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Quality and Operations Management. MS&E269 Malcolm Baldrige National Quality Award. Core Values. Customer-driven Quality Leadership Continuous Improvement and Learning Employee Participation and Development Fast Response Design Quality and Prevention Long-range View of the Future

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Quality and Operations Management

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Quality and OperationsManagement


Malcolm Baldrige

National Quality Award

Core Values

  • Customer-driven Quality

  • Leadership

  • Continuous Improvement and Learning

  • Employee Participation and Development

  • Fast Response

  • Design Quality and Prevention

  • Long-range View of the Future

  • Management by Fact

  • Partnership Development

  • Corporate Responsibility and Citizenship

  • Results Orientation




Small Business

2 winners per category




Small Business


Health Care

3 winners per category

Award Categories

1988—Motorola Inc., Commercial Nuclear Fuel Division of Westinghouse Electric Corp., and Globe Metallurgical Inc.

1990—Cadillac Motor Car Division, IBM Rochester, Federal Express Corp., and Wallace Co. Inc.

1992—AT&T Network Systems Group/ Transmission Systems Business Unit, Texas Instruments Inc. Defense Systems & Electronics Group, AT&T Universal Card Services, The Ritz-Carlton Hotel Co., and Granite Rock Co.

1994—AT&T Consumer Communications Services, GTE Directories Corp., and Wainwright Industries Inc.

1996—ADAC Laboratories, Dana Commercial Credit Corp., Custom Research Inc., and Trident Precision Manufacturing Inc.

1998—Boeing Airlift and Tanker Programs, Solar Turbines Inc., and Texas Nameplate Co., Inc.

2000—Dana Corp.-Spicer Driveshaft Division, KARLEE Company, Inc., Operations Management International, Inc., and Los Alamos National Bank

1989—Milliken & Co. and Xerox Corp. Business Products and Systems

1991—Solectron Corp., Zytec Corp., and Marlow Industries

1993—Eastman Chemical Co. and Ames Rubber Corp

1995—Armstrong World Industries Building Products Operation and Corning Telecommunications Products Division

1997—3M Dental Products Division, Solectron Corp., Merrill Lynch Credit Corp., and Xerox Business Services

1999—STMicroelectronics, Inc.-Region Americas, BI, The Ritz-Carlton Hotel Co., L.L.C., and Sunny Fresh Foods

