1. Quality and Operations Management
MS&E269
Malcolm Baldrige
National Quality Award

2. Core Values Customer-driven Quality Leadership
Continuous Improvement and Learning
Employee Participation and Development
Fast Response
Design Quality and Prevention
Long-range View of the Future
Management by Fact
Partnership Development
Corporate Responsibility and Citizenship
Results Orientation

3. Award Categories 1994 2001 Manufacturing Service Small Business
2 winners per category
2001
Business
Service
Small Business
Education
Health Care
3 winners per category

4. MBNQA Winners
1988—Motorola Inc., Commercial Nuclear Fuel Division of Westinghouse Electric Corp., and Globe Metallurgical Inc.
1990—Cadillac Motor Car Division, IBM Rochester, Federal Express Corp., and Wallace Co. Inc.
1992—AT&T Network Systems Group/ Transmission Systems Business Unit, Texas Instruments Inc. Defense Systems & Electronics Group, AT&T Universal Card Services, The Ritz-Carlton Hotel Co., and Granite Rock Co.
1994—AT&T Consumer Communications Services, GTE Directories Corp., and Wainwright Industries Inc.
1996—ADAC Laboratories, Dana Commercial Credit Corp., Custom Research Inc., and Trident Precision Manufacturing Inc.
1998—Boeing Airlift and Tanker Programs, Solar Turbines Inc., and Texas Nameplate Co., Inc.
2000—Dana Corp.-Spicer Driveshaft Division, KARLEE Company, Inc., Operations Management International, Inc., and Los Alamos National Bank
1989—Milliken & Co. and Xerox Corp. Business Products and Systems
1991—Solectron Corp., Zytec Corp., and Marlow Industries
1993—Eastman Chemical Co. and Ames Rubber Corp
1995—Armstrong World Industries Building Products Operation and Corning Telecommunications Products Division
1997—3M Dental Products Division, Solectron Corp., Merrill Lynch Credit Corp., and Xerox Business Services
1999—STMicroelectronics, Inc.-Region Americas, BI, The Ritz-Carlton Hotel Co., L.L.C., and Sunny Fresh Foods
Service
Manufacturing
Small Business

5. Changing Award Criteria
1991
Leadership, 100
Information and Analysis, 70
Strategic Quality Planning, 60
Human Resource Util., 150
Quality Assurance of Products/Services, 140
Quality Results, 180
Customer Satisfaction, 300
1994
Leadership, 95
Information and Analysis, 75
Strategic Quality Planning, 60
Human Resource Devel., 150
Management of Process Quality, 140
Quality and Operational Results, 180
Customer Focus/Satis., 300

6. Changing Award Criteria
1995
Leadership, 90
Information and Analysis, 75
Strategic Planning, 55
Human Resource Devel. and Management , 140
Process Management, 140
Business Results, 250
Customer Focus/Satisfaction, 250
2001
Leadership, 120
Information and Analysis, 90
Strategic Planning, 85
Human Resource Focus, 85
Process Management, 85
Business Results, 450
Customer and Market Focus, 85

7. Criteria Characteristics
Results oriented
Non-prescriptive
Assessment
Diagnostic

8. A-D and R Approach Deployment Results
how the application addresses the item
appropriateness
effectiveness
evidence of innovation
Deployment
extent to which approach is applied
use of approach in business requirements
use of approach by all appropriate units
Results
outcomes
current performance levels
performance levels relative to comparisons/benchmarks
rate and breadth of performance improvements
demonstration of sustained improvement

9. Four Stage
Review Process

10. Leadership 1.1 Senior Executive Leadership 1.2 Management for Quality
1.3 Public Responsibility and Corporate Citizenship

11. Leadership Values and Expectations Empowerment and Innovation
Performance Reviews
Findings and Improvement
Regulatory, Legal, Ethical Responsibilities
Support of Key Communities

12. Information and Analysis
2.1 Scope and Management of Quality and Performance Data and Information
2.2 Competitive Comparisons and Benchmarking
2.3 Analysis and Use of Company-level Data

13. Information and Analysis
Selection and Integration of Measures / Indicators
Comparative Data and Information
Reliability
Currency w.r.t. Changing Needs
Senior Executive Reviews and Planning
Functional-level Decisions
Daily Operational Support

