Six Sigma

jawdahshamilah

9_local_material_1

tony@servicesltd.co.uk

Six Sigma:

What It Can Offer,

How It Is Being Used Wrongly

& How the New ISO18404 International Standard Will Reduce Bad

Practice

PROFESSOR TONY BENDELL

ADVISOR, SKEA & MD SERVICES LIMITED

& CHAIR OF BSI TECHNICAL COMMITTEE MS6, RESPONSIBLE FOR DEVELOPMENT OF ISO18404


Overview of Workshop

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u Six Sigma is an important approach to process and organisational

improvement in organisations of all types, including Banking, the Oil

Industry, the Police, as well as manufacturing companies.

u

It focuses on variation reduction in processes, products and services

and can be combined with Lean approaches to reduce waste of

all types and bureaucracy.

u Until now, however, the problem has been a lack of effective global

regulation in how it is taught and implemented.


Overview of Workshop

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u The new ISO international standard, ISO18404, will be issued in

December 2015 and with it the opportunity for internationally

recognised certification of both organisations and individuals

as competent practitioners of both Six Sigma and/or Lean.

u Accredited certification will cover all types of organisations and

departments; Six Sigma Green, Black and Master Black Belts; as well

as equivalent levels of Lean practitioners.

u The standard was created on an international basis to stamp out

bad practices and misuse of the approaches.


Overview of Workshop

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In this workshop, working interactively with the delegates, Professor

Bendell will explain:

u Why Six Sigma is important and how to apply it effectively within your

organisation.

u How to ensure that you and your organisation achieve internationally

recognised ISO certification against the new ISO18404 standard

approved this year.

u What to do if you have already been Six Sigma trained or have a

company program in place, and would like ISO18404 certification.

u Delegates will also have the opportunity in the workshop to start to

develop their own organisational implementation plans.


Indicative Programme

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08.30 Introduction & Welcome

Clarifying Delegate’s Interests

09.00 Why Six Sigma is important and how to apply it effectively within

your organisation

10.00 Break

10.15 How to ensure you & your organisation achieve internationally

recognised certification against ISO18404

11.15 What to do if you have already been Six Sigma trained or have a

company program in place, and would like ISO18404 certification

11.30 Break

12.00 Summary, Implementation Plans & Close


Section A

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Why Six Sigma is important & how to apply it

effectively within your

organisation


Key Themes of Six Sigma

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u Corporate Improvement & Problem Solving Programme

u Process Focus

u Permanent Ongoing

u Top Down

u Trained Deployed Workforce Specialists

u Covers Manufacturing, Design, Transactional processes etc.


Key Themes of Six Sigma

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u Fact Based Analytical Approach

u Project Managed Improvement

u Use of Data

u Software- Excel & Minitab

u More than Lean Approach..

u Not just about Waste, also about Variation

u The Approach to Variation


Process Improvement

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u Value Adding Activity

u Inputs

u Outputs

u Outcomes

u Process measurement, feedback and management

u Process design

u There is always a process

- but not always well-known, and harder for strategy

and policy areas and long cycle times

9


Outcomes of Six Sigma

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Improvement Projects

u Redesign of Key Process Stage

u Resetting of Equipment

u Material Changes

u New Controls & Safeguards

u Protection Against Interactions

u Redesign

u Increased Insight & Understanding


Approaches to

Variation

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• Traditional Engineering Concept

• The Shewhart Concept


The Traditional Engineering

Concept

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“If parts are similar enough, then most of the time they will fit and the

product will perform in a way that is close to the function for which it was

designed”

Specification - help define how similar the parts need to be to be “similar

enough” to fit

Permissible Variation - that is meeting engineering requirements

Excessive Variation - not meeting engineering requirements


Traditional Engineering

Concept

tony@servicesltd.co.uk

u Main objective of this type of variation is to

define what a “good” product and a “bad”

product are to facilitate detection of “bad

products” at the end of the production process

Fabricate Inspect Pack Ship

Rework

Scrap


Traditional Engineering

Concept

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Problems with Traditional Engineering Concept:

1. It does not help identify why a product was “bad”

2. If demand for “good” items is high, marginal items will

be shipped

3. In order to meet production targets “deviations” from

engineering requirements become acceptable

4. Manufacturer tries to change specifications

This results in CONFLICT with the customer and the

customer suffers


The Shewhart Concept of

Variation (1920’s)

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u “While every process displays variation, some processes

display a controlled variation and other display

uncontrolled variation”

u Uncontrolled variation is a changing pattern of variation

over time that is attributable to “assignable causes”

diameter

time

u

Controlled variation is a stable and consistent pattern of variation

over time than can be attributed to “chance” causes

time


Ways to Improve Production

tony@servicesltd.co.uk

Uncontrolled

Variation

Identify assignable

causes

Assignable causes

difficult to remove

Assignable causes

easy to remove

Variation

excessive

Controlled

variation

Variation

Tolerable

Change/redesign

process and/or product

Fabricate

Pack

Ship


Exercise

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u How do the two opposing concepts of

variation apply to the organisation that you

work for, or one with which you are familiar?

u Which view is dominant? What does this

lead to?


What is Six Sigma?

The Origins of Six Sigma

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• Motorola as an icon of Quality

• Led campaign for a United States national quality award similar to Japan’s existing

Deming Prize, and won the resulting Malcolm Baldrige National Quality Award

competition in its first year.

