Chapter 10: The Baldrige Framework for Performance Excellence
TRUE/FALSE
1. The criteria for performance excellence consist of a hierarchical set of categories, items, and areas to
address.
2. In the context of the criteria for performance excellence, the strategic planning category is positioned
as the foundation for all other categories in the systems framework that underlies the Baldrige
philosophy.
3. In the context of the criteria for performance excellence, the results category provides “real–time”
information for evaluation and improvement of processes and products, in alignment with overall
organizational strategy.
4. The leadership category in the 2011–2012 Baldrige Criteria consists of two examination items: Senior
leadership and communication and organizational performance.
5. The vision, values, and mission area to address asks organizations to answer the following question: In
creating a sustainable organization, how do senior leaders develop and enhance their leadership skills?
6. In the Baldrige Criteria, areas to address that request information on approach or deployment begin
with the word “what.”
7. The Baldrige Criteria are prescriptive in that they specify detailed procedures for achieving quality.
8. Over the years, the Baldrige Criteria have been streamlined and simplified; most significantly, the
word “quality” was judiciously dropped in the mid-1990s.
9. In the first stage of the Baldrige Award process, each application is thoroughly reviewed by
approximately seven examiners chosen from among leading professionals in business, education,
health care, and nonprofits (all of whom are nonvolunteers).
10. In the context of the Baldrige Award process, deployment refers to refining the approach through
cycles of evaluation and improvement.
11. In the context of the characteristics of Baldrige Award recipients, organizations that have leadership
and governance systems in place measure the performance of their leadership and governance
teams—which is not common practice.
12. The Baldrige Award Criteria form a model for business excellence in any organization, whether large
or small.
13. The Baldrige program creates great value for the U.S. economy.
14. Joseph Juran viewed the Baldrige Award as a competition, which was fundamentally at odds with his
teachings.
15. The EFQM framework based on the concept of excellence in corporate social responsibility refers to
excellence as exceeding the maximum regulatory framework in which the organization operates and to
strive to understand and respond to the expectations of their stakeholders in society.
16. The Canadian Awards for Business Excellence quality criteria differ significantly in structure from the
Baldrige Award Criteria.
17. In the context of Australian Business Awards, organizations at the Gold Award level should meet
Silver recognition plus be able to demonstrate superior performance in at least three of the categories
in the framework and also have scored at least 50 percent in each item.
18. The Performance Excellence Award criteria are based on components of the Malcolm Baldrige
National Quality Award, and are geared toward China’s unique business environment.
19. ISO typically focuses on measuring product quality and driving process improvement and cost savings
throughout the organization.
20. ISO 9000:2000 is a comprehensive business performance framework.
21. Six Sigma initiatives fulfill in part many of the elements of ISO 9000:2000.
22. The competitive strategy level is where organizational strategy and Six Sigma must align, because it is
at this level that the tools of Six Sigma can be most effectively applied.
23. Six Sigma can have a significant impact on the cost of quality because of its focus on financial return.
24. Six Sigma is based on understanding and improving processes on a project–by-project basis.
25. Six Sigma is not a substitute for continuous improvement.
MULTIPLE CHOICE
1. The Malcolm Baldrige Criteria for Performance Excellence consist of how many categories?
a.
Four
b.
Five
c.
Seven
d.
Nine
2. The criteria for performance excellence for the Malcolm Baldrige Award consist of a hierarchical set
of categories, items, and areas to address. Which of the following is NOT one of them?
a.
Strategic Planning
b.
Workforce Focus
c.
Measurement, Analysis, and Knowledge management
d.
Return on investment
3. In the context of the criteria for performance excellence, the aim of strategy development is to:
a.
ensure that strategies are successfully deployed for goal achievement.
b.
guide the organization’s process management toward the achievement of key
organizational results and strategic objectives.
c.
foster high performance, to address core competencies, and to help accomplish action
plans and ensure organizational sustainability.
d.
strengthen overall performance, competitiveness, and future success.
4. In the context of the criteria for performance excellence, the _____ category provides “real–time”
information (measures of progress) for evaluation and improvement of processes and products, in
alignment with overall organizational strategy.
a.
