Step 4: Develop a Business Case for your Project
April 3, 2025
Now that we have the problem as well as the goal statement handy, it is time to ensure that these statements are well articulated in the business case. The management has to choose amongst several possible six sigma projects while granting its resources. The ones that do succeed in getting the resources from the management…
What is a Project Charter ? A Project charter is a 5 to 6 page document which collects all the information that has been developed in the previous steps and puts it in a central location. The Project charter serves as the constitution which governs the working of the project and disputes if any that…
What is a Project Schedule ? A Project schedule is a document that contains vital information about the beginning and ending of the each of the five phases of the DMIAC Six Sigma methodology. The project schedule is an important document because it contains information about the project team, risks that have been identified and…
The project begins when the top management assigns responsibility to the Project Champion. The Project Champion usually delegates the task of preparing the Project Charter to another team member. It is important for both the Project Champion as well as the team member to understand what information is required. Here are tips on how to collect and review primary information from the management.
Six Sigma projects do not suddenly appear. They are the result of conscious planning by the top management when they map the capabilities of an organization to the deliverables they foresee and find gaps. Alternatively Six Sigma projects are suggested by employees who are in the best position to suggest improvements. In either case it is a business problem which is driving the Six Sigma project. Hence information regarding the problem that is being solved is required.
Before beginning work on the project, there is a bare minimum amount of information which is required. This information pertains to the objectives of the project which are nothing but extensions of the business problem identified earlier. Also the time frame which is expected out of the six sigma team must be made clear.
Most of the times management does not give the Project Champion precise Six Sigma Project Statements. The information provided is vague and too broad to be specifically meaningful. For instance it could mean “preventing bad debts on accounts receivables”.
Obviously such a statement is a symptom and not the real cause. There is a considerable amount of digging down that needs to be done with this information provided by the management. It is for this reason that the Project Champion must:
The project team undertakes the project in the light of the data it has received. It is therefore essential that there be no ambiguity when it comes to storing this information. At a later stage of the project, this lack of data can be detrimental. It can cause the team to work either with the absence of critical data or engage in expensive time wasting data collection.
It is also possible that a misinterpretation may lead the team to start working on a completely wrong track. Therefore the activities pertaining to this stage should be conducted very carefully.
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