• Motorola then faced a challenge to continue the perception that it was America’s

quality leader. So, it went on record as pursuing a defect rate lower than any

company had ever achieved, and announced that it would achieve a defect rate of

“not more than 3.4 parts per million” within five years. It framed its objectives in large

amounts of statistical terminology and coined the term “Six Sigma”.

• Of course, marketing was not the only reason for this programme – Motorola needed

to improve yields and reduce costs.


What is Six Sigma?

The Origins of Six Sigma

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• Xerox, who had won the Baldrige National Quality Award in 1989,

followed with a commitment to achieve Six Sigma quality levels by

1994, and was closely followed by Six Sigma programmes in numerous

companies including Boeing, Caterpillar, Digital Equipment, Raytheon,

Kodak, and notably GE.

• From the Manufacturing Sector, the approach then moved to the

Service Sector. Through G E Capital it moved into Banking, followed by

many others, including Citibank & Lloyds. The Public Sector followed.....

• Every Industry


Consistent Operations

(Six Sigma)

tony@servicesltd.co.uk

u

u

u

Many sources of variation in processes and outputs, associated

with variations in

- demand

- people’s performance and interpretation

- technology

- availability of inputs

- policy

- process management

- bottlenecks

Compounded by systematic background issues e.g poor

resourcing or planning

Often limited root cause data and online performance

monitoring and control

20


Consequences

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u

u

Process inefficiencies

- volume, time, cost

- complexity

Outcome deficiencies

- timeliness

- transparency

- Customer/public perception

21


Consistent Operations -

Six Sigma

tony@servicesltd.co.uk

u Approach originates in Private Sector; Motorola,

GE, Lloyds etc.

u Some public sector applications: Healthcare,

Courts, Network Rail, etc.

u Project-based with projects lead by trained

workforce specialists (‘Black Belts’ and ‘Green

Belts’)

u Based on use of DMAIC methodology, statistical

analysis of data as needed, extensive process

analysis and improvement toolkit and appropriate

statistical software (e.g Excel and Minitab)

22


tony@servicesltd.co.uk

DMAIC(T) Six Sigma

Process-Based Improvement

GE

n Define

n Measure

n Analyse

n Improve

Identify the process to

improve

Baseline & Eliminate guess work

Identify the cause of the problem

Generate solutions to remove

problem

23

n Control

n (Transfer)

Implement Control system

Pass knowledge on to similar

processes


General Principles

tony@servicesltd.co.uk

§

§

§

§

§

§

Corporate programme, driven and supported from the top

Strategic programme

Measured by product or service improvement and savings

Project methodology uses statistical tools and software (often

Minitab)

All projects monitored by Senior Management, and all Senior

Management trained

Training & supported application

24


Origins

tony@servicesltd.co.uk

u

u

u

1989 Motorola

1995 GE

But a ‘clever package’,

nothing much new!

u Origins in Deming, Juran and

Ishikawa’s work from 1950’s

and Shewhart from 1920’s

Deming

Juran

Ishikawa

Shewhart


Six Sigma’ Current Usage

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u Technical Target (Statistical)

u

Six standard deviations to specification limits either side of

target”

u

u

“three non-conformances out of one million opportunities”

“Best in Class”

u Variation Reduction/Process Improvement Programme

using project-based DMAIC(T) approach

u Measurement-based strategy for improvement

u “Philosophy”

26


Six Sigma Personnel

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u Black Belts

o

Usually full time Improvement Managers or Engineers

u Green Belts

u

u

o

usually part time on improvement

Yellow, White and Grey Belts

Master Black Belt

u Champions

27


Defining Six Sigma

tony@servicesltd.co.uk

Ø

Six Sigma is about…

§

identifying critical-to-quality features and then

§

§

§

§

using statistical tools to

ensure product and process designs are capable of delivering the

critical features consistently, and that

processes are controlled, thereby

reducing costs by reducing

§

§

scrap

rework &

Ø

§

service call rate.

The aim is to achieve no more than 3.4 parts per million defects

at each process step

28


Six Sigma Infrastructure

tony@servicesltd.co.uk

u

u

u

u

u

Project-by-Project improvement in ‘fenced-off’ areas

Clear roles, responsibilities and authority – Champions,

Owners, Black and Green Belts

Before and after performance measurement (typically cost)

140+ statistical tools and concepts

DMAIC(T) methodology: Define, Measure, Analyse, Improve,

Control, (Transfer)


tony@servicesltd.co.uk

Six Sigma Projects

Typically:

u

u

u

u

u

u

The implementation programme is project driven using DMAIC

Projects lead by (full-time) Black Belts and/or (part-time) Green Belts

Belt Projects identified before commencing Belt training

Projects are measured by savings

u if process is currently above 3σ, look for 50% improvement

u If process is currently below 3σ, look for 90% improvement

Projects are reviewed monthly by Directors

Projects are supported weekly by Master Black Belts


The Technical Meaning For

Six Sigma

tony@servicesltd.co.uk

vic

es

Ltd.

DEFECTS

A 3 sigma quality

product/process

has 6 standard

deviations inside

the specification

SPECIFICATION

DEFECTS

Given the specification, Six Sigma Quality for a

product/process metric means that more of the

distribution is contained within the Specification

than at the Three Sigma level.

