Lean Six Sigma is all about solving business problems in a structured, data-driven way. At its core is the DMAIC framework (Define, Measure, Analyze, Improve, Control)—a step-by-step approach that helps organizations reduce waste, improve efficiency, and boost quality.
Each phase of DMAIC comes with its own set of tools, known as the Lean Toolbox. In this series, I’ll break down these tools one by one, showing you how to use them in real projects. Today, I’m starting with the Project Charter—the foundation of any Lean Six Sigma initiative.
DMAIC at a Glance
Before diving into the Project Charter, let’s quickly break down DMAIC and where this tool fits in:
1. Define: Identify the problem and set clear goals (Project Charter, SIPOC, Voice of the Customer).
2. Measure: Collect data to understand the current situation (Process Mapping, Value Stream Mapping, Control Charts).
3. Analyze: Pinpoint the root causes of inefficiencies (Fishbone Diagram, 5 Whys, Hypothesis Testing).
4. Improve: Implement and test solutions (Kaizen Events, Poka-Yoke, Design of Experiments).
5. Control: Make sure improvements stick over time (Control Plans, Standard Operating Procedures, Statistical Process Control).
Now, let’s talk about the Project Charter, the first and most crucial tool in the Define phase.
What is a Project Charter and Why Does It Matter?
I like to think of a Project Charter as a roadmap for your Lean Six Sigma project. It answers key questions like:
• What problem are we solving? (Do not assume solution at this stage here)
• Why does it matter?
• What’s the goal?
• Who’s involved?
• What’s the timeline?
Without a clear Project Charter, teams often run into issues like unclear exp
ectations, shifting priorities, and lack of leadership support. A good charter sets the project up for success by aligning everyone on the problem, scope, and expected results.
Key Elements of a Project Charter
A solid Project Charter includes:
1. Project Name
A simple, clear name that describes the project.
✅ Example: Reducing Customer Order Processing Time
2. Business Case (Why This Matters)
Explains why the project is important and how it impacts the business.
✅ Example: Customers are complaining about slow order pro
cessing. Our average fulfillment time is 3.5 days, but competitors process orders in 2 days. Improving this will increase customer satisfaction and reduce costs.
3. Problem Statement (What’s Wrong?)
A data-driven explanation of the issue.
✅ Example: Currently, the average order processing time is 3.5 days, with a defect rate of 12%. The goal is to bring processing time down to 2 days and reduce defects to below 5%.
4. Goal Statement (What Success Looks Like)
A clear, measurable target.
✅ Example: Reduce average order processing time from 3.5 to 2 days and cut defect rates from 12% to below 5% within 6 months.
5. Scope (What’s Included and What’s Not)
Defines what parts of the process are being improved.
✅ In Scope: Warehouse picking, packing, and shipping.
❌ Out of Scope: Supplier lead times and customer returns.
6. Team Members and Roles
Lists the key people involved in the project.
✅ Example:
• Sponsor: Operations Director
• Project Lead: Lean Six Sigma Black Belt
• Team Members: Warehouse Supervisors, Process Engineers, IT Analysts
7. Timeline & Milestones
Outlines the project phases and expected completion dates.
✅ Example:
• Define Phase: Weeks 1–2
• Measure Phase: Weeks 3–6
• Analyze Phase: Weeks 7–10
• Improve Phase: Weeks 11–14
• Control Phase: Weeks 15–16
8. Key Metrics (How Success is Measured)
Lists the specific numbers that will show if the project is working.
✅ Example:
• Order processing time (days)
• Defect rate (%)
• Customer complaints related to delays
How I Use the Project Charter in a Real Project
Let’s say I’m working at a warehouse and notice that customer orders are often delayed. I bring this issue up in a meeting, and leadership asks me to investigate.
Step 1: Draft the Project Charter
I start by writing a simple Project Charter, outlining the problem, the impact on the business, and the goal (reducing order processing time).
Step 2: Get Leadership Buy-In
I present the charter to the sponsor (Operations Director). They approve it and assign a Lean Six Sigma Black Belt to lead the project.
Step 3: Kick Off the Project
With the charter in place, the team knows who’s responsible for what, what success looks like, and how progress will be measured. The project officially starts!
Final Thoughts
The Project Charter is the blueprint for a successful Lean Six Sigma project. It keeps everyone aligned, prevents wasted effort, and sets clear expectations. Without it, projects can drift off track or fail to deliver results.
Next Up: SIPOC – Mapping Your Process Before You Improve It
Now that I’ve covered the Project Charter, the next step is understanding your process at a high level. In the next article, I’ll look at SIPOC (Suppliers, Inputs, Process, Outputs, Customers)—a simple but powerful tool for mapping out how work flows before making improvements.
