The Malcolm Baldrige National Quality Assurance Award


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The Malcolm Baldrige National Quality Assurance Award

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  • The Malcolm Baldrige National Quality Assurance Award

    1. 1. The Malcolm Baldrige National Quality Assurance Award The Quest for Excellence Eng. Ahmad Bassiouny
    2. 2. Agenda <ul><li>What is the Malcolm Baldrige </li></ul><ul><li>National Quality Award? </li></ul><ul><li>Malcolm Baldrige, the man </li></ul><ul><li>Reasons for establishment of the award </li></ul><ul><li>How award helps an organization </li></ul><ul><li>How organization is chosen </li></ul><ul><li>Seven key areas to winning, and relative point values </li></ul><ul><li>Real world example; Dana Corporation-Spicer Driveshaft Division </li></ul><ul><li>Quick exercise </li></ul>
    3. 3. What Is the Malcolm Baldrige Quality Award? <ul><li>Program established in 1987 </li></ul><ul><li>by congress </li></ul><ul><li>Raised awareness of the importance </li></ul><ul><li>of quality and performance in business </li></ul><ul><li>Award is given annually to companies </li></ul><ul><li>in the manufacturing and service sectors </li></ul>                                                                                
    4. 4. Malcolm Baldrige <ul><li>Secretary of Commerce from 1981 </li></ul><ul><li>to 1987 </li></ul><ul><li>He was a very big proponent of </li></ul><ul><li>quality management at a time when </li></ul><ul><li>quality was not a large issue </li></ul><ul><li>He helped draft one of the early </li></ul><ul><li>versions of the Quality Improvement Act </li></ul><ul><li>In recognition of his contributions in showing </li></ul><ul><li>the importance of quality, the award was named after him. </li></ul>
    5. 5. Reasons for the Establishment of the Malcolm Baldrige Quality Award <ul><li>Government officials saw that </li></ul><ul><li>quality improvement was no longer </li></ul><ul><li>an option for American business, but a necessity </li></ul><ul><li>Many businesses did not think quality </li></ul><ul><li>was an important issue </li></ul><ul><li>Others knew that it was important, but did not know where to begin the improvement process </li></ul>
    6. 6. How Can the Award Be Used to Help an Organization? <ul><li>The criteria for winning the award </li></ul><ul><li>are very demanding and simply </li></ul><ul><li>trying to align a company to them is </li></ul><ul><li>highly beneficial </li></ul><ul><li>It can be used as a motivational tool for workers to rally behind a common goal </li></ul><ul><li>Simply by competing for the award an organization sees the importance of quality in their business </li></ul>
    7. 7. How an Organization Is Chosen As a MBNQA Winner <ul><li>55% of evaluation is based on how the organization is run, 45% on the basis of performance </li></ul><ul><li>Every major part of the organization is accessed </li></ul><ul><li>Continuous improvement and reevaluation is very important </li></ul>
    8. 8. Seven Key Areas Specific to Winning the Award <ul><li>Leadership </li></ul><ul><li>Strategic Planning </li></ul><ul><li>Customer and Market Focus </li></ul><ul><li>Information and Analysis </li></ul><ul><li>Human Resources Development and Management </li></ul><ul><li>Process Management </li></ul><ul><li>Business Results </li></ul>
    9. 9. Point Values for the Seven Key Areas of Evaluation <ul><li>110 points – Leadership </li></ul><ul><li>80 points – Strategic Planning </li></ul><ul><li>80 points – Customer and Market Focus </li></ul><ul><li>80 points – Information Analysis </li></ul><ul><li>100 points – Human Resources </li></ul><ul><li>100 points – Process Management </li></ul><ul><li>450 points – Business Results </li></ul>
    10. 10. The Board of Examiners <ul><li>Independent board researches </li></ul><ul><li>each competing organization, and </li></ul><ul><li>follows the specific criteria previously mentioned </li></ul><ul><li>Site visits consist of 4-6 examiners </li></ul><ul><li>Examiners are all volunteers </li></ul><ul><li>Appointment to the Board of Examiners is a very prestigious honor </li></ul>
    11. 11. Real World Example: What It Takes to be a Malcolm Baldrige Award Winner <ul><li>Dana Corporation-Spicer Driveshaft </li></ul><ul><li>Division: 2000 Award Winner in Manufacturing Division </li></ul><ul><li>Company’s quality policy—“Dedicated to total quality and continuous improvement”—guides the entire business </li></ul><ul><li>Customer complaints have dropped steadily, from 6.8 per million units shipped in 1995 to about 2.8 in 2000, and since 1996, Spicer Driveshaft has not lost a single customer. </li></ul>
    12. 12. Exercise <ul><li>How many companies are given the </li></ul><ul><li> MBNQA each year? </li></ul><ul><li>a. 4 </li></ul><ul><li>b. 8 </li></ul><ul><li>c. 6 </li></ul><ul><li>How much are the board of examiners paid for their position? </li></ul><ul><li>How many key areas of each company are examined by the board during review? </li></ul><ul><li>a. 10 </li></ul><ul><li>b. 3 </li></ul><ul><li>c. 9 </li></ul><ul><li>d. 7 </li></ul>
    13. 13. Exercise Answers <ul><li>1. C; 6 companies are given the </li></ul><ul><li>award each year </li></ul><ul><li>2. Nothing; the board is a group of volunteers of experts from industry, education, government and non-profit organizations </li></ul><ul><li>3. 7; there are seven key areas each with a relative number of points adding to the total score </li></ul>
    14. 14. Summary <ul><li>MBNQA is a program established in </li></ul><ul><li>1987 to raise the awareness of quality in American business </li></ul><ul><li>Named after Malcolm Baldrige for his contributions in showing importance of quality </li></ul><ul><li>Simply aligning to criteria of award is very beneficial to the success of any organization </li></ul><ul><li>Seven key areas specific to winning the award </li></ul><ul><li>Prestigious board of examiners serve on a volunteer basis to select the winners each year </li></ul><ul><li>Winning companies must have a total quality management system built into their yearly strategy </li></ul>