Yield (% Inside Spec) DPMO (defectives

per million

opportunities)

At ± 2 sigma 95.44% 45,600

At ± 3 sigma 99.73% 2,700

At ± 4 sigma 99.9937% 63

At ± 5 sigma 99.999943% 0.57

At ± 6 sigma 99.999998% 0.002

A 6 sigma quality

product/process

has 12 standard

deviations inside

the specification

Defects 3 Sigma 3 Sigma Defects Defects 6 Sigma 6 Sigma Defects


A 1.5 Sigma Shift!

tony@servicesltd.co.uk

The Six Sigma approach typically allows for the

product/process mean to shift 1.5 sigma ( as the

Worst Case), so:

1.5 sigma

shift in mean

3

Sigma

3

Sigma

DEFECTS

6 Sigma 6 Sigma

6 SIGMA

SPECIFICATION

DEFECTS

Yield (% Inside Spec) DPMO (defectives

per million

opportunities)

At ± 2 sigma 69.15% 308,500

At ± 3 sigma 93.32% 66,810

At ± 4 sigma 99.379% 6,210

At ± 5 sigma 99.97673% 233

At ± 6 sigma 99.99966% 3.4


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Effect of a Process Shift in Mean of 1.5 Sigma

§ 3 Sigma 66,810 non-conforming items per

million opportunities (ppm)

“below average”

§ 4 Sigma 6,210 non-conforming items per

million opportunities

“average/typical company”

§ 6 Sigma 3 non-conforming items per million

opportunities

“Best in class/World Class”

33


Six Sigma

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& Customer Requirements

Customers of products and services want:

§ consistent, reliable product and service

§ no defects, on time, robust

§ continuous improvement to product and service

§ costs down

§ more capability

§ ability to move into new technologies

§ belief in the supplier


Six Sigma and Customer

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Requirements continued...

Suppliers of products and services want:

§

§

§

§

§

§

§

§

§

happy customers

consistent processes

no defects

robust design

not to have to rely on inspection

costs down

more capability

ability to move into new technologies

partnership with the customer


Six Sigma and Customer

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Requirements continued...

Six Sigma

§

Consistently reducing variation helps achieve

customer & supplier `wish lists`

§

Gives continuous improvement a simple metric


Benefits Include

tony@servicesltd.co.uk

§

§

§

§

§

§

Controlled consistent operation

Predictability - quality, delivery, etc.

Product quality levels

Savings on inspection, rejects, warranty

Understanding processes & ability to implement

new technologies

Image


Responsibilities

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Six Sigma thinking based on Edwards Deming

u All management - working on the process to take

out variation

u All workforce - keeping variation under control

within the process

u But today there is a bigger potential for workforce

involvement


Relationship to Other Quality & Productivity

Approaches

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• Quality Management Systems and ISO9001

• The EFQM Excellence Model (and related

Excellence Models)

• Lean Operations

• Design for Six Sigma


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ISO 9001:1994

4.20 Statistical Techniques

4.20.1 Identification of Need

The supplier shall identify the need for statistical techniques required for

establishing, controlling and verifying process capability and product

characteristics

4.20.2 Procedures

The supplier shall establish and maintain documented procedures to

implement and control the application of the statistical techniques identified in

4.20.1


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Quality Management Process Model

© ISO 1999


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EFQM Criteria

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Enablers

Results

Leadership People Processes, People Results Business Results

Products &

Services

®

Strategy

Customer

Results

Partnerships &

Resources

Society Results

© EFQM 2012

Learning, Creativity and Innovation


EFQM Link to Six Sigma

tony@servicesltd.co.uk

Enablers

Results

Leadership People Processes, People Business

Products & Results

Results

Services

®

Strategy

Customer

Results

Partnerships

& Resources

Society

Results

© EFQM 2012

Learning, Creativity and Innovation

Managing

Variation

Reduction


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Waste

Consistency

(Lean)

(Six Sigma)

45


tony@servicesltd.co.uk

Waste

Consistency

(Lean)

Minimise

human

errors

(Poka

Yoke)

(Six Sigma)

46


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‘Waste Free Operations’

‘Consistent Operations’

‘Error Free

Operations’

§

Common Features of Approaches

- should be strategic

- not just systems approach - integrated people and systems approach

- involvement and participation (not just specialist functions e.g Operations

Research)

- deployed change agents with line reporting

- results-focused

- measurement and ‘tool’-based

- integrated training and deployment

47


tony@servicesltd.co.uk

£

cost

Variation Waste

Chronic Waste

Basic Work

time

48


Six Sigma and Lean - Potential

Conflict in Methodologies

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u Lack of a genuine integrated approach

u Six Sigma

- focus on the vital few

- control as part of DMAIC

u Lean

- emphasis on the Value Stream and removal of

everything else

Ø So, if organise project according to DMAIC, may be

too much to control!

