Malcolm Baldrige National Quality Award

Malcolm Baldrige National Quality Award Nestl Purina PetCare Company Donald Harness, Renee Davenport, Melvina Lewis University of Phoenix Ops/571 Operations Management Darrell Bolman May 2, 2012

Malcolm Baldrige National Quality Award

Before United States leaders in the mid-1980s, realized in order for American companies to compete in a demanding, ever-changing global market, companies needed to focus on quality. Malcolm Baldridge who was at that time, Secretary of Commerce was an advocate of quality management as an answer to United States sustainability and prosperity. In July 1987, Malcolm Baldridge died in a rodeo accident, and after his death the United States Congress named the award in recognition of his contributions (United States Department of Commerce, 2012). The Malcolm Baldridge National Quality Improvement Act of 1987 goal was to improve and enhance the competitiveness of United States Businesses. The Baldridge program educates companies in performance, excellence management, and administers the Malcolm Baldridge National Quality Award. The scope of the award has changed over the years to include health care and education organizations, and nonprofit and government organizations. Congress created the Malcolm Baldridge National Quality Improvement Award Program to: Identify and recognize role-model businesses Establish criteria for evaluating improvement efforts Disseminate and share best practices (United States Department of Commerce, 2012) Through the nations public-private partnership, the Baldridge program is dedicated to performance excellence. The program addresses the importance through raising awareness, supplies organizational criteria and tools, educates leaders in schools, healthcare organizations, and government, and nonprofit agencies about the practices of best in-class organization and honors national role models with the only presidential award for performance excellence (United States Department of Commerce, 2012). Nestle Purina Pet Care Company (NPPC) is a consumer packaged goods that produces,

Malcolm Baldrige National Quality Award

markets, and distributes pet food and snacks for cats and dogs, and cat litter throughout the United States and Canada. NPPC is a part of Nestle S. A., the worlds largest food company. NPPC thrives on making a positive impact on its employees and the consumers who purchase their pet care products. The company promotes responsible pet care, community involvement, and the positive bond between people and their pets. (Http: //www.nist.gov/baldridge/overviewofnestle) Headquarters located in St. Louis, Missouri, NPPC operates 24 manufacturing facilities (20 in 14 states and four in Canada) and 16 regional sales offices in 13 states. NPPC employs a workforce of approximately 7,000 people and recorded global sales of $12.5 billion in 2010. NPPC ranks first in market share for pet care products in North America, has almost twice the market share of its closest competitor, and has grown its share by almost ten percent over10 years. NPPC was rated the most trusted pet food manufacturer from 2007 to 2009 and led in consumer perceptions as the most recognized pet food company. (Http: //www.nist.gov/baldrige/overviewofnestle) The company is recognized as best in the industry for outstanding safety performance. In 2010, the company maintained a Recordable Injury Frequency Rate that was 47 percent below the industry average. NPPCs Lost Time Injury Frequency Rate was 45 percent below the industrys average, 11 plants worked the entire year without lost time injuries. NPPC was named a Number One Best Place to Work in St. Louis, in 2009 and 2010 by the St. Louis Business Journal. (Http: //www.nist.gov/baldrige/overviewofnestle) The Baldrige criteria for performance excellence framework is based on the organizations ability to excel in the following areas; leadership, strategic planning, customer focus, measurement

Malcolm Baldrige National Quality Award

analysis and knowledge management. The company details its practices in the 2010 Malcolm Baldrige National Quality Award application. The leadership component is broken down into two components, senior leadership, governance and societal responsibilities. NPPC vision statement drives the companys leadership. The primary objective is for the checkerboard brand to appear in every pet owners household. The company has an increase in market share for five consecutive years. Leadership is responsible for creating an environment that fosters performance leadership. The company has a corporate compliance committee that addresses issues relating to governance and societal responsibilities. Its primary functions include promoting corporate transparency and ensuring product safety. Senior leadership, including the CEO and President, undergo yearly evaluations. To ensure product safety, the company has four major focus areas; best science, ongoing consumer and pet expert feedback, raw material control, and manufacturing control. The companys strategic planning takes place in one, three and five year increments. Each increment of the strategic planning has an analysis, development, deployment and integration, and manage performance phase. Flexibly is a key component of the strategic planning process. The programs attempt to provide employees with clear expectation, regular feedback, rewards and recognition for performance. NPPC uses five components to measure performance; products, customer-focused, financial, marketplace, people, and operations. Performances in these areas undergo daily, weekly, and monthly reviews. According to the companies Balridge application (2010), Employees have

Malcolm Baldrige National Quality Award

been taught a number of different analysis models and techniques such as DMAIC (Six Sigma), SPC, comparative cause analysis, and root cause analysis (pg 16). Customer culture revolves around product offering and the building of a customer culture. Product innovation starts with focus groups, in-home trials, Ethnographic studies, market segment analysis, market gap analysis, analysis of consumer trends in non-pet food buying behavior, ingredient research and retailer feedback. Customer culture is employee driven. NPPC has an extensive hiring program. It attempts hire individuals that share organizations core values.

Malcolm Baldrige National Quality Award

References: University of Phoenix. (2004). Pizza Store Lawout Simulation. Retrieved April 24, 2012, from University of Phoenix, rEsource, Simulation, QPS/571Operations Management Web site. U. S. Department of Commerce. (2012, April 25). Retrieved April 26, 2012, from Baldridge Performance Excellence Award: http://www.nist.gov/baldridge Nestle Purina PetCare Company, Retrieved April 29, 2012, from http://www.nist.gov/baldrige. ww.nist.gov/baldrige