Intended learning outcomes: Present the Deming Prize and the Malcolm Baldrige National Quality Award (MBNQA). Produce an overview on Deming Prize examination criteria and the structure of the MBNQA. Explain the EFQM Excellence Model and the EFQM Excellence Award.
In the 1950s, together with the development of the management-oriented quality concept, the Union of Japanese Scientists and Engineers established a national prize to provide an incentive for the continued development of total quality management in Japan, the annually awarded (for the first time in 1951 in Osaka) Deming Prize. See here also www.deming.org.
The Deming Prize uses the examination criteria shown in Figure 18.3.2.1.
Fig. 18.3.2.1 Deming Prize examination criteria.
The reaction of the American government, science, and economy to the ever stronger Japanese competition occurred in the form of various initiatives and agreements under the lead of Malcolm Baldrige, who served as US Secretary of Commerce. This resulted in the Malcolm Baldrige National Quality Improvement Act of 1987. The Act established the Malcolm Baldrige National Quality Award (MBNQA). Compare also [Verb98] and [Zink94], and www.nist.gov/baldrige. The MBNQA evaluation model gives the company a good opportunity to determine its own standing with regard to quality management.
Figure 18.3.2.2 shows the Malcolm Baldrige National Quality Award (MBNQA) criteria for performance excellence.
Fig. 18.3.2.2 Structure of the Malcolm Baldrige National Quality Award (based on [NIST06]).
The European response to the challenge is the European Foundation for Quality Management (EFQM.). The EFQM was founded in 1988 in Brussels. As one of its main activities, the EFQM presents the EFQM Excellence Award (formerly, European Quality Award [EQA]). The award, presented for the first time in 1992, recognizes excellence in the organization’s ability to realize outstanding quality and comprehensive customer satisfaction. See more at www.efqm.org.
The EFQM Excellence Model and the EFQM Excellence Award are based on the evaluation elements shown in Figure 18.3.2.3.
Fig. 18.3.2.3 The EFQM Excellence Model (based on www.efqm.org).
Based on the EFQM Excellence Model, excellent leadership is seen as a prerequisite for customer satisfaction, employee satisfaction, and positive results for society. To this purpose, the organization must develop a quality-conscious policy and strategy, utilize resources efficiently, and choose an employee-oriented way of proceeding. Only in this way, under consideration of all processes, can sustainable performance results be achieved.
Course section 18.3: Subsections and their intended learning outcomes
18.3 TQM (Total Quality Management) and Quality Management Systems
Intended learning outcomes: Present standards and norms of quality management: ISO 9000:2015. Describe the optimization paradigm: models and awards for Total Quality Management. Produce an overview on audits and procedures for assessing the quality of organizations, as well as on benchmarking.
18.3.1 Standards and Norms of Quality Management: ISO 9000:2015
Intended learning outcomes: Disclose standards in the DIN ISO 9000:2015 series (without ISO 10001 to 10004). Differentiate between the fulfillment paradigm and the optimization paradigm.
18.3.2 Deming Prize, MBNQA, EFQM — Models and Awards for Total Quality Management
Intended learning outcomes: Present the Deming Prize and the Malcolm Baldrige National Quality Award (MBNQA). Produce an overview on Deming Prize examination criteria and the structure of the MBNQA. Explain the EFQM Excellence Model and the EFQM Excellence Award.
18.3.3 Audits and Procedures for Assessing the Quality of Organizations
Intended learning outcomes: Identify the quality audit. Differentiate between first-party or internal audit, second-party audit, and third-party audit.
18.3.4 Benchmarking
Intended learning outcomes: Differentiate between benchmarking in very different industries and of different sizes at the level of the general management, and benchmarking with other firms in the same industry sector.