Project Charter

Overview

The project charter is the founding document of a Six Sigma project. It describes briefly and traceably why the project is needed, what it should achieve, who is involved, and within which boundaries the work happens. It is the first tool of the Define phase and is used as a reference in tollgate reviews.

Problem statement: Briefly describes the current problem with facts: what is happening, where, when, how often, and with what impact? Deliberately without causes and without solutions — those come later in Analyze and Improve.

Goal definition: What should be achieved at the end? Goals are formulated as a numbered list with measurable values (baseline, target, and threshold — BTT). "Reduce scrap from 4.2 % to 1.5 % by Dec 31" is a good goal; "improve quality" is not.

Scope: What is part of the project and what is not? A clear boundary prevents scope creep — e.g. "Only production line 3, not final assembly".

Team and roles: Sponsor, project leader (Black/Green Belt), core team, stakeholders. Clearly documented roles avoid responsibility gaps later.

Schedule and milestones: Overview of the key dates, at minimum the DMAIC tollgates. A realistic plan is more important than an ambitious one.

Business case: Quantitative justification: which benefit is created (savings, revenue, quality, safety)? Which costs are involved? The sponsor should be able to derive the investment from it.

Approach

• Write the problem statement in 2–4 sentences — with facts, no speculation.
• Create goals as a numbered list, each with baseline (today), target (intended), and threshold (acceptable minimum).
• Clearly delimit scope and out-of-scope — what will NOT be addressed.
• Add team and roles, at minimum sponsor and project leader.
• Sketch a schedule with the five DMAIC tollgates.
• Add the business case — estimated savings and project cost.
• Align the charter with the sponsor and get sign-off — it is the basis for everything that follows.

Pitfalls

Solution in the problem statement: Sentences like "We need a new machine" are not problem statements — they jump to a solution. While writing, ask: does the sentence describe the symptom or the answer?

Immeasurable goals: "Increase efficiency", "motivate employees" are not goals. Every goal needs a number, a unit, and a date — otherwise it cannot be verified at the end of the project.

Scope too large: Six Sigma projects should typically finish in 3–6 months. Wanting to "optimize the entire plant process" leads to failure. Cut the project small and refine later.

No sponsor commitment: Without an active sponsor (resources, escalation path, political backing), projects stall at the latest in Improve. The sponsor entry in the charter is not symbolic — the sponsor must be informed and engaged.

Charter is never updated: During the project, goals, scope, and participants change. The charter should be a living document — record changes with a date instead of preserving an outdated state.

Business case oversold: Inflated savings promises come back to bite you in the Control tollgate. Estimate conservatively and surprise positively at the end.

Available in the following cycles

• DMAIC: Define
• DMADV: Define