Using the Baldrige Quality
Award process to Improve
Quality in Your Business
Introductions
 Dr. E. Denise Smith, CPA
 21 years in hospital administration,
worked with physician offices, home
health agencies, hospice, nursing homes
 Rural and large systems, not-for-profit
and for profit
 7 years on faculty of Godbold School of
Business, Gardner-Webb University
What is Quality?
 degree of excellence
 superiority in kind
 a distinguishing attribute
 Synonyms: caliber (or calibre), class, grade,
rate
 Antonyms:baseness, commonness, inferiority,
lowliness
How do you know
quality when you see it?
Do we expect high quality in….
 Cellphones?
 Automobiles?
 Laptops?
 Drinking water?
 Education?
 Nursing homes?
 Healthcare?
Cost of Quality
 It’s a term that's widely used – and widely misunderstood.
 The "cost of quality" isn't the price of creating a quality
product or service. It's the cost of NOT creating a quality
product or service.
 Every time work is redone, the cost of quality increases.
Obvious examples include:
 The reworking of a manufactured item.
 The retesting of an assembly.
 The rebuilding of a tool.
 The correction of a bank statement.
 The reworking of a service, such as the reprocessing of a loan
operation or the replacement of a food order in a restaurant.
 In short, any cost that would not have been expended if
quality were perfect contributes to the cost of quality.
In the long run, quality problems
can cost companies far more
than just the cost to fix the initial
problem. There are also
problems with disruption of
manufacturing, drug shortages,
and competitors capitalizing on
these issues to gain more market
share.
Systematic Approaches to
Improving Quality
The Baldrige Criteria address all key areas of
a manufacturing business and are
compatible with other performance
improvement initiatives, such as ISO 9000,
Lean, and Six Sigma. Using the Baldrige
framework, you can organize and integrate
these approaches, improve productivity and
effectiveness, and pursue performance
excellence.
Baldrige Criteria for Performance
Excellence Categories
1 Leadership
2 Strategic Planning
3 Customer Focus
4 Measurement, Analysis, and
Knowledge Management
5 Workforce Focus
6 Operations Focus
7 Results
Baldrige Hamburger!
How can Baldrige Criteria help?
Regardless of what your business is, the Baldrige
Criteria are a valuable framework for measuring
performance and planning in an uncertain
environment. The Criteria help businesses
achieve and sustain the highest national levels
of:
 Customer satisfaction, engagement, and
loyalty
 Product and service outcomes, and process
efficiency
 Workforce satisfaction and engagement
 Revenue and market share
 Social responsibility
FROM FIGHTING FIRES TO
INNOVATION: AN ANALOGY
FOR LEARNING
STEPS TOWARD MATURE
PROCESSES
Manufacturing Award Winners
 2012: Lockheed Missiles and Fire Control,
Dallas, TX
 2010: Medrad,Inc., PA; Nestle Purina
PetCare Co., MI
 2009: Honeywell Federal Manufacturing &
Technologies, LLC, MO
 2008 Cargill Corn Milling, MN
 2005 Sunny Fresh foods, Inc., MN
Small Business Award Recipients
2012: MESA Products, Inc., OK
2010: Freese and Nichols, Inc.,
TX; K&N Management, ; Studer
Group, FL
2009: MidwayUSA, MO
2007 PRO-TEC Coating
Company, OH
Healthcare Recipients
 2012: North Mississippi Health Services,
MS
 2011: Henry Ford Health System, MI;
Schneck Medical Center, ID; Southcentral
Foundation, AK
 2010: Advocate Good Samaritan Hospital,
IL
 2009: AtlantiCare, NJ
Nonprofit Recipients
 2012: City of Irving, TX
 2011: Concordia Publishing House, St.
Louis MO
 2009: VA Cooperative Studies Program
Clinical Research Pharmacy Coordinating
Center
 2007: City of Coral Springs, FL; US Army
Armament Research, Development and
Engineering Center (ARDEC)
Education Recipients
2010: Montgomery County
Public Schools, Rockville, MD
2008 Iredell-Statesville
Schools, NC
Examples
 http://www.youtube.com/watch?v=qeXjKRmeKD4&featu
re=relmfu
 http://www.youtube.com/watch?v=uw5Ei00JiHs&feature
=relmfu
 http://www.youtube.com/watch?v=y7MIobjdXLI&feature
=relmfu
 http://www.youtube.com/watch?v=qeXjKRmeKD4&featu
re=relmfu
Questions?
 FOR ADDITIONAL INFORMATION CONTACT
 Dr. Denise Smith
 esmith2@gardner-webb.edu
 704-406-4382