The Path to Excellence and

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BaldrigeNational Quality Program
Baldrige National Quality Program

• The Path to Excellence
  and
• Some Path-Building Tools

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

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Lean is focused on the elimination of all
nonvalue-adding activities and waste from an
organizations processes.
Map and understand value stream

• 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

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

Customer- defined value
Make value stream flow
Continuous process improvement
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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

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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

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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.
.
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• Six Sigma and Lean
• How they relate to the seven Baldrige
  Criteria Categories

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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.

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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.

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

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Workforce Focus Category

• Six Sigma and Lean methodologies require
• Leadership development
• Training
• Compensation alignment
• Culture shift

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Process Management Category

• Lean or Six Sigma methodologies are used to
• Generate standard operating procedures
• Set specification and control limits
• Identify explicit corrective actions
• Optimize processes

Baldrige processes are interrelated and
interdependent steps along the path to customer
engagement and organizational sustainability.
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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 resultsprocess,
leadership, product, customer, financial, and
workforce.
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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 and Lean focus on
organizational improvement and innovation
processes.
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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 [phone],
  send e-mail to baldrige_at_nist.gov, or visit the
  Web site www.nist.gov/baldrige.