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Baldrige Award
The Baldrige Award was established in 1987 to promote quality awareness, understand the requirements for quality excellence, and share information about successful quality strategies and benefits. There are three eligibility categories: manufacturing, services, and small firms. Unlike the Deming Prize, public or not-for-profit organizations are not qualified. Also, there is no category in which all applicants that satisfy a given level of performance receive a quality prize. Since its foundation, there are only five companies who received this prize. According to its principles, the role of quality data collection and analysis as the basis for managerial decisions is paramount. Furthermore, quality efforts should not concentrate only on the elimination of defects but also encompass creative activities that will influence customer satisfaction. Among Baldrige winners, there are no service companies.
Check list of application for Deming Award - Organization and its Management
1. Explicitness of the scopes of authority and responsibility 2. Appropriateness of delegations of authority 3. Interdivisional cooperation 4. Committees and their activities 5. Utilization of staff 6. Utilization of QC Circle activities 7. Quality control diagnosis
4. 5.
6. 7.
Check list of application for Deming Award Collection, Dissemination and Use of Information of Quality
1. Collection of external information 2. Transmission of information between divisions 3. Speed of information transmission (use of computers) 4. 4. Data processing statistical analysis of information and utilization of the results
5. 6. 7.
8. 9. 10. 11.
Check list of application for Deming Award - Planning for the Future
1. Grasp of the present state of affairs and the concreteness of the plan 2. Measures for overcoming defects 3. Plans for further advances 4. Linkage with the long-term plans
1.6
2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7
10
7.50% 15 10 20 10 10 5 5
5.10 Unique and innovative approach to quality assurance of product and servicing 10
6.1
6.2 6.3 6.4 6.5 7.0 7.1 7.2 7.3 7.4 7.5
25
20 25 20 10 30% 100 50 75 50 25 1000 100%
customer-driven quality it views quality as defined by the customer customer satisfaction and quality
quality of management promote competitiveness through total quality management manufacturing, service and small business 60% result, 40% process different weight for each criteria less concern heavily concern N/A Maximum of two per category U.S. firms only $2500 and 75 pages packet six months 1987 National Institutes Standards and Technology
conformance to specifications it views quality as defined by the producers statistical quality control
management of quality promote quality assurance through statistical techniques essentially private or public manufacturing 60% process, 40% results equal weight in 10 criteria concern in productivity, delivery, safety, and environment less concern Japan Quality Control Medal All firms meeting standard Firms for any country 1000 pages and one year working with consultant from the union of Japanese Scientist & Engineers one year 1951 Union of Japanese Scientists and Engineers
utilization of analysis technique or system utilization of information about product quality and servicing quality customer data and analysis analysis of quality and data of subcontractor and distributor or sales agent
operation target and strategy target function of planning quality improvement plan
QC circle activities
Grading Criteria
quality consciousness and participation of employees training and education concerning quality personnel assessment, motivation, award system innovative strategy concerning utilization of human resource
measurement, standardization, utilization of statistical data system methods engineering, audit, recording linkage with proper technology quality analysis, process analysis utilization of analytical results
safety, health and sanitation, ,environment approach to quality assurance of product and servicing
reliability and achievement of product and servicing reduction of scrap, rework, rejection, concerning product and servicing reduction of complaint and claim suit concerning quality innovative index and economic gain for quality improvement
method of establishing, revising, and abolishing standards and their outcome utilization of statistical methods contents of the standards
quality of product and system for the control of servicing from customers viewpoint quality and related matters
comparison of competitiveness of product and servicing customer servicing and countermeasure for complaint assurance from customers viewpoint technique to grasp customer satisfaction control items and control points utilization of such statistical control methods as control charts and other statistical concepts contribution to performance of QC circle actual conditions of control activities
8.
Quality Assurance
substantive results in quality, services, delivery time, cost, profits, safety environments intangible results
10. Planning for the Future grasp of the present state of affairs and the concreteness of the plan
Motorola (1998)
1. In the past five years, Motorola has reduced its defect rate in manufacturing 99.5%, generating cost savings estimated at about $900 million this year, and $3.1 billion cumulatively. Motorolas prices fall an average of 8-12 percent a year; its cellular phone prices 25% a year.
2.
3.
Minority report program. Employees can file a report if they feel that their ideas are not being supported. An example is the concept behind the microprocessor 68000 series which later became the brains of Apples Macintosh line. In 1987, Motorola announced two productivity goals: to reduce manufacturing defects by 90% every two years, and reduce cycle (new product development) time by 90% every five years.
4.
Quality Achievements
Ames
1. Every teammate at Ames is a member of at least one involvement group dedicated to quality improvement. The company currently has 40 of these groups.
2. The percentage of defective parts reaching customers is among the lowest in the industry. For Ames largest customer, the defect rate has been reduced since 1989 from more than 30,000 parts per million to 11.
3. Productivity, as measured by sales per employee, increased by 48% from 1987 to 1992. 4. Over the past five years, teammate ideas have saved the company and its customers more than $3 million and will average over $2,700 per teammate in 1993. 5. Ames product warranties are among the best in the industry and include a comprehensive warranty for prototypes, which refunds development costs if specifications are not achieved. 6. Ames has developed a consolidated supplier base be selecting suppliers who share the companys quality values and are responsive to its established continuous improvement goals. Down from 42 key suppliers in 1989, Ames Rubber Corp. now relies on 19 suppliers whose quality performance is about 99%.
a. Operating Measures Reliability Timeliness of delivery Order processing time Errors or defects Product lead time Inventory turnover Costs of quality a.Employee-related measures Employee satisfaction Attendance Turnover Safety/health Suggestions received a.Customer Satisfaction Overall customer satisfaction Customer complaints Customer retention a. Financial Performance Market share Sales per employee Return on assets Return on sales
0 0 0 1 1 2 0 0 3 1 0 0 2 0 4 0 0 0 0
Source: Adapted from U.S. General Accounting Office, Management Practices: U.S. Companies Improve Performance Through Quality Efforts , Washington, 1991, pp. 18-28.
SPRING 1993
Result
1. 2. 3. 4. 5. 6. 7.
Increased Customer Satisfaction Lower Costs Reduced Product Development Time Increased Employee Satisfaction Higher Quality Products Innovation Increased Productivity
Percent
SVC ED
Categories
Percent
HE K-12
Categories