Beruflich Dokumente
Kultur Dokumente
Table of contents
1.
2.
3.
4.
5.
6.
7.
8.
Abstract.
Overview of Malcolm Baldrige National Quality Award.
Introduction of 2012 Malcolm Baldrige Award recipients.
Study of efforts of Lockheed Martin Missiles and Fire Control, Grand Prairie, TX.
4.1 Introduction
4.2 Leadership
4.3 Strategic planning
4.4 Customer Focus
4.5 Measurement, analysis and knowledge management
4.6 Workforce focus
4.7 Operations focus
4.8 Business results and conclusion
Study the efforts of MESA Products Inc., Tulsa, OK.
5.1 Introduction
5.2 Leadership
5.3 Strategic planning
5.4 Customer focus
5.5 Measurement, analysis and knowledge management
5.6 Workforce focus
5.7 Operations focus
5.8 Business results
5.9 Conclusions
Study the efforts of North Mississippi Health Services, Tupelo, MS.
6.1 Introduction
6.2 Leadership
6.3 Strategic planning
6.4 Customer focus
6.5 Measurement, analysis and knowledge management
6.6 Workforce focus
6.7 Operations focus
6.8 Business results and conclusion
Conclusions and Future work.
References.
1. Abstract
This case study focuses on quality management efforts taken by the companies: Lockheed Martin
Missiles and Fire Control, MESA Products Inc., and North Mississippi Health Services who have been
awarded the Malcolm Baldrige National Award in 2012. This is an in-depth study of improvement efforts,
overall performance management system, organizations policies and practices of quality improvements,
tools used for managing performance, organizations effectiveness and capabilities, sustainability etc.
Historically, Malcolm Baldrige award has been awarded to US organizations recognized for their efforts
in performance excellence.
Malcolm Baldrige National Quality award promotes awareness of quality and performance as key
elements in todays business environment. The companies that have received this award have been rolemodels who believe in continuous improvement in delivering products/services, demonstrating efficient
and effective operations in their specific industries. This project identifies the efforts of these companies
in realizing the criteria for the award such as leadership, strategic planning, customer and market focus,
measurement analysis and knowledge management, human resources focus, process management and
business results. This case study emphasizes their efforts to review and continuously improve quality
assurance and control programs.
A study by National Institute of Standards and Technology has shown that the recipients of
Malcolm Baldrige Award have regularly outperformed the S&P 500 companies. This study will also help
us realize the link between the quality and performance excellence programs and the financial
performance of the company.
2.
The need for performance excellence and to increase awareness of quality assurance and
recognition of the declining U.S. productivity made way for a national quality award that successfully
challenges U.S. firms to meet the needs of quality and performance excellence in todays business
environment. The Malcolm Baldrige National Quality Improvement Act was signed into law (Public
Law 100-107) on August 20, 1987 (Evans et al. 2011). This award is named after US Secretary of
Commerce, Malcolm Baldrige and it focuses on helping the American companies to improve quality
and productivity for the pride of recognition, recognizing the firms which improve the quality of their
products and services, establishing guidelines and criteria that can be used by companies for selfassessment and to provide specific guidance for companies that wish to learn how to manage quality, to
change their cultures and to achieve eminence.
Originally, three types of organizations were eligible: manufacturers, service companies and
small businesses. In 1998, the President and Congress approved legislation that made education and
health care organizations eligible to participate in the Award Program beginning in 1999. In 2006 the U.S.
government approved legislation that made nonprofit organizations (including charities, trade and
professional organizations, and government agencies) eligible to participate in the Award Program starting
in 2007 ("Baldrige Performance Excellence Program" August 04, 2013). The Award promotes excellence
in organizational performance, recognizes the achievements and results of U.S. organizations, and
publicizes successful performance strategies. The Award is not given for specific products or services. A
panel of judges consisting of experts on quality and continuous improvement oversee the Baldrige award
process.
