Original 1988 Malcolm Baldrige Quality Award Criteria

Dr. Curt Reimann (First Director ('Father') of the Baldrige National Quality Award) authored the 1988 Baldrige Criteria. He used inputs from various quality management gurus and other sources of expertise but purposely refrained from endorsing the specific views or constraints of any of these individuals.

  Curt Reimann - Paul Steel  The photo on the left shows Dr. Reimann and me with the original 1988 Baldrige Examiners class. Dr. Reimann is located at the bottom left of the photo and I am the third person up from the bottom right. This photo was taken on the steps of the main entrance to NIST. The second photo (on the right) shows Dr. Reimann and me twenty years later. Dr. Reimann served as Overseer to a 2008 international Baldrige site visit team I led which also included Lori Kirkland and Roy Bauer.

Original 1988 Malcolm Baldrige Quality Award Criteria

1.0 LEADERSHIP (150 pts.)

The Leadership category examines how all levels of corporate management and staff provide leadership of quality improvement processes (QIP). Particular emphasis is placed on the sustained and visible role of top management including the Chief Executive Officer (CEO), the Chief Operating Officer (COO), and the Chief Quality Officer (CQO).

Text Box: I 1.1   Senior Corporate Leadership (50)

1.1.1 Describe the major roles of the CEO, COO, CQO, and other key executives in quality improvement processes (QIP). Include specific examples of sustained and visible executive involvement in the development of an effective corporate quality culture.

Scoring Criteria

  1. demonstration of continuous, meaningful leadership and involvement in addressing quality issues

  2. direct interaction by these executives in many levels of the organization

  3. involvement in external quality-related activities. (i.e. speeches, professional societies, etc.)

  4. evidence that executive leadership has resulted in improved product or service quality

1.2   Policy (30)

1.2.1 Describe the corporate quality policy (or mission) and goals, the philosophy of its development, and how "ownership" of the policy by senior management was accomplished. Describe how the policy is communicated to all employees.

Scoring Criteria

  1. customer and consumer orientation of the policy and goals

  2. emphasis on continuous improvement and total quality (i.e. involvement of all functions and organizational units)

  3. relationship of the policy to the type of business and the business environment

  4. role of employees being embodied in the policy

  5. employee awareness and understanding of the content and importance of the policy

  6. length of time policy has been operational

  7. policy regarding cost and quality trade-offs

1.3    Management System and the Quality Improvement Processes (30)

1.3.1 Describe how quality management and improvement responsibilities are integrated into the organizational structure.

Scoring Criteria

  1. evidence of senior, mid-level, and local managers' understanding of and participation in QIP

  2. extent of integration of QIP structure with management structure

1.3.2 Describe elements of QIP that are particularly valuable in facilitating coordination between functions or organizational units.

Scoring Criteria

  1. use of interdepartmental quality-improvement and problem-prevention teams

  2. application of supplier/user concepts between departments

1.3.3 Describe how the corporate-wide quality management plans and practices are implemented and managed on a routine operational basis. Include strategic and operating plans and objectives.

Scoring Criteria

  1. well-defined management responsibility for quality success or failure at all levels

  2. single point of focus for defining and documenting the quality improvement practice

  3. corporate data base or tracking system for relevant quality improvement information

  4. establishment of appropriate objectives, to enable measurement of progress

1.3.4 Describe the corporate-wide QIP management system and structure.

Scoring Criteria

  1. importance and effectiveness of quality management system

  2. extent to which management system encourages quality technology transfer within company

  3. standardization of quality improvement systems for similar products/services

1.4   Resource Allocation and Utilization (20)

1.4.1 Summarize trends of the past 3 years in allocations to quality improvement efforts (i.e. funds, staff, facilities, equipment, etc.). Describe future plans for allocations.

Scoring Criteria

  1. appropriate levels of support

  2. allocation trends

  3. evidence of buffering quality projects during budget constraints

  4. appropriate future targets

1.5   Public Responsibility (10)

1.5.1 Describe the mechanisms, if any, used for external communication of information concerning QIP and corporate support of quality assurance or improvement activities outside the company.

