Using the Baldrige Quality Award process to Improve Quality in Your Business

Introductions  Dr. E. Denise Smith, CPA  21 years in hospital administration, worked with physician offices, home health agencies, hospice, nursing homes  Rural and large systems, not-for-profit and for profit  7 years on faculty of Godbold School of Business, Gardner-Webb University

What is Quality?  degree of excellence  superiority in kind  a distinguishing attribute  Synonyms: caliber (or calibre), class, grade, ratecaliber (or calibre), class, grade, rate  Antonyms:baseness, commonness, inferiority, lowlinessbaseness, commonness, inferiority,

How do you know quality when you see it?

Do we expect high quality in….  Cellphones?  Automobiles?  Laptops?  Drinking water?  Education?  Nursing homes?  Healthcare?

Cost of Quality  It’s a term that's widely used – and widely misunderstood.  The "cost of quality" isn't the price of creating a quality product or service. It's the cost of NOT creating a quality product or service.  Every time work is redone, the cost of quality increases. Obvious examples include:  The reworking of a manufactured item.  The retesting of an assembly.  The rebuilding of a tool.  The correction of a bank statement.  The reworking of a service, such as the reprocessing of a loan operation or the replacement of a food order in a restaurant.  In short, any cost that would not have been expended if quality were perfect contributes to the cost of quality.

In the long run, quality problems can cost companies far more than just the cost to fix the initial problem. There are also problems with disruption of manufacturing, drug shortages, and competitors capitalizing on these issues to gain more market share.

Systematic Approaches to Improving Quality The Baldrige Criteria address all key areas of a manufacturing business and are compatible with other performance improvement initiatives, such as ISO 9000, Lean, and Six Sigma. Using the Baldrige framework, you can organize and integrate these approaches, improve productivity and effectiveness, and pursue performance excellence.

Baldrige Criteria for Performance Excellence Categories 1 Leadership 2 Strategic Planning 3 Customer Focus 4 Measurement, Analysis, and Knowledge Management 5 Workforce Focus 6 Operations Focus 7 Results

Baldrige Hamburger!

How can Baldrige Criteria help? Regardless of what your business is, the Baldrige Criteria are a valuable framework for measuring performance and planning in an uncertain environment. The Criteria help businesses achieve and sustain the highest national levels of:  Customer satisfaction, engagement, and loyalty  Product and service outcomes, and process efficiency  Workforce satisfaction and engagement  Revenue and market share  Social responsibility

FROM FIGHTING FIRES TO INNOVATION: AN ANALOGY FOR LEARNING

STEPS TOWARD MATURE PROCESSES

Manufacturing Award Winners  2012: Lockheed Missiles and Fire Control, Dallas, TX  2010: Medrad,Inc., PA; Nestle Purina PetCare Co., MI  2009: Honeywell Federal Manufacturing & Technologies, LLC, MO  2008 Cargill Corn Milling, MN  2005 Sunny Fresh foods, Inc., MN

Small Business Award Recipients  2012: MESA Products, Inc., OK  2010: Freese and Nichols, Inc., TX; K&N Management, ; Studer Group, FL  2009: MidwayUSA, MO  2007 PRO-TEC Coating Company, OH

Healthcare Recipients  2012: North Mississippi Health Services, MS  2011: Henry Ford Health System, MI; Schneck Medical Center, ID; Southcentral Foundation, AK  2010: Advocate Good Samaritan Hospital, IL  2009: AtlantiCare, NJ

Nonprofit Recipients  2012: City of Irving, TX  2011: Concordia Publishing House, St. Louis MO  2009: VA Cooperative Studies Program Clinical Research Pharmacy Coordinating Center  2007: City of Coral Springs, FL; US Army Armament Research, Development and Engineering Center (ARDEC)

Education Recipients  2010: Montgomery County Public Schools, Rockville, MD  2008 Iredell-Statesville Schools, NC

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Questions?  FOR ADDITIONAL INFORMATION CONTACT  Dr. Denise Smith  