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Baldrige Performance Excellence Program | www.nist.gov/baldrige
The Malcolm Baldrige
National Quality Award
About theAward
• Presidential award created by
Public Law 100-107 in 1987
• Highest level of national recognition
for performance excellence
• Traditionally presented by the
President of the United States
MALCOLM BALDRIGE NATIONAL
QUALITY AWARD
Named after Malcolm Baldrige
Created by Public Law 100-107, signed on August 20, 1987
First introduced in 1988
Award are made annually to U.S. companies that excel in
quality management and quality achievement.
OBJECTIVES/GOALS
To help companies improve quality and productivity
To recognize achievements
To establish guidelines and criteria
To provide guidance to other organization
Why Apply?
• Improve performance and achieve
world-class results
• Seek “the most cost-effective, value-added
business audit available anywhere”
• Objectively clarify your organization’s
strengths and weaknesses
This year’s [Baldrige Award] recipients have shown
how quality, innovation, and an unending quest for
excellence help strengthen our nation and brighten
the future of all Americans.
—President Barack Obama
The Feedback Report: The Greatest Benefit
• Written assessment of strengths/ opportunities for
improvement
• Compiled by a team of expert examiners
–Key themes (summary)
–Organization-specific comments
–Individualized scoring information
–Scoring distribution
Eligibility Categories
• Manufacturing
• Service
• Small business
● Education
● Health care
● Nonprofit
• Headquartered in the United States
• Existed for one year
• Operational practices available for examination
• Able to share information on Baldrige Criteria
categories
• Other requirements specific to sector
Eligibility Conditions
BaldrigeAward Calendar
February Early eligibility certification
April Eligibility certification
May Award applications due
June–
November
Applications reviewed
November Award recipients announced
April Award ceremony
Quest for Excellence Conference
Applications byAward Category
13 ’12* ’11 ’10 ’09 ’08 ’07 ’06
Manufacturing -- 1 2 3 2 3 2 3
Service -- 3 3 2 4 5 4 4
Small business -- 2 2 7 5 7 7 8
Education 2 3 8 10 9 11 16 16
Health care 15 25 40 54 42 43 42 45
Nonprofit 5 5 14 7 8 16 13 10
Total 22 39 69 83 70 85 84 86
*New eligibility rules in effect.
Award Recipients: Manufacturing
• 3M Dental Products Division
(1997)
• ADAC Laboratories (1996)
• Armstrong Building Products
Operations (1995)
• AT&T Transmission Systems
Business Unit (1992)
• The Bama Companies, Inc.
(2004)
• Boeing Airlift & Tanker Programs
(1998)
• Cadillac Motor Car Company
(1990)
• Cargill Corn Milling North
America (2008)
• Clarke American Checks, Inc.
(2001)
• Corning Telecommunications
Products Division (1995)
• Dana Corporation—Spicer
Driveshaft Division (2000)
• Eastman Chemical Company
(1993)
• Honeywell Federal
Manufacturing & Technologies
(2009)
• IBM Rochester (1990)
• KARLEE Company, Inc. (2000)
• Lockheed Martin Missiles and
Fire Control (2012)
• MEDRAD, Inc. (2003, 2010)
• Milliken & Company (1989)
• Midway USA (2009)
• Motorola CGISS (2002)
• Motorola, Inc. (1988)
• Nestlé Purina PetCare Co.
(2010)
• Solar Turbines Inc. (1998)
• Solectron Corporation
(1991 and 1997)
• STMicroelectronics—Region
Americas (1999)
• Sunny Fresh Foods, Inc.
