Baldrige Performance Excellence Program | www.nist.gov/baldrige The Malcolm Baldrige National Quality Award
Baldrige Performance Excellence Program | www.nist.gov/baldrige
The Malcolm Baldrige National Quality Award
About the Award
• Presidential award created by Public Law 100-107 in 1987
• Highest level of national recognition for performance excellence
• Traditionally presented by the President of the United States
MALCOLM BALDRIGE NATIONAL QUALITY AWARD
Named after Malcolm Baldrige
Created by Public Law 100-107, signed on August 20, 1987
First introduced in 1988
Award are made annually to U.S. companies that excel in
quality management and quality achievement.
OBJECTIVES/GOALSTo help companies improve quality and productivity
To recognize achievements
To establish guidelines and criteria
To provide guidance to other organization
Why Apply?
• Improve performance and achieve world-class results
• Seek “the most cost-effective, value-added business audit available anywhere”
• Objectively clarify your organization’s strengths and weaknesses
This year’s [Baldrige Award] recipients have shown how quality, innovation, and an unending quest for excellence help strengthen our nation and brighten the future of all Americans.
—President Barack Obama
The Feedback Report: The Greatest Benefit
• Written assessment of strengths/ opportunities for improvement
• Compiled by a team of expert examiners
– Key themes (summary)
– Organization-specific comments
– Individualized scoring information
– Scoring distribution
Eligibility Categories
• Manufacturing
• Service
• Small business
● Education
● Health care
● Nonprofit
• Headquartered in the United States
• Existed for one year
• Operational practices available for examination
• Able to share information on Baldrige Criteria categories
• Other requirements specific to sector
Eligibility Conditions
Baldrige Award Calendar
February Early eligibility certification
April Eligibility certification
May Award applications due
June–November
Applications reviewed
November Award recipients announced
April Award ceremonyQuest for Excellence Conference
Applications by Award Category
13 ’12* ’11 ’10 ’09 ’08 ’07 ’06
Manufacturing -- 1 2 3 2 3 2 3
Service -- 3 3 2 4 5 4 4
Small business -- 2 2 7 5 7 7 8
Education 2 3 8 10 9 11 16 16
Health care 15 25 40 54 42 43 42 45
Nonprofit 5 5 14 7 8 16 13 10
Total 22 39 69 83 70 85 84 86
*New eligibility rules in effect.
Award Recipients: Manufacturing• 3M Dental Products Division
(1997)
• ADAC Laboratories (1996)
• Armstrong Building Products
Operations (1995)
• AT&T Transmission Systems
Business Unit (1992)
• The Bama Companies, Inc.
(2004)
• Boeing Airlift & Tanker Programs
(1998)
• Cadillac Motor Car Company
(1990)
• Cargill Corn Milling North
America (2008)
• Clarke American Checks, Inc.
(2001)
• Corning Telecommunications
Products Division (1995)
• Dana Corporation—Spicer
Driveshaft Division (2000)
• Eastman Chemical Company
(1993)
• Honeywell Federal
Manufacturing & Technologies
(2009)
• IBM Rochester (1990)
• KARLEE Company, Inc. (2000)
• Lockheed Martin Missiles and
Fire Control (2012)
• MEDRAD, Inc. (2003, 2010)
• Milliken & Company (1989)
• Midway USA (2009)
• Motorola CGISS (2002)
• Motorola, Inc. (1988)
• Nestlé Purina PetCare Co.
(2010)
• Solar Turbines Inc. (1998)
• Solectron Corporation
(1991 and 1997)
• STMicroelectronics—Region
Americas (1999)
• Sunny Fresh Foods, Inc.
