7. Malcolm
Baldrige
National
Quality Award
www.quality.nist.gov
8. Malcolm
Baldrige NQA
• Twenty years evolving
• A Framework and A Tool
• Self-Assessment
• Promotes Awareness of
Continuous Improvement and
Excellence
• Sharing of Best Practices
• Presented by the President
of the United States
15. Results
& Value
• Focus on Key Results
• Creating Value for
Stakeholders
• Customers
• Employees
• Stockholders
• Suppliers / Partners
• The Community
• Both Leading and
Lagging Indicators
20. Comparison
M B N Q A Balanced Scorecard ISO 9001:2000
Leadership Vision and Strategy Quality Policy
Strategic Planning Quality objectives
Customer & Market Customer Customer focus
Focus Customer related
processes
Workforce Focus Customer satisfaction
Process Mgmt Internal QMS General
Measurement, Business Processes requirements
Analysis & KM Product Realization
Business Results Organization’s Not specifically
Business Results addressed in the
standard.
23. Sigma
Variation
• The sigma value is a metric
that indicates how well a
process is performing.
• The higher the sigma
value, the better.
• The higher the sigma
value, the more the
process is defect-free.
24. Example of
Sigma Value
Yield DPMO Sigma
30.9% 690,000 1
69.2% 308,000 2
93.3% 66,800 3
99.94% 6,210 4
99.98% 320 5
99.9997% 3.4 6
25. Example of
Sigma Value
Most companies
operate at around 4
sigma – the quality Yield DPMO Sigma
standard set by the
US Government in
WW II 30.9% 690,000 1
69.2% 308,000 2
93.3% 66,800 3
99.94% 6,210 4
99.98% 320 5
99.9997% 3.4 6
40. Effectiveness vs Efficiency
Six Sigma = Effectiveness
6σ 6σ 6σ
VOC
Selection Control Improvement
Process Lean Lean Lean
Metrics Metrics Workload Process
Lean Mgmt = Efficiency
41. Definition
• The term “lean” is used because
lean manufacturing uses “less”…
Labor in the factory
Manufacturing space
Capital investment
Materials
Time between the customer
order and the product shipment
42. Lean Mgmt Comparison
Traditional Lean
Production Based on forecast Based on orders
Based on function /
Layout Based on product flow
department
Batch size Large Small
Processing Batch & queue Continuous flow
Assured during
Quality Lot sampling
processing
45. Waste
Value Added: 5%
• Overproduction
• Excess Inventory
• Product Defects
• Non-value added
processing
• Wait time
• Underutilized
labor
• Excess motion
Non - Value Added: 95%
• Unnecessary
Transportation
46. 7 Types
of Muda
CORRECTION
Repair or MOTION
WAITING
Rework Any wasted motion
Any non-work time to pick up parts or
waiting for tools, stack parts. Also
supplies, parts, etc.. wasted walking
Types
PROCESSING of OVERPRODUCTION
Producing more
Doing more work than Waste than is needed
is necessary
before it is needed
INVENTORY
Maintaining excess CONVEYANCE
inventory of raw mat’ls, Wasted effort to transport
parts in process, or materials, parts, or
finished goods. finished goods into or
out of storage, or
between
processes.
47. Workplace
Organization
Maintain through Get rid of clutter
empowerment,
commitment, and Sort
discipline Organize the work area
Sustain Set In Order
5S
Standardize Shine
Use standard methods to Keep machines and work
keep Sort, Set In Order, areas clean
and Shine to a condition
48.
49. KAI ZEN
To modify / + To make good /
Change better
= KAIZEN
Gradual and orderly, continuous improvement.
50. Differences in
Emphasis
• Six Sigma
– Process Improvement
– Reduced Defect Rate
• Lean
– Efficiency Improvement
– Reduce Waste
• Baldrige Criteria
– Performance Excellence
across Entire System
– Results Oriented