(2005)
• Texas Instruments Defense
Systems & Electronics Group
(1992)
• Westinghouse Commercial
Nuclear Fuel Division (1988)
• Xerox Corp. Business
Products & Systems (1989)
• Zytec Corporation (1991)
Award Recipients: Manufacturing
• AT&T Consumer
Communications Services
(1994)
• AT&T Universal Card Services
(1992)
• BI (1999)
• Boeing Aerospace Support
(2003)
• Caterpillar Financial Services
Corp. U.S. (2003)
• Dana Commercial Credit
Corporation (1996)
• DynMcDermott Petroleum
Operations (2005)
• Federal Express Corporation
(1990)
• GTE Directories Corporation
(1994)
• Merrill Lynch Credit Corporation
(1997)
• Operations Management
International, Inc. (2000)
• Premier Inc. (2006)
• The Ritz-Carlton Hotel
Company, L.L.C. (1992, 1999)
• Xerox Business Services (1997)
Award Recipients: Service
• Ames Rubber Corporation (1993)
• Branch-Smith Printing Division
(2002)
• Custom Research Inc. (1996)
• Freese and Nichols Inc. (2010)
• Globe Metallurgical Inc. (1988)
Award Recipients: Small
Business
• Granite Rock Company (1992)
• K&N Management (2010)
• Los Alamos National Bank (2000)
• Marlow Industries, Inc. (1991)
• MESA (2006, 2012)
• MidwayUSA (2009)
• Pal’s Sudden Service (2001)
• Park Place Lexus (2005)
• PRO-TEC Coating Company
(2007)
• Stoner, Inc. (2003)
• Studer Group (2010)
Award Recipients: Small
Business
• Sunny Fresh Foods (1999)
• Texas Nameplate Co., Inc.
(1998, 2004)
• Trident Precision
Manufacturing, Inc. (1996)
• Wainwright Industries, Inc.
(1994)
• Wallace Co., Inc. (1990)
• Chugach School District (2001)
• Community Consolidated School District 15 (2003)
• Iredell–Statesville Schools (2008)
• Jenks Public Schools (2005)
• Kenneth W. Monfort College of Business (2004)
• Montgomery County Public Schools (2010)
• Pearl River School District (2001)
• Pewaukee School District (2013)
• Richland College (2005)
• University of Wisconsin–Stout (2001)
Award Recipients:
Education
• Advocate Good Samaritan Hospital
(2010)
• AtlantiCare (2009)
• Baptist Hospital, Inc. (2003)
• Bronson Methodist Hospital (2005)
• Heartland Health (2009)
• Henry Ford Health System (2011)
• Mercy Health System (2007)
• North Mississippi Medical Center
(2006)
• North Mississippi Health Services
(2012)
Award Recipients: Health Care
• Poudre Valley Health System
(2008)
• Robert Wood Johnson University
Hospital Hamilton (2004)
• Saint Luke’s Hospital of Kansas
City (2003)
• Schneck Medical Center (2011)
• Sharp HealthCare (2007)
• Southcentral Foundation (2011)
• SSM Health Care (2002)
• Sutter Davis Hospital (2013)
Award Recipients: Nonprofit
• City of Coral Springs, Florida (2007)
• City of Irving, Texas (2012)
• Concordia Publishing House (2011)
• U.S. Army Armament Research, Development
and Engineering Center (ARDEC; 2007)
• Veterans Affairs Cooperative Studies Program
Clinical Research Pharmacy Coordinating
Center (2009)
The Deming Prize
Who Qualifies
• Award available to individuals and
organizations, whereas others do not
(such as Baldrige only for organizations)
• Deming Prize for Individuals available
every year.
Deming Application Prize
• No limit to winners
• Annually presented to companies that
show improvement in the field of total
quality management
• No industry barrier
• Divisions of a company
How to Apply
• A firm examines itself based on these
viewpoints:
• How well you implement TQM
• No unnecessary rules and regulations
• Understands and used TQM and statistical
thinking
• Examination of production and non-
production divisions of firm tested the same
way
Winners
• More than 150 companies have won a Deming
prize, including the 7 largest Japanese industrial
corporations.
• Winners of the Deming Prize for individuals have
been Japanese as of 1999
• Majority of Deming Application Prize winners
also Japanese firms until the last decade.
Winners
• Some companies
• Toyota Motor company
• Microcomputer system
• Shimizu construction company
• Kansai electric power company
• U.S. winners:
• AT&T Power Systems
• Lucent Technology Power Systems
Summary
The Deming Prize was created in 1951 by the
Japanese Union of Scientist and Engineers. For
commemorating Dr. Deming and recognizing
those with outstanding quality management.
Deming Prize available for individuals
and firms in any field. Scoring for
winners are on a 100 point scale.
