Appendix A

Project Charter Template

PART1 , PROBLEM DEFINITION

1.1 Background
This section explains why the project is important in business terms.The background
section should:

• Establish clear linkages between the process problem and business drivers,
enterprise goals or market requirments
• Identify the business areas or dimensions that are being , or will be , impacted by
the problem (for example,revenues,operating costs,service levels,market position ,
and so on.
• Establish quantified estimates of the project’s potential impact along the business
dimensions.
Example: Company X generates for more calls per customer per year than the other
companies in the corporation or the industry norm.The greater number of calls has
various impacts on the call center --- including its ability to meet customer service levels
and operating cost targets. Currently,company X experiences higher per customer than
the industry norm or for other markets served by company X.
1.2 Problem Statement
• The problem statement describes mpre specifically what is wrong with the
process by indentifying :
• The bailure or shortfall in operational terms
• When and where the problem occurs
• The magnitude of the problem , in specific terms , if possible
• Who is impacted by the problem
The problem statement should describe an issue that is a known , verifiable, or
measurable fact, and must not prejudge a root cause or contain a solution.
Example: The call index’ (calls/customer/year) for company X is believed to be 4.5 ,
whereas the corporate call index is approximately 2.0 and the industry norm is 2.5.
1.3 Impacted Stakeholders
Identify the stakeholders who are impacted by the business problem as well as how they
are impacted.
Example: Call center operations managers and customer service representatives are
unable to meet service requirements , which impacts personal performance results.
Customers are unable to reach customer service representatives and are indicating such
on the customer satisfaction result. Repurchase patterns are trending unfavorably,
possibly due to poor service levels.
1.4 Goal Statement
Goal statements are used to define success ( that is , what is to be accomplished ) . Well-
constructed goal statements are specific , measurable , attainable , relevant , and time
bound (SMART) and are generally constructed using a three-part statement including: (1)
a verb describing direction, (2) a process measure, and (3) a target value.
Example: Decrease company X’s call index to 2.5 calls per customer per year by the end
of 2002.
PART 2, PROJECT PLAN
2.1 Project Approach
Describe the organizational approach and methodology that will be used to conduct the
project . Organizotional approaches may vary in terms of team sizes and commitment
levels. When describing methodolohy , be sure to note any tailoring that has been
performed to the foundation methodology as well as any shortcuts that are anticipated.
2.2 Project Organization
Identify the roles and occupants that will participate in the project. It is essential to
explicitly define the amount of time the various roles are expected to contribute to the
project and who will ensure this time made available . Generally, time contributions are
expressed as a full-time employee [FTE] percentage.
1.Project champion—identify the person who will champion the project and team .
2.Team coach – identify individual who will facilitate and lead the team.
3.Team numbers- identify the core team members.
4.Supporting cast—identify the subject matter experts (SMEs) who will be made
available to support the team.
2.3 Project Scope
Defining project scope is essential to easure that process improvement teams work within
the appropriate solution space. The scope statement should identify:
• What processes the team should focus on
• The boundaries of those processes
• What (if anything) is out of bounds for the team
Example: The team will focus on the call-handling process for company X , including
all types of calls. Initially , the team will determine which call types represent the greatest
improvement potential . When the field is narrowed to the vital few ( by applying the
80/20 rule) , the team will need to determine if there are ways to align company X’s call
volume with industry averages. Technology-based solutions are outside the scope of this
effort.
2.4 Project Work Plan
Describe the work breakdown structure for the project .
2.5 Project Deliverables and Dates
Identify key project milestones and deliverables and establish target dates for completion
of these milestones and deliverbles . Milestones may include process steps (for
example,DMAIC) or delivery of work products (for example , deployment plan , training,
or documentation)
Example: The team will have the analysis phase of work completed July 1,2002 .
Implemantation dates will be dependent on major process and system changes , which
will be addressed in the improvement proposal.
Milestones and due dates include:
1.Prepare project proposal by mm/dd/yy.
2.Conduct project chartering by mm/dd/yy
3.Approve the carter by imm/dd/yy.
2.6 Project Budget
If appropriate describe the nonpersonnel resources that will be made available to the team
(including space,budget , training , supplies , and people). Be sure to include any decision
limits and reporting requirements that may be imposed on the project team . In many
cases , this section may be optional.
2.7 Constraints , Assumptions , and Risks
This section should describe any constraints the project team will face , any major
assumptions the project team is making , or any concems that need to be addressed during
the project.
PART 3, PROJECT COMPLETION REPORT
Part 3 is completed at project conclusion to record results, identify continuing plans and
responsibilities , and record lessons learned
3.1 Project Completion Summary
Describe how the project was concluded-including what goals were attained or not
attained.
3.2 Projected Results
Identify the savings projected to be delivered by the project.
Hard savings . Hard dollar savings are monetary savings from the elimination of
company costs as a result of the process improvement. Examples include the alimination
of FTEs and the associated costs including payroll 401K and ATPI benefits, and other
costs attributable to the position (training , travel , and so on) Also includes elimination
of temporary staff or other contracted services.
Soft savings. Soft savings are potential monetary savings from freeing-up capacity.
Exaples include elimination of partial FTEs to perform other tasks.Value of savings
includes percentage of 401K, ATPI benefits , and other costs attributable to the capacity
gains.
Intangible Savings. Include other desired outcomes as a result of process improvement.
Includes improvements in customer satisfaction , reductions in process cycle time , and
creation of market advantage
3.3 Deployment Plan
Describe how project deployment was/will , be handled –including key steps , dates , and
responsibilities.
3.4 Savings Ownership
Indicate who has primary responsibility for ensuring the gains provided by the project
are indeed realized.This includes making the management decisions required to take hard
savings and for ensuring that the capacity freed by soft savings is effectively utilized.
3.5 Review Plan
Describe when and how the postimplementation review will be coaducted. Be sure to
identify who has responsibility for planningand conducting the review