The Malcolm Baldrige award is based on rigorous set of criteria called the Criteria for
Performance Excellence, designed to encourage companies to enhance their competitiveness through an
aligned approach to organizational performance results. The criteria consists of a set of categories, items
and areas to address. There are seven categories:
Leadership,
Strategic planning,
Customer focus,
Measurement, Analysis and knowledge management,
Workforce focus,
Operations focus and
Business Results.
The Baldrige Criteria play three roles in strengthening U.S. competitiveness: (1) they help
improve organizational performance practices, capabilities, and results, (2) they facilitate communication
and sharing of best practices among U.S. organizations, and (3) they
serve as a working tool for
understanding and managing organizational performance, for guiding a strategic plan, and for providing
opportunities to learn ("Criteria for Performance Excellence" 2013). This composite of measures ensures
that your strategies are balancedthat they do not inappropriately trade off among important
stakeholders, objectives, or short- and long-term goals.
These seven categories form an integrated management systems which addresses various
questions about the organizations system and areas of improvement which will lead to performance
excellence. These seven categories represent a logical approach to planning, executing, and reviewing
performance of an organization. These categories will be focused in depth in the following sections with
respect to the 2012 Malcolm Baldrige Award recipients.
Lockheed Martin Missiles and Fire Control, Grand Prairie, Texas (manufacturing)
Mesa Products Inc., and North Mississippi Health Services have been awarded Malcolm Baldrige
award in 2006. The 2012 Baldrige Award recipients were selected from a field of 39 applicants. All of the
applicants were evaluated rigorously by an independent board of examiners in seven areas defined by the
Baldrige Criteria for Performance Excellence: leadership; strategic planning; customer focus;
measurement, analysis and knowledge management; workforce focus; operations focus; and business
results. The evaluation process for each of the recipients included about 1,000 hours of review and an onsite visit by a team of examiners to clarify questions and verify information in the applications. The
efforts of these companies excluding the City of Irving will be discussed in the following sections with
clear emphasis on each category, items and areas that have been addressed to achieve high quality and
performance excellence.
4.2 Leadership:
From inception, the MFC leadership recognized the critical need for radical change. The
consolidation of the defense industry and the decreasing Department of Defense (DOD) budgets were
sure to increase competition. In order to achieve emphasis on performance, MFC realized need for
change at a faster pace. The fundamental Business principle for this organization is Business is not the
objectiveIt is the result. Performance is the objective.
With a pervasive executive emphasis on quality and performance, the Senior Leadership Team
(SLT) along with the Enterprise Leadership Council (ELC) developed the EES. The EES integrates over
500 processes and comprehensive metrics to provide a common foundation for operating, managing,
reviewing, analyzing, evaluating and improving almost every aspect of our business ("Missiles and Fire
Control. 2012 Malcolm Baldrige National Quality Award Application 2013). It enables the SLT, and
employees to measure the performance of our internal operations and those of suppliers. This common
foundation ensures consistent terminology, approach, objectives and goals that are aligned throughout the
enterprise. Senior leaders have created an unwavering dedication to teamwork and innovation, as well as
to developing talent, new markets and quality share, gaining market share with the highest quality
contracts in terms of innovation, dollars, time and importance to our customers. Each year, as a part of the
Strategic Planning and Execution System, the SLT and other members of the planning team exhaustively
evaluate the current business environment. They keep re-examining the vision, mission, and values
(VMV) to remain agile. Human Capital framework system along with communication systems are
embedded in the leadership category of the organization to deploy VMV along the organization.
team which guides them. MFC deploys and reinforces VMV through executive discussions and feedback
sessions. The senior leaders actions consistently reflect values and follow Do Whats Right, Respect
Others and Perform with Excellence. The company promotes ethical behavior by the president
personally completing the annual ethics training followed by senior leaders and the employees. A
quarterly ethics council and the Disciplinary Review Board oversee the training process. MFC has zero
tolerance policy for unethical and illegal behavior.