ISO 9000 & 14000
• ISO 9000 series of standards
• ISO 9000 is an internationally accepted standard for effective
quality systems. They stand for system standardization and
certification rather than product standardization. They do not
replace but complement the product standards.
ISO 9000:1987 had three 'models' for quality management
systems, the selection of which was based on the scope of
activities of the organization:
• ISO 9001:1987 Model for quality assurance in design,
development, production, installation, and servicing was for
companies and organizations whose activities included the
creation of new products.
• ISO 9002:1987 Model for quality assurance in production,
installation, and servicing had basically the same material as
ISO 9001 but without covering the creation of new products.
• ISO 9003:1987 Model for quality assurance in final inspection
and test covered only the final inspection of finished product,
with no concern for how the product was produced.
• ISO does not certify organizations itself. Numerous
certification bodies exist, which audit organizations and, upon
success, issue ISO 9001 compliance certificates.
• Although commonly referred to as "ISO 9000" certification,
the actual standard to which an organization's quality
management system can be certified is ISO 9001:2008.
• Many countries have formed accreditation bodies to
authorize ("accredit") the certification bodies. Both the
accreditation bodies and the certification bodies charge fees
for their services.
• The various accreditation bodies have mutual agreements
with each other to ensure that certificates issued by one of
the accredited certification bodies (CB) are accepted
worldwide. Certification bodies themselves operate under
another quality standard, ISO/IEC 17021, while accreditation
bodies operate under ISO/IEC 17011.
•
Implementing ISO 9000
Quality Management System
• Step 1: Top management commitment
Step 2: Establish implementation team
Step 3. Start ISO 9000 awareness programs
Step 4: Provide Training
Step 5. Conduct initial status survey
Step 6: Create a documented implementation plan
Step 7. Develop quality management system documentation
Step 8: Document control
Step 9. Implementation
Step 10. Internal quality audit
Step 11. Management review
Step 12. Pre-assessment audit
Step 13. Certification and registration
Step 14: Continual Improvement
ISO 14000
• The family ISO 14000 addresses various aspects of
environmental management. The very first two
standards, ISO 14001:2004 and ISO14004:2004 deal
with environmental management systems (EMS).
ISO14001:2004 provides the requirements for an EMS
and ISO14004:2004 gives general EMS guidelines.
• An EMS meeting the requirements of ISO 14001:2004 is
a management tool enabling an organization of any size
or type to:
• identify and control the environmental impact of its activities, products
or services, and to
• improve its environmental performance continually, and to
• implement a systematic approach to setting environmental objectives
and targets, to achieving these and to demonstrating that they have
been achieved.
BENCHMARKING
Benchmarking
• Benchmarking is the process of comparing one's
business processes and performance metrics to industry
bests or best practices from other companies.
• Dimensions typically measured are quality, time and
cost.
• In the process of best practice benchmarking,
management identifies the best firms in their industry, or
in another industry where similar processes exist, and
compares the results and processes of those studied (the
"targets") to one's own results and processes.
The following is an example of a typical benchmarking methodology:
• Identify problem areas: Because benchmarking can be applied to
any business process or function, a range of research techniques
may be required. They include informal conversations with
customers, employees, or suppliers; exploratory research techniques
such as focus groups; or in-depth marketing research, quantitative
research, surveys ,questionnaires, re-engineering analysis, process
mapping, quality control variance reports, financial ratio analysis, or
simply reviewing cycle times or other performance indicators.
• Identify other industries that have similar processes: For instance,
if one were interested in improving hand-offs in addiction treatment
one would identify other fields that also have hand-off challenges.
These could include air traffic control, cell phone switching between
towers, transfer of patients from surgery to recovery rooms.
• Identify organizations that are leaders in these areas: Look for the
very best in any industry and in any country. Consult customers,
suppliers, financial analysts, trade associations, and magazines to
determine which companies are worthy of study.
• Survey companies for measures and practices: Companies target
specific business processes using detailed surveys of measures and
practices used to identify business process alternatives and leading
companies. Surveys are typically masked to protect confidential
data by neutral associations and consultants.
• Visit the "best practice" companies to identify leading edge
practices: Companies typically agree to mutually exchange
information beneficial to all parties in a benchmarking group and
share the results within the group.
