The Six Sigma project charter document, which is the most important document in the Define phase (Six Sigma DMAIC structure), is the Six Sigma project charter document. According to the Lean Six Sigma Green Belt course DMAIC stands as Define, Measure Analyze and Improve, Control. You can also learn about the DMADV structure (Define Measure, Analyze Design, Verify), which you can find out about in free online Six Sigma courses.
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A project charter document is created during the Six Sigma Define phase. This document is the compass that the Six Sigma project team uses to guide their Six Sigma project. It also helps them stay on track. There are many elements to the document. There are four additional elements to the document, in addition to the main elements (business plan, problem statement and goals, goal statement, team structure, project scope, plan, and project plan),
The project charter document contains four interesting elements
Here are the four elements of a project charter.
Project Constraints & Assumptions is the first element.
Constraints are usually a restriction on the resources that can be allocated to a project. Common constraints include the time team members will dedicate to the project. Examples of constraints that could be included in the document include:
Project completion or finishing required
Stakeholders may make different assumptions about the nature of assumptions. These assumptions could include the frequency that the Champion will meet with the team leader and team, the support he or she will provide the team when they run into roadblocks, as well as the freedom that the team has to implement solutions, without the Champion’s approval. These assumptions are a list of the Champion’s expectations as a customer of the team.
Approval of project charter document
The second part of the project charter document is about approvals or signing-off to the charter. The champions and sponsors must sign off the project charter before the project team can proceed. The purpose of the project charter document, let’s not forget, is to clearly define what the Project Team will deliver and what resources will be required. It also explains why the charter document is justified. The project charter document is also a commitment to devote the required time and resources to the project. To ensure their approval, the project charter document must be shared with all stakeholders.
Cost/Benefit Analysis is the third element in the project charter document. Let’s first look at cost/benefit analysis. It is a useful management tool that helps to determine if the Six Sigma project’s net cash benefits are equal to, or begin to exceed the net costs or outflows. This study determines whether the project is worth investing in and whether it is worthwhile. This should be done at the beginning of a project and during its planning phase. It should also be used throughout the Six Sigma project cycle (including the closing) to monitor financial performance, validate assumptions, and verify health.
The RACI matrix is the fourth and final element of the project charter document. R-A-C-I stands for Responsible Accountable, Consulted, Informed. The matrix, also known as the roles & responsibilities chart, is included in the project charter document. It is a simple matrix tool that identifies who must be involved in a task, activity, and/or who is responsible for producing a deliverable. It is important to note that the R-A-C-I matrix in a Six Sigma project is not limited to the DEFINE phase, but also all phases of the DMAIC framework.
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