Frameworks for Organizational Quality

1. Frameworks for OrganizationalQuality

2. Malcolm Baldrige National QualityAward • Who was Malcolm Baldrige?Malcolm Baldrige was Secretary of Commerce from 1981 until his death in a rodeo accident in July 1987. Baldrige was a proponent of quality management as a key to this country’s prosperity and long-term strength. He took a personal interest in the quality improvement act that was eventually named after him and helped draft one of the early versions. In recognition of his contributions, Congress named the award in his honor.

3. What is the Malcolm Baldrige National Quality Award? • The Baldrige Award is given by the President of the United States to businesses—manufacturing and service, small and large—and to education, health care and nonprofit organizations that apply and are judged to be outstanding in seven areas: leadership; strategic planning; customer and market focus; measurement, analysis, and knowledge management; workforce focus; process management; and results. • Three awards may be given annually in each of these categories: manufacturing, service, small business, education, health care and nonprofit. • The awards Criteria for Performance Excellence establish a framework for integrating total quality principles and practices in any organization.

4. What are the Baldrige criteria? • Leadership—Examines how senior executives guide the organization and how the organization addresses its responsibilities to the public and practices good citizenship. • Strategic planning—Examines how the organization sets strategic directions and how it determines key action plans. • Customer and market focus—Examines how the organization determines requirements and expectations of customers and markets; builds relationships with customers; and acquires, satisfies, and retains customers. • Measurement, analysis, and knowledge management—Examines the management, effective use, analysis, and improvement of data and information to support key organization processes and the organization’s performance management system.

5. What are the Baldrige criteria? • Human Resource focus—Examines how the organization enables its workforce to develop its full potential and how the workforce is aligned with the organization’s objectives. • Process management—Examines aspects of how key production/delivery and support processes are designed, managed, and improved. • Business Results—Examines the organization’s performance and improvement in its key business areas: customer satisfaction, financial and marketplace performance, human resources, supplier and partner performance, operational performance, and governance and social responsibility. The category also examines how the organization performs relative to competitors.

6. Malcolm Baldrige National Quality Award Criteria Framework Organizational Profile: Environment, Relationships, and Challenges Strategic Planning Human Resource Focus Leadership Business Results Customer and Market Focus Process Management Measurement, Analysis, and Knowledge Management

7. Purposes of the Award • Help stimulate American companies improve quality and productivity for the pride of recognition while obtaining a competitive edge through increased profits; • Recognize the achievements of those companies that improve the quality of their goods and services and provide an example to others; • Establish guidelines and criteria that can be used by business, industrial, governmental, and other enterprises in evaluating their own quality improvement efforts; and • Provide specific guidance for other American enterprises that wish to learn how to manage for high quality by making available detailed information on how winning enterprises were able to change their cultures and achieve eminence.

8. Malcolm Baldrige Award Recipients • 2008—Cargill Corn Milling North America, Poudre Valley Health System, and Iredell-Statesville Schools • 2007—PRO-TEC Coating Co., Mercy Health Systems, Sharp HealthCare, City of Coral Springs, and U.S. Army Research, Development and Engineering (ARDEC) • 2006—Premier, Inc. MESA Products Inc., and North Mississippi Medical Center • 2005—Sunny Fresh Foods Inc., DynMcDermott Petroleum Operations, Park Place Lexus, Jenks Public Schools, Richland College, and Bronson Methodist Hospital • 2004—The Bama Companies, Texas Nameplate Company Inc., Kenneth W. Monfort College of Business, and Robert Wood Johnson University Hospital Hamilton

9. Malcolm Baldrige Award Recipients • 2003—Medrad Inc., Boeing Aerospace Support, Caterpillar Financial Services Corp., Stoner Inc., Community Consolidated School District 15, Baptist Hospital Inc., and Saint Luke’s Hospital of Kansas City • 2002—Motorola Inc. Commercial, Government and Industrial Solutions Sector, Branch Smith Printing Division, and SSM Health Care • 2001—Clarke American Checks Inc., Pal’s Sudden Service, Chugach School District, Pearl River School District, and University of Wisconsin-Stout • 2000—Dana Corp.-Spicer Driveshaft Division, KARLEE Company Inc., Operations Management International Inc., and Los Alamos National Bank

10. Malcolm Baldrige Award Recipients • 1999—STMicroelectronics Inc.-Region Americas, BI, The Ritz-Carlton Hotel Co. L.L.C., and Sunny Fresh Foods • 1998—Boeing Airlift and Tanker Programs, Solar Turbines Inc., and Texas Nameplate Co. Inc. • 1997—3M Dental Products Division, Solectron Corp., Merrill Lynch Credit Corp., and Xerox Business Services • 1996—ADAC Laboratories, Dana Commercial Credit Corp., Custom Research Inc., and Trident Precision Manufacturing Inc.

