Malcolm Baldrige Award

Operations Management
Applied Research Synopsis

Darshan S Roll # 10

Submitted to Prashanth N Bharadwaj

MALCOLM BALDRIGE AWARD

M ALCOLM B ALDRIGE
Howard alcol " ac" Baldri , Jr. (Oct r 4, 1922 Ju y 25, 1987) w s th Son of Malcolm Baldri a congr ssman from Nebraska, USA. He was born in Omaha, Nebraska and graduated from Yale University with a bachelor's degree in 1944. He became the Secretary of Commerce for President Ronald Reagan on December 11, 1980. He led discussions & resolved problems regarding technology transfer to countries like India and China, he also held Cabinet level talks between Soviet Union which helped US industries have a better access to in the Soviet. Baldrige contributed in betterment of the economy, efficiency and effectiveness of the government, he reduced the budget by more than 30% and administrative personnel by 25%. Prior to entering the Cabinet, Baldrige was Chairman and CEO of Scovill, Inc... and is credited with leading its transformation from a financially troubled brass mill to a highly diversified manufacturer of consumer, housing and industrial goods. Malcolm Baldrige died July 25, 1987 in a rodeo accident in California. His servic e as Secretary of Commerce was one of the longest in history. Ronald Reagan once said

The economic liberty and strong competition that are indispensable to economic progress were principles that "Mac"Baldrige stressed "

INTRODUCTION TO BALDRIGE AWARD:

The Malcolm Baldrige National Quality Improvement Act of 1987:

The Malcolm Baldrige National Quality Award was created by Public Law 100107, signed into law on August 20, 1987. The Award Program, responsive to the purposes of Public Law 100-107, led to the creation of a new public -private partnership. Principal support for the program comes from the Foundation for the Malcolm Baldrige National Quality Award, established in 1988.

Companies headquartered in US can apply for this award; they are required to submit an application based on Crit ria of Perfor ance Excellence, an independent board of examiners is appointed by the government who call the company for interviews verify and clarify the information provided by the applicants. The Criteria of performance excellence are broadly categorised into 7 categories:

      

Leadership Strategic planning Customer focus Measurement, analysis, and knowledge management Workforce focus Process management Results

The Criteria serve two main purposes:

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Identify Baldrige Award recipients to serve as role models for other organizations Help organizations assess their improvement efforts, diagnose their overall performance management system, and identify their strengths and opportunities for improvement

The Baldrige Criteria address all key areas of a business and are compatible with other performance improvement initiatives, such as ISO 9000, Lean, and Six Sigma. Using the Baldrige framework, you can organize and integrate these approaches, improve productivity and effectiveness, and pursue performance excellence. The Baldrige Criteria are a valuable framework for measuring performance and planning in an uncertain environment. The Criteria help businesses achieve and sustain the highest national levels of
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customer satisfaction, engagement, and loyalty product and service outcomes, and process efficiency workforce satisfaction and engagement revenue and market share social responsibility

IMPACT AND AIMS OF MALCOLM BALDRIGE AWARD (AS PER GOVERNMENT R EPORT):
1. The leadership of the United States in product and process quality has been challenged strongly (and sometimes successfully) by foreign competition, and our Nation's productivity growth has improved less than our competitors' over the last two decades. 2. American business and industry are beginning to understand that poor quality costs companies as much as 20 percent of sales revenues nationally and that improved quality of goods and services goes hand in hand with improved productivity, lower costs, and increased profitability. 3. Strategic planning for quality and quality improvement programs, through a commitment to excellence in manufacturing and services, are becoming more and more essential to the well-being of our Nation's economy and our ability to compete effectively in the global marketplace. 4. Improved management understanding of the factory floor, worker involvement in quality, and greater emphasis on statistical process control can lead to dramatic improvements in the cost and quality of manufactured products. 5. The concept of quality improvement is directly applicable to small companies as well as large, to service industries as well as manufacturing, and to the public sector as well as private enterprise. 6. In order to be successful, quality improvement programs must be management-led and customer-oriented, and this may require fundamental changes in the way companies and agencies do business. 7. several major industrial nations have successfully coupled rigorous private-sector quality audits with national awards giving special recognition to those enterprises the audits identify as the very best; and 8. a national quality award program of this kind in the United States would help improve quality and productivity by:
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helping to stimulate American companies to improve quality and productivity for the pride of recognition while obtaining a competitive edge through increased profits; recognizing the achievements of those companies that improve the quality of their goods and services and providing an example to others; Establishing guidelines and criteria that can be used by business, industrial, governmental, and other organizations in evaluating their own quality improvement efforts; and providing specific guidance for other American organizations that wish to learn how to manage for high quality by making available detailed information on how winning organizations were able to change their cultures and achieve eminence."