MFC uses an integrated communication system to engage work force which use digital, print,
interactive, and face to face techniques which are deployed throughout the company. By the use of
newsletter, surveys, and focus groups, MFC maintains the effectiveness of communication. The
organizational governance system ensures ethical business practices and accountability. They use three
day kaizen events to improve activities by workforce and ensures accountability on them. The governance
system also focuses on accountability for management actions, fiscal accountability, transparency in
operations, independence in internal and external audits, and protection of stakeholder and shareholder
interest. Through their Green Initiative they show their societal responsibility and their community
support by participating in many welfare organizations
4.3: Strategic planning:
MFC created and continuously refines a structured and dynamic Strategic planning and execution
system that is deployed throughout the organization. In this system, the business data is gathered,
analyzed and combined through Lines of Business and a lot of what if scenarios are created to make an
effective decision in strategic planning. This system has three strategic tenets such as: growth,
sustainment, and profitability which help in filtering all processes and decisions are and creating internal
operating plans which focuses on adjusting all system metrics. The strategic planning process along with
the work systems and work processes plan and execute long term and short tern initiatives. MFC has a
well-defined strategic process that ensures seamless operation and excellent performance across the
enterprise which includes the following steps:
Prepare company strategic plan that focuses on three areas: Perform Situational Assessment,
Develop Business Strategy, and Create the Strategic Plan.
Develop long-range plan which is three year based with 10-year orders forecast and ensures
growth, sustainability, and profitability.
Plan and Allocate New Business Acquisition Expense (NBAE) Capital, they determine how much
to allocate, as a percent of sales, to acquiring new business.
Capture the business which is integrated in planning and execution phases.
MFC proactively takes measures to ensure effective strategies throughout the enterprise including
reaching out to new markets to ensure success of the organization.
They also use these methods to listen to the potential customers, determining customer
engagement and satisfaction, dissatisfaction and relativity with respect to potential competitors. They use
New business capture process to make the customers aware of new product offerings, to reach out for
ideas, to provide efficient customer support which provides technical expertise and meets 95% of
customers request within one day. They also use this data for customer segmentation and complaint
management. They care for the customers with an unparalleled support and respect for them. They build
relationships with customers with core values such as: Do Whats Right, Respect Others, Perform with
Excellence, Retain customers, meet their requirements and exceed their expectations and engage
the customers with care which sets them apart from the rest.
cycle. The company also focuses on a seven step supply chain management system to deliver high
supplier performance to improve quality and performance excellence of suppliers along with them. MFC
uses an LM21 path to excellence integrated with VSM to lead a path to excellence which is fully
deployed through the enterprise and frequently re-evaluated.
award, William J. Perry Award, Eisenhower Award for Excellence in Small Business Utilization,
Customer research and development award and it continues to exceed the expectations of customers and
stakeholders while having high customer satisfaction & engagement, employee engagement and high
profits. Although the defense industry market is contracting, MFC is both increasing market share and
increasing the share at a faster rate than the primary competitor.
basic improvement method. (Daniels) The Plan is encompassed through the SPP; the Do is
accomplished in work processes and work systems; Check uses the Knowledge Management system to
determine the gaps of the organization; Act is done with the improvement systems and is applied to the
work systems and processes. Figure 5.7 gives a general process map of how the PDCA process is used in
the company business model. (MESA Products) MESA has three employees that are certified as being
LEAN Implementers. By having a lean system, MESA is able to stay current with business needs by
the flexibility that it provides. (MESA Products) These concepts stretch across departments to allow for
cooperative methods and processes.
7) Conclusions
With efforts put into all the criteria for performance excellence and having a goal of continuous
improvement for achieving high quality and performance excellence, Malcolm Baldrige award recipients
have historically outperformed the S&P 500 index. Figure 7.1 demonstrates how a $1000 investment in
Lockheed Martin Missiles and Fire control in January 2001 would have yielded a return of over $4000
today as compared to a return of just $1300 for S & P 500 index.
