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World-Class Quality
1Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Using Lean in a Baldrige
Environmentto Transform Organizations
Tim Olson, PresidentLean Solutions Institute, Inc. (LSI)MBNQA, Baldrige Examiner, 2008-2010(760) 804-1405 (Office)[email protected]
© 1994-2010 by Process Assets, LLC (PAL). All Rights Reserved.
VA Conference - October 27, 2010
Presentation based on NIST 2010 MBNQA Material.
Used with Permission.
World-Class Quality
2Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
“I have made this letter longer than usual because I lack the time to make it
shorter”
Blaise Pascal
Lean Quotes to Live By…
“Keep things as simple as possible, but no simpler”
Albert Einstein
World-Class Quality
3Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Presentation Objectives
Present an overview of lean.
Present latest industry trends.
Summarize strengths and weaknesses of Baldrige.
Summarize strengths and weaknesses of Lean.
Describe how lean can strengthen Baldrige Results.
Answer any questions.
World-Class Quality
4Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
OutlineIntroduction
Baldrige Overview
Lean Overview
CMMI Overview
Using Lean to Strengthen Baldrige World-Class Quality
Summary
World-Class Quality
5Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Who is LSI? - (1)The mission of Lean Solutions Institute, Inc. (LSI) is to help organizations to measurably:
• become “best-in-class” or “world-class” leaders in their respective markets (e.g., using benchmarking)
• improve quality and productivity (e.g., lower product defect rates, increased KSLOC per person month, etc.)
• reduce non-value added activities and the cost of poor quality (e.g., rework, waste, scrap, etc.)
• become lean and apply Lean SolutionsTM - (e.g., processes, metrics, checklists, templates, etc.)
World-Class Quality
6Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Who is LSI? - (2)
LSI is an improvement organization. LSI focuses on Lean SolutionsTM for your organization (e.g., Baldrige, CMMI, ISO, etc).
• LSI uses an “ISO Approach” to improvement (i.e., separate improvement organization from certification/appraisal organization).
• LSI is NOT an ISO Registrar, SEI Appraisal organization, etc.
• LSI specializes in lean improvement and
Lean SolutionsTM in systems engineering, software engineering, IT, service, healthcare, test engineering, manufacturing, etc.
World-Class Quality
7Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
21st Century Business NeedsThe usual business needs (e.g., “time and money”):
• Save Money (e.g., ROI)• Reduce Cycle Time• Improve Performance (e.g., CPI, SPI)• Improve Productivity• Improve Quality
New 21st Century business needs:• Agility, Lean, etc.• Complexity, Architectures, Models, Reuse, etc.• Innovation, Diversity, etc.• Special Topics: Reliability, Safety, Security,
Usability, etc.
World-Class Quality
8Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Growing ComplexitySystems are getting more complex very year.
Example: Software Engineering
Automobiles now have over 1 million lines of code. For example, the Toyota brake problem on the Prius was due to software defects.
Combines and tractors have multiple controllers and multi-millions lines of code.
Many organizations (e.g., manufacturing, hardware, etc.) are becoming mostly software organizations.
World-Class Quality
9Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Multiple Needs: Multiple Models
Organizations have many needs.
“All models are wrong; some are useful”.
Every quality approach has strengths and weaknesses. No one model can meet all business needs. Which models to choose?
Example quality approaches:• Baldrige (multi-models)• CMMI® (multi-models)• ISO (multi-models)• ITIL®
• Lean (Multi-Models)• Six Sigma (Multi-Models)• New Maturity Models (Security; Usability)• Etc.
CMMI is a registered trademark in the US Copyright and Patent Office by Carnegie Melon University.
World-Class Quality
10Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
The Quality Crisis
The cost of poor quality:• “In most companies the costs of poor quality
run at 20 to 40 percent... In other words, about 20 to 40 percent of the companies’ efforts are spent in redoing things that went wrong because of poor quality” (Juran on Planning for Quality, 1988, pg. 1)
• Crosby’s Quality Management Maturity Grid states that if an organization doesn’t know it’s cost of quality, it’s probably at least 20%. (Crosby, Quality is Free, 1979, pg. 38-39)
World-Class Quality
11Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
The Quality CrisisAccording to Dr. Juran:
1. “There is a crisis in quality. The most obvious outward evidence is the loss of sales to foreign competition in quality and the huge costs of poor quality.”
2. “The crisis will not go away in the foreseeable future.”
3. “Our traditional ways are not adequate to deal with the quality crisis.”
