Ch-5 (Quality Awards)

5-1 Excel Books Total Quality Management Text and Cases G Nagalingappa, Manjunath V S
Copyright 2010, G Nagalingappa, Manjunath V S

Quality Awards
CH-5
Chapter
5
Quality
Awards
Quality Awards
CH-5
Introduction
The popular awards which have contributed for
development best quality practices in the world include
MBNQA, Deming award, European Quality Award etc.
The Toyota gained as result of positive learning's
from winning Deming Award.
Quality Awards
CH-5
Cont.
The Malcolm Baldrige National Quality Award
(MBNQA)
The Malcolm Baldrige National Quality Award (MBNQA) is presented annually
by the President of the United States to organizations that demonstrate
quality & performance.
Three awards may be given annually in each of six categories:
1. Manufacturing
2. Service company
3. Small business
4. Education
5. Healthcare
6. Nonprofit
Quality Awards
CH-5
Malcolm Baldrige National Quality Award
The award is open to small (less than 500 employees) and
large firms (more than 500 employees) in the
manufacturing and service sectors.
It is not open to public-sector and not-for-profit
organizations.
There can be only two winners per category each year,
which limits the number of yearly awards to six.

Quality Awards
CH-5
Established by US Congress in 1987 for
manufacturers, service business & small
business, the Baldrige Award was designed to
raise awareness of quality management &
recognize US companies that have
implemented successful QMS.
The education & healthcare categories were
added in 1999. A govt & non-profit category
was added in 2007.

About MBNQA
Quality Awards
CH-5
The Baldrige is named after the late Secretly of
Commerce Malcolm Baldrige, a proponent of
quality management. The US Commerce
Departments National Institute of Standards
and Technology manages the award and ASQ
administers.
Quality Awards
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Purpose of MBNQA

The intention of this award
1. Helping to stimulate American companies to
improve quality & productivity for the pride
of recognition while obtaining a competitive
edge through increased profit.
2. Recognizing the achievements of those
companies that improve the quality of their
goods & services & provide an example to
others.
Quality Awards
CH-5
Purpose of MBNQA

The intention of this award
3. Establishing guidelines & criteria that can be used by
business, industrial, governmental & other
organizations in evaluating their own quality
improvements efforts.
4. Providing specific guidance to other American
organizations that wish to learn to manage high
quality, by making available the detailed
information on how winning organizations were
able to change their cultures & achieve reputation.
Quality Awards
CH-5
Key Characteristics of the MBNQA

The criteria focus on business results. Companies must
show outstanding results in a variety of areas to win.
The Baldrige criteria are non-prescriptive and adaptive.
Although the focus on the Baldrige is on results, the means
for obtaining these results are not prescribed.
The criteria support company-wide alignment of goals and
processes.
The criteria permit goal-based diagnosis. The criteria and
scoring guidelines provide assessment dimensions.

Quality Awards
CH-5
2
Strategic
Planning
3
Customer and
Market Focus
5
Human
Resource
Focus
6
Process
Management
7
Business
Results
4
Information and Analysis
1
Leadership
Malcolm Baldrige Quality Award Criteria Framework
Quality Awards
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Categories Points
Leadership 120
Strategic Planning 85
Customer and Market Focus 85
Information and Analysis 90
Human Resource Focus 85
Process Management 85
Business Results 450
Total 1000
Quality Awards
CH-5
Baldridge criteria for perforamce.
1. Leadership:
How upper management leads the organization,
and how the organization leads within the
community.
It examines how the senior leaders address
values, direction & performance expectations
as well as focus on customers & other
stakeholders.
It examines the governance of the organization
& its social & community responsibilities.
Quality Awards
CH-5
2. Strategic planning:
How organization establishes & plans to implement
strategic directions. This objective examines how
chosen objectives and plans are developed and how
the progress is measured.
3. Customer & market focus:
How the organization builds & maintains strong, lasting
relationship with customers. It focuses on how the
organization determines the customer requirements,
expectations & preferences, how it determines the
key factors leading to customer acquisition,
satisfaction, loyalty, retention & business expansion.

Quality Awards
CH-5
4. Measurement, analysis, & Knowledge
management:
How organization uses data to support key
processes & manage performance. This
includes how an organization selects, gathers,
analyzes, manages & improves its data
information & knowledge assets.

Quality Awards
CH-5
5. Human Resource focus:
How the organization empowers & involves its
workforce.
It focuses on employees motivation & participation,
development of employees to their full potential, &
their contribution to organizational objectives.
It also examines the efforts to build a work environment
& employee support environment which can bring
performance excellence leading to personal &
organizational growth.
Quality Awards
CH-5
6. Process management:
How the organization designs, manages and
improves key processes.
This includes key products, services &
business processes for creating customer &
organizational value, & key support processes
involving all work units.
Quality Awards
CH-5
7. Business/organizational performance results:
How the organization performs in terms of
customer satisfaction, finances, human
resources, suppliers & partner performance,
operations, governance & social responsibility
& how the organization compares with its
competitors.
Quality Awards
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Winners of MBNQA Award
Year 2008:
Manufacturing: Cargill Corn North America
Wayzata, Minn.
Healthcare: Poudre Valley Health System Ft. Collins,
Colo.
Education: Iredell-Statesville Schools Statesville,
N.C.
The other popular companies who won MBNQA
include Motorola, Xerox Corporation, IBM, Texas
Instruments.
Quality Awards
CH-5
Cont.
Deming Prize
The late Dr. W. E. Deming (1900-1993), one of the
foremost experts of quality control in the United States,
was invited to Japan by the Union of Japanese Scientists
and Engineers (JUSE) in July 1950.
Deming Prize
Awarded to individuals and groups who have
contributed to the field of quality control.

