Quality and Operations
Management
MS&E269
Malcolm Baldrige
National Quality Award
Core Values
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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
Award Categories
• 1994
– Manufacturing
– Service
– Small Business
– 2 winners per category
• 2001
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Business
Service
Small Business
Education
Health Care
– 3 winners per category
MBNQA Winners
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1988—Motorola Inc., Commercial Nuclear Fuel
Division of Westinghouse Electric Corp., and Globe
Metallurgical Inc.
1990—Cadillac Motor Car Division, IBM Rochester,
Federal Express Corp., and Wallace Co. Inc.
1992—AT&T Network Systems Group/
Transmission Systems Business Unit, Texas
Instruments Inc. Defense Systems & Electronics
Group, AT&T Universal Card Services, The RitzCarlton Hotel Co., and Granite Rock Co.
1994—AT&T Consumer Communications Services,
GTE Directories Corp., and Wainwright Industries
Inc.
1996—ADAC Laboratories, Dana Commercial
Credit Corp., Custom Research Inc., and Trident
Precision Manufacturing Inc.
1998—Boeing Airlift and Tanker Programs, Solar
Turbines Inc., and Texas Nameplate Co., Inc.
2000—Dana Corp.-Spicer Driveshaft Division,
KARLEE Company, Inc., Operations Management
International, Inc., and Los Alamos National Bank
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1989—Milliken & Co. and Xerox Corp. Business
Products and Systems
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1991—Solectron Corp., Zytec Corp., and Marlow
Industries
1993—Eastman Chemical Co. and Ames Rubber
Corp
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1995—Armstrong World Industries Building
Products Operation and Corning
Telecommunications Products Division
1997—3M Dental Products Division, Solectron
Corp., Merrill Lynch Credit Corp., and Xerox
Business Services
1999—STMicroelectronics, Inc.-Region Americas,
BI, The Ritz-Carlton Hotel Co., L.L.C., and Sunny
Fresh Foods
Service
Manufacturing
Small Business
Changing Award Criteria
• 1991
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Leadership, 100
Information and Analysis, 70
Strategic Quality Planning, 60
Human Resource Util., 150
Quality Assurance of
Products/Services, 140
– Quality Results, 180
– Customer Satisfaction, 300
• 1994
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Leadership, 95
Information and Analysis, 75
Strategic Quality Planning, 60
Human Resource Devel., 150
Management of Process
Quality, 140
– Quality and Operational
Results, 180
– Customer Focus/Satis., 300
Changing Award Criteria
• 1995
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Leadership, 90
Information and Analysis, 75
Strategic Planning, 55
Human Resource Devel. and
Management , 140
– Process Management, 140
– Business Results, 250
– Customer Focus/Satisfaction,
250
• 2001
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Leadership, 120
Information and Analysis, 90
Strategic Planning, 85
Human Resource Focus, 85
– Process Management, 85
– Business Results, 450
– Customer and Market Focus,
85
Criteria Characteristics
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Results oriented
Non-prescriptive
Assessment
Diagnostic
A-D and R
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how the application addresses the item
appropriateness
effectiveness
evidence of innovation
• Deployment
– extent to which approach is applied
– use of approach in business requirements
– use of approach by all appropriate units
• Results
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outcomes
current performance levels
performance levels relative to comparisons/benchmarks
rate and breadth of performance improvements
demonstration of sustained improvement
Four Stage
Review Process
Leadership
• 1.1 Senior Executive Leadership
• 1.2 Management for Quality
• 1.3 Public Responsibility and Corporate
Citizenship
Leadership
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Values and Expectations
Empowerment and Innovation
Performance Reviews
Findings and Improvement
Regulatory, Legal, Ethical Responsibilities
Support of Key Communities
Information and Analysis
• 2.1 Scope and Management of Quality and
Performance Data and Information
• 2.2 Competitive Comparisons and
Benchmarking
• 2.3 Analysis and Use of Company-level
Data
Information and Analysis
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Selection and Integration of Measures / Indicators
Comparative Data and Information
Reliability
Currency w.r.t. Changing Needs
Senior Executive Reviews and Planning
Functional-level Decisions
Daily Operational Support
Strategic Quality Planning
• 3.1 Strategy Quality and Company
Performance Planning Process
• 3.2 Quality and Performance Plans
Strategic Quality Planning
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Strategy Development
