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FOIA Number: 2006-0462-F
FOIA
·This is not a textual record. This is used as an
· administrative marker by the William J. Clinton
Pres~dential Library Staff.
Collection/Record Group:
Clinton Presidential Records
Subgroup/Office of Origin:
Speechwriting
Series/Staff Member:
Terry Edmonds
Subseries:
OA/10 Number:
10987
FolderiD:
Folde'r Title:
Baldridge Award Ceremony [2]
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UNITED STATES DEPARTMENT OF
COMMERCE
= =-
;;a§.::
-- --
OFFICE
OF THE
SECRETARY
WASHINGTON, D.C. 20230
EMBARGOED FOR RELEASE:
Oct. 16, 1996, 1 p.m. EDT
G 96-52
Contact: Jan Kosko
(301) 975-?.767
janice.kosko@nist.gov
FOUR U.S. COMPANIES NAMED TODAY
AS WINNERS OF THE 1996 MALCOLM
BALDRIGE NATIONAL QUALITY AWARD
President Clinton and Commerce Secretary Mickey Kantor today announced the
winners of the 1996 Malcolm Baldrige National Quality Award in recognition of their
achievements in quality and business performance. The winners are:
•
ADAC Laboratories, Milpitas, Calif. (manufacturing category);
•
Dana Commercial Credit Corporation, Toledo, Ohio (service category);
•
Custom Research Inc., Minneapolis, Minn. (small business category); and
•
Trident Precision Manufacturing Inc., Webster, N.Y. (small business category).
"The president and I are proud to name these four American companies as the
1996 winners of the Malcolm Baldrige National Quality Award," said Secretary Kantor.
"They represent a new breed of American business, grounded in traditional business
values-including putting customers first, trusting employees, building quality into
products and services, and being responsible corporate citizens-but with a focus on
the future and a passion for continuous improvement. They are models for how people
and organizations will operate and work, now and well into the next century," said
Kantor.
The Malcolm Baldrige National Quality Award was established by Congress in
1987 to enhance U.S. competitiveness by promoting quality awareness, recognizing
quality achievements of U.S. companies and publicizing successful performance
strategies. In conjunction with private industry, the Commerce Department's National
Institute of Standards and Technology manages the award program. The award is not
given for specific products or services. Currently, two awards may be given annually in
each of three categories: manufacturing, service and small business. Since 1988, 28
companies have won the award.
-more-
�2
Following are brief descriptions of the 1996 Baldrige Award winners. Further
information is available by calling NIST Public and Business Affairs at (301) 975-2762 or
on the World Wide Web at http://www.quality.nist.gov.
ADAC Laboratories
Founded in 1970, ADAC Laboratories designs, manufactures, markets and
supports products for healthcare customers in nuclear medicine, radiation therapy
planning and healthcare information systems. These products and services are sold to
hospitals, universities and clinics throughout the world. ADAC's 710 employees work
primarily at its headquarters in Milpitas, Calif., and at facilities in Houston, Texas, and
Washington, Mo.
Contact: Kathy Call, Corporate Communications, Ph. (408) 321-9100
Dana Commercial Credit Corporation
Dana Commercial Credit Corporation, an operation of Dana Corporation,
provides leasing and financing services to a broad range of business customers in
selected market niches. Its primary offices are located in Toledo and Maumee, Ohio;
Troy, Mich.; Oakville, Ontario, Canada; and Weybridge, Surrey, United Kingdom.
Activities range from leveraged leases for power generation facilities and real estate
properties with values up to $150 million; to customized programs assisting vendormanufacturers in selling products such as in-store photo processing laboratories; and to
customized private label leasing programs that aid computer manufacturers, distributors
and dealers in selling systems that average $10,000 each. Dana Commercial Credit has
assets of approximately $1.5 billion, and the company employs 547 people.
Contact: Tricia Akins, Director, Corporate Communications, Ph. (810) 680-4341
Custom Research Inc.
CRI is a full-service national marketing research firm with clients in consumer,
. business-to-business, services and medical markets. The company works with large
multinational corporations to design and conduct projects that provide information to
help make better business decisions. The firm is a privately owned corporation with
105 full-time professional staff. Clients are served from its headquarters in Minneapolis
and its offices in San Francisco and Ridgewood, N.J.
Contact: Beth Rounds, Senior Vice President, Ph. (612) 542-0882
Trident Precision Manufacturing Inc.
Trident is a privately held contract manufacturer of precision sheet metal
components, electromechanical assemblies and custom products. The company
develops tooling and processes to manufacture components and assemblies designed
by its customers in a variety of industries, including office equipment, medical supply,
banking, computers and defense. Trident's 167 employees work at a single facility in
Webster, N.Y., near Rochester.
Contact: Joseph Conchelos, Vice President of Quality, Ph. (716) 265-1009
-more-
�3
Criteria for the Baldrige Quality Award are accepted widely as the standard for
performance and business excellence. In addition to serving as the basis for applying
for the award, the criteria are used by thousands of organizations of all kinds for selfassessment, planning, training and other purposes. More than a million copies have
been distributed since the first edition in 1988.
To apply for the award, companies must submit details showing how they have
implemented an effective performance management system. An independent board of
business and quality experts evaluates the applications and looks for achievements and
improvements in seven areas: leadership, information and analysis, strategic planning,
human resource development and management, process management, business
results, and customer focus and satisfaction.
Teams of examiners visit applicants that pass an initial screening to verify
information in the application and to clarify any issues or questions that came up during
the review. All applications are reviewed by at least eight examiners. Each applicant
receives a "feedback" report citing strengths and areas that need improvement in its
quality management program.
President Clinton and Secretary Kantor are expected to present the awards to
the 1996 winners at a ceremony in Washington, D.C., later this year.
The four companies will present details of their quality improvement strategies
and results at the annual Quest for Excellence conference to be held Feb. 9-12, 1997,
at the Washington Hilton & Towers, Washington, D.C.
A non-regulatory agency of the Commerce Department's Technology
Administration, NIST promotes U.S. economic growth by working with industry to
develop and apply technology, measurements and standards. NIST was selected by
Congress to design and manage the award program because of its role in helping U.S.
companies compete, its world-renowned expertise in quality control and assurance, and
its reputation as an impartial third party.
-30News and general information on NIST is available on the World Wide Web at
http://www.nist.gov and on the Baldrige Quality Award program at
http://www .quality .nist.gov.
�THE WHITE HOUSE
Office of the Press Secretary
October 16, 1996
For Immediate Release:
PRESIDENT CLINTON ANNOUNCES WINNERS
OF THE 1996 BALDRIGE QUALITY AWARDS
The President today announced the winners of the 1996 Malcolm Baldrige .
National Quality Award. Dana Commercial Credit Corporation of Toledo, Ohio; ADAC
Laboratories of Milpitas, California; Custom Research Inc. of Minneapolis, Minnesota;
and Trident Precision Manufacturing Inc. of Webster, New York will be honored for
their achievements in quality management and business performance.
"Quality is one of the keys to the continued competitive success of U.S.
businesses. The Malcolm Baldrige National Quality Award, which highlights customer
satisfaction, workforce empowerment and increased productivity, has come to
symbolize America's commitment to excellence," the President said. "This year's
Award winners join an ever-growing and diverse family of companies showing the
world that quality pays."
For further information, contact Jan Kosko of the National Institute of Standards
and Technology at (301) 975-2762.
-30-
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~004
ADAC LABORATORIES
employees work either out of their homes or in small neld
offices in North America and Europe.
ADAC Laborntorics, a Silicon Valley-based maker of
high-technology healthcarc products, initiated a
management system based on quality management principles
as a way to change the culture of the company after
successfully coming out of a turnaround in the mid-1980s.
This customer-focused system, based on the Malcolm
Baldrige Awanl criteria and;ADAC's "four revolutions"
model has helped transform the company into a world Leader
in markets for diagnOll"tic imaging and healthcare
information systems.
David L. Lowe is chairman of the board and chief
executive officer. From 1990, when Lowe began managing
the nuclear medicine divi~>ion, through 1996, the company's
share of th~ domestic nuclear medicine market increased
from 6 percent to 50 percent and it became the market
leader in Europe. ADAC executives credit the application of
quality management principles and practices with
significantly improving the company's financial health ..
Now, ADAC is leveraging its continuous-improvement
capabilities to compete in new markets that it has targeted
to expand its bu,~iness.
The company's experience teaches that quality does
indeed pay. Between 1990 and 1995, overdll efficiency
improvements resulted in an increase in revenue per
employee from $100,000 to $330,000, 65 percent better
thari its competitors. At the same time, ADAC increased
its market share in its core business, nuclear medicine, to
over four times that of its nearest competitor in the United
States and became the market leader in Europe, Asia, and
Latin America.
ABOtrr ADAC
Founded in 1970, ADAC Laboratories designs,
manufactureS, markets, and supports products for nuclear·
medicine imaging, mdiation-thempy planning, and managing
healthcare information. Many of the company's products are
regulated by the Food and Drug Administration,. requiring
adherence to strict safety standards. ADAC has mstalled
abouc 5,000 systems at more than 1,500 hospitals, clinics, and
other sites around the world. These systems are extremely
complex, comprising seveml thousand parts, the vast majority
purchased from suppliers. Sales of diagnostic imaging cameros
and other nuclear medicine products accounted for 85
percent of 1996 revenues totaling $240 million. Steadily
increasing, exports contributed 27 percent to sales.
Most of ADAC's 710 employees are based at its corporate
hc>adquarters and production fdcility In Milpitas, Calif., or at
offices in Houston, Texas, headquarters of the company's
healthcare information systems business. About 300 ADAC
CuSTOMERS CoME FIRST
ADAC's wholeorganization approach
to increasing customer
satisfaction and
improving quality may
be illustrated best by the
1993 novel decision to
eliminate the Quality
Council, a body
composed of executives
and managers and
charged with overseeing
the company's quality
management process.
As a result of bench·
marking a Baldrige-winning company, ADAC replaced the
council with two weekly meetings that are open to all
employees as well as customers and suppliers. During these
meetings, numerous employees present data on key measures
of customer satisfaction, quality, productivity, and operational
and financial performance.
The company's corporate planning process-known as
DASH-yields a strategic plan for the next three to five
years and an annual business plan. Consistent with ADAC's
primary core value, "Customers come first," the DASH
process begins with a thorough, fact-based analysis of
�11/21/96
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FAX 414 273 7073
customer requiremenrs-today's and tomorrow's. This
analysis mines data gathered from a variety of sources,
including sutvcys,loot-order information, intetviews
conducted by customer-contact employees, logs of sctvice
calls, and focus groups. Results are integrated with those from
gna}yses of competitive forces, risks, company ca~bilities,
and supplier capabilities.
Short· and lo~g-term strategies are then distilled into the
''vital few," key business driven; that focus and align plans and
continuous improvement efforts over the next year. In turn,
each department
translates the strategic
directions and business
drivers into specific
requlrements and action
plans. These are the
basis for MITs- "most
important tasks," or top
priority improvements
set for functional units
and for individual
employees. These plans
are then communicated
to all employees at the
formal DASH meetings.
STAYING ON CoURSE
ADAC management recognizes that good decisions begin
with good information. The company has made significant
invesnnents in data collection systems targeted to key needs
and activities, such as tracking design defects and cusromer
calls for support.
Most workers participate on highly empowered teams and
all manufacturing employees are members of self-directed
work teams. All employees receive training on customer and
supplier models, problem solving, and basic statistical
analysis. In 1996, each received, on average, more than 70
hotm of training, or nearly three times the amount received
ln 1990.
At quarterly ''measurement summits," representatives from
all departments review the types of data collected according
to the company's three criteria: whether the data support key
business drivers; address one of the "five evils" -waste,
defects, delays, accidents, or mistakes; or support objective
analysis for improvement. Participants also examine whether
new categories of data are needed to guide continuous·
improvement efforts.
Benchmarking is an integral element of ADAC's
standardized problem-solving process, wd is used regularly by
all continuous improvement teams to set performance goals
an.:! to gauge the effectiveness of its management processes.
Jk graphics
~003
REsULTS
ADAC's quality system has yielded highly leveraged
improvements, helping the company to compete and to
increase market share. ADAC consistently brings products to
market faster than its larger competitors. _For three recent
product releases ln its nuclear medicine business, ADAC was
at least eight months-and as many as 21 months-ahead
of Its nearest competitor. From 1990 to 1996, com~ny
revenues have tripled, and the portion of the revenues
accounted for by operating expenses has decreased to 26
percent, from almost 40 percent.
Significant gains in supplier performance also have been
achieved. In 1992, ADAC instituted a program to certify its
suppliers. The company purchases some 5,000 different types
of parts. By the end of 1996, over 80 percent of the parts
received by ADAC came from certified suppliers. Purchased
parr.s rejected during assembly have decreased from about 18
per camera ln 1993 to about four last year.
Efficiency gains have lowered the direct labor costs for
producing each of its imaging cameras, from an average of
almost $15,000 at the start of 1994 to less than $7,000 by the
end of 1996. Defect mtes, as measured at final inspection,
have fallen by about 40 percent.
As a result of performance gains and product
improvements, the volume of service calls during the first 30
days after the installation of a new imaging system-an
especially critical period when customers are forming their
perceptions of quality-has been cut in half. A 1995
independent survey rated the first-month reliability of
ADAC cameras as best in the industry. If customers do
encounter serious problems, however, they can expect a
quick and effective response. For example, if a system breaks
down, ADAC technicians will have it back in operation
within an average of 17 hours after receiving a customer's
call, or less than a third of the time it took in 1990.
As designed, ADAC's business system is delivering
increases In customer satlsfucdon, as ascertained through
surveys. Customer-retention rates have increased from 70
percent in 1990 to 93 percent ln 1995, and service-contract
renewals have risen to 95 percent, from 85 percent. In
independent, annual surveys of nearly 2,000 clinics and
hospitals, nuclear medicine customers consistently have rated
ADAC best at addressing their needs, and the gap between
ADAC and its competitors has been widening. In 1994 and
1995, ADAC was the only company to score above five on
this particular indicator of customer satisfaction, which is
measured on a scale of one to six. On all eight measures of
setvice satisfaction-from speed of phone response to
preventive maintenance-ADAC was the sole leader in five
categories and tied for the rop spot in the remaining ones.
For more information, contact:
ADAC Laboratories
·
Baldrige Office
540 Alder Drive Milpitas, CA 95035
Telephone: (408) 321-9100 Fax: (408) 321·9686
�11/21/96
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FAX 414 273 7073
Jk graphics
14!002
DANA COMMERCIAL CREDIT
CORPORATION
DCC competes on the basis of value-added lease products
and services, not just fmancing. Since 1991, the dollar volume
of DCC leases has more than tripled, to more than $1 billion.
