Project Charter Example

Project Charter Example

Problem Statement

Create a project charter for the project Improve Customer Response Cycle Time. A few key facts about the project are shown below.

Notes

1. Historical process has a cycle time of 41 days (Jan-Jun 2023)

2. We could have a cost avoidance of $1M due to lost customer

3. We should target the goal to be 15 days (best in class with competition)

4. First focus on our most important product ABC and then replicate to others

 How to perform analysis

Step 1: Open Sigma Magic
  1. Click on the Sigma Magic button on the Excel toolbar.
  2. Click on the New button to create a new project.
Step 2: Add the analysis template
  1. Click on the Tool Wizard to add the analysis template.
  2. Click on Project and then Project Charter.


Step 3: Specify analysis options
A new worksheet will be added to your workbook. Analysis Setup will be automatically opened, in the setup tab specify the following details.



Click on the Checklist button, you will see the following dialog box. Ensure that the items mentioned in checklist should be marked.



Step 4: Enter the Worksheet data
Click on Create button to save all changes and compute the outputs for this analysis.On the worksheet, enter the following details. A sample worksheet is given below:



Step 5: Generate analysis results
Finally, click Analysis Setup and then click on Verify tab to ensure all the inputs are okay and shown in a green checkmark.



Click OK to close the dialog box.

Interpretating Results

  1. This project is meant to improve the customer service response cycle time. This fits within the business's strategic goal of improving the customer experience. Without this, it could lead to a potential revenue loss of $1M, making it imperative that the initiative be done.
  2. The cycle time of the current is 41 days, which is not efficient. Historical data of the North American region from Jan–June 2023 validates that this has been a documented issue.
  3. Project specific and measurable: The objective of the project is to bring the cycle time from 41 days to 15 days by the end of December 2023, thereby ensuring that it is achievable, realistic, and time-bound.
  4.  The project is limited to "Product ABC" while excluding all other products. This will prevent scope creep and ensure focused execution.
  5. The project lays out clearly defined milestones and deadlines with key dates falling between Feb 2, 2024, and April 2, 2024. The major responsibilities of key team members like Project Leader, Sponsor, Subject Matter Experts, and Process Owners have been defined, thus ensuring accountability as well as smoothness in execution.

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