A project charter is a document that contains the basic elements (i.e., business case, problem statement, and scope) of the improvement project and answers the following questions:
1. The business case describes what the project does, how it impacts the strategic business objectives, is used as a motivational tool that describes why the project is worth doing, and it explains the consequences of not doing the project.
2. The problem statement is specific and measurable (quantifiable). It is an indication of how long the problem has existed, describes the impact to the organization, and describes the gap between the current state and the desired state.
3. The scope defines what the team is going to focus their process improvement efforts on, and it will identify those things that are out of scope so that the team doesn’t creep toward areas that are beyond the initial intent of the project.