49


Lean Six Sigma

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“In recent years, some practitioners have combined Six

Sigma ideas with the concept of lean operations (i.e.

manufacturing and service) to yield a methodology

named Lean Six Sigma. Lean – addressing process flow

and waste issues – and Six Sigma, with its focus on variation

and design, are viewed as complementary disciplines

within Lean Six Sigma, aimed at promoting "business and

operational excellence". This is used in companies such as

IBM to focus transformation efforts not just on efficiency but

also on growth. It serves as a foundation for innovation

throughout the organization, from manufacturing, service

and software development to sales and service delivery

functions.” Wikipedia


What is (Lean) Six Sigma?

tony@servicesltd.co.uk

§

§

§

§

§

§

Continuous reduction of process variation

Embraces leanness and simplicity. Waste and cost are driven out

at the same time as quality improves

A vehicle for culture change in every part of the business. Agenda

set by local management

Can unlock unexpected productivity gains

Projects do not normally require significant capital expenditure

Self-financing - a sound investment


The Rewards for GE

tony@servicesltd.co.uk

• GE, “the world’s most respected company”, adopted Six

Sigma in 1995

• Jack Welch, then CEO, said it taught GE employees about

the importance of fulfilling and surpassing customers’

expectations

• Also pushed in both directions along the supply chain

• GE built on Six Sigma in the drive to succeed in e-business


Six Sigma at GE 1996-2000

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Six Sigma Progress

(In millions)

Cost

Benefit

$2500

2000

1500

1000

500

1996 1997 1998 1999

0


General Experience of (Lean)

Six Sigma

tony@servicesltd.co.uk

u

u

u

u

u

Very effective focus programme

Even if infrastructure not right, still effective projects

May improve processes but not other infrastructure

Whole programme should be planned and scoped

Very good people development


Common (Lean)

Six Sigma Problems

tony@servicesltd.co.uk

u

u

u

u

u

u

u

u

u

Concentration on Statistical techniques and left brain

Out of date statistics

u

Emphasis on Formal Tests rather than exploration of data

140/141 Statistical Tools

u

u

‘Training by Rote’

Danger of Dilution

‘Training by Rote’ and Software “Black boxes”

Sometimes very limited use of Experimental Design

Root cause analysis sometimes limited

Over-emphasis on `Cost-Down` rather than `Profit Up`

Lack of link to Policy Deployment & Integration with other Programmes

‘Very American!’

55


Exercise

tony@servicesltd.co.uk

IS SIX SIGMA APPLICABLE TO

ANY ORGANISATION?


Summarising What is

(Lean) Six Sigma

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u A long-term business strategy to reduce process

defects towards and beyond 3.4 ppm

u Uses powerful statistical tools (including design of

experiments) and project management

u Project-based process and design improvement

that is both customer and cost-focussed

u Can be applied to any product, service or process

that can be measured

u Needs top management support


Successful (Lean) Six

Sigma Needs

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u Clear leadership and direction

u Focused goal setting

u Disciplined monitoring

u Professional standards of project management

u Proper training including appropriate statistical techniques

and experimental design

u Innovation and creativity


How Should We Begin?

tony@servicesltd.co.uk

§

§

§

§

§

§

§

Go for early success

Preferably high profile management interest

Focus on key critical-to-cost & critical-to-customer

issues

Monitor progress closely

Celebrate success

Build confidence

Ramp up


Rewards

tony@servicesltd.co.uk

§

§

§

§

§

§

§

Sharper critical-to-customer focus

Reduce errors, defects, scrap, rework

Savings in cost, time, and claims

Simplify operations, improve productivity

Opportunity to change culture

Happier customers

Better bottom line – improved budget

performance


Exercise

tony@servicesltd.co.uk

Consider an organisation that you know well.

u Does (Lean) Six Sigma apply to it?

u What are the potential benefits?

u How does it fit with other imperatives & initiatives?

u What are your concerns?


tony@servicesltd.co.uk Section B

How to ensure you & your

organisation achieve internationally

recognised certification against ISO18404


The New ISO18404

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Standard - WHY?

u Lean & Six Sigma big & lucrative process improvement, training and

recognition market.

u Unregulated and considerable abuse.

u Certification of practioners from many providers

u No real internationally recognised standards

u ‘Accreditation’ offered by various overlapping bodies


The New ISO18404

tony@servicesltd.co.uk

Standard - WHY?

u Lean & Six Sigma big & lucrative process improvement, training and

recognition market.

u Unregulated and considerable abuse.

u Certification of practioners from many providers

u No real internationally recognised standards

u ‘Accreditation’ offered by various overlapping bodies


Why?

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What?

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Introduction

If you advertise for a Six Sigma Black Belt and a candidate appears purporting to be one, how do you

know? If an organisation says it is deploying Six Sigma or perhaps Lean, how can you be sure? A

fundamental purpose of this standard is to assist in the answer of such questions.

Much debate has been had on the nature of Six Sigma and Lean, their commonality and their

differences. Protagonists have argued over the content, overlap, application, supremacy and

purpose of the two approaches. Various combinations of the two approaches exist, many under the

umbrella title of 'Lean Six Sigma'. Six Sigma and Lean have a commonality of field of application, i.e.

process improvement. Lean focuses on reducing 'chronic' waste and Six Sigma focuses on reducing

the variation and thereby its adverse effects.

This standard, therefore, sets out the separate competency requirements for Six Sigma and Lean

implementation; it also sets out a combined competency framework for Lean & Six Sigma. In so doing

it focuses on the competencies (skills and abilities) to deliver benefits to an organisation rather than

defining the specific educational level required for each role.

Candidates will be expected to demonstrate that they have an adequate level of competence, an

amalgamation of education, training, skills and experience necessary to fulfil their roles.

