Six Sigma Project Charter: Complete Guide
In Six Sigma Definition: Six Sigma is a set of techniques and t... Learn More..., a project chart is a document template of two pages that describes examples of a project for There are many ways to organize your lean six sigma processe... improvement. The What is a Six Sigma Project Charter? The project charte... Learn More... includes data-driven information that explains the need for the particular project. The document will become the primary reference for the Six Sigma Definition: Six Sigma is a set of techniques and t... Learn More... team once it is approved.
A LEAN Definition LEAN is a production method aimed primarily ... Learn More... Six Sigma chart is similar to traditional What is a Six Sigma Project Charter? The project charte... Learn More... examples in that it’s the first document that communicates the project’s goal. The document is updated and reviewed by the team throughout the project’s lifecycle.
These key elements are common to both traditional project charters as well as Six Sigma project charts:
- Agreement Document a contract between the A project team level may consist of master black belts or gr... Learn More... and management.
- Alignment Align the project goals to the organization’s goals.
- Business Case: Present the business case of the project.
- Outline Provide a broad outline for the project.
- Overview Describe project objectives, resources needed, and timeline.
- What is a Project Scope? The project scope (PS) is a part of... Learn More...: Define project scope.
- Reference: Serve as a point of reference throughout the entire project.
How to prepare a Six Sigma Project Charter
Depending on the size of the project, it can take up to six weeks for a Six Sigma project chart to be prepared. The project A Champion in a Six Sigma initiative is the executive sponso... Learn More... gathers all the data and organizes it into a brief document. Champions communicate with the management and key stakeholders on each activity. Six Sigma project charts will be based on Six Sigma method examples.
The champion will organize and build the What is a Six Sigma Project Charter? The project charte... Learn More... in the first phase of the project. It doesn’t matter if they use the six sigma methodologies DMAIC is an abbreviation of the five improvement steps it co... Learn More... or DMADV is an acronym that stands for Define, Measure, Analyze... Learn More....
DMAIC is a popular Six Sigma project method. The project champion is responsible for the following activities during the define phase:
The project champion will assign data collection to Green Belts or Black Belts. The team will work for a couple of weeks to collect any data necessary to support the project. The champion will then enter the information into a six sigma project template for a charter and work with the team to refine the document.
Consider competing priorities
This activity allows the team to optimize their time and manage scope expansion. To determine the best actions to take, teams use a quadrant diagram, also known as a PICK chart or payoff matrix (possible implement challenge and kill).
Create a PICK chart by creating a chart that has four quadrants as shown in the above image. Discuss and then place each project activity onto the chart.
Here are the four quadrants and what they mean on a PICK chart:
- Possible Items that are low-rewarding, but easy to achieve.
- Implement high-payoff, low-difficulty items that are essential for the project.
- Challenge Items that are difficult but high-payoff. They will be a challenge, but they might be worth it.
- Kill: Highly difficult, low-pay-off things that are not worth tackling and should be killed.
Include any items from the Implement section in your project activities. Remove all items from the Kill section. Finalize the discussion with the team on the items from the other two sections before you decide which ones to include.
Before presenting it to the management, the project leader edits and reviews the Charter and asks for any additional supporting data.
Submit for Approval
The champion presents the finalized charter as a project charter to the sponsor. Before signing off on a project, the sponsor will seek consensus from all parties involved.
Schedule formal and informal updates
The champion should be vigilant in revisiting the charter on a regular basis once the management has approved the project. Eckes emphasizes the importance of updating the document. He says that the project champion should constantly review the charter and make any necessary changes to ensure that it is a living document, rather than a static document that was created early in the life cycle of the project team.
Eckes suggests scheduling formal and non-formal updates to the Charter: “Once the team has collected the data (about four to six weeks from now), the project champion will revisit the Charter and make changes based on the collected information.”
What should be included in a Six Sigma Project Charter
Six Sigma project charts include six main elements: the business case, the problem or opportunity statement, and goal statement. They also include timelines and milestones and members of the team. Charters can combine timelines, milestones, and team members in a single category.
Six Sigma project elements have the same names as traditional project elements. Here are some expert tips for writing the various project charter elements.
Six Sigma Business Case
The Six Sigma business case explains the problem that the project will solve. The business case is an argument to convince the company that the project should be undertaken. The case should include how the project will impact the organization, and what would happen if it isn’t selected.
Business Case is an unquantified statement that outlines the Six Sigma team’s goals and objectives. The business case explains the necessity of the project and the cost to the company if it is not undertaken. The business case should be brief (usually two sentences) and clearly articulate the project’s vision.
Eckes believes that a business plan should address the following questions.
- What is the impact of this project on the strategic goals and objectives of the company?
- Why should this project be undertaken now?
- What will be the consequences if you don’t start this project?
Six Sigma Problem Statement
The Six Sigma problem statement identifies the main problem that the project is intended to solve. The statement quantifies a process problem. The statement is called an opportunity statement if it identifies an improvement opportunity rather than an existing problem.
Eckes encourages team members to write the problem statement even if some details are missing. He says it’s fine for the problem statement to be blank, as the team might not have all the information at the start of the project. Here is an example of a client’s problem statement: Since______ Gamma Alpha spent __________ on loan applications, with an In a set of measurements, accuracy is closeness of... Learn More... rate of ________. This resulted in an _______increase of labor costs, ________negative attainment of growth goals and ________ operation margin .”
He discourages teams to try and identify the cause of the issue within the problem statement. He says that one of the biggest mistakes project teams make when creating a problem statement is to not state the issue in neutral terms. They will include their own experience as to what the cause is or how they perceive the solution. When you see the phrase because to the team, they have jumped straight to the root cause.”
Six Sigma Scope Statement
The scope statement outlines the project boundaries of the Six Sigma team. It explains what’s in and out scope. A scope statement that is effective will be specific about the work the team will or will not perform for the project.
Poorly constructed scoping statements can lead to Project Scope creep (sometimes known as “requirement creep... Learn More.... According to Eckes, this is the second-most common cause of project failure, behind poor team dynamics. Use a template to create a scope statement. Include deliverables and define what’s within and outside of the project team boundaries.
Six Sigma Goal Statement
Six Sigma goals are a way to define the target of the project and what will happen once the team has solved the problem. This section of the project charter must include quantifiable and measurable information. Write the goal using a tool such as SMART Goals to write the goal.
Ensuring that each element in the charter has a clear link to the previous elements is very important. The goal statement must refer to the problem and business case. Eckes says that in the business case, we stated a problem regarding loan decision accuracy as well as loan decision time. Our goal statement must reflect an improvement in accuracy and time.
Six Sigma Timeline Milestones
Six Sigma timelines outline the project schedule and identify all team members. Divide the timeline by phases and milestones. You can then track your progress.
Estimate the timeline using the DMAIC framework. Include a high-level overview of relevant resources and the people who are influencing the work for each phase. Determine the major milestones at each phase and within it.
Set a realistic timeline and team expectations if you are the project leader. Eckes reminds the leaders that their team isn’t just working on a new project, but also learning new techniques and tools. Allow them enough time to finish the project. The project team members will continue to have their day jobs and are now responsible for two things. If they have project management knowledge or experience, then they can expect to spend between 20 and 30 percent of their working time on the project.
Six Sigma Team Members
Six Sigma teams are made up of all the people involved in the project. Document the contact information, role, and responsibility of each team member. Green Belts and Black Belts are among the team members.
Do you have any tips for creating a Six Sigma Project Charter?
Leave them in the comments below!