SEMINAR

ON
MALCOLM BALDRIGE

Presented by:
Abhay Kumar
Tirthadeep Roy
Masoom Akram
B.Tech (IT), 7th Sem.
SOT, AUS
Contents:
 Overview of Quality.
 Quality Systems
 ISO 9000/SCI CMM/Malcolm Baldrige
 Malcolm Baldrige
◦ Malcolm Baldrige- The Person
◦ Malcolm Baldrige National Qualtiy Award
 Quality Criteria.
 Application Process.
 Award Process Cycle.
 Impact of the Program.
 Comparison between ISO 9000,Malcolm
Baldrige,SEI CMM.
 Summary.
Quality
Traditionally, quality of a product is defined
in terms of its fitness of purpose.
It is not acceptable to deliver poor quality
products.
products

Define Process Develop Product Access Product Quality

No Quality Yes Standardize

Improve Process OK Process
Quality System



A quality management system

(quality system) is the principal
methodology used by
organizations to ensure that the
products they develop have the
desired quality.

Quality System (ISO
9000)
International Standards
Organization (ISO) is a
consortium of 63 countries
established to formulate and
foster standardization.
ISO published its 9000 series of
standards in 1987.
The ISO 9000 standards specify
the guidelines for maintaining a
quality system.
Quality System (ISO 9000)
Contd.
The ISO 9000 series of standards
are based on the premise that if
a proper process is followed for
production, then good quality
products are bound to follow
automatically.
ISO 9000 is a generic
standard that is applicable
to a large gamut of
industries, starting from a
steel manufacturing industry
Quality System (SEI
CMM)
SEI Capability Maturity Model (SEI
CMM) was proposed by Software
Engineering Institute of the
Carnegie Mellon University, USA.
CMM is a reference model for
appraising the software process
maturity into different levels.
SEI CMM can be used two ways-
capability evaluation and
software process assessment.
Who/What is Malcolm
Baldrige?

Question:
◦ Is he a person?
◦ Is it a national quality award?
◦ Is it a set of quality criteria?


Answer:
◦ All of these.
Malcolm Baldrige : The
Person
 Former United States Secretary of Commerce.
 Served from 1981 until death in 1987 (rodeo
accident).
 Widely respected throughout government for
managerial excellence.
 Informal “spokesperson” for efficiency,
effectiveness and quality in government
services/programs.
 A national quality award was established in his
honor after his death.
 Award is called Malcolm Baldrige National Quality
Award(MBNQA).

 Reasons for the
Establishment of MBNQA
Government officials saw that
quality improvement was no
longer an option for American
business, but a necessity.

Many businesses did not think
quality was an important issue.

Others knew that it was
important, but did not know
Contd.
 Interesting Tidbit . . . . .
The process itself is considered valuable and ex



Each year, hundreds of
organizations request applications
for the MBNQA, but only a small
proportion of the applications are
actually submitted
How the Award is helpful
to an Organization?
 The criteria for winning the award are
very demanding.

 Trying to align a company to them is
highly beneficial.

 It can be used as a motivational tool for
workers to rally behind a common goal.

 Simply by competing for the award an
organization sees the importance of
quality in their business.
Malcolm Baldrige National
Quality Award
 The Malcolm Baldrige National Quality
Award (MBNQA) was established by Public
Law 100-107 (8/20/87).


 Created Award program to
– Identify/recognize role model businesses.
– Establish criteria for evaluating improvement
efforts.
– Disseminate/share best practices.


Contd.
Operates as a public-private
partnership.
Manages the Malcolm Baldrige
National Quality Award.
Provides global leadership in
promoting performance
excellence.
publish information.
What is Performance
Excellence?
 An integrated approach to
organizational performance
management that results in
● delivery of ever-improving value to
customers, contributing to
marketplace success.
●

● improvement of overall
organizational effectiveness and
capabilities.
Journey to Performance
Excellence
Purpose Of MBNQA
◦

◦ To help stimulate American organizations to

improve quality and productivity;

◦
Organizations involved in
award administration
 National Institute of Standards & Technology
(NIST)
 Department of Commerce has responsibility for Award program
 NIST is part of its “Technology Administration”
 NIST Mission: To aid U.S. industry through research & services

 American Society for Quality (ASQ)

◦ Assists NIST in administration (under contract)
◦ ASQ identifies, communicates & promotes the use of
quality principles, concepts & technologies
 Board of Overseers
◦ Advisory Board on the Award to the Department of
Commerce
 Board of Examiners
◦ Evaluates applications & provides feedback
◦ Makes recommendations
Why the MBNQA is
important to any
organization ? than other quality
◦ More comprehensive
awards.
◦ Consistent with theories of recognized
quality experts.
◦ Criteria are universal.
◦ The criteria focus on business results.
◦ The criteria support a systems approach
to organizations.
◦ The criteria support goal-based
diagnosis.
◦ VALIDITY- positive correlation between
Baldrige winners and stock
market success.
Who can apply for this
award?
Manufacturing

Service

Small business (manufacturing or
service)

Education

Health care
The Quality Criteria
 The Baldrige performance excellence
criteria are a framework that any
organization can use to improve
overall performance.


