Malcolm Baldrige Quality Award • Created by Congress in 1987 • Named after Malcolm Baldrige who served as Secretary of Commerce from 1981-1987 • Award is given annually to recognize US companies that excel in quality achievement and management • 3 Categories: manufacturing, service, small business • http://www.quality.nist.gov/Contacts_Profiles.htm
ISO 9000 Standards • Voluntary standard that is quickly becoming the norm • Series of quality standards defined by the International Organization for Standardization • Certification to an ISO 9000 standard means that the firm has a quality management system in place that ensures consistency of output quality • Takes 9 to 18 months to get certified • ISO 9000 does not prescribe particular practices but requires that businesses implement three-component cycles. Activities affecting quality must be: ✓ Planned ✓ Controlled ✓ Documented
Note: ISO 14000 series - An environmental management standard which focuses on pollution prevention and ecological impact
Seven Concepts of TQM
1. Continuous Improvement
Philosophy: Continuously improve the quality of your product or service. Involves all operations and work centers including suppliers and customers
2. Six Sigma
← Originally developed by Motorola ← Refers to an extremely high measure of process capability ← A Six Sigma capable process will return no more than 3.4 defects per million operations (DPMO) ← Utilizes a highly structured approach to process improvement ← Requires the commitment of top management ← Utilizes corporate sponsors (Champions) ← Provides extensive training to employees ← Sets stretch goals
3. Employee