4. “To deal with the crisis requires some major breaks with tradition.”• Quoted from Juran, Joseph. “The Quality Trilogy”, Quality Progress, 1986
World-Class Quality
12Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Major COQ CategoriesCost of Quality
Cost of Good Quality
Cost of Poor Quality
Prevention AppraisalInternalFailure
ExternalFailure
• Training• Quality
Planning• Defect
Prevention
• Inspections• Peer
Reviews• Audits• Testing
• Rework• Scrap• Re-Testing• Fixing
InternalDefects
• Warranty• Returned Products• Fixing External Defects
World-Class Quality
13Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Some Quality Lessons Learned
Most organizations have about 33% in costs of poor quality (e.g., rework, waste, scrap, etc.)
About 80% of all quality efforts have no measurable results.
According to Dr. Juran, most failures in quality are due to a poor choice of strategy.
In order to choose a quality strategy wisely, organizations need to know how to manage for quality.
World-Class Quality
14Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Evolutionary vs. RevolutionaryQuality Improvement
Increased Quality &Productivity
Time
Company B
Company A
30-50%
5-15%
• Adapted from Juran on Leadership for Quality, Juran, 1989
World-Class Quality
15Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
The Quality Chain Reaction
Productivity improves
Improve quality
Costs decrease because of less rework, fewer mistakes, fewer delays, better designs, efficient use of resources and materials
Capture the market with better quality and lower price
Stay in business
Provide jobs and more jobs
• Adapted from Deming, W. Edwards, Out of the Crisis, MIT CAES, 1986
World-Class Quality
16Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Raytheon - Cost of Quality
Reference: “Process Improvement and the Corporate Balance Sheet”, Dion, IEEE Software, July 1993
10
20
30
40
50
1987 1988 1989 1990 1991 1992
% OF TOTALPROJECTCOST
BeginImprovement
$16 Million
Appraisal Cost
Prevention Cost
Cost of Rework
World-Class Quality
17Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Raytheon - Productivity
50
100
150
1988 1989 1990 1991 1992
ProductivityIncrease - %
Reference: “Process Improvement and the Corporate Balance Sheet”, Dion, IEEE Software, July 1993
World-Class Quality
18Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Raytheon:Cost Performance Index
Reference: “Measuring the ROI of Software Process Improvement”, Dion, SEI Presentation, August 1992
80
100
150
1988 1989 1990 1991
On Budget
PercentOverBudget
PercentUnderBudget
World-Class Quality
19Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Baldrige National Quality Program 2008Baldr ige N ational Q uality Pr ogr am 2008
Presentation based on NIST MBNQA 2010 Material. Used with Permission.
World-Class Quality
20Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Steps Toward Mature Processes
Presentation based on NIST MBNQA 2010 Material. Used with Permission.
World-Class Quality
21Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Quality Maturity
• Based on “The Eternally Successful Organization”, by Crosby, the SEI CMM, the Baldrige Award, & Dilbert Comics
• Acronyms are (COQ=Cost of Quality; BA=Baldrige Award; DCF=Dilbert Correlation Factor; SEI=SEI CMMI)
STAGE
Comatose
ProgressiveCare
Wellness
Prevention
COQ
33%
25%
18%
10%
5%
SUMMARY
“What quality problems?”
“We don’t know why we have quality problems, but they hurt.”
“Management commitment andcontinuous improvement resolve quality problems.”
“Quality planning, control, andimprovement are routine.”
“We know why we have happy customers.”
SEI
IntensiveCare
BA DCF
800
200
400
600
700
5
4
3
2
1100%
80%
60%
40%
20%
World-Class Quality
22Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
OutlineIntroduction
Baldrige Overview
Lean Overview
CMMI Overview
Using Lean to Strengthen Baldrige World-Class Quality
Summary
World-Class Quality
23Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Baldrige Criteria Framework: A Systems
Perspective
Presentation based on NIST MBNQA 2008 Material. Used with Permission.
World-Class Quality
24Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Brainstorm
What are the Strengths of Baldrige?••••••••••
World-Class Quality
25Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Baldrige Category Point Values
1 Leadership 1202 Strategic Planning 853 Customer and Market Focus 854 Measurement, Analysis, and
Knowledge Management 905 Workforce Focus 856 Process Management 857 Results 450
TOTAL POINTS 1,000
Presentation based on NIST MBNQA 2008 Material. Used with Permission.
World-Class Quality
26Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Core Values and Concepts
Visionary LeadershipCustomer-Driven ExcellenceOrganizational and Personal LearningValuing Workforce Members and PartnersAgilityFocus on the FutureManaging for InnovationManagement by FactSocial ResponsibilityFocus on Results and Creating ValueSystems Perspective
Presentation based on NIST MBNQA 2010 Material. Used with Permission.
