Results with Baldrige in Manufacturing

Here's how some manufacturers benefit from using the Baldrige framework.

(links are to organization profiles)

Lockheed Martin Missiles and Fire Control

• Lockheed Martin Missiles and Fire Control (MFC) attained a leading market share and sustained growth in the four years leading to its Baldrige Award in 2012.
• This manufacturer realized cost savings of an estimated $225 million annually through time reductions resulting from process and performance improvement programs in all lines of its businesses.
• MFC's customer loyalty ratings improved 18 percent from 2007 to 2012 to become best in class, with 100 percent of customers saying that they "definitely or probably would select MFC for future business."
• MFC's employee retention rate, considered a measure of employee engagement, reached 95 percent in 2011 and 94 percent in 2012.

MEDRAD

• MEDRAD (a 2010 and 2003 Baldrige Award winner and business of Bayer HealthCare) steadily increased its revenues from $120 million in 1997 to approximately $625 million in 2009.
• MEDRAD sustained its operating income levels per employee in three of the four years preceding its 2010 Baldrige Award, exceeding benchmark group peers.
• The manufacturer also sustained or grew its market in the United States and Europe for most of its products.
• MEDRAD earned overall scores measuring repeat sales and customer referrals that were 60 percent or higher from 2007 to 2010, compared to 50 percent or higher for other organizations nationwide.

Honeywell Federal Manufacturing & Technologies (PDF)

• Overall customer satisfaction reached or exceeded 95%.
• Customer product quality and reliability reached 99.9% for traditional customers and 99% for nontraditional customers.
• 72% of the workforce indicated a "positive environment," compared with 58% for commercial best-in-class manufacturers.
• Use of the Six Sigma Plus Continuous Improvement Model resulted in cost savings from increased productivity and deployed innovations of $23.5 million–$27 million annually.
• Employee volunteer hours averaged roughly 15,000 per year from 2006 to 2009.

Cargill Corn Milling (CCM) (PDF)

• CCM saved more than $15 million from 2006 to 2008 by using ideas generated by employees.
• The error-free delivery rate was 99% or above from 2005 to 2008.
• The operational reliability effectiveness rate, a ratio of actual production to commercial demand, reached 95%—three points shy of the world-class benchmark set by the Society of Maintenance and Reliability Professionals.
• Per-bushel costs held steady from FY2006 to FY2008 even though energy costs increased 50–80%, chemical costs rose 30%, and maintenance costs increased 10%.

Sunny Fresh Foods (PDF)

• After receiving the Baldrige Award in 1999, revenues increased 93%.
• SFF's market share increased while competitors' market share decreased more than 10%.
• Sales per stakeholder (SFF's term for employee) and profit per stakeholder increased 19% from 2001 to 2005.

The Bama Companies, Inc. (PDF)

• Bama's sales increased 72% and total revenue grew from $123 million to $211 million from 1999 to 2004, while sales and revenue in the overall frozen baked goods industry remained relatively flat.
• Profit-sharing payments averaged about $3,000 per year for each employee from 2001 to 2004.

Motorola Commercial, Government & Industrial Solutions Sector (CGISS)

• Employee productivity, measured as sales per employee, increased 32% from 1999 to 2002.
• Overall customer satisfaction and repurchase/recommend satisfaction levels exceeded 88% from 1999 to 2002.
• Return on assets was 7% from 1999 to 2002, when the average return was negative for the telecommunications industry.
• CGISS recycled 57% of its nonhazardous waste and reduced emissions 88% from 1996 to 2002.

Clarke American Checks, Inc.

• Market share increased 50% from 1996 to 2001.
• In 2001, Clarke American implemented more than 20,000 ideas from associates, resulting in a cost savings of about $10 million.
• Surveys of partner organizations consistently showed a 96% satisfaction rate from 1997 to 2001.
• Clarke American's associates averaged 76 hours of training in 2001, more than the average for employees of the best-in-class companies tracked by the American Society for Training and Development.

Resources

Baldrige Excellence Framework
Testimonials From Manufacturing
Baldrige Case Study