Scoring Criteria

  1. examples of quality improvement process and results information being communicated to customers, stockholders, directors, suppliers, and distributors

  2. management articles concerning the company's quality improvement practices and results in trade and professional society literature

  3. evidence of management support of staff participation in professional societies or trade association activities aimed at quality improvement

  4. evidence of staff participation and leadership in generic quality standards writing committees and in developing specific product or service standards

  5. evidence of involvement in transfer of non-proprietary and generic quality technology to external organizations

1.6   Unique and Innovative Leadership Techniques (10)

1.6.1 Describe any unique or innovative leadership techniques used in the corporate QIP and corresponding results.

Scoring Criteria

  1. effectiveness of the techniques

  2. linkage to major improvements or breakthroughs in the QIP

2.0 INFORMATION AND ANALYSIS (75 pts.)

The Information and Analysis category examines the means by which a company collects, analyzes, and uses data on product/service performance and trends for quality improvement and control purposes. Important data related to product or service design, reliability, durability, maintainability, cost, performance, process capability, and control are examined. Information on supplier quality, distributor or dealer quality, and customer satisfaction is also included.

2.1    Use of Analytical Techniques or Systems (15)

2.1.1 Describe the general use of analytical techniques or other methods for evaluating quality levels or quality improvement during design, development, qualification, and field-use of products, processes, and services. (For example, capital improvement budgeting, cost-of-nonconformance (CNC) data systems, quality function deployment, or other special tools.) Include descriptions of data collection, data, and trend analysis. Give examples of techniques.

Scoring Criteria

  1. appropriateness and thoroughness of techniques

  2. validity of techniques

  3. standardization of analysis methods throughout the company

  4. use of trend analysis

  5. widespread use of techniques by appropriate staff including design/development as well as production/service

  6. linkage of quality relationships to other factors such as cost for the type of business

  7. use of techniques to prevent rather then identify problems

2.1.2 Describe the use of methods to process, analyze, and evaluate data collected from within and outside the company. List specific methods used and describe how methods are used to predict or evaluate the quality.

Scoring Criteria

  1. appropriateness of methods and data

  2. linkage to quality (e.g. cost of non-conformance)

  3. linkage to productivity (e.g. yield rates of production processes)

  4. use in establishing quality or cost improvement priorities

  5. use to identify root causes of non-conformance

2.2    Use of Product or Service Quality Data (10)

2.2.1 Summarize the data related to the performance of products and services collected and used for the evaluation or assessment of quality levels and trends.

Scoring Criteria

  1. comprehensiveness and effective use of data

  2. thoroughness of collection effort

  3. extent of efforts to obtain data on non-production functions such as marketing, administrative services, and purchasing

  4. timeliness and relevance of the data collection

  5. timely communication of data to appropriate staff

  6. clear and concise reporting of data

  7. degree to which results of data-based analyses are used in routine management decisions

  8. effective use of quantitative data in decision-making and problem prevention

  9. product and service performance trends over last 3 years

  10. collection and use of data on competing products and services in the world-wide market

2.3    Customer Data and Analysis (20)

2.3.1 Describe the type of quality-related data and information obtained from customers or consumers and the ways in which it is analyzed and used for determining their needs.

Scoring Criteria

  1. adequacy of measures to assure the objectivity and candidness of customer or consumer data

  2. analysis methods that provide results that are useful to specific functions such as marketing, customer service, etc.

  3. relevance of the data and analysis results to their use in quality im­provement and in the design of new products or services

  4. timely and effective customer feedback

2.4    Supplier Quality and Data Analysis (10)

2.4.1 Describe the type of data related to the performance of suppliers, and the analysis and use of the data to improve supplier quality.

Scoring Criteria

  1. supplier knowledge of and success in meeting corporate quality goals and plans

  2. quality performance trends of suppliers during last 3 years

  3. appropriateness of the information collected and its use in QIP

  4. supplier awareness of expected performance criteria and actual performance

  5. suitability of the use of this information in procurement decisions

  6. appropriateness of the analyses performed

  7. evidence of supplier criteria and award programs

  8. evidence of supplier quality assistance efforts

  9. evidence of education and training programs for suppliers on new quality technology

  10. consequences of QIP failure by supplier

  11. consequences of QIP success by supplier

2.5    Distributor and/or Dealer Quality Data and Analysis (10)

2.5.1 When distributors, dealers, or independent licensees are involved with the dissemination or maintenance of the product or service, describe information that is collected related to their quality performance and how information is used for quality improvement.

Scoring Criteria

  1. dealer/distributor/licensee knowledge of and success in meeting corporate quality goals and plans

  2. usefulness of the information collected for allocation, sales, and franchise decisions

  3. extent of sharing of the data and quality improvement techniques with dealers and distributors

  4. appropriateness of the analysis methods

  5. other constructive involvement by the company in the dealers', distributors', or licensees' quality processes

  6. consequences of QIP failure by dealer, distributor, or licensee

  7. consequences of QIP success by dealer, distributor, or licensee

2.6    Employee-Related Data and Analysis (5)

2.6.1 Describe the types of information that are collected and assessed to indicate the extent of employee involvement in and attitudes toward QIP.