In its preparation It has been seen to be helpful to prepare this standard by focusing on Six Sigma, Lean

implementation and Lean & Six Sigma separately and the user will come across different tables

dealing with these subjects.


What?

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Contents

Page

Foreword ...................................................................................................................................... iv

Introduction .................................................................................................................................. v

1 Scope ................................................................................................................................ 1

2 Normative references ..................................................................................................... 1

3 Terms and definitions ..................................................................................................... 1

4 Competency of key Six Sigma, Lean, and Lean & Six Sigma personnel .................. 2

5 Adequacy of an organisation with regards to its Six Sigma, Lean or Lean & Six

Sigma approach and deployment.................................................................................. 3

6 Resource management ................................................................................................... 3

Annex A – Six Sigma ................................................................................................................... 6

Annex B – Lean .......................................................................................................................... 31

Annex C – Lean & Six Sigma .................................................................................................... 56


Competency of key Six Sigma, tony@servicesltd.co.uk

Lean, and Lean & Six Sigma personnel

4 Competency of key personnel in relation to Six Sigma, Lean, and Lean & Six Sigma

4.1 Education and training

Six Sigma, Lean, and Lean & Six Sigma personnel shall be competent on the basis of adequate

and appropriate education, training, skills, competencies and experience.

4.2 Skills and competency

4.2.1 Six Sigma

See Annex A.

4.2.2 Lean

See Annex B.

4.2.3 Lean & Six Sigma

See Annex C.

4.3 Experience

Appropriate evidence of relevant experience of an individual must be recorded, validated,

controlled and maintained. Records must be legible, readily identifiable and retrievable.


Six Sigma/Lean &

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Six Sigma

u Green Belt

u Black Belt

u Master Black Belt


Lean

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u Lean Practioner

u Lean Leader

u Lean Expert


Annex A – Six Sigma

(Normative)

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A.1 Green Belt

The Green Belt is expected to deliver the agreed benefits of a Six Sigma project to

the organisation. These improvement activities will often be within the Green Belt's

usual field of employment and operation. In so doing, the Green Belt will:

a) work with the local 'line management' to identify and quantify opportunities

for improvement within the local environment;

b) be required to–

work, possibly under the direction of a Black Belt or Master Black Belt, or as a

member of a larger Six Sigma project led for example by a Black Belt; and/or

lead a smaller Six Sigma project under the direction of a Black Belt;

c) possibly coach process operators (Yellow Belts) on process improvement

methods and activities.


A.2 Black Belt

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The Black Belt is expected to deliver the agreed benefits of a Six Sigma

project to the organisation. In so doing, the Black Belt will:

a) work with others to identify and quantify opportunities for

improvement;

b) organise multi-disciplinary teams (process organisation), where

necessary, and manage improvement projects;

c) lead improvement projects or facilitate Green Belt projects using the

DMAIC methodology;

d) train, coach and mentor Green Belts on DMAIC methodology and

associated process improvement techniques; and

e) to participate in all 'gate' reviews directly through prepared

presentations of the work accomplished to-date with an emphasis on the

accomplishments in the phase being reviewed.


A.3 Master Black Belt

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The role of the Master Black Belt is to support the Black Belts in the application of the

DMAIC methodology and the selection and use of the tools and techniques

required. In particular the Master Black Belt will:

a) lead improvement projects as required;

b) determine if any training activities are appropriate and effective;

c) provide training in one or more of the tools and techniques (described in the

table below) associated with Six Sigma to Black and Green Belts as required;

d) assist in the identification of suitable improvement projects;

e) assist in the determination of the scope of the selected improvement project;

f) assist in periodic reviews of the improvement projects;

g) provide 'internal' consultancy in advanced statistics;

h) provide support so that improvements identified within the nominated projects

are realised and maintained; and

i) coach and mentor the Black Belts in the application of the DMAIC

methodology and the selection and use of the tools and techniques required.


23 Six Sigma

Competencies

tony@servicesltd.co.uk

o

o

o

o

o

o

o

o

o

Organisational benefits

identification and prioritisation.

Business process improvement.

Change management.

Data acquisition for analysis.

Leadership development in self.

Leadership development in

others.

Creativity thinking.

Customer focus.

Decision making.

o Interpersonal and team leadership skills.

o Motivating others.

o Numeracy.

o Practical problem solving (opportunity

realisation).

o Presentation and reporting skills.

o Process thinking skills.

o Project management.

o Risk analysis.

o Self-review and development.

o Six Sigma tools.

o Stakeholder management.

o Statistical concepts.

o Statistical software use.

o Sustainability and control.


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Annex B - Lean

(Normative)

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B.1 Lean Practitioner

The role of the Lean Practitioner is to participate in Lean improvements

in the organisation. These improvement activities will usually be within

the Lean Practitioner‘s usual field of employment and operation. In so

doing, the Lean Practitioner will:

a) work to implement improvements in the local area;

b) use workplace layout techniques to improve process flow;

c) be required to lead improvement activities and quantify benefits

delivered;

d) coach team members on process improvement methods and

activities; and

e) run training sessions on Lean techniques.


