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The Project Charter Development paper
BUS 633: Project & Operation Management
ILS has acquired a logistics company in Peru, this facility is near some Walmart in the
area, and the company would like to gain Walmart's Business. The previous company left plenty
of problems for ILS to solve, like safety issues in 2018. The previous logistics company had 13
lost time accidents in the warehouse. Two severe accidents while transporting inventory to a
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customer's facility, the electrical bills were high. Energy waste was evident (lights were left on
after hours), the warehouse is disorganized, equipment is outdated, employees are not adequately
trained, the turnover rate was 25% last year before the acquisition, and processes are not
documented. This charter's primary goals are to solve the issues previously mentioned and ensure
that ILS gain Walmart's business in Peru by demonstrating the same best in class customer
service that ILS is worldly recognized for around the world(Kloppenborg et al., 2019).
This charter is limited to the data provided by the previous logistics company. Also, the
budget given for the project was $500,000, which $400,000 covered the acquisition of the
business. In addition, ILS has allocated the reminding $100,000 to solve the current issues. The
expected turnover rate of the project is between a year. The number one issue ILS would be
focusing on is safety. It is the key to the business's successes, so the first step is to establish a
safety sponsor, who will train and build the employees' capabilities on safety. As part of the
safety training, ILS will also include six weeks driving school refreshment for current drivers,
and 12 weeks for all new drivers. ILS must reduce electrical cost; we will be installing automatic
motion sensors that will turn off lights after hours of operation; this will reduce costs and
increase profitability (Parks, 2019).
Moreover, to increase productivity, it would be essential to create an organization system
in the warehouse. We will label the warehouse and color coordinate to achieve maximum
efficiency when storing products. Along with organizing the warehouse, we will repair the old
and non-functioning equipment and replace the one unable to repair. We do not want quick fixes,
but sustainable changes in the new warehouse, so there would be trainers for the different
The Project Charter Development paper
BUS 633: Project & Operation Management
ILS has acquired a logistics company in Peru, this facility is near some Walmart in the
area, and the company would like to gain Walmart's Business. The previous company left plenty
of problems for ILS to solve, like safety issues in 2018. The previous logistics company had 13
lost time accidents in the warehouse. Two severe accidents while transporting inventory to a
, 2
customer's facility, the electrical bills were high. Energy waste was evident (lights were left on
after hours), the warehouse is disorganized, equipment is outdated, employees are not adequately
trained, the turnover rate was 25% last year before the acquisition, and processes are not
documented. This charter's primary goals are to solve the issues previously mentioned and ensure
that ILS gain Walmart's business in Peru by demonstrating the same best in class customer
service that ILS is worldly recognized for around the world(Kloppenborg et al., 2019).
This charter is limited to the data provided by the previous logistics company. Also, the
budget given for the project was $500,000, which $400,000 covered the acquisition of the
business. In addition, ILS has allocated the reminding $100,000 to solve the current issues. The
expected turnover rate of the project is between a year. The number one issue ILS would be
focusing on is safety. It is the key to the business's successes, so the first step is to establish a
safety sponsor, who will train and build the employees' capabilities on safety. As part of the
safety training, ILS will also include six weeks driving school refreshment for current drivers,
and 12 weeks for all new drivers. ILS must reduce electrical cost; we will be installing automatic
motion sensors that will turn off lights after hours of operation; this will reduce costs and
increase profitability (Parks, 2019).
Moreover, to increase productivity, it would be essential to create an organization system
in the warehouse. We will label the warehouse and color coordinate to achieve maximum
efficiency when storing products. Along with organizing the warehouse, we will repair the old
and non-functioning equipment and replace the one unable to repair. We do not want quick fixes,
but sustainable changes in the new warehouse, so there would be trainers for the different
