Why A Robust Project Charter is a Key to Any Successful Continuous Improvement Initiative

CONTINOUS IMPROVEMENT WITH TONY NEWSLETTER

September 5, 2024

Anthony Tarantino, PhD

Successful Lean, Six Sigma, and Continuous Improvement initiatives have in common a good project charter that is treated as a living document, i.e., it is updated as the project progresses. Maintaining a project charter and publishing it on a regular basis is an ideal way to keep all interested parties aware of a project’s status. This may seem obvious, but I have seen many projects fail because key stakeholders could never agree on the problem, the goal, and the timing.

By their very nature, Six Sigma projects are difficult in that a solution is not known, requiring data analysis using the scientific method to devise a solution. The process will typically take a minimum of a few months for even a green-belt-level project to several months for black-belt level projects. It will also require the concerted efforts of a cross-functional team. Without a robust project charter, it is nearly impossible to keep all project members and stakeholders up to date as to its status. Lean initiatives typically target more gradual and incremental improvement, but also benefit from thoughtful charters.

Some of the basic elements of a project charter that I found helpful over the years include:

Problem Statement

o?? Quantify the problem

o?? State how the problem hurts your organization

Goal Statement

o?? Quantify goals using estimated ranges so they are measurable

o?? Include a time frame to achieve your goals

o?? Assure goals are attainable

o?? Verify the importance of goals in meeting company objectives

Metrics – Determine how to measure success

Team Members – List project members, sponsors, and champions

Simple Project Schedule

Out of Scope vs In Scope

Assumptions/Dependencies

Of these charter elements, the most important are the problem and goal statement. It is important to state problems and goals in quantifiable terms. It is helpful to use ranges when describing goals rather than boxing yourself in the corner with a specific target quantity and date. It is also valuable to update the problem and goal statements as the project progresses. Very few successful projects end without some changes to their original problem and goal statements

Prediction

As generative AI accelerates the ability to achieve a virtual twin of physical operations, the foundation of Smart Manufacturing and Industry 4.0, the demand will grow for continuous improvement program and project managers. These managers will need to master the art of creating and updating project charters in order to be successful

Cheers, Tony

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Anthony Tarantino, PhD

Six Sigma Master Black Belt, CPM (ISM), CPIM (APICS)

Adjunct Professor, Santa Clara University – Smart Mfg. & Industry 4.0

Author of Wiley's Smart Manufacturing, the Lean Six Sigma Way Amazon Links

Senior Advisor to IM Republic, https://imrepublic.com

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