Project Charter

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A charter enables a team to understand their boundaries on the project, know what is and isn't
within their jurisdiction, understand where the project fits in the organization's overall
improvement efforts or business strategy, and have a clear idea of where they should begin.
A charter forms the linkage between Team Goals, Individual Goals (PRDs), Site Goals, and
Business Goals.

TeamGoals
Goals
Team
Strategic
Strategic
Business
Business
Goals
Goals

Charter

Scoreboard
Process

Team Charter

Customer Req.
Voice of the Customer Table

Purpose and Goals

Scope / Pace
Process
Boundaries
Support
Requirements

Draw Process Boxes and Name Process

5
Identify
Input

Identify Intermediate Steps

4 Identify Last Step

7

Customer
Needs

2
Identify
Output

Customer
Data

Key needs identified by

the VOC processes as
being critical
opportunities for
improvement

3
Identify
Customer

Customer
Metrics

Data supplied by the

VOC System that
demonstrate why we
know these are key
needs

Key measures linked to customer

needs. Will include customer
expectations, our current baseline
performance, measurement system,
and our goal.
Advanced organizations will include
process metrics

List Sub-steps

4 - 6 Intermediate Steps
4 - 6 Sub-steps

Site
Site
Goals
Goals

Key Metrics
Action plan

Analysis

1997 R&O TREE - Goal Strategy and Specific Actions

Goal No.

Causes of Returns

IndividualGoals
Goals
Individual

F
R
E
Q
U
E
N
C
Y

Owner(s)

Due
Date

REVIEW
DATE

#1 C ustomer Sa tisfaction

STRATEGY

ID / Sq

Sq.

ACTION

Due
Date

(Related To St rategy)

%
Done

Owner (s)

Start
Date

Due
Date

CAUSE
EFFECT

A charter should tell the team:

- What process or problem to study / improve / fix
- Why it is important to the end customer, and to the organization
- What boundaries and/or limitations there are; time, money, resources
- What magnitude of improvement they are expected to achieve
- Target start and completion dates, including milestone achievements
- Tie Team Goals to Organizational Goals
- Establish avenues of communications; break down barriers
- What the Team is accountable for

Form TREE2DEP.DOC

Metrics

Impact Towards Goal

(Remarks)

%
Done

Action Items
Action to meet customer
expectations of key needs.
Will include owner, living plan
and timeline, and will be used
for driving action. Customer
follow-up will also be ensured.

Project Charter
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Sponsor / Leadership:

filled by Manager

Project Name:

Facility / Site:

Project Sponsor:

Project Leader / Champion:

Project Co-Leader:

Process Owner:

filled by Manager
Filled by Leader
Manager and
Leader

Definition:
State The Project: (Definition/Description)

Project Objectives: (Cost, Quality, Delivery, Safety)

Goal: (What are you going to accomplish?

i.e. To improve the analog I/O module XYZ's on-time-to-want deliverable by 50%)

Measurement: (What are you going to measure and how?

TOTAL COST
SAVINGS

i.e. Cost, Delivery, Quality, Safety)

Annualized
Savings

Baseline (Cost):

Expected Savings (Cost):

Baseline (Delivery):

Expected Savings (Delivery):

Baseline (Quality):

Expected Savings (Quality):

Baseline (Safety): $
Baseline (??):

Expected Savings (Safety):

Expected Savings (??):

One-Time
Savings

Cost
Avoidance
Savings

Project Charter
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Team Members:

NOTE: Place an asterisk * after the last name of the Co-Leader & Process Owner

Last Name:

External Customer:

First Name:

Last Name:

First Name:

Internal Customer:

Schedule:
Target Start Date:

Target Completion Date:

Milestones:
Milestone 1:
Description:
Target Completion Date:

Milestone 2:
Description:
Target Completion Date:

Milestone 3:
Description:
Target Completion Date:

Milestone 4:
Description:
Target Completion Date:

Project Charter
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Support Information
What Lean or Continuous Improvement Tools / Methodologies will the team engage?
5S X

VSM X

Cell Metrics X

PULL X

Kanban / POLCA X

SPAGUETTI DIAGRAM X

Visual Controls X

Site Assessment

80/20 Analysis X

Basic Quality Tools X

Kaizen Events X

Set-Up Reduction X

PFMEA X

Standard Work X

Flow / Line Design X

LOAD CHART X

TPM

Value stream map X

Point of Use X
[add-ons]

Define the process inputs/outputs and/or input/output boundaries to the area / process under improvement / study

How can this project's methodologies or activity engagement be propagated to other areas within your facility?
What are these other areas?

Project Comments:

Project Charter
Glossary Of Terms
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Terms

Definitions

Annualized Savings

Typically is the amount of savings that is a result of project activities that will be realized on a repeated annual basis

Cost Avoidance Savings

Typically is the amount of costs that will be avoided as a result of the project's outcome

External Customer

Typically to whom does the company sell the final product; end user. This may also be a distributor

Goal (Project Objectives)

This is what the team is targeting, or going to accomplish as part of the Team Charter. It should follow the SMART
principles Specific, Measurable, Achievable, Results Oriented, Time Specific

Input Boundaries

Typically input constraints to the process / area under study / improvement that are beyond the teams control

Internal Customer

Typically personnel, internal to the company who rely on the output of the process / area under study / improvement

Measurement (Project Objectives) This is what the team will measure and how they will measure progress and expected results at project completion.
Methodology Propagation

Area used to convey information as to the next steps of standardizing the new process

Milestones

Pre-defined achievement points within a project; Used to gauge progress during the period a project is active

One -Time Savings

Typically is the amount of savings that is a result of project activities that will be realized only once

Output Boundaries

Typically output constraints to the process / area under study / improvement that are beyond the teams control

Process Inputs

Typically the inputs to the process under study / improvement; earlier / upstream process outputs that are inputs to
the process defined in the project charter

Process Outputs

Typically the outputs from the process under study / improvement; post / downstream process outputs that are
inputs to the next process

Process Owner

This is typically a representative from the area identified in the Project Charter who will take ownership of the
process and changes once the team moves on to their next arena of opportunity

Project Co-Leader

This is typically a representative who will assist the Project Leader in the day-to-day activities

Project Comments

Area used to relay information about a project that is pertinent to the project not already noted

Project Leader / Champion

This is typically a representative who will manage and guide the team, facilitate activities and handle administrative
activities; however this does not preclude this person from engagement as a team member in the actual hands-on
activities

Project Name

This could be any unique name given by the project team to represent the activities defined by the project charter

Project Sponsor

This is typically a representative from site's management staff who has significant authorization in the decision
making process.

Schedule

Typically key dates associated with completion of a project specific task or the project itself

State The Project

This is the definition of the project: The problem to be studied, improved, fixed; Importance to the end customer and
organization; Boundaries: Time, Costs and Resource limitations; Linkage between Team, Business, Site, and
Individual goals; and Team Accountability

Target Completion Date

Date project objectives have been completed and all open tasks are completed or assigned ownership.

Target Start Date

Team Kick-off Date

Team Members

Key personnel assigned to the project team