Scoring Criteria

  1. trends in employee involvement

  2. comprehensive stratification of the data to identify the extent of involvement of particular groups, such as bargaining unit personnel, field personnel, clerical support staff, etc.

  3. use of the information to address adverse trends

  4. appropriate and effective use of employee attitude surveys

  5. the role of the employee suggestion program in quality improve­ment

  6. methods used in the plant or service facility to obtain employee input

2.6.2 Describe employee performance measures that are trended as indicators of success of quality improvement and for changing the corporate culture.

Scoring Criteria

  1. trending of data such as employee absenteeism, injury rate, safety problems, turnover, etc. and their correlation with quality improvements

  2. trend or volume of useful employee suggestions on quality improvement

  3. evidence that corporation utilizes appropriate employee suggestions

  4. evidence of formal recognition of employee contribution to quality improvement

2.7    Unique and Innovative Information/Analysis (5)

2.7.1 Describe any unique and innovative approaches to collection, analysis, and dissemi­nation of information for quality improvement and their results.

Scoring Criteria

  1. effectiveness of the approaches

  2. linkage to specific quality improvement applications

  3. diagnostic use and integration of data into QIP

3.0 STRATEGIC QUALITY PLANNING (75 pts.)

The Strategic Quality Planning category examines the extent to which quality considerations are taken into account in the corporate planning process. Particular emphasis is placed on how and when information about customer requirements and satisfaction are identified and used for planning purposes.

3.1    Operational and Strategic Goals (20)

3.1.1 Describe the corporate operational (1 to 2 year) and strategic (3 to 5 year) goals for quality improvement, the process for establishment of these goals, and means to measure the progress in achieving these goals.

Scoring Criteria

  1. clarity and quantitative context of the goals

  2. appropriate rationale for quantitative or numerical goals

  3. extent of employee participation in the goal setting

  4. managers' accountabilities for achieving the goals

  5. performance trends and results

  6. effectiveness of actions taken when goals are not achieved

3.2    Planning Function (20)

3.2.1 Describe the company's planning function and how the organization is structured to highlight quality improvement planning.

Scoring Criteria

  1. degree of integration of quality improvement planning into general business planning

  2. adequacy of understanding by each organizational unit and management level of their planning responsibilities

  3. effectiveness of methods used to identify and prioritize quality improvement issues

  4. ability to translate quality improvement issues into defined projects with individuals assigned for responsibility and accountability

  5. establishment of periodic checks or critiques of the planning process to improve its effectiveness

  6. evidence of customer, consumer, and employee input into the plan­ning process

3.3    Planning for Quality Improvement (30)

3.3.1 Summarize specific corporate plans for quality improvement, including their relationship to general business plans and implementation strategy.

Scoring Criteria

  1. extent of integration with general business plans

  2. extent to which all organizational units and levels are included in the strategy for implementation

  3. effectiveness of the means for monitoring the plans' implementation and for taking appropriate remedial action

  4. the extent to which plans address the product or service quality improvements needed to compete in the worldwide market

3.4    Unique and Innovative Planning (5)

3.4.1 Describe any unique or innovative techniques being used for operational and strategic planning and for quality improvement planning and their results.

Scoring Criteria

  1. effectiveness of the techniques

  2. their overall effect on the planning process

    4.0   HUMAN RESOURCE UTILIZATION (150 pts.) 

The Human Resource Utilization category examines the effectiveness and thoroughness of human resource utilization in quality management and QIP.

4.1    Management and Operations (30)

4.1.1 Describe the corporate plan and objectives for utilization of employees in QIP.

Scoring Criteria

  1. extent of staff involvement in developing plans and objectives

  2. application of objectives to improving staff capabilities

  3. applications to all corporate functions and staff

4.1.2 Describe how quality improvement requirements are addressed in the corporate per­sonnel system.

Scoring Criteria

  1. quality-related employee selection criteria

  2. quality-related employee development projects

  3. quality-related promotion criteria

  4. use of quality management and staff training

  5. performance evaluation criteria related to quality

  6. employee rewards based on quality achievements

4.2   Employee Quality Awareness and Involvement (50)

4.2.1 Describe the means used by management to inform employees of quality goals, progress in meeting goals, and other significant quality improvement program functions and results.

Scoring Criteria

  1. effective use of newsletters, closed-circuit TV, and other com­munications media

  2. active participation by top management

  3. evidence that goals are perceived as real rather than slogans or 'public relations"

4.2.2 Describe the means available for employees to communicate ideas and concerns about quality improvement to top management.

