Malcolm Baldrige National Quality Award

OMIS 642

Larry Jacobs

MBNQA HISTORY

• In 1982, Reagan mandated a national conference on productivity

• American Productivity Center was charged with creating a proposal to this conference

• Proposal was creation of a National Quality Award based on the Deming Prize

• First award was given in 1988 - Motorola

The Malcolm Baldrige National Quality Improvement Act of 1987 - Public Law 100-107

• Leadership of the U.S in quality has been challenged

• Poor quality costs U.S. business as much as 20 percent of sales revenue

• Strategic planning for quality is becoming essential to the Nation’s economy and our ability to compete globally

• Improved management understanding of operations, worker involvement in quality and use of statistical process control can lead to dramatic improvements in cost and quality

• Concept of quality improvement is applicable to small and large firms, services, manufacturing, private enterprise and public sector

• Quality improvement programs must be management-led and customer-oriented

• Other major industrial nations have made effective use of Quality awards

Public Law 100-107: PURPOSES OF MBNQA

• Help stimulate American companies to improve quality and productivity

• Recognize achievements of those companies that improve

• Establish guidelines and criteria that can be used by enterprises to evaluate their quality and productivity improvement efforts

• Provide specific guidance to others on how MBNQA winners were able to change their cultures and achieve eminence

MBNQA CORE VALUES AND CONCEPTS

• 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

1.0 LEADERSHIP

• 1.1 Leadership System

• 1.2 Company Responsibility and Citizenship

2.0 STRATEGIC PLANNING

• 2.1 Strategy Development Process

• 2.2 Company Strategy

3.0 CUSTOMER AND MARKET FOCUS

• 3.1 Customer and Market Knowledge

• 3.2 Customer Satisfaction and Relationship Enhancement

4.0 INFORMATION AND ANALYSIS

• 4.1 Selection and Use of Information and Data

• 4.2 Selection and Use of Comparative Information and Data

• 4.3 Analysis and Review of Company Performance

5.0 HUMAN RESOURCE DEVELOPMENT AND MANAGEMENT

• 5.1 Work Systems

• 5.2 Employee Education, Training and Development

• 5.3 Employee Well-Being and Satisfaction

6.0 PROCESS MANAGEMENT

• 6.1 Management of Product and Service Processes

• 6.2 Management of Support Processes

• 6.3 Management of Supplier and Partnering Processes

7.0 BUSINESS RESULTS

• 7.1 Customer Satisfaction Results

• 7.2 Financial and Market Results

• 7.3 Human Resource Results

• 7.4 Supplier and Partner Results

• 7.5 Company-Specific Results

SITE-VISITED APPLICANTS COMMON STOCK COMPARISON

BALDRIGE WINNERS COMMON STOCK COMPARISON

NIST STOCK STUDY