Operations Management Term Paper

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Term paper

Of

Operations

Management

Topic - quality awards

Submitted to submitted by

Mr. Harsha subir arora


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Introduction to quality

Quality is the ability of a product or service to consistently meet or exceed

customer expectations.

Evolution of quality

Industrial revolution - smaller jobs, more specialization and lessresponsibility for the final product. Early 1900s - product inspection introduced -Fredrick Winslow Taylor. 1924 - Statistical control charts - W. Shewhart of Bell Laboratories

. 1930, - acceptance sampling - H.F. Dodge & H.G. Roming of Bell Labs

. WWII - statistical methods began to be more widely accepted,especially in statistical sampling techniques. 1950s - quality assurance, statistical quality control methods introducedto the Japanese - W. Edwards Deming- cost of quality concepts - JosephJuran- total quality control including product design and materials -

Armand Feigenbaum. 1960s - zero defects emphasize employee performance - P. Crosby. 1970s - quality assurance methods throughout the entire process.

Dimensions of quality

Performance - characteristics of the product or serviceAesthetics - appearance, feel, smell, tasteSpecial features - extra characteristicsConformance - customers expectations

Safety - risk of injury or harmReliability - consistency of performanceDurability - useful life of the product or servicePerception - reputationService after the sale - handling of complaints, customersatisfaction


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Quality awards

1)The Malcolm Baldridge Award - The Malcolm Baldrige

National Quality Award is the centerpiece of the Baldrige National QualityProgram. This award, which since 1988 has been presented annually bythe President to recognize performance excellence, focuses on anorganization's overall performance management system. It does notcertify productor service quality.

2)The Deming Prize - The Union of J apanese Scientistsand Engineers (J USE) invited Dr. Deming to Japan in July 1950. He

held aseries of lectures and seminars during which he taught the basicprinciples of statistical quality control to executives, managers andengineers of Japanese industries. His teachings made a deepimpression on the participants' minds and provided great impetus inimplementing quality control in Japan.In appreciation, JUSE created a prize to commemorate Dr. Deming'scontribution and friendship and to promote the continued developmentof quality control in Japan. The prize was established in 1950 and annualawards are still given each year.

Malcolm Baldrige National Quality Award

The Malcolm Baldrige National Quality Award is an annualaward that recognizes U.S. organizations in the business, healthcare, education, and nonprofit sectors for performance excellence.It is administered by the Baldrige National Quality Program, which

is based at and managed by the National Institute of Standards andTechnology, an agency of the U.S. Department of Commerce.

The Baldrige National Quality Program and the associated Awardwere established after President Reagan signed into law theMalcolm Baldrige National Quality Improvement Act of 1987
http://www.nist.gov/http://www.nist.gov/http://www.nist.gov/baldrigehttp://en.wikipedia.org/wiki/Ronald_Reaganhttp://en.wikipedia.org/wiki/Ronald_Reaganhttp://www.nist.gov/baldrigehttp://www.nist.gov/http://www.nist.gov/


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(Public Law 100107). The Program and Award were named forMalcolm Baldrige, who served as United States Secretary ofCommerce during the Reagan administration, from 1981 untilBaldriges 1987 death in arodeo accident.

The Award promotes awareness of performance excellence as anincreasingly important element in competitiveness and informationsharing of successful performance strategies and the benefitsderived from using these strategies.

The Baldrige Award is the only formal recognition for theperformance excellence of U.S. organizations given by thePresident of the United States. It is one of two U.S. presidentialhonors awarded to corporations, the other being the Ron BrownAward for Corporate Leadership.

To receive a Baldrige Award, an organization must have a role-model organizational management system that ensures continuousimprovement in the delivery of products and/orservices,demonstrates efficient and effective operations, andprovides a way of engaging and responding to customers and other

stakeholders. The Award is not given for specific products orservices. Up to 18 Awards may be given annually across sixeligibility categoriesmanufacturing, service, small business,education, health care, and nonprofit. As of 2008, 79 awards hadbeen made.

