The Path to Excellence and Some Path-Building Tools

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The Path to Excellence and Some Path-Building
Tools
Baldrige Performance Excellence Program
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Baldrige Framework

• Better employee relations
• Higher productivity
• Greater customer loyalty
• Increased market share
• Improved profitability

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Benefits of Using Baldrige
I cannot think of a better way to verify the
sustainability of a business model than using the
Baldrige process to confirm that your founding
business principles continue to be the foundation
upon which you grow. ... Since 1999, Sunny Fresh
Foods has experienced rapid growth three plants
have grown to five, 380 stakeholders have grown
to 620, revenue has doubled, and Sunny Fresh has
become a net exporter of talent to its parent
company, Cargill, Inc. Michael Luker, (former)
president, Cargill Kitchen Solutions (formerly
Sunny Fresh Foods, Inc.), 1999 and 2005 Baldrige
Award recipient
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Six Sigma
Reduce variation and lower defect rates
lt 3.4 defects/million opportunities
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Six Sigma
Methodologies
DMAIC Define, measure, analyze, improve, and
control DMADV Define, measure, analyze, design,
and verify
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Lean
Eliminate non-value-added activities and waste

• Transportation
• Inventory
• Redundant motion
• Waiting
• Overprocessing
• Overproduction
• Defects

Waste Anything a final customer wouldnt want to
pay for
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Lean

• Goals
• Increase productivity
• Eliminate waste
• Maximize resource utilization

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ISO 90012008

• Standards for quality management systems

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Baldrige Criteria
Integrated management framework

• Emphasis on
• Integration
• Innovation
• Results
• Sustainability

• Nonprescriptive
• Holistic
• Inclusive
• Adaptable

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While other approaches focus on a single aspect,
such as leadership or process management, the
Baldrige Criteria provide an integrated
management framework that addresses all the
factors that define an organizations operations
and results. And the process is compatible with
Lean and Six Sigma strategies as well as ISO
9000. Robert W. Galvin, chairman of 2002 award
recipient Motorola Commercial, Government
Industrial Solutions Sector
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• Six Sigma, Lean, and the
• Baldrige Criteria

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Leadership Category

Baldrige Six Sigma Lean
Address the overall leadership system X
Benefit from leaders who
Align financial and human resources X
Communicate cultural norms X X X
Encourage and provide resources X X X
Solidify a culture of organizational excellence X X X
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Strategic Planning Category
Baldrige

• Identify organizational objectives
• Measure progress
• Coordinate use of assets toward objectives

Six Sigma

• Measure progress

Six Sigma, Lean

• Coordinate use of assets toward objectives

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Customer Focus Category
Customer- defined value
Baldrige Baldrige, Six Sigma Lean
Build customer engagement and loyalty Use the voice of the customer to identify areas for improvement Make all process steps something the customer is willing to pay for
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Measurement, Analysis, and Knowledge Management
Category

Baldrige ISO 90012008 Six Sigma Lean
Measure and improve processes business results overall organizational performance Monitor and measure process performance Use specific metrics Collect data Analyze data Collect control data Measure, analyze, and reduce wait time inventory batch size process time rework
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Workforce Focus Category
Baldrige
Manage workforce capability and capacity Foster a high-performance environment Engage, manage, and develop the workforce

Six Sigma, Lean, ISO 90012008
Require leadership development training compensation alignment culture shift
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Operations Focus Category
Baldrige
Processes interrelated, interdependent steps along the path to customer engagement and organizational sustainability
Six Sigma, Lean, ISO 9001
Generate standard operating procedures Set specification and control limits Identify explicit corrective actions Optimize processes
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Results Category
Baldrige
Addresses all results Product and process Customer Workforce Leadership and governance Financial and market
Six Sigma, Lean, ISO 9001
Data-driven and results-oriented, leading to tracking systems (e.g., control charts, scorecards, rolled throughput yield charts) monitoring of functional or operational results
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Summary
Baldrige
Business results and organizational improvement and innovation systems
Six Sigma, Lean, and ISO 9001
Organizational improvement and innovation processes
Six Sigma and Lean
Drive waste and inefficiencies from processes identified for improvement by Criteria users
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For More Information

• Criteria booklets
• Self-assessment tools based on the Criteria
• Award recipient videos and profiles
• Case studies
• Baldrige community

www.nist.gov/baldrige baldrige_at_nist.gov (301)
975-2036