Scoring Criteria

  1. evidence of meaningful and timely communications

  2. top management's use of these communications

  3. meaningful and timely feedback to suggestor

4.2.3 n> Describe employee involvement in the identification and resolution of quality problems and how corporation ensures involvement.

Scoring Criteria

  1. extent of explicit quality guidance for employees

  2. number of employees involved at different levels

  3. change in employee involvement in last 3 years

  4. evidence of resolution of specific quality problems because of employee initiative

4.3   Quality Training and Education (30)

4.3.1 DescrDescribe how corporation assures that employees have sufficient skills and knowledge of quality improvement processes, principles, technology, and objectives. Describe how corporation measures the effectiveness of quality training.

Scoring Criteria

  1. number, type, and appropriateness of quality improvement training programs

  2. number and proportion of employees formally trained

  3. trend in quality improvement training during last 3 years

  4. effectiveness of training in improving quality and improved utiliza­tion of staff in quality activities

4.4   Evaluation, Incentive, and Recognition Systems (30)n>

4.4.1 DescrDescribe how company evaluates and recognizes employee contributions to quality improvement.

Scoring Criteria

  1. extent and timeliness of quality-related evaluations

  2. effective communication of quality evaluation information to employees

  3. consequences of employee failure to carry out quality improvement directives

  4. linkages of quality improvement achievements to employee recog­nition and reward

4.4.2 n> DescrDescribe the recognition systems in effect that are related to quality improvement accomplishments.

Scoring Criteria

  1. employees' perception that real-time recognition is being given by their immediate supervisor

  2. use of formal non-monetary recognition methods

  3. quality improvement accomplishments included in formal performance appraisal system

  4. relationship of compensation policy to quality improvements

  5. number and percent of employees formally recognized for quality-related achievements during last three years

  6. suppliers, distributors, or licensees, if applicable, included in recognition programs

4.5    Unique and Innovative Approaches (10) n>

4.5.1 Describe any other unique and innovative procedures or methods used to assure par­tici­ticipation of all employees in QIP and any subsequent results.

Scoring Criteria

  1. effectiveness of procedures

  2. linkage to specific quality improvements

5.0 QUALITY ASSURANCE OF PRODUCTS AND SERVICES t> (150 pts.)

The Quality Assurance of Products and Services category examines the systems and processes used for designing, manufacturing, and delivery of high quality products or services in a manner that avoids the need for post production/delivery identification and correction of defects. The design process must minimize quality problems associated with the production or use of a product or service. Similarly the production and delivery processes must have appropriate performance measures for continuous, real-time monitoring of quality and provide feedback for process control and continuous improvement.

5.1    Customer Input to Products and Services (20)

5.1.1 Describe the system to obtain information on customer requirements and customer satisfaction. Describe customer service operations and how data on customer satisfaction are uare used.

Scoring Criteria

  1. appropriateness of data collection system for the customer popula­tion

  2. frequency of collection

  3. use of statistically valid test procedures

  4. validation of data, such as correlating customer satisfaction data with data on market share, growth rate etc.

  5. systematic and timely communication of information to relevant departments, i.e. planning, R&D, production, service etc.

  6. use of data in QIP during last 3 years

5.2    Planning for New or Improved Products and Services (20)n>

5.2.1 Describe specifically how customer requirements are included in the planning of new products and services.

Scoring Criteria

  1. the degree to which quality objectives are established

  2. input by relevant departments

  3. validating the objectives relative to the customer needs and requirements

  4. translating definitive customer requirements into operational re­quirements in each phase of the new product or service develop­ment

  5. adequacy and effectiveness of the decision process concerning trade-offs between customer needs and costs

  6. timeliness in quality product or service introduction

5.2.2 n> Describe specifically how customer requirements and customer satisfaction are taken into into account in the planning process to improve existing products and services.

Scoring Criteria

  1. active system for soliciting customer information

  2. amount of consideration for the requirements and satisfaction of both internal and external customers

  3. evidence of customer requirements and customer satisfaction being a regular, ongoing part of the planning process

  4. awareness of customer requirements and customer satisfaction issues by the individuals responsible for the planning process

5.3    Design of New or Improved Products and Services (30)n>

5.3.1 DescrDescribe how specific quality objectives are established for design of all new or im­proved products and services. Give one or more examples.

