Information related to predetermined Six Sigma parameters is issued by the senior management through a document known as the "project charter". Aside from defining the Six Sigma parameters, the project charter also acts as an authorization certificate, allowing the project manager to allocate organizational resources towards the completion of the implementation projects.

What Exactly Is A Project Charter?

Every project is implemented for satisfying a business need. These unique business needs are specified in the project charter along with information about new business opportunities and business threats that the organization might have to face in the near future due to increased competition. The charter also contains detailed information about the type of features that are to be included in the product or service being designed. Detailed explanation is also given about how the customers will benefit from the newly introduced features.

What Is A Problem Statement?

Also included in the charter is the "problem statement", which provides detailed information, related to the essentialities of the project. It allows project managers to ascertain the overall scope of the project and determine the roles and responsibilities of the related stakeholders. If the project is complex, the problem statement lays stress on breaking down the whole project into smaller manageable subprojects that are easy to execute.

What Is A Mission Statement?

Another important part of the charter is the mission statement, which allows implementation team members to understand the basic relation between the project and the business objectives of the company. As far as possible, the senior management tries to give precise specifications in simple language in order to avoid any potential confusion. For example, if the purpose is to reduce defects, the mission statement will include a precise target such as "reduce defects to twenty percent" or something even more specific such as "reduce defects by twenty percent in two months time".

If simple and precise terms are not used, it will very unlikely that the project will be completed in time. Mission statements lay stress on eliminating the main problem that is causing the defects rather than suggesting short-term remedies. If the project is large and has been divided into smaller projects, different mission statements are created for each individual subproject. In spite of all the precautions, if the implementation team is not able to understand some points, they can talk to the project sponsors such as senior management.

The task of defining Six Sigma parameters related to project implementations has become easier through the project charter containing the problem statement and the mission statement. In layman's language, we can say that the project charter is a document that allows a project manager to understand what is to be done and how it is to be done.