Ch-5 (Quality Awards)

5-1 Excel Books Total Quality Management Text and Cases G Nagalingappa, Manjunath V S

Copyright © 2010, G Nagalingappa, Manjunath V S

Quality AwardsCH-5

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5 QualityAwards



Quality AwardsCH-5

Introduction

The popular awards which have contributed for

development best quality practices in the world include

MBNQA, Deming award, European Quality Award etc.

The Toyota gained as result of positive learning's

from winning Deming Award.



Quality AwardsCH-5

Cont….

The Malcolm Baldrige National Quality Award (MBNQA)The Malcolm Baldrige National Quality Award (MBNQA) is presented annually by the President of the United States to organizations that demonstrate quality & performance.

Three awards may be given annually in each of six categories:

1. Manufacturing

2. Service company

3. Small business

4. Education

5. Healthcare

6. Nonprofit



Quality AwardsCH-5

• Malcolm Baldrige National Quality Award– The award is open to small (less than 500 employees) and

large firms (more than 500 employees) in the manufacturing and service sectors.

– It is not open to public-sector and not-for-profit organizations.

– There can be only two winners per category each year, which limits the number of yearly awards to six.



Quality AwardsCH-5

• Established by US Congress in 1987 for manufacturers, service business & small business, the Baldrige Award was designed to raise awareness of quality management & recognize US companies that have implemented successful QMS.

• The education & healthcare categories were added in 1999. A govt & non-profit category was added in 2007.

About MBNQA



Quality AwardsCH-5

• The Baldrige is named after the late Secretly of Commerce Malcolm Baldrige, a proponent of quality management. The US Commerce Department’s National Institute of Standards and Technology manages the award and ASQ administers.



Quality AwardsCH-5

Purpose of MBNQA• The intention of this award1.Helping to stimulate American companies to

improve quality & productivity for the pride of recognition while obtaining a competitive edge through increased profit.

2.Recognizing the achievements of those companies that improve the quality of their goods & services & provide an example to others.



Quality AwardsCH-5

Purpose of MBNQA• The intention of this award3. Establishing guidelines & criteria that can be used by

business, industrial, governmental & other organizations in evaluating their own quality improvements efforts.

4. Providing specific guidance to other American organizations that wish to learn to manage high quality, by making available the detailed information on how winning organizations were able to change their cultures & achieve reputation.



Quality AwardsCH-5Key Characteristics of the

MBNQA– The criteria focus on business results. Companies must

show outstanding results in a variety of areas to win.– The Baldrige criteria are non-prescriptive and adaptive.

Although the focus on the Baldrige is on results, the means for obtaining these results are not prescribed.

– The criteria support company-wide alignment of goals and processes.

– The criteria permit goal-based diagnosis. The criteria and scoring guidelines provide assessment dimensions.



Quality AwardsCH-5

2StrategicPlanning

3Customer andMarket Focus

5Human

Resource Focus

6Process

Management

7Business Results

4Information and Analysis

1Leadership

Malcolm Baldrige Quality Award Criteria Framework



Quality AwardsCH-5

Categories PointsLeadership 120Strategic Planning 85Customer and Market Focus 85Information and Analysis 90Human Resource Focus 85Process Management 85Business Results 450Total 1000



Quality AwardsCH-5Baldridge criteria for perforamce.

1. Leadership: How upper management leads the organization,

and how the organization leads within the community.

It examines how the senior leaders address values, direction & performance expectations as well as focus on customers & other stakeholders.

It examines the governance of the organization & its social & community responsibilities.



Quality AwardsCH-5

• 2. Strategic planning:• How organization establishes & plans to implement

strategic directions. This objective examines how chosen objectives and plans are developed and how the progress is measured.

3. Customer & market focus: How the organization builds & maintains strong, lasting

relationship with customers. It focuses on how the organization determines the customer requirements, expectations & preferences, how it determines the key factors leading to customer acquisition, satisfaction, loyalty, retention & business expansion.



Quality AwardsCH-5

4. Measurement, analysis, & Knowledge management:

How organization uses data to support key processes & manage performance. This includes how an organization selects, gathers, analyzes, manages & improves its data information & knowledge assets.



Quality AwardsCH-5

5. Human Resource focus:How the organization empowers & involves its

workforce. It focuses on employee’s motivation & participation,

development of employees to their full potential, & their contribution to organizational objectives.

It also examines the efforts to build a work environment & employee support environment which can bring performance excellence leading to personal & organizational growth.



Quality AwardsCH-5

• 6. Process management: • How the organization designs, manages and

improves key processes. • This includes key products, services &

business processes for creating customer & organizational value, & key support processes involving all work units.



Quality AwardsCH-5

7. Business/organizational performance results:• How the organization performs in terms of

customer satisfaction, finances, human resources, suppliers & partner performance, operations, governance & social responsibility & how the organization compares with its competitors.



Quality AwardsCH-5Winners of MBNQA Award

• Year 2008: • Manufacturing: Cargill Corn North America

Wayzata, Minn. • Healthcare: Poudre Valley Health System Ft. Collins,

Colo.• Education: Iredell-Statesville Schools Statesville,

N.C. The other popular companies who won MBNQA

include Motorola, Xerox Corporation, IBM, Texas Instruments.



Quality AwardsCH-5

Cont….

