What is Project Charter

A project charter is a short document that includes information about the team and what they plan to accomplish. The purpose of the charter is to set expectations that can be agreed upon by the team as well as the sponsor, keep the tram focused on the goal and ensure the project remains aligned with the goals of the business.

Minimally, Project Charter should include:

• A complete and concise Problem Statement
• The names and roles of members involved in Six Sigma team
• The name of the sponsor or champion
• The duration of the project (with start and end dates)
• A list of both internal and external process customers, that can be demonstrated using SIPOC map
• A list of Critical to Quality (CTQ) metrics or measurements that can be used as the yardstick to measure the project success

other important elements to be considered includes:

• Business Case – It is a short statement that provides the reason the project should be undertaken including the financial drivers behind the project. 
  • Business Case vs Problem Statement
    • Problem Statement – Where, when and how problem occurred
    • Business Case – Why it is important the problem is resolved
• Project Scope – a hard beginning and end of the process or problem being considered. It could in the form of list of items or activities that are in scope and out of scope. For example,
  • Beginning when a customer places an order and ending when the order is boxed for shipment
  • NOT, beginning at the order stage and ending with fulfilment
• List of Stakeholders – Listing of major stakeholders on the charter that helps the team understand who and what they are likely to impact in addition to end customers.
• Milestones – Teams should ensure a date is provided for the end of each of the DMAIC phases, and that all team members have agreed on the date. For the more laborious Measure, Analyze, and Improve phases; additional milestones may be set.
• Expected Financial Benefits – This may be included in business case section of the charter. And it is always better not to over-promise, and set realistic targets that are achievable. 

Review the Charter with seeking for approval

Questions the team would ask itself about a charter:

• Are goals, financial expectations and timeline achievable (challenging but realistic)? 
• Can everyone on the team devote the committed amount of time to the project?
• Is the project backed by a sponsor or champion with enough influence to drive critical assistance and resources?
• Does the team expect to be supported by auxiliary departments such as information technology, human resources, compliance, accounting, or legal as necessary for project success?
• Does the team expect to have the necessary freedom to implement a solution it designs after the solution is approved by the sponsor, champion, or executive steering committee?
• Does the team have a leader who is well-versed in Six Sigma tools and project management?