Malcolm Baldrige was the Secretary of Commerce who championed quality management and helped draft the Malcolm Baldrige National Quality Improvement Act, which established the Malcolm Baldrige National Quality Award. The award recognizes excellence in manufacturing, service, small business, education, health care, and nonprofit organizations. It focuses on customer satisfaction and organizational performance. The Malcolm Baldrige criteria evaluate key factors such as leadership, strategic planning, customer and market focus, information and analysis, and workforce engagement.

1. Prepared By:
ERICSON CUTILLON MA. PAMELA
BARBA

3.  Who was Malcolm Baldrige?
Malcolm Baldrige was Secretary of
Commerce from 1981 until his death in a
rodeo accident in July 1987. Baldrige was
a proponent of quality management as a
key to this country’s prosperity and long-
term strength. He took a personal interest
in the quality improvement act that was
eventually named after him and helped
draft one of the early versions. In
recognition of his contributions, Congress
named the award in his honor.

4. •Malcolm Baldrige national
Quality Award (MBNQA)
-was instituted in USA in the year
1987 through Malcolm Baldridge National
Quality Improvement Act by the US
government. The award lays emphasis on
Customer Satisfaction.

5. The Malcolm Baldrige award is given to three
categories of organization as given below:
Manufacturing
The process of converting raw materials,
components, or parts into finished goods that
meet a customers expectations or
specifications.
A type of economic activity that is intangible,
is not stored and does not result in ownership.
A service is consumed at the point of sale.
Small Business
Small businesses are normally privately
owned corporations, partnerships, or sole
proprietorships.
Service

6.  Human Resources Development and Management(15%)—
Examines how the organization enables its workforce to develop its full
potential and how the workforce is aligned with the organization’s objectives.
 Management of process Quality(14%)—Examines aspects of how key
production/delivery and support processes are designed, managed, and
improved.
 Quality and Operational Results(18%)—Examines the organization’s
performance and improvement in its key business areas: customer
satisfaction, financial and marketplace performance, human resources,
supplier and partner performance, operational performance, and governance
and social responsibility. The category also examines how the organization
performs relative to competitors.

7.  Leadership(9%)—Examines how senior executives guide the
organization and how the organization addresses its responsibilities to
the public and practices good citizenship.
 Strategic Quality planning(6%)—Examines how the organization
sets strategic directions and how it determines key action plans.
 Customer Focus and Satisfaction(30%)—Examines how the
organization determines requirements and expectations of customers
and markets; builds relationships with customers; and acquires,
satisfies, and retains customers.
 Information and Analysis(8%)—Examines the management,
effective use, analysis, and improvement of data and information to
support key organization processes and the organization’s
performance management system.

8.  Notice 30% marks are allotted for customer focus and
satisfaction. The sub-parameters of the customer focus
and satisfaction are:
*Customer Relationship Management
*Commitment to customer
*Customer satisfaction determination
*Customer satisfaction results
*Customer satisfaction comparison
*Future requirement and expection of customer

9. Purposes of the Award
 Help stimulate American companies improve quality and productivity for
the pride of recognition while obtaining a competitive edge through
increased profits;
 Recognize the achievements of those companies that improve the
quality of their goods and services and provide an example to others;
 Establish guidelines and criteria that can be used by business,
industrial, governmental, and other enterprises in evaluating their own
quality improvement efforts; and
 Provide specific guidance for other American enterprises that wish to
learn how to manage for high quality by making available detailed
information on how winning enterprises were able to change their
cultures and achieve eminence.

11.  ISO 9000 Standards
◦ Define the required elements of an effective quality management
system, can be applied in any company
◦ ISO 9000 to comprehend the principles of quality
management, function of quality management and correct use
of terms
◦ Is a collection of documentation guidelines (9000 - 9004) which
focus on the documentation of operational techniques and
managerial activities used to fulfill customer expectations and
requirements.
◦ The ISO 9000 series of quality standards was developed by the
International Organization of Standards (ISO) in 1987, and has
since become the international quality standard (Watson, 1992).

12.  The “Plan-Do-Check-Act” cycle, also known
as the “Deming Cycle”
 A dynamic cycle that is deployed
to organization’s processes
 Associated with the planning, implementation, control
and continual improvement

14.  To operate efficiently
 To achieve customer satisfaction
 To improve financial results
 Satisfy all the stakeholders
 To secure sustainability

15. ISO 9000:2000 Quality Management
Principles
1. Customer
Focus
Organizations depend on their customers and
therefore should understand current and future
customer needs, should meet customer
requirements, and strive to exceed customer
expectations.
2. Leadership
Leaders establish unit of purpose and direction of
the organization. They should create and maintain
the internal environment in which people can
become fully involved in achieving the organization’s
objectives.