World-Class Quality
27Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
BrainstormNOTE: All models are wrong; Some are useful.
What are the Weaknesses of Baldrige?••••••••
World-Class Quality
28Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Baldrige Weaknesses - (1)Architectures (Product, Process, etc.)
Configuration Management
Decision Analysis
Defect Prevention
Early Defect Removal
Engineering:• Requirements• Design• Implementation• Test
World-Class Quality
29Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Baldrige Weaknesses - (2)Integrated Product Teams
Lean
Managing Technological Change
Models and Simulation
Process Definition and Maturity
Process Tailoring
Project Management
Risk Management
World-Class Quality
30Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Baldrige SummaryStrengths:• Based on measurable results (450/1000 points)• Has become an industry standard (State
Awards are also based on Baldrige)• Based on performance criteria (best practices)• Has a industry standard assessment method• Award winners are “model organizations”• Cost effective to receive valuable feedback
Weaknesses• Does not address engineering strongly• Does not address maturity/capability levels• Run by mostly by “volunteers”• 80% of organizations do not receive site visits
World-Class Quality
31Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
OutlineIntroduction
Baldrige Overview
Lean Overview
CMMI Overview
Using Lean to Strengthen Baldrige World-Class Quality
Summary
World-Class Quality
32Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Lean ProblemsMost organizations have too much waste (e.g., non-value added).
Most processes have too many “non-value added” steps.
How can organizations focus on “value added” and remove waste?
How can organizations measure value and waste?
Lean is a recent quality approach to help organizations focus on “value” and remove “non-value”.
World-Class Quality
33Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
What is Lean?Lean has its roots in quality and manufacturing, and is a recent popular movement in quality.
“Lean Production” is the name for the Toyota Lean Production System.
The following are major lean references (books):• “The Machine That Changed The World”• “Learning to See”• “The Toyota Way”• “The Toyota Product Development System”• “Lean Thinking”
World-Class Quality
34Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Some Lean Principles - (1)
Establish customer defined value (i.e., identify the “value stream”). Process = “value”.
Continuously eliminate non-value added activities (e.g., waste, rework, defects).
Use leadership and standardization to create a lean culture.
Align your organization through visual communication.
Create an optimized process flow (e.g., “Flow”, “Pull”, “Just-In-Time”, “Leveled”).
World-Class Quality
35Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Some Lean Principles - (2)Use lean metrics to manage the value stream.
Front-Load the process for maximum design space.
Build a learning organization to achieve lean and continuous improvement.
Adapt technology to fit your people and processes.
Strive for perfection through continuous improvement.
World-Class Quality
36Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Why Lean Processes?Reduce Cost, Schedule, and Size: Lean processes are shorter, cost less, and take less time to use.
Better Usability: Lean processes are more usable (require defining “chunks” and labeling them for use).
Better Designs: Lean processes require good process design, definition, and writing principles.
Visual Diagrams: Lean processes are “visual” (e.g., well thought out diagrams or “lean process models”).
Defined Non-Linearly: Designed to find something fast. Lean process models are dynamic and concurrent.
World-Class Quality
37Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Some Lean Success Stories
Toyota - Best lean documented success story in industry (from manufacturing - see references).
Stoner - 2003 Baldrige Recipient. Used lean afterwards and dramatically improved results! (Reference: 2010 Quest for Excellence Conference).
Hewlett Packard - a CMMI success story for software. 25% of the size of a typical CMMI implementation!!!
Lean Early Defect Detection - Averages 7:1 ROI!
World-Class Quality
38Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Advanced Lean: ArchitecturesArchitectures are very powerful because they:
• Are graphical (a picture is worth a 1000 words)
and can be powerful communication tools.
• Provide a framework for how components are related (e.g., interfaces, interdependencies, relationships) and how components fit together.
• Promote reuse (e.g., products, components, requirements, designs, tests, interfaces, etc.) and can improve productivity and quality.
• Can be modeled in an automated tool.
World-Class Quality
39Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
What is an Architecture?Architectures consist of:• Components• Interfaces, interdependencies, and other
relationships among components• Ordering and rules for putting components
together
Simple Architecture Example: Lego’s
Numerous Types of Architectures:• Product and Domain Specific Architectures• Business, Data, Technology, etc. Architectures• Discipline Specific Architectures (e.g., software)• Process Architectures• Documentation Architectures
World-Class Quality
40Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Advanced Lean: ModelsModels are very powerful because they:• Are graphical (a picture is worth a 1000 words)
and can be powerful communication tools.