14. Strategic Quality Planning
3.1 Strategy Quality and Company Performance Planning Process
3.2 Quality and Performance Plans

15. Strategic Quality Planning
Strategy Development
Strategy Objectives and Timelines
Actions Plans and Measures
Human Resource Plans
Performance Projections

16. Human Resource Development and Management
4.1 Human Resource Planning and Management
4.2 Employee Involvement
4.3 Employee Education and Training
4.4 Employee Performance and Recognition
4.5 Employee Well-being and Satisfaction

17. Human Resource Development and Management
Short and Long Term Key Needs
Employee Education, Training and Development
Delivery and Reinforcement
Safe Work Environment
Support and Motivation
Satisfaction Determination
Improvement Priorities

18. Management of Process Quality
5.1 Design and Introduction of Quality Products and Services
5.2 Process Management: Product and Service Production and Delivery Processes
5.3 Process Management: Business and Support Service Processes
5.4 Supplier Quality
5.5 Quality Assessment

19. Management of Process Quality
Design Processes
Production and Delivery Processes
Key Supplier Products and Services
Key Support Processes
Requirements and Measures
Evaluation and Improvement

20. Quality and Operational Results
6.1 Product and Service Quality Results
6.2 Company Operational Results
6.3 Business and Support Service Results
6.4 Supplier Quality Results

21. Quality and Operational Results
Customer Evaluations
Operational, Financial and Market Performance
Strategy-driven Results

22. Customer Focus and Satisfaction
7.1 Customer Expectations: Current and Future
7.2 Customer Relationship Management
7.3 Commitment to Customers
7.4 Customer Satisfaction Determination
7.5 Customer Satisfaction Results
7.6 Customer Satisfaction Comparison

23. Customer Focus and Satisfaction
Customer Groups and Market Segments
Listening and Learning Strategies
Important Product and Service Features
Business Needs and Directions Currency
Accessibility and Complaint Management
Building Relationships
Competitive Performance

24. Leadership Symbolism Systems Results Issues is it talk or walk
what is the visible role for management
Systems
Results
hard to measure
Issues
is there to much going on at one time
increase weight of category

25. Information and Analysis
Key purposes
Use of Info Sys to achieve quality goals
Reporting/feedback to support quality
Competitive Analysis/Benchmarks
Approach and deployment orientation
Key is the choice of indicators to track and relationship to critical business drivers
Applicant can improve scores simply through wordsmanship, clarity of submission
During site visit easier to observe actuals than statements on application

26. Strategic Quality Planning
Category design intent: aggressive, concrete goals,
short term / long term
horizontal and vertical integration
Expect to see documented fundamentals
Demonstrated understanding of industry
On-site review best at determining validity of submission
Shortcoming: deployment to suppliers
Long-term planning not concrete wrt to rollout and method
Components are satisfactory, burden on Great Northern
Need more emphasis on long-term success and results

27. Human Resource Development
Does the documentation match / support the results
too much on deployment, not enough on results
“50 ways to please a …”
What about near-term programs?
Timeline on result goals not clear
Overly focused on individuals vs. teams
Results and categories are ambiguous
Warm fuzzies or real processes?
Wish upon a star
Needs and feelings survey
How can tangible evidence be demonstrated?

28. Management of Process Quality
Rationale: is process preventive or reactive
Design of service/product offerings
Monitoring matrix
Pushed down to each department
Use of analysis tools -- business process mapping
Processes in place
BLERA
QSEG
BLI
Use of mainstream process management methods
Recommendations, timelines, champions identified
weak on follow-up

29. Quality and Operational Analysis
System represents linking performance results to quality progress
Repetition in indicators
Overall completeness lacking
weakness on benchmarking
Can metrics be compared across industries?

30. Customer Focus and Satisfaction
Relative balance in 1994 between AD & R
Looking for commitment, proactive behaviors
Are results comprehensive wrt all numbers and metrics?
Who determines what the correct response level is vs. customer expectations and comparisons to industry
Focus is based on own customers, hence how do you apply and compare benchmark data with different populations