DMAIC Project Contract

Also referred to as the Project Charter

The first step is in any DMAIC project is refining the Six Sigma DMAIC project contract. A sample project contract is shown below.

This template is available for purchase from the Templates page.

DMAIC Project Contract

The details for completing the DMAIC project contract are shown below:

1) Project Title or Identification Number

2) Problem Statement – detail the problem to improve with numbers and time frames. Avoid bias or any indication of a solution in the statement. State only facts, refrain from opinions or subjective assumptions.

3) Business objective – included information should be:

Specific – detailed information on the process or customer voice.

Measurable – current and desired goal, may be more than one metric.

Attainable – within the teams control.

Relevant – aligns with company objectives.

Timely – defined start and expected completion dates.

4) Financial Quantification - should involve financial and managerial accountants along with GB, BB, and/or MBB. It is important to quantify accurately including the timing. Properly distinguishing between hard and soft savings is critical to upper management. Hard savings are defined as actual money saved or not spent as planned. Soft savings are intangible improvements such as shifting work tasks, improving customer perception, and reducing failure risks.

5) Team members – signatures, roles, and date of initiation (may not be firm at this point).

6) Process Owner – One team member that will take over control and manage the gains after the project is closed. Someone that is close to the process and willing to take on the responsibility. This person is not typically the GB/BB.

7) Champion/Sponsor – executive management leader to provide guidance for the team but limited detailed participation in team activity.

8) Scope – process boundaries to stay within while achieving objective.

9) Upper Management Approval - contract submitted to upper management and must receive their approval. Upper management may also attend this approval to address the team and elaborate on the importance and to show connectivity.

When the contract is completed it should show a direct link from the team members, leader, GB/BB, to upper management. The team now has the autonomy to operate within the conditions with in the contract.

However, contract stipulations are negotiable. Information will evolve from the teams efforts. Changes can occur within the scope, resource needs, or the objective.

It does not need to be perfect in order for the team to start. There will likely be revisions in the DEFINE phase as the project scope and financial impact are better understood.

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