(2005)
• Texas Instruments Defense
Systems & Electronics Group
(1992)
• Westinghouse Commercial
Nuclear Fuel Division (1988)
• Xerox Corp. Business
Products & Systems (1989)
• Zytec Corporation (1991)
Award Recipients: Manufacturing
• AT&T Consumer
Communications Services
(1994)
• AT&T Universal Card Services
(1992)
• BI (1999)
• Boeing Aerospace Support
(2003)
• Caterpillar Financial Services
Corp. U.S. (2003)
• Dana Commercial Credit
Corporation (1996)
• DynMcDermott Petroleum
Operations (2005)
• Federal Express Corporation
(1990)
• GTE Directories Corporation
(1994)
• Merrill Lynch Credit Corporation
(1997)
• Operations Management
International, Inc. (2000)
• Premier Inc. (2006)
• The Ritz-Carlton Hotel
Company, L.L.C. (1992, 1999)
• Xerox Business Services (1997)
Award Recipients: Service
• Ames Rubber Corporation (1993)
• Branch-Smith Printing Division
(2002)
• Custom Research Inc. (1996)
• Freese and Nichols Inc. (2010)
• Globe Metallurgical Inc. (1988)
Award Recipients: Small Business
• Granite Rock Company (1992)
• K&N Management (2010)
• Los Alamos National Bank (2000)
• Marlow Industries, Inc. (1991)
• MESA (2006, 2012)
• MidwayUSA (2009)
• Pal’s Sudden Service (2001)
• Park Place Lexus (2005)
• PRO-TEC Coating Company
(2007)
• Stoner, Inc. (2003)
• Studer Group (2010)
Award Recipients: Small Business
• Sunny Fresh Foods (1999)
• Texas Nameplate Co., Inc.
(1998, 2004)
• Trident Precision
Manufacturing, Inc. (1996)
• Wainwright Industries, Inc.
(1994)
• Wallace Co., Inc. (1990)
• Chugach School District (2001)
• Community Consolidated School District 15 (2003)
• Iredell–Statesville Schools (2008)
• Jenks Public Schools (2005)
• Kenneth W. Monfort College of Business (2004)
• Montgomery County Public Schools (2010)
• Pearl River School District (2001)
• Pewaukee School District (2013)
• Richland College (2005)
• University of Wisconsin–Stout (2001)
Award Recipients: Education
• Advocate Good Samaritan Hospital
(2010)
• AtlantiCare (2009)
• Baptist Hospital, Inc. (2003)
• Bronson Methodist Hospital (2005)
• Heartland Health (2009)
• Henry Ford Health System (2011)
• Mercy Health System (2007)
• North Mississippi Medical Center
(2006)
• North Mississippi Health Services
(2012)
Award Recipients: Health Care• Poudre Valley Health System
(2008)
• Robert Wood Johnson University
Hospital Hamilton (2004)
• Saint Luke’s Hospital of Kansas
City (2003)
• Schneck Medical Center (2011)
• Sharp HealthCare (2007)
• Southcentral Foundation (2011)
• SSM Health Care (2002)
• Sutter Davis Hospital (2013)
Award Recipients: Nonprofit
• City of Coral Springs, Florida (2007)
• City of Irving, Texas (2012)
• Concordia Publishing House (2011)
• U.S. Army Armament Research, Development and Engineering Center (ARDEC; 2007)
• Veterans Affairs Cooperative Studies Program Clinical Research Pharmacy Coordinating Center (2009)
Who Qualifies
• Award available to individuals and organizations, whereas others do not (such as Baldrige only for organizations)
• Deming Prize for Individuals available every year.
Deming Application Prize
• No limit to winners
• Annually presented to companies that show improvement in the field of total quality management
• No industry barrier
• Divisions of a company
How to Apply
• A firm examines itself based on these viewpoints:
• How well you implement TQM
• No unnecessary rules and regulations
• Understands and used TQM and statistical thinking
• Examination of production and non-production divisions of firm tested the same way
Winners• More than 150 companies have won a Deming
prize, including the 7 largest Japanese industrial corporations.
• Winners of the Deming Prize for individuals have been Japanese as of 1999
• Majority of Deming Application Prize winners also Japanese firms until the last decade.
Winners• Some companies
• Toyota Motor company
• Microcomputer system
• Shimizu construction company
• Kansai electric power company
• U.S. winners:
• AT&T Power Systems
• Lucent Technology Power Systems
SummaryThe Deming Prize was created in 1951 by theJapanese Union of Scientist and Engineers. Forcommemorating Dr. Deming and recognizingthose with outstanding quality management.
Deming Prize available for individuals
and firms in any field. Scoring for
winners are on a 100 point scale.
