected vendor
December, 2011
Solution is set up to extent
possible to run with concurrent
system.
Initiative solution installation
January, 2012
All bugs are mitigated, tested and
results identified
Ensure that reporting needs are met through new system
and that standards are maintained through unit
accountability measures
March, 2012
Complete transition to new
solution
Live operations with improvements to existing systems or
replacement of existing systems with new systems
June, 2012
FOOD WASTE MANAGEMENT
SYSTEM
Project plan created
Project plan
March 2011
Negotiations with AFSCME begin
April 2011
RFP for new waste management
system
RFP issued
May 2011
New system chosen and vendor
notified
Selected vendor
June 2011
System set up and working
Go live with new system; Management tools to focus on
behavioral changes in represented production staff
July 2011
Continual adjustment and review
Lower COGS; Ongoing refinements and operational
improvements
Ongoing
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IMPACT STATEMENT
(List the impact this project may have on existing systems and populations.)
POTENTIAL IMPACT
WHAT AND WHO IS IMPACTED
RATING (1-5)
1:Low |3: Med | 5:
High
FOOD & BEVERAGE PROCUREMENT
MANAGER
Will decrease the number of process steps to
complete food ordering
Dining Operations Management, Dining Executive Chef,
Procurement Manager, Food and Beverage buyers
4
Will increase accuracy of vendor invoice
payments
Accounts Payable
2
May increase cash discount and
rebate/incentive funds
Procurement Manager
2
Creates an opportunity to audit vendors
more easily
Procurement Manager, Audit and Control
4
INTEGRATED FOOD SERVICE INFORMATION
SYSTEM
Eliminates manual and time consuming
processes associated with dining’s current
systems
Dining Operations Management, Dining Executive Chef,
Unit Operation management
4
FOOD WASTE MANAGEMENT SYSTEM
Puts in place a system to track and calculate
the food waste (rather than human
calculation). New work rules for
represented production staff could result.
Dining Operations Management, Dining Executive Chef,
Unit Operation management
4
FINANCE DESCRIPTION
(Provide a high level narrative overview on the estimated investment requirements, the savings targets, and the ongoing funding
model.)
RSSP will fund the above investments/expenditures described below. The savings described below will accrue to RSSP; as an
auxiliary, the savings are not centrally captureable.
FOOD & BEVERAGE PROCUREMENT MANAGER
• Costs
o The yearly salary and benefit costs for the Procurement Manager are expected to be $91,000.
• Savings
o Yearly savings through lower COGS are expected to be $243,180.
INTEGRATED FOOD SERVICE INFORMATION SYSTEM
• Costs
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o The yearly salary and benefit costs for an IT specialist are expected to be $120,000
o One-time software licenses is expected to be $50,000
o On going maintenance expenses of $10,000
o One-time hardware purchase / equipment refresh is expected to be $500,000.
• Savings
o Yearly savings through cost avoidance and lower COGS are expected to be $336,000.
FOOD WASTE MANAGEMENT SYSTEM
• Costs
o There are no expected incremental costs for implementing the food waste management system.
• Savings
o Yearly savings through cost avoidance and lower COGS are expected to be $137,760.
RISKS
(Identify the high-level project risks and the strategies to mitigate them.)
RISK
MITIGATION STRATEGY
The Food Waste Management System creates the
opportunity implement accountability tools for operational
unit managers and their represented food production staff.
We anticipate possible union push back on new work rules
and accountability measures.
It will be important to introduce the tools in a way that makes clear
(in word and deed) that the goal is to reduce waste, and is not being
used to evaluate employee performance. Thoughtful, careful
messaging will be important.
Both the Integrated Food Service Information System and
the Food Waste Management System will require careful
coordination between Dining IT and SAIT. Unclear lines of
responsibility between Dining IT and SAIT will cause
confusion and missteps.
Early on enlist SAIT’s participation and management involvement.
COMMUNICATION
(Highlight the communication requirements between the Sponsor, the Key Stakeholders and the Project Team, including the
frequency of check-ins, project reviews, and status reports (in person and written).)
Sponsor / Project Team meetings
• The Project Sponsor will meet with the Project Team on monthly basis.
Project Sponsor / Project Team /SA IT Coordination Meetings:
• The Project Manager will initiate coordinate with SAIT on as needed basis.
Project Reviews:
• Each project will be reviewed 12 times during the implementation period.
Status Reports:
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• Monthly P&L’s , Monthly one on one meetings