11. Malcolm Baldrige Award Recipients • 1995—Armstrong World Industries Building Products Operation and Corning Telecommunications Products Division • 1994—AT&T Consumer Communications Services, GTE Directories Corp., and Wainwright Industries Inc. • 1993—Eastman Chemical Co. and Ames Rubber Corp. • 1992—AT&T Network Systems Group/ Transmission Systems Business Unit, Texas Instruments Inc. Defense Systems & Electronics Group, AT&T Universal Card Services, The Ritz-Carlton Hotel Co., and Granite Rock Co.

12. Malcolm Baldrige Award Recipients • 1991—Solectron Corp., Zytec Corp., and Marlow Industries • 1990—Cadillac Motor Car Division, IBM Rochester, Federal Express Corp., and Wallace Co. Inc. • 1989—Milliken & Co. and Xerox Corp. Business Products and Systems • 1988—Motorola Inc., Commercial Nuclear Fuel Division of Westinghouse Electric Corp., and Globe Metallurgical Inc.

13. Assignment • Submit a profile of a company that has already received a Malcolm Baldrige Award. The following must be included: history of the company, list of products (goods and services), other awards received (if any), list of strategic partners / alliances, current financial status. • DO NOT FORGET TO INCLUDE THE REFERENCES. (http://www.yahoo.com or http://www.google.com are NOT references)

14. International Quality Award Programs • The Deming Prize has several categories, including prizes for individuals, factories, and small companies, and the Deming application prize, which is an annual award presented to a company or a division of a company that has achieved distinctive performance improvements through the application of Companywide Quality Control (CWQC). CWQC is a system of activities to assure that quality products and services required by customers are economically designed, produced and supplied while respecting the principle of customer-orientation and the overall public well-being.

15. The Deming Prize • The judging criteria consist of a checklist of 10 major categories: policies, the organization and its operations, education and dissemination, information gathering, communication and its utilization, analysis, standardization, control/management, quality assurance, effects, and future plans. • The Deming Prize is awarded to all companies that meet the prescribed standard. However, the small number of awards given each year is an indication of the difficulty of achieving the standard. The objectives are to ensure that a company has so thoroughly deployed a quality process that it will continue to improve long after a prize is awarded. The application process has no “losers”. For companies that do not qualify, the examination process is automatically extended up to two times over 3 years.

16. The European Quality Award • In October 1991, the European Foundation for Quality Management in partnership with the European Commission and the European Organization for Quality announced the creation of the European Quality Award. • The award was designed to increase awareness throughout the European Community, and businesses in particular, of the growing importance of quality to their competitiveness in the increasingly global market and to their standards of life.

17. The European Quality Award • It consists of two parts: the European Quality Prize, given to companies that demonstrate excellence in quality management practice by meeting the award criteria; and the European Quality Award, awarded to the most successful applicant. • The award process is similar to the Deming Prize and Baldrige Award. The assessment is based on customer satisfaction, business results, processes, leadership, people satisfaction, resources, people management, policy and strategy, and impact on society.

18. The European Quality Award • The categories are roughly equivalent to those in Baldrige. However, the results criteria of people satisfaction, customer satisfaction, impact on society, and business results are somewhat different. The impact on society results category focuses on the perceptions of the company by the community at large and the company’s approach to the quality of life, the environment, and the preservation of global resources. The EQA criteria places greater emphasis on this category than is placed on the public responsibility item in the Baldrige Award criteria.

19. Canadian Awards for Business Excellence • Canada’s National Quality Institute recognizes Canada’s foremost achievers of excellence through the prestigious Canada Awards for Excellence. • NQI is a nonprofit organization designed to stimulate and support quality-driven innovation within all Canadian enterprises and institutions, including business, government, education, and health care. • The quality criteria are similar in structure to the Baldrige Award Criteria, with some key differences.

20. Canadian Awards for Business Excellence • The major categories and items within each category are:

21. Australian Business Excellence Awards • Four levels are given: • The Business Improvement Level: encouragement recognition for Progress Toward Business Excellence or Foundation in Business Excellence • The Award Level: representing Australian best practices; recognition as a winner or finalist; • The Award Gold Level: open only to former award winners; represents a revalidation and ongoing improvement; • The Australian Business Excellence Prize: open only to former award winners; represents international best practices evident throughout the organization.

