Baldrige National Quality Program 2009 Baldrige National Quality Program The Path to Excellence and Some Path-Building Tools Baldrige National Quality Program

2009 “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: Better employee relations Higher productivity Greater customer loyalty Increased market share Improved profitability The Baldrige Framework

Baldrige National Quality Program 2009 Customer- defined value Map and understand value stream Make value stream flow Continuous process improvement Goals: Increase productivity Eliminate waste Maximize resource utilization Waste includes Scrap Rework Inspection Inventory Queuing time Transporting materials or products Redundant motion Anything for which a final customer would not want to pay Lean is focused on the elimination of all nonvalue-adding activities and waste from an organization’s processes.

Baldrige National Quality Program 2009 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 Six Sigma

Baldrige National Quality Program 2009 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 The Baldrige Criteria

Baldrige National Quality Program 2009 The Baldrige Criteria, Lean, and Six Sigma are complementary, not mutually exclusive. Many organizations use Baldrige to develop an overall performance map to identify areas that need improvement, and then they use Six Sigma, Lean, or both tools to design operations or improve processes within the organization..

Baldrige National Quality Program 2009 Six Sigma and Lean How they relate to the seven Baldrige Criteria Categories

Baldrige National Quality Program 2009 The Leadership Category Baldrige, Lean, and Six Sigma 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 2009 Strategic Planning Category Lean and Six Sigma 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 2009 Customer Focus Category Lean environments aim for all process steps to be something for which the customer is willing to pay. In Baldrige and Six Sigma, the voice of the customer is used to identify areas of needed improvement. Customer- defined value Quantification of customer needs is the key. Map and understand value stream Make value stream flow Continuous process improvement

Baldrige National Quality Program 2009 Measurement, Analysis, and Knowledge Management Category Six Sigma is data- driven: specific metrics data collection data analysis control data Baldrige measures and improves processes, business results, and overall organizational performance. Lean measures, analyzes, and reduces waiting time inventory batches process time rework

Baldrige National Quality Program 2009 Workforce Focus Category Six Sigma and Lean methodologies require Leadership development Training Compensation alignment Culture shift Employee Engagement

Baldrige National Quality Program 2009 Process Management Category Baldrige processes are interrelated and interdependent steps along the path to customer engagement and organizational sustainability. Lean or Six Sigma methodologies are used to Generate standard operating procedures Set specification and control limits Identify explicit corrective actions Optimize processes

Baldrige National Quality Program 2009 Results Category Six Sigma and Lean 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. Baldrige addresses all results—process, leadership, product, customer, financial, and workforce.

Baldrige National Quality Program 2009 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 and Lean focus on organizational improvement and innovation processes. Summary

Baldrige National Quality Program 2009 Resources for More Information l Most Baldrige National Quality Program (BNQP) documents are available in printed form and on the BNQP Web site. l To obtain these documents, call (301) , send to or visit the Web site