When it comes to customer satisfaction, competitor
perfonnance, opemtional effectiveness, and workfooce
capabilities, Dana Commercial Credit Corpomtion always
wan~ to know the score. A provider of leasing and financing
servtces to a broad mnge of commercial customers, the Dana
Corpomtion subsidiary has developed a collection of quality·
linked "scoring processes" that assess how the company is
progressing in its pursuit of continuous improvement goals set
for all key ~ of d1e business.
ABOUT DCC
Since 1992, when DCC embarked on an effort to improve
teamwork and organizational conununications, the company
has scored gains In the quality of its performance, customer
·atisfaction, and the percentage of repeat business. For
xample, DCCs largest product group, the Capital Markets
Group (CMG), has closed all of irs multimillion·dollar
transactions on time for the past five years. Dealer Products
Group- U.S. (DPG), the next largest group, has reduced the
time it titlces to approve a tmnsactlon frorO. about seven hours
in 1992 to an hour or less in 1996.
Since 1994, CMG's customer-satisfaction scores have
~x~;eeded four on a five•point scale, and in 1995, topped the
mdustry avemge by almost two points. DPG has scored
be1:ween eight and nine on a 10-point scale, or nearly three
points higher than the average for its industry. .
Since 1980, when it was started with a $25 million
investment by its corporate parent, DCC has grown to
become the 11th largest among 2,000 U.S. leasing
companies, with 1995 revenues of nearly $200 million and
total assets of$1.5 billion. Headquartered in Toledo, Ohio,
~ co?Sists of seven major product groups, each aligned
wtth a dtfferent market segment. These include leveraged
leases for power generation facilities and real estate properties
with value:; up to $150 million, and leases to help
corrunercial equipment resellers, manufacturers, and
di~~butors ~ll equipment ranging in price from $4,000 to $3
rrulhon. Umque transactions are DCCs speciality, such as
arranging the shon-tenulease of microcomputers for the
television network covering the 1994 Winter Olympic
games, providing full-service leasing of on-site photo
processing equipment to retail oudets, and helping put a
major gas processing facillr:y In the North Sea "on-line."
DCC lease conttacts ultimately are prepared for businesseli
and organizations that leose equipment, facilities, or buildings.
However, the company views financial intermediaries such as
investment hankers and equipment manufacturers and
distributors, as its primary customers, since they are the major
source of leasing recommendations and referrals.
Most of DCCs 54 7 people are located in Toledo and
Maumee, Ohio; Troy, Mich.; Toronto; London· Paris· and
Zurich. The company's continuous improveme~t pr~ess is
led ~y the Division Operating Committee, chaired by OCC
Chatrman and Chief Executive Officer Edward Shultz and
includes heads of the seven product groups and tnajor '
support units.
ADDING VALUE FOR CUSTOMERS
. ~C aims to be the preferred financial services provider
m tts selected markets. To achieve this objective, DCC is
increasing customer satisfaction through the commitment,
skills, and innovativeness of its people and through its
quality improvement system.
�11/20/96
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FAX 414 273 7073
TI1e system provides the strategy, direction, incentives,
tools, and resources necessary for continuous Improvement,
but, by design, it is customized so each group concentrates on
the particular requirements and expectations of customers in
its truirket niche.
DCC's strategic plan imegrates customer, operational,
people, supplier, and quality plans into seven guiding plans,
one b)r each product group. Product group improvement
goals are translated into actions that address the company's
key business drivers: customer satisfaction, knowledgeable
people, quality processes, and profit for the shareholder.
In all groups; action plans are linked directly to anticipated
improvements in meeting four key customer requirements,
which are determined by the Division Operating Committee
but adapted to each market. Customer-related performance
metrics are established for each process and each
improvement project.
Jk graphics
~003
educational opportunities, and an exrensive reward and
recognition system. Currently, all executive positions and 95
percent of supervisory and management slots are filled by
people who advanced through the company.
The company uses education and training to differentiate
itself from its competitors. In 1992 it created the Education
Group co develop and teach courses in interpersonal cOrnmU·
nlcation, quality, and marketing, as well as In teclmical areas
needed co structure cw;tomlzed leases. In all, more than 40
courses are offered. Each DCC person received an average of
48 hours of formal education and training in 1995, better
than chief competitors and almost three times the leasing~
industry average. The company alc;o provides 100 percent
reimbursement for successfully completed college courses.
Training and education needs and effectiveness are
reviewed mondlly. Careful attention is paid to further
enharlcing the skills of people, including senior managers,
who have direct contact with customers.
REsULTS
Measurements are tracked closely. Each month, scorecards
are compiled to inform all rxx:: people of progress t:owatd
reaching goals for customer satisfaction, human resources, and
· key processes. A mondlly competitor scorecard also is
prepared tO compare DCC performance on key customer
satisfaction measures. In 1995, DCC piloted a customer
expectation scorecard, compiled largely from infonnation
gathered by cross-fi.mctionnl transaction reams that work
closely with customers in the design ofleasing arrangements
and new products. Now deployed company-wide, this
scorecard helps alert [)(X; to changing customer requirements
and indiattes how well the company is responding.
rx:c·s "SWOT' analyses compare company perfonnance
Performance in the key process areas
is flagged as a Strength or Weakness _compared to the
benchmark, as an Opportunity, or as a Threat to the business.
to bendunark measures.
"KNOWLEDGEABLE PEOPLE"
I:X::Cs mission statement and the Dana Style of
Management assert that "people are our most important
a-;..~t." To promote organizational flexibility and
res(Xlnsiveness to customers, DCC limits the number of
management layers within irs groups to five or fewer, and Its
"just do it" policy empowers OCCs people to act on their
ideruc for improvement without prior approval.
Major empha:;is is placed on retaining people and
cultivating company loyalty, accomplished through a
. "promote from within policy," mentoring programs,
DCC i3 continually alert for opportunities to improve its
leasing products and service delivery. Averaging about 10 per
person in 1995, employee ideas have been an especially
productive means for improving DCC's performance and for
diversifying and adding value to its product offerings. About
78 percent of all ideas were implemented.
The company's progress in improving performance and
increasing customer satisfaction is minored by gains in
financial performance. Rates of return on equity and as..~ts
have increased more than 45 percent since 1991. DCC also
credits its continuous improvement efforts with helping to
lower bonowing costs, the company's largest expense.
DCC now accounts for at least 10 percent of the Dana
Corporation's overall profitabUity, and it was the first division
to achieve the gold level of perfonnance in the annual
competition for Dana's Quality Leadership Award, which is
modeled after the Baldrige Award.
As it does with its customers and suppliers, DCC works
in partnership with the communities where its offices are
located. For example, it has provided computers to local
schools and charities. In Toledo, when negotiating tax
incentives for relocating its new headquarters buUding, OCC
committed the equivalent of 45 percent of the re5ultant tax
· savings to the Toledo School Board. As a result, the public
school system will receive 1.5 times more money from DCC
than from a nonnal tax distribution. The city has adopted
this approach for future tax incentive offerings:
For more information, contact:
Dana Commercial Credit Corporation, Quality Office
P.O. Box 906
Toledo, Ohio 43697-0906
Telephone: (419) 322-7500 Fax: (419) 322-7580
E-mail: dcc.quality@dana.com
�1L'21196
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FAX 414 273 7073
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~002
1996
AwARD WINNER
CuSTOM REsEARCH INC.
Custom Research Inc. (CRI), a national marketing
research finn, leverages an intensive focus on customer
satisfaction, a team-oriented workforce, and information
technology advances to pursue old-fashioned erids:
individualized service and satisfied customers. Since 1988,
when CRI adopted its highly focused customer-as-partner
approach, client satisfaction has risen from already high
levels, and gains in productivity, sales volume, and profits
have outpaced industry averages.
CRI's steering committee, composed of two partners and
two executive vice presidents, is responsible for crafting CRI's
goals and strategies and views customer loyalty as the firm's
most valuable business asset. With all CRl employees as
members of customer-focused teams, a flat organizational
tructure helps make managers immediately accessible to
:mployees, customers, and suppliers. Well-developed systems
are in place for understanding customer expectations,
soliciting customer feedback, and monitoring ~h facet of
company, team, and individual performance. Together, these
systems help set the courile for CR1 efforts to meet or exceed
customer expectations that can serve as a model for other
professional services firms.
CRI: A QUICK LOOK
Founded in 1974 and based in Minneapolis, privately
owned CRI conducts survey marketing research for a wide
range of firms. The bulk of its projects assist clients with new
product development in consumer, medical, and service
businesses. Revenues of more than $21 million in 1996 place
CRI among the 40 largest firms in the highly fragmented, $4
billion marketing research industry that is characterized by
low entry costs and tough competition. The firm credits a
reputation foc quality for making it one of only a handful of
companies that has remained independent while growing
over the past two decades.
Besides its Minneapolis headquarters, the firm has
electronically linked offices in San Francisco and the New
York City area as well as two telephone interviewing centers.
It employs 100 full-time staff members, most of whom are
cross-trained to create the flexibility needed to
accommodate the demands and schedules of research
projects. Interviewing services assist CRI in doing the
personal interviewing.
Choosing in 1988 to concentrate its business on high·
volume, repeat customers, CRI has reduced the number of
clients it serves. In 1995, CRI's clients numbered 67, down
from 138 clients in 1988; the number of larger clients during
this period increased from 25 to 34. This emphasis on large
accounts has paid off with a doubling in revenues, achieved
without increasing staff si:ze.
'SURPRISING AND DELIGHTING'
CuSTOMERS
In recent years, CRI
senior management
aimed for a new level of
conSistency and
competence in delivering
quality services by
organizing, systematizing,
and measuring quality.
The firm distilled
requirements for each
research project to four
essentials: accurate, on
time, on budget, and
meeting or exceeding
client expectations.
Before the first survey data arc collected, criteria defining
these requirements are determined in consultation with
clients when CRl managers and project team leaders
interview clients-and they do that extensively.
The company was reorganized to make maximum use of
customer-focused teams and to merge support departments in
order to reduce cycle time-a growing client priority. All
CRI teams have the same goal of "surprising and delighting"
their clients. CRI captures the essence of this goal in its Star
icon. Quality at CRI is client driven-the center of the
Star-and is integrated into the company's business system
as captured by the five key business drivers that are the points
of the star: people, processes, requirements, relationships, and
�11/20/96
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FAX 414 273 7073
. results ..With extensive staff involvement, the steering
committee annually sets corporate goals for the company,
which then tie to the goals for each work unit. Quatterly,
account teams review with the steering committee the
business plans and results for each client.
Results
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Worker commitment to continuous improvement is
reinforced by a variety of recognition programs; bonuses
based on corporate, team and individual achievement; and a
peer-reviewed system for evaluating personal performance.
CRI has a company-wide education plan, used to align
individual training wim business and quality goals. Each
employee has a development plan, which sets annual and
long-term goals for improvement and helps to identify
training needs. In 1996, most CRl employees averaged over
134 hours of training. All new CRl people receive company·
wide and job-specific training that addresses quality and
service issues. CRI bases company-wide training requirements
on client feedback, performance reviews, CRI's education
plan, CRl development plans, on-the-job reviews,
interviewer monitoring, and employee surveys.
A TECHNOLOGY.-DRIVEN APPROACH
· Requirements
Processes
The "high tech" component to CRI's business is reflected
by its alertness to teclmologlcal opportunities to improve its
Meeting customer-specified requirements depends on
efficient execution of well-documented, measumble
processes. Most professional services firms believe their
services cannot be "standardized." At CRI, while each project
is custom-designed,
process for handling it flows through
essentially the same steps across all projects. CRl developed
and heavily uses a project implementation manual for
interviewing. Internal "project quality recap" reports
completed for every study track errors ln any step of me
.project flow. CRI measures the accuracy of results and the
quality of personal and telephone interviewing. For example,
over the last several years, ratings for interviewers show
sustained average quality scores of approximately 95 points
out of 100, up from 83 points in 1990.
me
Clients have ample opportunity to advise and critique
CRI. At the end of each project, clients are surveyed to
solicit an overall satisfaction rating based on the customers'
expectations. Each month the results of the dient feedback
are summarized and distributed to all staff members.
Internally, end-of-project evaluations also are conducted for
CRI support teams and key suppliers. Personal interviewing
services, for example, are evaluated on performance and
contribute ideas for improving their quality.
PEOPLE MAKE THE DIFFERENCE
CRI uses a "high tech-high touch" approach to satisfying
customers. On the "high touch" side, CRI uses i£S flat
organizaaonal structure and relatively small sire to assure
that information flows freely within the company. Just as
importantly, they view continuous improvement as part of
their jobs. Staff members are surveyed annually, giving CRI
senior managers specific feedback, including clara on their
own performance as viewed by CRI-ers.
petformance or to devise new services that respond to
.
customer needs. "Managing work through technology-driven
processes" is one of CRt's key business drivers. CRI led, for
example, in the use of computers to assist ln telephone
interviewing, data collection, and analysis. Software enables
CRI to use technology to integrate all stages of a project:
produce a questionnaire for computer-assisted interviewing,
control the sampling and autodialing for interviewing, edit
and then tabulate the answers from the questionnaires,
display them in tabular format, and generate report-ready
tables for the final report and presentation. Computer
technology has reduced cycle time for just one of these steps
-tabulating data-from two weeks to a single day.
CRI views its major software supplier as a key partner.
The long-standing relationship extends to annual planning
sessions during which CRI shares its goals and the two firms
determine how the software maker can contribute to meeting
the goals.
These and other quality-promoting actions-including an
unconditional' satisfaction guarantee-aim to build client
confidence and loyalty, which, in tum, generate a variety of
business benefits. Since 1988, feedback from clients on each
of its projects shows steadily improved overall project
performance. CRI is now "meeting or exceeding" clients'
expectations on 97 percent of its projeets. Seventy percent of
Its clients say the company exceeds expectations. CRl is rated
by 92 percent of its clients as "better than competition" on
the key dimension "overall level of service."
For more information, contact:
Custom Research Inc.
10301 Wayzata Boulevard, P.O. Box 26695
Minneapolis, MN 55426
Telephone: (612) 542-0882 Fax: (612) 542..0835
E-mail: custom@research.com
�11/19/96
09:53
FAX 414 273 7073
~002
Jk graphics
I~/~ o - /=";~
1996
AwARD WINNER
TRIDENT PRECISION
MANUFACfURING INC.
