Welcome to lecture 11 on project management basic learning objectives include defining and describing the element of Project Charter, developing problem and mission statements. What is a project charter success of any project depends upon how well it has been documented. Six Sigma project charter is a vital element. Project Charter is a written document that defines the project purpose and deliverables helps the team to keep focus on project as well as aligning them with organizational priorities. Project Charter is As a way of transferring the project from the champions to the improvement team. It also play as tool for epics council to review project progress.

Typically, a project charter includes business case problem statements, mission statement, scope, project boundaries, details of team, project schedule, etc. Let us discuss them one by one. Business Case. Business Case provides the broad definition of the issue provides rational or why is that project a key business priority link projects to the strategic priorities The business preparing business case is nothing but answering the following question How will the project drive business goals? How will this project impact the customer? Why is it important to do the project now?

What are the consequences of not doing it now? What are the expected financial benefits? It is an example of business case from a fabrication company. You can see this business case gives the broad view of problem such as not meeting the target yield of 99%. The reason for doing this project now, that, by yield increasing project they can achieve The business goal expected benefit that could be received by carrying out the project etc are incorporated in this business case. Another major component of Project Charter is the problem statement.

Let us first understand what is a problem rather than what is the problem a problem is a repeated and visible performance deficiency in manufacturing or service processes. It is referred as the pain area and should be considered as opportunity for improvement. However, description of this pain becomes a problem statement only when it answers that when has been this Problem occurring for example, during last six months or past two years, etc, what is problem in numeric terms? For example 40% rework 40%, excess inventory etc what is the money impact of the problem to the organization? For example, dollar 1 million loss to company annually, etc. Why in terms of money?

Let me explain more with a simple question to you. Have you ever experienced that your suggestions or points are often rejected or not being listened by the top management despite your suggestions being praiseworthy Well, if yes, it means you have not framed the points in a proper statement. top management understand only one language that is the language of money. That's a global fact. Could you explain them the proposed project in terms of money, you would succeed in sanctioning the project or Sure. One more point to remember that there should not be any blame or solution.

In the problem statement. Let us review an example. A six sigma project team developed a problem statement but the team could not get the approval for the project. Reason the problem statement was not appropriate. Let us analyze their statement, it reads like this payments from our customers are always late because they are this satisfied with our delivery due to production delay. Why has this problem been rejected?

Because there were no quantitative terms of problem. Impact of problem in money term and blame as well as solution was also there in the statement. Hence, we could say this is not a good problem statement. Nobody could have accepted this problem. Can we rewrite it into a good problem statement? That is rewrite it.

For the past 10 months 70% of our customers paid the bill late by 35 days. This impact our organization with an annual loss of approximately $2 million. It's a good statement. Now. Let us analyze the three factor of a good problem statement. Number one, when number two, what and number three, the money impact.

Next component of Project Charter is the mission statement. Problem statements and bold statements are a matched pair of Project Charter. Similar The problem statement discussed above goal mission statement will have target to achieve by teams in measurable terms approximate benefit by achieving the target time for completion of project that is understand the mission statement from the same example of problem statement that we discussed right now. What could be goal or mission statement or This problem can develop the mission statement something similar like goal is to decrease payment delay from 30 fi to nil in six months and thereby saving $2 million and Let us analyze whether it has all the requirements of a good mission statement the target time and approximate benefit. Why is it important to develop the problem and mission statements? Because it gives a team a clear idea of what is a problem to be solved, what is a target to be achieved until unless to understand these two there is no improvement.

There is no problem solving and there is only confusion. That's all for this lecture. But this we are ready to move to the next lecture, which is on project management basics. Thank you