 Seven categories make up the award

criteria
◦ Leadership
◦ Strategic Planning
◦ Customer and Market Focus
◦ Measurement, Analysis, and Knowledge
Management
◦ Workforce and Human Resource Focus
Contd.
Basic goals of Criteria
◦ education and organizational self-
assessment and self-improvement.
◦
◦ also the basis for giving Baldrige
Awards.
◦
◦ giving feedback to Baldrige Award
applicants.


◦ Improvement of overall organizational

effectiveness and capabilities.
Baldrige Criteria for Performance
Excellence Framework
Contd..
Fromtop to bottom, the
framework has the following
basic elements.
◦ Organizational Profile
◦
◦ System Operations
◦
◦ System Foundation
◦
◦ Criteria Structure
Structur

Contd..
Organization Profile
◦ Provides an overview of the
organization.
◦ Organization description.
Addresses the key characteristics and
relationships that shape the
organizational environment.
Also addresses organizational
governance system.
◦
◦ Organizational situation.
Addresses the competitive
environment in which the organization
Contd..
 System Operations
◦ These are the six baldrige categories in
center and the results which is obtained.
◦
◦ Leadership (category 1), Strategic
planning(category 2), Customer focus
(category 3) represents the leadership
triad.
◦
◦ Workforce focus (category 5), Process
Management (category 6) and results
(category 7) represents the result triads.
◦
◦ The horizontal arrow in the center links the
Contd..
System Foundation
◦
◦ Includes Measurement, Analysis and
knowledge Management (category
4).
◦
◦ It serves as a foundation of
performance management system.
Contd..
Criteria Structure
◦ The seven Criteria Categories shown
in the figure are subdivided into
Items and Areas to Address.
◦
◦ Items.
There are 18 items, each focusing on a
major requirement.
◦ Areas to address.
Items consists of one or more areas to
address.
Contd.
Leadership (120 pts.)
◦
◦ Examines how senior executives guide
the organization.

Senior Leadership (70 pts.)
 How do senior leaders lead?

Governance & Societal
responsibilities (50 pts.)
How leaders govern and fulfill their societal
responsibility ?


◦
Contd..
Strategic Planning (85 pts.)
◦ Examines how the organization sets
strategic directions.
◦ how it determines key action plans.

Strategy Development (40 pts.)
How organization strategies are
developed?

Strategy Deployment (45 pts.)
How do the strategies are deployed?

◦
Contd.
Customer and Market Focus (85
pts.)
◦ Examines how the organization
determines requirements and
expectations of customers and
markets.
◦ builds long-term relationships with
customers.
Customer Engagement(40 pts.)
How the organization engages its customers to
serve their needs and build relationships?

Voice of Customer (45 pts.)
Contd..
Measurement, analysis, and
knowledge management (90
pts.)
◦
◦ Examines the management and
effectiveness of the use of data and
information.
Measurement, Analysis and
Improvement of organizational
performance (45 pts.)
How it measures and analyses the information
and then improves the performance?

Contd.
Human resource focus (85 pts.)
◦ Examines how the organization
enables its workforce to develop
its full potential.
◦ how the workforce is aligned with
the organization’s objectives.
Workforce Engagement (45 pts.)
How workforce is engaged to achieve
organizational and personal success?
Workforce Environment (40 pts.)
H o w a n e ffe ctive a n d su p p o rtive
w o rkfo rce is b u ilt?

Contd.
Process Management (85 pts.)
◦ Examines aspects of how key
production/delivery and support
processes are designed, managed,
and improved.
Work System (35 pts.)
How organization designs it work system?
Work Process (50 pts.)
How to design, manage and improve the key
organizational work process?
◦
◦

Contd..
 Business Results (450 pts.)
 examines the organization’s performance.
 Product Outcomes (100 pts.)
 What are product performance results?
 Customer-Focused Outcomes (70 pts.)
 What are customer-focused performance results?
 Financial and Market Outcomes (70 pts.)
 What are financial and market place performance
results?
 Workforce-Focused Outcomes (70 pts.)
 What are workforce-focused performance results?
 Process Effectiveness Outcomes (70 pts.)
 What are the process effective results?
 Leadership Outcomes (70 pts.)
 What are the leadership results?
 Contd.
 Category Point Values
1.Leadership 120
2.Strategic Planning 85
3.Customer and Market Focus
85
4.Measurement ,Analysis and Knowledge
Management 90
5.Human Resource Focus 85
6.Process Management 85
7.
8.Business Results 450


 Total Points 1,000

Application Process
To apply for the award,
organizations must submit details
showing their achievements and
improvements in seven key areas.