Quality Awards
CH-5
Deming Prize for Quality
Deming Prize
The Deming Prize for quality was established in 1951 by
the Japanese Union of Scientists and Engineers (JUSE).
Three categories of awards
Deming Application Prize for Division
Deming Application Prize for Small Business
Quality Control Award for Factory
There is no limit on the number of companies that can
receive the award in a given year.
The Deming Prize is much more focused on processes than
is the Baldrige.

Quality Awards
CH-5
Cont.
Categories of Award
Categories of Deming Prize
The Deming Prize for
Individuals
Given to those who have made outstanding
contributions to the study of TQM or statistical methods
used for TQM, or those who have made outstanding
contributions in the dissemination of TQM.
The Deming Application
Prize
For organizations or divisions of organizations that
manage their business autonomously.
Given to organizations or divisions of organizations that
have achieved distinctive performance improvement
through the application of TQM in a designated year.
The Quality Control Award
for Operations Business
Units
For operations business units of an organization.
Given to operations business units of an organization
that have achieved distinctive performance
improvement through the application of quality
control/management in the pursuit of TQM in a
designated year.
Quality Awards
CH-5
Cont.
On-Site
Examination
Schedule A
(Applicant Company
Initiated)
Schedule B
(Examiner Initiated)
Executive Session
Operational Site
Presentations
Review Materials
Examination at
the Operational Site
General
Question and
Answer Session
Reference
Examination
(as needed)
Important TQM
Practices
Presentations
Quality Awards
CH-5
Assessment Procedure:
Has 10 major categories with each major
category subdivided into subcategories.
The evaluation process is highly cumbersome.
Allowing applicant companies to emphasis on
practices.
The examiner are free & authorized to
interview & question heads of the
department.

Quality Awards
CH-5
Deming Prize Winner
Year 2008:
The Deming prize for Individuals:
Masahiro Sakane, Chairman, Komatsu Limited.
The Deming Application Prize:
Tata Steel Limited (India).
Year 2007:
The Japan Quality Medal
Mahindra & Mahindra Limited, Farm Equipment
Sector (India)
Quality Awards
CH-5
Deming Prize Winner
Year 2007:
The Deming Application Prize:
Asahi India Glass Limited, Auto Glass Division
(India)
Rane (Madras) Limited (India)
The Quality Control Award for Operations
Business Units.
Reliance Industries Limited, Hazira
Manufacturing Division (India)
Quality Awards
CH-5
European Quality Award (EQA)

European Quality Award (EQA)
The highest level is the EQA for the
most accomplished applicant in a given
year.
The second level given is the European
Quality Prize for other firms that meet
the award criteria.
Quality Awards
CH-5
People
Management
9 %
Policy and
Strategy 8 %
Resources
9 %
Process
14 %
People
Satisfaction
9 %
Customer
Satisfaction
20 %
Impact on
Society 6 %
Business
Results
15 %
Enablers Results
Leadership
10 %
European Quality Award
Quality Awards
CH-5
Cont.
Golden Peacock Award
The Golden Peacock National Quality Award named after Indias
national bird the peacock is, awarded every year.
This award is regarded as Indias Malcolm Baldrige Quality Award,
which is recognition for quality.
The award is presented by the Quality Council of India (QCI).
Quality Awards
CH-5
Normal Categories
Large Enterprise: 251 & > employees
Medium Enterprise: 51-250 employees
Small Enterprise: Up to 50 employees
Quality Awards
CH-5
Special categories:
1. Education, training, research & development,
testing & inspection.
2. Services sectors covering tourism, transport,
couriers hotels & hospitality healthcare,
telecommunication, professional
consultancies, financial institutions.
3. Government organizations, undertakings and
services.
Quality Awards
CH-5
Cont.
Strategic
Planning
80 Points
8 %
Human
Resource
Management
100 Points
10 %
Information
Management
80 Points
8 %
Process
Management
120 Points
12 %
Employee
Satisfaction
100 Points
10 %
Customer
Satisfaction
150 Points
15 %
Impact on
Society
100 Points
10 %
Business
Results
150 Points
15 %
Enablers 500 Points 50 % Results 500 Points 50 %
Organizational
Leadership
120 Points
12 %
Golden Peacock National Quality Award Model
Quality Awards
CH-5
Cont.
Past Winners of Golden Peacock National Quality Award
Year 2007
1. Ordnance Factory, Indian Ordnance Factories, Medak
2. Bhilai Steel Plant, Steel Authority of India, Bhilai
3. Mathura Jalandhar Pipeline, Indian Oil Corporation Limited, New Delhi
4. Mahindra and Mahindra Limited, Farm Equipements Sector, Mumbai
5. Aditya Birla Insulators, West Bengal
6. Reliance Energy Limited
7. Tata Sponge Iron Limited, Orissa
8. Mahindra Lifespace Developers Limited, Pune
Quality Awards
CH-5
Year 2005
1. Bharat Petroleum Corporation, Refinery division
2. National Thermal Power Corporation, National Capital Power Station
3. ITC Limited, ILTD Division
4. Coach Rehabilitation workshop, Western Central Railway
5. Manipal Hospital, Bangalore

Ch-5 (Quality Awards)

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5-1 Excel Books Total Quality Management Text and Cases G Nagalingappa, Manjunath V S

Copyright 2010, G Nagalingappa, Manjunath V S

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