• ISO 9000 series of standards
• ISO 9000 is an internationally accepted standard for effective quality systems. They stand for system standardization and certification rather than product standardization. They do not replace but complement the product standards.
ISO 9000:1987 had three 'models' for quality management systems, the selection of which was based on the scope of activities of the organization:
• ISO 9001:1987 Model for quality assurance in design, development, production, installation, and servicing was for companies and organizations whose activities included the creation of new products.
• ISO 9002:1987 Model for quality assurance in production, installation, and servicing had basically the same material as ISO 9001 but without covering the creation of new products.
• ISO 9003:1987 Model for quality assurance in final inspection and test covered only the final inspection of finished product, with no concern for how the product was produced.
• ISO does not certify organizations itself. Numerouscertification bodies exist, which audit organizations and, uponsuccess, issue ISO 9001 compliance certificates.
• Although commonly referred to as "ISO 9000" certification,the actual standard to which an organization's qualitymanagement system can be certified is ISO 9001:2008.
• Many countries have formed accreditation bodies toauthorize ("accredit") the certification bodies. Both theaccreditation bodies and the certification bodies charge feesfor their services.
• The various accreditation bodies have mutual agreementswith each other to ensure that certificates issued by one ofthe accredited certification bodies (CB) are acceptedworldwide. Certification bodies themselves operate underanother quality standard, ISO/IEC 17021, while accreditationbodies operate under ISO/IEC 17011.
•
Implementing ISO 9000 Quality Management System• Step 1: Top management commitment
Step 2: Establish implementation teamStep 3. Start ISO 9000 awareness programsStep 4: Provide TrainingStep 5. Conduct initial status surveyStep 6: Create a documented implementation planStep 7. Develop quality management system documentationStep 8: Document controlStep 9. ImplementationStep 10. Internal quality auditStep 11. Management reviewStep 12. Pre-assessment auditStep 13. Certification and registrationStep 14: Continual Improvement
ISO 14000• The family ISO 14000 addresses various aspects of
environmental management. The very first twostandards, ISO 14001:2004 and ISO14004:2004 dealwith environmental management systems (EMS).ISO14001:2004 provides the requirements for an EMSand ISO14004:2004 gives general EMS guidelines.
• An EMS meeting the requirements of ISO 14001:2004 is a management tool enabling an organization of any size or type to: • identify and control the environmental impact of its activities, products
or services, and to
• improve its environmental performance continually, and to
• implement a systematic approach to setting environmental objectives and targets, to achieving these and to demonstrating that they have been achieved.
Benchmarking
• Benchmarking is the process of comparing one's business processes and performance metrics to industry bests or best practices from other companies.
• Dimensions typically measured are quality, time and cost.
• In the process of best practice benchmarking, management identifies the best firms in their industry, or in another industry where similar processes exist, and compares the results and processes of those studied (the "targets") to one's own results and processes.
The following is an example of a typical benchmarking methodology:
• Identify problem areas: Because benchmarking can be applied toany business process or function, a range of research techniquesmay be required. They include informal conversations withcustomers, employees, or suppliers; exploratory research techniquessuch as focus groups; or in-depth marketing research, quantitativeresearch, surveys ,questionnaires, re-engineering analysis, processmapping, quality control variance reports, financial ratio analysis, orsimply reviewing cycle times or other performance indicators.
• Identify other industries that have similar processes: For instance,if one were interested in improving hand-offs in addiction treatmentone would identify other fields that also have hand-off challenges.These could include air traffic control, cell phone switching betweentowers, transfer of patients from surgery to recovery rooms.
• Identify organizations that are leaders in these areas: Look for the very best in any industry and in any country. Consult customers, suppliers, financial analysts, trade associations, and magazines to determine which companies are worthy of study.
• Survey companies for measures and practices: Companies target specific business processes using detailed surveys of measures and practices used to identify business process alternatives and leading companies. Surveys are typically masked to protect confidential data by neutral associations and consultants.
• Visit the "best practice" companies to identify leading edge practices: Companies typically agree to mutually exchange information beneficial to all parties in a benchmarking group and share the results within the group.
• Implement new and improved business practices: Take the leading edge practices and develop implementation plans which include identification of specific opportunities, funding the project and selling the ideas to the organization for the purpose of gaining demonstrated value from the process.