Baldrige Award Presentation - An Overview

8/8/2019 Baldrige Award Presentation - An Overview

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Baldrige Award

Mohsen Saleh



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Who is Malcl om Baldrige ?

Malcolm Baldrige was Secretary of Commercefrom 1981 until his death in a rodeo accident in

July 1987. Baldrige was a proponent of qualitymanagement as a key to this country¶sprosperity and long-term strength. He took apersonal interest in the quality improvement actthat was eventually named after him and helpeddraft one of the early versions. In recognition of his contributions, Congress named the award in

his honor.



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What is Baldrige National Quality Program ?



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Why was the award established?

In the early and mid-1980s, many industry andgovernment leaders saw that a renewed emphasis onquality was no longer an option for AmericanCompanies but a necessity for doing business in

An Ever expanding, and more demanding,Competitive World market. But many Americanbusinesses either did not believe quality mattered for

them or did not know where to begin. The Baldrige

Award was envisioned as a standard of excellencethat would help U.S. organizations achieve worldclass quality.



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D efiniti on:A Baldrige-style organizational assessment is a verycomprehensive, factual and objective appraisal of how theorganization is managed Using Baldrige (or similar) criteria, itexamines the following aspects of an organization:

how the organization is led , in order to provide vision anddirectionhow appropriate information is gathered and used to planfor the futurehow people's talents are developed and harnessedhow the organization determines exactly what itscustomers need -- and sets out to meet these needshow the flow of work is organized, to eliminate waste anderror, and hence improve products and serviceshow the organization is performing, from variousperspectives:- customer/marketplace, employee morale andinvolvement, productivity, efficiency, and financialperformance.



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Main Benefits of Assess ment

A properly designed and executed assessment achieves allOf The following benefits:

it builds a commitment to change among the key players

it provides a reliable, repeatable method of identifying the'vital few' areas for improvement ± those issues whichhave the most leverage in improving performance

it provides the essential starting point for developing adetailed (project-by-project) improvement plan

it provides a way of driving continuous improvement year after year ± by building an assessment step into theannual planning cycle .



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Why Baldrige Assess ment ? -1WHY CONSIDER A BAL DRIGE A SSESSMENT?P roperly conducted, a Baldrige assessment is one of the most powerfulmethods available for planning for improvement . Why is this? For thefollowing reasons.

The criteria are comprehensiveThe c riteria used are c omprehensive ± they cover all of themajor components of an effective management system. This 'bigpicture' perspective also helps identify the high-leverage issuesand to separate these from the mass of narrower issues thatare symptoms, not causes.The criteria reveal opportunitiesUnlike a compliance audit, the evaluation process is designed,not to examine conformance with a standard, but to reveal strengths and opportunities . These opportunities provide thebasis for developing an improvement plan.



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Why Baldrige Assess ment? -2The Process Builds Consensus

By establishing a shared view of the current reality, theassessment process also creates a c onsensus regarding what needs to be done to improve. Once the findings have beenaccepted, it is usually a simple matter to agree on the 'vital few'areas for improvement, that will have the most impact onperformance. In this way the assessment process leads to asharply-focused plan for improvement.Studies Demonstrate Improved Business Results

The most comprehensive study of the winners of Baldrige andother similar awards was conducted during the 1990's by two

business school professors ± Dr. Kevin B. H endrick and Dr.Vinod R. Singhal ± and published in 1999. This studyexamined the performance of more than 6 00 award winningcompanies over a period of 10 years. Their findings providecompelling evidence that developing an effectivemanagement system, as measured by the Baldrige criteria,leads to improved business results .



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BNQP Assess ment Fact ors -1



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BNQP Assess ment Criteria -11 . L eadership1.1 Senior Leadership1. 2 Governance and Social Responsibilities

2 . Strategic Planning2 .1 Strategy Development2 .2 Strategy Deployment

3 . Customer and Market Focus3 .1 Customer and Market Knowledge3 .2 Customer Relationships and Satisfaction



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BNQP Assess ment Criteria -2

4 . Measurement, A nalysis, and KnowledgeManagement4 .1 Measurement, Analysis, and Review of

Organizational P erformance4 .2 Information and Knowledge Management5 . H uman Resource Focus5 .1 Work Systems5 .2 Employee Learning and Motivation

5 .3 Employee Well-Being and Satisfaction6 . Process Management6 .1 Value Creation P rocesses6 .2 Support P rocesses and Operational P lanning



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BNQP Assess ment Criteria -37 . Business Results7.1 P roduct and Service Outcomes7. 2 Customer-Focused Results7. 3 Financial and Market Results7. 4 Human Resource Results7. 5 Organizational Effectiveness

