One of the most powerful tools that can be used when applying Lean Six Sigma is a Project Charter. In this article, we explain what a Project Charter is, how to apply it in a lean way, and we help you get started with a Project Charter template and a Project Charter example. After reading this blog, you will be able to start your Lean Six Sigma project with a strong foundation.
What is a Project Charter in Lean Six Sigma?
Supporting Lean Six Sigma with a Project Charter looks like this: with a short but powerful project document, the rationale, problem, objectives, scope, and roles are defined. From this foundation, any Lean Six Sigma project can be approached effectively. You can see a Project Charter as a project agreement between all stakeholders. It records why the project was initiated, what must be achieved, and how the organization will measure success. Within Lean Six Sigma, the DMAIC method is commonly used. In the first phase of this method (the Define phase), a Project Charter is usually created immediately. This ensures that everyone enters the project with the same expectations and that data is collected with the same goal in mind. Working lean without a Project Charter is risky: you miss the foundation needed to stay focused together throughout the project.
Why a Project Charter is crucial for lean projects
Lean projects that start without clear direction often get stuck. Teams work past each other, objectives remain too broad, or solutions are proposed without a clear understanding of the real problem. Especially in production environments where multiple departments and processes exist, miscommunication can arise quickly. Projects with a well-written Project Charter gain a significant advantage through the following benefits:
- Team focus. Everyone knows which bottleneck is being addressed.
- More support. Stakeholders understand the urgency and expected outcome of the project.
- Faster decision-making. Roles and responsibilities are clear from day one.
- Measurable success. KPIs and clear success factors guide teams toward results.
The 5 components of a strong Lean Six Sigma Project Charter
If you aim for clarity, focus, and measurability, there are five essential components that must be included in your Project Charter. Below, we discuss these five building blocks to correctly create a Lean Six Sigma Project Charter.
Problem statement: What is the real bottleneck?
The problem statement describes what is going wrong and why this is a problem for the organization. At this stage, it is not about solutions, but about a factual, measurable description of the current situation. A good problem statement includes data (such as percentages, quantities, or financial impact) and is formulated objectively. This makes clear why this project should be a priority.
Objective: What exactly do you want to achieve?
The objective shows what the project must deliver concretely. In a Lean Six Sigma Project Charter, this is always formulated SMART: Specific, Measurable, Achievable, Relevant, and Time-bound. The objective forms the basis for evaluation at the end of the project. By comparing the objective with the results, it can be determined whether the project was successful.
Scope: What is included and excluded in the project?
In the scope, you define the boundaries of the project. Which processes, lines, teams, and products fall under the project, and which can be excluded? This prevents a project from expanding uncontrollably. Especially in factory environments where processes are highly interconnected, a clear scope helps maintain focus.
Team and roles: Who does what in the project?
A Lean Six Sigma Project Charter also needs to specify who is involved in the project. The allocation of roles is important here. Examples of roles include project leader, data analyst, production staff, or operators. By assigning roles upfront, ambiguities and discussions at a later stage can be avoided.
Critical success factors and KPIs: How do you measure impact?
In a Project Charter for Lean Six Sigma projects, it is determined in advance how progress and success will be measured. KPIs are often established for this purpose, such as cycle time, OEE, or the number of complaints per batch. In addition to KPIs, critical success factors can be included, such as operator engagement, data availability, or cooperation from maintenance.
Project Charter template
Looking for a simple Project Charter template for your Lean Six Sigma project? You can use the template below as a basic framework and expand it as needed.
Project Charter Template
- Project Name:
- Background / Problem Statement:
- Objective (SMART):
- Scope – Inclusions:
- Scope – Exclusions:
- Project Team and Roles:
- Sponsor:
- Project Leader (Green/Black Belt):
- Process Owner:
- Team Members:
- Critical Success Factors:
- KPIs:
- Deadlines / Milestones:
Tips for filling out the template:
- Use as much process data as possible in the problem statement.
- Keep the scope small. For example, start with one line or one product family.
- Involve operators in defining the problem, as they see daily what goes wrong.
- Align KPIs with existing dashboards to save time.
- Ensure the objective aligns with company priorities, such as safety, quality, or efficiency.
Project Charter example
The Project Charter example below shows what a completed document could look like for a factory dealing with excessive changeover times.
Project name:
Reduce changeover time on Packaging Line B.
Problem statement:
The changeover time on Packaging Line B currently averages 52 minutes per changeover, while the standard is 35 minutes. As a result, 1–2 scheduled production runs are missed daily, leading to lower output and additional overtime. Longer changeover times also cause more stress for operators and disruptions in scheduling.
Objective:
Reduce the average changeover time on Packaging Line B from 52 to 35 minutes before November 1.
Scope – Inclusions:
- Packaging Line B
- All packaging formats of Product Group Z
- Activities: disassembly, cleaning, changeover, start-up
Scope – Exclusions:
- Maintenance work outside changeover periods
- Process optimization of upstream installations
Project team and roles:
- Sponsor: Production Manager
- Project Leader: Black Belt
- Process Owner: Packaging Team Leader
- Team Members: 3 Line B operators, maintenance technician, planner
Critical success factors:
- Consistent presence of operators during SMED observations
- Access to historical changeover time data
- Willingness of planning to schedule test moments
KPIs:
- Average changeover time
- Available production time per shift
- Number of disruptions during start-up
Deadlines / Milestones:
- Define phase completed by August 15
- Analysis completed by September 15
- Improve measures implemented by October 15
Common mistakes in a Project Charter
Even though a Lean Six Sigma Project Charter may seem simple, mistakes are often made that cost a lot of time later. The most common pitfalls include:
- Vague or subjective problem statement → Always use data and facts to substantiate the problem.
- Objective not measurable → Always formulate SMART objectives.
- Scope too broad → Keep projects small to maintain speed and achieve results.
- Insufficient operator involvement → Operators experience the problem daily; without their input, the project is less effective.
- Unclear roles → Uncertainty about responsibilities leads to delays and frustration.
Avoiding these pitfalls increases the likelihood that a project will be completed on time and with good results.
Questions about a Project Charter? Contact us!
Want to implement the results of your Lean Six Sigma projects sustainably within your organization? Use the support of our EZ-GO platform. Together, we integrate continuous improvement into process standardization. Feel free to contact us – our experts are happy to help!