• Implement new and improved business practices: Take the leading
edge practices and develop implementation plans which include
identification of specific opportunities, funding the project and
selling the ideas to the organization for the purpose of gaining
demonstrated value from the process.

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The Ultimate Guide to the Malcolm Baldrige National Quality Award

  • 1. Baldrige Performance Excellence Program | www.nist.gov/baldrige The Malcolm Baldrige National Quality Award
  • 2. About theAward • Presidential award created by Public Law 100-107 in 1987 • Highest level of national recognition for performance excellence • Traditionally presented by the President of the United States
  • 3. MALCOLM BALDRIGE NATIONAL QUALITY AWARD Named after Malcolm Baldrige Created by Public Law 100-107, signed on August 20, 1987 First introduced in 1988 Award are made annually to U.S. companies that excel in quality management and quality achievement.
  • 4. OBJECTIVES/GOALS To help companies improve quality and productivity To recognize achievements To establish guidelines and criteria To provide guidance to other organization
  • 5. Why Apply? • Improve performance and achieve world-class results • Seek “the most cost-effective, value-added business audit available anywhere” • Objectively clarify your organization’s strengths and weaknesses
  • 6. This year’s [Baldrige Award] recipients have shown how quality, innovation, and an unending quest for excellence help strengthen our nation and brighten the future of all Americans. —President Barack Obama
  • 7. The Feedback Report: The Greatest Benefit • Written assessment of strengths/ opportunities for improvement • Compiled by a team of expert examiners –Key themes (summary) –Organization-specific comments –Individualized scoring information –Scoring distribution
  • 8. Eligibility Categories • Manufacturing • Service • Small business ● Education ● Health care ● Nonprofit
  • 9. • Headquartered in the United States • Existed for one year • Operational practices available for examination • Able to share information on Baldrige Criteria categories • Other requirements specific to sector Eligibility Conditions
  • 10. BaldrigeAward Calendar February Early eligibility certification April Eligibility certification May Award applications due June– November Applications reviewed November Award recipients announced April Award ceremony Quest for Excellence Conference
  • 11. Applications byAward Category 13 ’12* ’11 ’10 ’09 ’08 ’07 ’06 Manufacturing -- 1 2 3 2 3 2 3 Service -- 3 3 2 4 5 4 4 Small business -- 2 2 7 5 7 7 8 Education 2 3 8 10 9 11 16 16 Health care 15 25 40 54 42 43 42 45 Nonprofit 5 5 14 7 8 16 13 10 Total 22 39 69 83 70 85 84 86 *New eligibility rules in effect.
  • 12. Award Recipients: Manufacturing • 3M Dental Products Division (1997) • ADAC Laboratories (1996) • Armstrong Building Products Operations (1995) • AT&T Transmission Systems Business Unit (1992) • The Bama Companies, Inc. (2004) • Boeing Airlift & Tanker Programs (1998) • Cadillac Motor Car Company (1990) • Cargill Corn Milling North America (2008) • Clarke American Checks, Inc. (2001) • Corning Telecommunications Products Division (1995) • Dana Corporation—Spicer Driveshaft Division (2000) • Eastman Chemical Company (1993) • Honeywell Federal Manufacturing & Technologies (2009) • IBM Rochester (1990)
  • 13. • KARLEE Company, Inc. (2000) • Lockheed Martin Missiles and Fire Control (2012) • MEDRAD, Inc. (2003, 2010) • Milliken & Company (1989) • Midway USA (2009) • Motorola CGISS (2002) • Motorola, Inc. (1988) • Nestlé Purina PetCare Co. (2010) • Solar Turbines Inc. (1998) • Solectron Corporation (1991 and 1997) • STMicroelectronics—Region Americas (1999) • Sunny Fresh Foods, Inc. (2005) • Texas Instruments Defense Systems & Electronics Group (1992) • Westinghouse Commercial Nuclear Fuel Division (1988) • Xerox Corp. Business Products & Systems (1989) • Zytec Corporation (1991) Award Recipients: Manufacturing
