Malcolm Baldrige National Quality Award - Download as PowerPoint

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					      Baldrige National Quality Program   2010




    Baldrige
National Quality
   Program

    The Path to Excellence and
    Some Path-Building Tools
                                       Baldrige National Quality Program             2010


        The Baldrige Framework
        “The Baldrige Award enjoys very broad, positive recognition among
        leaders in each of the Baldrige Award-eligible sectors. . . . More than 70
        percent of leaders surveyed among Fortune 1000 companies said they
        are likely to use the Criteria for Performance Excellence.”

        Booz Allen Hamilton


Results from using the
Criteria:
• Better employee relations
• Higher productivity
• Greater customer loyalty
• Increased market share
• Improved profitability
                 Baldrige National Quality Program      2010

Six Sigma
                     Six Sigma concentrates on variation
                     reduction by using statistical
                     methods to lower process defect
                     rates to less than 3.4 defects per million
                     opportunities.




      Six Sigma Methodologies:
      • DMAIC - define, measure, analyze, improve,
        and control
      • DMADV - define, measure, analyze, design,
        and verify
                                    Baldrige National Quality Program            2010


          Lean is focused on the elimination of all nonvalue-adding
          activities and waste from an organization’s processes.

                                                   Map and
                                                  understand
Waste includes                                   value stream
• Scrap
• Rework                                 Goals:
• Inspection              Customer-      • Increase productivity
• Inventory              defined value   • Eliminate waste         Make value
                                         • Maximize resource       stream flow
• Queuing time
                                           utilization
• Transporting materials
  or products                                   Continuous
• Redundant motion                               process
• Anything for which a                         improvement

  final customer would
  not want to pay
                           Baldrige National Quality Program              2010

ISO 9001: 2008
A standards-based approach to managing an organization’s processes
to consistently deliver products that meet customer requirements. The
approach is based on registering a quality management system that
complies with the standard.

                      • Take action to                         • Set objectives and
                        improve                                  processes to deliver
                                                                 products that meet
                                                                 customer
                                                                 requirements


 Quality                                    ACT     PLAN
Management
  System

                                            CHECK   DO

                      • Monitor / measure                      • Implement
                        processes and                            processes
                        products against
                        objectives and
                        requirements
                           Baldrige National Quality Program   2010

 The Baldrige Criteria
 The Criteria for Performance Excellence emphasize
     • Continuous performance improvement
     • Innovation
     • Integration
     • Results
     • Sustainability
The Criteria for Performance
Excellence focus on common
requirements and are
    • Nonprescriptive
    • Holistic
    • Inclusive
    • Adaptable
    • Integrative
                        Baldrige National Quality Program   2010
The Baldrige Criteria, Six Sigma, and Lean are complementary, not
mutually exclusive. Many organizations use Baldrige to develop an
overall performance map to identify areas that need improvement,
and then they may use one or more of these tools to design
operations or improve processes within the organization.
                                .
                    Baldrige National Quality Program   2010
Six Sigma and Lean
How they relate to the seven Baldrige Criteria
Categories
                        Baldrige National Quality Program   2010


  The Leadership Category

Baldrige, Six Sigma, and Lean all benefit from
leaders who
• Align financial and human resources
• Communicate cultural norms
• Encourage and provide resources
• Solidify a culture of organizational excellence

Only Baldrige addresses the overall leadership
system.
                       Baldrige National Quality Program   2010

Strategic Planning Category
• Six Sigma and Lean can be methodologies for
  coordinating resource use toward organizational objectives
  identified using the Baldrige Criteria.
• Six Sigma provides tools for measuring progress.
                                   Baldrige National Quality Program                                                                                                                                                                    2010

        Customer Focus Category

                                                               Quantification of
                      Customer-                                customer needs is the key.
                     defined value

                                                                         Satisfaction Determination
Lean environments aim             Map and
                                  understand                                      Percent Satisfaction with Product, Service Attributes




for all process steps to
                                  value stream                                            100




                                                                                                                                                                                                                  On Time Delivery
                                                                • Performance              80




                                                                                                                                                                                                        1 00




                                                                  measures, and

be something for
                                                                                           60




                                                                                                                                                                                                        9 9




                                                                  analyses




                                                                                                                                                                                           % On mTime
                                                                                           40




