Gunjan Khurana

Prateek Mehrotra

Karan Bhatti

Vivek M.

BALDRIGE QUALITY AWARDS

INTRODUCTION :

BALDRIGE QUALITY AWARDS is the highest recognition of quality in USA.

This award improves the competitiveness and is sponsored by the National Institute of Standards and Technology (NIST).

“THE BALDRIGE”, as the name suggests, believed to boost the quality and economic levels of the entire country.

HISTORY :

The MALCOLM BALDRIGE NATIONAL QUALITY AWARD PROGRAM (MBNQAP) is named after the former US Secretary of state Malcolm Baldrige, who held the position from 1981 until his death in 1987.

He has a personal interest in quality management and improvement and helped to design a draft of the award program before his death.

That year, Congress established the official award program to recognize U.S. manufacturing and service organizations of any size for their achievements in quality and named it in his honor.

THE GOALS ::::::

The Malcolm Baldrige Award promoted 4 goals :

1. Helping to stimulate the American Companies to improve quality & productivity for the pride of recognition.

2. Recognizing the achievements of those companies that improve the quality of their goods & services & provide an example to others.

3. Establish guidelines and criteria that can be used by businesses, industries, governmental & other organizations in evaluating their own quality improvement efforts.

4. Providing specific guidance to other American organizations with wish to learn how to manage high quality and how the winning organizations were able to change their cultures & achieve eminence.

THE TROPHY ::::

• A 14-inch solid crystal with a metal embedded on it.

•On the one side with the Presidential seal and on the other side with the name of the award and the phrase

‘ The Quest for Excellence’

ELIGIBILITY :

Until 1999, only manufacturing and service organizations were eligible to apply for BALDRIGE AWARDS

Mid 90s, 2 new categories were added – education and health care.

From 1988 to present :

58 organizations have earned Baldrige Awards, including :

24- manufacturing organizations

14- small businesses

13- service companies

4 – educational institutions

3 - health care organizations

Now, there is a push to enable non-profit organizations to apply for the award.

CRITERIA :

There are 7 key indicators of success, which is known as the ‘ 7-Pillars of the Baldrige quality Framework’.

Winners are selected on 1000-point scale basis for their achievement in all categories, so if one indicator is lacking, the chances of winning a Baldrige is decreases.

Each category has a specific weightage. These categories are :

1. Leadership (9.5%)

2. Information and Analysis (7.5%)

3. Strategic Quality Planning (6%)

4. Human Resource Development & Management (15%)

5. Management of Process Quality (14%)

6. Quality and Operational Results (18%)

7. Customer Focus and Satisfaction (30%)

System

Driver

Measurement of Progress

Goal

1. Leadership(9.5%)- 95 points

Total points = 1000

2. Information & Analysis (7.5%)75 points

3. Strategic Quality Planning (6%)- 60 points

4. HRD & Management (15%) – 150 points

5. Management of process quality (14%)- 140 points

6. Quality & operational result (18%)- 180 points

7. Customer focus & satisfaction (30%)- 300 points

Assessment Criteria of the Malcolm Baldrige National Quality Awards

DISCUSSIONS OF KEY FACTORS IN DETAIL :

1.LEADERSHIP

Senior Leadership

Govt. & Social responsibilities.

Senior Leadership :

..How senior leader’s action guide and sustain your performance?

..How they communicate with your workforce to encourage high performance?

Government & Social responsibilities :

..How do you govern & fulfill your social responsibilities?

..How does your organization’s review & achieve the following key aspects of your governance system :

1. Accountability for management’s action.

2. Fiscal Accountability.

3. Protection of stakeholders and stock holders’ interests, as appropriate.

2. STRATEGY PLANNING

STRATEGY DEVELOPMENT

STRATEGY DEPLOYMENT

Strategy Development :

..How do you develop your strategy?

..How your organization conduct its strategic planning?

..What are the key steps?

..Who are the key participants?

..How do you determine your core competencies?

Strategy Deployment :

..How your organization converts its strategic objectives into action plans?

..What are the key long run and short term plans?

..How do you deploy your action plans?

3. CUSTOMER FOCUS

CUSTOMER ENGAGEMENT

VOICE OF THE CUSTOMER

Customer Engagement :

..How your organization determines product offerings & mechanisms to support customer use your products?

..How you identify and innovate product offerings?

..How do you build customer relations?

Voice Of Customer :

..How an organization listens to its customers?

..How customer informations used to improve your market place success?

..How does your customer complaints management process that complaints are resolved effectively and promptly?

4. MEASUREMENT ANALYSIS &

KNOWLEDGE MGMT.

Improvement of Organization’s performance

Mgmt. of information knowledge & IT

Improvement of Organization’s Performance :

..How your organization measures, analyze, receives & improve its performance through the use of data & informations at all levels

& its all parts of your organization?

Management of Information , Knowledge & IT :

..How your organization ensures the quality and availability of needed data, information, software & hardware for your work force, suppliers, partners, collaborators & customers?

..How your organization builds and manages its knowledge assets?

5. WORK FORCE FOCUS

WORKFORCE ENGAGEMENT

WORKFORCE ENVIRONMENT

Workforce Engagement :

..How your organization engages, compensates and rewards your workforce to achieve high performance?

..How members of your workforce are developed to achieve high performance?

..How your access workforce engagement use result to achieve high performance?

Workforce Environment :

..How your organization manages workforce capability and capacity to accomplish the work of organization?

..How your organization maintains, safe, supportive and secure work climate?

6. PROCESS MANAGEMENT

WORK SYSTEMS

WORK PROCESSES

Work Systems :

..How your organization decides its work systems and determines its key processes to deliver customer value, prepare for potential emergencies and achieve organizational success and sustainability?

Work Processes:

..How your organization designs, implements, manages and improve its key work processes to deliver customer value and achieve organizational success and sustainability?

7. BUSINESS RESULTS

Product outcomes

Customer focused Outcomes

Financial & Mkt. Outcomes

Workforce focused outcomes

Process Effectiveness Outcomes

Leadership Outcomes

PRODUCT OUTCOMES :

.. Summarize your organization’s key results, key product and performance.

.. Segment your results by product offerings.

Customer groups

Market segments.

CUSTOMER FOCUSED OUTCOMES :

.. Summarize your organization’s key customers.

FINANCIAL & MARKET OUTCOMES :

.. Summarize your organization’s key financial & market place performance results by market segment or customer groups.

WORKFORCE FOCUSSED CUSTOMERS :

.. Summarize your organization’s key workforce, like…

focused results for workforce engagement.

workforce environment.

.. Segment your results to address the diversity of your workforce & to address your workforce groups & segments.

PROCESS EFFECTIVENESS OUTCOMES :

.. Summarize your organization’s key operational performance results that contribute to the improvement of organizational effectiveness, including your organization’s readiness for emergencies.

LEADERSHIP OUTCOMES :

.. Summarize your organization’s key governance & senior leadership results, including evidence of strategic plan accomplishments, fiscal accountability, legal compliance, ethical behaviour, social responsibilities & support of key communities.

BALDRIGE CRITICISM:

Criteria too focused on business results and not focused enough on quality.

Business results shouldn’t be a criteria because organizations aren’t sure that quality is the right thing to do, so they have to prove it through financial results.

Baldrige recipients are no longer performing as role models.

It’s challenge for former Baldrige Award recipients to keep their workforce committed to Baldrige.