• Can scale up to complex systems and provide a tool to analyze complex relationships and dependencies.
• Promote reuse (e.g., products, components, requirements, designs, tests, interfaces, etc) and can improve productivity and quality.
• Can be represented in an automated tool, and simulated.
World-Class Quality
41Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
What are Models?Models are abstractions of reality constructed for a (useful) purpose consisting of:• Formal notations and rules for representations• Model components or building blocks• Ways to model interfaces, interdependencies,
and other relationships among the model components
There are numerous modeling languages and tools.
A Few Modeling Examples:• Behavioral Models (e.g., timing, states)• Structural Models (e.g., hierarchy, order)• Functional Models (e.g., input, function, output)• Process Models (e.g., the 5 W’s)
World-Class Quality
42Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
ArchitecturesArchitectures consist of:• Components• Interfaces, interdependencies, and other
relationships among components• Ordering and rules for putting components
together
Simple Architecture Example: Lego’s
Numerous Types of Architectures:• Product and Domain Specific Architectures• Business, Data, Technology, etc. Architectures• Discipline Specific Architectures (e.g., software)• Process Architectures• Documentation Architectures
World-Class Quality
43Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Brainstorm
What are the Strengths of Lean?••••••••••
World-Class Quality
44Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
BrainstormNOTE: All models are wrong; Some are useful.
What are the Weaknesses of Lean?••••••••
World-Class Quality
45Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
OutlineIntroduction
Baldrige Overview
Lean Overview
CMMI Overview
Using Lean to Strengthen Baldrige World-Class Quality
Summary
World-Class Quality
46Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Some CMMI Definitions Maturity Level: A maturity level is a set of related process areas that can be rated by a formal appraisal (e.g., CMMI SCAMPI A) and are performed collectively to achieve a set of goals. “Degree of process improvement across a predefined set of process areas in which all goals in the set are attained.”
Process Area (PA): Process Area is a set of related practices that are performed collectively to achieve a set of goals. “A cluster of related practices in an area that, when implemented collectively, satisfy a set of goals considered important for making improvement in that area.”
Specific Goal (SG): A high level statement of the outcome to be achieved by effective implementation of a group of practices. “A required model component that describes the unique characteristics that must be present to satisfy the process area.”
.
• Adapted from: “CMMI® for Development”, Version 1.2, CMU/SEI-2006-TR-008
World-Class Quality
47Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
CMMI Staged Representation
LevelLevel FocusFocus
Organizational Innovation and DeploymentCausal Analysis and Resolution
Organizational Process PerformanceQuantitative Project Management
Requirements DevelopmentTechnical SolutionProduct IntegrationVerificationValidationOrganizational Process FocusOrganizational Process DefinitionOrganizational Training Integrated Project ManagementRisk ManagementDecision Analysis and Resolution
Requirements Management Project PlanningProject Monitoring and ControlSupplier Agreement ManagementMeasurement and AnalysisProcess and Product Quality AssuranceConfiguration Management
Process AreasProcess Areas
5 Optimizing
4 Quantitatively Managed
3 Defined
2 Managed
ContinuousProcess Improvement
QuantitativeManagement
ProcessStandardization
BasicProjectManagement
1 Initial
Quality andProductivity
Risk
• Slide adapted from Process Program, Software Engineering Institute (SEI)
World-Class Quality
48Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
CMMI Results
• Reference, “Performance Results of CMMI®-Based Process Improvement”, CMU/SEI-2006-TR-004
QuickTime™ and aTIFF (Uncompressed) decompressor
are needed to see this picture.
World-Class Quality
49Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
HP Lean CMMI Success
Reduced Time: A small unit of HP implemented CMMI Maturity Level 3 in about 7 months (an average 4 year effort).
Reduced Money: Cost of about 30-50% of typical cost.
Reduced Size: The lean HP Maturity Level 3 process is about 20-25% of the size of the HP India Process (or a typical CMMI Maturity Level 3 process).
• Olson, Timothy G., Kellum, Julie, and Tufail,Zia., “Rapidly Defining a Lean CMMI Maturity Level 3 Process”, Presentation, NDIA CMMI Conference, 2006.
World-Class Quality
50Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
More Lean CMMI SuccessesAccording to LSI data, the number one compliant from CMMI Maturity Level 3-5 companies is that their process is “not lean”.
LSI has many lean success stories. What are typical Lean CMMI Results?• Processes are 20-25% of the size, and are
more visual and usable.
• CMMI Maturity Levels reached in half of the average time (average 1 year instead of 2 years per level).
• 33-50% of the average cost.
