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Modul 2.2: Project Charter
1. Lean Six Sigma White Belt Training
Modul 2.2: Project Charter
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2. Lean Six Sigma White Belt Training — 2.2 Project Charter
Project Charter
• One page assignment spec. of the change initiative
• Provides relevant and clear answers
• Why is this needed?
• What is the background?
• What is the expected outcome and by when?
• What are the benefits?
• Communication & Commitment
• A living document, updated on changes in scope
3. Lean Six Sigma White Belt Training — 2.2 Project Charter
Elements of a project charter
• Problem / opportunity statement
• Baseline analysis
• Business case
• Goal statement
• Stakeholder analysis
• Risk management planning
4. Lean Six Sigma White Belt Training — 2.2 Project Charter
Problem / opportunity statement
First step: define a clear, easily understood & consistent answer to the following
question:
This statement is a short communicated slogan describing why this change is needed.
It should be written so all employees understand the need of change and how it is
connected to the company strategy.
Why is the improvement/change needed?
5. Lean Six Sigma White Belt Training — 2.2 Project Charter
Problem / opportunity statement — some advice
• Describe the problem / opportunity statement clearly from a customer, owner
and employee perspective. Define it in terms of performance and results. How is
the problem visible?
• Describe the consequences for the business, if the change doesn‘t happen.
• State the problem based on the long term baseline (measured or estimated)
• A good problem statement is commonly understood.
Use language and terminology everybody can relate to.
• Avoid talking about causes of the problem!
6. Lean Six Sigma White Belt Training — 2.2 Project Charter
Our project delivery precision is poor.
This is a big problem for us and needs to improve quickly.
———————
Our project delivery precision for product portfolio XYZ has been poor for 2019
& 2020. We will loose customer contracts as we can not fulfill customer needs
for new functionality.
The general customer expectation is of 98 % delivery precision. Our baseline in
2019 was 80 %, yet no further improvement.
7. Lean Six Sigma White Belt Training — 2.2 Project Charter
“A problem well-stated
is a problem half-solved.“
Charles F. Kettering
8. Lean Six Sigma White Belt Training — 2.2 Project Charter
Baseline analysis
Purpose: provide clear understanding:
We need to find out present (not only estimated) –
• procedures & ways of working.
• performance and difference to the required performance.
• challenges to the change initiative.
Baseline analysis can be done in many ways, eg. process mapping, surveys,
measurement analysis, etc.
Where are we today?
9. Lean Six Sigma White Belt Training — 2.2 Project Charter
Business Case
• B/C includes cost (project, investment, implementation) and savings (hard & soft).
• B/C gives authority to drive the mission and prioritizes re. other
programs/projects that may conflict.
• Mechanism to judge solutions from a financial perspective
• B/C summarizes & quantifies company benefits.
Money is a common language.
What is the financial benefit of this improvement?
10. Lean Six Sigma White Belt Training — 2.2 Project Charter
Business Case Calculations
Savings
Cost
• Project man hours
• Training hours
• Implementation time & investment (equipment, tools, etc.)
• Maintenance cost
• etc.
Hard
• Defects
• Overtime
• Avoidance cost
• Excess inventory
Intermediate
• Missed orders
• Potential capacity
• Employee turn-over
• Marketshare
• etc.
Soft
• Unused capacity
• Customer happiness
• Employee motivation
• Lost goodwill
• etc.
11. Lean Six Sigma White Belt Training — 2.2 Project Charter
Goal Statement
• The goal statement is the logical connection between the problem/opportunity statement, baseline
analysis and business case.
• The goal statement is a commitment between the project leader (black/green belt) and the sponsor of
what results have to be seen.
• The goal statement is the measurable definition of how much of the problem/opportunity statement
must be fulfilled in this change initiative.
• It provides exit criteria to be able to understand when the project can be closed
• Avoid defining solutions in the goal statement!
What performance results have to be achieved by when?
12. Lean Six Sigma White Belt Training — 2.2 Project Charter
Goal Statement — SMART assessment
Ensure the goal statement is set up SMART to be able to judge when the project with its goals are
fulfilled.
Specific — Specifiy what products / processes / services / activities.
Measurable — What measures will show that the goal is achieved?
Achievable — How tough must we set the goal to be challenged to achieve?
Relevant — Do we know that this goal area is what we should put effort into?
Time bound — Not only a time when to fulfill the goal but also milestones on that way, i.e. DMAIC phases,
especially measurement & analysis.
If one or more of the assessment criteria is not fulfilled the improvement
initiative is not ready for launch!
13. Lean Six Sigma White Belt Training — 2.2 Project Charter
Stakeholder Analysis
Purpose: engage key people
• Identify key people who will ultimately support & champion the project through to completion.
• Find operational responsible people to align & commit the change.
• Make sure that improvements are properly implemented in line functions.
• Identify those who are capable of hindering or even “wrecking“ the project
• Enabling to develop proactive engagement plans.
• Find suitable team members & functions / departments.
• Avoid getting “wrong“ team members with too low authority.
Who will affect or will be affected by this change?
14. Lean Six Sigma White Belt Training — 1.4 Process, Project, Results
15. Lean Six Sigma White Belt Training — 2.2 Project Charter
Stakeholder Analysis – how to do it
1. Brainstrom stakeholders
• Who will be affected or
has to know of the project
2. Categorize stakeholders
• Re. interest and authority /
influence
3. Communication plan
• Specifically for group A-D
• What media (meeting,
mail, phone, …)
• When (weekly, monthly,
occasionally, …)
B: Keep informed
(consistent & regular)
Team members
Line operators
highlow
highlow
D: Key players
(engage & delight
to get support
dealing with group C)
Sponsor
A: Minimal effort
Line operators
C: Keep satisfied
(reduce / control
“wrecking“ potential)
Line managers
Interest
Influence
16. Lean Six Sigma White Belt Training — 2.2 Project Charter
Risk Management Planning
Purpose: identify potential threats for project success
• Done to deploy a shared awareness of possible risks.
• To avoid pitfalls during project accomplishments.
• An early consideration of potential risks in the process with the change, to avoid situations where the
solution of one problem initiate new ones.
• Done in cross-functional groups, incl. project sponsor, project leader and team.
• Risk eliminating measures must be time-bound and addressed to responsibles persons.
What can go wrong and hinder success?
17. Lean Six Sigma White Belt Training — 2.2 Project Charter
Risk Management Planning– how to do it
1. Brainstrom potential risks
• What could go wrong?
2. Evaluate them
• What would be the impact?
3. Identify measures
• How can we detect them?
• How can we avoid them?
• How can we reduce the
implications?
4. Address responsible persons
More sophisticated FMEA
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highlow
Impact
Probability