How to Create a Simple Six Sigma Project Charter
Project charter in Six Sigma projects describes the high-level requirements for the success of project, acting as the project detailed road map, clearly defining the problem to be addressed, who participates, the targeted result(s) and the project’s deadlines. It is a living document that clearly states the scope and purpose of any Six Sigma project. The word ‘living’ is used to denote flexibility, meaning that the Six Sigma Project Charter may change with change in the project’s level of details.
To every Six Sigma project, there is always a definite beginning and a definite end. The Six Sigma project charter contains summary of the official authorization for the project. It is a working document, as well as a sponsor document, serving as a contract for work between the project team and sponsors of the project. Before any work begins on a project, developing and publishing the Six Sigma project charter is the first step that must be taken.
The Six Sigma project charter helps to clarify what is expected of the team; enhances team focus and helps them align with process priorities. The Six Sigma project charter cannot be said to be complete until it is approved by the project sponsor approves and properly communicated to all that are concerned (i.e. the appropriate stakeholders).
The Six Sigma project charter consists of objectives that have to be measurable or quantifiable, scope of the project (that is, the project organizational and operational boundaries) and complete support of the top management. The top management needs to be fully committed to the project too enable its success.
6 Elements of the Six Sigma Project Charter
The project charter of a Six Sigma project, although quite simple, requires some investment in terms of time. While an organization might have their own ways of presenting Six Sigma Project Charter, the following elements are common to them all.
Business case
The business case is the first element in a Six Sigma project charter, containing the reason for taking up the project. It clearly in a simple manner defines the measurable benefits of the project (i.e dollar saved, defects reduction, changeover time reduction, reduction in amount of rework and waste generated etc.) and how the benefits match up with the overall business goals. The business case helps to establish how the project aligns with the organization’s strategies.
Problem/opportunity statement
The problem statement, which in some cases may be called an opportunity statement, is the second element of the Six Sigma project charter is the problem statement. The problem statement may refer to business problem or pain, while an opportunity statement refers to an improvement opportunity or process improvement opportunity to exceed stakeholders’ expectations. The problem statement should be written in such a way as to state what is wrong, where in the process the problem is occurring, and the magnitude of the problem.
Goals
This is the third element of the Six Sigma project charter. This section should state what the project is meant to accomplish. In terms of process improvement, the column simply refers to the measurable objective of the improvement initiative. The goal statement should be written to describe what is to be accomplished as a result of the project implementation, a measurable target for the desired result, and projected completion date to accomplish the goal. It should be noted that the goal statement is not meant to provide solution to the problem since that is the essence of the project.
Project Scope
The project scope is the fourth element of the Six Sigma project charter. It describes the project organizational and operational boundaries, the boundary conditions and important parameters included and not covered by the project.
Project Plan
This is another important element of the Six Sigma project charter, consisting of the major milestones of the project. The plan contains chart which will consists of the steps of DMAIC model (Define, Measure, Analyze, Improve, and Control). The project plan should be able to answer key questions of “Who, What, Where, When, How, and How much”, which includes the required resources such as the 4Ms - Man, Machine, Methods and Materials needed for the project. It is at this phase that the project activities with each schedules and resources required are identified.
Team Structure
The team structure is the sixth element of the project, referring to the project human resources. These resources include the Project Managers, Leaders and Project Team Members who are involved in the project.
About the Author
Adebayo is a thought leader in continuous process improvement and manufacturing excellence. He is a Certified Six Sigma Master Black Belt (CSSMBB), Digital Manufacturing Professional and ISO Management Systems Lead Auditor (ISO 9001, 45001 & ISO 22000) with strong experience leading various continuous improvement initiative in top manufacturing organizations.
You can reach him here.
