2014 Performance Excellence a Systems Approach and Tools

2014

Baldrige Performance Excellence Program | www.nist.gov/baldrigeBaldrige Performance Excellence Program | www.nist.gov/baldrige

Performance Excellence: A Systems Approach and Tools

2014

Baldrige Performance Excellence Program | www.nist.gov/baldrige

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

relations

Baldrige Criteria for Performance Excellence

2014


It’s all about continuous improvement. . . . By embracing all of the key dimensions of Baldrige, the company has doubled in size this year as a business of Bayer Health Care. We are $690 million in revenue, as of the end of 2010.”

—Samuel Liang, president and CEO, two-time Baldrige Award winner MEDRAD

2014


BaldrigeBusiness resultsOrganizational improvement and innovation systems

Six Sigma, Lean, & ISO 9001 Organizational improvement and innovation processes

Six Sigma & LeanDrive waste and inefficiencies from processes

2014


Reduce variation; lower defect rates

< 3.4 defects/million opportunities

Six Sigma

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DMAICDefine, measure, analyze, improve, and control

DMADVDefine, measure, analyze, design, and verify

MethodologiesSix Sigma

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WasteAnything a final customer wouldn’t want to pay for

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

Lean

Eliminate non-value-added activities and waste

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Goals • Increase productivity• Eliminate waste• Maximize resource utilization

Customer- defined value

Map and understand value stream

Make value stream flow

Continuously improve processes

Lean

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Standards for quality management systems

• Implement processes

• Monitor/measure processes and products against objectives and requirements

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

• Take action to improve

ACT PLAN

DOCHECK

ISO 9001:2008

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Emphasis on• Integration• Innovation• Results• Sustainability

Baldrige CriteriaIntegrated management framework

• Nonprescriptive • Holistic• Inclusive• Adaptable

2014


.

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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 organization’s operations and results. And the process is compatible with Lean and Six Sigma strategies as well as ISO 9000.

—Robert W. Galvin, chairman, Baldrige Award winner Motorola Commercial, Government & Industrial Solutions Sector

2014


Six Sigma, Lean, and theBaldrige Criteria

2014


Baldrige Six Sigma LeanAddress the overall leadership system ■Benefit from leaders who

• Align financial and human resources ■• Communicate cultural norms ■ ■ ■• Encourage and provide resources ■ ■ ■• Solidify a culture of organizational

excellence ■ ■ ■

1 Leadership

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2 Strategic Planning

95%100% 98%

94% 94%

85%90%95%

100%

2006 2007 2008 2009 2010

Organizational StrategyCritical Performance Measures

Actual Goal

Good

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

objectivesSix Sigma

• Coordinate use of assets toward objectives

• Measure progress

Six Sigma, Lean

2014


Baldrige Baldrige, Six Sigma LeanBuild 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

Satisfaction Determination

• Performance measures, and analyses

• Use feedback and analyses to improve

40

60

80

100

2001 2002 2003 2004 2005

Percent Satisfaction with Product, Service Attributes

BAR 2003BAR 2002

On Time Delivery

95

96

97

98

99

1 00

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

% O

n T

ime

SFF OTD BAR OTD

Non-egg Supplier Claims

0

1

2

3

Com

plai

nts

per M

illio

n P

ound

s P

rodu

ced

'01 '02 '03 '04 '0 5 '06 Y TD

3 Customer Focus

Map and understand value stream

Make value stream flow

Continuously improve

processes

Customer- defined value

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Baldrige ISO 9001:2008 Six Sigma LeanMeasure 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

4 Measurement, Analysis, and Knowledge Management

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Employee Engagement

2005 2006 2007 2008 2009

5 Workforce Focus

Six Sigma, Lean, ISO 9001:2008Require

• leadership development• training• compensation alignment• culture shift

Baldrige• Manage workforce capability and capacity• Foster a high-performance environment• Engage, manage, and develop the

workforce

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BaldrigeProcesses: 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

6 Operations Focus

1 .8 5

1.9

1 .9 5

2

2 .05

2.1

2 .1 5

2.2

Process Avg Spec Target UCLLCL Upper Spec Limit Lower Spec Limit

Cpk=1.25 Cpk= 4.42

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BaldrigeAddresses 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

7 Results

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BaldrigeBusiness resultsOrganizational improvement and innovation systems

Six Sigma, Lean, & ISO 9001

Organizational improvement and innovation processes

Six Sigma & LeanDrive waste and inefficiencies from processes

2014

Baldrige Performance Excellence Program | www.nist.gov/baldrigeBaldrige Performance Excellence Program | www.nist.gov/baldrige

For More Information● Criteria booklets and free Criteria content● Self-assessment tools ● Organizational assessments● Training, conferences, and executive education● Award recipient profiles● Case studies● Connections to the Baldrige community

www.nist.gov/baldrige [email protected]

(301) 975-2036

Documents

2014 Performance Excellence a Systems Approach and Tools