Integral Logistics Management — Operations Management and Supply Chain Management Within and Across Companies

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.

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

The Deming Prize uses the examination criteria shown in Figure

Fig.       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 The MBNQA evaluation model gives the company a good opportunity to determine its own standing with regard to quality management.

Figure shows the Malcolm Baldrige National Quality Award (MBNQA) criteria for performance excellence.

Fig.       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

The EFQM Excellence Model and the EFQM Excellence Award are based on the evaluation elements shown in Figure

Fig.       The EFQM Excellence Model (based on

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

  • 18.3.4 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.