MBNQA Winners



Small Business


Leadership, 100

Information and Analysis, 70

Strategic Quality Planning, 60

Human Resource Util., 150

Quality Assurance of Products/Services, 140

Quality Results, 180

Customer Satisfaction, 300


Leadership, 95

Information and Analysis, 75

Strategic Quality Planning, 60

Human Resource Devel., 150

Management of Process Quality, 140

Quality and Operational Results, 180

Customer Focus/Satis., 300

Changing Award Criteria


Leadership, 90

Information and Analysis, 75

Strategic Planning, 55

Human Resource Devel. and Management , 140

Process Management, 140

Business Results, 250

Customer Focus/Satisfaction, 250


Leadership, 120

Information and Analysis, 90

Strategic Planning, 85

Human Resource Focus, 85

Process Management, 85

Business Results, 450

Customer and Market Focus, 85

Changing Award Criteria

Criteria Characteristics

  • Results oriented

  • Non-prescriptive

  • Assessment

  • Diagnostic

A-D and R

  • Approach

    • how the application addresses the item

    • appropriateness

    • effectiveness

    • evidence of innovation

  • Deployment

    • extent to which approach is applied

    • use of approach in business requirements

    • use of approach by all appropriate units

  • Results

    • outcomes

    • current performance levels

    • performance levels relative to comparisons/benchmarks

    • rate and breadth of performance improvements

    • demonstration of sustained improvement

Four Stage

Review Process


  • 1.1 Senior Executive Leadership

  • 1.2 Management for Quality

  • 1.3 Public Responsibility and Corporate Citizenship


  • Values and Expectations

  • Empowerment and Innovation

  • Performance Reviews

  • Findings and Improvement

  • Regulatory, Legal, Ethical Responsibilities

  • Support of Key Communities

Information and Analysis

  • 2.1 Scope and Management of Quality and Performance Data and Information

  • 2.2 Competitive Comparisons and Benchmarking

  • 2.3 Analysis and Use of Company-level Data

Information and Analysis

  • Selection and Integration of Measures / Indicators

  • Comparative Data and Information

  • Reliability

  • Currency w.r.t. Changing Needs

  • Senior Executive Reviews and Planning

  • Functional-level Decisions

  • Daily Operational Support

Strategic Quality Planning

  • 3.1 Strategy Quality and Company Performance Planning Process

  • 3.2 Quality and Performance Plans

Strategic Quality Planning

  • Strategy Development

  • Strategy Objectives and Timelines

  • Actions Plans and Measures

  • Human Resource Plans

  • Performance Projections

Human ResourceDevelopment and Management

  • 4.1 Human Resource Planning and Management

  • 4.2 Employee Involvement

  • 4.3 Employee Education and Training

  • 4.4 Employee Performance and Recognition

  • 4.5 Employee Well-being and Satisfaction

Human ResourceDevelopment and Management

  • Short and Long Term Key Needs

  • Employee Education, Training and Development

  • Delivery and Reinforcement

  • Safe Work Environment

  • Support and Motivation

  • Satisfaction Determination

  • Improvement Priorities

Management of Process Quality

  • 5.1 Design and Introduction of Quality Products and Services

  • 5.2 Process Management: Product and Service Production and Delivery Processes

  • 5.3 Process Management: Business and Support Service Processes

  • 5.4 Supplier Quality

  • 5.5 Quality Assessment

Management of Process Quality

  • Design Processes

  • Production and Delivery Processes

  • Key Supplier Products and Services

  • Key Support Processes

  • Requirements and Measures

  • Evaluation and Improvement

Quality and Operational Results

  • 6.1 Product and Service Quality Results

  • 6.2 Company Operational Results

  • 6.3 Business and Support Service Results

  • 6.4 Supplier Quality Results

Quality and Operational Results

  • Customer Evaluations

  • Operational, Financial and Market Performance

  • Strategy-driven Results

Customer Focus and Satisfaction

  • 7.1 Customer Expectations: Current and Future

  • 7.2 Customer Relationship Management

  • 7.3 Commitment to Customers

  • 7.4 Customer Satisfaction Determination

  • 7.5 Customer Satisfaction Results

  • 7.6 Customer Satisfaction Comparison

Customer Focus and Satisfaction

  • Customer Groups and Market Segments

  • Listening and Learning Strategies

  • Important Product and Service Features

  • Business Needs and Directions Currency

  • Accessibility and Complaint Management

  • Building Relationships

  • Competitive Performance


  • Symbolism

    • is it talk or walk

    • what is the visible role for management

  • Systems

  • Results

    • hard to measure

  • Issues

    • is there to much going on at one time

    • increase weight of category

Information and Analysis

  • Key purposes

    • Use of Info Sys to achieve quality goals

    • Reporting/feedback to support quality

    • Competitive Analysis/Benchmarks

  • Approach and deployment orientation

  • Key is the choice of indicators to track and relationship to critical business drivers

  • Applicant can improve scores simply through wordsmanship, clarity of submission

  • During site visit easier to observe actuals than statements on application

Strategic Quality Planning

  • Category design intent: aggressive, concrete goals,

    • short term / long term

    • horizontal and vertical integration

  • Expect to see documented fundamentals

  • Demonstrated understanding of industry

  • On-site review best at determining validity of submission

  • Shortcoming: deployment to suppliers

  • Long-term planning not concrete wrt to rollout and method

  • Components are satisfactory, burden on Great Northern

  • Need more emphasis on long-term success and results

  • Human Resource Development

    • Does the documentation match / support the results

      • too much on deployment, not enough on results

      • “50 ways to please a …”

    • What about near-term programs?

    • Timeline on result goals not clear

    • Overly focused on individuals vs. teams

    • Results and categories are ambiguous

    • Warm fuzzies or real processes?

      • Wish upon a star

      • Needs and feelings survey

    • How can tangible evidence be demonstrated?

    Management of Process Quality

    • Rationale: is process preventive or reactive

    • Design of service/product offerings

    • Monitoring matrix

    • Pushed down to each department

    • Use of analysis tools -- business process mapping

    • Processes in place

      • BLERA

      • QSEG

      • BLI

    • Use of mainstream process management methods

    • Recommendations, timelines, champions identified

      • weak on follow-up

    Quality and Operational Analysis

    • System represents linking performance results to quality progress

    • Repetition in indicators

    • Overall completeness lacking

      • weakness on benchmarking

    • Can metrics be compared across industries?

    Customer Focus and Satisfaction

    • Relative balance in 1994 between AD & R

    • Looking for commitment, proactive behaviors

    • Are results comprehensive wrt all numbers and metrics?

    • Who determines what the correct response level is vs. customer expectations and comparisons to industry

    • Focus is based on own customers, hence how do you apply and compare benchmark data with different populations

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