16. 3. Involvement of
People
People at all levels are the essence of an
organization and their full involvement enables
their abilities to be used for the organization’s
benefit.
4. Process Approach
A desired result is achieved more efficiently
when activities and related resources are
managed as a process.
5. System Approach
to Management
Identifying, understanding, and managing
interrelated processes as a system contributes
to the organization’s effectiveness and efficiency
in achieving its objectives.
6. Continual
Improvement
Continual improvement of the organization’s
overall performance should be a permanent
objective of the organization.

17. 7. Factual Approach to
Decision Making
Effective decisions are based on the
analysis of data and information.
8. Mutually Beneficial
Supplier Relationships
An organization and its suppliers are
interdependent and a mutually beneficial
relationship enhances the ability of both to
create value.

18. Quality Management
According to ISO 9000 standards, Quality
management comprises. “All activities of the overall
management function that determine the quality policy,
objectives and responsibilities and implement them by means
such as quality planning, quality control, quality assurance and
quality improvement within the quality system.
The Quality system consists of the organizational
structure, procedures, processes and resources needed to
implement quality management

19. The above brings out the following:
The company must have an objective and policy for quality of the
product and services.
The organization should plan for meeting the objective
The plan should include QA, QC and methodology for
improvement.
There must be a clear organizational structure for building quality
into the products and services with necessary resources
The quality management should be implemented formally with
well-defined processes and procedures and trained resources

20. INSPECTION
Pre-World War II
Quality Control
Quality Assurance
Quality
Management
TQM
EVOLUTION OF QUALITY
Post-World War II

21. Quality Planning- refers to the activities that establish the
objectives and requirement for quality.
Quality Improvement- this process aims at attaining
unprecedented levels of performance, which are significantly
better than the past level.

22. Strategic Planning
-important for any business. It involves making for the
following, in particular:
 Business Value
 Investment in machinery and equipment
 Manpower to be hired
 Budget
 Product Diversification
 Strategies for improving profits etc.

23. ISO 14000: Recent Developments inISO 14000: Recent Developments in
Formalized search for qualityFormalized search for quality
INTRODUCTION:
 ISO 14000 is concerned with environmental management.
 World’s first series of internationally accepted standards of
environmental management system.
 Guide to Environmental Management Principles, Systems and
Supporting techniques.
 Voluntary standards that will lead to the common worldwide approach to
environmental management systems.

24. ENVIRONMENTAL MANAGEMENTENVIRONMENTAL MANAGEMENT
SYSTEMS:SYSTEMS:
EMS is a method of going about your business while managing
environmental risks.
Provides order and consistency to the organization.
Involves incorporating environmentally responsible practices into
everyday business processes.
Recognizes and controls environmental risks while creating
measurable improvements in performance.

25. WHY IMPLEMENT EMS?
Improved compliance with environmental laws.
Sustainable development.
Credibility.
Pressure from environmentalists.
Worldwide focus to the environment.

26. ISO 14000 STANDARDS
Series of international standards for environmental
management.
ISO 14001 is the first in the 14000 series and specifies
requirements of an EMS.
Overall aim of ISO 14001 and other standards in the
14000 series is to support environmental protection and
the prevention of pollution in harmony with socio-
economic needs.
ISO 14001 applies to any organization that wishes to
improve and demonstrate environmental performance to
others through the presence of a certified EMS.

27. ISO 14001 CERTIFICATION PROCESS:
•Preliminary assessment
•Document review
•Initial assessment
•Main assessment
•Certification/registration.
•Surveillance

28. BENEFITS
•It can be applied to any type of organization.
•It helps in maintaining an efficient quality system in
an organization.
•It creates confidence in customer on the quality of
product supplied.
•It acts as competitive barrier.

29. Six Sigma as a Quality FrameworkSix Sigma as a Quality Framework
SIX SIGMA
•A term greek used in statistics to represent standard deviation from mean
value, an indicator of the degree of variation in a set of a process.
•Sigma measure how far a given process deviates from perfection. Higher
sigma capability better performance.
•The term “sigma” is used to designate the distribution or spread about the
mean (average) of any process or procedure.
For a process, the sigma capability (z-value) is a metric that indicates how
well that process is performing. The higher the sigma
capability, the better. Sigma capability measures the capability of the
process to produce defect-free outputs. A defect is anything that
results in customer dissatisfaction.