Scoring Criteria

  1. evidence of periodic tightening of quality objectives

  2. relationship to customer needs and expectations

  3. use of lessons learned from prior experience

  4. linkage between R&D and design or between R&D and new ser­vice delivery

  5. use of quality requirements in product or service certification evidence of continuous quality improvements to existing products or services

  6. evidence of quantitative quality comparisons to competitive products or services

5.3.2 n> Describe how quality objectives and customer information are disseminated to staff responsible for new product or service development.

Scoring Criteria

  1. effectiveness of dissemination mechanisms

  2. procedures for translating customer requirements to design requirements

  3. system for monitoring effectiveness and timeliness of design activities

5.3.3 Use of analytical methods in new product or service development (i.e. Pareto Analysis, Failure Modes and Effects Analysis, Taguchi Methods, Quality Function Deployment, etc.). List methods used. Describe how and where used, results achieved, and length of time in use.

Scoring Criteria

  1. appropriateness of methods

  2. extent of use

  3. length of time in use

  4. linkage to quality needs and requirements

  5. effectiveness of use

5.3.4 Describe how quality design requirements are functionally integrated into product or service systems.

Scoring Criteria

  1. extent and effectiveness of integration

  2. evidence of positive feedback from production/dissemination to design

5.4    Measurements, Standards, and Data System (10)

5.4.1 Describe both analytical methods (i.e. statistical process control) and physical/chemical measurement methods (i.e. coordinate measuring machines) used to establish capabilities of all production or service processes and for monitoring their control. List methods used. Include simulation (modeling) methods, laboratory simulation tests, reliability tests, accelerated lifetime tests, and others used to evaluate the quality of products or services.

Scoring Criteria

  1. appropriateness of methods

  2. extent of use

  3. linkage to quality needs

  4. evidence of use of Good Laboratory Practices (GLP)

  5. evidence of use of inter-laboratory studies to evaluate methods

5.4.2 Describe how precision and accuracy of physical/chemical measurement methods and the validity of data provided by those methods are assured. List measurement assurance activities for test methods which support quality control.

Scoring Criteria

  1. availability and use of measurement assurance technologies

  2. use of calibration standards, standard reference materials, and standard test methods

  3. adequacy of records, manuals, equipment labels, calibration certificates, and other measurement assurance documentation

5.5   Technology (10)

5.5.1 Describe the specific technologies used for quality improvement purposes for the applicants' products or services.

Scoring Criteria

  1. appropriateness of technologies

  2. use of new technologies (i.e. automated systems, telecommunica­tions)

  3. integration of technologies with processes/systems (i.e. design, production, material handling, inventory control, marketing or service dissemination)

  4. effectiveness of office (e.g. file management) and business (e.g. accounting) support technologies in meeting customer requirements and needs

5.6.1 Describe the audit or other assurance methods and procedures used to monitor or evaluate the effectiveness of the quality management system. Give examples.

Scoring Criteria

  1. use and results of formal audits by internal or external experts results of customer or other applicable audits including government linkage of audit results to QIP

  2. clear assignment of quality monitoring and audit responsibilities

  3. information from process capability studies made by company, suppliers, distributors, or licensees

5.6.2 Describe the audit or other assurance methods and procedures used to monitor or evaluate the quality of products or services.

Scoring Criteria

  1. evidence that quality requirements are met

  2. compliance to standards

  3. use of comparisons between products or service facilities

5.7    Documentation (10)

5.7.1 Describe documentation developed to support the QIP including quality and process control manuals, procurement specifications, corporate standards, maintenance and repair manuals, user guides, and customer complaint handling manuals. Describe documentation or other ways that "knowledge preservation" is assured. List titles of documents.

Scoring Criteria

  1. clarity and completeness of documents

  2. extent and effectiveness of use by staff

  3. timely updating

  4. evidence of continuous improvement in. documentation

  5. unique and innovative documentation or information maintenance

5.8   Safety, Health, and Environment (10)

5.8.1 Describe corporate goals and requirements to protect employees from hazards as­sociated with its products or services. Describe procedures for compliance with safety, health, and environmental standards.

Scoring Criteria

  1. formal employee safety program

  2. documentation and use of safety and health standards

  3. proper storage and inventory control for hazardous materials

  4. proper security and operation of hazardous equipment or work areas

  5. evidence of compliance with OSHA, EPA, or other mandatory standards

  6. work-related injuries/deaths during prior 3 years and comparison with industry averages

  7. timeliness and effectiveness of corrective actions

5.8.2 Describe corporate goals and requirements for the safety and health of customers, and the community. Describe procedures for compliance with health and safety standards.

Scoring Criteria

  1. appropriate formal safety review program

  2. appropriate customer education and training

  3. clarity and completeness of safety documentation (i.e. safety manuals, warnings, etc.)