The Malcolm Baldrige The Malcolm Baldrige National Quality Assurance National Quality Assurance AwardAward

The Quest for Excellence

Eric Santostefano

AgendaAgenda

What is the Malcolm Baldrige National Quality Award?

Malcolm Baldrige, the man Reasons for establishment of the award How award helps an organization How organization is chosen Seven key areas to winning, and relative point

values Real world example; Dana Corporation-Spicer

Driveshaft Division Quick exercise

What Is the Malcolm Baldrige What Is the Malcolm Baldrige Quality Award? Quality Award? Program established in 1987

by congressRaised awareness of the importance of quality and performance in businessAward is given annually to companies in the manufacturing and service sectors

Malcolm BaldrigeMalcolm Baldrige

Secretary of Commerce from 1981 to 1987 He was a very big proponent of

quality management at a time when quality was not a large issue He helped draft one of the early

versions of the Quality Improvement Act In recognition of his contributions in showing the importance of quality, the award was named

after him.

Reasons for the Establishment Reasons for the Establishment of the Malcolm Baldrige Quality of the Malcolm Baldrige Quality AwardAward

Government officials saw that quality improvement was no longer an option for American business, but a necessity

Many businesses did not think quality was an important issue

Others knew that it was important, but did not know where to begin the improvement process

How Can the Award Be Used to How Can the Award Be Used to Help an Organization? Help an Organization?

The criteria for winning the award are very demanding and simply

trying to align a company to them is highly beneficial

It can be used as a motivational tool for workers to rally behind a common goal

Simply by competing for the award an organization sees the importance of quality in their business

How an Organization Is How an Organization Is Chosen As a MBNQA WinnerChosen As a MBNQA Winner

55% of evaluation is based on how the organization is run, 45% on the basis of performance

Every major part of the organization is accessed

Continuous improvement and reevaluation is very important

Seven Key Areas Specific to Seven Key Areas Specific to Winning the AwardWinning the Award1. Leadership2. Strategic Planning3. Customer and Market Focus4. Information and Analysis5. Human Resources Development and

Management6. Process Management7. Business Results

Point Values for the Seven Key Point Values for the Seven Key Areas of EvaluationAreas of Evaluation

110 points – Leadership80 points – Strategic Planning80 points – Customer and Market Focus80 points – Information Analysis100 points – Human Resources100 points – Process Management450 points – Business Results

The Board of ExaminersThe Board of Examiners

Independent board researches each competing organization, and

follows the specific criteria previously mentioned

Site visits consist of 4-6 examinersExaminers are all volunteersAppointment to the Board of Examiners is

a very prestigious honor

Real World Example: What It Real World Example: What It Takes to be a Malcolm Baldrige Takes to be a Malcolm Baldrige Award WinnerAward Winner

Dana Corporation-Spicer Driveshaft Division: 2000 Award Winner in Manufacturing Division

Company’s quality policy—“Dedicated to total quality and continuous improvement”—guides the entire business

Customer complaints have dropped steadily, from 6.8 per million units shipped in 1995 to about 2.8 in 2000, and since 1996, Spicer Driveshaft has not lost a single customer.

ExerciseExercise

1. How many companies are given the MBNQA each year?a. 4b. 8c. 6

2. How much are the board of examiners paid for their position?3. How many key areas of each company are examined by the

board during review?a. 10b. 3c. 9d. 7

Exercise AnswersExercise Answers

1. C; 6 companies are given the award each year2. Nothing; the board is a group of

volunteers of experts from industry, education, government and non-profit organizations

3. 7; there are seven key areas each with a relative number of points adding to the total score

SummarySummary MBNQA is a program established in 1987 to raise the awareness of quality in American

business Named after Malcolm Baldrige for his contributions in

showing importance of quality Simply aligning to criteria of award is very beneficial

to the success of any organization Seven key areas specific to winning the award Prestigious board of examiners serve on a volunteer

basis to select the winners each year Winning companies must have a total quality

management system built into their yearly strategy

BibliographyBibliography

Baldrige National Quality Program. www.quality.nist.gov

Foundation for the Baldrige National Quality Award. www.baldrigefoundation.org

Discover Free Quality. www.freequality.org

OISM 470W Class Notes. Chapter 3. Thomas Foster, Jr. and F. Chelko.