HONEYWELL RECEIVES PRESTIGIOUS M ALCOLM BALDRIGE

NATIONAL QUALITY A WARD
Honeywell Federal Manufacturing & Tec nologies, On December 7, 2009 was chosen as the winner of the prestigious Malcolm Baldrige National Quality Award he nation s highest honour for innovation and performance excellence. Honeywell Federal Manufacturing & Technologies (FM&T), LLC, is a management and operations contractor with the National Nuclear Security Administration (NNSA) it is a multidisciplinary engineering and manufacturing operations specializing in electrical, mechanical, and engineered material components for national defence systems. With a reputation for being able to do the near impossible, FM&T supports government agencies, national laboratories, universities, and U.S. industry. Overall, FM&T has a $540 million operating budget and employs 2,704 people.

BELOW ARE THE HIGHLIGHTS THAT HELPED FM&T WIN THE BALDRIGE AWARD:
 Overall customer satisfaction has been at or above 95 percent for the past four years, compared to the commercial best in class, whose levels range from 78 percent to 85 percent for the same period. The percentage of customers willing to continue work with FM&T is measured by quarter, and this level has been maintained at 96 percent for the past four quarters, compared to a commercial best-in class level of 95 percent for the same period.  The combined quality/reliability performance level has been at 99.9 percent for traditional customers for the past three years. The level for nontraditional customers has been trending favourably, from roughly 98.4 percent in FY2006 to 99 per cent in FY2008.  FM&T s use of the Six Sigma plus Continuous Improvement Model ensures integration of customer and business requirements into all design projects. Use of this approach has resulted in cost savings from increased productivity and deployed innovations of between $23.5 million and $27 millio n annually for the past three fiscal years.  FM&T demonstrates good citizenship through employeegiving programs, such as Honeywell Hometown Solutions, the FM&T Employees Club, and the Christmas in October and Harvesters food collections. Donations of employ ee volunteer hours averaged roughly 15,000 hours per year from 2006 to 2009.

In addition to these a few more notable points was the company s the Culture of Organisation of Commitments Made, Commitments Kept and are always trying for continuous improvement and Process Delivery etc... By using the following model 1. 2. 3. 4. 5. Collect Performance Feedback Prioritize Opportunities Launch teams Apply DMAIC(Define, Measure, Analyse, Improve, Control) methods Apply Cycles of Leaning

Also Companies Core Competencies VIRO (Valuable, hard to Imitate, Rare, and an Opportunity to exploit), the Company follows daily accountability and uses Balance Scorecard and Strategic plan for Assessment. The company aims keep the workforce focused, Satisfied and Safe and they regularly follow Skip level meetings and have boxes like Ask the president etc.. All these have helped them removed the barriers for improvement and achieve great quality in their product delivery.

REFERENCES:
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http://www.baldrige.nist.gov/PDF_files/Honeywell_Award_Application_Summary.pdf http://en.wikipedia.org/wiki/ Case_Studies_on_Operations_and_Project_Management of ICFAI management institute Honeywell OS Orientation for Management.pdf http://www.nist.gov/index.html http://www.honeywell.com/sites/servlet/com.merx.npoint.servlets.AttachmentServlet ?annid=A880D597E -8E7B-15D8-EA3B-AD1F0EE591D9 http://www.honeywell.com http://findarticles.com/p/articles/ http://hbr.org/ http://sloanreview.mit.edu How the Baldrige Award really works by HBR