30. ORIGIN OF SIX SIGMA
•Six sigma was born in the 1980’s at Motorola.
•Bill smith engineer of Motorola
ESSENCE OF SIX SIGMA
Statistical Control Limits - Upper control limit (UCL) and
Lower Control Limit
Specification limitUpper specification limit (USL) and Lower
Specification Limit

31. What is six sigma?
“ Why do we call Six Sigma as Six Sigma and not Four or Five
Sigma or Eight Alpha (another Greek symbol)? Sigma is a statistical term
that measures process deviation from process mean or target. Mean is
also referred as average in common language. The figure of six was
arrived statistically by looking at the current average maturity of most
business enterprises. We would like to revise this figure to 8 or may be 9
provided the world becomes a more orderly and predictable (even with
increasing entropy or chaos) place to live!
Six Sigma - A highly disciplined process that enables organizations deliver
nearly perfect products and services.
•The figure of six arrived statistically from current average maturity of most
business enterprises
•A philosophy and a goal: as perfect as practically possible.
•A methodology and a symbol of quality.
•Six Sigma emerged as a natural evolution in business to increase profit
by eliminating defects
•The Current business environment now demands and rewards innovation
more than ever before due to:

32. Why six sigma?
Six Sigma emerged as a natural evolution in business
to increase profit by eliminating defects
The Current business environment now demands and
rewards innovation more than ever before due to:
•Customer Expectations
•Technological Change
•Global Competition
•Market Fragmentation

33. What is six sigma?
A statistical concept that measures a process in terms of
defects – at the six sigma level, there 3.4 defects per million
opportunities.
Six Sigma is not:
•A standard
•A certification
•Another metric like percentage
Rather!
•It is a Quality Philosophy and the way of improving
performance by knowing where you are and where you could
be

34. COMPANIES USING SIGMA:
Six Sigma is in use in virtually all industries around the
world. Some of companies can be listed as:
•Motorola
•Ericsson
•General Electric
•Sony
•Ford Motor Co.
•CITI bank

35. BPMS
BPM strategies emphasize on process improvement and
automation to derive performance
Combining BPM strategies with sigma six is most powerful
way to improve performance
Both strategies are not mutually exclusive but some
companies produced dramatic results by combining them.
WHAT IS DMAIC?
(Define, Measure, Analyze, Improve, Control)
A logical and structured approach to problem solving and process
improvement.
An iterative process (continuous improvement)
A quality tool which focus on change management style.

36. Phases of Six Sigma are:
Define specific goals to achieve outcomes, consistent with
customers demand and business strategy
Measure reduction of defects
Analyze problems ,cause and effects must be considered
Improve process on bases of measurements and analysis
Control process to minimize defects

37. WHAT IS DMADV?
•Acronym for:
•Define the project
•Measure the opportunity
•Analyze the process options
•Design the process
•Verify the performance
WHEN SHOULD SIX SIGMA BE USED?
Its usage depends on the type of business. In general,
“If there are processes that generate a lot of negative customer
feedback, whether that customer is internal or external, the components of Six
Sigma should be considered as a means to study and rectify the problem.”

38. BENEFITS OF SIX SIGMA
•Generates sustained success
•Sets performance goal for everyone
•Enhances value for customers
•Accelerates rate of improvement
•Promotes learning across boundaries
•Executes strategic change

39. SIX SIGMA MANAGEMENT:
When practiced as a management system, Six Sigma is a
high performance system for executing business strategy.
Six Sigma is a top down solution to help organizations:
•Align their business strategy to critical improvement
efforts
•Mobilize teams to attack high impact projects
•Accelerate improved business results
•Govern efforts to ensure improvements are sustained

40. KEY ROLES FOR SIX SIGMA
Six Sigma identifies several key roles for its
successful implementation:
•Executive leadership
•Champions
•Master Black Belts (Identify projects& functions)
•Black Belts (Identify non value added activities)
•Green Belts ( works on small projects )

41. TOOLS & TECHNIQUES
7QC tools
•Check Sheets (collect data to make improvements)
•Pareto Charts( define problem and frequency)
•Cause and effect diagram (Identify possible causes to
solve problem)
•Histogram (Bar charts of accumulated data to
evaluate distribution of data)
•Scatter diagram (plots many data points and pattern
between two variables)
•Flow Chart (Identify unwanted steps)
•Control charts (Control limits around mean value)

42. TRAININGS & CERTIFICATIONS
If you want to make yourself more valuable and attractive
to employers then get training and certification
Option I – Certification as Six Sigma Green Belt
Option II – Certification as Six Sigma Black Belt
CONCLUSION
Six Sigma is methodology used for:
Aligning key business processes to achieve those requirements.
Utilizing rigorous data analysis to minimize data variation in those
processes.
Driving rapid and sustainable improvement to business processes.

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