Malcolm Baldrige National Quality Award

SCM 462 Dr. Ron Tibben-Lembke

How We Got Here

National conference on Productivity, 1982 7 conferences leading up to White House Conference on Productivity August 20, 1987 Award created
Stimulate companies to improve quality and productivity Recognize success to be example to others Guidelines for companies to assess progress

Malcolm Baldrige

1981-87 secty. of Commerce.

Proponent of quality management as key to US economic survival Helped draft early version of quality act Resolved technology transfer differences with China and India First Cabinet-level meetings with Soviet Union in 7 years

Paved way for increased access for US firms

Champion Roper

National Cowboy Hall of Fame

July 25, 1987 N. California rodeo Horse threw him, fell on him, and crushed him

Why Start?

If you win, yes Fame and Fortune are yours If you apply, free consulting from really good people
300 hours spent looking at your application 50 page report: strengths, weaknesses

What Winners Say

OMI

SSM Healthcare

Voice of the Customer

People whove tried it like it

Not a Silver Bullet

Wallace Co., won in 1990, bankruptcy protection in 1992

Houston, TX, pipes, valves for oil & chemical plants 2 competitors closed up, customers bought their inventory Highly leveraged

1991 IBM Rochester bad year in 1992 1990 Cadillac closed plants over low sales, labor costs

Each category has several items (18 total), and each item has several areas to address

Point Values

ADLI = Approach, Deployment, Learning, Integration

How to Get Started

Questionnaires (10 minutes) Are we making progress? Are we making progress as leaders? 40 questions

Online Assessment

Easy Insight Online assessment

How much information do you have? How much have you thought about strategy and operations and your customer? Help you figure out where to start digging

Self-Analysis

Categories

Manufacturing Service Small Business Education (added 1999) Health Care (added 1999) Nonprofit (2005)

Application Process

Questionnaires for company and management Online assessment

Application process

Self-Assessment, Application turned in Consensus Review: Initial screen by independent Board of Examiners (8) Site Visit Review by teams of examiners

Verify information, get questions answered Written summary of strengths, areas for improvement

300 volunteer examiners U.S.-Based companies only Winners agree to spread the word about quality

Preparing the Application

Organizational profile describes org. and challenges

Maybe need more information, identified problems, work on those first Action plan for improvement

Category teams: info & data on area

Senior leaders, champions, teams evaluate how to improve process for future

10-step Process
1. 2. 3. 4.

Boundaries of org. to be assessed Champions for each area Decide format & scope for self-assessment Senior leaders, champions prepare Org. Profile

Organizational profile describes org. and challenges & environment Common understanding of what is important System for improvement, strategic challenges Go directly to 9 develop & implement improvement plan

10-step process
5.

Practice self-assessment with champions

Use Item 1.1 Criteria for Performance Excellence See if meeting goals, on track

6.

Champions select category teams

3-5 enthusiastic team members, different levels Maybe outside organization being studied Read the criteria, gather data, write an analysis Explain how approaches used throughout org.

10-step process
7.

8.
9.

Share findings among teams, stengths & weaknesses Prioritize key strengths and areas to improve Develop and implement action plan for improvement
Who will lead each step, what is to be accomplished, progress dates, how progress will be measured

10.

Evaluate and improve your self-assessment and action process

Leadership

Examines how senior executives guide the company and how the company addresses its responsibilities to the public and practices good citizenship. 1.1 Organizational Leadership 1.2 Social Responsibility

Strategic planning

Examines how the company sets strategic directions and how it determines key action plans. 2.1Strategy Development 2.2 Strategy Deployment

Customer and market focus

Examines how the company determines requirements and expectations of customers and markets. 3.1Customer and Market Knowledge 3.2 Customer Relationships and Satisfaction

Information and analysis

Examines the management, effective use, and analysis of data and information to support key company processes and the companys performance management system. 4.1Measurement and Analysis of Organizational Performance 4.2 Information and Knowledge Management

Human resource focus

Examines how the company enables its workforce to develop its full potential and how the workforce is aligned with the companys objectives. 5.1 Work Systems 5.2 Employee Learning and Motivation 5.3 Employee Well-Being and Satisfaction

Process management

Examines aspects of how key production/delivery and support processes are designed, managed, and improved. 6.1V alue Creation Processes 6.2 Support Processes

Business results

Examines the companys performance and improvement in its key business areas:

customer satisfaction, financial and marketplace performance, human resources, supplier and partner performance, and operational performance.

The category also examines how the company performs relative to competitors.

better market performance, gains in market share, and customer retention and satisfaction

The Trophy

Malcolm Baldrige DoubleWinner #1: Solectron

1991

1997

Malcolm Baldrige DoubleWinner #1: Solectron

1991, 1997

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Two Great Honors

For attention to quality What lovely trophies Anyone notice anything?

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Oopsie! I guess somebodys processes arent under control

Quality Competitions in Japan

Deming Prize (Japan) Named after noted quality expert Established in 1950 Florida Light & Power, AT&T

Other Awards

Rajiv Ghandi award India, 1991 40+ US states have prizes Many state winners win BNQA

Is Baldrige a U.S. version of Japans Deming award?

The basic purposes of both awards are the same:

to promote recognition of quality achievements and to raise awareness of the importance and techniques of quality improvement. focuses more on results and service, relies upon the involvement of many different professional and trade groups, provides special credits for innovative approaches to quality, includes a strong customer and human resource focus, and stresses the importance of sharing information.

However, the Baldrige Award:

Baldrige vs. ISO 9000

Purpose of MBNQA to enhance US competitivenes Promotes quality awareness, recognizes achievements of US companies Vehicle for sharing success strategies ISO covers less thatn 10 percent of the Baldrige award criteria Many apply, few are selected MBNQA not required for business

Six Sigma, ISO, BNQA

Six Sigma

concentrates on measuring product quality and improving process engineering. drives process improvement and cost savings. is a product/service conformity model for guaranteeing equity in the marketplace. concentrates on fixing quality system defects and product/service nonconformities. focus on performance excellence for the entire organization in an overall management framework. identify and track all-important organizational results: customer, product/service, financial, human resource, and organizational effectiveness.

ISO 9001:2000 Registration

Baldrige Criteria for Performance Excellence