Operations Focus
b.
Results
c.
Strategic Planning
d.
Measurement, Analysis, and Knowledge Management
5. Leadership, strategic planning, and _____ categories represent the “leadership triad.”
a.
measurement, analysis, and knowledge management
b.
Customer Focus
c.
Workforce Focus
d.
Operations Focus
6. The Leadership category in the 2011–2012 Baldrige Criteria consists of two examination items: Senior
Leadership and _____.
a.
Support of Key Communities
b.
Governance and Societal Responsibilities
c.
Vision, Values, and Mission
d.
Communication and Organizational Performance
7. In the Baldrige Criteria, areas to address that request information on approach or deployment begin
with the word “_____.”
a.
how
b.
what
c.
when
d.
why
8. The _____ represent the underlying philosophy of the Baldrige Criteria.
a.
Core Values and Concepts
b.
basic elements of improvement
c.
principles of quality management
d.
Quincunx
9. Which of the following statements is true of the development of the Baldrige Criteria?
a.
The initial set of criteria in 1988 had 20 items with 30 areas to address.
b.
The set of criteria in 1997 had 62 items and 278 areas to address.
c.
In 1999, the criteria were reworded in a question format.
d.
The word “quality” was judiciously included in the mid-1990s.
10. In 2005, Baldrige introduced the concept of _____—which refers to an organization’s ability to
address current business needs and to have the agility and strategic management to prepare
successfully for the future, and to prepare for real-time or short-term emergencies—into the criteria.
a.
sustainability
b.
adaptability
c.
innovativeness
d.
proactivism
11. The senior management at Life Inc., a pioneer in the health care domain, came up with a blueprint to
address the current issues facing the company. This blueprint provides the framework for the company
to address the current business needs while giving it the agility and strategic management to prepare
successfully for the future, to prepare for real-time or short-term emergencies, and for workforce and
customer engagement. Which of the following Baldrige organizational concepts is being used by the
company?
a.
Managing for innovation
b.
Valuing workforce members and partners
c.
Sustainability
d.
Focus on the future
12. In the Baldrige assessment, _____ refers to the methods a company uses to achieve the processes
addressed in each category.
a.
strategy
b.
approach
c.
results
d.
deployment
13. In the Baldrige assessment, _____ refers to the extent to which the approach is applied by a company
in addressing item requirements relevant and important to the organization, the approach is applied
consistently, and the approach is used by all appropriate work units.
a.
strategy
b.
deployment
c.
results
d.
process
14. In the Baldrige assessment, _____ refers to how a company refines the approach through cycles of
evaluation and improvement, encourages breakthrough change to the approach through innovation,
and shares refinements with other relevant work units in the organization.
a.
deployment
b.
strategy
c.
integration
d.
learning
15. In the Baldrige assessment, _____ refers to the extent to which a company aligns the approach with
organizational needs identified in the Organizational Profile and other process items.
a.
learning
b.
strategy
c.
integration
d.
results
16. After the _____ review process for the Baldrige Award, the Panel of Judges selects potential
applicants for site visits.
a.
approach
b.
consensus
c.
site
d.
independent
17. _____ is probably the most challenging concept for an organization to master in order to receive the
Baldrige Award.
a.
Entrepreneurism and innovation
b.
Work systems and work processes
c.
Governance and leadership metrics
d.
Achievement in results
18. Which of the following is NOT an objective of state-sponsored quality awards?
a.
Providing a forum for information exchange
b.
Winning a state award as a prerequisite to apply for the Baldrige Award
c.
Encouraging firms to adopt quality and productivity improvement approaches
d.
Promoting awareness of productivity and quality
19. According to Baldrige Criteria and Deming’s 14 points, communication of values, expectations,
customer focus, and knowledge as a key area of the Senior Leadership item is discussed under:
a.
teach and institute leadership.
b.
improve constantly.
c.
learn the new philosophy.
d.
statement of purpose.
20. Compared to the Baldrige Award, the European Excellence Award places greater emphasis on the
_____ category.
a.
impact on society
b.
documentation of processes
c.
employee training
d.
top management’s understanding of quality
21. The Baldrige Award is a better fit to the national culture of _____ than it is to the United States.
a.
