TOTAL QUALITY MANAGEMENT (MGT510)

ASSIGNMENT
HASSAN AMIR (MC190402450)

The case:

In the late 1990s, Lockheed Martin Missiles and Fire Control (MFC) committed to applying Dr.
Deming's 14 management points to increase productivity at its Texas operation. Over the past 15
years, MFC has received several national awards for their commitment to continuous
improvement and performance excellence, including five Facilities Excellence Council Awards,
Eight Industry Week Top 10 Best Plant Awards, 12 James S. Cogs well Awards for Superior
Industrial Security, and 17 Occupational Excellence Awards.
In 2012, the company received the Malcolm Baldrige National Quality Award (MBNQA) for
performance excellence. The Malcolm Baldrige National Quality Award represents one of the
highest honors that are awarded to American companies for their achievements in leadership,
strategic planning, customer focus, measurement and analysis, human resource and operations
focus, and business results.
According to MFC's president, Mr. James F. Berry, “Receiving the Malcolm Baldrige Award is a
tremendous honor for the company and it represents the culmination of a 15-year journey
focused on performance excellence, which has been ingrained in all we do. It is a testament to
our employees' dedication to excel in every aspect of our business and deliver unmatched value
to our customers."

Lockheed Martin's commitment to excellence reflects the core of Deming's philosophy. The
company’s program resulted in annual savings of $225 million. Also, MFC reported customer

loyalty rates improved by 18 percent between 2007-2012. Employee retention rates were 95
percent in 2011 and 94 percent in 2012, and 100 percent of customers said they would do
business with MFC in the future. To keep on track the customer satisfaction and business
excellence the MFC’s President Mr. James decided to implement the six sigma techniques in the
company.

Requirements:

 Compare the Deming Points with the Malcolm Baldrige National Quality Award (MBNQA)
criteria. What are the three main differences? (2+2+2=6 marks)

Deming Points MBNQA

1 treats quality as defined by manufacturers considers quality to be customer-driven

 TOTAL QUALITY MANAGEMENT (MGT510)
ASSIGNMENT
HASSAN AMIR (MC190402450)

2 The Deming cycle is a continuous quality The Baldrige Criteria for Performance
improvement model  Excellence

3 Deming Prizes focuses on statistical control MBNQA concentrates on modern

which is a traditional quality control method business concept such as customer
satisfaction

 You are required to discuss how six sigma techniques help MFC company in the improvement
of Malcolm Baldrige National Quality Award (MBNQA) criteria? (2+2=4 marks)

1. Six Sigma process enables an organization to measure the number of “defects” in a

process, methods to eliminate them and get close to “zero defects” as much as possible.
2. Six Sigma is a framework to make an organization more competitive by focusing on
being effective and efficient