MBNQA Implementation:

How does MBNQA Improve Company Performance?

Wahyu Iskandar
29115565
YP 54 A

Malcolm Baldrige National Quality Award Definition

An award established by the U.S. Congress in 1987 to raise awareness of quality

management and recognize U.S. companies that have implemented successful quality
management systems. Awards can be given annually in six categories: manufacturing, service,
small business, education, healthcare and nonprofit. The award is named after the late Secretary
of Commerce Malcolm Baldrige, a proponent of quality management. The U.S. Commerce
Departments National Institute of Standards and Technology manages the award, and ASQ
administers it.

Baldrige Criteria
There are 7 criteria in MBNQA:
1. Leadership
Examines how senior executives
guide and sustain the organization
and
how
the
organization
addresses Governance, ethical,
legal
and
community
responsibilities.
2. Strategic Planning
Examines how the organization
sets strategic directions and how it
determines and deploys key action
plans.
3. Costumer Focus
Examines how the organization determines requirements and expectations of customers
and markets; builds relationships with customers; and acquires, satisfies, and retains
customers.

4. Measurement, analysis, and knowledge management

Examines the management, use, analysis, and improvement of data and information to
support key organization processes as well as how the organization reviews its
performance.
5. Workforce
Examines how the organization engages, manages, and develops all those actively
involved in accomplishing the work of the organization to develop full potential and how
the workforce is aligned with the organizations objectives.
6. Operations
Examines aspects of how key production/delivery and support processes are designed,
managed, and improved.
7. Result
Examines the organizations performance and improvement in its key business areas:
customer satisfaction, financial and marketplace performance, workforce,
product/service, and operational effectiveness, and leadership. The category also
examines how the organization performs relative to competitors.

How does MBNQA Works

The scoring of responses to Criteria items and Baldrige Award applicant feedback are based on
two evaluation dimensions. The dimensions are process and result.
Process refers to the methods your organizational uses. There are 4 factors in process:
a. Approach
The methods used to accomplish the process
b. Deployment
Applied in addressing item requirements relevant and important to organization
c. Learning
Refining approach through cycles of evaluation and improvement
d. Integration
Approach is aligned with your organizational needs identified in the Organizational
Profile and other process items
Result refers to organizations output and outcomes. There are 4 factors in result:
a. Level
Current level of performance
b. Trend
Rate of performance improvements or the sustainability of good performance
c. Comparison
your performance relative to appropriate comparisons, such as competitors or
organizations similar to yours
d. Integration

Results measures (often through segmentation) address important customer, product,

market, process, and action plan performance requirements identified in your
Organizational Profile and in process items
The following guidelines should be observed in assigning scores to item responses

All areas to address should be included in the item response. Also, responses should

reflect what is important to the organization.

A process item score of 50 percent represents an approach that meets the overall
requirements of the item, that is deployed consistently and to most work units, that has
been through some cycles of improvement and learning, and that addresses the key

organizational needs.
A results item score of 50 percent represents a clear indication of good levels of
performance, beneficial trends, and appropriate comparative data for the results areas
covered in the item and important to the organizations business or mission

Benefit of Using MBNQA

1. Accelerated improvement efforts: The application process is an effective tool in itself.
It accelerates and goes beyond internal self-assessments by bringing a rigorous, objective,
external viewpoint to the organization's internal improvement process.
2. Energized employees: Pursuing a common goal motivates employees, resulting in
energized improvement efforts.
3. An outside perspective: Five to eight trained experts review each application. As a
group, they spend a minimum of 300 hours reviewing each application, and site-visited
applicants receive more than 1,000 hours of review.
4. Learning from the feedback: Each applicant receives an objective, non-prescriptive
written assessment of its strengths and opportunities for improvement based on an
examination of its Award application against the Baldrige Criteria for Performance
Excellence.

Reference:
1. http://asq.org/learn-about-quality/malcolm-baldrige-award/overview/overview.html
2. Baldrige Performance Excellent Program. Criteria for Performance Excellence.2011.