Figure 7.1: Investment return of Lockheed Martin MFC in comparison with S&P 500 index
Since MESA Products Inc., and North Mississippi health services are not publicly traded
companies, they are not obligated to publish their quarterly and annual financial statements. So an
investment in those companies could not be compared to the market index.
The Baldrige Performance Excellence Program has eliminated a former limit on the number of
subunits of an organization that may apply within the same year. In previous competitions, this limit was
based on the size of the parent organizations workforce. The lifting of this restriction enables multiple
subunits to apply for the award in the same year if the parent organization is not applying and neither the
organization nor the subunit has received the Baldrige Award within the past five years. Our future work
would involve studying how the lifting of this restriction would affect the Baldrige awarding process.
8) References
1. Evans, James R, and William M Lindsay. Managing for Quality and Performance Excellence.
Independence, KY: South-Western Cengage Learning, 2011.
2. National Institute of Standards and Technology, "Baldrige Performance Excellence Program."
Last modified August 04, 2013. Accessed December 2, 2013.
http://www.nist.gov/baldrige/community/foundation.cfm.
3. "Criteria for Performance Excellence." Baldrige Performance Excellence Program, January
2013. http://www.nist.gov/baldrige/publications/criteria.cfm (accessed December 2, 2013).
4. Lockheed Martin Missiles and Fire Control, "Missiles and Fire Control. 2012 Malcolm Baldrige
National Quality Award Application." Last modified 2013. Accessed December 2, 2013.
http://www.baldrige.nist.gov/PDF_files/2012_Lockheed_Martin_MFC_Application_Summary.pd
f.
5. Newman, Michael E. Baldrige Performance Excellence Program, Four U.S. Organizations
Honored with the 2012 Baldrige National Quality Award." Last modified November 14, 2012.
Accessed December 2, 2013. http://www.nist.gov/baldrige/baldrige_recipients2012.cfm.
6. Baldrige Performance Excellence Program, "Malcolm Baldrige National Quality Award 2012
Award Recipient, Manufacturing Category." Last modified May 28, 2013. Accessed December 2,
2013. http://www.nist.gov/baldrige/award_recipients/lockheed-martin.cfm.
7. Baldrige Performance Excellence Program, "Malcolm Baldrige National Quality Award 2012
Award Recipient, Health Care Category." Last modified May 28, 2013. Accessed December 2,
2013. http://www.nist.gov/baldrige/award_recipients/no-ms-health-services_profile.cfm
8. NMHS 2012 Baldrige Application, "North Mississippi Health Care Services. 2012 Malcolm
Baldrige National Quality Award Application." Last modified 2013. Accessed December 2, 2013.
http://www.nmhs.net/documents/nmhsbaldrigeapplication32113.pdf
9. North Mississippi Medical Center. Malcolm Baldrige National Quality Award. Accessed
December 2, 2013. http://www.nmhs.net/Baldrige2012.php
10. Link, Albert N., and John T. Scott. National Institute of Standards and Technology, "Economic
Evaluation of the Baldrige Performance Excellence Program." Last modified 2011. Accessed
December 2, 2013.
11. Daniels, Susan E. "From One-Man show to Baldrige Recipient." Quality Progress. no. 7 (2007).
Accessed December 2, 2013.
12. "TAB Affiliated Mesa Products Wins 2012 Malcolm Baldrige National Quality
Award." Manufacturing Close-Up. (2012). Accessed December 2, 2013.
13. National Institute of Standards and Technology, "Malcolm Baldrige National Quality Award 2012
Award Recipient, Small Business Category." Last modified 2012. Accessed December 2, 2013.
14.MESA Products Inc., "MESA Products Inc. 2012 Malcolm Baldrige National Quality Award
Application." Last modified 2013. Accessed December 2, 2013.