ISO 18404

Quantitative methods in process improvement - Six Sigma -: Competencies for key personnel and their organizations in relation to Six Sigma and Lean implementation.

ISO 18404 is an international or global management system standard, which offers a recognised route for certification for both Six Sigma and Lean, and Lean & Six Sigma combined. The British Standards Institute (BSI), the national standards body of the United Kingdom, led the technical development and publication of this standard. ISO 18404 provides the competency based framework that both organisations and individuals can be assessed and certified by. These competencies are based on core abilities expected for current industry accepted roles and levels. Certification is achieved through assessment against the Royal Statistical Society’s Sector Scheme (RSS 18404). Certification for organisations is based on their management system for undertaking Six Sigma or Lean methodologies.

The Standard and Scheme covers the requirements for:

Six Sigma: Green Belts, Black Belts and Master Black Belts;
Lean: Practitioners, Leaders and Experts;
As well as, combined Lean & Six Sigma competencies.

ISO 18404 is intended for use across business sectors; such as, manufacturing, finance, construction, health care, utilities and public services. The standard aim is to provide a single international defined framework of competencies that all groups can use to ensure they provide high quality services with high competent employees. To achieve this, the standard provides in detailed tables with the level of competencies required at each level: These are published in the Standard’s Annexes.

Standard Content:

Foreword

Introduction

Scope
Normative references
Terms and definitions
Competency of key Six Sigma, Lean, and Lean & Six Sigma personnel
Adequacy of an organisation with regards to its Six Sigma, Lean or Lean & Six Sigma approach and deployment
Resource management

Annex A – Six Sigma

Annex B – Lean

Annex C – Lean & Six Sigma

Standards Group

ISO 18404 is part of the Lean Six Sigma group of standards designed to improve processes, reduce waste and enhance customer satisfaction. These are: Lean Six Sigma methodology (ISO 13053-1:2011); Lean Six Sigma tools and techniques (ISO 13053-2:2011); and appropriate competencies for key personnel and their organizations (ISO 18404). Both parts of ISO 13053 provide important components to building the overall competencies in ISO 18404.

The Lean Six Sigma group of standards continue to develop: with the recent BSI publication BS 8624 Continual improvement – Methods for quantification – Guide; and revisions to 13053-1 under way and 13053-2 planned. In addition, ISO provide a wide portfolio of management systems standards that compliment and underpin this group; such as ISO 9001, ISO 14001 and ISO 45001.

The Need for a Standard and Certification Scheme (ISO 18404 and RSS 18404)

Lean Six Sigma has become a big and lucrative process improvement, training and certification market. Although developed for a sector, it is now being applied and adjusted to meet all. Certification of practitioners has been left to many providers and consultancies, with a number linked to credible origins and establishments. However, Lean Six Sigma’s global use is unregulated with cases of abuse. Recent years have seen a move to rapid e-learning certified training, some offering Master Black Belt within 22 hours. The problem is there was no real internationally recognised standards for certification, which are certified by a global respected charted professional body. ISO 18404 development was focused to address these concerns. Use of the standard on an international basis can standardise variations in competencies across the improvement profession.

There are still numerous interpretations and differing explanations of Lean, Six Sigma, and Lean Six Sigma, which have formed varied international standards and certifications. ISO 18404 was specifically designed to resolve these variations and define the core competencies around Six Sigma and Lean; while providing a structure that meets with most organisation’s improvement and business definitions and practices. Adoption of the standard can help to stamp out bad practices and misuse of these qualifications, which has created variation and poor quality applications across the profession. If you were to advertise for a Six Sigma Black Belt and a candidate appears purporting to be one, how do you know? Likewise, if an organisation says it is deploying Six Sigma or perhaps Lean, how can you be sure of its quality? A fundamental purpose of this standard is to answers such questions.

In addition; there has been, and will be, considerable amount of debate on the nature of Six Sigma and Lean; their commonality and their differences. Often blurring concepts and principles has helped to gain a competitive advantage. Therefore, this standard sets out to separate competency requirements for Six Sigma and Lean. Also, it sets out a combined competency framework for ‘Lean & Six Sigma’. In doing so, it focuses on the skills and abilities (competencies) to deliver benefits to an organisation rather than defining the specific educational level required for each role. All candidates for certification must be assessed against the RSS 18404 Sector Scheme. Candidates are expected to demonstrate that they have an adequate level of competence from an amalgamation of education, training, skills and experience that are necessary to fulfil their roles at each level.

Levels

ISO 18404 defines the requirements for the attainment of specific levels of competency with regards to Six Sigma, Lean, and Lean & Six Sigma in their organisations and individuals. The levels covered are: Green Belt and Lean Practitioners; Black Belt and Lean Leader; Master Black Belt and Lean Expert.

