Creating a Project Charter in Six Sigma

What is a project charter? What role does the Six Sigma Champion play in ensuring alignment with organisational goals? How are project charters passed down to Black Belts and Green Belts for execution? What responsibilities do Black Belts and Green Belts have in project execution?

When the DMAIC method in Six Sigma is implemented, a project charter is created during the Define phase that aligns everyone to the plan. This living document formally introduces the broad scope of the project - from the beginning to the end. 

Knowing the components of a project charter is essential to effective project management, typically during the planning phase. It sets the boundaries, clarifies expected responsibilities, and assesses risks from a high-level view. 

What is a Project Charter?

A project charter is a crucial document that initiates a project, outlining in broad strokes of who is accountable for assigned tasks and the objectives to be achieved. Usually less than five to six pages, it is updated or revised as and when required. 

Project Charter Components in Six Sigma and Project Management

Whether you are using a project charter traditionally in the field of project management or Six Sigma, these are the main components that exist in both. 

Problem Statement/Objective 

Both traditional project charters and Six Sigma project charters start by clearly defining the problem statement or objective that the project aims to address. This sets the direction and purpose of the project. This statement helps all stakeholders understand the primary focus.

Scope

Identifying the boundaries and scope of the project is crucial in both traditional and Six Sigma project charters. It outlines what is included and excluded from the project. This section is necessary as it helps manage expectations and avoid scope creep.

Project Team

Both types of project charters specify the project team members and their roles and responsibilities. This ensures clarity on who is involved in the project and what their contributions are expected to be.

Timeline and Milestones 

Establishing a timeline with key milestones is essential in both traditional and Six Sigma project charters. This provides a roadmap for project execution and helps track progress towards achieving project objectives.

Resources and Budget 

Identifying the resources required and estimating the budget for the project is a common element in both types of charters. This ensures that the necessary resources are allocated and managed effectively to support project activities.

Stakeholders 

Recognising and engaging stakeholders is a critical aspect of project management, shared between traditional and Six Sigma project charters. Identifying stakeholders and understanding their interests and expectations helps in managing communication and ensuring stakeholder buy-in.

Success Criteria 

Defining success criteria is essential in both types of project charters to evaluate the project's outcomes. Whether it's achieving specific quality improvements in Six Sigma projects or delivering project objectives within budget and schedule in traditional projects, success criteria provide a benchmark for project success.

Six Sigma Project Charter Template

This is a basic project charter template used in Six Sigma. 

Section	Description
Project Title	[Clearly state the title of the project]
Goal Statement	[Describe the specific problem or opportunity for improvement]
Business Case	[Provide a rationale for why the project is important to the organisation]
Project Objectives	[Clearly outline the goals and objectives of the project]
Scope	[Define the boundaries of the project, including what is included and excluded from scope]
Project Team	[Identify the key members of the project team]
Project Sponsor	[Specify the project sponsor who will provide support and guidance throughout the project]
High-Level Timeline	[Provide an overview of the project timeline, including key milestones and deadlines]
Resources and Budget	[Identify the resources required to complete the project]
Measurement Plan	[Outline the metrics and data collection methods that will be used to measure project performance]
Risks and Assumptions	[Identify potential risks and assumptions associated with the project]
Success Criteria	[Define the criteria by which the success of the project will be evaluated]
Approval	[Obtain signatures from key stakeholders to formally approve the project charter and authorise initiation]

Six Sigma Roles in a Project Charter

Once the project charter is drafted and approved, it is passed down to the Black Belts and Green Belts who will be leading or participating in the project. The Six Sigma Champion, who is typically a senior-level manager responsible for overseeing Six Sigma initiatives within the organisation, plays a crucial role in this process.

Here's how it typically works.

The Six Sigma Champion ensures alignment between the project charter and the organisation's strategic objectives. They provide support and guidance to the project leader in drafting the charter and ensure that the project aligns with the overall Six Sigma deployment strategy.