B.2 Lean Leader

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The role of the Lean Leader is to drive improvements in the

organisation. These improvement activities will often be within the Lean

Leader‘s usual field of employment and operation. In so doing, the

Lean Leader will:

a) work with the local 'line management' to identify drive

improvement within the local environment;

b) use TAKT times and cycle times to identify appropriate resource

requirements

c) be required to lead improvement activities and quantify benefits

delivered;

d) coach Lean Practitioners on process improvement methods and

activities; and

e) run training sessions on Lean techniques.


B.3 Lean Expert

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The role of the Lean Expert is to support the Lean Leaders in the application of

Lean principles and the selection and use of techniques required.

In particular the Lean Expert will:

a) lead improvement initiatives as required;

b) determine if any training activities are appropriate and effective;

c) provide training in Lean approaches to Lean Leaders as required;

d) assist in the identification of suitable areas for Lean implementation;

e) assist in periodic reviews of the implementation;

f) provide 'internal' consultancy in Lean;

g) provide support so that improvements identified are realised and

maintained; and

h) coach and mentor the Lean Leaders in the implementation of Lean

principles and the selection and use of the techniques required.


16 Lean Competencies

(with subdivisions)

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Annex C

Lean & Six Sigma

(Normative)

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There are three levels of practitioner in Lean & Six Sigma.

C1: Lean & Six Sigma Green Belt

The competencies for this level of expertise comprise the combined

competencies of Green Belt in Six Sigma AND Practitioner in Lean.

Refer to Annex A table A1 and Annex B table B1.

C2: Lean & Six Sigma Black Belt

The competencies for this level of expertise comprise the combined

competencies of Black Belt in Six Sigma AND Leader in Lean.

Refer to Annex A table A2 and Annex B table B2.

C3: Lean & Six Sigma Master Black Belt

The competencies for this level of expertise comprise the combined

competencies of Master Black Belt in Six Sigma AND Expert in Lean.

Refer to Annex A table A3 and Annex B table B3.


5. Adequacy of an organisation tony@servicesltd.co.uk

with regards to its Six Sigma, Lean or Lean & Six Sigma

approach and deployment

5.1 Adequacy of the organisation's Six Sigma, Lean or Lean & Six Sigma

strategy

5.2 Adequacy of the organisation's Six Sigma, Lean or Lean & Six Sigma

architecture

5.3 Adequacy of the competencies of the key personnel

5.4 Adequacy and continual improvement of organisational

deployment


6. Resource management

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6.1 Provision of resources

6.2 Ongoing monitoring of requirements

6.3 Key personnel

6.4 Maintaining competence of key personnel

6.4.1 Green Belts and Lean Practitioners

6.4.2 Black Belts and Lean Leaders

6.4.3 Master Black Belt and Lean Expert

6.5 Organisation

6.6 Maintaining competence of the organisation


6. Resource management

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The organisation shall define and identify key personnel.

6.1 Provision of resources

The organisation shall determine, provide and effectively use the

resources needed to:

a) support the Six Sigma, Lean or Lean & Six Sigma

implementation, i.e. sponsor(s) and / or champion(s);

b) deploy and maintain the Six Sigma, Lean or Lean & Six Sigma

implementation and continually improve its effectiveness; and

c) achieve their defined objectives.

Note. These resources can be internal or external to the

organisation.


6.2 Ongoing monitoring of

requirements

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The organisation shall, at regular defined intervals, review and adjust

appropriate resources for the Six Sigma, Lean or Lean & Six Sigma

measurement, analysis and improvement.

6.3 Key personnel

Key personnel shall:

a) demonstrate attainment against defined competencies and

objectives;

b) actively maintain and enhance their skills and competencies; and

c) actively maintain personal records of their training, skills,

competencies and experience.


6.4 Maintaining competence

of key personnel

6.4.1 Green Belts and Lean Practitioners

Green Belts and Lean Practitioners shall prepare and produce work experience logs. These logs form

the basis of status review and will usually be reviewed internally every year by a Black Belt or Master

Black Belt.

Status will be renewed subject to satisfactory evidence.

6.4.2 Black Belts and Lean Leaders

Black Belts and Lean Leaders shall prepare and produce work experience logs. These logs form the

basis of status review and will normally be:

a) reviewed internally every year; and

b) reviewed every three years by an appropriate authority.

Status will be renewed subject to satisfactory evidence.

6.4.3 Master Black Belt and Lean Expert

Master Black Belts and Lean Experts shall prepare work experience logs. These logs form the basis of

status review and will normally be reviewed every three years by an appropriate authority.

Status will be renewed subject to satisfactory evidence.

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6.5 Organisation

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The organisation shall plan and implement the monitoring,

measurement, analysis and improvement processes needed to:

a) demonstrate attainment of defined objectives and deployment

metrics;

b) ensure continued applicability of the approaches and / or plans of

action; and

c) enable organisational learning and continually improve the

effectiveness of the implementation.

This shall include determination of applicable methods, and

justification of these methods to the appropriate authority; to include

statistical techniques as appropriate, and the extent of their use.


6.6 Maintaining competence

of the organisation

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The competence of an organisation is to be reviewed every three

years by an appropriate authority.

Note. More frequent internal reviews are recommended.


The certification process &

how to apply

tony@servicesltd.co.uk

u

u

u

u

At this time October 2015, the ISO8404 standard is in the process of being

prepared for publication in December 2015

There is also an intention by the United Kingdom Accreditation Service,

UKAS, to bring forward a pilot accreditation project under a sector scheme

for this standard, so that the standard can go forward for Harmonised

European Accreditation, to ensure that identical accreditation rules would

be simultaneously established across Europe.