As large companies cull the ranks of their suppliers and
demand more from those that survive the cut, Trident
Precision Manufacturing Inc. is being pushed to improve
continuously by its customers, by its competitors, and,
especially, by its own workers. From 1991 through 1995,
employees at the Webster, N.Y., firm submitted more than
5,000 process-improvement recc.muuendations-about 125
every month-and management has implemented 97
percent of those ideas.
Over that five~year span, Trident made significant gains
in many key performance areas, including productivity and
efficiency, customer satisfaction, sales, and profitability. Sales
'X!r employee jumped 29 percent, time spent on rework of
1onconforming products decreased nearly 90 percent,
customer complaints fell80 percent, and rates of return on
assets consistendy exceeded industry averages. In 1995,
Trident's five major customers rated the quality of the
supplier's products at 99.8 percent or better. The 17-year-old
company has never lost a customer to a competitor.
ABoUT TRIDENT
Founded in 1979, privately held Trident manufactures
precision sheet metal components, electro,mechanical
assemblies, and custom products, mostly in the office~
equipment, medical-supply, computer, and defense industries.
It has grown from a three-person operation to an employer of
167 peoP,le, occupying a modem, 83,000-square-foot facility.
In 1995, revenues totaled $14.5 million. Well established as a
local supplier, Trident is now diversifying to serve regional
and international markets. Sole company owner Nicholas
Juskiw is Trident's chief executive officer and president. In
1988, under Juskiw's leadership, the company's Senior
Executive Team devised and launched "Excellence in
Motion," a strategy designed to sharpen Trident's focus on its
CU5t0l11CfS and tO instill a commitment tO COntinUOUS
improvement throughout the organization.
'SATISFYING CUSTOMERS ••• ,
Trident has established "quality as its basic business plan" to
accomplish short~ and long~term goals for each of lts five key
business drivers: custOmer satisfaction, employee satisfaction,
shareholder value, operational perfonnance, and supplier
partnerships. All goals, however, contribute to achieving
Trident's ovcrarching aim of total customer satisfaction. Each
improvement project begins with a thorough analysis of how
to meet or exceed customer requirements in four critical areas:
quality, cost, delivery, and service.
Metrics are designed to
ensure that progress toward
d1e customer-targeted
improvements can be
evaluated. The company's'
data-collection system
provides all personnel with
a current record of the
company's progress toward
its goals. Forty~five
networked computersrecently increased from 18
at the request of
employees-make this
information readily
accessible. Performance data also are reviewed daily in each
department and weekly by the Senior Executive Team. Once
each month, this team aggregates d1e data for the entire ·
company and reports on progress toward goals set for each of
the five key business drivers.
Beyond tracking its operational and fman-;:ial
performance, Trident also analyzes data collected from a
"
variety of other internal and external sources. These include
semi-annual surveys of customers, suppliers, and employees;
benchmarking studies; discussions with customers; employee
forum<;; market reports; quarterly quality audits; and an
independently conducted annual assessment of the
company's competitive position within its industry.
Regular contact with customers and suppliers is an
essential element of Trident's quality strategy. Senior
executives meet twice a year with representatives of each
customer company for in-depdl discussions on Trident's
�11/19/96
09:55
FAX 414 273 7073
· perfo~ce as a supplier, while 41 customer-contact
personnel interc1ct with these firms on a daily basis.
Customers, as well as key suppliers, also participate in
Continuous Involvement Meetings, initiated by Trident to
gain full understanding of a customer's new or modified
.Jroduct design. Direct feedback flags real and potential
problems that can be a~ted upon immediately, and it alerts
Trident to changing customer requirements that can be
addressed in short~and long~range planning. Responding to
future requirements identified through such discu.ssioru, for
example, Trident nx:ently raised its goal for manufacturing~
process rellabilicyto a level significantly more stringent than
now specified by its moot demanding customers.
Before bidding
on a project,
Trident aloo works
with proopective
customers to
eliminate hazardous .
materials that may
be specified in the
initial design and
that would pose
health or
environmental
risks. By policy,
Trident will not
submit a bid If the
material
requirements are
not changed.
Trident also uses technology to strengthen links to
cw;tomers and suppliers. Electronic data interchange
capabilities, for example, permit paperless transactions, while
file-exchange capabilities enable customers to send their
· designs electronically to Trident's computer-aided design and
manufacturing equipment.
' ... FULFILLING EMPLOYEE
EXPECTATIONS'
Top management takes the lead in planning, setting
Improvement priorities, and systematically reviewing progress
toward qualicy goals, but executives and managers see their
primary role as facilitating the transformation to a continuous
improvemem culture. Workers, the company believes, are
the "source and foundation for quality leadership and
competitiveness." Consequently, Trident's human resource
strategies emphasize training, involvement through teams,
empowerment, and reward and recognition.
Since 1989, Trident has invested an avemge of 4.4 percent
of its payroll on training and education in toml quality as well
as general education, job-related skills, and safety. This is an
especially large investment for a small company and two to
three times above the average for all U.S. industry.
Jk graphics
~003 '
Organized Into functional departmental teams, employees
"own" specific processes and are given responsibility for
identifying problems and opportunities for improvement.
To foster innovation, employees have the authority to modify
their process, using the company's documented process
improvement procedure, which focuses attention on non·
value-added activities that can be eliminated.
The company also relies heavily on the comributlons of
cross-functional teams, and It encourages employees to
diversify their work skills and abilities. Eighty pen:ent of
Trident workers are trained In at least two job functions,
well on the way to the 1998 goal of 100 percent.
To reinforce worker commitment to continuous
Improvement, the company regularly acknowledges
exemplary performance. Reward and recognition of
employees have climbed steadily, from just nine incidents in
1988 to 1,201 in 1995.
REsULTS
Improvements set in motion by Trident's total quality
strategy have catalyzed performance gains that have cascaded
throughout the organization and generated benefits reaped by
customers. Employee turnover has declined dramatically,
from 41 percent in 1988 to 5 percent in 1994 and 1995.
The company correlates the:;e positive workforce trends with
Increasing productivity and rising levels of customer
satisfaction. Sales per employee rose from $67,000 in 1988 to
$116,000 in 1995.
Defect rates have fc1llen consistently, so much so that
Trident now offers a full guarantee against defects in its
custom products. Machines made for one of Trident's major
customers go directly to that company'li distribution center
for shipping. For the past two years, no defects have been
reported in these Trident~built machines. On the service
side, the company has greatly improved its on-time
delivery performance from 87 percent in 1990 to 99.94
percent in 1995.
These and other improvements have enabled Trident to
maintain its status as key supplier to major customers, even
after those companie; trimmed suppliers by 65 to 75 percent.
The company recognizes that, because of changing
competitive conditions, major manufacturers will expect
ever-better products and services from their suppliers. Trident
believes it has the strategy, people, tools, capabilities, and full
organizational commitment necessary to keep the company
one step ahead of customers' rising expectations.
For more informacion, contact:
Trident Precision Manufacturing Inc.
734 Salt Road
Webster, N.Y. 14580-9796
Telephone: (716) 265-1009 Fax:(716) 265-2386
�-----~-
United States Department of Commerce
Technology Administration-National Institute of Standards and Technology
MALCOLM BALDRIGE NATIONAL QUALITY AWARD
WHAT IS THE AWARD? By the 1980s, it was clear
to many industry and government leaders that a
renewed emphasis on quality was no longer an
option for American companies but a necessity for
doing business in an ever growing world market.
As a result, the Malcolm Baldrige National Quality
Award was established by Congress in 1987 to
promote quality awareness, to recognize quality
achievements of U.S. companies, and to publicize
successful quality strategies. The award is not for
specific products or services. Two awards may be
given afll!willy in each of three categories: manufacturing, service, and small business. In conjunction with the private sector, the National Institute
of Standards and Technology developed and manages the award program.
HOW ARE WINNING COMPANIES SELECTED?
Businesses located in the United States may apply
for the award. Those that do must undergo a rigorous evaluation by an independent board of examiners composed of private- and public-sector
experts in quality. The examination includes onsite
visits for those passing an initial screening. Each
applicant receives a written summary of strengths
and areas for improvement in quality management.
WHAT ARE THE CRITERIA AND HOW ARE THEY
USED? Seven broad categories make up the criteria: leadership, information and analysis, strategic
planning, human resource development and management, process management, business results,
and customer focus and satisfaction. Applicants for
the award must provide data to show quality
achievement and quality improvement in each area.
A General Accounting Office report calls
the award criteria "the 'most wi~ely accepted formal definition of what constitutes a total quality
management company." Almost 1 million copies of
the criteria have been distributed. Thousands of
organizations use the criteria as a quality
improvement "road map." In addition, about
30 states have established-or will establish soonstate quality awards programs, most of which are
modeled after the Baldrige Award ..
DOES QUALITY PAY? While quality management
cannot guarantee success, the Baldrige award winning companies and many others believe that investing in quality can lead to outstanding returns,
both for individual companies and the country.
According to a recent report by the Conference
Board, a private business membership organization, "A majority of large U.S. firms have used the
· criteria of the Malcolm Baldrige National Qualicy
Award for self-improvement, and the evidence suggests a long-term link between use of the Baldrige
criteria and improved business performance."
FOR FURTHER INFORMATION: Write or call the
Malcolm Baldrige National Quality Award Office
A537 Administration Building, NIST, Gaithersburg,
Md. 20899-0001, (301) 975-2036, email:
oqp@micf.nist.gov (via Internet).
A list of the winning companies from 1988
to 1996 follows.
October 1996
�MALCOLM BALDRIGE NATIONAL QUALITY
AWARD WINNERS
1996
1992
ADAC Laboratories
Milpitis, Ca!if. (manufacturing)
AT&T Network Systems Group/
Transmission Systems Business Unit ,
Morristown, N.J. (manufacturing)
Dana Commercial Credit Corporation
Toledo, Ohio (service)
Texas Instruments Inc.
Defense Systems & Electronics Group
Dallas, Texas (manufacturing)
Custom Research Inc.
Minneapolis, Minn. (small business)
AT&T Universal Card Services
]acksonsville, Fla. (service)
Trident Precision Manufacturing, Inc.
Webster, N.Y. (small business)
.
1995
The Ritz-Carlton Hotel Co .
Atlanta, Ga. (service)
Arrristrong World Industries' Building
Products Operation
Lancaster, Pa. (manufacturing)
Granite Rock Co.
Watsonville, Calif. (small business)
Corning Telecommunications Products Division
Corning, N.Y. (manufacturing)
1991
Solectron Corp.
Milpitas, Calif. (manufacturing)
1994
AT&T Consumer Communications Services
Basking Ridge, N.J. (service)
GTE Directories Corp.
Dallas/Ft. Worth, Texas (service)
Wainwright Industries Inc.
St. Peters, Mo. (small business)
Zytec Corp.
Eden Prairie, Minn. (manufacturing)
Marlow Industries
Dallas, Texas (small business)
1990
Cadillac Motor Car Division
Detroit, Mich. (manufacturing)
1993
Eastman Chemical Co.
Kingsport, Tenn. (manufacturing)
Ames Rubber Corp.
Hamburg, N.J. (small business)
IBM Rochester
Rochester, Minn. (manufacturing)
Federal Express Corp.
Memphis, Tenn. (service)
Wallace Co. Inc.
Houston, Texas (small business)
October 1996
�1989
Milliken & Company
Spartanburg, S.C. (manufacturing)
Xerox Corp.
Business Products and Systems
Rochester, N.Y. (manufacturing)
1988
Motorola Inc.
Schaumburg, Ill. (manufacturing)
Commercial Nuclear Fuel Division
of Westinghouse Electric Corp.
Pittsburgh, ''Pa. (manufacturing)
Globe Metallurgical Inc.
Beverly, Ohio (small business)
October 1996
�----
-
---
----
--
Malcolm Baldrige National Quality Award
ACHIEVING THE GOAL
The Malcolm Baldrige National Quality Award was
established by Congress in 1987 to promote
quality awareness, to recognize quality
achievements of U.S. companies and to publicize
successful quality strategies. The criteria for the
award have evolved to represent a general
performance and business excellence model.
•
Private-sector reviews and surveys are showing
that the award is having a profound effect on
shaping how people and organizations operate and
work. For example, a recent report on the Baldrige
Award program by the Counal on Competitiveness
states, •More than any other program, the Baldrige
Quality Award Is responsible for making quarrty a
national priority and disseminating best practices
across the United States:
•
Baldrige-Like Award Programs Growing
Around the World: Nationwide, interest in
the Baldrige model is growing steadily. In
1991, fewer than 10 state and local quality
awards existed. Now, more than 40 states
have or are establishing award programs.
Most are modeled after the Baldrige Award.
For many companies, these award programs
are •proving grQUnds," helping them to better
understand quality management before they
consider an application for the national
Baldrige Award. In 1991, state programs
received 110 applications: in 1995 that ·
number climbed to over 575, about a 25
percent increase over 1994's 428 applications.
High Interest In Not-for-Profits: Interest also Is
increasing in organizations other than for-profit
businesses. Working with experts from health
care and education organizations, NIST tailored
the Baldrige Award criteria and framework for
these sectors and launched a pilot application
program in 1995. Forty-six health care and 19
education organizations submitted applications.
NIST distributed over 20,000 copies of the
criteria for the pilot programs.
Since federal funding to support the pilots for
these two sectors is not included in the fiscal
·. year 1996 NIST appropriation proposed by
Congress; they have been discontinued.
However, volunteer experts from these two
communities are serving on the board of
private-sector examiners that evaluates the
business applications. In addition, NIST will
continue to work with the health care and
education communities to establish a base 'of
long-term, private-sector funding to support
an award program.
•
Baldrige Award Criteria Are a Roadmap to
. Quality: The Baldrige Award criteria are used
by thousands of organizations as a roadmap to
help them implement quarlty management and
improve their competitiveness. A report from the
U.S. General Accounting Office calls the
Baldrige Award criteria, "the most widely
accepted formal definition of what constitutes a
total quality management company.·
Just as the award programs have grown, so
too has the cadre of experts needed to review
apprJCations. In 1995, about 2,500 quarrty and
business experts from many different types of
American businesses, universities, government
at all levels, and other organizations
volunteered thousands of hours to examine
applications and visit companies. This
compares with about 340 in 1991.
Interest in the criteria at both the state and .
national levels remains steady. At the state
level, more than 78,000 copies of the criteria
were distributed last year, as compared to
4,600 in 1991. Overall, the states have
distributed about 240,000 copies. For the
national Baldrige Award, more than a million
copies have been sent out since 1988. In
1995 alone, over 150,000'copies were issued,
up from 130,000 in 1994.
