Quality and Operations Management

1
Quality and OperationsManagement

• MSE269
• 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
Award Categories

• 1994
• Manufacturing
• Service
• Small Business
• 2 winners per category

• 2001
• Business
• Service
• Small Business
• Education
• Health Care
• 3 winners per category

4
MBNQA Winners

• 1988Motorola Inc., Commercial Nuclear Fuel
  Division of Westinghouse Electric Corp., and
  Globe Metallurgical Inc.
• 1990Cadillac Motor Car Division, IBM Rochester,
  Federal Express Corp., and Wallace Co. Inc.
• 1992ATT Network Systems Group/ Transmission
  Systems Business Unit, Texas Instruments Inc.
  Defense Systems Electronics Group, ATT
  Universal Card Services, The Ritz-Carlton Hotel
  Co., and Granite Rock Co.
• 1994ATT Consumer Communications Services, GTE
  Directories Corp., and Wainwright Industries
  Inc.
• 1996ADAC Laboratories, Dana Commercial Credit
  Corp., Custom Research Inc., and Trident
  Precision Manufacturing Inc.
• 1998Boeing Airlift and Tanker Programs, Solar
  Turbines Inc., and Texas Nameplate Co., Inc.
• 2000Dana Corp.-Spicer Driveshaft Division,
  KARLEE Company, Inc., Operations Management
  International, Inc., and Los Alamos National Bank

• 1989Milliken Co. and Xerox Corp. Business
  Products and Systems
• 1991Solectron Corp., Zytec Corp., and Marlow
  Industries
• 1993Eastman Chemical Co. and Ames Rubber Corp
• 1995Armstrong World Industries Building Products
  Operation and Corning Telecommunications
  Products Division
• 19973M Dental Products Division, Solectron
  Corp., Merrill Lynch Credit Corp., and Xerox
  Business Services
• 1999STMicroelectronics, Inc.-Region Americas,
  BI, The Ritz-Carlton Hotel Co., L.L.C., and Sunny
  Fresh Foods

Service
Manufacturing
Small Business
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Changing Award Criteria

• 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

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Changing Award Criteria

• 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

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Criteria Characteristics

• Results oriented
• Non-prescriptive
• Assessment
• Diagnostic

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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/benchma
  rks
• rate and breadth of performance improvements
• demonstration of sustained improvement

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Four Stage Review Process
10
Leadership

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

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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

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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

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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

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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