  • 14. • AT&T Consumer Communications Services (1994) • AT&T Universal Card Services (1992) • BI (1999) • Boeing Aerospace Support (2003) • Caterpillar Financial Services Corp. U.S. (2003) • Dana Commercial Credit Corporation (1996) • DynMcDermott Petroleum Operations (2005) • Federal Express Corporation (1990) • GTE Directories Corporation (1994) • Merrill Lynch Credit Corporation (1997) • Operations Management International, Inc. (2000) • Premier Inc. (2006) • The Ritz-Carlton Hotel Company, L.L.C. (1992, 1999) • Xerox Business Services (1997) Award Recipients: Service
  • 15. • Ames Rubber Corporation (1993) • Branch-Smith Printing Division (2002) • Custom Research Inc. (1996) • Freese and Nichols Inc. (2010) • Globe Metallurgical Inc. (1988) Award Recipients: Small Business • Granite Rock Company (1992) • K&N Management (2010) • Los Alamos National Bank (2000) • Marlow Industries, Inc. (1991) • MESA (2006, 2012)
  • 16. • MidwayUSA (2009) • Pal’s Sudden Service (2001) • Park Place Lexus (2005) • PRO-TEC Coating Company (2007) • Stoner, Inc. (2003) • Studer Group (2010) Award Recipients: Small Business • Sunny Fresh Foods (1999) • Texas Nameplate Co., Inc. (1998, 2004) • Trident Precision Manufacturing, Inc. (1996) • Wainwright Industries, Inc. (1994) • Wallace Co., Inc. (1990)
  • 17. • Chugach School District (2001) • Community Consolidated School District 15 (2003) • Iredell–Statesville Schools (2008) • Jenks Public Schools (2005) • Kenneth W. Monfort College of Business (2004) • Montgomery County Public Schools (2010) • Pearl River School District (2001) • Pewaukee School District (2013) • Richland College (2005) • University of Wisconsin–Stout (2001) Award Recipients: Education
  • 18. • Advocate Good Samaritan Hospital (2010) • AtlantiCare (2009) • Baptist Hospital, Inc. (2003) • Bronson Methodist Hospital (2005) • Heartland Health (2009) • Henry Ford Health System (2011) • Mercy Health System (2007) • North Mississippi Medical Center (2006) • North Mississippi Health Services (2012) Award Recipients: Health Care • Poudre Valley Health System (2008) • Robert Wood Johnson University Hospital Hamilton (2004) • Saint Luke’s Hospital of Kansas City (2003) • Schneck Medical Center (2011) • Sharp HealthCare (2007) • Southcentral Foundation (2011) • SSM Health Care (2002) • Sutter Davis Hospital (2013)
  • 19. Award Recipients: Nonprofit • City of Coral Springs, Florida (2007) • City of Irving, Texas (2012) • Concordia Publishing House (2011) • U.S. Army Armament Research, Development and Engineering Center (ARDEC; 2007) • Veterans Affairs Cooperative Studies Program Clinical Research Pharmacy Coordinating Center (2009)
  • 21. Who Qualifies • Award available to individuals and organizations, whereas others do not (such as Baldrige only for organizations) • Deming Prize for Individuals available every year.
  • 22. Deming Application Prize • No limit to winners • Annually presented to companies that show improvement in the field of total quality management • No industry barrier • Divisions of a company
  • 23. How to Apply • A firm examines itself based on these viewpoints: • How well you implement TQM • No unnecessary rules and regulations • Understands and used TQM and statistical thinking • Examination of production and non- production divisions of firm tested the same way
  • 24. Winners • More than 150 companies have won a Deming prize, including the 7 largest Japanese industrial corporations. • Winners of the Deming Prize for individuals have been Japanese as of 1999 • Majority of Deming Application Prize winners also Japanese firms until the last decade.
  • 25. Winners • Some companies • Toyota Motor company • Microcomputer system • Shimizu construction company • Kansai electric power company • U.S. winners: • AT&T Power Systems • Lucent Technology Power Systems
  • 26. Summary The Deming Prize was created in 1951 by the Japanese Union of Scientist and Engineers. For commemorating Dr. Deming and recognizing those with outstanding quality management. Deming Prize available for individuals and firms in any field. Scoring for winners are on a 100 point scale.