Internationally, more than 25 quality awards
have been established, most within the past
several years. Many of them are based on the
Baldrige Award. Japan, home of the Deming
Prize, recently launched an award that more
closely resembles the U.S. Baldrige Award.
Since the Baldrige Award criteria are not
copyrighted, many copies have been made and
the criteria are OON included in many books. The
criteria also are available electronically and on
the Work:t Wide Web from NIST as well as other
sources.
United States Department of Commerce
Technology Administration-National Institute of Standards and Technology
·
Apnl1996
�/A
.,~
W.kolm BoJdri8e
National
Quality
:Award
.
THE FOUNDATION
The Malcolm Baldrige National Quality Improvement Act of
1987 was signed by President Reagan on August 20, 1987. The
Act establishes an annual U.S. National Quality Award. Its
purpose is to promote quality awareness and to publicize
successful quality strategies. The Secretary of Commerce and the
National Institute of Standards and Technology (formerly the
National Bureau of Standards) provide the leadership and
management, and the private sector provides the administration,
the examiners, oversight, and funding of the Award Program.
The Foundation for the Malcolm Baldrige National Quality
Award was created to provide the private sector a means of
accomplishing the following Award objectives: raise sufficient
funds to establish an endowment which, when supplemented by
fees from Award applicants, will permanently fund the Award
Program; oversee the investment of endowment funds; review
Award Program accomplishments and disburse required funds to
the National Institute of Standards and Technology; and review
the plan and approve associated funds requirements for
subsequent years to assure a successful Award Program.
Leaders of prominent companies have been selected to serve
as Foundation Trustees to assure the Foundation's objectives of
supporting the Award Program are accomplished. In addition, a
broad cross-section of companies across the United States are
contributing to the Foundation. Included are lists of the
Foundation's Trustees and Officers and companies providing
financial support to the Foundation.
FoUNDERS
PARTNERS
Adolph Coors Company
Air Products and Chemicals, Inc.
American Express Company
Anheuser-Busch Companies, Inc.
AT&T
Baxter International Inc.
Bechtel Group, Inc.
BeiiSouth Corporation
The Boeing Company
Caterpillar Inc.
Chrysler Corporation
Citicorp/Citibank
Corning Incorporated
Digital Equipment Corporation
The Dow Chemical Company
Eastman Kodak Company
E.I. du Pont de Nemours and
Company
Exxon Corporation
Federal Express Corporation
Florida Power & Light Company
Ford Motor Company
General Dynamics Corporation
General Electric Foundation
General Motors Corporation
The Goodyear Tire & Rubber
Company
Hewlett-Packard Company
Honeywell Inc.
IBM Corporation
Johnson & Johnson
Kraft, Inc.
Lockheed Corporation
Marriott Corporation
McDonnell Douglas Corporation
Metropolitan Life Insurance
Company
Milliken & Company
Motorola, Inc.
Northrop Corporation
NYNEX Corporation
The Procter & Gamble Company
RJR Nabisco, Inc.
Rockwell International
Ryder System, Inc.
Sears, Roebuck and Co.
Shell Oil Company
Texas Instruments Incorporated
TRW Foundation
United Technologies
USX Corporation
Westinghouse Electric Corporation
Xerox Corporation
BENEFACTORS
American Airlines, Inc.
Amoco Foundation, Inc.
Juran Foundation
Philip Crosby Associates
Square D Company
US WEST, Inc.
Whirlpool Corporation
ABB Combustion Engineering
Abbott Laboratories
BP America
Bristol-Myers Squibb Company
The Chase Manhattan Bank
Chemical Bank
Chevron
The Coca-Cola Foundation
Control Data Corporation
Cummins Engine Company
Deloitte & Touche
Dresser Foundation, Inc.
Emerson Electric Co.
GenCorp Foundation Inc.
Martin Marietta Corporation
Mobil Corporation
National Technological
University
Pacific Bell
J. C. Penney Company, Inc.
PPG Industries Foundation
Raytheon Company
Reynolds Metals Company
The Salomon Foundation Inc.
Texaco Inc.
Union Pacific Corporation
SPONSORS
J. S. Alberici Construction Co.
Amdahl Corporation
American President Companies, Ltd.
Avon Products Foundation, Inc.
BASF Corporation Chemical Division
Bergen Brunswig Corporation
Black & Decker
Compaq Computer Corporation
Cooper Industries, Inc.
Cray Research, Inc.
Delta Air Lines, Inc.
E-Systems, Inc.
Electronic Data Systems
Fisher Controls International, Inc.
FMC Corporation
The Gates Corporation
The Gillette Corporation
B. F. Goodrich
Goulds Pumps, Inc.
Halliburton Foundation
Hoechst Celanese Corporation
Inland Steel Industries, Inc.
Intel Corporation
Kaiser Aerospace & Electronics
KPMG Peat Marwick
The Merck Company Foundation
3M
Nashua Corporation
Norfolk Southern Foundation
Northeast Utilities
PACCAR
Parker Hannifin Corporation
�Pitney Bowes Inc.
Prime Computer, Inc.
Raychem Corporation
Rohr Industries, Inc.
Teledyne, Inc.
Tenneco
G. Wayne Clough
President
·
Georgia Institute ofT echnology
James L. Broadhead
Chairman & CEO
Florida Power & Light Company
Earnest W. Deavenp{Jrt
Chairman and CEO
Eastman Chemical Company·
M. Anthony Burns
Chairman, President & CEO
Ryder System, Inc.
OTHER
John J. Hudiburg
Former Chairman
Florida Power & Light Company
John L. Clendenin
Chairman & CEO
BeiiSouth Corporation
Vernon R. Loucks, Jr.
Chairman & CEO
Baxter International Inc.
Richard L. Scott
Chairman and CEO
Columbi8JHCA Healthcare
Corporation
Vance Coffman
Executive Vice President & COO
Lockheed Martin Corporation
Robert A. Lutz
President & COO
Chrysler Corporation
Jeffrey H. Coors
President
ACX Technologies, Incorporated
J.W. Marriott, Jr.
Chairman & President
Marriott International, Inc.
Earnest W. Deavenport
Chairman & CEO
Eastman Chemical Company
Arthur C. Martinez
Chairman & CEO
Sears, Roebuck and Company
Thomas J. Engibous
President & CEO
Texas Instruments Incorporated
Sanford N. McDonnell
Chairman Emeritus
McDonnell Douglas Corporation
George M.C. Fisher
Chairman, President & CEO
Eastman Kodak Company
Roger Milliken
Chairman & CEO
Milliken & Company
Donald V. Fites
Chairman & CEO
Caterpillar Inc.
Frank P. Popoff
Chairman of the Board
The Dow Chemical Company
Louis (Loti) V. Gerstner, Jr.
Chairman of the Board
IBM Corp<iration
JohnS. Reed
Chairman & CEO
Citicorp/Citibank
Robert E. Allen
Chairman & CEO
AT&T
Samir G. Gibara
Chairman, CEO & President
The Goodyear Tire & Rubber
Company
Ivan Seidenberg
President and Chief Operations Officer
NYNEX Corporation
Robert Baldridge
Past President
Roberts Mills, Inc.
Harvey Golub
Chairman & CEO
American Express Company
Donald R. Beall
Chairman & CEO
Rockwell International Corporation
Joseph T. Gorman
Chairman & CEO
TRW Inc.
Riley P. Bechtel
Chairman & CEO
Bechtel Group, Inc.
Michael H. Jordan
Chairman & CEO
Westinghouse Electric
Corporation
CoNTRIBUTORS
AAIM Education Center
American Supplier Institute
Baltimore Gas & Electric Company
Boatmen's Bancshares, Inc.
The Center for International
Business
The Conference Board
EBASCO Services
Fisher Scientific
George Washington University
Ingersoll-Rand Company
Knight-Ridder, Inc.
Merrill Lynch
Quality Resources Company
SCI Systems, Inc.
·
Springs Industries
SunBank
OFFICERS
President
Earnest W. Deavenport
Chairman & CEO
Eastman Chemical Company
Vice President
Vacant
Treasurer
Larry Unrein
AT&T Investment Management
Corp.
Secretary
Steven N; Frank
V.P., Assoc. Gen. Counsel & Sec.
McDonnell Douglas Corporation
DIRECTORS
Paul A. Allaire
Chairman & CEO
Xerox Corporation
Robert E. Allen
Chairman & CEO
AT&T
Robert Baldridge
Past President
Roberts Mills, Inc.
Frederick W. Smith
Chairman , President & CEO
Federal Express Corporation
Robert R. Waller
President and CEO
Mayo Foundation
Arnold R. Weber
Chancellor
Northwestern University
TRUSTEES
Roger G. Ackem1an
Chairman and CEO
Coming Incorporated
Paul A. Allaire
Chairman & CEO
Xerox Corporation
Jean-Francois Berthiaux
President
Exxon Chemical Company
Benjamin Bethell
Senior Vice President,
Human Resources
The Procter & Gamble Company
Harry P. Kamen
Chairman, President & CEO
Metropolitan Life Insurance
Company
John A. Krol
President & CEO
E.I. du Pont de Nemours and Company
·RalphS. Larsen
Chairman & CEO
Johnson & Johnson
Frank A. Shrontz
Chairman of the Board
The Boeing Company
Frederick W. Smith
Chairman, President & CEO
Federal Express Corporation
John F. Smith, Jr.
CEO & President
General Motors Corporation
Alex J. Trotman
Chairman, President & CEO
Ford Motor Company
Harold A. Wagner
Chairman, President & CEO
Air Products and Chemicals, Inc.
Kent Kresa
Chairman, President & CEO
Northrop Grumman Corporation
November, 1996
�Who Was Malcolm Baldrige and
Why Did They Name An Award
MterHim?
A Guide to the
Malcolm Baldrige National Quality Award
Who was Malcolm Baldrige?
Malcolm Baldrige was Secretary of
Commerce from 1981 until his death in a
rodeo accident in July 1987. Baldrige was
a proponent of quality management as a
key to this country's prosperity and longterm strength. He took a personal interest
in the quality improvement act that was
eventually named after him and helped
draft one of the early versions. In recognition of his contributions, Congress named
the award in his honor.
What is the Malcolm Baldrige National
Quality Award?
Congress established the award program
in 1987 to raise awareness about quality
management and to recognize U.S. companies that have successful quality management systems.
The award program focuses on quality as
an integral part of today's business management practices. The award's criteria are
widely accepted as the standard for. quality
excellence in business performance. They
are designed to help companies deliver
ever-improving value to customers ~d
improve overall company performance and
capabilities.
.,
For many companies that make quality a
part of doing business, the end result is
better employee relations, higher productivity, greater customer satisfaction,
increased market share, and improved
profitability. According to a recent report
by the Conference Board, a business
membership organization, "A majority of
large U.S. firms have used the criteria of
the Malcolm Baldrige National Quality
Award for self-improvem~nt, and the evidence suggests a long-term link between
use of the Baldrige criteria and improved
business performance."
The award is not given for specific products or services. 1\vo awards may be given
annually in each of three categories: manufacturing, service, and small business.
The U.S. Commerce Department's
National Institute of Standards and
Technology (NISD manages the award in
close cooperation with the private sector.
Which companies have won the award?
0
1996-ADAC Laboratories, Dana
Commerical Credit Corporation,
Custom Research Inc., and Trident
Precision Manufacturing, Inc.
0
1995-Armstrong World Industries'
Building Products Operation and
Corning Telecommunications
Products Division
0
1994--AT&T Consumer
Communications Services, G1E
Directories Corp., and Wainwright
Industries Inc.
o
1993-Eastman Chemical Co. and
Ames Rubber Corp.
0
1992-AT&T Network Systems
Group /Transmission Systems
Business Unit, Texas Instruments
Inc. Defense Systems & Electronics
Group, AT&T Universal Card ·
Services, The Ritz-Carlton Hotel Co.,
and Granite Rock Co.
0
1991--solectron Corp., Zytec Corp.,
and Marlow Industries
·
0
1990-Cadillac Motor Car Division,
IBM Rochester, Federal Express
Corp., and Wallace Co. Inc.
0
1989-Milliken & Company and
Xerox Corp. Business Products and
. Systems
�D
Human resource development and management-How does the company develop
the full potential of its work force?
1988-Motorola Inc., Commercial
Nuclear Fuel Division of
Westinghouse Electric Corp., and
Globe Metallurgical Inc.
Process management-How are products
and services designed? How are product
and service production and delivery
processes managed? How does the company assure that suppliers meet its performance requirements?
Why was the award established?
In the early and mid-1980s, many industry and government leaders saw that a
renewed emphasis on quality was no
longer an option for American companies,
but a necessity for doing business in an
ever-expanding, and more demanding,
competitive world market. But many
American businesses either didn't believe
quality mattered for them or did not know
where to begin. The Baldrige Award was
envisioned as a standard of excellence that
would help U.S. companies achieve worldclass quality.
Business results-How is the company
performing in key business areas and
what are its plans for improving?
Customer focus and satisfaction-Is
quality defined by the customer?
A company must provide the details needed to prove it has achieved world-class
quality in all seven areas. Facts, not flash,
are needed to make it through the tough
screening process.
How are winning companies selected?
Are there rigid requirements and pre-set
strategies that must be followed by
applicants?
Businesses located in the United States
may apply for the award. Those that do
are evaluated by an independent Board of
Examiners composed of primarily privatesector experts in quality. The examiners
evaluate each application and visit companies that pass an initial screening. Each
applicant receives a written summary of
strengths and areas for improvement in
quality management.
No. The Baldrige criteria are intended to
be a framework that companies can use to
build their own quality management
system.
The criteria incorporate the following key
areas of business performance: customer
satisfaction and retention; market share
and new market development; product
and service quality; fmancial indicators;
operational effectiveness and responsiveness; productivity; human resource performance and development; supplier performance and development; and public
responsibility and corporate citizenship.
What d.o the examiners look for?
The examiners evaluate a company's quality management system by looking for
achievements and improvements in seven
areas:
Leadership-Have the senior leaders
clearly defmed the company's quality values, goals, and ways to achieve the goals?
Are senior executives personally involved?
Does this involvement include communicating quality excellence to' groups outside
the company?
Many companies use the best ideas they
can find from other companies. But, in the
end, each business must tailor a system
that's right for it.
Does quality pay?
Information and analysis-Is the information used to guide the company's quality management system reliable, timely,
and accessible?
While quality management carmot guarantee success, the Baldrige Award winning
companies and many others believe that
investing in quality can lead to outstanding returns. For example:
Strategic planning-How does the company plan to strengthen its competitive
position? How are these plans integrated
into its overall business planning?
