Project Charter in DMAIC: Blueprint for Lean Six Sigma Success

In Lean Six Sigma, the Project Charter is your roadmap, compass, and guiding contract—all rolled into one. It defines where you’re starting, where you want to go, and how you’ll get there. Without it, projects risk drifting into chaos, misalignment, and eventual failure.

🎯 Why a Project Charter Matters

“Plan your work, and then work your plan.” – Kevin Clay, Six Sigma Nerd

In traditional organizations, we often jump to firefighting—fixing symptoms instead of root causes. The result? Problems keep coming back. The Project Charter, as the first step in DMAIC’s Define phase, helps avoid this trap by providing structured clarity, team alignment, and management buy-in from the start.

It sets expectations, secures resources, and focuses everyone on solving the right problem the right way.

🔍 Where It Fits in DMAIC

The Project Charter anchors the Define phase in DMAIC (Define, Measure, Analyze, Improve, Control). Without it, subsequent phases become ambiguous and ineffective.

“When I describe the project charter to students, I use the analogy of planning a race. The charter defines the starting line, the finish line, the purpose, and the route.” – Kevin Clay

🧱 Six Key Elements of a Solid Project Charter

1. Business Case – The Purpose of the Race

This explains why the project is important to the business and why it should be done now. It links the project to business goals, KPIs, and the Voice of the Customer (VoC).

Example: "From Q1 to Q3 2024, our invoice processing error rate rose from 6% to 14%, resulting in over $120K in payment delays. Our target is under 5%, and this gap reflects a significant loss in cash flow."

2. Problem Statement – The Starting Line

This defines the current problem using clear, quantitative data—without assigning blame or suggesting solutions.

“The problem statement should be related to the Voice of the Customer. Never assign blame or state the solution.” – Kevin Clay

Poor: “Our ERP system is outdated. We need a new one.” Better: “Over the last 6 months, 20% of repeat customers paid invoices over 60 days late, affecting $259K in cash flow.”

3. Goal Statement – The Finish Line

This is the measurable improvement you’re aiming for, written as a SMART goal: Specific, Measurable, Attainable, Relevant, and Time-bound.

“Start with a verb: reduce, increase, achieve, improve. Never assume a solution or assign blame.” – Kevin Clay

Example: "Reduce invoice processing errors from 14% to below 5% by the end of Q2 2025."

4. Scope Statement – The Route of the Race

Scope clarifies what is included and excluded in the project. Without it, you risk scope creep, confusion, and stalled progress.

“Scope defines product families, geographies, departments—and prevents projects from stalling indefinitely.” – Kevin Clay

In Scope: Domestic invoicing workflows for repeat customers Out of Scope: International operations, one-time orders

5. Timeline / Milestones

Lay out key dates for completing each DMAIC phase and include checkpoint reviews (aka tollgates).

Phase	Milestone Completion
Define	July 15
Measure	Aug 5
Analyze	Aug 25
Improve	Sep 15
Control	Oct 5

6. Team Members and Roles

List your core team: Project Lead, Sponsor, Process Owner, SMEs, and other stakeholders.

Example:

• Project Lead: Maria R., Black Belt

• Sponsor: CFO

• Team Members: AP Manager, Finance Analyst, IT Rep

✅ A Living Document

Clay emphasizes that the charter is a living document—not set in stone. As you learn more during the Measure and Analyze phases, the problem statement, goals, and even the scope may need revision.

“The Charter will be revised as you gain more knowledge about the project.” – Kevin Clay

🚫 Common Pitfalls to Avoid

• Writing vague, blame-filled problem statements

• Including solutions in the goal or problem

• Ignoring alignment with business KPIs

• Skipping stakeholder involvement

• Failing to update the charter as insights evolve

📊 Real-World Mini Case

Project: Reduce Customer Refund Processing Time

Business Case: Refund delays are hurting customer satisfaction scores and retention. Current turnaround time is 14 days; target is 5 days.

Problem Statement: Over the last quarter, 65% of customer refunds took over 10 business days to process, leading to increased complaints and churn.

Goal Statement: Reduce refund processing time from an average of 14 days to under 5 days by Q3 2025.

Scope: In-scope: online orders; Out-of-scope: in-store refunds

Team: Green Belt, Customer Service Manager, IT Analyst, Process Owner

💡 Final Thoughts

The Project Charter is your project’s north star. Done well, it eliminates ambiguity, inspires collaboration, and builds a firm foundation for results. In Kevin Clay’s words, it ensures you don’t “run into the burning building without a plan”—and then have to fight the same fire again.

“The Charter defines the purpose, the route, and the destination. Without it, you’re just wandering.” – Kevin Clay (2016)

📚 Citation

Clay, K. (2016, December 28). How to Complete a Six Sigma Project Charter. Retrieved from LinkedIn Article