  • 27. ISO 9000 & 14000
  • 28. • ISO 9000 series of standards • ISO 9000 is an internationally accepted standard for effective quality systems. They stand for system standardization and certification rather than product standardization. They do not replace but complement the product standards.
  • 29. ISO 9000:1987 had three 'models' for quality management systems, the selection of which was based on the scope of activities of the organization: • ISO 9001:1987 Model for quality assurance in design, development, production, installation, and servicing was for companies and organizations whose activities included the creation of new products. • ISO 9002:1987 Model for quality assurance in production, installation, and servicing had basically the same material as ISO 9001 but without covering the creation of new products. • ISO 9003:1987 Model for quality assurance in final inspection and test covered only the final inspection of finished product, with no concern for how the product was produced.
  • 30.
  • 31. • ISO does not certify organizations itself. Numerous certification bodies exist, which audit organizations and, upon success, issue ISO 9001 compliance certificates. • Although commonly referred to as "ISO 9000" certification, the actual standard to which an organization's quality management system can be certified is ISO 9001:2008. • Many countries have formed accreditation bodies to authorize ("accredit") the certification bodies. Both the accreditation bodies and the certification bodies charge fees for their services. • The various accreditation bodies have mutual agreements with each other to ensure that certificates issued by one of the accredited certification bodies (CB) are accepted worldwide. Certification bodies themselves operate under another quality standard, ISO/IEC 17021, while accreditation bodies operate under ISO/IEC 17011. •
  • 32. Implementing ISO 9000 Quality Management System • Step 1: Top management commitment Step 2: Establish implementation team Step 3. Start ISO 9000 awareness programs Step 4: Provide Training Step 5. Conduct initial status survey Step 6: Create a documented implementation plan Step 7. Develop quality management system documentation Step 8: Document control Step 9. Implementation Step 10. Internal quality audit Step 11. Management review Step 12. Pre-assessment audit Step 13. Certification and registration Step 14: Continual Improvement
  • 33. ISO 14000 • The family ISO 14000 addresses various aspects of environmental management. The very first two standards, ISO 14001:2004 and ISO14004:2004 deal with environmental management systems (EMS). ISO14001:2004 provides the requirements for an EMS and ISO14004:2004 gives general EMS guidelines. • An EMS meeting the requirements of ISO 14001:2004 is a management tool enabling an organization of any size or type to: • identify and control the environmental impact of its activities, products or services, and to • improve its environmental performance continually, and to • implement a systematic approach to setting environmental objectives and targets, to achieving these and to demonstrating that they have been achieved.
  • 35. Benchmarking • Benchmarking is the process of comparing one's business processes and performance metrics to industry bests or best practices from other companies. • Dimensions typically measured are quality, time and cost. • In the process of best practice benchmarking, management identifies the best firms in their industry, or in another industry where similar processes exist, and compares the results and processes of those studied (the "targets") to one's own results and processes.
  • 36. The following is an example of a typical benchmarking methodology: • Identify problem areas: Because benchmarking can be applied to any business process or function, a range of research techniques may be required. They include informal conversations with customers, employees, or suppliers; exploratory research techniques such as focus groups; or in-depth marketing research, quantitative research, surveys ,questionnaires, re-engineering analysis, process mapping, quality control variance reports, financial ratio analysis, or simply reviewing cycle times or other performance indicators. • Identify other industries that have similar processes: For instance, if one were interested in improving hand-offs in addiction treatment one would identify other fields that also have hand-off challenges. These could include air traffic control, cell phone switching between towers, transfer of patients from surgery to recovery rooms.
  • 37. • Identify organizations that are leaders in these areas: Look for the very best in any industry and in any country. Consult customers, suppliers, financial analysts, trade associations, and magazines to determine which companies are worthy of study. • Survey companies for measures and practices: Companies target specific business processes using detailed surveys of measures and practices used to identify business process alternatives and leading companies. Surveys are typically masked to protect confidential data by neutral associations and consultants. • Visit the "best practice" companies to identify leading edge practices: Companies typically agree to mutually exchange information beneficial to all parties in a benchmarking group and share the results within the group. • Implement new and improved business practices: Take the leading edge practices and develop implementation plans which include identification of specific opportunities, funding the project and selling the ideas to the organization for the purpose of gaining demonstrated value from the process.