Project Charter

Project Charter – PurposeDefine the direction, scope, activities and

resources neededContract between project team and

organizational leadership toAlign expectationsSecure buy-in of the scope, goal, and resourcesAvoid scope creep

Project Charters will likely evolve

Project Charter - ElementsProblem StatementGoal/objective – usually stated in a

quantifiable measureScope/process in which the opportunity existsResults/metricsBenefits to customersSchedule of milestonesTeam members and roles

Defining the Problem Statement - ExerciseThe Elevator Problem – John Daly, University of Texas

The manager of a large office building has been receiving a growing number of complaints about the building’s elevator service, particularly during certain times of the day. Several of the long term tenants have threatened to move unless service is improved.In response, the manager recently inquired into the possibility of adding one or two elevators to the building. Although it would be feasible, the only elevator company has a six-month backlog on orders. As the assistant to the manager, you’re asked to come up with a plan to get a new elevator installed in the next three months. You must present the plan a the next staff meeting.

Defining the Problem Statement - ExerciseIn teams of two, you will be given a problem

statement.Come up with two possible solutions for the

problem statement you have been given.

Defining the Problem Statement - ExerciseDifferent problem statements drive different

solutionsChoose carefully!

Defining the Problem StatementWhat is or isn’t occurring?Where in the process did it occur?Who does the problem affect?When did it occur, and has it occurred

before?What is the magnitude of the problem?What are the key metrics?

Problem Statement TemplateDuring (period of time), the (process being reviewed) with (the area of the business) is not meeting the goal of (x). This poor performance is causing (resulting problems of issues) that are impacting (estimated impact).

State the Project GoalsAddress the issue in the problem statementQuantify the expected performance

improvementIdentify the expected timingDo not mention the cause or action that will

be taken

Goal Statement TemplateOur goal is to increase/decrease (specific metric) from (current baseline) to (future goal) by (target date). This will result in improved (quantify the specific safety, financial, productivity, and/or customer satisfaction levels).

Define the Project ScopeBe clear about the project’s boundaries

Where the project starts and ends

Define the Project ScopeDon’t boil the oceanConcentrate on 1-2 primary metricsConsider your span of influenceProjects with a time span of 90-120 days have

the highest likelihood of successDon’t impose predetermined solutionsIdentify observable results. Clearly show

how the team will know when the objective has been accomplished

Scope Statement TemplateThe scope of this project will be the (specific process) and will start (beginning of the process) to (end of process). The scope will not include (define).

Schedule of MilestonesDependent upon the improvement

methodology usedSix Sigma – DMAIC – Define, Measure,

Analyze, Improve, Control Characteristics: Data intensive, project duration is

generally longer, solutions are meant to be final, likely lead to research projects

Lean – A3 Problem Solving Characteristics: Time-based analysis, shorter

project duration, solutions are meant to be iterative, may be more difficult to lead to research projects

DMAIC MilestonesStage Start Date End Date

Define

Measure

Analyze

Improve

Control

A3 MilestonesStage Start Date End Date

Background

Current Condition

Goal/Target Condition

Root Cause Analysis

Countermeasures (Experiments)

Confirmation (Results)

Follow-up (Actions)

Team Members and RolesWho has stake in the project? Are the right

people being included, informed, consulted, etc?

List names and roles of each person.

Typical Project RolesProject Sponsor: Internal/external project advocate,

obtains budgets/resources for project, accepts responsibility for problems escalated from project leader, and approves charter.

Process Owner: Responsible for sustainment activities once project is considered closed

Project Leader: Responsible for planning, executing, and closing the project

Consultant: Coaches team members on process improvement

Team Members: Provides input and responsible for completing action items as assigned.

References:Sherman, Peter J. “Pick Your Spots: Driving a

Successful Process Improvement Program.” Quality Press September 2012: 36-42.

Munro, Roderick A., et al, The Certified Six Sigma Green Belt Handbook. New Delhi, India: ASQ, 2008. Print.