In this guide, you will discover “What is a Project Charter” and why is important to use.
Are you ready?
Go!
What is a project charter?
When I was younger in Lean Manufacturing, I used to do the Project Charter 2 or 3 days before the Kaizen Event.
Wrong!
The project charter is one of the most important Lean Tool before starting a Kaizen Event.
It is a simple sheet of paper (I prefer A3) where the team clarify the ideas and align goals and objectives before starting the improvement.Ā
Later I will give you all the Project Charter Components to create your first one.
Basically, it is a document where you and the team has to write down
the information about the project you have to carry out.
You have to start to write the project charter at least 6 weeks
before starting a Lean Six Sigma project.
Attention now!
Do not write the project charter alone!You have to do in a team.
Let me tell you my personal experience…
I have never obtained a proper project charter the first time!
It is normal to have many versions with no clear goals and then to obtain a proper one.
So,
start as soon as you can and let you have a poor draft.
The key is to refine until someone that is external to the team can understand it!
May I ask you a question?
Can you build a house without a project?
Similarly, can you improve your industry without a project?
I do not think so.
So,
if you start from this concept, should be clear that there is no
sense to start a Lean Six Simga activity without the Project Charter.
In a second, I will tell you the essential information you
have to put into a Project Charter, and you can download a Project Charter Example Below.
I have found for you this interesting video with a Lesson about project charter:
See the video now:
After this great lesson …
… let us see the contents.
Project Charter Contents:
1) The Title
Very simply. What is the title of the project?
2) Business Case and Problem Statement
You have to explain why the business has to spend money on this project.
The best way to do it is a definite problem statement
3) Team Members
Who will work on this project?
Generally, as a minimum, you should have:
- Team Leader (Accountable to lead the project and reporting to the sponsor)
- Team Members (They have to do the work š
- Process Owner (He is the expert. Normally he know the process)
- SponsorĀ (Internal Customer and support)
4) Duration
Every project has to have a date of start and a date of finish
5) Critical to Quality (CTQ)
A good project has to have a measurable characteristic that is significant for the customer and the business.
In the Project Charter, this value has to be written “AS IS, ” and the target of the value has to be identified and reached at the end of the project.
6) Savings
We do a project to reduce wastes and produce savings.
The savings have to be projected.
7) Constraints
Write down any constraint the team see on its roadmap
8) Timeline
The improvement project has to be ideally divided into phases, and any phase has to have a
starting date and a duration.
The project charter is a “live document” that has to be printed
and visible in the “war room” where the project has to be led.
Project Charter Example
Let me write an example that will cover the project charter components described above.
Title
Set-Up reduction on #Molding 1
Business Case & Problem Statement
The company has to produce SKU #342345 with a rate of 2000 / day.
The SKU is produced on the #Molding 1, and the same machine other SKU’s are produced, too.
The Set-Up time to change from one SKU’s to another is 6 hours, and theĀ #Molding 1 is not able to meet the customer demand.
The current set-up time is 6 hours and the target to achieve is 2 hours.
With a set-up time of 2 hours, the capacity of theĀ #Molding 1 will be increased, and the company will be able to meet the customer demand.
Team Members
- John (Team Leader)
- Frank (Team Member)
- Paul (Team Member)
- Lisa (Process Owner)
- Carl (Sponsor)
Duration
From 3 November 2017 to 31 March 2018
Critical to Quality
The customer demand (2000 pcs/day) has to be reached to satisfy the customer demand.
The daily production now is 1700 pcs/day, and by improving the set-up from 6 hours to 2 hours, the goal can be reached.
Savings
By cutting 7 wastes from the set-up, the company will save 4 hours a day of work.
Also, the company will save 300$/day of penalties.
Constraints
The test can be done only in the presence of a supervisor.
2000$ can be spent on tooling.
Timeline
Define – 3 Nov 17 – 3 Dec 2017
Measure – 4 Dec 2017 – 31 Dec 2017
Analize – 7 Jan 2018 – 31 Jan 2018
Improve – 1 Feb 2018 – 7 Feb 2018 (KAIZEN EVENT)
Control – 8 Feb 2018 – 31 Mar 2018
Conclusion
In this guide, I explained to you what is a project charter, why to use it and what are the main project charter components.
My final recommendation is USE IT!
Start to use this tool 6-8 weeks before the KAIZEN EVENTĀ and follow the steps.
Using a project charter is a milestone for a successful improvement.
Bye!