2014

Performance Excellence:
A Systems Approach and Tools

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

2014

Baldrige Criteria for

Performance Excellence

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

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

2014

Its 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

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

2014

Baldrige
Business results
Organizational improvement and
innovation systems

Six Sigma, Lean, &

ISO 9001
Organizational improvement and
innovation processes

Six Sigma & Lean

Drive waste and inefficiencies from
processes

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

2014

Six Sigma
Reduce variation; lower defect rates

< 3.4 defects/million opportunities

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

2014

Six Sigma
Methodologies
DMAIC
Define, measure, analyze, improve, and control

DMADV
Define, measure, analyze, design, and verify

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

2014

Lean
Eliminate non-value-added activities and waste
Waste
Anything a final
customer wouldnt
want to pay for

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

Transportation
Inventory
Redundant motion
Waiting
Overprocessing
Overproduction
Defects

2014

Lean
Map and
understand
value stream

Customerdefined value

Goals
Increase productivity
Eliminate waste
Maximize resource utilization

Continuously improve
processes

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

Make value
stream flow

2014

ISO 9001:2008
Standards for quality management systems
Set objectives and processes to
deliver products that meet customer
requirements

Take action to improve

ACT

PLAN

CHECK

DO

Monitor/measure processes
and products against
objectives and requirements

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

Implement processes

2014

Baldrige Criteria
Integrated management framework
Emphasis on
Integration
Innovation
Results
Sustainability

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

Nonprescriptive
Holistic
Inclusive
Adaptable

2014

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

2014

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, Baldrige Award winner
Motorola Commercial, Government & Industrial Solutions Sector

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

2014

Six Sigma, Lean, and the

Baldrige Criteria

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

2014

1 Leadership
Baldrige Six Sigma Lean

Address the overall leadership system

Benefit from leaders who
Align financial and human resources

Encourage and provide resources

Solidify a culture of organizational

excellence

Communicate cultural norms

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

2014

2 Strategic Planning
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

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

2014

3 Customer Focus
Customerdefined value

Satisfaction Determination
Percent Satisfaction with Product, Service Attributes

Map and
understand
value stream

100

Performance
measures, and
analyses

Baldrige
Build customer
engagement
and loyalty

% On Time

99

40

2001

2003

2004

2005

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

BAR 2002
BAR 2003

97

96

95

'01

'02

'03

'04

'05

'06 YTD

SFF OTD

BAR OTD

'01

Baldrige, Six Sigma

Use the voice of the
customer to identify
areas for improvement

98

Non-egg Supplier
Claims

2002

P o u n d s P ro d u c e d

Continuously
improve
processes

1 00

60

C o m p la in ts p e r M illio n

Make value
stream flow

Use feedback
and analyses
to improve

On Time Delivery

80

'0 2

'0 3

'0 4

'05

'0 6 Y TD

Lean
Make all process steps
something the customer
is willing to pay for

2014

4 Measurement, Analysis, and

Knowledge Management
Baldrige

ISO 9001:2008 Six Sigma

Measure and improve Monitor and

processes
measure process
business results
performance
overall
organizational
performance

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

Use specific
metrics
Collect data
Analyze data
Collect control
data

Lean
Measure, analyze,
and reduce
wait time
inventory
batch size
process time
rework

2014

5 Workforce Focus
Baldrige
Employee Engagement

Manage workforce capability and capacity

Foster a high-performance environment
Engage, manage, and develop the
workforce

Six Sigma, Lean, ISO 9001:2008

2005

2006

2007

2008

2009

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

Require
leadership development
training
compensation alignment
culture shift

2014

6 Operations Focus
Baldrige
Processes: interrelated,
interdependent steps along the path
to customer engagement and
organizational sustainability

Six Sigma, Lean, ISO 9001

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

Generate standard operating procedures

Set specification and control limits
Identify explicit corrective actions
Optimize processes

2014

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

2014

Baldrige
Business results
Organizational improvement and
innovation systems

Six Sigma, Lean, &

ISO 9001
Organizational improvement and
innovation processes

Six Sigma & Lean

Drive waste and inefficiencies from
processes

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

2014

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
baldrige@nist.gov
(301) 975-2036

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