It is anticipated that other national accreditation bodies will follow this lead.

This accreditation is of the certification bodies that certify individuals and

inspect organisations against ISO18404, to ensure that they all interpret the

standard for certification in a similar way.


Individuals Applying for

tony@servicesltd.co.uk

Certification

u

u

u

u

Individuals applying for certification under the ISO18404 standard as Six

Sigma Green, Black or Master Black Belts - or the Lean equivalents – need

to apply to an accredited certification bodies, or initially one of the pilot

group of certification bodies in the pilot scheme, as these will be the first

to be accredited for ISO18404.

The choice of which particular certification body to apply to is up to the

applicant.

A certification body will ask the applicant to provide evidence that they

meet the required competencies, according to its own specification.

These requirements specified by the certification bodies are likely to be

different between certification bodies, but in each case have been

judged in the accreditation process to provide sufficient evidence of

competency.

The requirements will not just be to provide copies of certificates, but may

involve submission of a portfolio of evidence, project accounts,

interviews, an assessment centre etc.


Organisations Applying

tony@servicesltd.co.uk

for Certification

u Organisations applying for inspection & certification under the

ISO18404 standard as Six Sigma or Lean organisations need to apply

to an accredited certification bodies, or initially one of the pilot

group of certification bodies in the pilot scheme, as these will be the

first to be accredited for ISO18404.

u The choice of which particular certification body to apply to is up to

the applicant.

u The inspection & certification process is likely to an extent be similar

to ISO9001 certification, but with Six Sigma specific requirements.


Simultaneous certification possibility

for Lean and Six Sigma

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u Organisations are able under ISO18404 to be simultaneously

inspected for Lean and Six Sigma.

u In a similar way, individuals can be certificated simultaneously for

their Lean and Six Sigma competencies.

u In the case of simultaneous certification, certification levels are

instead called “Lean & Six Sigma Green Belt”, “Lean & Six Sigma

Black Belt “ and “Lean & Six Sigma Master Black Belt”.


Lean Competencies

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1. Understanding and communicating expected benefits of Lean.

u History of Lean.

u Applying the knowledge in practice.

2. Lean Principles

3. Stakeholder management.

u Communication skills.

u Change effects on individuals.

u Change at organisational level

4. Measurement of process performance.

5. Creativity thinking.

6. Visual management and control.


Lean Competencies

tony@servicesltd.co.uk

Continued

7. Workplace optimisation.

8. Team based problem solving.

9. Implementing Lean approaches.

10. Analysis of data.

11. Risk Analysis

12. Sustainment.

13. Managing productive time.

14. Workload planning.

15. Self-review and self-development.

16. Lean techniques.


16 Lean Competencies (with subdivisions) tony@servicesltd.co.uk


Simultaneous Certification

possibility for Lean & Six Sigma

tony@servicesltd.co.uk

Under ISO18404, there are three levels of practitioner in Lean & Six Sigma.

Lean & Six Sigma Green Belt

The competencies for this level of expertise comprise the combined

competencies of Green Belt in Six Sigma AND Lean Practitioner.

Lean & Six Sigma Black Belt

The competencies for this level of expertise comprise the combined

competencies of Black Belt in Six Sigma AND Lean Leader.

Lean & Six Sigma Master Black Belt

The competencies for this level of expertise comprise the combined

competencies of Master Black Belt in Six Sigma AND Lean Expert.


Building & maintaining your

portfolio of evidence

tony@servicesltd.co.uk

u If you wish to obtain certification as a Green, Black or Master Black

Belt under ISO18404, you will need to gather evidence and have it

available for the certification body.

u Ideally you set up a portfolio of evidence of application from the

start of your Green or Black Belt course, and remained rigorous

about posting all relevant documents and material, well presented

and labelled, within it.

u Following certification, the portfolio can become the basis for your

Work Experience Log, required for maintaining certification.


Content of Portfolio of

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Evidence

u In your Six Sigma training, the required content of the Portfolio of

Evidence has probably become clear.

u It includes the Project Charter (or equivalent) that defines the Lean

improvement project, as well as material from throughout the

DMAIC(T) process.

u This is very important to help support certification.


Specific certification body

requirements

tony@servicesltd.co.uk

u There are a very large number of accredited certification bodies for

standards such as ISO9001 and ISO14001, and the same may well

be true for ISO18404.

u As the pilot accreditation exercise takes place during 2016, the

certification bodies will work out their own individual take on the

evidence required, and the verification process required, to

establish individual Green, Black or Master Black Belt’ competences.


Practising in Your Role & Documenting

Your Application for Certification

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• You need to ensure and evidence an appropriate breadth

and depth of practice experience in order to document your

application for certification.

• As part of this, you need to ensure that you not only provide

evidence of practice in relation to understanding and

applying the required 23 Six Sigma competences in ISO18404,

but also, where appropriate, of managing and training these

competences.

• The requirements for this in ISO18404 for the three levels of Six

Sigma Belts are complex, and you should refer to the

standard for full details.

• The following slides provide a broad overview of

requirements.


GREEN BELT Competency Understanding Applying Managing Training

tony@servicesltd.co.uk

1 Organisational

benefits

identification and

prioritisation

X

X

2 Business process

improvement.