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                                                                                                                                                                             ICE
                                                                                              ITY




                                                                                                                                               rs




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                                                                                                                                                                BA




                                                                                                                                                                                                                  BA
                                                 Make value




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                                                                                            AL




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                                                                                          QU




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                                                                                                                                    All




                                                                                                                                                                                     All
                                                                                                                 Non-egg Supplier
                                                                                                                                                                                                        9 7




which the customer is
                                                 stream flow                       2001         2002                                    2003             2004   2005                 BAR 2002
                                                                • Use feedback                                   Claims
                                                                                                                                                                                     BAR 2003
                                                                                                                                                                                                        9 6




                                                                  and analyses
                                                                                                                                                                                                        9 5




                                                                                                                                                                                                                  '01     '02         '03   '04      '05    '06 YTD




                                                                                                 C om pla ints pe r M illion
                                 Continuous
willing to pay.
                                                                                                                                                     3




                                                                                                                               P ounds P roduc e d
                                                                  to improve                                                                                                                                                SFF OTD               BAR OTD

                                 process                                                                                                             2




                                 improvement                                                                                                         1




                                                                                                                                                     0




                                                                                                                                                                                                              .
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                                                                                                                                                            '0 1       '0 2        '0 3           '0 4             '0 5   '0 6 Y TD




              In Baldrige and Six Sigma, the voice of the
              customer is used to identify areas of needed
              improvement.
                       Baldrige National Quality Program   2010


       Measurement, Analysis, and
      Knowledge Management Category
Six Sigma is data-                       Lean measures, analyzes,
driven:                                  and reduces
• specific metrics                       • wait time
• data collection                        • inventory
• data analysis                          • batches
• control data                           • process time
                                         • rework
Baldrige measures
and improves                             ISO 9001 monitors and
processes, business                      measures process
results, and overall                     performance.
organizational
performance.
                           Baldrige National Quality Program   2010

Workforce Focus Category
    100              Employee Engagement
     95
     90                                       85.6
     85
                                      79.9
     80
     75
                           70.2
     70
     65
                  59.6
     60   56.7
     55
     50
          2005    2006      2007      2008    2009




Six Sigma, Lean, and ISO 9001 methodologies require
• Leadership development
• Training
• Compensation alignment
• Culture shift
                                              Baldrige National Quality Program                  2010
       Process Management Category
       Six Sigma, Lean, or ISO 9001 methodologies are used to
       • Generate standard operating procedures
       • Set specification and control limits
       • Identify explicit corrective actions
       • Optimize processes

                                  2 .2




                                2 .1 5




                                  2 .1
                                                                   Cpk=1.25         Cpk= 4.42

                                2 .0 5




                                    2




                                1 .9 5




                                  1 .9




                                1 .8 5




                                         02                             03                '05
                                 n'                                n'                 r
                               Ja                                Ja                Ma
                                         Process Avg   Spec Target            UCL
                                         LCL           Upper Spec Limit       Lower Spec Limit




Baldrige processes are interrelated and
interdependent steps along the path to customer
engagement and organizational sustainability.
                                                      Baldrige National Quality Program     2010

   Results Category
Six Sigma, Lean, and ISO 9001 are data-driven and results-oriented. Their
use leads to tracking systems (control charts, scorecards, rolled
throughput yield charts, etc.) and results monitoring in functional business
areas where the methodologies are applied.

  Results: Drop-Out Rates
                 Drop-Out Rate

7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
        1999   2000   2001   2002   2003   2004
                      School Year




                                                  Baldrige addresses all results—process,
                                                  leadership, product, customer, financial, and
                                                  workforce.
                                   Baldrige National Quality Program    2010
           Summary




The Baldrige Criteria focus on business results and organizational improvement
and innovation systems. Six Sigma and Lean methodologies drive waste and
inefficiencies out of processes that users of the Baldrige Criteria identify for
improvement. Six Sigma, Lean, and ISO 9001 focus on organizational
improvement and innovation processes.
                      Baldrige National Quality Program   2010


    Resources for More Information

   Most Baldrige National Quality Program
    (BNQP) documents are available in printed
    form and on the BNQP Web site.

   To obtain these documents, call
    (301) 975-2036, send e-mail to
    baldrige@nist.gov, or visit the Web site
    www.nist.gov/baldrige.

				
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