Early History of the Baldrige Program

In the early and mid-1980s, many U.S. industry andgovernment leaders saw that a renewed emphasis on qualitywas a necessity for doing business in an ever-expanding andmore competitive world market. But many American
http://en.wikipedia.org/wiki/Howard_M._Baldrige,_Jr.http://en.wikipedia.org/wiki/United_States_Secretary_of_Commercehttp://en.wikipedia.org/wiki/United_States_Secretary_of_Commercehttp://en.wikipedia.org/wiki/Rodeohttp://en.wikipedia.org/wiki/Rodeohttp://en.wikipedia.org/wiki/President_of_the_United_Stateshttp://en.wikipedia.org/wiki/Ron_Brown_Awardhttp://en.wikipedia.org/wiki/Ron_Brown_Awardhttp://en.wikipedia.org/wiki/Ron_Brown_Awardhttp://en.wikipedia.org/wiki/Ron_Brown_Awardhttp://en.wikipedia.org/wiki/President_of_the_United_Stateshttp://en.wikipedia.org/wiki/Rodeohttp://en.wikipedia.org/wiki/United_States_Secretary_of_Commercehttp://en.wikipedia.org/wiki/United_States_Secretary_of_Commercehttp://en.wikipedia.org/wiki/Howard_M._Baldrige,_Jr.


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businesses either did not believe quality mattered for them ordid not know where to begin.

The Malcolm Baldrige National Quality Improvement Act of1987, signed into law on August 20, 1987, was developedthrough the actions of the National Productivity AdvisoryCommittee, chaired by Jack Grayson. The nonprofit researchorganization APQC, founded by Grayson, organized the firstWhite House Conference on Productivity, spearheading thecreation of the Malcolm Baldrige National Quality Award in1987. The Baldrige Award was envisioned as a standard ofexcellence that would help U.S. organizations achieve world-

class quality. In the late summer and fall of 1987, Dr. Curt Riemann, the

first director of the Malcolm Baldrige National QualityProgram, and his staff at the National Institute of Standardsand Technology (NIST) developed an award implementationframework, including an evaluation scheme, and advancedproposals for what is now the Baldrige Award.

In its first three years, the Baldrige Award was jointlyadministered by APQC and the American Society forQuality, which continues to assist in administering the AwardProgram under contract to NIST.

Program Impacts

According toBuilding on Baldrige: American Quality for the21st Century by the private Council on Competitiveness,

More than any other program, the Baldrige Quality Awardis responsible for making quality a national priority anddisseminating best practices across the United States.

An October 2001 study of the economic impact of theBaldrige National Quality Program, prepared for NIST by
http://en.wikipedia.org/wiki/Jack_Graysonhttp://www.apqc.org/http://www.asq.org/http://www.asq.org/http://www.asq.org/http://www.asq.org/http://www.apqc.org/http://en.wikipedia.org/wiki/Jack_Grayson


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Albert N. Link and John T. Scott, conservatively estimatedthe net private benefits associated with the Program to theeconomy as a whole at $24.65 billion. When compared to thesocial costs of the Program of $119 million, BNQPs social

benefit-to-cost ratio is 207-to-1.

Leadership Excellence magazine in 2007 placed the BaldrigeProgram in the top ten best government/military leadershipprograms in the United States based on seven criteria:vision/mission, involvement/participation,accountability/measurement, content/curriculum,presenters/presentations, take-home value/results for

customers, and outreach of the programs and products. Since the Programs inception in 1987, more than 2 million

copies of the business/nonprofit, education, and health careversions of the Criteria for Performance Excellence bookletshave been distributed to individuals and organizations in theUnited States and abroad. In 2008, more than 1.75 millioncopies of the Criteria were accessed or downloaded from theBaldrige Web site.

Baldrige Award Recipients (recent)

The following organizations have received the Malcolm BaldrigeNational Quality Award to date:

2008

Poudre Valley Health System, Fort Collins, CO (health care)

Cargill Corn Milling North America, Wayzata, MN(manufacturing)Iredell-Statesville Schools, Statesville, NC (education)
http://www.pvhs.org/http://www.cargill.com/http://iss.schoolwires.com/http://iss.schoolwires.com/http://www.cargill.com/http://www.pvhs.org/


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2007

PRO-TEC Coating Co., Leipsic, OH (small business)Mercy Health System, Janesville, WI (health care)

Sharp Healthcare, San Diego, CA (health care)City of Coral Springs, Coral Springs, FL (nonprofit)U.S. Army Armament Research, Development and EngineeringCenter(ARDEC), Picatinny Arsenal, NJ (nonprofit)

2006

MESA Products, Inc., Tulsa, OK (small business)Premier Inc., San Diego, CA (service)North Mississippi Medical Center, Tupelo, MS (health care)

2005

Sunny Fresh Foods, Inc., Monticello, MN (manufacturing)DynMcDermott Petroleum Operations, New Orleans, LA (service)Park Place Lexus, Plano, TX (small business)Richland College, Dallas, TX (education)

Jenks Public Schools, Jenks, OK (education)Bronson Methodist Hospital, Kalamazoo, MI (health care)

European Quality Award

The European Quality Award is now referred to as the EFQMExcellence Award.

