Project Code

Version

Date

Project Title:

Problem Statement

Project Objective

Scope

Project Schedule
Define Phase

Improve Phase

Measure Phase

Control Phase

Analyze Phase

Case study Presentation

Resource Estimation

Expected Benefits
Value (in $)
(for CAT-1 Projects)

Savings Description

Team
Champion:

Lakshmi Narayanan

Leader:

Pradeep. Ch

Facilitator:

Usha

CFT Members:
Charter Prepared by:

Charter Approved by:

<sign with Date>

<sign with Date>

<sign with Date>

Leader

Champion

Strategic Support

GUIDELINES TO FILL THE PROJECT CHARTER

1.

Project Title

2.

The title by which the project will be identified. Try to emphasize the outcome, i.e.,
result (y) rather than the method (x).

Problem Statement

What is wrong or not meeting our customers need?

When and where do the problems occur?

Magnitude of the problem?

What is the impact of the problem?

Is the problem based on observation or assumption?

The problem statement should not prejudge a root cause?

Poor Example: Our customers are angry with us and we are getting penalty.
Good Example: In the past 6 months the First Time Quality in Group D of UHC account is very
poor. It is ranging between 90% and 93% against the customer requirement of 97%. This leads
to a rework of 30% that in-turn increases the rework cost. This also affects the overall TAT.

3.

Project Objective:

The object must be SMART: (Specific; Measurable; Achievable; Rewaradable; Time bound)

Must not prescribe solution or presume cause.

Definition of the improvement, which the team is seeking to accomplish.

Direction for progress measure (starts with a verb viz., Reduce/Eliminate/Improve etc)

Should include measurable target and completion date

Poor Example: To delight the customer by providing continuous quality.

Good Example: Improve First Time Quality in Grp-D of UHC from 90% to 97% by October 2004.

4.

Scope

What process will the team focus on?

What are the boundaries of the process (start point & stop point).

What is out of bounds for the team?

What constraints must the team work under?

What is the time commitment expected of team members?

What will happen to regular jobs while we are doing the project?

5.

Resource Estimate

Classification of Resources

Additional Requirement
What people /expense will be needed additionally? Please mention the est. $ value.
Subject Matter Expert(s) required for facilitation / reviews / consultation (could be
internal or external)

Internal resources
What people, capital / expense etc., will be needed which are already available in the
organization? In the case of human resources, the required hours need to be captured.

6.

Expected Benefits Benefits often related to Increasing Revenue/Decreasing cost/

Improving Quality & TAT / Improving morale etc.,

Classification of Benefits:

Direct benefits Will fetch direct dollar values

Conditional benefits Will be realized as and when the expected activity occurs.

Example: Building a ramp up model, developing a training model etc

Indirect benefits Benefits will be realized indirectly and at times these may be
difficult to express in terms of dollars.

7.

Example: Release of resources (DCC or DLC), Reduction of consumables etc.

Example: Security, Customer Satisfaction / Employee satisfaction etc.

Project Schedule

Start Date:

Date on which the ELT approve the project.

End Date:

Date on which the project planned to completed.

Indicative timelines for progression of seven steps. The total time duration needs to be
within 4 to 5 weeks.

8.

Team

Would include Sponsor, Team leader, Facilitator & Team Players

No team player can be part of more than 2 six-sigma projects at a given point of time.

9.

Approval

The charter needs to be formally signed and approved by Team Leader, Champion, and
Functional Head.