Ko Nishimura, president and chief executive officer of Solectron Corp., a 1991 winner, says, "We continue to use the
2
�characteristics shared by all of the winning companies. The Baldrige Award criteria encourage companies to be creative in
the way they achieve quality management
goals. These methods can include using
tools and techniques in a unique way or
putting a new twist on a method used
in another application or by another
business.
Malcolm Baldrige National Quality Award
criteria even after winning the award in
1991. The criteria have helped us build a
quality company and return substantial
value to our shareholders. From 1989
to 1994, sales have increased from $130
million to $1.46 billion, net profit has
increased from $4 million to $56 million.
Solectron's stock price has had an average
growth of 82 percent per year, and the
number of customer awards for quality
and service has increased from 14 to 63."
Can only U.S. companies win the award?
Any for-profit business located in the
United States or its territories may apply
for the award. A foreign-owned company
or subsidiary may apply but only if more
than 50 percent of its employees or 50
percent of its physical assets are located in
the United States or its territories.
According to a NIST study, the five whole
company Baldrige Award winnersEastman Chemical Co., Federal Express
Corp., Motorola Inc., Solectron Corp., and
Zytec Corp.-outperformed the Standard
& Poor's 500 from the time they won the
award (or the date they went public) to
Oct. 3, 1994, by 6.5 to 1.
Is it tougher for small companies to win?
In a study of 20 companies. the U.S.
General Accounting Office found that "in
nearly all cases, companies that used total
quality management practices achieved
better employee relations, higher productivity, greater customer satisfaction,
increased market share, and improved
profitability."
No. The award is meant to identify, recognize, and hold up as models companies
that are truly world-class and that can
compete successfully against the best in
the world. No one said that would be
easy-for large or small companies.
How much do companies spend trying to
win the award? How much is it worth to a
company?
Baldrige award winners have achieved
outstanding results in customer satisfaction, product and service quality, and
overall company performance.
While there is a fee to apply, the amount
of time and money each company spends
on preparing the application package
varies. A vice president of one of the small
business winners wrote the application at
home over a weekend. That was possible
because the company had for years been
tracking the necessary information. In
other, larger companies, teams of people
may spend weeks working on the
application.
Do the award criteria take into account a
·company's financial performance?
Yes. The criteria include many factors that
contribute to fmancial performance,
including business decisions and strategies that lead to better market performance, gains in market share, and customer retention and satisfaction.
Companies are urged to use financial
information, including profit trends, in
analyzing and reporting on improved performance and to look for the connection
between the two.
But, thousands of companies are using
the Baldrige Award criteria in their business practices not to win awards but to
provide value to their customers and
improve overall company performance
and capabilities. That's worth a lot to any
company.
Do applicants receive credit for being
creative in their approach to quality
management?
Finding innovative solutions to problems
is considered a hallmark of world-class
quality management and is one of the
3
�~----~-------------
-------------
- - - - - - - - - -
assure that their advertising is appropriate
in representing why they were selected.
Does the award amount to a product or service endorsement for the winners?
No. The award is given because a company has shown it has an outstanding
system for managing its product or service
and its people and responding to customers. As part of the evaluation, a company is asked to describe its design and
control system for assuring the quality of
its goods and services. It also must supply
information on quality improvement and
customer satisfaction efforts and results.
That does not mean that a winner's products or services are endorsed.
Are companies simply "chasing after" the
award and ignoring the lessons of quality
improvement?
The perception by some that winning the
award is the goal of U.S. companies is not
supported by the facts. Almost a million
copies of the award's criteria have been
distributed. The criteria are now widely
accepted as the standard for quality
excellence in business performance.
Thousands of organizations use the criteria as a handbook for assessing and
improving quality. Yet, only 593 applications for the award have been submitted.
Why are the Baldrige Award winners
asked to share their quality management
strategies?
The program has helped to stimulate an
amazing movement to improve quality
among U.S. organizations, including companies; academic institutions; and federal,
state, and local government agencies.
One of the main purposes of the award is
to pass on information about the winners'
quality programs that other companies
can tailor for their own needs.
Representatives from the winning companies have willingly shared their companies' quality strategiesand methods
with thousands of other firms.
One critic of the award says companies
should be nominated by customers. Would
that be a better alternative?
The Baldrige Award is unique because it
integrates many important quality concepts and themes into one comprehensive
standard. While customer satisfaction is a
cornerstone of the award, the other criteria also are necessary to have a worldclass quality management system.
To what extent are they asked to share
their strategies?
The managers of each winning company
must decide how much time and effort to
devote to activities such as speaking
engagements and tours of facilities. The
requirements of the award program are
minimal. Winners are asked to participate
in the award's annual conference, and several co-sponsored regional conferences, to
provide basic materials to those who
request it on their company's quality
strategies and methods, and to answer
news media inquiries.
By looking only at customer satisfaction
and not at the processes used to achieve
it, the award would become a "beauty"
contest. Customer nomination also would
raise many serious questions about statistical validity, as well as _the consistency of
information and criteria. Furthermore, if
companies did not go through the exercise
of self-examination to decide whether they
were prepared to apply for the award, the
main value of the award would be eliminated in favor of the "contest."
Do advertising and publicity diminish the
image and prestige of the award?
The law establishing the award states that
a winner "may publicize its receipt of such
award and use the award in its advertising." Promoting public and corporate
awareness of quality improvement is one
of the prime goals of the program and
advertising is one way to meet this goal.
Guidelines are available to help companies
Can a company hire a consultant to
help prepare answers for the Baldrige application?
Applicants for the award are asked to supply facts and data to substantiate their
claims concerning their business management practices. Consultants, including
4
�I
,
.r
IJ
applications other than those to which
they are assigned.
members of the Board of Examiners, may
provide services on quality management
issues as well as the Baldrige award
process. However, since there are no
"secret" answers or even right or wrong
answers to the Baldrige application, the
award cannot be won by hiring someone
to "fill in the blanks."
Other safeguards and checks also are
built into the four-step review process. For
example, during the first step, each application is evaluated independently by at
least four different examiners. By the time
the review is over. some applicants will
have gone through as much as 500 hours
of evaluation.
A company must show through facts and
data that it has a world-class business
management system in place and that it is
continually looking for ways to improve.
Does a decline in applications for the award
indicate a decline in interest about quality
and the Baldrige Award?
As a fmal check before recommending
'~ winners, members of the Board of
Examiners visit the more outstanding candidates for the award. During these site
visits. examiners interview employees and
review pertinent records and data. The
objective is to verify the information provided in the application and to answer
questions raised during the board's
review. A company that hired someone to
fill out its application would never make it
through this rigorous review.
The number of applicants for the Baldrige
Award is not an indicator of overall interest in quality management or the award
program. Interest continues to grow both
nationwide and internationally.
For example, participation in state and
local award programs has increased
steadily. In 1991, fewer than 10 states had
award programs. Now, more than 40 state
and local quality award programs are
operating in about 30 states. Most are
modeled after the Baldrige Award, and
many companies opt to compete for them
first before considering a Baldrige Award
application. In 1995, more than 450 organizations applied for state and local quality awards. Internationally, about 25 quality awards are in place. Most have been
established within the past several years,
and many are based on the Baldrige
Award. In Japan, home of the Deming
Prize, quality experts are considering
establishing an award that more closely
resembles the Baldrige Award.
Isn't it a conflict of interest for members of
the Board of Examiners to work as
consultants?
No. Members of the Board of Examiners
are experts in using and evaluating quality management techniques. They are in
demand as speakers, as information
resources, and as consultants. These
activities serve as a way to make more
people aware of quality management techniques and the Baldrige Award.
However, since the examiners and judges
on the board review applications for the
award and are involved in recommending
winners, precautions are taken to prevent
a conflict of interest or even the appearance of conflict. Rigorous rules are followed at every stage of the review.
Interest in the Baldrige Award program
also is picking up in other sectors of the
U.S. economy. NIST currently is conducting a pilot program for the health care and
education communities. Also, it is important to remember· the award program is
much more than a contest. While recognizing companies that have successful
quality management systems is the most
visible part of the program, its intent is
much broader. Equally important is the
award's role in raising awareness about
quality management by encouraging all ·
U.S. businesses and organizations to set
up quality improvement programs whether
Primarily, this means a.J.l members of the
board must abide by a code of ethics
requiring, among other things, that they
disclose all business affiliations that might
create a conflict. In such cases, they cannot review an application, comment on it,
or make any judgments that could affect
it. It is a violation of the code for board
members even to ask for information on
5
�;'
The purpose, content. and focus of the
Baldrige Award and ISO 9000 are very different. The Baldrige Award was created by
Congress in 1987 to enhance U.S. competitiveness. The award program promotes
quality awareness. recognizes quality
achievements of U.S. companies, and provides a vehicle for sharing successful quality strategies. The Baldrige Award criteria
focus on results and continuous improvement. They provide a framework for
designing, implementing, and assessing
a process for managing all business
operations.
they intend. or are even eligible. to apply for the
award.
Is the Baldrige Award program a success?
The Malcolm Baldrige National Quality
Award has been immensely successful in
achieving the goals established by
Congress.
For example, approximately 1 million
printed copies of the award's criteria,
which are widely accepted as the defmition
of world-class quality, have been distributed by NIST since the award's inception
in 1988. The publication also is produced-both in print and electronicallyand used extensively by companies and
other organizations.
ISO 9000 is a series of five international
standards published in 1987 by the
International Organization for
Standardization (ISO), Geneva.
Switzerland. Companies can use the standards to help determine what is needed to
maintain an efficient quality management
system. For example, the standards
describe the need for an effective quality
system. for ensuring that measuring and
testing equipment is calibrated regularly
and for maintaining an adequate recordkeeping system. ISO 9000 registration
determines whether a company complies
with its own quality system.
In addition. the award winners. NIST officials, and members of the Board of
Examiners have given thousands of presentations on the importance of quality
management and the award.
Will the Baldrige Award categories be
expanded to include education and health
care organizations?
NIST currently is working to extend the
benefits of the Baldrige Quality Award to
the health care and education communities-two sectors that are vital to the economic strength of the United States and
the well being of its citizens. Both the
health care and education communities
are anxious to apply the quality lessons
learned in industry to their own needs.
Overall, ISO 9000 registration covers less
than 10 percent of the Baldrige Award
criteria.
Is the Baldrige Award a U.s. version of
Japan's Deming award?
The basic purposes of both awards are the
same: to promote recognition of qual-ity
achievements and to raise awareness of
the importance and techniques of quality
management. However. the Baldrige
Award: .
With experts from health care and education, NIST has adapted the Baldrige criteria and framework for these sectors and
currently is conducting pilot application
programs. A decision about whether or not
to proceed with a full-scale award program
depends on many factors, including a successful trial, support from these sectors.
and long-term funding. The U.S.
Departments of Education and Health and
Human Services have been involved in
and support this effort. With the consent
of Congress. the Secretary of Commerce is
authorized to expand eligibility to other
categories.
How does the Baldrige Award differ from
ISO 9000?
6
0
0
focuses more on results and service,
0
provides special credits for innovative
approaches to quality.
0
includes a strong customer focus,
and
·
0
stresses the importance of sharing
information.
relies upon the involvement of many
different professional and trade
groups.
�li
For further information, reporters should
contact Jan Kosko, NIST Public and
Business Affairs, (301) 975-2767, e-mail
at janice.kosko@nist.gov. Others should
write or call the Malcolm Baldrige National
Quality Award Office, A537 Administration
Building, NIST, Gaithersburg, Md.
20899-0001, phone: (301) 975-2036; fax:
(301) 948-3716; or check the World Wide
Web site at http:/ /www.quality.nist.gov.
Why was NIST selected by Congress to man-
age the award and what is the role of the
American Society for Quality Control?
NIST is a non-regulatory agency of the
Commerce Department's Technology
Administration. Its mission is to promote
U.S. economic growth by working with
industry to develop and apply technology,
measurements, and standards. NIST was.
selected by Congress to design and manage the award program because of its role
in helping U.S. companies compete, its
world-renowned expertise in quality control and assurance, and its reputation as
an impartial third party.
The American Society for Qucility Control
(ASQC) assists NIST with the application
review process, preparation of award documents, publicity, and information transfer. ASQC is a professional, non-profit
association serving more than 80,000 individual and 700 corporate members in the
United States .and 62 other nations.
U.S. Department of Commerce
Technology Administration
National Institute of Standards and Technology
October 1996
7
�UNITED STATES DEPARTMENT OF
COMMERCE
OFFICE
OF THE
SECRETARY
EMBARGOED FOR RELEASE:
Oct. 16, 1996, 1 p.m. EDT
G 96-52
Contact: Jan Kosko
(301) 975-2767
jan ice.kosko@nist.gov
FOUR U.S. COMPANIES NAMED TODAY
AS WINNERS OF THE 1996 MALCOLM
BALDRIGE NATIONAL QUALITY AWARD
•,
President Clinton and Commerce Secretary Mickey Kantor today announced the
winners of the 1996 Malcolm Baldrige National Quality Award in recognition of their
achievements in quality and business performance. The winners are:
•
ADAC Laboratories, Milpitas, Calif. (manufacturing category);
•
Dana Commercial Credit Corporation, Toledo, Ohio (service category);
•
Custom Research Inc., Minneapolis. Minn. (small business category); and
•
Trident Precision Manufacturing Inc., Webster, N.Y. (small business category). ·
"The president and I are proud to name these four American companies as the
1996 winners of the Malcolm Baldrige National Quality Award," said Secretary Kantor.
"They represent a new breed of American business, grounded in traditional business
values--including putting customers first, trusting employees, building quality into
products antl services, and being responsible corporate citizens-but with a focus on
the future and a passion for continuous improvement. They are models for how people
and organizations will operate and work, now and well into the next century," said
Kantor.
The Malcolm Baldrige National Quality Award was established by Congress in
1987 to enhance U.S. competitiveness by promoting quality awareness, recognizing
quality achievements of U.S. companies and publicizing successful performance
strategies. In conjunction with private industry, the Commerce Department's National
Institute of Standards and Technology manages the award program. The award is not
given for specific products or services. Currently, two awards may be given annually in
each of three categories: manufacturing, service and small business. Since 1988, 28
companies have won the award.
-more-
�2
Following are brief descriptions ()f the 1996 Baldrige Award winners. Further
information is available by calling NIST Public and Business Affairs at (301) 975-2762 or
on the World Wide Web at http://www.quality.nistgov.
