Chapter 05 - FreeQuality

Malcolm Baldrige National Quality
Service Sector
Tylor Bantilan
• Malcolm Baldrige Award
– Characteristics and structure
• MBNQA Categories
• Brainstorming activity
– How this tool is able to benefit your company
MBNQA evaluation process
MBNQA Scoring metrics and process
MBNQA recipient summary – Ritz Carlton example
Activity – “plan, do, check, act”
Summary and readings list
Malcolm Baldrige National Quality Award:
• Malcolm Baldrige National Quality Award
– The award is open to small (less than 500 employees) and
large firms (more than 500 employees) in the following
• Manufacturing, healthcare, education, service sectors.
• The MBNQA for Performance Excellence serve two
main purposes:
– Identify companies that will serve as role models in organization
– Help organizations asses improvement efforts
Malcolm Baldrige National Quality Award:
Service Sector:
• Key Characteristics of the MBNQA
– Focus on business results
– Tools used to obtain results are non-prescriptive and
– The criteria support company-wide alignment of
goals and processes.
– Supports goal-based assessment
Baldrige Award Framework:
7 categories
Brainstorming Activity:
• Although Baldrige examiners have the knowledge and training
necessary to evaluate, you know best what is needed in your
– Thus, identify core strengths in each of the 7 categories
– Identify areas for improvement (AFI) in each category
• Perform Self analysis in each category
– Brainstorm two strengths and AFI in each category
– Weigh importance
– Brainstorm plan of action for improvements
Brainstorming Activity:
Brainstorming Activity: (Cont.)
MBNQA Categories:
• Category 1 – Leadership
Used to evaluate top management
Identify role of involvement in organization
Examines how organization fulfills responsibility as a citizen
How company supports community
• Category 2 – Strategic Planning
– Describes how organization develops and implements key strategic
– Examines what action plans exists
– Outlines company’s goals and intended plans to reach desired goals
MBNQA Categories: (Cont.)
• Category 3 – Customer Focus
Examines how organization develops customers in long-term relationship
How organization adheres to voice of customer (VOC)
Examines how company identifies customer needs
How organization innovates to fulfill desires of customer
• Category 4 – Measurement, analysis, and Knowledge of
– Identifies how organization gathers, asses, and implement data
• Includes: financial, process, operation measures, etc.
– How company manages information to continue performance
MBNQA Categories: (Cont.)
• Category 5 – Workforce Focus
– Examines how company develops and uses its employees
– Allows for employee improvement and personal growth
– Describes how organization manages workforce
• Category 6 – Operations Focus
– Describes how company manages, organizes and improves is process
– Identifies how processes deliver on customer value
– Identifies emergency systems in process
MBNQA Categories: (Cont.)
• Category 7 – Results
Describes how results are documented and used to improve organization
How results targets customer satisfaction
Summarizes how results are used efficiently
Examines how performance measures compare to competitors
Baldrige Evaluation Process:
Stage 1
Stage 2
Stage 3
Consensus Review
Site Visit Review
Independent review
Select for
Select for
Feedback to applicant
Feedback to applicant
Select for
Feedback to applicant
Baldrige Scoring: Process
Baldrige Scoring: Process (Cont.)
MBNQA: Service Award Recipient
Ritz Carlton Hotels
• In 1999 the Ritz Carlton Hotels LLC awarded for service sector
• Major factor in receiving award was the “involving of people in
the planning of work that affected them”
• Ritz Carlton is currently a five-star resort under Marriott
• Focus is on Customers desire and Customer satisfaction
• Customers at the Ritz Carlton have an overall satisfaction of 91%
MBNQA: Activity
Discuss those activities in organization which align with MBNQA criteria
• Identify approach,
development, results,
and improvements for
each category
• Create roadmap for
company excellence
• List these activities
MBNQA: Activity (Cont.)
Ritz Carlton Example
• The following is a
template used by Ritz
• More information
found at http://
• Companies in the service sector who sell or buy
services may qualify for the Malcolm Baldrige
• Criteria for the MBNQA are used to provide
feedback to organizations in improving quality
• Companies seeking to apply for the MBNQA may
apply at
Readings list:
• 2011 – 2012 Business Non-profit criteria
• - Malcolm Baldrige National
Quality Award
– service sector
• Ritz Carlton award application summary
• Managing Quality (pg. 69 – 79) – Tom Foster

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