Document Code: PMBOK4.1.3.

Coca Cola Beverages Botswana

Managing Director of Coca Cola Beverages Botswana
Mr. David Chait

17 March 2023

DESIGN & CONSTRUCTION OF A SPARE PARTS STORAGE

FACILITY FOR THE MANUFACTURING PLANT

Project Charter

For internal use Coca Cola Beverages Botswana, 2023 Page 1 of 8

 DESIGN & CONSTRUCTION OF A SPARE PARTS STORAGE FACILITY FOR
THE MANUFACTURING PLANT Revision: <6.0>
Project Charter Date: 21 March, 2023
Document Code: PMBOK4.1.3.1

List of Changes
Date Revision Description Author
<m/d/yyyy> <6.0> Publication for use <Author>

 Revision: The revision number of the document (the first digit is increased and the second one is
set to zero if significant changes are made in the document; the second digit changes if the minor
changes are made).
 Description: A detailed description of the revision and the amendments (for example, Publication
for internal comments, Publication for use, Publication with changes in Chapter X, etc.).
 Author: Full name of the amendments’ author.

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 DESIGN & CONSTRUCTION OF A SPARE PARTS STORAGE FACILITY FOR
THE MANUFACTURING PLANT Revision: <6.0>
Project Charter Date: 21 March, 2023
Document Code: PMBOK4.1.3.1

Table of Contents
1. General Provisions

2. Normative References

3. Terms, Notations, Abbreviations

4. Project Purpose

5. Measurable Project Objectives and Related Success Criteria

6. High-Level Requirements

7. High-level Project Description, Boundaries and Key Deliverables

8. Overall Project Risk

9. Summary Milestone Schedule

10. Preapproved Financial Resources

11. Key Stakeholder List

12. Project Approval Requirements

13. Project Exit Criteria

14. Project Manager

1.

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 DESIGN & CONSTRUCTION OF A SPARE PARTS STORAGE FACILITY FOR
THE MANUFACTURING PLANT Revision: <6.0>
Project Charter Date: 21 March, 2023
Document Code: PMBOK4.1.3.1

1. General Provisions
1.1. This document refers to the project "DESIGN & CONSTRUCTION OF A SPARE PARTS
STORAGE FACILITY FOR THE MANUFACTURING PLANT", which is implemented by the
organization "Coca Cola Beverages Botswana".
1.2. The Project Charter formulates the practical requirements and documents the high-level
description of the product, service or other deliverable that should meet these requirements and
will be result of the project.
1.3. The Project Charter is issued and signed by the Initiator or Sponsor of the project and formally
legitimized the existence of the project. It provides the Project Manager with the authority to use
the organizational assets in the project operations.
1.4. The approved Project Charter formally initiates the project.
1.5. If the project consists of several phases, the Charter can be updated to verify or improve the
decisions taken during the previous iteration of the Project Charter development. In such a case
the Charter is re-issued and signed as amended.

2. Normative References

2.1. This document refers to the following documents:

Number Name Publishing Author
Date
A Guide to the Project Management Body of
PMBOK® Guide 2017 PMI
Knowledge — Sixth Edition
PMBOK4.1.1.1 Business Documents PM
PMBOK5.2.3.2 Requirements Traceability Matrix PM
PMBOK5.3.3.1 Project Scope Statement PM
PMBOK6.2.3.3 Milestone List PM
PMBOK7.3.3.1 Cost Baseline PM
PMBOK10.1.3.
Communications Management Plan PM
1
PMBOK11.2.3.
Risk Register PM
1
PMBOK12.2.3.
Agreement PM
2
PMBOK13.1.3.
Stakeholder Register PM
1

3. Terms, Notations, Abbreviations

3.1. Terms used in this document:

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 DESIGN & CONSTRUCTION OF A SPARE PARTS STORAGE FACILITY FOR
THE MANUFACTURING PLANT Revision: <6.0>
Project Charter Date: 21 March, 2023
Document Code: PMBOK4.1.3.1

Term Definition
Organizational Process Plans, processes, policies, procedures, and knowledge bases that
Assets are specific to and used by the performing organization.
Deliverable Any unique and verifiable product, result or capability to perform a
service that is required to be produced to complete a process,
phase, or project.
Requirement A condition or capability that is necessary to be present in a product,
service or result to satisfy a business need.
Stakeholder An individual, group or organization that may affect, be affected by,
or perceive itself to be affected by a decision, activity or outcome of a
project, program, or portfolio.
Enterprise Conditions, not under the immediate control of the team, that
Environmental Factors influence, constrain or direct the project, program, or portfolio.
Objective Something toward which work is to be directed, a strategic position
to be attained, a purpose to be achieved, a result to be obtained, a
product to be produced or a service to be performed.

3.2. Notations used in this document:

Notation Complete Form
Organization Coca Cola Beverages Botswana

3.3. Abbreviations used in this document:

Abbreviation Complete Form
PMBOK A Guide to the Project Management Body of Knowledge
MTTR Mean time to Repair

4. Project Purpose
4.1. The intent of this project is primarily to reduce downtime & stock losses costs incurred by the
business because of poor inventory control. The project aims to reduce downtime losses by
providing a fully functional access-controlled storage facility. There is a need to achieve the
business strategy being “to drive optimal stocking levels across the packs and pursue world class
stock management controls”. This strategy is driven by ensuring waste (breakages, expires &
unaccountable losses) is eliminated. This project seeks to improve operational efficiency by
reducing MTTR (Mean time to repair and thus aligning to the business strategy.

