1. Brisbane Rotary 06.04.09 The Development and Use of Lean Six Sigma Competencies Presentation to Brisbane Rotary 6 th April, 2009 Mario Pennisi FAOQ, MJ Ahern Medallist Former Chairman AOQ-QLD™* The Development and Use of Lean Six Sigma Competencies mario@aoq.org.aumario@aoq.org.au or mariopen@worldconferencesystems.commariopen@worldconferencesystems.com * Australian Organisation for Quality-Queensland-Inc Australian Organisation for Quality (Queensland) Inc

2. Brisbane Rotary 06.04.09 The Development and Use of Lean Six Sigma Competencies Who is the AOQ-QLD™? What is Lean Six Sigma? How Did it all Begin? So What to do? The Standardisation Process Scheme Committee Six Sigma Competencies Where are the Competencies? What will I cover ?

3. Brisbane Rotary 06.04.09 The Development and Use of Lean Six Sigma Competencies Uses –Trainee –Potential Employer –Training Provider Lean Six Sigma Accreditation Register When Will Registered Training Begin? Summary What will I cover ?

4. Brisbane Rotary 06.04.09 The Development and Use of Lean Six Sigma Competencies Who is AOQ-QLD™? AOQ-QLD™ is the Australian Organisation for Quality-Queensland Inc A not-for-profit member based organisation to provide the business community with knowledge, expertise and assistance with integrating their management systems ("top down") including the legal requirements of governance and ethics, the regulated systems eg WHS and environmental as well as quality, risk, knowledge, energyconservation, continuity and compliance, so as to improve their bottom line.

5. Brisbane Rotary 06.04.09 The Development and Use of Lean Six Sigma Competencies Who is AOQ-QLD™? Provides networking opportunities Groupings by Regions Grouping by Interest-Divisions (7 off) Specialist Registers for Systems Auditors, Six Sigma Professionals, Energy Conservation Auditors Conferences Australia wide Training Australia wide eZine – Progressing Business Co-ordinate many of our activities with relevant University Schools and Departments, UQ, QUT, Griffith, Monash

6. Brisbane Rotary 06.04.09 The Development and Use of Lean Six Sigma Competencies Lean Six Sigma? Six Sigma is a tool for improving the profitability of business by aiming to reduce defects to 3.4 per 1,000,000 occurrences, project by project (SPC). The tool is DMAIC, Define, Measure, Analyse, Improve, Control. Six Sigma designates professionals by belts, eg White, Yellow, Green, Black and Master Black.

7. Brisbane Rotary 06.04.09 The Development and Use of Lean Six Sigma Competencies Lean Six Sigma? Lean is the elimination of waste, based on 5S (Sort, Straighten, Shine, Standardise & Sustain).

8. Brisbane Rotary 06.04.09 The Development and Use of Lean Six Sigma Competencies Competencies-How Did it all Begin? 2005: Training Project –Over many years the Australian Organisation for Quality (AOQ), through its consulting services arm, has been asked to source training providers for employers in need of training in Lean Six Sigma. –Training and competency of Lean Sigma experts varies considerably across Australia. 2006: Formation of Six Sigma Division 2007: The Six Sigma Division decided to champion and facilitate the derivation of an appropriate set of international competencies for assessment to Black, Green and Yellow belts.

9. Brisbane Rotary 06.04.09 The Development and Use of Lean Six Sigma Competencies Standardisation Process ? RABQSA has a standard process for developing and registering competencies: Need, Facilitation by RABQSA, Scheme Committee – developed by AOQ-QLD™, Facilitated Meeting to agree on Competencies and Measures, Review Period – total of about 6 weeks, Registration & launch to RABQSA Web Site, Feedback welcomed

10. Brisbane Rotary 06.04.09 The Development and Use of Lean Six Sigma Competencies Standardisation Process ? Scheme Committee is to assist RABQSA in four key areas: key stakeholder engagement; ongoing review of scheme requirements; advice on RABQSA policies and procedures; and independent review of Complaints and Appeals.

11. Brisbane Rotary 06.04.09 The Development and Use of Lean Six Sigma Competencies Standardisation Process ? The role of each Sub-Scheme Committee is to: provide key stakeholder engagement; develop certification requirements for a specific scheme or schemes; identify requirements for maintenance of certification; provide advice on methods for examination of defined competencies; and provide validation of certification requirements to ensure ongoing relevance to industry.