Strategy Objectives and Timelines
Actions Plans and Measures
Human Resource Plans
Performance Projections
Human Resource
Development and Management
• 4.1 Human Resource Planning and
Management
• 4.2 Employee Involvement
• 4.3 Employee Education and Training
• 4.4 Employee Performance and Recognition
• 4.5 Employee Well-being and Satisfaction
Human Resource
Development and Management
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Short and Long Term Key Needs
Employee Education, Training and Development
Delivery and Reinforcement
Safe Work Environment
Support and Motivation
Satisfaction Determination
Improvement Priorities
Management of Process Quality
• 5.1 Design and Introduction of Quality
Products and Services
• 5.2 Process Management: Product and
Service Production and Delivery Processes
• 5.3 Process Management: Business and
Support Service Processes
• 5.4 Supplier Quality
• 5.5 Quality Assessment
Management of Process Quality
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Design Processes
Production and Delivery Processes
Key Supplier Products and Services
Key Support Processes
Requirements and Measures
Evaluation and Improvement
Quality and Operational Results
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6.1 Product and Service Quality Results
6.2 Company Operational Results
6.3 Business and Support Service Results
6.4 Supplier Quality Results
Quality and Operational Results
• Customer Evaluations
• Operational, Financial and Market Performance
• Strategy-driven Results
Customer Focus and Satisfaction
• 7.1 Customer Expectations: Current and
Future
• 7.2 Customer Relationship Management
• 7.3 Commitment to Customers
• 7.4 Customer Satisfaction Determination
• 7.5 Customer Satisfaction Results
• 7.6 Customer Satisfaction Comparison
Customer Focus and Satisfaction
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Customer Groups and Market Segments
Listening and Learning Strategies
Important Product and Service Features
Business Needs and Directions Currency
Accessibility and Complaint Management
Building Relationships
Competitive Performance
Leadership
• Symbolism
– is it talk or walk
– what is the visible role for management
• Systems
• Results
– hard to measure
• Issues
– is there to much going on at one time
– increase weight of category
Information and Analysis
• Key purposes
– Use of Info Sys to achieve quality goals
– Reporting/feedback to support quality
– Competitive Analysis/Benchmarks
• Approach and deployment orientation
• Key is the choice of indicators to track and relationship to
critical business drivers
• Applicant can improve scores simply through
wordsmanship, clarity of submission
• During site visit easier to observe actuals than statements
on application
Strategic Quality Planning
• Category design intent: aggressive, concrete goals,
• short term / long term
• horizontal and vertical integration
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Expect to see documented fundamentals
Demonstrated understanding of industry
On-site review best at determining validity of submission
Shortcoming: deployment to suppliers
Long-term planning not concrete wrt to rollout and method
Components are satisfactory, burden on Great Northern
Need more emphasis on long-term success and results
Human Resource Development
• Does the documentation match / support the results
– too much on deployment, not enough on results
– “50 ways to please a …”
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What about near-term programs?
Timeline on result goals not clear
Overly focused on individuals vs. teams
Results and categories are ambiguous
Warm fuzzies or real processes?
– Wish upon a star
– Needs and feelings survey
• How can tangible evidence be demonstrated?
Management of Process Quality
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Rationale: is process preventive or reactive
Design of service/product offerings
Monitoring matrix
Pushed down to each department
Use of analysis tools -- business process mapping
Processes in place
– BLERA
– QSEG
– BLI
• Use of mainstream process management methods
• Recommendations, timelines, champions identified
– weak on follow-up
Quality and Operational Analysis
• System represents linking performance results to quality
progress
• Repetition in indicators
• Overall completeness lacking
– weakness on benchmarking
• Can metrics be compared across industries?
Customer Focus and Satisfaction
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Relative balance in 1994 between AD & R
Looking for commitment, proactive behaviors
Are results comprehensive wrt all numbers and metrics?
Who determines what the correct response level is vs.
customer expectations and comparisons to industry
• Focus is based on own customers, hence how do you apply
and compare benchmark data with different populations