The Malcolm Baldrige National Quality Award

Submitted by:Ian Fernandis QA-20Ruqaiya Vasi QA-17

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

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

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

Eligibility CategoriesManufacturing

Service

Small business

Education

Health care

Nonprofit

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

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

Baldrige Award Calendar

February Eligibility certificationApril–May Award applications dueJune–November

Applications reviewed

November Award recipients announcedApril Award ceremony

Quest for Excellence Conference

How to Apply

6 categories

Nomination of examinerFee: $360

1. Certify Your Eligibility2. Submit an Application

Respond to the Baldrige Criteria (50

pages)

Application fee

(sliding scale)

Site visit fee, if selected

(sliding scale)

Review ofAward Applications

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

relations

Baldrige Excellence Framework and Criteria for Performance Excellence

BaldrigeBusiness resultsOrganizational improvement and innovation systems

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

LeanDrive waste and inefficiencies from processes

Reduce variation; lower defect rates

< 3.4 defects/million opportunities

Six Sigma

DMAICDefine, measure, analyze, improve, and control

DMADVDefine, measure, analyze, design, and verify

MethodologiesSix Sigma

WasteAnything a final customer wouldn’t want to pay for

Transportation

Inventory

Redundant motion

Waiting

Overprocessing

Overproduction

Defects

LeanEliminate non-value-added activities and waste

Goals • Increase productivity•Eliminate waste•Maximize resource

utilization

Customer- defined value

Map and understand value stream

Make value stream flow

Continuously improve processes

Lean

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

.

Emphasis on• Integration• Innovation• Results• Sustainability

Baldrige Excellence FrameworkIntegrated management framework

• Nonprescriptive • Holistic• Inclusive• Adaptable

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

2 StrategyBaldrige• Identify organizational objectives• Measure progress• Coordinate use of assets toward

objectives

Six Sigma

• Coordinate use of assets toward objectives

• Measure progress

Six Sigma, Lean

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

10 0

2001 2002 2003 2004 2005

Percent Satisfaction with Product, Service Attributes

BAR 2003BAR 2002

On Time Delivery

9 5

9 6

9 7

9 8

9 9

100

'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

'0 1 '02 '0 3 '04 '05 '0 6 Y TD

3 Customers

Map and understand value stream

Make value stream flow

Continuously improve

processes

Customer- defined value

Baldrige ISO 9001 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

5 Workforce

Six Sigma, Lean, ISORequire• Leadership development• Training• Compensation alignment• Culture shift

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

workforce

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

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

BaldrigeBusiness resultsOrganizational improvement and innovation systems

Six Sigma, Lean, & ISO 9001

Organizational improvement and innovation processes

Six Sigma & Lean

Drive waste and inefficiencies from processes

Scoring System

Scoring guidelines Importance to your organizationTwo dimensions: process and

results

Category Point Values

1 Leadership 1202 Strategy 853 Customers 854 Measurement, Analysis, and

Knowledge Management 905 Workforce 856 Operations 857 Results 450

Total 1,000

Evaluating ProcessesApproach: 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?

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?

Case Study on efforts of Lockheed Martin Missiles and Fire control, Grand

Prairie, TX.

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.

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

Leadership at Lockheed Martin Missiles

Support the war fighter

Set Strategic Direction & establish

Tactical goalsCommunicat

e plan & build

commitment

Empower workforce to

Develop Implementat

ion Plan

Inspire and raise the

barDevelop Reward

Recognize

Learn Improve

and Innovate

Monitor Plan

Achievement

Accountability for

results

The MFC performance Driven Leadership System

STRATEGY FOCUS at Lockheed Martin Missiles

MFC’s Strategic planning and execution system

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.

Measurement, Analysis and Knowledge Management at Lockheed Martin Missiles

Metric connectivity in

EES

Workforce Focus at Lockheed Martin Missiles

One of the Core Competencies at MFC is “Developing Talent”

Human capital framework

Operations focus at Lockheed Martin Missiles

Enterprise Work System Development

process.

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.