ADAC Laboratories
Founded in 1970, AOAC Laboratories designs, manufactures. markets and
supports products for healthcare customers in nuclear medicine, radiation therapy
planning and healthcare inform~tion systems. These products and services are sold to
hospitals, universities and clinics throughout the world. ADAC's 710 employees work
primarily at its headquarters in Milpitas, Calif.. and at facilities in Houston, Texas, and
Washington, Mo.
·
·
Contact: Kathy Call, Corporate Communications, Ph. (408) 321-9100
Dana Commercial Credit Corporation
Dana Commercial Credit Corporation, an operation of Dana Corporation,
provides leasing and financing services to a broad range of business customers in
selected market niches. Its primary offices are located in Toledo and Maumee, Ohio:
Troy, Mich.: Oakville, Ontario, Canada; and Weybridge, Surrey, United Kingdom.
Activities range from leveraged leases for power generation facilities and real estate
properties with values up to $150 million; to customized programs assisting vendormanufacturers in selling products such as in-store photo processing laboratories; and to
customized private label leasing programs that aid computer manufacturers, distributors
and dealers in selling systems that average $10,000 each. Dana Commercial Credit has
assets of approximately $1.5 billion, and the company employs 547 people.
Contact: Tricia Akins, Director. Corporate Communications, Ph. (810) 680-4341
Custom Research Inc.
CRI is a full-service national marketing research firm with clients in consumer.
business-to-business, services and medical markets. The company works with large
multinational corporations to design and conduct projects that provide information to
help make better business decisions. The firm is a privately owned corporation with
105 full-time professional staff. Clients are served from its headquarters in Minneapolis
and its offices in San Francisco and Ridgewood, N.J.
·
Contact: Beth Rounds, Senior Vice President, Ph. (612) 542-0882
Trident Precision Manufacturing Inc.
Trident is a privately .held contract manufacturer of precision sheet metal
components, electromechanical assemblies and custom products. The company
develops tooling and processes to manufacture components and assemblies designed
by its customers in a variety of industries. including office equipment. medical supply,
banking, computers and defense. Trident's 167 employees work at a single facility in
Webster, N.Y .. near Rochester.
Contact: Joseph Conchelos, Vice President of Quality, Ph. (716) 265-1009
-more-
�3
Criteria for the Baldrige Quality Award are accepted widely as the standard for
performance and business excellence. In addition to serving as the basis for applying
for the award, the criteria are used by thousands of organizations of all kinds for selfassessment. planning, training and other purposes. More than a million copies have
been distributed since the first edition in 1988.
To apply for the award, companies must submit details showing how they have
implemented an effective performance management system. An independent board of
business and quality experts evaluates the applications and looks for achievements and
improvements in seven areas: leadership, information and analysis, strategic planning,
human .resource development and management, process ·management, business
results, and customer focus and sa~isfaction.
Teams of examiners visit applicants that pass an initial screening to verify
information in the application and to clarify any issues or questions that came up during
the review. All applications are reviewed by at least eight examiners. Each applicant
receives a "feedback" report citing strengths and areas that need improvement in its
quality management program ..
President Clinton and Secretary Kantor are expected to present the awards to
the 1996 winners at a ceremony in Washington, D.C., later this year.
The four companies will present details of their quality improvement strategies
and results at the annual Quest for Excellence conference to be held Feb. 9-12, 1997,
at the Washington Hilton & Towers, Washington, D.C.
A non-regulatory agency of the Commerce Department's Technology
Administration, NIST promotes U.S. economic growth by working with industry to
develop and apply technology, measurements and standards. NIST was selected by
Congress to design and manage the award program because of its role in helping U.S.
companies compete, its world-renowned expertise in quality control and assurance, and
its reputation as an impartial third party.
- 30News and general information on NIST is available on the World Wide Web at
http://www.nist.gov and on the Baldrige Quality Award program at
http://www.quality.nist.gov.
�THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release:
October 16. 1996
PRESliJENT CLINTON ANNOUNCES WINNERS
OF THE 1996 BALDRIGE QUALITY AWARDS
The President today annoWlced the winners of the 1996 Malcolm Bo.ldrige
National Quality Award. Dana Commercial Credit Corporation of Toledo, Ohio; ADAC
Laboratories of Milpitas, California; Custom Research Inc. ofMinneapolis, Minnesota;
and Trident Precision Manufacturing Inc. of Webster, New York will be honored for
their achievements in quality management and business performance.
'•Quality is one of the keys to the continued competitive success of U.S. ·
businesses. The Malcolm Baldrige National Quality Award, which highlights customer
satisfaction, workforce empowerment and increased productivity, has come to
symbolize America's commitment to excellence," the President said ...This year's
Award winners join an ever;.&rowing and di~erse lamily ofcompani&;s showing the
world that quality pays."
For further information, contact Jan Kosko of the National institute of Standards
and Technology at (301) 975-2762.
-.30-
�l1/ZOI9d
12:01
FAX 414 Z7l 7073
ADAC LAroRATORIES
ADAC labonuode~~, a Silicon Valley-based maker Of
high-~.:eehnology healt.hcarl: prcductli, lnldaral a
management 'ynem based an quality IJ'LI!I\Qgement prlnclple5
a way to change the cultured the c.ompany afu:r
IUC.Ce~lly coming cut of a tuma1'CIU1ld ln the mid-19801.
This custumor-fccwed Syltem, ba&ed on the Malcolm
Baldrige Awanl crlrmia and ADAC\ "four revolutiON"
madc:l ha, helped l:nln5fonn the company Into a world leader
in mar¥ets for di.agna;tic imaglng and heah:hcare
111
Information ll'f!lt:cms.
The company's ·expertencc: teaches chac quality does
indeed ~Y- Between 1990 and 1995, 0\/enill efll.dency
Improvements resulted In an Increase In revenue per
empl<;yyee from $200,000 to $330,000, 65 percent better
thari its c:ompedto". Ar. the same time, ADAC Increased
its market s.Nre lt\ Its core business, nuclear medicine, to
lOur [imes rhar ci ia ne~st competitor in r.he United
States IUld became the market leader In Ewope, ruia, and
over
Larin Americll.
ABourADAC
Founded in 1970, ADAC LaOOra.torles desigru,
molt\utactl.J,.rr.ll, markets, and suppon:s produc£Jl for nuclear,
medicine imagillg, radiatlon-thempy planning. and m~
healrhcare i.n£ormarlon. Many of the rompmy's pnxlum Die
n:guht«i by the Food and Drug Administtatian, requiring
adherence en smct safety smndards. ADAC has lnsmllcd
11bcuc 5,000 ly&tema at II'IQJ:e than 2,500 ha;pimls, clinics, and
odler sites around the world. "'bese systems are ex~mcly
comr>lex:, comprising ~everal thou~ pa..m. the vnst tnlljority
purchased from supplien;. Sales of diagno£tic imaging ca.merm
IU\d
other twde11r medicine products ao:otJntcd for 85
pcrc:Cl'\t oi 1996 revenues tomli.a@ $1.40 mlllion. St.l!!adily
increasing, exporo; contribua:d 27 ~ent ro ~Sales.
Most of ADACs 710 employees an: based Bt iG corporarc
hca.dquamn and production fuclliry ln MilpitaS. Calif., or at
offices In Housron, Texas, headquarters of the comrony's
hcalt.'hc.are information ~~rem.~ htL<;In6'1. About JOO ADAC
'Jk srapblcG
employce5 WOlk eithr:r out of their hnma cr in call Aeld
offices In North Amc:rica md Ewopc.
David 1- Lowe i& chainnan d the board and dUef
executive offic:er. f'ror.u 1990, when l...oM: began U'l8l1llging
r.hc nuclear medicine divisiun, thtot..tgl1 1996, the ccmpany's
· ahare of
domatlc nuclear medicine market inaused
from 6 percent to 50 pcrt:c:ru: and lt beam.: the market
leader In Europe. ADAC execu.dvc:s cn:dlt the applicueion of
qual icy mana~mcnt principles and practices with.
slgnlflcanrly Improving the c:ompany'11 fln&.m;ial h.ealdt.
Now, ADAC i~ levc:nWng its continuci&Js..-impl'O'Icmcnt
capabiUdes lO compcr.c in new markctl5 that it has augeted
ro expand lm bo.»tlneiS.
·
the
CuSTOMERS CoME FIRST
ADACc whoJe-org=imrion apprOach
m ~ c:ustcmer
mtb6u:dan and
lmprov[ng qlllllity may
be lllustral:ed best by the
1993 novel decision to
the ~Uty
Coui1Cil, ll body
ccmpo&ed ol executives
ard managers and
elimina~
chmgc:d wldt overseeing
the cx:mpa.ny'a quality
management prcx.c&$·
.Ala raultafbcnchRU!ric.ing a Baldrlge-wlnnlng company, ADAC n:placal the
council with two weekly mecdngs chat IUe open to all
employees as well ws cwromera and suppllem. During these
meetings, numerous employees presenc data on key measw:es
of cusuxner satisfJ.Ction, quality, pral.ucctvlcy, and operational
and flnancial penonnanc.e.
The company's corporate planning pmces;-lm.own os
DASH-yields a strategic plan for the nexr rhree to Ave
years and an annual buslne.M pl!lll. Cmsiatent with ADACa
primary cure value, ''Cusromm c:anc flt3t," the DASH
proc~ beglru wlth a thorough, fact-based anai'Y3ls of
�11/21/96
16;39
FAX 414 273 7073
customer requlremen~-r.oday's and lOffiOrrow's. ThiB
analyais mina data gathered from a variety olsa.uas,
Including IUtvC)I3, lost-Older lnfcnnatt.cn, l.ntervicwa
conduc~ by cu:n:omcr-contDc:t c:mployee&, logs of IIICIVic.c
calls, and focus groups. Raults ate integrated with thor,e from
amlyses of c.ompc:ddlle ~. risb, company c:a~bUltles,
and supplier capabllltles.
Short- and long-tenn saucegles BtC dw:n distilled lnm the
"'it-alfcw," key busino.., driven that focus llild align plans and
c.ontinuous Improvement cffort.1 over the next year. In tum.
each depan:rnent
tram late.\ the 50'a tt:gic
directions and bwit'ICS5
inm apecUk:
requlrememJ III)d acdon
pla.ru;. lbaie are· the
basl.s for Mrn-''mosr
driV\!13
lmpomm[ rBI§b. ''or lop
priortcy lmprovemeno
I!ICt fur functional unltli
and b: tndividual
employee~ "These plans
are then a:muounicared
mall cmplcycei at the
formal DASH meec.
STAYING ON CoURSE
ADAC llUUUlgement recognJzes that~ decisions begin
wirh good lnformaeon. Tile company has made slgnlftc.am
mve.soru:nm \n claCJ. collectlon systems targeted w key ~
and actlvitir.s, IIUCh as i:IadJng design defec(S and cwmmer
calls fur support.
Most wodc~rs participate on highly empowered reams and
.all manufacruring employees an: memben of ;,elf-directed
'WO\"k team.&- All employees n::cdvt: aHinlng on c:wtcmer and
auppller modc:b, problem dving, and basic statistical
amti~i5. In L996, each received, on average, more than 70
houl"5 of cralnlng, m nearly thret: ti.rnc:l; the amount n:ccl~
l.o 1990.
At quanerly ''meaau:emenc summi~.·· representildve.s from
all departmena review the typeM of data oollc:cted ac.cording
to the company's dtree.criterla! whether me daca suppon lcey
bwl~ driven; addreas one of me "five c:Mls"-WQ6te,
defects, delays, acddenrs, or mi:nalres; or support objective
arutly:;i.s for itnpt"OYc::mcnL PIUticipanc al.:!o examine whether
new CJ.tr:gode~ of data ~ needed m guide contlnuow-
tmprovemem efforts.
&mclunarking is an integral element of ADAC's
&tand.aN.~
problem-solving process, kUld is u..'it:d regularly by
all continuous improvement teams to set perfonnanc.e goals
and ro gauge the effecciveness of io; management p!l:lCe..'ISe~.
J k Sr8I'h1cs
REsULTS
ADAC's quality system lw yielded h!ghJy leverogcd
improvcmenCl, helping the company to compete and ro
iru:rease rnarkec: shaft!. ADAC coml.scrndy brif\83 producCll ro
market faster chan irs ~r c.ompctia:Jr&. _Fer dm:e recent
pn:xluct rc~s ln I~ nuclear mc:dU;in.e l:winc.u, ADAC ~
at least etgh[ monr.hs:-and liS many as 21 momhs-ahcad
of Its nt:an:St c:ompetl[l)f. From. 19SU ro 1996, CXJtOpany
revenues have crt pled, and &he ponl.on of t:he revenues
BCCDUnrai fur by opemclng expm5es has dec~ ro 26
percent, from almost 40 pen:enL
Signiflcant gaiN in supplier performance abo have been
achieved. In 1992, ADAC lnstla.ncd a program to ccrdfy Lts
supplim. The company pun:ha.scs MXnC 5,000 d~t
t:ypc:s
of puu.. By the end of 1996, over SO percent of du: pans
received by ADAC came from certified liupplicn. Pu.Icluw:d
piii1li reji!Cu:d c.lurtug l!.:i:5eaubly !.ave deaeascd from alx:Juc 18
per camera ln 1993 m about klur last yr:M.
Efficiency gains have lowered the dlttct labor costli fer
producing e&ch. of itJ; imagtng c:arnenu., from an average of
alma~t $15 ,CXXl Q[
start o£ 199-\ [0 les& than $7,000 by the
me
raa:a,
end c:i 1996. Dc&:ct
II&~ at Anallnspecdon,
have fallen by al:o.lt 40 paccnt.
A5 a rerult of perftnmance gains and produce
improvc:menll!, the vo[wnc of IICt'Vic.e c.alla durlng chc first 30
days afu!r the insmllal:ion of ll new Imaging 1V3rem-an
especi.ally c.riticsl period when cwtomen~ are fi:lrming rheir
perceptions ot qUality-has been cut In half. A 1995
lndepcndent ~ mted che Gnt-mcnc:b mllabllity r:L ·
ADAC amei'IlS as best in the indusoy. If cust'omen do
enCIJUl\b:r serious problems, ho~r. they am expect 11
quick and effecdve response. for example, If a system breaks
duwn. ADAC technicians will have It b!u:k. in operation
within an average of 17 bows after receiving a custcm.er's
call, or !.eM than a dlird of the cime it took in 1990.
