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LEARNING OBJECTIVES
TOPIC 9:
TQM MODELS IN AWARDING To explain and evaluate on the TQM
ORGANISATION’S QUALITY models and their criteria.
EFFORT
Prepared by:

Nurliyana Binti Mohd Shazali

Senior Lecturer
FSPPP UiTM Kampus Seremban

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INTRODUCTION 9.1 MALCOLM BALDRIGE

❖ Quality award is a form of recognition that
encourages the organisations to adapt business
improvement lessons that have been learned from
‘world class’ companies.
❖ The purposes of having Q awards:
1. Recognition of individual company.
2. Identification and exposure of ‘good practices’
for other organizations to consider as process
improvements.
3. As an innovation to encourage the public and
private sector to accelerate their interests in
leading edge technology in their industrial
sectors.
NATIONAL QUALITY AWARD
(MBNQA)
❖ One of the most powerful catalysts of TQ in US & around
the world.
❖ The award’s Criteria for Performance Excellence
established a framework that integrate TQ principles &
practices in any organisation.
❖ History:
▪ Introduced due to US declining productivity in 1980s.
▪ MBNQA was resulted after conducting several national
conferences on productivity, starting in 1983.
▪ The award requirements & processes were similar to
Deming Prize in Japan.
▪ Started in 1987 after the Malcolm Baldrige National Q
Improvement Act was signed into Public Law 100-107.

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9.1.1 Purpose of MBNQA 9.1.2 Criteria for Performance

❖ To stimulate American companies to improve
quality and productivity.
❖ Recognising the achievements of those
companies that improve the quality of their
goods and services.
❖ Establishing guidelines and criteria that can be
used by business, industrial, governmental,
and other enterprises.
Excellence
1. Leadership – Examines how senior leaders guide an
organization, its governance system, ethics, legal &
social responsibility.
2. Strategic Planning – Addresses how an organisation
develops strategic objectives and action plans, how
they are deployed, how progress is measured.
3. Customer Focus – Examines how an organisation build
a customer-focused culture; listening to VOC & make
use of customers’ info for improvements.

❖ Providing specific guidance for other American 4. Measurement, Analysis & Knowledge Management –
enterprises that wish to learn how to manage Examines how an organisation selects, gathers,
for high quality. analyzes, manages and improves its data,
information and knowledge assets.

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5. Human Resource Focus – Examines how 9.1.3 The Baldrige Framework – A System
an organisation’s work systems and HR
practices lead to performance excellence Perspective
and align with strategic objective and
Organizational Profile:
action plans. Environment, Relationships, and Challenges

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6. Process Management – Examines how an 2
Human
Strategic
organisation identifies and manages its Planning Resource
key processes for creating customer 1
Focus
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value and achieving business success and Leadership Business
growth. Results
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Customer Process
7. Business Results – Examines an Focus Management
organisation’s performance and
improvement in key business areas. 4
Measurement, Analysis & Knowledge Management

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9.1.4 Criteria Evolution 9.1.5 Baldrige Award Evaluation

Process
❖ The criteria are annually improved & evaluated.
Receive Applications

❖ Over the years, the criteria have been streamlined & Stage 1 - Independent Review
simplified – easily understood, useful for all types of
organisations & relevant to the current business No Feedback report to
Judges Select for
practices & organisational thinking. Consensus Review? applicant

❖ Till now, the criteria have evolved from emphasizing Stage 2 - Consensus Review

on QA (in P & S) to the overall performance No

Judges Select for Feedback report
excellence in the global marketplace. to applicant
Site Visit Review?

❖ E.g. Strategic Planning changed to “Strategic Quality Stage 3 - Site Visit Review
Planning” in 1994; “performance” substituted
“quality”; emphasis on governance & ethics in 2003; Stage 4 - Judges Recommend Award Feedback report
adding the term “sustainability” in 2005. Recipients to NIST Director/DOC to applicant

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9.1.6 The Impact of MBNQA 9.2 ISO 9000 Family of

Standards
❖ The Baldrige criteria for performance
excellence have played a valuable role in ISO 9000 defines quality systems standards
helping U.S. organisations to improve. as
‘certain generic characteristics of
❖ The criteria are designed to help organisations management practices can be
improve their performance by focusing on two
goals: delivering ever improving value to standardized and a well-designed, well-
customers and improving the organisation’s implemented and carefully managed
overall performance. quality system provides confidence that
the outputs will meet customer
❖ The Baldrige criteria for performance expectations and requirements’.
excellence is “probably the single most
influential document in the modern history of
American business.”

