Six Sigma Yellow Belt Project Charter

Project Name Fleet Optimization Project

Today’s Date 25/12/2019
Project Start Date 27/12/2019
Target Completion 10/02/2020
Date

Project Element Response

Problem Statement Over a period of five years, the vehicles and the drivers that
 Includes time, were inducted in the company’s fleet are underutilized by 30%
measurable item, gap and overstaffed by 20%, causing the company loss in monetary
and business impact value and ineffective system.
Business Case  The project is critical to ensure that costs are cut down
 Why is this project and the provided fleet resources are utilized without
important to do now? wasting resources ineffectively.
 What is the project’s  It is expected to save huge costs in fuel consumption,
financial impact? staffing and time management.
 What is the impact on  Six sigma methods will help identify gaps and curb
DPMO/ Sigma level? wastage of resources.
 What is the impact on  Our customers will be provided timely services and it will
customer service improve the service quality of the fleet team.
Goal Statement To initiate more effective, efficient and managed fleet provision
 Specific services by downsizing unnecessary staff by 20% and
 Measurable rearranging fleet duties to utilize drivers and vehicles 100% by
 Achievable the end of a 30 day cycle.
 Realistic
 Time-bound
List of Improvement Goals Measure (units) Baseline Goal
1. Cars required 45 30
2. Idle drivers hours 3 hours 1 hour
3.
4.
5.
Process The vehicles and drivers that are currently in the fleet team are
 Describe the process more than required which encourages a lot of the drivers to sit
in which the problem idle and the vehicle stay parked, waiting for duties to be
exists assigned.
Project Scope  Driver and staff duties, timings and shift assignments
 What part of the along with vehicle assignment and utilization will be
process will be addressed.
addressed?  The team will be strictly focusing on eliminating wastage
 What are the of resource and put to use the complete potential of the
boundaries of the available vehicles and staff while letting go of
project or process? unnecessary vehicles and employees.
 What areas are
inside or outside the
team’s focus or
authority?
 Attach a SIPOC
diagram if necessary
Team Member Name
Project Sponsor
Fleet Assessment Consultants
Key StakeholdersAdministration department and customers
Team Lead Project Manager
Team Members Administration consultant, fleet supervisor, Regional Manager
administration, Fleet and Travel Expert
Process Owner Fleet and Travel Expert
Other
Timeline by Project Stage Milestone Target Completion Date
Define Project Charter and kickoff 25th December, 2019
Measure Define and collect data 6th January, 2020
Analysis Find causes 16th January, 2020
Improve Fix causes 26th January, 2020
Control Standardize the fix 3rd February, 2020
 Team Charter

Project Title Fleet Optimization Project

Expectation Example Team Rule
Attendance is required at all team
meetings. Changes in meeting times
Attendance
must be made at least 24 hours ahead Attendance is mandatory for all involved and everyone will
of time. be intimated via office emails a day prior.
Team members may not be substituted
Participation Team members assigned with tasks cannot be substituted,
unless approved by team leader. as every member is vital to the project.
We will stay on task and on topic, using
the Project Charter as our guide. A
Focus Accomplishing the goals laid out in the project charter are
meeting agenda will be publishedat
not to be compromised and will be referred to every time if
least one day in advance.
any conflict observed.
Only if the interruption is absolute necessary. Members
Interruptions for emergencies only.
Interruptions can only excuse themselves briefly to attend to other items
Phones turned to silent.
that are necessary.
All deliverables are expected to be
Preparation completed in a timely manner. Each
Team members will ensure that all deliverables are
meeting will have a published agenda.
completed within the due schedule.
All meetings that have been intimated will be ensured
Meetings will begin promptly as
Timeliness punctuality by all members with no tolerance on late
scheduled.
comers.
We will choose the best decision-
making method for each situation. We
Decisions All team members are free to speak their minds and
will support decisions made by the
discuss all ideas openly. The project manager will hold the
team.
final decision, keeping in view the agenda.

Data We will rely on data to make decisions.
We welcome honest disagreements, as
long as everyone is treated with
Conflict
respect. A facilitator will be used if
conflict cannot be resolved.
Each data collected and subsequent analysis of provided
information will be used to arrive to conclusions.
Project managers will moderate conflicts and resulting
issues. Disagreements and difference of opinions are
welcomed, while keeping in view the agenda.

Other

Team Member Role Signature

1 Project Manager
Administration
2 Consultant
3 Fleet Supervisor
Regional Manager
4 Administration
 Data Collection Plan

Measure Data Type How Who When

Staff Time In – Quantitative Log book, Fleet supervisor After project

Time Out Register, Portal initiates

Vehicle mileage Quantitative Vehicle Administration After project

Inspection logs Consultant initiates

Customer Discrete Surveys, Regional Before and after

feedback Reviews Manager completion
Administration

Duty Check In – Quantitative Log Book, Portal Fleet Supervisor After project
Check Out initiates
 Process Map

Initiate Meeting Standardize the provided

solution

Discuss Issues with the

team
Monitor for quality

Gather data from fleet

staff and vehicle logs

Identity root causes in

underutilization

No Follow through with 5 Why

Issues
technique
confirmed

Yes

Apply solutions

No

Yes
Issues
resolved
 Null And Alternate Hypothesis

Before Improvement:

H0 = 3 (hours of fleet staff sitting idle)

HA => 3 (hours of fleet staff sitting idle)

H0 = 45 (Number of vehicles inducted)

HA => 45 (Number of vehicles inducted)

After Improvement:

H0 = 1 (hours of fleet staff sitting idle)

HA <= 1 (hours of fleet staff sitting idle)

H0 = 30 (Number of vehicles inducted)

HA <= 30 (Number of vehicles inducted)

 Lessons Learned

With Six Sigma and its developed methodology, any process can be refined and freed of wastage of resources.
The different approach culminating into one complete system via multiple routes is an exemplary process for
companies looking to get optimal output, provide required results for stakeholders, and manage expectations of
the customers.