Yellow Belt is not covered in ISO 18404, although may be considered as part of the revision (second edition). Also, the standard excludes Design for Six Sigma.

Authors and ownership

The International Standards Organization (ISO) is a worldwide federation of national standards bodies (ISO member bodies). The work of preparing International Standards is normally carried out through ISO technical committees. The work is a collaboration from international organizations, governmental and non-governmental bodies.
The British Standards Institute (BSI) is a core partner with ISO. BSI is the national standards body of the United Kingdom and a globally recognised leader, which underpinned through its prestigious Royal Charter. BSI led the technical development of ISO 18404 through its MS/6 Technical Committee: Methodologies for business process improvement using statistical methods.
The Royal Statistical Society (RSS) is the owner of the Sector Scheme, called RSS 18404. It is responsible for its overall operations, maintenance of the Scheme, and the qualification and monitoring of the participating certification bodies. Organisations in the UK can be certified against ISO 18404 through the RSS 18404 Scheme. The Scheme is the only way organisations and individuals can be certified against ISO 18404 in the UK. Thus the Scheme provides a level of assurance on the skills of certified Six Sigma and Lean professionals and on organisational level best practices, which were not previously available.

Organisations can be certified to ISO 18404 through RSS 18404 by the participating certification bodies based on their implementation of the management system elements of the standard and a demonstration that the system they have in place has been applied to all people for which they claim competence. Individuals within the organisation must have a recognition of competence from an approved body or RSS for the higher levels. Green Belts or Lean Practitioners can receive recognition of competence from their organisation, if it is itself certified.

In collaboration with the participating certification bodies, the RSS maintain a unified register of all assessed competent personnel, whether assessed by them or by the certified organisations. Also, the RSS maintain a list of approved courses, with associated approval process. Participating certification bodies and approved training providers can be issued with guidance on the use of the RSS logo and other material.

Duration of Organisational Assessment

The duration in days of the total initial assessment can range from 1 to 12 days, depending on the numbers of employees involved and the number directly influenced by the change activities by Six Sigma and Lean. For example, an organisation with 100 employees, four of which were Six Sigma qualified should require a two-day initial assessment.

If done in conjunction with an ISO 9001 assessment, annual surveillance and reassessments audit durations can be reduced by 30%. This is because an ISO 9001 compliant system would already cover much of the system requirements in RSS 18404. However, time would be required to establish that the system had been effective in reviewing the competence of each Lean and Six Sigma qualified person. Note: Initial assessments may not be done in conjunction with any other assessments.

Requirement for Certification

You need to ensure and evidence an appropriate breadth and depth of practical experience in order to provide documentation for your application for certification.
As part of the evidence, you need to provide evidence of practice in relation to understanding and applying the required 23 Six Sigma and / or 18 Lean competences.
Also, where appropriate, provide evidence of managing and training with these competences.
The standard holds full details how these requirements for Six Sigma and Lean are defined for the core three levels: Six Sigma Green Belts, Black Belts & Master Black Belts; and Lean Practitioners, Leaders & Experts.

Overview of the Competences

Six Sigma

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.
Interpersonal and team leadership skills.
Motivating others.
Numeracy.
Practical problem solving (opportunity realisation).
Presentation and reporting skills.
Process thinking skills.
Project management.
Risk analysis.
Self-review and development.
Six Sigma tools.
Stakeholder management.
Statistical concepts.
Statistical software use.
Sustainability and control.

Lean

Understanding benefits of Lean.
1. Applying the knowledge in practice.
Lean Principles.
Stakeholder management.
1. Communication skills.
2. Change effects on individuals.
3. Change at organisational level.
Measurement of process performance.
Creativity thinking.
Visual management and control.
Workplace optimisation.
Team based process improvement / problem solving.
Implementing Lean approaches.
Analysis of data.
Risk Analysis.
Sustainment.
Motivating others.
Managing productive time.
Workload planning.
Self-review and self-development.
Lean techniques.
Presentation & reporting skills.

Lean & Six Sigma Certification

Simultaneous certification is possible for Lean & Six Sigma. Under ISO 18404, there are three levels of practitioner in Lean & Six Sigma.

Green Belts and Lean Practitioners
1. The competencies for this level of expertise comprise the combined competencies of Green Belt in Six Sigma AND Lean Practitioner.
Black Belts and Lean Leaders
1. The competencies for this level of expertise comprise the combined competencies of Black Belt in Six Sigma AND Lean Leader.
Master Black Belt and Lean Expert
1. The competencies for this level of expertise comprise the combined competencies of Master Black Belt in Six Sigma AND Lean Expert.