World-Class Quality
51Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
CMMI Strengths & Weaknesses
Strengths:• Has become an industry standard• Based on industry best practices• Based on maturity and capability models• Has a industry standard appraisal method
Weaknesses• Measurable results are not required (way too
much focus on “levels” and “ratings”, and not enough on measurable results)
• Leadership requirements are weak• CMMI model is not lean (too large)• SCAMPI is especially not lean (takes too much
time and is too expensive)
World-Class Quality
52Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
OutlineIntroduction
Baldrige Overview
Lean Overview
CMMI Overview
Using Lean to Strengthen Baldrige World-Class Quality
Summary
World-Class Quality
53Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Lean Strengthens Baldrige
Lean is not required for Baldrige. Baldrige mentions “Lean” one time in the notes.
Stoner - 2003 Baldrige Recipient. Used lean afterwards and dramatically improved results! (Reference: 2010 Quest for Excellence Conference).
Baldrige award winners may not be lean!
One measure of “lean” is “cost of poor quality”.
Advanced “lean”: Architectures and Models.
World-Class Quality
54Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Reference: Quest for Excellence Conference, Washington D.C., 2010.
World-Class Quality
55Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Reference: Quest for Excellence Conference, Washington D.C., 2010.
World-Class Quality
56Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Reference: Quest for Excellence Conference, Washington D.C., 2010.
World-Class Quality
57Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Reference: Quest for Excellence Conference, Washington D.C., 2010.
World-Class Quality
58Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Advanced Lean
Architectures:• Promote “reuse” at the highest level (e.g.,
requirements, design, implementation).• Promote useful “views” of the product,
service, or system (e.g., behavior, structure, data, etc.)
Models:• Promote “lean” processes and procedures• Promote clear communication
Both: Are visual and scale up to complexity
World-Class Quality
59Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
OutlineIntroduction
Baldrige Overview
Lean Overview
CMMI Overview
Using Lean to Strengthen Baldrige World-Class Quality
Summary
World-Class Quality
60Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Quality Maturity
• Based on “The Eternally Successful Organization”, by Crosby, the SEI CMM, the Baldrige Award, & Dilbert Comics
• Acronyms are (COQ=Cost of Quality; BA=Baldrige Award; DCF=Dilbert Correlation Factor; SEI=SEI CMMI)
STAGE
Comatose
ProgressiveCare
Wellness
Prevention
COQ
33%
25%
18%
10%
5%
SUMMARY
“What quality problems?”
“We don’t know why we have quality problems, but they hurt.”
“Management commitment andcontinuous improvement resolve quality problems.”
“Quality planning, control, andimprovement are routine.”
“We know why we have happy customers.”
SEI
IntensiveCare
BA DCF
800
200
400
600
700
5
4
3
2
1100%
80%
60%
40%
20%
World-Class Quality
61Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Vision of “World-Class” Quality results that are planned and measured:• Strong leadership for quality• Processes are “lean” and “value added”• Cost of Poor Quality (COPQ) is 5-10%• 80 - 90% of all defects are removed early• Lean Metrics: Cycle Times, Performance,
Productivity, Quality, ROI, etc., are continuously improving• Customers are satisfied; even delighted• Employees are happy and proud of their work• Processes are mature: Supported by Technology• Most defects are prevented; Strong prevention• Award winning world-class quality (e.g., Deming
Award, Baldrige Award, etc.)
World-Class Quality
62Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
OutlineIntroduction
Baldrige Overview
Lean Overview
CMMI Overview
Using Lean to Strengthen Baldrige World-Class Quality
Summary
World-Class Quality
63Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
SummaryBaldrige and Lean work well together (synergistic).
“All models are wrong; Some are useful.”
The Baldrige Model has strengths and weaknesses; Know the weaknesses of Baldrige.
All quality models have strengths and weaknesses; Know the weaknesses of the quality models you use or are going to use.
Winning the Baldrige Award is just the beginning! Congratulations! But challenge yourself to keep improving!
World-Class Quality
64Training Material Used with Permission and/or Licensed to Lean Solutions Institute, Inc. (LSI)
Apply to Serve as a Baldrige Examiner
• Evaluate Award applicants using the Criteria for Performance Excellence.
• Earn professional development CEUs (accredited by IACET).
• Network with other senior-level professionals from all sectors.
• Learn how organizations improve processes and get world-class results.
• Attend the annual Award Ceremony given by the President of the United States.
• Apply November 5 - January 6 at www.baldrige.nist.gov or call 877-237-9064.
Presentation based on NIST MBNQA 2010 Material. Used with Permission.