22. Australian Business Excellence Awards • The assessment criteria address leadership, strategy and planning, information and knowledge, people, customer focus, processes, products and services, and business results. In this model, leadership and customer focus are the drivers of the management system and enablers of performance. • Strategy, policy and planning, information and analysis, and people are the key internal components of the management system. • Quality of process, product, and service is focused o how work is done to achieve the required results and obtain improvement. Business results are the outcome of the management system – a results category.

23. ISO 9000:2000 • To standardize quality requirements for European countries within the common market and those wishing to do business with those countries, a specialized agency for standardization, the International Organization for Standardization. The most recent version is called the ISO 9000:2000 family of standards. • ISO 9000 defines quality system standards, based on the premise that certain generic characteristics of management practices can be standardized, and that a well-designed, well-implemented, and carefully managed quality system provides confidence that the outputs will meet customer expectations and requirements.

24. ISO 9000:2000 • When the large majority of products or services in a particular business or industry sector conform to International Standards, a state of industry-wide standardization exists. The economic stakeholders concerned agree on specifications and criteria to be applied consistently in the classification of materials, in the manufacture and supply of products, in testing and analysis, in terminology and in the provision of services. In this way, International Standards provide a reference framework, or a common technological language, between suppliers and their customers. This facilitates trade and the transfer of technology.

25. ISO 9000:2000 • ISO standards: • make the development, manufacturing and supply of products and services more efficient, safer and cleaner • facilitate trade between countries and make it fairer • provide governments with a technical base for health, safety and environmental legislation, and conformity assessment • share technological advances and good management practice • disseminate innovation • safeguard consumers, and users in general, of products and services • make life simpler by providing solutions to common problems

26. ISO 9000:2000 Quality Management Principles

27. Six Sigma • a businessmanagementstrategy, initially implemented by Motorola, that today enjoys widespread application in many sectors of industry. • seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and variability in manufacturing and businessprocesses. • uses a set of qualitymanagement methods, including statisticalmethods, and creates a special infrastructure of people within the organization ("Black Belts","Green Belts", etc.) who are experts in these methods.

28. Six Sigma • SixSigma at many organizations simply means a measure of quality that strives for near perfection. Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects (driving towards six standard deviations between the mean and the nearest specification limit) in any process -- from manufacturing to transactional and from product to service. • The statistical representation of Six Sigma describes quantitatively how a process is performing. To achieve Six Sigma, a process must not produce more than 3.4 defects per million opportunities. A Six Sigma defect is defined as anything outside of customer specifications. A Six Sigma opportunity is then the total quantity of chances for a defect.

29. Six Sigma Sub-Methodologies • The Six Sigma DMAIC process (define, measure, analyze, improve, control) is an improvement system for existing processes falling below specification and looking for incremental improvement. • The Six Sigma DMADV process (define, measure, analyze, design, verify) is an improvement system used to develop new processes or products at Six Sigma quality levels. It can also be employed if a current process requires more than just incremental improvement.

30. Six Sigma Implementation Roles • Six Sigma borrows martial arts ranking terminology to define a hierarchy (and career path) that cuts across all business functions and a promotion path straight into the executive suite. • Executive Leadership includes the CEO and other members of top management. They are responsible for setting up a vision for Six Sigma implementation. They also empower the other role holders with the freedom and resources to explore new ideas for breakthrough improvements. • Champions are responsible for Six Sigma implementation across the organization in an integrated manner. The Executive Leadership draws them from upper management. Champions also act as mentors to Black Belts.

31. Master Black Belts, identified by champions, act as in-house coaches on Six Sigma. They devote 100% of their time to Six Sigma. They assist champions and guide Black Belts and Green Belts. Apart from statistical tasks, their time is spent on ensuring consistent application of Six Sigma across various functions and departments. • Black Belts operate under Master Black Belts to apply Six Sigma methodology to specific projects. They devote 100% of their time to Six Sigma. They primarily focus on Six Sigma project execution, whereas Champions and Master Black Belts focus on identifying projects/functions for Six Sigma. • Green Belts are the employees who take up Six Sigma implementation along with their other job responsibilities. They operate under the guidance of Black Belts.

32. Companies that claim to have successfully implemented Six Sigma • 3M • Air Canada • Amazon.Com • Bank of America • Boeing • Caterpillar, Inc. • Corning • Dell • DHL • Eastman Kodak Company • Ford • General Electric • GlaxoSmithKline • HSBC Group • LG Group • Motorola • Samsung Group • Siemens AG • McGraw-Hill Companies • US Air Force, US Navy, US Marine Corps, US Army • Vodafone • Whirlpool • Xerox