- What a Six Sigma project charter is
- Visual map of the project charter
- The charter fields
- Problem statement and goal: how to write them
- Worked example: panel paint line
- Scope, team and timeline of the example
- How to build the charter in 5 steps
- Charter, A3 and 8D: when to use each
- Common mistakes
- Frequently asked questions
What a Six Sigma project charter is
A Six Sigma project charter is the one-page document that authorizes a project and fixes the problem statement, goal, scope, team and expected benefit. It is the main deliverable of the Define phase of DMAIC and works as the agreement between the team and the sponsor.
Without a charter, the problem stays vague, the scope grows with every meeting and nobody knows when the project is done. With one, anyone can read a single page and see what will be done, by whom, by when and what it is worth.
Visual map of the project charter
The map summarizes the charter fields, the paint line example and the five phases of the timeline.
The charter fields
| Field | What it records | Quality test |
|---|---|---|
| Title | Process and affected metric | Fits on one line, no solution built in |
| Problem statement | What is wrong, where, since when, how much | Has a number and a period, no cause or solution |
| Goal | Target value of the same metric and a deadline | Is SMART and uses the same unit as the baseline |
| Scope | What is in and what is out | Explicit list of exclusions |
| Team | Sponsor, leader, members, process owner | Each name has agreed hours per week |
| Expected benefit | Financial value and other benefits | Validated by finance |
| Timeline | Milestones by DMAIC phase | Review dates for each phase |
| Risks and constraints | What may delay or block the work | Each risk has an owner |
If the process is still unclear, build a high-level SIPOC first. It helps draw the scope and identify the customers and suppliers of the process.
Problem statement and goal: how to write them
The problem statement describes the measured symptom, not the cause. Use the pattern: what, where, when, how much, impact.
- Weak: "Painting has too much rework because training is lacking." (It names a cause and has no number.)
- Strong: "Over the last 12 months, 4.8% of painted panels on Line 2 left with a finish defect (11,520 of 240,000), costing $207,360 in rework and scrap."
The goal follows the SMART criteria: specific, measurable, achievable, relevant and time-bound. It repeats the metric from the problem with a target value and a date. Avoid goals such as "improve quality"; write "reduce from 4.8% to 2.4% in 24 weeks".
Worked example: panel paint line
Fictional example, only to illustrate the math. Line 2 paints 240,000 panels a year. The average cost of each defective panel (rework plus scrap) is $18.
| Item | Calculation | Result |
|---|---|---|
| Baseline | 11,520 ÷ 240,000 | 4.8% |
| Current cost | 11,520 × $18 | $207,360/year |
| Goal | 4.8% ÷ 2 | 2.4% |
| Defects at goal | 240,000 × 2.4% | 5,760 |
| Cost at goal | 5,760 × $18 | $103,680/year |
| Expected benefit | 207,360 − 103,680 | $103,680/year |
| Estimated investment | team hours and adjustments | $30,000 |
| Payback | 30,000 ÷ (103,680 ÷ 12) | 3.5 months |
Payback (months) = investment ÷ monthly benefit = 30,000 ÷ 8,640 ≈ 3.5
This benefit only counts once the goal is reached and sustained. To compare against other projects in the portfolio, use NPV, IRR and payback.
Scope, team and timeline of the example
- In scope: paint booth, part preparation and final inspection on Line 2.
- Out of scope: Lines 1 and 3, the supplier's chemical pretreatment and any paint change.
- Sponsor: production manager. Leader: quality Green Belt. Members: process engineer, maintenance, booth operator and purchasing.
| DMAIC phase | Duration | Main deliverable |
|---|---|---|
| Define | 2 weeks | Approved charter and SIPOC |
| Measure | 4 weeks | Validated measurement system and baseline |
| Analyze | 5 weeks | Root causes confirmed with data |
| Improve | 8 weeks | Solutions tested in a pilot |
| Control | 5 weeks | Control plan and handover to the owner |
Total: 2 + 4 + 5 + 8 + 5 = 24 weeks, about 6 months. In Measure, validate the gauge with MSA and Gauge R&R before trusting the 4.8% baseline. For the detailed schedule, use a Gantt chart.
How to build the charter in 5 steps
- Collect problem data with at least 6 to 12 months of history and the unit of measure.
- Draft the problem and goal and test them with the rule: a number, a period and no cause.
- Define the scope with a list of what stays out. If it gets too big, split it into two projects.
- Validate the benefit with finance and record the assumptions, such as cost per defect and annual volume.
- Bring sponsor and team together, review and sign. The charter can be revised later, but only with new approval.
To choose which problem becomes a project, prioritize with Pareto or a GUT matrix. For the task-level action plan, 5W2H works well.
Charter, A3 and 8D: when to use each
| Document | Use | Typical duration |
|---|---|---|
| Project charter | Authorize a structured (DMAIC) project | Months |
| A3 report | Solve a problem with one owner and one sheet | Weeks |
| 8D report | Answer a customer complaint | Days to weeks |
To see where the charter sits among the methodologies, read Lean vs Six Sigma. For the training path to lead this kind of project, see Green Belt.
Common mistakes
- Solution in the problem: "lack of training" already decides the action before any analysis.
- Goal without a baseline: with no measured current value, you cannot prove the result.
- Open scope: "improve all painting" never ends.
- Inflated benefit: without finance validation, the project loses credibility.
- Figurehead sponsor: with nobody to remove obstacles, the project stalls in Analyze.
- Charter in a drawer: skipping reviews at phase gates lets the project drift from what was agreed.
Frequently asked questions
What is a project charter in Six Sigma?
It is the one-page document that authorizes the project and records the problem, goal, scope, team, benefit and timeline.
Which fields should a charter have?
Title, problem statement, SMART goal, scope, team and roles, expected benefit, timeline by phase and risks.
Who writes and who approves the charter?
The project leader (Green or Black Belt) writes it with the process owner. The sponsor approves and signs.
Can the charter change after approval?
Yes, but only through a documented revision approved by the sponsor. Changing scope without a record is a common mistake.
What is the difference between a charter and a scope statement?
Scope is one field of the charter. The charter also holds the problem, goal, team, benefit and deadline.
How do I calculate the project payback?
Divide the investment by the monthly benefit. In the example, $30,000 ÷ $8,640 per month gives about 3.5 months.
Sources
- PYZDEK, T.; KELLER, P. The Six Sigma Handbook. New York: McGraw-Hill.
- GEORGE, M. L.; ROWLANDS, D.; PRICE, M.; MAXEY, J. The Lean Six Sigma Pocket Toolbook. New York: McGraw-Hill, 2005.
- PANDE, P. S.; NEUMAN, R. P.; CAVANAGH, R. R. The Six Sigma Way. New York: McGraw-Hill, 2000.
- Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK Guide).
Keep studying: trusted sources and links
- Lean Enterprise Institute: Lean Lexicon, Six Sigma
- ASQ: Six Sigma
- Wikipedia: Six Sigma
- Wikipedia: Project management
Save this address: Manufatura Enxuta is your school for lean manufacturing. Come back whenever you need to study, with a complete article, a visual map and trusted sources. Follow one of the learning paths or check the A–Z glossary.
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About the author
Lean Manufacturing & Behavioral Management Specialist
Over 20 years in the automotive and metalworking industries (GM and Dana), Lean Manufacturing practitioner since 2006. SENAI instructor and mentor in Brazil’s Brasil Mais Produtivo program, delivering consulting, training and audits for 50+ companies, combining quality, productivity and people development.
