Transcript Pursuing Performance Excellence Using the Baldrige Criteria

Pursuing Performance Excellence
Using the Baldrige Criteria
Washington DC & Maryland Metro Section
ASQ
Robert J. Scanlon
May 17, 2007
Pursuing Performance Excellence
- Agenda

The Search for Competitiveness

Understanding Systems

The Power of a Standard

The Baldrige National Quality Program

Summary
Pursuing Performance Excellence
- The Search for Quality Competitiveness
My personal Quality journey…
Early ‘70s: Little “q”
 Caterpillar Metallurgical Laboratory
Focus: Quality Control
Pursuing Performance Excellence
- The Search for Quality Competitiveness
My personal Quality journey…
Early ‘80s: Big “Q”
 Quality becomes a strategic priority
Focus changes to: Quality Improvement
Pursuing Performance Excellence
- The Search for Competitiveness
The broader context:
 The US has “suddenly” found itself to be noncompetitive in Quality of manufactured
products
 The alarm bells are sounding and everyone is
scrambling to respond successfully to the
threat
But HOW should we respond?
Pursuing Performance Excellence
- Quality’s Contribution
The Gurus:
 Crosby: Marketer - “Quality is Free”, Quality =
Conformance to Requirements,
Cost of Non-Conformance
 Deming: Philosopher - SPC, 14 Points
 Juran: Management Consultant Quality = Fitness for Use, Quality Trilogy, Cost
of Poor Quality, Resistance to Change
 Fiegenbaum: Total Quality Control
Pursuing Performance Excellence
- The Search for Competitiveness
Mid ‘80s:
 Manufacturing organizations are “picking” one
of the gurus to follow
 There is a frantic hunt for the “secret” to
Japanese success
 But, there is no consensus on what to do or
whether the approaches being tried will work.
So, no consensus...no standard
Pursuing Performance Excellence
- The Search for Competitiveness
Visits to Japan identify pieces of a response:
 Statistical Process Control…
 Employee Involvement (Quality Circles)…
 Quality Training…
 Quality Improvement Teams
 Workers who can “stop the line”
 Kanban
 etc., etc., etc…..
Pursuing Performance Excellence
- The Search for Competitiveness
All of these elements had some value.
But, at best, they were…
Necessary but Insufficient…
To Assure the Success of the Enterprise
How do we know when we’ve got all of the right
“pieces” assembled?
Pursuing Performance Excellence
- The Search for Competitiveness
Q: The right pieces to what?
Pursuing Performance Excellence
- The Search for Competitiveness
Ans.: The right pieces to ...
The Management System.
Pursuing Performance Excellence
Systems Thinking
•
Excerpts from a talk by Dr. Russell L. Ackoff
Chairman and Professor Emeritus,
the Wharton School
Pursuing Performance Excellence
- Defining a System
A System is:
 a whole consisting of two or more essential parts
 and for which the parts must satisfy 3 conditions:
 each part can affect the entire system’s behavior or
properties
 the way each part affects the whole depends on what
at least one other part is doing (i.e., no part of the
system has an independent effect on the whole
because they interact), and
 the same applies to all subparts of all subsystems
Pursuing Performance Excellence
- Systems Thinking
Independence and Interaction:
Because the properties of any system arise
out of the interactions of its parts, the
essential properties of any system, the
properties that define the system, are
properties of the whole that none of its
parts have!
Examples:
Pursuing Performance Excellence
- Systems Thinking
The Significance of Systems Interaction:
 When you improve the performance of every
part of the system taken separately, you do
NOT (necessarily) improve the performance
of the System.
Pursuing Performance Excellence
- Systems Thinking
System & Element Design:
 We should not attempt to improve any part of
the Management System without
understanding its role within the larger
system.
 Instead, we must approach this from the
perspective of knowing what properties we
want the entire System to have and then
designing each element to support that.
Pursuing Performance Excellence
- Systems Thinking
Reasons for TQM Failures:
 Ignoring the total System
 Focusing on fixing what’s wrong instead of
doing the right things
Pursuing Performance Excellence
The Power of Standards
Standards and Quality
In the absence of standards, Quality is a
meaningless concept.
Types of Standards
Government
 Commercial/Industrial
 Business
 Company
 Others…