X

X

3 Change

management.

4 Data acquisition

for analysis.

X

X

X

X

5 Leadership

development in

self.

6 Leadership

development in

others.

7 Creativity

thinking.

X

X

X


tony@servicesltd.co.uk

GREEN BELT Competency Understanding Applying Managing Training

8 Customer focus. X X

9 Decision making. X

10 Interpersonal and

team leadership

skills.

X

X

11 Motivating others. X X

12 Numeracy. X X

13 Practical problem

solving

(opportunity

realisation).

X

X

14 Presentation and

reporting skills.

X

X

15 Process thinking

skills.

16 Project

management.

X

X

X


tony@servicesltd.co.uk

GREEN BELT Competency Understanding Applying Managing Training

17 Risk analysis. X X

18 Self-review and

development.

X

X

19 Six Sigma tools. X X

20 Stakeholder

management.

X

21 Statistical

concepts.

X

X

22 Statistical software

use

X

X

23 Sustainability and

control.

X

X


tony@servicesltd.co.uk

BLACK

BELT

Competency Understanding Applying Managing Training

1 Organisational

benefits

identification

and prioritisation

X X X

2 Business process

improvement.

X

X

3 Change

management.

4 Data acquisition

for analysis.

X X X

X

X

5 Leadership

development in

self.

X

X

6 Leadership

development in

others.

7 Creativity

thinking.

X X X

X X X


tony@servicesltd.co.uk

BLACK BELT Competency Understanding Applying Managing Training

8 Customer focus. X X X

9 Decision making. X X X

10 Interpersonal and

team leadership

skills.

X X X

11 Motivating others. X X X

12 Numeracy. X X X

13 Practical problem

solving

(opportunity

realisation).

X X X

14 Presentation and

reporting skills.

X X X

15 Process thinking

skills.

X X X


tony@servicesltd.co.uk

BLACK BELT Competency Understanding Applying Managing Training

16 Project

management.

X X X

17 Risk analysis. X X X

18 Self-review and

development.

X

X

19 Six Sigma tools. X X X

20 Stakeholder

management.

X

X

21 Statistical

concepts.

X X X

22 Statistical software

use

X

X

23 Sustainability and

control.

X X X


tony@servicesltd.co.uk

MASTER

BLACK

BELT

Competency Understanding Applying Managing Training

1 Organisational

benefits

identification

and prioritisation

X X X X

2 Business process

improvement.

X X X X

3 Change

management.

4 Data acquisition

for analysis.

X X X X

X

X

5 Leadership

development in

self.

6 Leadership

development in

others.

7 Creativity

thinking.

X X X X

X X X X

X X X X


tony@servicesltd.co.uk

MASTER

BLACK BELT

Competency Understanding Applying Managing Training

8 Customer focus. X X X X

9 Decision making. X X X X

10 Interpersonal and

team leadership

skills.

X X X X

11 Motivating others. X X

12 Numeracy. X X X X

13 Practical problem

solving (opportunity

realisation).

X X X X

14 Presentation and

reporting skills.

X X X X

15 Process thinking skills. X X X X


tony@servicesltd.co.uk

MASTER BLACK

BELT

Competency Understanding Applying Managing Training

16 Project

management.

X X X X

17 Risk analysis. X X X X

18 Self-review and

X

development.

19 Six Sigma tools. X X X

20 Stakeholder

management.

X X X X

21 Statistical concepts. X X X

22 Statistical software

use

23 Sustainability and

control.

X X X

X X X


How Services Limited

tony@servicesltd.co.uk

Can Help

u Integrally involved with ISO18404

u Highly experienced & Expert Six Sigma & Lean Trainers & Consultants

u Green Belts

u Black Belts

u Master Black Belts

u Six Sigma Directors, Sponsors & Champions

u Lean Practioners, Leaders & Experts

u EFQM Licensed Trainers& Advisers

u Change Management


tony@servicesltd.co.uk Section C

What to do if you have already been Six

Sigma trained or have a company program

in place, and would like ISO18404

certification


Taking Stock if you have already

been Six Sigma trained and would

like ISO18404 certification

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u Identify & Compare Your Competences to Role levels

u Consider available evidence

u Do not necessarily need to have passed a “certified” course

u Plan closing the gaps & evidencing*

u Training/Activities/Projects

u Documenting

u Approaching a Certification Body


What to do if you already have a

company program in place, and

would like ISO18404 certification

tony@servicesltd.co.uk

u Take Stock

u Systems/Infrastructure/Staff Competencies

u Plan closing the gaps & evidencing*

u Building a System/Training/Audit

u Documenting

u Approaching a Certification Body


Implementation Plans

tony@servicesltd.co.uk Section D


Starting to Develop Your Own

Organisational Development Plan

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u Where Are We Now?

u Where Do We Want To Be?

u When?

u How Do We Get there?


How Services Limited

tony@servicesltd.co.uk

Can Help

u Integrally involved with ISO18404

u Highly experienced & Expert Six Sigma & Lean Trainers & Consultants

u Green Belts

u Black Belts

u Master Black Belts

u Six Sigma Directors, Sponsors & Champions

u Lean Practioners, Leaders & Experts

u EFQM Licensed Trainers& Advisers

u Change Management


Questions

tony@servicesltd.co.uk


Questions … &… Debate?

tony@servicesltd.co.uk

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