Canada
b.
China
c.
Japan
d.
India
22. National Quality Institute is a nonprofit organization designed to stimulate and support quality-driven
innovation within all enterprises and institutions, including business, government, education, and
health care in _____.
a.
Australia
b.
Canada
c.
China
d.
the United States
23. Of the four levels of awards given in Australia, the _____ recipients will demonstrate Approach and
Deployment that are well defined, planned, subject to review, and show evidence of improvement over
time.
a.
Foundation in Business Excellence Level
b.
Bronze Award Level
c.
Silver Award Level
d.
Gold Award Level
24. In 2001, the China Association for Quality (CAQ) introduced the _____.
a.
National Quality Award
b.
Mayor’s Cup Quality Award
c.
Foundation in Business Excellence Award
d.
Six Sigma Excellent Organization Award
25. The criteria for the Canadian Awards for Business Excellence are similar in structure to the criteria for
the:
a.
Deming Prize.
b.
American Society for Quality Control Award.
c.
Malcolm Baldrige National Quality Award.
d.
ISO 9000 Certification Program.
26. Process management activities are:
a.
included in the Baldrige and the ISO 9000:2000 standards.
b.
included in the Baldrige Criteria but not the ISO 9000:2000 standards.
c.
not included in the Baldrige Criteria but are included in the ISO 9000:2000 standards.
d.
neither included in the Baldrige Criteria nor the ISO 9000:2000 standards.
27. Which of the following focuses on product and service conformity for guaranteeing equity in the
marketplace and concentrates on fixing quality system problems and product and service
nonconformities?
a.
Baldrige Criteria
b.
Six Sigma
c.
ISO
d.
NQI
28. Which of the following focuses on measuring product quality and driving process improvement and
cost savings throughout the organization?
a.
Baldrige Criteria
b.
ISO 9000:2000
c.
Six Sigma
d.
Deming’s 14 principles
29. Topline Inc. is a leading supplier of food products to retailers across the U.S. As part of its quality
management principle, it focuses on product and service conformity for guaranteeing equity in the
marketplace and concentrates on fixing quality system problems and product and service
nonconformities, with the key requirement being customer focus. The guidelines for the quality
management system followed by Topline are as per the framework of _____.
a.
ISO 9000:2000
b.
EFQM
c.
NQI
d.
Six Sigma
30. Cindy Hayes, the CEO of Spurling Inc., wants the organization to focus on measuring product quality,
driving process improvement, and cost savings throughout the organization. To this end, she makes
different teams and provides champions to sponsor projects, provides training resources, and
communicates progress and achievements. The entire plan is integrated into the strategic planning
process. Project selections are made based on understanding of the financial as well as the nonfinancial
benefits to the organization. Cindy Hayes is practicing the _____ methodology to lower the cost of
quality because of its focus on the financial return.
a.
Six Sigma
b.
ISO 9000:2000
c.
Baldrige
d.
Deming
31. Six Sigma is based on understanding and improving processes on a _____ basis.
a.
product-by-product
b.
department-by-department
c.
day-by-day
d.
project-by-project
32. A fundamental aspect of Six Sigma methodology is identification of CTQ characteristics that are vital
to customer satisfaction. “CTQ” denotes:
a.
continuous total quality characteristic.
b.
critical to quality characteristic.
c.
customer to quote feedback.
d.
certain to qualify idea.
33. Broadway Inc. is a leading automobile manufacturer. To achieve customer satisfaction, during the
process of producing a product or service, its management continuously gathers information needed by
internal customers for process control activities to ensure that the product or service is meeting the
critical to quality parameters. The management of Broadway Inc. is said to be following the _____
methodology.
a.
ISO 9000:2000
b.
Six Sigma
c.
Baldrige
d.
Deming
34. Strong Cement is a cement-manufacturing company headquartered in the U.S. As part of its
organizational policy, the management establishes, plans, and implements measurement, monitoring,
and improvement activities; monitors information about customer satisfaction as a performance metric;
and acquires and analyzes data to determine improvement effectiveness. The management is following
the guidelines of _____.
a.
