Quality and Operations

Management

MS&E269
Malcolm Baldrige
National Quality Award
 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
 Award Categories
1994 2001
Manufacturing Business
Service Service
Small Business Small Business
Education
2 winners per category Health Care

3 winners per category

 MBNQA Winners
1988Motorola Inc., Commercial Nuclear Fuel
Division of Westinghouse Electric Corp., and Globe
Metallurgical Inc.
1990Cadillac Motor Car Division, IBM Rochester,
Federal Express Corp., and Wallace Co. Inc.
1992AT&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.
1994AT&T Consumer Communications Services,
GTE Directories Corp., and Wainwright Industries
Inc.
1996ADAC Laboratories, Dana Commercial Credit
Corp., Custom Research Inc., and Trident Precision
Manufacturing Inc.
1998Boeing Airlift and Tanker Programs, Solar
Turbines Inc., and Texas Nameplate Co., Inc.
2000Dana Corp.-Spicer Driveshaft Division,
KARLEE Company, Inc., Operations Management
International, Inc., and Los Alamos National Bank
1989Milliken & Co. and Xerox Corp. Business
Products and Systems
1991Solectron Corp., Zytec Corp., and Marlow
Industries
1993Eastman Chemical Co. and Ames Rubber
Corp
1995Armstrong World Industries Building
Products Operation and Corning
Telecommunications Products Division
19973M Dental Products Division, Solectron
Corp., Merrill Lynch Credit Corp., and Xerox
Business Services
1999STMicroelectronics, Inc.-Region Americas,
BI, The Ritz-Carlton Hotel Co., L.L.C., and Sunny
Fresh Foods
Service
Manufacturing
Small Business
 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
 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
 Criteria Characteristics
Results oriented
Non-prescriptive
Assessment
Diagnostic
 A-D and R
Approach
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
Four Stage
Review Process
 Leadership
1.1 Senior Executive Leadership
1.2 Management for Quality
1.3 Public Responsibility and Corporate
Citizenship
 Leadership
Values and Expectations
Empowerment and Innovation
Performance Reviews
Findings and Improvement
Regulatory, Legal, Ethical Responsibilities
Support of Key Communities
 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
 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
 Strategic Quality Planning
3.1 Strategy Quality and Company
Performance Planning Process
3.2 Quality and Performance Plans
 Strategic Quality Planning
Strategy Development
Strategy Objectives and Timelines
Actions Plans and Measures
Human Resource Plans
Performance Projections
 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
 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
 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
 Management of Process Quality
Design Processes
Production and Delivery Processes
Key Supplier Products and Services
Key Support Processes
Requirements and Measures
Evaluation and Improvement
 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
 Quality and Operational Results
Customer Evaluations
Operational, Financial and Market Performance
Strategy-driven Results
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
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
 Leadership
Symbolism
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
 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
 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
 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?
 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
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?
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