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The MALCOM Baldrige national quality award
- 1. Baldrige Performance Excellence Program The Malcolm Baldrige National Quality Award Submitted by: Ian Fernandis QA-20 Ruqaiya Vasi QA-17
- 2. About the Award Presidential award Created in 1987 by Public Law 100-107 Highest level of national recognition for performance excellence Traditionally presented by the President of the United States
- 3. History 1. The Malcolm Baldrige National Quality Improvement Act was signed into law (Public Law 100- 107) on August 20, 1987 2. Originally, three types of organizations were eligible: manufacturers, service companies and small businesses 3. In 1998, the President and Congress approved legislation that made education and health care organizations eligible to participate in the Award Program beginning in 1999 4. In 2006 the U.S. government approved legislation that made nonprofit organizations (including charities, trade and professional organizations, and government agencies) eligible to participate in the Award Program starting in 2007
- 4. Why Apply? Improve performance and achieve world-class results Seek “the most cost-effective, value- added business audit available anywhere” Objectively clarify your organization’s strengths and weaknesses
- 6. Headquartered in the United States Existed for one year Operational practices available for examination Able to share information on Baldrige Criteria categories Other sector-specific requirements Eligibility Conditions
- 7. How Is Baldrige Different? Excellence Overall systems approach Results in all areas Success now and in the future—a strategic view Organizational learning, learning by the workforce, and knowledge sharing Corporate governance, ethics, societal responsibility
- 8. Baldrige Award Calendar February Eligibility certification April–May Award applications due June– November Applications reviewed November Award recipients announced April Award ceremony Quest for Excellence Conference
- 9. How to Apply 6 categories Nomination of examiner Fee: $360 1. Certify Your Eligibility 2. Submit an Application Respond to the Baldrige Criteria (50 pages) Application fee (sliding scale) Site visit fee, if selected (sliding scale)
- 11. • Higher productivity • Greater customer loyalty • Increased market share • Improved profitability • Better employee relations Baldrige Excellence Framework and Criteria for Performance Excellence
- 12. 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
- 13. Reduce variation; lower defect rates < 3.4 defects/million opportunities Six Sigma
- 14. DMAIC Define, measure, analyze, improve, and control DMADV Define, measure, analyze, design, and verify Methodologies Six Sigma
- 15. Waste Anything 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
- 16. Goals • Increase productivity • Eliminate waste • Maximize resource utilization Customer- defined value Map and understand value stream Make value stream flow Continuously improve processes Lean
- 17. 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
- 18. .
- 19. Emphasis on • Integration • Innovation • Results • Sustainability Baldrige Excellence Framework Integrated management framework • Nonprescriptive • Holistic • Inclusive • Adaptable
- 20. Baldrige Six Sigma Lean Address 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
- 21. 2 Strategy Baldrige • Identify organizational objectives • Measure progress • Coordinate use of assets toward objectives Six Sigma • Coordinate use of assets toward objectives • Measure progress Six Sigma, Lean
- 22. 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 Satisfaction Determination • Performance measures, and analyses • Use feedback and analyses to improve 40 60 80 100 QUALITY AllCustomers BAR SERVICE AllCustomers BAR 2001 2002 2003 2004 2005 Percent Satisfaction with Product, Service Attributes BAR 2003 BAR 2002 On Time Delivery 9 5 9 6 9 7 9 8 9 9 1 00 '01 '02 '03 '04 '05 '06 YTD %OnTime SFF OTD BAR OTD Non-egg Supplier Claims 0 1 2 3 ComplaintsperMillion PoundsProduced Y T D A vg . '01 '02 '03 '04 '05 '06 YTD 3 Customers Map and understand value stream Make value stream flow Continuously improve processes Customer- defined value
- 23. Baldrige ISO 9001 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 4 Measurement, Analysis, and Knowledge Management
- 24. Employee Engagement 2010 2011 2012 2013 2014 5 Workforce Six Sigma, Lean, ISO Require • Leadership development • Training • Compensation alignment • Culture shift Baldrige • Manage workforce capability and capacity • Foster a high-performance environment • Engage, manage, and develop the workforce
- 25. 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 6 Operations
- 26. 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 7 Results
- 27. 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
- 28. Scoring System Scoring guidelines Importance to your organization Two dimensions: process and results
- 29. Category Point Values 1 Leadership 120 2 Strategy 85 3 Customers 85 4 Measurement, Analysis, and Knowledge Management 90 5 Workforce 85 6 Operations 85 7 Results 450 Total 1,000
- 30. Evaluating Processes Approach: How do you accomplish your organization’s work? How systematic are your key processes? Deployment: How consistently are your key processes used? Learning: Have you evaluated and improved your key processes? Have improvements been shared? Integration: How do your processes address organizational needs?
- 31. Evaluating Results Levels: What is your current performance? Trends: Are the results improving, staying the same, or getting worse? Comparisons: How does your performance compare with others? Integration: Are you tracking important results? Are you using the results?
- 32. Case Study on efforts of Lockheed Martin Missiles and Fire control, Grand Prairie, TX.
- 33. Lockheed Martin Missiles and Fire control, Grand Prairie, TX. Lockheed Martin Missiles and Fire Control (MFC) designs, develops, manufactures, and supports advanced combat, missile, rocket, and sensor systems for the U.S. and foreign militaries. The company’s workforce of 10,688 employees produces and delivers more than 100 products through 825 contracts in more than 60 countries. Continuous improvement is ingrained in the culture of MFC making it the highest performing company within Lockheed Martin Corporation with pride and sense of honor. MFC is dedicated to delivering the products on time while meeting all the requirements.
- 34. Lockheed Martin Missiles and Fire control, Grand Prairie, TX. We will discuss the efforts of Lockheed Martin Missiles and Fire control in all the seven categories of the Baldrige framework. Leadership Strategy Customer focus Measurement, Analysis and Knowledge Workforce Focus Operations Focus Business Results and conclusion
- 35. Leadership at Lockheed Martin Missiles Support the war fighter Set Strategic Direction & establish Tactical goals Communicate plan & build commitment Empower workforce to Develop Implementatio n Plan Inspire and raise the bar Develop Reward Recognize Learn Improve and Innovate Monitor Plan Achievement Accountability for results The MFC performance Driven Leadership System
- 36. STRATEGY FOCUS at Lockheed Martin Missiles MFC’s Strategic planning and execution system
- 37. Customer focus at Lockheed Martin Missiles Lockheed Martin Missiles and Fire Control (MFC) forms long-term, intimate working relationships with our customers based on executing programs together Customer focus category is approached in a step by step process which is: Listening to the voice of customer Engaging the customer Building relationships with the customer through informal and formal methods.
- 38. Measurement, Analysis and Knowledge Management at Lockheed Martin Missiles Metric connectivity in EES
- 39. Workforce Focus at Lockheed Martin Missiles One of the Core Competencies at MFC is “Developing Talent” Human capital framework
- 40. Operations focus at Lockheed Martin Missiles Enterprise Work System Development process.
- 41. Business results and conclusion MFC consistently operates at or near the Six Sigma level, defined as the level “at which 99.99966% of the products manufactured are statistically expected to be free of defects The unique work system processes, human capital framework, supply chain process etc., help the organization in enhancing on-time delivery by suppliers. The commitment to continuous improvement and performance helped MFC increase their earnings as compared to their competitors with an annual growth rate of 14%. MFC has high performance even under marketplace volatility, captures high percentage of competitive bids and has won 71% of dollar value of wins against competitors Although the defense industry market is contracting, MFC is both increasing market share and increasing the share at a faster rate than the primary competitor.