12. Brisbane Rotary 06.04.09 The Development and Use of Lean Six Sigma Competencies Standardisation Process ? Six Sigma Scheme committee that was developed consisted of: AOQ-QLD™ as Champion Facilitator - RABQSA AOQ-QLD™ Six Sigma Division Minitab NAB Quality-Associates International South East Pragmatic Improvement SAI Global Segla SGS Snowden Group Refer http://www.rabqsa.com/docs/downloads/ISD01.pdf.http://www.rabqsa.com/docs/downloads/ISD01.pdf

13. Brisbane Rotary 06.04.09 The Development and Use of Lean Six Sigma Competencies ASQ – American Society for Quality has a Body of Knowledge, which provides some assessment for competency. A participant can develop a project to be reviewed by an ASQ committee and then can sit the (multiple choice) examinations to obtain a Black belt, for example. This could follow a training period and possibly an RPL (Recognition of Prior Learning) process to reduce the training cost. Six Sigma Competencies-Introduction

14. Brisbane Rotary 06.04.09 The Development and Use of Lean Six Sigma Competencies What are Competencies? A competency is the minimum capability that a competent person can perform, either –Competent, or –Not yet Competent This may not be sufficient for some employers.

15. Brisbane Rotary 06.04.09 The Development and Use of Lean Six Sigma Competencies What is the Format and Why? The competencies are laid out as follows: CompetencyPerformance CriteriaEvidence Guide

16. Brisbane Rotary 06.04.09 The Development and Use of Lean Six Sigma Competencies An Example of Yellow Belt Performance Criteria 1.1: Describe why Six Sigma is an important tool for business: Philosophy of six sigma Origins of six sigma 1.2: Explain Organizational drivers and metrics: Identify key drivers for business 1.3: Describe the importance of utilizing organizational goals: Project selection Evidence Guide Demonstrate the impact that six sigma has on businesses operations. Demonstrate knowledge of the origins of Six Sigma, including: Motorola GE Statistical Origin Identify KPIs that are important for an organization in order to measure its progress against strategic objectives: Profit Customer satisfaction Market share Efficiency Product differentiation Demonstrate knowledge of the project selection process and when to apply DMAIC (Define, Measure, Analyze, Improve, Control) as opposed to other problem solving tools. Identify organizational goals as they relate to the project selection process. Comp 1 Describe the Value of Lean Six Sigma

17. Brisbane Rotary 06.04.09 The Development and Use of Lean Six Sigma Competencies An Example of Yellow Belt Comp 1:Describe the Value of Lean Six Sigma

18. Brisbane Rotary 06.04.09 The Development and Use of Lean Six Sigma Competencies How Many Competencies Are There? Yellow Belt Seven (7) competencies. Green Belt Seven (7) competencies. Black Belt Nine (9) competencies. The competencies build on each other (so a Black Belt has 23 competencies).

19. Brisbane Rotary 06.04.09 The Development and Use of Lean Six Sigma Competencies Where are the Competencies? The competencies are available at: Yellow Belt www.rabqsa.com/docs/downloads/TCD67.pdf Green Belt www.rabqsa.com/docs/downloads/TCD69.pdf Black Belt http://www.rabqsa.com/docs/downloads/TCD68.pdf Can be linked from www.aoq.org.au/six-sigma.htm

20. Brisbane Rotary 06.04.09 The Development and Use of Lean Six Sigma Competencies Use for Minimum Competencies? From Trainee –Comparison among individuals –Comparison of Course provided –Basis for RPL to reduce training costs From Potential Employer –Discriminate between Applicants –Determine what in-house training might be required –Discriminate between Providers –Basis for RPL to reduce training costs From Training Provider –Basis for Developing Training Programs –Basis for RPL to reduce training costs –Basis for Benchmarking training programs

21. Brisbane Rotary 06.04.09 The Development and Use of Lean Six Sigma Competencies Lean Six Sigma Accreditation Register AOQ-QLD™ Registers Systems Auditors QMS and EMS Energy Conservation Auditors Consultants Trainers Lean Six Sigma Practitioners, Yellow, Green, Black and Master Black Belt Details are at: www.aoq.org.au/registers.htm www.aoq.org.au/registers.htm

22. Brisbane Rotary 06.04.09 The Development and Use of Lean Six Sigma Competencies When Will Training to the Competencies Begin? Non-Registered Training Registered Training –Market forces

23. Brisbane Rotary 06.04.09 The Development and Use of Lean Six Sigma Competencies Summary AOQ-QLD™ through its Six Sigma Division has championed the development of a set of Six Sigma competencies and had them registered internationally by RABQSA. The competencies are the minimum standards that any person should aspire to for each of the recognised belts, ie Yellow, Green and Black. Training to the competencies is a requirement for registration on the Lean Six Sigma Accreditation Register.

24. Brisbane Rotary 06.04.09 The Development and Use of Lean Six Sigma Competencies What Did I Cover ? Who is the AOQ-QLD™? What is Lean Six Sigma? How Did it all Begin? So What to do? The Standardisation Process Scheme Committee Six Sigma Competencies Where are the Competencies?

25. Brisbane Rotary 06.04.09 The Development and Use of Lean Six Sigma Competencies What Did I Cover ? Uses –Trainee –Potential Employer –Training Provider Lean Six Sigma Accreditation Register When Will Registered Training Begin? Summary

26. Brisbane Rotary 06.04.09 The Development and Use of Lean Six Sigma Competencies Thank you for your attention! Contact Information: mario@aoq.org.au Questions ?