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Creating a Project Charter

What is a Project Charter?

The Project Charter is a formal document that outlines the scope, objectives, and participants in a project. It serves as a blueprint for the project, providing a clear direction and boundaries. It's essential in Six Sigma projects because it:

  • Clearly defines the problem and the goals.

  • Sets the scope of the project, helping to manage expectations and resources.

  • Identifies key stakeholders and defines roles and responsibilities.

  • Serves as a reference document throughout the project lifecycle. 

Components of a Project Charter in Six Sigma

A comprehensive Project Charter typically includes the following elements:

  1. Project Title and Description: A concise title and a brief description of the project.

  2. Business Case: This section justifies the need for the project. It explains why the project is important and how it aligns with the organization's strategic goals.

  3. Problem Statement: Clearly articulates the problem the project intends to solve. It should be specific, measurable, and time-bound.

  4. Goal Statement: Outlines what the project aims to achieve, often expressed in quantifiable terms.

  5. Scope: Defines the boundaries of the project - what's included and what's not.

  6. Timeline: Provides an estimated duration of the project with major milestones.

  7. Resources: Details the human, technological, and financial resources required.

  8. Roles and Responsibilities: Identifies the project team, sponsors, and other stakeholders, outlining their roles and responsibilities.

  9. Risks and Assumptions: Highlights potential risks and assumptions made in the project planning. 

Creating a Project Charter: A Step-by-Step Guide

  1. Initial Discussions: Begin by discussing with key stakeholders and sponsors to understand the problem and the project's necessity.

  2. Draft the Problem and Goal Statements: Use the information gathered to draft clear and concise problem and goal statements.

  3. Define Scope and Constraints: Clearly delineate what is within the project’s purview and what is outside its scope. Also, identify any constraints such as budget, time, or resources.

  4. Develop a Preliminary Plan: Outline a basic plan including major milestones and timelines.

  5. Assign Roles and Responsibilities: Identify the project team and define each member's role and responsibilities.

  6. Identify Resources: List the resources needed, including personnel, technology, and budget.

  7. Analyze Risks and Assumptions: Identify potential risks and document assumptions.

  8. Review and Finalize: Review the charter with key stakeholders and sponsors, incorporate feedback, and finalize the document.

  9. Distribute the Charter: Share the finalized charter with all stakeholders and team members. 

Conclusion

The Project Charter is not just a formality but a foundational tool in Six Sigma projects. It ensures everyone involved has a clear understanding of the project's goals, scope, and their roles within it. The creation of a well-thought-out Project Charter sets the stage for a successful project by aligning the team's efforts with the organization's strategic objectives. Remember, a Six Sigma project is only as strong as its definition and the clarity of its goals – and this begins with a robust Project Charter.​

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LSS_BoK_1.2 - The Fundamentals of Six Sigma

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