Results7. 6 Leadership and SocialResponsibility Results



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Comp anies Received t he Award-12 00 6²P remier, Inc., MESA P roducts, Inc., and North Mississippi MedicalCenter 2 00 5² Sunny Fresh Foods, Inc., DynMcDermott P etroleum Operations, P arkP lace Lexus, Jenks P ublic Schools, Richland College, and Bronson MethodistHospital2 00 4² The Bama Companies, Texas Nameplate Company, Inc., Kenneth W.Monfort College of Business, and Robert Wood Johnson University HospitalHamilton2 00 3² Medrad, Inc., Boeing Aerospace Support, Caterpillar Financial ServicesCorp., Stoner Inc., Community Consolidated School District 1 5 , Baptist Hospital,Inc., and Saint Luke¶s Hospital of Kansas City2 00 2² Motorola Inc. Commercial, Government and Industrial Solutions Sector,Branch Smith P rinting Division, and SSM Health Care2 001 ² Clarke American Checks, Incorporated, P al¶s Sudden Service, ChugachSchool District, P earl River School District, and University of Wisconsin-Stout2

000²

Dana Corp.-Spicer Driveshaft Division, KARLEE Company, Inc.,Operations Management International, Inc., and Los Alamos National Bank1999 ² STMicroelectronics, Inc.-Region Americas, BI, The Ritz-Carlton HotelCo., L.L.C., and Sunny Fresh Foods1998 ² Boeing Airlift and Tanker P rograms, Solar Turbines Inc., and TexasNameplate Co., Inc.



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Comp anies Received t he Award-21997

²3M Dental

Products Division, Solectron Corp., Merrill LynchCredit Corp., and Xerox Business Services

199 6² ADAC Laboratories, Dana Commercial Credit Corp., CustomResearch Inc., and Trident P recision Manufacturing Inc.199 5² Armstrong World Industries Building P roducts Operation andCorning Telecommunications P roducts Division199 4² AT&T Consumer Communications Services, GTE Directories

Corp., and Wainwright Industries Inc.199 3² Eastman Chemical Co. and Ames Rubber Corp.199 2² AT&T Network Systems Group/ Transmission SystemsBusiness Unit, Texas Instruments Inc. Defense Systems & ElectronicsGroup, AT&T Universal Card Services, The Ritz-Carlton Hotel Co.,and Granite Rock Co.1991 ² Solectron Corp., Zytec Corp., and Marlow Industries

1990 ² Cadillac Motor Car Division, IBM Rochester, Federal ExpressCorp., and Wallace Co. Inc.1989 ² Milliken & Co. and Xerox Corp. Business P roducts andSystems1988 ² Motorola Inc., Commercial Nuclear Fuel Division of Westinghouse Electric Corp., and Globe Metallurgical Inc.



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H ow are recipients selected?

Organizations that are headquartered in the United States mayapply for the award. Applications for the award are evaluated byan independent Board of Examiners composed of primarilyprivate-sector experts in quality and business. Examiners lookfor achievements and improvements in all seven categories.Organizations that pass an initial screening are visited byteams of examiners to verify information in the application andto clarify questions that come up during the review. Eachapplicant receives a written summary of strengths and areas for improvement in each area addressed by the criteria.

³ The application and review process for the Baldrige Award is

the best, most cost-effective and comprehensive businesshealth audit you can get,´ says Arnold Weimerskirch, former chair of the Baldrige Award panel of judges and vice presidentof quality, Honeywell, Inc.



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T he Fees

Federal funding for this program is about $ 7 million annuallyand is used by NIST to manage the program. The application feesare charged to cover expenses associated with distribution andreview of applications and development of feedback reports. The

application and review process is considered to be a very costeffective and comprehensive business health audit. For anapplication fee ranging from $5 ,000 for large organizations to

$5 00 for non-profit education institutions, organizationsreceive at least 3 00 hours of review by a minimum of eightbusiness and quality experts. Site-visited organizations receiveover 1,000 hours of in depth review. Every applicant receives anextensive feedback report highlighting strengths and areas toimprove. An article in the Journal for Quality and P articipation said,³ The Baldrige feedback report is arguably the best bargain inconsulting in America.´



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H ow does the Baldrige Award differ from ISO 9000?

The purpose, content, and focus of the Baldrige Award and ISO 9000are very different. The Baldrige Award was created by Congress in1987 to enhance U.S. competitiveness. The award program promotesquality awareness, recognizes quality achievements of U.S.organizations, and provides a vehicle for sharing successful strategies.The Baldrige Award criteria focus on results and continuousimprovement. They provide a framework for designing, implementing,

and assessing a process for managing all business operations.ISO 9000 is a series of five international standards published in 1987by the International Organization for Standardization (ISO), Geneva,Switzerland. Companies can use the standards to help determine whatis needed to maintain an efficient quality conformance system. For example, the standards describe the need for an effective qualitysystem, for ensuring that measuring and testing equipment is calibratedregularly and for maintaining an adequate record-keeping system. ISO9000 registration determines whether a company complies with its ownquality system.Overall, ISO 9000 registration covers less than 1 0 percent of theBaldrige A ward criteria.



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Is the Baldrige Award a U.S. version of Japan¶s Demingaward?

The basic purposes of both awards are the same: topromote recognition of quality achievements and toraise awareness of the importance and techniques of quality improvement. However, the Baldrige Award:y focuses more on results and service,y relies upon the involvement of many different

professional and trade groups,y provides special credits for innovative approaches

to quality,y includes a strong customer and human resource

focus, andy stresses the importance of sharing information.



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Baldrige Award



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Baldrige Final ResultT he Result



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T hanks f or Y our Listening

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Baldrige Award Presentation - An Overview

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