Characteristics of Standards
Standards represent who we are…
and what we can do!
They...
 should be attainable by everyone operating the
process they apply to.
 require methods and measurement systems
 liberate us to focus our energy and creativity on
other things.
 are a floor not a ceiling with respect to
performance.
 require energy to maintain them.
 are dynamic and should improve over time.
Pursuing Performance Excellence
- The Power of Standards
Standards: Confining or Liberating?
Examples:
 The Dishwasher Story
 VHS or Beta? Do you feel lucky?
 PCs
 Cell phones
Pursuing Performance Excellence
- The Power of Standards
Conclusion:
The emergence of a clear standard in a
free enterprise system eliminates
confusion and fuels economic growth.
Pursuing Performance Excellence
- The Power of Standards
But can Standards be Confining?
– Standards are confining when they are not
updated and no longer represent the
capability of a well managed / operated
process.
Does this happen?
Pursuing Performance Excellence
- The Power of Standards
But can Standards be Confining?
Yes
– Standards are confining when they are not
updated and no longer represent the capability
of a well managed / operated process.
Does this happen?
All the time!
Pursuing Performance Excellence
- The Power of Standards
Conclusion:
Improved competitiveness requires continuous
process improvements which in turn drive
improved standards.
Standards should be dynamic, not static.
Pursuing Performance Excellence
The Baldrige Management
System Model
Pursuing Performance Excellence
- The Malcolm Baldrige National Quality Award
From 1987 - 2006:
 68 Winners of the Award
 Winners have shared their experience and lessons learned
with tens of thousands to help them improve
 Millions of copies of criteria distributed
 42 states have Quality Awards using Criteria
 Inspired the European Quality Award
 Being adopted by other countries including the Japanese
and Chinese
 Began with Manufacturing, Service, an Small Business in
1987
 Expanded to Education and Healthcare in 1998 and the not
for profit sector in 2006
Baldrige National Quality Program
Malcolm Baldrige
National Quality Award
Criteria for Performance Excellence
Seven Categories of the
Business/Nonprofit Criteria
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Leadership

Strategic Planning

Customer and Market Focus

Measurement, Analysis, and Knowledge
Management

Workforce Focus

Process Management

Results
Core Values and Concepts
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
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Visionary Leadership
Customer-Driven Excellence
Organizational and Personal Learning
Valuing Employees and Partners
Agility
Focus on the Future
Managing for Innovation
Management by Fact
Social Responsibility
Focus on Results and Creating Value
Systems Perspective
Baldrige Criteria Framework:
A Systems Perspective
Organizational Profile
P.1 Organizational Description
P.2 Organizational Challenges
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Starting point for self-assessment and
application preparation
Basis for early action planning
Category Point Values
1
2
3
4
5
6
7
Leadership
Strategic Planning
Customer and Market Focus
Measurement, Analysis, and
Knowledge Management
Workforce Focus
Process Management
Results
TOTAL POINTS
120
85
85
90
85
85
450
1,000
Keeping the Criteria Current

Changes in the 2007 Criteria (Handout)
Pursuing Performance Excellence
The Baldrige Quality Program
represents a
national management system standard
that enables the
systematic and effective pursuit of
Performance Excellence
Pursuing Performance Excellence
- Why Baldrige?
 It’s efficient: The Management System
elements have been determined for you
 A Standard minimizes the tendency for
consultants to create their own competing
approach
 The common framework facilitates
understanding, and sharing
Pursuing Performance Excellence
- Why Baldrige (continued) ?
 An extensive infrastructure is in place to
support you: Baldrige Foundation,
Examiners, State Awards, the Winners
 It is constantly evaluated and improved
 It is not prescriptive - every organization has
complete freedom to design its own
approaches
 It works!
Pursuing Performance Excellence
- Summary
The Baldrige National Quality Program Criteria:
 Is the culmination of the “quality journey” that began in
the late ‘70s and continued through the ’80s
 Is a national management system standard
 Incorporate the management system attributes that
enable superior results
 Is applicable and available to any organization
 Provides complete freedom to develop the approaches
an organization needs to support its goals and
objectives
 Is designed to systematically and successfully pursue
Performance Excellence
Resources for More Information

Most Baldrige National Quality Program
(BNQP) documents are available both in hard
copy and on the BNQP Web site.

To obtain these documents,
call (301) 975-2036 or
visit www.baldrige.nist.gov.