Baldridge criteria and Boeing:

In the month of November 2004, Boeing decided to adopt Baldridge criteria for business excellence. As in the

same year, Boeing was awarded two times by the Baldridge award that is the highest honor award in the US

industry that is awarded for the top-quality education, manufacturing, service, and health organization for

showing performance excellence. Baldrige award as developed by congress in the year 1987 to recognize U.S.

companies for their achievements in quality and business performance[ CITATION Boe041 \l 1033 ].

Following are  Baldrige performance excellence criteria that any company must fulfill to get this award:

1. Leadership:

In these criteria, leadership qualities and characteristics in the organization are evaluated. It involves the

way these organizations address their public responsibilities.

2. Customer focus:

It involves the way through which the company determines the customer expectation and build customer

relationships.

3. Strategic planning:

It includes an evaluation of strategic planning strategies and procedures.

4. Knowledge management:

In this criterion, knowledge management analysis is done for the organization.

5. Workforce focus:

It involves the evaluation of how the organization enables its workforce to utilize its full potential.

6. Process management:

These criteria involve the evaluation of process management practices.

7. Results:

Examines the organization’s performance and improvement in its key business areas.

Boeing Baldridge award-winning model [ CITATION Boe04 \l 1033 ]:

Leadership: "The start of a successful business."

Strategic Planning: "The glue that holds the enterprise together."

Customer and Market Focus: "Without customers, there is no business."

Measurement, Analysis, and Knowledge Management: "Without measuring what we do, we won't know

how to improve."

Human Resource Focus: "All people are important to the business, and they must be empowered."

Process Management: "The process by which we ensure quality products to our customers."

Business Results: "Without them, you can't be world-class."

Boeing understands and fulfills all these seven criteria’s to get this quality award from US government as to

when Boeing won the first award then the presenter of the award said that “We have the lowest unemployment

rate since 1957 when Boeing introduced the 707," he said, adding, "the changes in business are what has

brought America back.”

Business result analysis:

It is the last step of this Baldridge criteria; business results are examined thoroughly before giving this award to

the nay company. Boeing 737 max is one of the most recent innovative models of aircraft added in the Boeing

product line. Boeing has manufactured this aircraft with great quality and has passed through several

certifications. With the manufacturing and review of this state-of-the-art Boeing 737 max aircraft, Boeing gets a

great impact on its business results as compared to its competitors.

This quality control procedure plays an important role in maintaining profitability and helps the company to get

through tough crisis times. Boeing was confident about the quality of these aircraft but due to some crashes of

newly manufactured aircraft. The company decided to reduce production by 2 percent. While in recent years,
Boeing’s 737 model contributes 33% to the group’s revenue and almost 50% to its profit. With a backlog of

about 5000 aircraft[ CITATION For19 \l 1033 ].

For this model of Boeing 737 max, the company is more dedicated toward progressive testing and getting

quality certificates After this crash as CEO Muhlenberg said that “Boeing's test pilots had completed more than

700 flights with the MAX. As of October 28, Boeing had conducted "over 800 test and production flights with

the updated MCAS software, totaling more than 1,500 hours”[ CITATION USA19 \l 1033 ]. This testing

activities and certification activities were not for testing for a limited time but is an ongoing process. These all

activities are part of a quality control program and played an important role in having competitive business

results include both financial and non-financial prospects.

Boeing 737 max crash impact on company financials:

Boeing 737 max faces crashing accident two times in recent year one is in October 2018 in Indonesia and in

March 2019 in Ethiopia. Total of 346 people died in these two incidents. These incidents and crisis led Boeing

to place behind other air jet providers like AIRBUSS. After these crashes, management of the company decided

to ground these specific aircrafts around the world. This grounding of air crafts cost them around $19 bn dollars

and company faces first quarter loss after two decades.

The company suspended its new deliveries of the plane in the wake of the biggest crisis in its 103-year history.

Over the whole of 2019, Boeing lost $636m. Boeing set aside a further $9.2bn to cover the costs of airlines that

have cancelled thousands of Max flights and towards higher costs related to compensation – doubling its

estimate of the total financial hit from the crisis to $18.6bn[ CITATION The20 \l 1033 ].
References

Boeing.com. (2004). IDS adopts criteria of esteemed quality honor. Retrieved April 27, 2020, from
https://www.boeing.com/news/frontiers/archive/2005/february/i_ids6.html
Boeing.com. (2004). Why Boeing? Why not? . Retrieved April 27, 2020, from
http://www.boeing.com/news/frontiers/archive/2004/april/i_ids2.html
Forbes. (2019). Boeing Has Cut Its 737 Max Production Line By 20%. Retrieved April 27, 2020, from
https://www.forbes.com/sites/greatspeculations/2019/04/08/boeing-has-cut-its-737-max-production-line-
by-20-what-will-this-mean-for-revenue-and-the-stock/#6ce3156547df
The guardian.com. (2020, April 28). boeing puts cost of 737 max crashes at- 9bnboeing-puts-cost-of-737.
Retrieved from The Guardian: https://www.theguardian.com/business/2020/jan/29/boeing-puts-cost-of-
737-max-crashes-at-19bn-as-it-slumps-to-annual-loss
USA Today. (2019). Boeing CEO: We are taking actions to enhance the safety of the 737 Max. Retrieved April
27, 2020, from https://www.usatoday.com/story/opinion/2019/10/28/boeing-ceo-taking-actions-
enhance-safety-737-max-editorials-debates/2490895001/