This distinction is awarded annually by the European Foundationfor Quality Management to the organization that is the bestproponent in Europe ofTotal Quality Management.
http://www.proteccoating.com/http://www.mercyhealthsystem.org/http://en.wikipedia.org/wiki/Sharp_Healthcarehttp://www.coralsprings.org/http://www.pica.army.mil/http://www.pica.army.mil/http://www.mesaproducts.com/http://www.premierinc.com/http://www.nmhs.net/http://www.sunnyfresh.com/http://www.dynmcdermott.com/http://www.parkplacelexus.com/http://www.richlandcollege.edu/http://jenksps.org/http://www.bronsonhealth.com/http://en.wikipedia.org/wiki/EFQM_Excellence_Awardhttp://en.wikipedia.org/wiki/EFQM_Excellence_Awardhttp://en.wikipedia.org/wiki/EFQMhttp://en.wikipedia.org/wiki/EFQMhttp://en.wikipedia.org/wiki/Total_quality_managementhttp://en.wikipedia.org/wiki/Total_quality_managementhttp://en.wikipedia.org/wiki/EFQMhttp://en.wikipedia.org/wiki/EFQMhttp://en.wikipedia.org/wiki/EFQM_Excellence_Awardhttp://en.wikipedia.org/wiki/EFQM_Excellence_Awardhttp://www.bronsonhealth.com/http://jenksps.org/http://www.richlandcollege.edu/http://www.parkplacelexus.com/http://www.dynmcdermott.com/http://www.sunnyfresh.com/http://www.nmhs.net/http://www.premierinc.com/http://www.mesaproducts.com/http://www.pica.army.mil/http://www.pica.army.mil/http://www.coralsprings.org/http://en.wikipedia.org/wiki/Sharp_Healthcarehttp://www.mercyhealthsystem.org/http://www.proteccoating.com/


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The first award was made in 1992 to Rank Xerox. Subsequentwinners are:

1993 Milliken Europe 1994 D2D (Design to Distribution) 1995 Texas Instruments 1996 BRISA (Bridgestone) 1997 SGS-Thomson 1998 TNT UK 1999 Yellow Pages 2000 Nokia

In the past, the award was given to organizations in the followingcategories:

Large Organizations and Business Units Operating Units of Companies Public Sector Organizations Small and Medium-sized Enterprises (SME) in two

categories, 'Independent SMEs' and 'Subsidiaries of Larger

Organizations.

European Quality Prizes are awarded each year by the EFQM.Recipients are organizations that have applied for but not won theEuropean Quality Award; however, the application was of such ahigh standard that the European Quality Prize is appropriate.

Conclusion

Malcolm baldrige national quality award since 1988 has been presentedannually by the President to recognize performance excellence focuseson an organization's overall performance management system. The
http://en.wikipedia.org/wiki/Rank_Xeroxhttp://en.wikipedia.org/w/index.php?title=Milliken_Europe&action=edit&redlink=1http://en.wikipedia.org/wiki/D2Dhttp://en.wikipedia.org/wiki/Texas_Instrumentshttp://en.wikipedia.org/w/index.php?title=BRISA&action=edit&redlink=1http://en.wikipedia.org/wiki/SGS-Thomsonhttp://en.wikipedia.org/wiki/TNT_N.V.http://en.wikipedia.org/wiki/Yellow_Pageshttp://en.wikipedia.org/wiki/Nokiahttp://en.wikipedia.org/wiki/Small_and_Medium-sized_Enterprisehttp://en.wikipedia.org/wiki/Small_and_Medium-sized_Enterprisehttp://en.wikipedia.org/wiki/Nokiahttp://en.wikipedia.org/wiki/Yellow_Pageshttp://en.wikipedia.org/wiki/TNT_N.V.http://en.wikipedia.org/wiki/SGS-Thomsonhttp://en.wikipedia.org/w/index.php?title=BRISA&action=edit&redlink=1http://en.wikipedia.org/wiki/Texas_Instrumentshttp://en.wikipedia.org/wiki/D2Dhttp://en.wikipedia.org/w/index.php?title=Milliken_Europe&action=edit&redlink=1http://en.wikipedia.org/wiki/Rank_Xerox


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Award promotes awareness of performance excellence as anincreasingly important element in competitiveness and informationsharing of successful performance strategies and the benefitsderived from using these strategies. To receive a Baldrige Award,

an organization must have a role-model organizationalmanagement system that ensures continuous improvement in thedelivery of products and/or services, demonstrates efficient andeffective operations, and provides a way of engaging andresponding to customers and other stakeholders. The Award is notgiven for specific products or services. European Quality Prizesare awarded each year by the EFQM.


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