A Project Charter is a foundational document in the Define Phase of Lean Six Sigma that serves as the official authorization and roadmap for a process improvement project. It establishes the framework for the entire initiative and ensures all stakeholders share a common understanding of what needs …A Project Charter is a foundational document in the Define Phase of Lean Six Sigma that serves as the official authorization and roadmap for a process improvement project. It establishes the framework for the entire initiative and ensures all stakeholders share a common understanding of what needs to be accomplished.
The Project Charter typically contains several essential components. First, it includes a clear Problem Statement that describes the issue being addressed, quantifying the impact on the business in terms of cost, quality, or customer satisfaction. Second, it defines the Project Scope, establishing boundaries that specify what processes, departments, or areas will be included or excluded from the analysis.
The charter also outlines specific Goals and Objectives, often structured using SMART criteria (Specific, Measurable, Achievable, Relevant, and Time-bound). These targets provide measurable benchmarks against which success will be evaluated upon project completion.
A Business Case section explains why the project matters to the organization, highlighting potential financial benefits, operational improvements, or strategic alignment. This justification helps secure executive sponsorship and resource allocation.
The document identifies key Team Members and their roles, including the Project Sponsor, Team Leader, and subject matter experts who will contribute to the initiative. It also establishes a preliminary Timeline with major milestones and expected completion dates.
Additional elements may include preliminary data on current performance levels, potential risks, and resource requirements. Some charters incorporate a high-level process map called SIPOC (Suppliers, Inputs, Process, Outputs, Customers) to provide context.
The Project Charter functions as a contract between the improvement team and organizational leadership, ensuring accountability and commitment. It helps prevent scope creep by maintaining focus on agreed-upon objectives. Regular reference to the charter throughout the DMAIC methodology keeps the team aligned with original intentions while allowing for documented modifications when circumstances warrant changes.
Project Charter - Define Phase Guide
What is a Project Charter?
A Project Charter is a formal document that authorizes a Six Sigma project and provides the project team with the authority to apply organizational resources to project activities. It serves as a foundational agreement between the project sponsor, team leader, and team members, outlining the scope, objectives, and participants of the improvement initiative.
Why is the Project Charter Important?
The Project Charter is critical for several reasons:
• Authorization: It formally sanctions the project and commits organizational resources • Alignment: Ensures all stakeholders share a common understanding of project goals • Scope Control: Establishes boundaries to prevent scope creep • Communication: Acts as a reference document throughout the project lifecycle • Accountability: Clearly defines roles, responsibilities, and expectations
Key Components of a Project Charter
A comprehensive Project Charter typically includes:
1. Problem Statement: A clear, concise description of the issue being addressed, including what, where, when, and the magnitude of the problem
3. Business Case: Justification for the project, including financial impact and strategic alignment
4. Project Scope: Defines what is included and excluded from the project boundaries
5. Team Members and Roles: Lists the Champion, Project Leader, and team members with their responsibilities
6. Timeline and Milestones: Expected completion dates for each DMAIC phase
7. Resources Required: Budget, equipment, and support needed
How the Project Charter Works
The Project Charter functions as a living document that:
• Gets developed during the Define phase with input from the sponsor and team • Requires formal sign-off from the project sponsor • May be revised as the project progresses and new information emerges • Serves as a contract between leadership and the project team • Provides a baseline for measuring project success
Exam Tips: Answering Questions on Project Charter
Focus Areas for Exam Success:
• Know the Components: Be able to identify all elements of a Project Charter and understand what information belongs in each section
• Problem Statement vs. Goal Statement: Understand the distinction - problem statements describe the current state issue, while goal statements describe the desired future state
• SMART Goals: Questions often test whether a goal statement meets SMART criteria. Practice evaluating goal statements for specificity and measurability
• Scope Boundaries: Recognize that defining what is OUT of scope is as important as defining what is IN scope
• Stakeholder Roles: Know the difference between Champion, Process Owner, Green Belt, and team member responsibilities
• Timing: Remember the Project Charter is created during the Define phase and may be refined throughout the project
Common Question Types:
• Scenario-based questions asking which charter element addresses a specific situation • Questions about who approves or signs off on the charter • Identifying poorly written problem or goal statements • Determining appropriate project scope based on given constraints
Key Points to Remember:
• The Project Charter provides authorization, not detailed implementation plans • A well-written charter prevents misunderstandings and keeps the team focused • The sponsor (Champion) must approve the charter before project work begins • Changes to the charter require sponsor approval