Once the project charter is approved, the Six Sigma Champion communicates the details of the project to the Black Belts and Green Belts assigned to the project. They ensure that the team understands the project objectives, scope, and expectations outlined in the charter.

Black Belts and Green Belts take ownership of executing the project according to the guidelines set forth in the project charter. They utilise their expertise in Six Sigma methodologies to lead the project team, collect and analyse data, identify root causes, implement process improvements, and monitor project progress.

Throughout the project lifecycle, Black Belts and Green Belts provide regular updates to the Six Sigma Champion and other stakeholders on project progress, challenges encountered, and outcomes achieved. 

The Six Sigma Champion may offer guidance or support as needed to ensure the project stays on track towards achieving its objectives.

Example of a Project Charter in Manufacturing

Here is a basic example of a manufacturing unit using a project charter. 

Section	Description
Project Title	Reduction of Defects in Injection Moulding Process
Goal Statement	The current injection moulding process for plastic components is resulting in a high number of defects, leading to increased rework and production delays.
Business Case	Improving the quality of injection-moulded components will reduce rework costs, improve customer satisfaction, and increase overall manufacturing efficiency.
Project Objectives	Reduce defects in injection-moulded components by 50% within six months.
Scope	Includes the entire injection moulding process from material preparation to final product inspection. Excludes packaging and shipping processes.
Project Team	Project Leader: John Smith; Team Members: Sarah Brown, James Patel, Emma Jones
Project Sponsor	David Thompson, Operations Manager
High-Level Timeline	Start Date: 1st March 20XX; End Date: 1st September 20XX
Resources and Budget	Budget allocated for additional quality control equipment and training. Human resources allocated for project team members.
Measurement Plan	Use statistical process control (SPC) charts to monitor defect rates. Collect data on defects before and after process improvements.
Risks and Assumptions	Risks: Resistance to change from production staff, potential equipment breakdowns. Assumptions: Availability of necessary resources and support.
Success Criteria	Achieve a defect rate of less than 2% after process improvements.
Black Belts and Green Belts	Black Belts: Experienced Six Sigma practitioners overseeing the project and providing guidance to the project team. Green Belts: Team members actively involved in project execution, responsible for data collection, analysis, and implementation of process improvements under the supervision of Black Belts.
Approval	[Signatures from key stakeholders confirming approval of the project charter.]

Following Project Charter in Six Sigma | Best Practices

1. The goal statement should clearly articulate the issue or opportunity for improvement that the project aims to address. Use quantifiable metrics to define the problem's scope and impact.
2. Define project objectives that are Specific, Measurable, Achievable, Relevant, and Time-bound (SMART). This helps in setting clear expectations and evaluating project success. 
3. Clearly outline the boundaries of the project scope, including what is included and excluded. This prevents scope creep and ensures focus on addressing the identified problem.
4. Engage key stakeholders, including project sponsors, process owners, and end-users, in defining the project charter. Their input ensures alignment with organisational goals and enhances buy-in.
5. Identify and assign roles and responsibilities to project team members, including Black Belts and Green Belts. Ensure that team members have the necessary skills and expertise to execute the project effectively.
6. Ensure that the project charter aligns with the Define, Measure, Analyse, Improve, Control (DMAIC) methodology of Six Sigma. Each element of the charter should support the specific phase of the DMAIC process.
7. Develop a realistic project timeline with achievable milestones. Consider factors such as resource availability and potential risks when setting deadlines.
8. Emphasise the goal of continuous improvement in the project charter. Encourage the project team to explore opportunities for further enhancements beyond the initial project scope.
9. Include a plan for collecting relevant data and measuring project performance. Define key metrics and establish data collection methods to track progress and evaluate project outcomes.
10. Schedule regular reviews of the project charter to assess progress and make necessary updates. Flexibility is essential to adapt to changing project requirements or unforeseen challenges.