5. Measurable Project Objectives and Related Success Criteria

5.1. The objective of the project is to reduce operational wastage, downtime and stock losses and
improve stock management process by 90%.

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 DESIGN & CONSTRUCTION OF A SPARE PARTS STORAGE FACILITY FOR
THE MANUFACTURING PLANT Revision: <6.0>
Project Charter Date: 21 March, 2023
Document Code: PMBOK4.1.3.1

5.2. Project objective is to Design & build a stores facility to improve inventory management.
5.3. The project is expected to reduce emergency purchases by 80%.
5.4. Stock variance (losses) to be reduced to <100K

6. High-Level Requirements
6.1. As per the business strategy, the requirement is to reduce operational waste (breakages, expires
& unaccountable stock).
6.2. Improve stock management process by 90%.
6.3. Reduce average MTTR by 60%
6.4. Design a digital catalogue to function with the storage facility

7. High-level Project Description, Boundaries and Key Deliverables

 Project Description

The project focuses on CCBB supply chain department, particularly inventory controls. There is
a need to provide a storage facility and drive down inventory losses. The aim of the project is to
design & build a storage facility that will aid in cost reductions.
 Project Boundaries
The Project will not have significance on the knowledge & skills of the artisans regarding spares
The project does not cater for post design support for the catalogue software
 Project Key Deliverables

Reduce average MTTR by 60%.

Improved spares storage conditions
Reduce stock variance (unaccounted stock) to <100 000

8. Overall Project Risk

Id Risk Impact (Time, Proba Impact Score Mitigation
Cost, bility
Performance)
01 Cost overruns Cost 2 3 5 Track project cost
accordingly
02 Incompetent contractor Time, 2 3 5 Entrance contract planning
Performance & & administration
Cost
03 Design Errors Time & 1 2 3 Have a clearly defined
Performance design process
04 Unavailability of Funds Time & 2 3 5 Induct contractors on safety

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 DESIGN & CONSTRUCTION OF A SPARE PARTS STORAGE FACILITY FOR
THE MANUFACTURING PLANT Revision: <6.0>
Project Charter Date: 21 March, 2023
Document Code: PMBOK4.1.3.1

Performance and monitor them closely

05 End User might not use digital Performance 2 2 4 Identify, train & do change
catalogue management for relevant
s/holders

Probability Key: Unlikely=1 Likely=2 Very Likely=3

Impact key: Low=1 Medium=2 High=3
9. Summary Milestone Schedule

No. Milestone Responsible Party Date

0. Project Start
1. Design approvals Packaging Manager 23 May
2. Contracts Issuing Procurement Manager 26 May
3. Structure Completion Packaging Engineer 15 Sep
4. Rails & Lin bin layout Stores Controller 29 Sep
5. Catalogue design approvals Store Controller 24 Oct
6. Spares Relocation Stores Controller 31 Oct
7. Piloting (Acceptance Test) Packaging Engineer 10 Nov
8. Handover Packaging Manager 11 Nov

10. Preapproved Financial Resources

PROJECT FINANCIAL RESOURCES

Materials/Resources/Cost Amount
Temporary Storage Containers BWP 680 580.00
Spares Relocation BWP 26 000.00
Store Design & Layout BWP 500 000.00
Structure BWP 1 134 290.00
Shelving & Arrangement BWP 1 820 937.60
Catalogue design BWP 460 000.00
Spares arrangement BWP 32 000.00
Training BWP 25 000.00
Total Project Cost BWP 4 678 807.60

11. Key Stakeholder List

Full Name Position/Organization Role in the Project Telephone/E-mail

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 DESIGN & CONSTRUCTION OF A SPARE PARTS STORAGE FACILITY FOR
THE MANUFACTURING PLANT Revision: <6.0>
Project Charter Date: 21 March, 2023
Document Code: PMBOK4.1.3.1

Full Name Position/Organization Role in the Project Telephone/E-mail

David Chait Director, CCBB Sponsor +267 76548303
Onewamang Letsatsi Engineer, CCBB Design Approvals +267 77481013
Onalethata Gaepongwe Store Controller Final User +267 71440842
Tshepiso Ranko Project Manager, CCBB Manage project +267 72503565
Thabo Makala Shelv Pioneers Pty (Ltd) Contractor +267 72450982
Musa Qinisile Stefanutti Stock Contractor +267 77904572

12. Project Approval Requirements

By signing below, the project Sponsor acknowledges and authorize the project to continue to next
stage. By signing this document, the Project manager acknowledges & accepts the full
responsibility & authority bestowed upon him/her to coordinate this project.

Name: _________________ Position: _____________ Sign: ___________ Date: ____________

Name: _________________ Position: _____________ Sign: ___________ Date: ___________

13. Project Exit Criteria

13.1.
The project shall be deemed successful should the following requirements be realized:
 Stock loss risk is reduced by 90%
 MTTR is reduced by 60% for spares related breakdowns
 Reduced stock variance to <100k
 Access controlled and functional stores facility
 Temperature controlled stores facility meeting the required standard
 Safe and user-friendly dust proof facility
 Functional user-friendly digital catalogue to complement the facility

14. Project Manager

The assigned project manager is:
Name: Tshepiso Ranko
Responsibility: Project Delivery
Authority: Manages project team
14.1.
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