The Path to Excellence and Some Path-Building Tools

1. 2011 Baldrige Performance Excellence Program The Path to Excellence and Some Path-Building Tools Baldrige Performance Excellence Program | www.nist.gov/baldrige

2. Baldrige Framework • Better employee relations • Higher productivity • Greater customer loyalty • Increased market share • Improved profitability

3. 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

4. Six Sigma Reduce variation and lower defect rates < 3.4 defects/million opportunities

5. Six Sigma Methodologies DMAIC Define, measure, analyze, improve, and control DMADV Define, measure, analyze, design, and verify

6. Eliminate non-value-added activities and waste Lean • Transportation • Inventory • Redundant motion • Waiting • Overprocessing • Overproduction • Defects Waste Anything a final customer wouldn’t want to pay for

7. Lean Map and understand value stream • Goals • Increase productivity • Eliminate waste • Maximize resource utilization Customer- defined value Make value stream flow Continuously improve processes

8. ISO 9001:2008 • Standards for quality management systems

9. Baldrige Criteria Integrated management framework • Emphasis on • Integration • Innovation • Results • Sustainability • Nonprescriptive • Holistic • Inclusive • Adaptable

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11. 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 of 2002 award recipient Motorola Commercial, Government & Industrial Solutions Sector

12. Six Sigma, Lean, and the Baldrige Criteria

13. Leadership Category

14. 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

15. Customer Focus Category Customer- defined value Map and understand value stream Make value stream flow Continuously improve processes

16. Measurement, Analysis, and Knowledge Management Category

17. Employee Engagement 2005 2006 2007 2008 2009 Workforce Focus Category

18. Operations Focus Category

19. Results Category

20. Summary

21. 2011 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@nist.gov (301) 975-2036 Baldrige Performance Excellence Program | www.nist.gov/baldrige