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9.2.1 5 Objectives of 9.2.2 Structure of the ISO 9000

Standardisation Standards
1. Continual improvement on products ❖ Focus on developing, documenting,
and services. and implementing procedures to
2. Continual improvement on operations. ensure consistency of operation and
performance in production and service
3. Provide confidence to internal delivery process, with the aim of
management and other employees. continual improvement, and supported
by fundamental principles of total
4. Provide confidence to customers and quality.
stakeholders.
5. Provide confidence that quality system ❖ The standards consists of 3
requirements are fulfilled. documents:
• ISO 9000, ISO 9001 and ISO 9004

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9.2.3 8 Principles of ISO 9000

ISO 9000 - ISO 9001 - ISO 9004 – 1. Customer focus
Fundamentals Requirements Guidelines for
and ❖ Provides specific performance 2. Leadership
Vocabulary requirements needs Improvements 3. Involvement of people
❖ Describes to demonstrate its
ability to provide
❖ Guidelines for
fundamental
products based on improvement 4. Process approach
background and sustaining
customers’
information
requirements. the QMS in 5. System approach to management
❖ Specifies the
❖ Need to be audited
terminology
for verification. organisation. 6. Continual improvement
used for the
systems and ❖ For customer- or 3rd 7. Factual approach to decision making
standards party audit.
8. Mutually beneficial supplier relationship

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9.2.4 MS ISO9001:2008 9.2.4.1 MS ISO 9001:2008

Requirements

 Started in 1996 through Circular No.2/1996 – ❖ Requirements are organised into 4

MS ISO9001:1994. major sections:
I. Management Responsibility
 Throughout the years, International
II. Resource Management
Organisation for Standardisation (ISO) had
made several improvements in terms of its III. Product Realization
standard requirements. IV. Measurement, Analysis and
Improvement
 MS ISO9001:2008 replaced the ISO9001:2000,
which would expired in 2010, & all agencies
need to follow the stipulated changes.

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• Commitment from top management for 9.2.4.2 MS ISO9001:2008

Management development & implementation of QMS.
Responsibility • Include being customer-focused, establish Certification Process
policy, etc.
Application • Submit application form & fee.

• Determine & provide the resources needed • Basic applicant’s QMS is audited for compliance with
to implement & maintain the QMS, & to Adequacy Audit
relevant standard & report is issued to applicant.
Resource enhance customer satisfaction.
Management • Include human resources and an • Organisation’s QS is audited & audit report with
Compliance Audit
organisation’s work environment. recommendations for certification is issued.
Preparation of • Final report recommending registration is prepared by Lead
Final Report Auditor.
Product • Plan & develop the processes for product
realisation. • Manager/Group leader reviews applicant file & forwards to
Realisation Review Process
Certification Panel.
• Including the steps from design to delivery.
Approval of • Certification Panel reviews & approves the recommended
Certification registration for certification with authority of the
• Plan & implement the monitoring, Process Certification Advisory Committee.
Measurement, measurement, analysis & improvement of
Analysis & processes. Issues of
• Certificate is issued on signing of Certification Agreement.
• Conducted through activities like internal Certificate
Improvement
audits and corrective and preventive action. Surveillance Audit • Carried out once in every 6 months or at least once a year.

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9.2.4.3 MS ISO9001:2008 Private 9.2.5 Benefits of ISO 9000

Consultancy Firms in Malaysia (same with MS ISO9001:2008)
❖ SIRIM QAS International Sdn. Bhd. ❖ Higher customer satisfaction
❖ Lloyds’ Register Of Shipping (M) Bhd.
❖ Better quality products and
services
❖ CI Certification Malaysia Sdn. Bhd. ❖ Improved and increases
productivity
❖ SGS (Malaysia) Sdn. Bhd.
❖ Decrease cost
❖ Tuv Nord (Malaysia) Sdn. Bhd. ❖ Increased management
commitment
❖ Independent European Certification (M) Sdn. Bhd.

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9.3 INDUSTRIAL
9.3.1 AKI’s Objectives
EXCELLENCE AWARD (AKI)
❖ Industrial Excellence Award (AKI) was introduced
❖ Recognise the most outstanding companies
by the Ministry of International Trade and Industry
(MITI) in 1991 to recognise outstanding Malaysian
in the manufacturing
companies and to encourage continuous and services industries.
improvement in products and services rendered. ❖ Recognise companies with business plans
to increase value-added products
❖ Underwent series of evolution: or services.
▪ 2012 – Rebranding the concept, categories, ❖ Recognise companies with best
evaluation & assessment procedures & incentives.
Started in 2014 with a new image.
practices that render them as inspiring
role models to other companies.
▪ 2016 – Introducing Open Category for Multinational
Companies (from both manufacturing
and services sectors). All winners from all
categories could win the exclusive PM Award.

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9.3.2 AKI’s Framework for 9.3.3 AKI’s Evaluation Process

Business Excellence (BE) - Criteria

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9.3.4 AKI’s Prize for Winners

❖ Cash prize of RM500,000 for the winner of the Prime
Minister's Award.
END OF TOPIC 9
❖ A trophy and certificate.
❖ Publicity for winners:
▪ Eligible to use the AKI logo for publicity purposes for 3
years from the date of receiving the award;
▪ Included in publicity programmes for AKI;
▪ Featured in MATRADE's publication (MATRADE website and
Online News) and given space to advertise company
products/services in MATRADE's export directory;
▪ Company details published in AKI Winner's Book for
distribution to all MITI and its Agencies as a promotional
material; and
▪ Publicity in MITI and Agencies websites.

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