Six Sigma
b.
Baldrige
c.
Deming
d.
ISO 9000:2000
35. Six Sigma projects can be categorized in different levels, based upon their impact on results. Level 1
projects:
a.
directly affect operations by avoiding expenditures.
b.
result in redeployment of resources inside an organization to increase operating efficiency
or productivity.
c.
directly affect an organization’s profit margin.
d.
directly affect operations by increasing the chances of obtaining higher future revenues.
ESSAY
1. Identify and discuss the key aspects of strategic planning addressed by the Baldrige category of
strategic planning.
2. Identify the category of the Baldrige Criteria that directly relates to focusing on customers. List the
examination items associated with this category. Explain the specific management processes that
comprise each examination item.
3. Identify three quality awards that have been implemented by nations or coalitions outside the United
States. Explain their relationship to the Baldrige Award.
4. Describe how a Six Sigma project may lead to increase in customer satisfaction.
5. Explain how the Baldrige Criteria, ISO 9000:2000, and Six Sigma approach process management.
CASE
1. In the 1990s, New Jersey-based health care provider AtlantiCare adopted the:
a. Baldrige Criteria.
b. plan-do-check-act cycle.
c. 5Bs performance excellence framework.
d. the tight-loose-tight process.
2. In 2000, New Jersey-based health care provider AtlantiCare began implementing _____ to push its
performance levels to new heights.
a. the Baldrige Criteria
b. Six Sigma
c. the plan-do-check-act cycle
d. ISO 9000
3. In the 1990s, New Jersey-based health care provider AtlantiCare built its operations around the
concept that:
a. winning a state award is the most important goal.
b. patients are the center of everything.
c. making profits for shareholders is the principal objective.
d. employees are the biggest assets of an organization.
4. At orientation, new employees get a crash course in AtlantiCare’s improvement methods, as well as a
performance excellence framework called the _____.
a. 5Bs
b. TLT process
c. PDCA cycle
d. balanced scorecard
5. What is the performance excellence framework used by AtlantiCare?
6. How does AtlantiCare empower its employees in individual business units?
7. AtlantiCare’s 5Bs performance excellence framework includes _____.
a. publicity
b. equity
c. financial performance
d. leadership
8. AtlantiCare gives managers the tools they need to operate within a leadership environment referred to
by the organization as the _____.
a. plan-do-check-act method
b. 5Bs framework
c. KBDs
d. tight-loose-tight process (TLT)
9. AtlantiCare’s business units set action plans that relate to strategic challenges identified by AtlantiCare
as key to organizational success. Which of the following is a strategic challenge associated with health
engagement?
a. Developing new business and care models to support and grow primary care
b. Creating sustainable growth outside of the primary service area
c. Increasing quality of care through clinical communication and transparency
d. Recruiting, training and retaining a highly skilled workforce
10. Which of the following statements is true of AtlantiCare?
a. The Home Health Division of AtlantiCare was awarded HomeCare Elite status by OCS Inc.
b. It established the TLT Center in 2006.
c. It established a series of Baldrige Sharing Days exclusively for small organizations that want to
travel the same road to improvement.
d. Its efforts resulted in a very high market share due to which there was a decrease in revenues.
11. In 1994, Branch-Smith Printing Division developed a quality plan and began an internal Baldrige
assessment process. The most significant opportunity for improvement they recognized was to
improve in the _____ area.
a. employee involvement
b. process management
c. information and knowledge
d. customer focus
12. What are the factors that led to Branch-Smith Printing Division (BSPD) developing the Innovating
Excellence model?
ANS:
13. What was the feedback provided by Baldrige examiners to BSPD when BSPD applied for the top-level
award in 1999 and received the Texas Quality Award?
14. Over a period of three years, BSPD applied for the Baldrige Award. In 2000, the company did not
receive a site visit. What were some of the key strengths and outstanding practices the examiners
recognized about BSPD?
15. In 2002, BSPD received a site visit from the examiners and was finally selected as a recipient of the
Baldrige Award. Summarize the feedback.