Applicants receive 300 to 1,000
hours of review .

A detailed report on the
organization’s strengths and
opportunities for improvement by
How are recipients
selected?
55% of evaluation is based on how
the organization is run, 45% on the
basis of performance.

Every major part of the organization
is accessed.

Continuous improvement and
reevaluation is very important.

Award Process Cycle
Receive applications

Stage 1
Independent Review

Judge No Feedback report

s to applicant
select

Stage 2
Consensus Review

Judge No Feedback report

s to applicant
select

Stage 3
Site Visit Review

Judges review and recommend Feedback report

Award to applicant
recipients
Public-Private Partnership
The foundation for the MBNQA
raises funds to permanently
endow the program.
The NIST manages the MBNQA
Program.
The Board of Examiners
volunteers time to evaluate
applications and prepare
feedback.
Award recipients share
information with other
Recipientes of MBNQA
 2008—Cargill Corn Milling North America, Poudre Valley Health System,
and Iredell-Statesville Schools


 2007—PRO-TEC Coating Co., Mercy Health Systems, Sharp HealthCare,
City of Coral Springs, and U.S. Army Research, Development and
Engineering (ARDEC)


 2006—Premier, Inc. MESA Products Inc., and North Mississippi Medical
Center


 2005—Sunny Fresh Foods Inc., DynMcDermott Petroleum Operations,
Park Place Lexus, Jenks Public Schools, Richland College, and
Bronson Methodist Hospital


 2004—The Bama Companies, Texas Nameplate Company Inc., Kenneth
W. Monfort College of Business, and Robert Wood Johnson University
Hospital Hamilton
Contd.

 2001—Clarke American Checks Inc., Pal’s Sudden Service, Chugach
School District, Pearl River School District, and University of
Wisconsin-Stout

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

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

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


 1997—3M Dental Products Division, Solectron Corp., Merrill Lynch
Credit Corp., and Xerox Business Services
Contd.
 1994—AT&T Consumer Communications Services, GTE
Directories Corp., and Wainwright Industries Inc.


 1993—Eastman Chemical Co. and Ames Rubber Corp.


 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.

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


 Impact of the program
The Baldrige award recipients are
imitated and admired worldwide.


The Baldrige criteria for

performance excellence have
played a valuable role in helping
U.S. organizations improve.


Ithelps an organizations to improve

its performance by
◦ delivering ever improving value to
customers
Comparison between ISO
9000, Malcolm Baldrige,
CMM
Level of Abstraction
◦ CMM
 Collection of best practices for software
development and maintenance, ordered
along a maturity model.
◦ ISO 9000
A generic quality management model
with emphasis on auditing.
◦ Malcolm Baldrige
Provides the broadest model of a total
quality management system .
Less concerned with identifying a specific
details of a given process.
Contd.
Audience
◦ CMM
Specifically developed for software
development and maintenance
organizations.
◦ ISO 9000
Originally developed for
manufacturing.
But generic enough to be applied
to any product/service
organization.
◦ Malcolm Baldrige
Developed to raise the awareness
and importance of quality in the
Contd.
Approach
◦ CMM
Provides quantifiable goals
An approach for ‘what’ to do without
being prescriptive.
Assessments are conducted to
determine if a maturity level has been
attained.
◦ ISO 9000
Provides high level auditable
requirements.
Without ‘how to’ guidance to prepare
for an audit.
Organizations either pass or fail the
Contd.
Approach(contd.)
◦
◦ Malcolm Baldrige
High level holistic model for
improving the quality of entire
organiztion.

The approach is self improvement
towards top performance focusing on
seven key areas .
Contd.
Granularity (perceived view)
◦ CMM
18 key process areas
 Specific
◦ ISO 9000
20 high level requirements
General
◦ Malcolm Baldrige
7 criteria
holistic
How can a Organization
contact Baldrige program?
E-mail : npq@nist.gov

Phone : (301) 975-2036

Fax : (301) 948-3716

Web Site: www.baldrige.nist.gov

Summary
 MBNQA is a program established in1987 to raise
the awareness of quality in American business.

 Named after Malcolm Baldrige for his contributions
in showing importance of quality.

 Simply aligning to criteria of award is very
beneficial to the success of any organization.

 Seven key areas specific to winning the award.

 Prestigiousboard of examiners serve on a
volunteer basis to select the winners each year.
References:

§ Mall, Rajib, Fundamentals of Software
Engineering, PHI, New Delhi, Third
Edition, June, 2009.
§ Sommerville, Ian, Software
Engineering, Pearson Education,
Seventh Edition, 2004.
§
§ www.wikipedia.org
§
§ www.baldrige.com



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