Quality and OperationsManagement
MS&E269
Malcolm Baldrige
National Quality Award
Core Values• 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– Business
– Service
– Small Business
– Education
– Health Care
– 3 winners per category
MBNQA Winners• 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 Ritz-Carlton 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
• 1989—Milliken & Co. and Xerox Corp. Business Products and Systems
• 1991—Solectron Corp., Zytec Corp., and Marlow Industries
• 1993—Eastman Chemical Co. and Ames Rubber Corp
• 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– 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– 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– 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 – 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
• Results oriented
• Non-prescriptive
• Assessment
• Diagnostic
A-D and R• Approach
– 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– 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
• 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
• 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
• Strategy Development• Strategy Objectives and Timelines• Actions Plans and Measures• Human Resource Plans• Performance Projections
Human ResourceDevelopment 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 ResourceDevelopment and Management
• 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
• Design Processes• Production and Delivery Processes• Key Supplier Products and Services• Key Support Processes• Requirements and Measures• Evaluation and Improvement
Quality and Operational Results
• 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
• 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
• 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 …”
• 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• 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
• 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