Malcolm Baldrige Award

Operations Management
Applied Research Synopsis

Darshan S Roll # 10

Submitted to Prashanth N Bharadwaj

USA. He led discussions & resolved problems regarding technology transfer to countries like India and China. 1987) w s th Son of Malcolm Baldri a congr ssman from Nebraska. led to the creation of a new public -private partnership. signed into law on August 20. efficiency and effectiveness of the government. he also held Cabinet level talks between Soviet Union which helped US industries have a better access to in the Soviet. housing and industrial goods. Inc. established in 1988. 1922 Ju y 25.MALCOLM BALDRIGE AWARD M ALCOLM B ALDRIGE Howard alcol " ac" Baldri .. Baldrige was Chairman and CEO of Scovill. 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. 1987. The Award Program. His servic e as Secretary of Commerce was one of the longest in history. Principal support for the program comes from the Foundation for the Malcolm Baldrige National Quality Award. Nebraska and graduated from Yale University with a bachelor's degree in 1944. (Oct r 4. Prior to entering the Cabinet. Baldrige contributed in betterment of the economy. responsive to the purposes of Public Law 100-107. He became the Secretary of Commerce for President Ronald Reagan on December 11. Jr. £¢  ¡   . 1980.. 1987 in a rodeo accident in California. he reduced the budget by more than 30% and administrative personnel by 25%. He was born in Omaha. Malcolm Baldrige died July 25. and is credited with leading its transformation from a financially troubled brass mill to a highly diversified manufacturer of consumer.

such as ISO 9000. and identify their strengths and opportunities for improvement y The Baldrige Criteria address all key areas of a business and are compatible with other performance improvement initiatives. analysis. and pursue performance excellence. you can organize and integrate these approaches. and process efficiency workforce satisfaction and engagement revenue and market share social responsibility ¥ ¤ . Lean. diagnose their overall performance management system. 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. and loyalty product and service outcomes. The Baldrige Criteria are a valuable framework for measuring performance and planning in an uncertain environment. they are required to submit an application based on Crit ria of Perfor ance Excellence. The Criteria help businesses achieve and sustain the highest national levels of y y y y y customer satisfaction. improve productivity and effectiveness. and knowledge management Workforce focus Process management Results The Criteria serve two main purposes: y Identify Baldrige Award recipients to serve as role models for other organizations Help organizations assess their improvement efforts. The Criteria of performance excellence are broadly categorised into 7 categories:        Leadership Strategic planning Customer focus Measurement. and Six Sigma. engagement. Using the Baldrige framework.Companies headquartered in US can apply for this award.

Improved management understanding of the factory floor. Establishing guidelines and criteria that can be used by business. and greater emphasis on statistical process control can lead to dramatic improvements in the cost and quality of manufactured products. quality improvement programs must be management-led and customer-oriented. 3." o o . recognizing the achievements of those companies that improve the quality of their goods and services and providing an example to others. The leadership of the United States in product and process quality has been challenged strongly (and sometimes successfully) by foreign competition. 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. 6. 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. and this may require fundamental changes in the way companies and agencies do business. and our Nation's productivity growth has improved less than our competitors' over the last two decades. and 8. worker involvement in quality. 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. to service industries as well as manufacturing. governmental. and to the public sector as well as private enterprise. 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. Strategic planning for quality and quality improvement programs. and other organizations in evaluating their own quality improvement efforts. through a commitment to excellence in manufacturing and services. industrial. 4. 7. a national quality award program of this kind in the United States would help improve quality and productivity by: o helping to stimulate American companies to improve quality and productivity for the pride of recognition while obtaining a competitive edge through increased profits. and increased profitability. lower costs.IMPACT AND AIMS OF MALCOLM BALDRIGE AWARD (AS PER GOVERNMENT R EPORT): 1. The concept of quality improvement is directly applicable to small companies as well as large. 2. 5. In order to be successful.

and U. Overall. compared to the commercial best in class. With a reputation for being able to do the near impossible. industry.  FM&T s use of the Six Sigma plus Continuous Improvement Model ensures integration of customer and business requirements into all design projects. Donations of employ ee volunteer hours averaged roughly 15. FM&T has a $540 million operating budget and employs 2. and this level has been maintained at 96 percent for the past four quarters. Use of this approach has resulted in cost savings from increased productivity and deployed innovations of between $23.4 percent in FY2006 to 99 per cent in FY2008. On December 7.704 people.S.5 million and $27 millio n annually for the past three fiscal years. 2009 was chosen as the winner of the prestigious Malcolm Baldrige National Quality Award he nation s highest honour for innovation and performance excellence. whose levels range from 78 percent to 85 percent for the same period. compared to a commercial best-in class level of 95 percent for the same period. universities. Honeywell Federal Manufacturing & Technologies (FM&T). FM&T supports government agencies. ¦ . 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. is a management and operations contractor with the National Nuclear Security Administration (NNSA) it is a multidisciplinary engineering and manufacturing operations specializing in electrical. LLC.  The combined quality/reliability performance level has been at 99. mechanical.000 hours per year from 2006 to 2009. and the Christmas in October and Harvesters food collections. such as Honeywell Hometown Solutions.  FM&T demonstrates good citizenship through employeegiving programs.HONEYWELL RECEIVES PRESTIGIOUS M ALCOLM BALDRIGE NATIONAL QUALITY A WARD Honeywell Federal Manufacturing & Tec nologies. The level for nontraditional customers has been trending favourably. The percentage of customers willing to continue work with FM&T is measured by quarter.9 percent for traditional customers for the past three years. and engineered material components for national defence systems. the FM&T Employees Club. from roughly 98. national laboratories.

edu How the Baldrige Award really works by HBR .AttachmentServlet ?annid=A880D597E -8E7B-15D8-EA3B-AD1F0EE591D9 http://www.nist.org/wiki/ Case_Studies_on_Operations_and_Project_Management of ICFAI management institute Honeywell OS Orientation for Management. 5.com http://findarticles. By using the following model 1.mit. 3.gov/index.nist.html http://www. Control) methods Apply Cycles of Leaning Also Companies Core Competencies VIRO (Valuable..wikipedia. Satisfied and Safe and they regularly follow Skip level meetings and have boxes like Ask the president etc.pdf http://www.org/ http://sloanreview. All these have helped them removed the barriers for improvement and achieve great quality in their product delivery.gov/PDF_files/Honeywell_Award_Application_Summary. Commitments Kept and are always trying for continuous improvement and Process Delivery etc.honeywell.In addition to these a few more notable points was the company s the Culture of Organisation of Commitments Made.. Measure.honeywell.com/sites/servlet/com. Analyse..servlets. REFERENCES: y y y y y y y y y y y http://www. Collect Performance Feedback Prioritize Opportunities Launch teams Apply DMAIC(Define.npoint. Improve.com/p/articles/ http://hbr. and an Opportunity to exploit). The company aims keep the workforce focused. 4. hard to Imitate. 2. the Company follows daily accountability and uses Balance Scorecard and Strategic plan for Assessment.pdf http://en. Rare.baldrige.merx.