Lean & Six Sigma - Yellow Belt: are currently not covered by ISO 18404, but may be included in the upcoming revision.

How to Become Certified

Both organisations and individual Lean and Six Sigma professionals can be certified under ISO 18404 based on the Royal Statistical Society UK’s official certification Scheme (RSS 18404). This is currently being evaluated by the United Kingdom Accreditation Service (UKAS) as the basis for accredited certification. Organisational certification of the organisation’s management system for Lean and/or Six Sigma implementation is similar in nature to all management system certification under ISO standards, such as for ISO 9001, ISO 14001 and ISO 45001. Certification is on a three year cycle, with annual surveillance. Certification should be undertaken only by an accredited certification body which is participating in the Scheme. Currently, BSI is leading as the pilot certification body for this, but ultimately certification will be possible by any certification body that has signed up for the Scheme and is appropriately accredited by an IAF member accreditation body. Whilst certification might be offered by other bodies, this will not have the same levels of recognition or rigour.

The certification bodies participating in the Scheme have certain obligations and necessary requirements, particularly in reporting. Lead Auditors must have undergone additional specialist training provided by the Royal Statistical Society. Certification of an organisation under ISO 18404 requires prior certification of some key employees as Lean and/or Six Sigma professionals by the Royal Statistical Society, its overseas designated partners or, to a limited extent, approved training organisations under the Scheme. Such certification is available to candidates whether or not they are from a certified organisation, but the typical three year duration of certification is reduced to one year if they are not from an already ISO 18404 certified organisation. Such individual certification is entirely based on assessment of competence, as this is the defined basis for qualification contained in ISO 18404. Competences are assessed through submission of a portfolio of evidence of practice based on the competency requirements in the Annexes to ISO 18404. In addition, candidates attend an actual, or live virtual, assessment centre at which they present, are interviewed in detail and undertake a written test.

Whilst alleged certification for individuals against ISO 18404 requirements has been offered by some other bodies, this is specifically not recognised under the Scheme and in some cases is exam based, in conflict with the competency requirements defined in ISO 18404 itself. Certified organisations under the Scheme can themselves certify their own Green Belts and Lean Practitioners, the lowest of the three levels of Lean and Six Sigma professionals in ISO 18404. These are certified on a one year cycle. Similarly, annual surveillance of the middle level of professionals, Black Belts and Lean Leaders, is also carried out by the certified organisation.

History

Draft ISO/DIS 18404:2014(E): 2014-12-10

ISO Member Consultation Open: 2014-12-10
ISO Member Consultation Closed: 2015-02-10
ISO Public Consultation Closed: 2015-03-12
First edition of ISO 18404:2015(E) published: 2015-12-01
Second edition of ISO 18404 is planned.

Applications / Case Studies

Gilbert & Goode Construction, Cornwall: Construction Training Group and Acorn Blue. http://www.gilbertandgoode.co.uk/home.php

Dubai Electricity and Water Authority (DEWA); the first government entity worldwide to achieve ISO 18404. https://www.dewa.gov.ae/en/about-us/media-publications/latest-news/2019/07/dewa-is-the-first-government-organisation

Relationship to other ISO / BS standards

The following referenced documents are essential for the application of ISO 18404.

ISO 13053-1, Quantitative methods in process improvement – Six Sigma – Part 1: DMAIC methodology.
ISO 13053-2, Quantitative methods in process improvement – Six Sigma – Part 2: Tools and techniques.
ISO 9001:2015, sets out the criteria for a quality management system, whose certification is linked to ISO 18404.
ISO 14001:2015, Environmental management Systems (EMS).
BS 8624. Continual improvement - Methods for quantification

Other Associated Standards

For dated references, only the edition cited applies. For undated references, the latest edition of the referenced document (including any amendments) applies.

BS 5700, Guide to the selection of charting methods and capability assessment for use in statistical process control
BS EN ISO 9001, Quality management systems – Requirements
BS EN ISO 13485, Medical devices – Quality management systems – Requirements for regulatory purposes
BS EN ISO 14001, Environmental management systems – Requirements with guidance for use
BS EN ISO/IEC 27001, Information technology – Security techniques – Information security management systems – Requirements
ISO 22514-5, Statistical methods in process management – Capability and performance – Part 5: Process capability estimates and performance for attributive characteristics
ISO 45001, Occupational health and safety management systems – Requirements with guidance for use

Notes

Six Sigma (a trade mark of Motorola, Inc.)

External Links

https://www.iso.org/

https://www.bsigroup.com/

https://rss.org.uk/