Project Charter: Example

A manufacturing firm is concerned about increased competition in one of its key markets. For many years
it has realized solid sales and good profit margins on a packaging product for the medical device industry.
Recently, however, the firm has experienced growing competition for this product which uses a specialized
adhesive to bond together packaging films that can then be sterilized. The firm is concerned about both the
quality of the packaging produced (Is it keeping up with competition?) and the cost of the adhesive being
utilized (Is the equipment applying to much?). The operations manager forms a project team to address these
issues. The first business of the project team is to develop a basic project charter.
The firms quality and cost reduction project charter was as follows:

2011 Bisk Education, Inc. All rights reserved, and/or 2011 Transformation Technologies, Inc. All rights reserved.

Villanova Student Use Only

Project Charter: Example

Villanova University Six Sigma Green Belt Online Textbook

| 12

Project Title: Adhesive Improvement

Business Case: The adhesive lamination packaging products are experiencing increasing challenges to
quality and profitability.
Problem Statement: To reduce the cost of production by 2.5% and to improve the capability of key
lamination processes to a Cpk of 1.3 or better.
Project Scope Includes: The current adhesive lamination processes in Plant X manufacturing medical
device packaging.
Project Scope Does Not Include: Nonmedical device products.
Project goals:

7% of total

4% of total

Cpk = 0.8

Cpk 1.3

Cpk = 1.1

Cpk 1.3

162 hrs/month

75 hrs/month

Actual

Status

(1) Reduce the adhesive costs.

(2) Improve key process capabilities:
Process 1
Process 2
(3) Reduce rework costs.
Project Deliverables:
Creation of baseline measures of cost and quality.
Assessment of quality (Cpk, etc.) of major competitors.
Update of adhesive lamination costs of quality.
Anticipated Support or Resources Required:
Cost accounting personnel

2011 Bisk Education, Inc. All rights reserved, and/or 2011 Transformation Technologies, Inc. All rights reserved.

Villanova Student Use Only

Project Charter: Example

Project Deliverables:
(1) Define: Full project definition.

1/30/20xx

(2) Measure: Measurement of current state.

3/15/20xx

(3) Analyze: Complete cost and quality analysis.

4/15/20xx

(4) Improve: Implementation of basic improvements.

7/15/20xx

(5) Control: Revised control processes in place.

8/21/20xx

Tim Maze, Quality Manager

Phyllis Trask, Operations Manager
John Blum, Operator
Nicole Peterson, Inspector
Kaleb Lile, Finance
Jacob Neil, Engineering
Milestones

Target

(1)
(2)
(3)
Anticipated Financial Impact:
$2.4 million cost improvement per quarter
Prepared by:

Date:

Prepared by:

Date:

Villanova University Six Sigma Green Belt Online Textbook

|13