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Quality and Operations Management
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  1. Quality and OperationsManagement MS&E269 Malcolm Baldrige National Quality Award

  2. 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

  3. 1994 Manufacturing Service Small Business 2 winners per category 2001 Business Service Small Business Education Health Care 3 winners per category Award Categories

  4. 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 Service Manufacturing Small Business

  5. 1991 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 1994 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

  6. 1995 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 2001 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

  7. Criteria Characteristics • Results oriented • Non-prescriptive • Assessment • Diagnostic

  8. 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

  9. Four Stage Review Process

  10. Leadership • 1.1 Senior Executive Leadership • 1.2 Management for Quality • 1.3 Public Responsibility and Corporate Citizenship

  11. Leadership • Values and Expectations • Empowerment and Innovation • Performance Reviews • Findings and Improvement • Regulatory, Legal, Ethical Responsibilities • Support of Key Communities

  12. 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

  13. 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

  14. Strategic Quality Planning • 3.1 Strategy Quality and Company Performance Planning Process • 3.2 Quality and Performance Plans

  15. Strategic Quality Planning • Strategy Development • Strategy Objectives and Timelines • Actions Plans and Measures • Human Resource Plans • Performance Projections

  16. 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

  17. 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

  18. 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

  19. Management of Process Quality • Design Processes • Production and Delivery Processes • Key Supplier Products and Services • Key Support Processes • Requirements and Measures • Evaluation and Improvement

  20. 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

  21. Quality and Operational Results • Customer Evaluations • Operational, Financial and Market Performance • Strategy-driven Results

  22. 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

  23. 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

  24. Leadership • 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

  25. 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

  26. 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

  27. 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?

  28. 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

  29. 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?

  30. 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