Deming Prize

The late Dr. W. E. Deming (1900-1993), one of the

foremost experts of quality control in the United States,

was invited to Japan by the Union of Japanese Scientists

and Engineers (JUSE) in July 1950. Deming Prize

Awarded to individuals and groups who have contributed to the field of quality control.



Quality AwardsCH-5

Deming Prize for QualityDeming Prize for Quality

• Deming Prize– The Deming Prize for quality was established in 1951 by

the Japanese Union of Scientists and Engineers (JUSE).– Three categories of awards

• Deming Application Prize for Division• Deming Application Prize for Small Business• Quality Control Award for Factory

– There is no limit on the number of companies that can receive the award in a given year.

– The Deming Prize is much more focused on processes than is the Baldrige.



Quality AwardsCH-5

Cont….

Categories of AwardCategories of Deming Prize

The Deming Prize for Individuals

Given to those who have made outstanding contributions to the study of TQM or statistical methods used for TQM, or those who have made outstanding contributions in the dissemination of TQM.

The Deming Application Prize

For organizations or divisions of organizations that manage their business autonomously.Given to organizations or divisions of organizations that have achieved distinctive performance improvement through the application of TQM in a designated year.

The Quality Control Award for Operations Business Units

For operations business units of an organization.Given to operations business units of an organization that have achieved distinctive performance improvement through the application of quality control/management in the pursuit of TQM in a designated year.



Quality AwardsCH-5

Cont….

On-SiteExamination

Schedule A(Applicant Company

Initiated)

Schedule B(Examiner Initiated)

Executive Session

Operational SitePresentations

Review Materials

Examination at the Operational Site

General Question and

Answer Session

Reference Examination(as needed)

Important TQMPractices

Presentations



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• Assessment Procedure: • Has 10 major categories with each major

category subdivided into subcategories. • The evaluation process is highly cumbersome. • Allowing applicant companies to emphasis on

practices. • The examiner are free & authorized to

interview & question heads of the department.



Quality AwardsCH-5Deming Prize Winner

• Year 2008:• The Deming prize for Individuals: Masahiro Sakane, Chairman, Komatsu Limited.The Deming Application Prize: Tata Steel Limited (India). Year 2007:The Japan Quality Medal Mahindra & Mahindra Limited, Farm Equipment

Sector (India)



Quality AwardsCH-5Deming Prize Winner

Year 2007:The Deming Application Prize:Asahi India Glass Limited, Auto Glass Division

(India)Rane (Madras) Limited (India)The Quality Control Award for Operations

Business Units. Reliance Industries Limited, Hazira Manufacturing

Division (India)



Quality AwardsCH-5European Quality Award (EQA)

• European Quality Award (EQA)– The highest level is the EQA for the

most accomplished applicant in a given year.

– The second level given is the European Quality Prize for other firms that meet the award criteria.



Quality AwardsCH-5

People Management

9 %

Policy andStrategy 8 %

Resources9 %

Process14 %

PeopleSatisfaction

9 %

CustomerSatisfaction

20 %

Impact onSociety 6 %

BusinessResults

15 %

Enablers Results

Leadership10 %

European Quality Award



Quality AwardsCH-5

Cont….

Golden Peacock Award The Golden Peacock National Quality Award named after India’s

national bird the peacock is, awarded every year.

This award is regarded as India’s Malcolm Baldrige Quality Award,

which is recognition for quality.

The award is presented by the Quality Council of India (QCI).



Quality AwardsCH-5Normal Categories

• Large Enterprise: 251 & > employees• Medium Enterprise: 51-250 employees• Small Enterprise: Up to 50 employees



Quality AwardsCH-5Special categories:

1. Education, training, research & development, testing & inspection.

2. Services sectors covering tourism, transport, couriers hotels & hospitality healthcare, telecommunication, professional consultancies, financial institutions.

3. Government organizations, undertakings and services.



Quality AwardsCH-5

Cont….

StrategicPlanning80 Points

8 %

Human Resource

Management100 Points

10 %

InformationManagement

80 Points8 %

ProcessManagement

120 Points

12 %

EmployeeSatisfaction100 Points

10 %

CustomerSatisfaction150 Points

15 %

Impact onSociety

100 Points10 %

BusinessResults

150 Points

15 %

Enablers 500 Points 50 % Results 500 Points 50 %

Organizational Leadership

120 Points

12 %

Golden Peacock National Quality Award Model



Quality AwardsCH-5

Cont….

Past Winners of Golden Peacock National Quality Award

Year 2007

1. Ordnance Factory, Indian Ordnance Factories, Medak

2. Bhilai Steel Plant, Steel Authority of India, Bhilai

3. Mathura Jalandhar Pipeline, Indian Oil Corporation Limited, New Delhi

4. Mahindra and Mahindra Limited, Farm Equipements Sector, Mumbai

5. Aditya Birla Insulators, West Bengal

6. Reliance Energy Limited

7. Tata Sponge Iron Limited, Orissa

8. Mahindra Lifespace Developers Limited, Pune



Quality AwardsCH-5

Year 2005

1. Bharat Petroleum Corporation, Refinery division

2. National Thermal Power Corporation, National Capital Power Station

3. ITC Limited, ILTD Division

4. Coach Rehabilitation workshop, Western Central Railway

5. Manipal Hospital, Bangalore

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Ch-5 (Quality Awards)