Ar. tbigned, ADAC& ~tness IY'rein is delivering
incrc:8SCI In c:wcaner sadsfucnon, a& ascert:al..ned tluuuih
surveys. Custxmer·retentlon rata ha.vt: il'l.CRIISCd £tom. 70
pen:cnr tn 1990 m 93 percem In 1995, and r.ervlc.e<Dru:rac.c
rmewall have men to 95 percent. from 85 peocent.ln
independent. annual .5UI'Veys of nearly z.cm clinks and
hospillll•, nuclear medicine custntru:n c.onglsrendy have raced
ADAC besc at ~reuing their needs, Md the gap between
ADAC aru:llts competi~ has been widening. In 1994 and
1995, ADAC was the only company m liCOt'e above five on
chi.5 particular indicator of eu&tomec satisfactlor\, which lu
me:a:A.&red on a scale of one tx> six. On aU eighc metLSW'eS of
5ervice satiSfaction-from speed of phone resparue to
preventi"e mainterumce-ADAC was the aole leader in fiv..:
catq;orics unci ded for chi! mp spot in rhe remaining one.~.
For more information, contact:
ADAC Laboratories
Baldrhle Office
540 Alder Drive Mllplta5, CA 95035
Telephone: (406) JZl-9100 Fax: (~08) 321-9686
�11/Zl/96
lG:J7
FAX 414 l73 7073
Jk sraplllcs
1996
AWARD WINNER
DANA CoMMERCIAL CREDIT
CORPORATION
•.
When It mmes to cU'immer sartsfuctlon, competlllX
perfcnnance, npemticnal effi..ctlveness, 1ll'lli wo~e
~bill ties, Dana Commcn::ial Credit Cotpomrlon always
wants IXIIcnow the~- A providerofkasing and financing
&ervlces to a bread range of canmert:ial cUStomers the Dana
Corporation wl:x;idiary lw developed a collecrion'af qualir:ylinked "liaXif18 pi'QCe.SilQ" that ~~.SSoeSS how the company Is
progressing in itB pwsuit of contlnuous imp-cvement goals &ec
AoourDCC
br 1111 key Brea& gf d1e business..
wlch a ~m maf~t ~ent.. ThC!IC include kveragcd
lea!!C! for power genemtion facllJtlo and n:al csmlll: propcrtie,
whll vaJua up to $150 mllllon, and lcaxa to help
Sloce 1992, when~ eml:nrbd on lll1 effixt oo improve
teamwork and on:;m12atiooal CQ\Ununlcu:.loru, the company
ha.s scon:d gaiN ln the quallry of io ped'onnanr;;c, OJstorner
"11[15facdcn, a.nd the pcrct::1.1ti!ge d. repeat bu:lin01. For
X<mple, r:x::C's large.sc pr:cduc.r: ~ the Caplllll Mrukets
Group (CMG), has closed all ci lm muldmllllon·dollar
mnsacr.lons on time for £he pill( five years. DeBler Producrs
Group- U.S. (DPG), the next~ group, has rcdw:c:d the
time it mm to approve a mmsacdon from abour seven houn;
ln 1992 tn an hcrur or kss in 1996.
Since 1994, CMG's o.~~r-~ .:ICX'JIC:& have
c:x~;CQjcd ~We on a fivc:•(D\nt IICBle, and in 1995, topped the
lndusrry average by almost two pJlntr.. DPG has scoro:!
~en cieht and nlru: on a 10-point ac:ale, or nearly three
points higher than rhe average fori~ industty.
Since 1980, when it wus clmmd with a $25 million
inVC31ln.Cnt by its corporate parent., r::xx; has grown ro
bc:.ccmc the 11th Wxcat among 2,0CJ:) US.lmsirq;.
comllB:I'ic.s, with t 995 tevawc1 of nearly $200 miUion and
~neal
omen of$1.5 billion. H~ in Toledo, Ohio.
DCC CCINisa ~ 3even major product gmu(B. each alJgned
commcrdal.::quipment rcacllas, manufac::twen, and
disuibu[D(3 sell eqWJ;UICilt 1:1Ulgint ln price from $4,000 Oil $3
mJllicn. Unique ~tiom IU'C DCC'$ spedallty, :iUCh ~
llmlllging t:N! short· term lease o£ miaa:omputers lor the
televtston ne~ ooved~ the 1994 Wlnt!!:r Olympk
games, provkiin2 full-service leasing of an•she photo
processing equt~t ro retail oudeta, and helpilli pu[ a
major gas processing faclllry ln the North Sea "on•llne."
DCC lemc c:onD"llC.ttl ulclmarely ore prepared for buslnelllleli
and arganlzadona chat k1!.5C equlprtKlllt. fac:llh:tes, or bulldir.g:s.
Hcwcvc:r, the <:Ompmy views Ansncial inrermedlarles, ~ as
lnvt"Soncnr banlccn and equip:nent rrumufucrun:m and
d~uibltDB, M ira primary cuscanas., ~ they are the major
:sCJUR:C cflea.sing rc:c.onunct:ldatioN and rt:ft:~
Mosr of OC'Cs 54 7 people an: located l.n Toledo and
Maumee, Ohio; Troy. Mich:.; Toronro: London; Paris; and
Zurich. Tht! c..xnpany'& continuous improvement proc:e~ is
led by the Division Opel"..Uing Commi.ttce, chaired by DCC
Chairman and Chief Executive: Officer Edward Shuln, and
Includes heads of the seven product group; 111ul major
3uppon: unlra.
ADDING VALUE FOR CusrOMERS
OCC aims 1:0 be the prefem:d financial servlce.s provider
in its ~kcted rnarkc.s. To achieve this objective, DCC is
Increasing cwtomer satisfaction thra.~gh rhc commitrnenr,
skills, and innovativencss of irs people rmd rhmugh its
quality Improvement system.
�11.'20/06
13:23
FAX 414 273 7073
Jk gra.phics
The sy5rem provides che saaregy, dlm:clon, Incentives,
toOls. and resources nec.essary lor condnoous lmprovemenc.,
b.Jt, by design, it Is cuatomitcd so each group CXII."\Centmt:e5 on
lhe particular requiremenm Qnd expecmrloru of custom~ to
its m;~t nld1e.
.IX:C's r;mu:e~lc plan lnc.egrare.s customer, opetacional,
people, supplier, and qualiry plans tnro seven guiding plans,
one fur each produce group. Product group Improvement
goals are t:ranslam:l lnro actlons chat address rhe company's
by bustness drivers: cwtnmer satisfuction, knowledgeable
people, quality processes, and prafir for rhc shareholder.
In all groups, ~~eden plaru are llnhd din:cdy ro anricipar.a:l
improvemerw; In m.eedng four key OJstomer requirements,
which an: detenni.ru:d by the Divi.aion ~crating Committee
but adapted to each marker. Cusr.omer-relaU!d .perfcr;mance
metrics ure csmhlished h:x- each prtX.e611 and each
·
imprrwem.ent project.
~003
educ.arlcmal opPJr:tunides, and an extensive 11:ward and
~lion 1Y3letn. Currently, all cxec:utlve pasldons and 95
percmr of su~rvlsory and management slou are fUled by
people who OOviiilCCd through the axnpany.
Tile company usc:s education and training to differentian:
tc;clf from iG I:Otnpetioon. ln 1992 it creaca:lme Education
Group to develop and ~ oounes In lrucrpel1iCllUll amnnu•
nlcal1on, quallcy, and marketing, as wdl as In technical areas
needed ID sauc:rure cusromtzed leme~. In alliiiOJ\'! dum 40
courses are offered_ Each oa::: peiTjO(l reoelved m avetage of
48 houn c:J fonnal c:ducatioo and aainillg In 1995, berrer
than chk:f contpeti!Imi and almou: three rimes the leaslngindwny ave~t~ge- The comrany alAn~ 100 percent
reimbursement for succe.nfully completed c.olkge coutSeS.
T ralni~ "lll1d al~AC~dCX\ needs and ~ffi:cdvent:liil are
n:viewd mcnchly. Can:rulactcrttian is paid to 6m.her
enhancing r.he !!ldlls c{ people, b:1cludlng eenior managcrs,
who have dln::cr canO!Cr whb OlSttm\CT$.
REsULTS
00::: Is continually alert for opponunldes lXI improve its
leasing prodw:tll and aervlce deliYety. A~ about lO per
pcr&an In 1995, cmplaya: Hku h.vc been an especially
productive ~ans h:lr Improving lJCC'a pedDrmance and !or
Measun:nu:nts are tmclced closely. Each month,IICO'n!CJU'ds
ace compiled to inform all r:::x::c p:aple of progre99 CD'N3Id
raGChing goals f« ClJICDR\er Q.ltl$foc.ti.on.,hwnan ~c, cuu:l
key proc:~ A mon~:hly ccmpetiTDr a:.orecard abo is
prepared ID oomF'l"l CCC performance on key c:waxner
sa~tlon mca~Nm~-lo 1995, OCX: pilotEd a CU6tomer
e>:pccm.don scorecacd,oompiled largely from lnfonnation
gatkred by c:roea-furu:tiorwl troosaction o:ams
work
dc:r;,cly wirh cuaaxner.~ in the des.lgn of leasing~
and ucw prodw:m:. Now dcployc:d company-wide, thia
$Ct:nc.atd. hdp! alert 00:: mdlangi.ng customer requirenu:ms
and indicateS how well the company i!l re~pondlog.
mac
co::'s ''SWDr' analyses compare comp-any performance
tO benchmatk me\lSUreS. Perfonnanc:e tn the key proc.r.ss areas
Ls flarned as 11 Strength or Weal.cru:ss compared to the
bt:nchmaclc, as an OppcxturUty, or as a Threat ro the busiN:ss.
"KNOWLEDGEABLE PEOPLE"
rx:.cs mission smtement and the Dana Scyle of
Management as.sen chat "people w:e our mosc lmpmant
asset." To promore mganizaticnal flexlblhry and
resp::oruiveness to cust:cmers,
ltmlt:ll che number of
management layers within ltoi groups ro
or fewer, and lcs
"just do It" policy empowerx rx:x::'s people co l!Cr on their
rxx:
nvt::
Ideas for improvement wtthou1: prior approvaJ_
Majoc emphwiis i.s placed on ~tainlng people and
culti·Jating company loyalty, occompli5hcd r.hrnugh"
"promor.e from wlmin policy,'' mentoring pt~rarru,
dlvel'lli(ylng and adding value to its product aia:ringa. Ahou.t
78 pen:.c:m ci all ideas were implemc:ntxd
1h.e company'B ptcgre35 tn improving perfnrmsnce and
increasing customer satt.sfacrlon ts mirrored by plN In
financial pedOnnance. Rlucs o( reOJm on equlty and 3S!IeDL
have increased mere than 45 paa:nt sinc:e 1991.
also
Cl:1:ldim ibl continuous lmprc:M!ment efforts wir:h helping to
lower borrowing CCII£.\, the campillly's large;t expense.
r:cc
~ llU'tll' oco.xu•t3 for H[ lc:mt 10 pcn:cnt of the Dana
Coqttadon's overall profir.abillw, 1UJd It waa the tim divbion
ro achieve the gold level c1 pcrfunnanc:e in the annual
a:mpertclon fer Dana's Quallt.y L.cadmhip Award, which Is
modeled after the Baldrl2e AWIU'd.
AJ5 it doa wlth its cwtomen and a~pplleu, r:x::x:: warlc:s
In pattnenhip wirh rhe conununidcs when: iCI offac:es are
locara:i- For cXllmplc,lc has provided computers co lcxal
8c:hoob and charirle~L In Toledo, when negodatlng tu
i.ncemi~ f'or relcxating Ita new headqunnen buUding, IXX.:
conunim;d du: equivalent cf45 p:nxnt of the n:suh:ant cax
savh~ co chc Toledo School"Boftn:l. ~a n:ault. the public
school systc:m will ~ccive 1.5 cimG& ~ mcnc:y from DCC
dum from a normalll\X distribution. The city ha.1 adopted
dits approoch for future tax incentive offurt~
For
mo~
jnfonnation, contact:
Dana Commercial Credle Co-rpomdon. Qualh:y Office
P.O. Bo:x 906
.
Toledo, Ohio 43697-0906
Tdephone: (4l9) 322-7500 Fax: (419) 322-7'580
E.-mail: dcc..quality@d~tna-com
�ll/21198
Jk arupb.lc&
FA1 414 273 7073
18:05
'j-z-z_-
h~
1996
AwARD WINNER
CuSTOM RF.sFARCH INC.
•.
Cusrom Research Inc. (CRI), a narional marketing
reseatdt Arm. l~rages Bn lncenslve focus on customer
stis~tion, a teBm-orlented v.oorldorce, and lnfornw..tion
t:r:dmology ed.VliiKA:I w pa:ttae old-mshloned ends:
individualized aervir.e and satisfied CWtcl'l\m. Since 1988,
when CRI edopo:d lm highly 6:xwcd cwtorru:t"''U-partncr
apptcach. cllent !!ltbf'acrion luu ruen from al11:ad.y high
levels. and gains in prodUt;tivlty, sales volume, and prot\1:3
haveouL~induaayuvc~
CRI's sa:crlng committee, compa;ed of two pannen and
I!!Xec:utive vice presldena, is. responsible for c:.rafting CRl'&
pia and 11tnitqlea lUll,{ views OJSo:;lll'\er loyalty 88 the finn'•
ma;t valuable busi.ne:&B uet. With all CRl employees as
twO
memben of cusrorner-focused. reams, a flat organimtional
ttuctutl! ~lp; make man.agen; immedlarely acc:I!I!IGible to
..mployc:cs, c:ustomet'l!1 :and auppllf!lli. Well-developed sysrems
are in place for ~namding custOmer expectndon&,
aoliciting cwmmer 6:ed.bru:k, Bnd manitcrlng each fia.cet of
canpany, u:mn, and individual petfonnance. Togt!ther, chC'lle
sys~ help 3Ct the course for
effixt:s to meet cr exceed
cuetomc.r ocpa:;tatloru that can :M:I'VC w s model tor odler
pro ft:&s lonal~~ervk:o fl trn:i.
au
CRI: A QuiCK LooK
Founded in 1974 :md ~in Minneapolis, privately
owned au condUt;tll&urvey marli:edng research for a wide
range of flrmli. The bulk of ia projects ~i&t client5 with new
produce development in c.:uruumer, medical, and 6eMce
bu.sinesse:L Revenues of more chan $21 million in 1996 plsce
CRI am~ the 40 largcat hrml in !he hlghly fragmented, $4
billion marketi.ng n::scarch iru:lwuy that u characceriu:d by
low entry cost:5 and tough c:ompctirioo. The: flrm cro!Jc:, 11
~putation h- qualiry f'or nt.Bking it one of only a handful of
companies that has remained independent while grawing
over d1e
pa3t cwo
decade-1.
Besides il'li Minneapolis headquarters. the fnm hns ·
electronically linked offices in San Frunciscn and du! New
York City area ali well w; t:Wo telephone interviewing centen.
It employ' 100 full-rime staff members, most of whom arc
cross-trained to create rhe flexibiliry needed (O
accommodate chc demands and schedule& of research
projects. Interviewing IICrvic::e~ assl.sc CRlin doi.ng the
· penonallnt:ervicwtng.
Oalslng In 1988 m CCII:ICenttal'l! its bwinoos an hlgh.
volume, repeat cu.smmen, CRI has reduced the number of
cllena ir ~erves. In 1995. CRI'a clicna numbem:l67, down
ftt:xn 138 diems In 1988; the number of larger dicna during
thl& period i.ncRased from 25 m .34. This emphasis oa latge
~tB has paid off with a doubllng in revert~, achieved
widwut lnc::reasing staff sb.e.
'SURPRISING AND DEUGHTING'
CuSTOMERS
au
ln re::enc yean..
senior management
alnu!d foe a new level of
ccnSbcency and
a:mpetence ln delivering
quality &etYic.es by
organalng, 11-ysretnaming,
and measuring qual try.
The fum distilled
ll!qU.I.rements for each
research project rD four
esse:ntia.ls; ac:cura rz' on
time, on budaet. IU'Id
meeting ar·cxceedlng
client expectRtloni.
Before the tlr.it survey da.tn ore collecud, ain:ria defining
these 1-equimn.cnbi ~determined in consuhnrlon wlrh
diems when CRl tl\B.l\8gCI!i and project tatm leaden
lnteTYkw dienc~-and. they do that elltc:n.\ivcly.
1be company was reorgani<.ed m rna lee maximum use of
custamer-fi:x:wed teatnll and tn merge: AUppnrr. def'ATTmcntB in
order w reduce cydl: time-a growing diem prioricy. All
CRJ a:auu have the &arne goal o("swprising and delighting"
their clients. au captures the cs.sence of thi3 seal in irs Star
icon. Quality Qt CRlls client driven-the center of the
Star-and is inrecrated into the company'& business sysa:m
a& ca prured by rhe ftve ley busirw:s drivers that are the poincs
af the &tar: pt!ople, proc.eues, rtquiremems, relatloruhips, :and
�11/:t0/98
11 :
o8
FAA -U 4 ;.n 3 7 0 7 3·
. resula ..With exll!llSive saff lnvolve.mtnt. rhe 5n:erlng
c.ommittz:e annually SCtli corp:JJ:Bte goals fOr~ axnpany.
which then tic tO the goala 6Jr each wodc. unir. Qr..nerty,
account tzams revic:w with. !he ~118 committee~.
bwinua plaru and n:sulm b-each client.
'Jlc sraptllcs
~OQJ
Worker cornmiancnt to cominuow improvanc:tu 1.5
rt:inforcd by a varic:ty of recognition prt:W!l~Ni bonuxs
!:rued on OJI"'Xll'3D::, learn lli'.:i individual achicvcmenc; md a
peer-reviewed sysrem for c::valuadng pemonal pcrl'onnancc,
CRll'\IU 11 company-wide education plan. used 10 allgn
indivLdual D'Bl.ning wlt:h bwine&SIIlll'i quality goals. Each
employee has a develoiXUcnt plan, which sets annual and
loQg;.cenn eoals for Ullp(\1\f~(J.'IC:l\t and helps ID idc:atify
training need:~. In 1996, ffi05( CRI employees avc:raacd over
134 hours of rralnlng. All new CRl people n:cclve company~
wide and job-speclik mdnlng duu ~ qwilicy and
5erVIcc l:isues. CRI bases c:ampany·wld.e aalnlng requlremcna
on client reedl:rad, per{ormancc reviews, 0\1'5 c:ducarlon
plan, au development plans. cm-lhe-job reviews,
interviewer monlroring, a[l!i employee surv~.s.
A TECHNOLOOY.-DRIVEN APPROACH
Meeting cu.sromu·spc:cific:d requiR:rn.cxm ck:pcncb on
efficient executlon ci "WeU-documenll!'d, measurable
~- Most pn::leasional $d'VIceS flmu; believe rhcir
.
r.ervices cannot be "5tandiU'Iiiu:d." Ac CRl. while each project
is rustom-dslgned, the pcca.sa for handling it flows t.hroueh
· essentially the same areps~ all projecm. CPJ developed
and hcavlly uses 11 project lmpleuu::n~adon manual for
lntaVIewing. Inremal"project quallty ll!'CII.P" reporc~
completed for every swdy track errors ln any so:p d r.he
project flow. au measures the aa:utaq of results aOO the
qualiry of peaonalan.d telephone lnb!t'Viewing. For example,
over the last aeveral yean, ratings Cor interviewers show
sustained a~ quality liCOl'ft c:L approximately 95 points
out of 100, up ~loan 8J poina In 1990.
Clicnrs have ample opp:nunicy to advbc and c:ridquc:
CIU. A~: the coo of OIC11 proja;t, dlcntli an= .swvcycd to
JOlicic an overall sadsfocdon rating l:rase:l on the: cusromc:o'
expoctBdona. Eac:h month the roula of the cllenc h:cdbad:
are st.munarbcd and dlsutbuted to all smff mc:mbcrs.
Internally, end-of-project evaluacl.ons also arc cunduc~ lOr
CRI suppxt reams and key su:ppllets. Personal ino:rviewl.ng
services, for example, arc evalwu:al. on performance ond
conrril:ure ideas for improving their quaUcy.
PEOPLE MAKE THE DIFFERENCE
CRluses a "high tech~hith ~uch" appmach ro snt~(ying
customers. On the "high touch" 5\de, CR1 wes irs flat
organlm.tional struCture and rc::latlvcly :~mall siz.c ro ~
thnc information flows freely wilhin chc wmpany. Ju.sc a:;
lmpon:andy, !hey view continuous improvement as p;trt of
lheir jobi. Smff members are SUNeyed ann.u.ally, giving au
scni£>r manRgers specific: feedback., lndwling dat.a on theh·
own performance a& viewed by CRI-ers.
'The "high n:ch• c:orntDlertt tD CIU'a buslnt:ai Is reflected
by ID alertiU55 to a:clmoloa;c.al opporwnlda to lmprovc: Ia
petbmance or to devise new Rrvtces dw: respond r:o
cW(I)Itl.er nttds. uManaglng work. dutJudt mchnclogy-ddven
pmc.csses" is one ofClU's key business drtven. CRiled. Cor
example, in r:hc: use of CDm(:l.l~rs ID 115!51&t b\ telephone
intetvlewing, dam oollcc.don, and analysb. Software enables
ClU co u.se technology ro lntegrute aU stases of a projecc
produce a questionnaire fix cnmpurer·BS51stedlna:rvfewlng,
conaol the sampling alld IIUccdialittg lOr lnttrvlewirlg, edit
and chen mbul:.ta!! rhe IUlS\1/eft from the que:ttlannaJ.res,
display rhem in mbular format. and gencmte report-1'elldy
~abies fix the final ~port and presentation. Computer.
technology has reduced cyele time fOe just one of these 5te(11
-Clhubrlng dam-from two W\leld to a single day.
cru
views 101 major scftwan: 5Uppller B:l Q k.ey paitner.
The ~ot,g..,ta.ndlng relationship ex~ ro annual planning
~ons during whk:h CRl shares ltx eaa1s and !he twO rllltLS
derermlne how the 60ttware rnaker can contrlb.la: rn meeting
the goals.
Tlu:se and otb.er qualh:y-promoting.acdoos-lncluding an
unccncllt!onal oaNfuction guarantee-aim _to build client
confidence and l.oyalty, whk:h, ln twn, genemte a wrl.ety o(
bwi.ness bcnefil3. Since 1988, fcedbe.dc f'tom dienf!! on each
of Its projeca shoWI su:adtly Improved overall project
cru
Is now ''meeting or excea1lng'' cliena'
perfonrumce.
expecau.lons on 97 percent o( ib projec:a, Seventy pcn:c::nt of
Its clients say the compony exc:.eeds expccca~ CRI is taa:d
by 92 perccm of Its c licncs as ''betn:r £han competition" on
rhe key dim~nslon "overalllc::vel o( service."
For more information, contact:
Cust.om Research Inc.
10301 Wayzata Boulr:vllrd, P.O. Box 26695
Minneapol1.5, MN 55426
Telephone: (612) S-42-0882 Fax: (612) 541~835
E-mall: custom@reseQrch.c.om
�l.l/ 1.9196
00:53
FA.! H4 27J 70·73
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1996
AwARD WINNER
TRIDENT PREciSION
MANUFACIURING INC.
'SATISFYING CUSTOMERS ... t
•.
As large companies cull the ranks of l:h.eir suppliers and
demand more from those that liWVivc the cut~ Trident
Precision Manufacturing lnc. i.s being PJShed to Improve
contlnutJU5Ly by liS cusromerR, by ibl competitnra, and,
especially, by irs own worker&. From 1991 r.hrcRJgh 1995,
employees at tlu! Webster, N.Y., fim1 submitted moce tholn
5,000 process-improvement rec:ummendatiotu-ol:out 125
Tnumthas e~IDbllshcd ..quaUtY Mla basl.c: Wstne&s plan· co
accamplish ahn· arullong-r:enn gcsls for each of Ita flve lcey
l:wines; dovm: cusb:xner satlsfuction. employee sat:Maaiau.
shan:holder value, opemttonal perlomume%, and wpplic:r
partnership. All goals, however, ccnt:ribJte to achieving
Trident'!: ~ing aim ci total C:USIXJmet' lllltis6sa:tion. Each
Improvement project begins with a thoroush analysis cihow
ID meet or c:x.c.eed cuatomer cequiremenm In four critical 9l'Cal:
qualicy, c.a;t1 deliYety, and &erVlce.
every month-and management baa implemented 97
percent of c:ho:sc: ickaa.
Metrta are designed co
ensure !hat progress rowacl
d\e c;usaxoec-nug.:ted
Over tbat Ave-year Spw:l, Trident mode signifJCant g~~lns
in many k.cy performance areas, including producdvlty and
· efficien<;y, cusoomer ml'isft~Ctian, sales, and ptoAmhllity. Sales
'ler employoee jumped Z9 percent, time apcnt on n:wcrk of
tonconfonnlng products decreased nearly 90 pen:.ent,
c:u5rcmer complain Ill fell 80 percent, and nilr.S of return on
BflSets consi.srently exceeded Industry averages. In 1995,
Tric.knt'$ five major cusr.omers rua:d the qual icy of me
supplier's products o..c 99.8 percent or bett2r. 1be 17-year-old
OOtTIFXlnY has nc:vc:c lose a clJiltomer to a competll'OC.
tmproyemencs can be
ev~tluated. 1he ooanpany's
dam-collecdon aysrem
provides all pen;annel with
8 Currtt\1: record of the
ccm.prmy'a progress toward
liS goals. Pony·five
networked axnputers-
recendy lnctt:asc:d from 18
at the requesr of
ABour TRIDENT
Founded In 1979, privmly held Trident manufactures
precision &heet meml component~, electm-mechanlcal
assemblies, and OJitom prod.uctl, tl\03tly In the office·
equipment, medical-supply, computer, and defen&e Industries.
It haa grown frotu a three-per&en operation to an employer
167 people, oc.cupylng a modem, 83,000-6qua~-foot: filciliry.
In 1995, revenues totaled $14.5 million. Well esmbl!shed as a
local supplier, Trldc:nc iB now di ...en;ifying to sctve regional
and intcmational mark c. &lie company owner Nicholas
jusk.iw is Trident's chief e:xccudve officer and prestc.Jenc.In
ur
1988, under Juskiw'a
leadc~:Bbip,
the compuny's Senior
Executive Team devised and launched "Excdleru:e in
Motion," a srracegy designed co sha.rpc:n Trident's fOcus on itli
custotncl'll a.nd to ln.:scill n commh:mcnc ro condnuoun
impmvcmcnt throughout the organization.
employees-make this
lnfonnatlan readily
accessible. ltrfomwnce data also ua revlewed daily in each
depon:m.cnc and weeldy by the Senior Executive Team. Once
cadl ((lC(lch. thit team aggregata d1c: data fer the enti£C
com?U'v !Ind. rcporu on progreslliDWGtd goals set for t:ISCh of
rhe five: key bubine.ss drive~
Beyond I:T9cldng irs operational and fmandal
perfonnance, Triden[ alKO analyzes data Q)tlecred £rom a
vBriecy of other internal and extflmalliOUtt:eS. These Include
semi-annual surveys of customer~~, suppliers, and employees;
beru:.hmBLic:ing ~tudies; di.sc:US~~ions with cusiDmel:ll; employee
forultl5; market repocts; quarterly quality auditS; and an
tndependendy conducted annual asse&.~mm.t of the
COI1lf"dny's c:ornpecicive position wichln ib! industry.
Regular con met with c:wr.omers and supplier.~ Is Rn
t!&Senrial elemenc ofTrldc:m's c.tu11liry smtte&:V. Senior
cxecudve.oi meec rwlce a year wlch repn:.srncati Ve3 of each
cusmmer company far in-depd\ dlscus.~loru on Trident'!
�u ~ : fi ii
F..U. 41 4 ;;. 7 l
1o1 J
Jk
perfOrmance as a supplier, while 41 customer-o:>ntnct
personnel ~met with d\eSe flmu on a daily basls.
Custcm.et11 1 811 well as key supplielli, also p:urlcipace In
ContinuQW lnvolvc:mcnt Mcedngs, iniciared by T rldc:nr ro
gain full unde[5tanding of a c.usf.OO\er's new or modlfll!d
?roduct de!ign. Dlrcc.t fecdbaclc fl~ real and potential
problems chat can be ~~Ctd upon lll\llleCUately, and It alcrtll
Tridcnc ro clwlglng c.usaxner rcquin:menai tluu can be
addressed ln shcn:~and lang~l"lltlgl: planning. Raponding tD
fi.li:UCC n:qufremmlli idc:ntifled through such cllicUM{oru,
ror
e.JC.amp)e, Tridenc roc.ently till~ ia goal for ~wrlng~
p~ reliability Dl ,.level significantly more strlngt:nt !han
now spedfted by lei mosc demanding cwmme~
BefOre bidding
on a projec;c,
Trident alao wcrics
with proe;pecdvc
c:usr:omen; to
~ru.pll1Cil
~003
Organiud lmo funcr:ianal deparanencal a:ams. employ.:es
"own" cpedfk: ~and are given respmsl.billty for
identifying problems and opporturiitle fOr improvement.
To foster Innovation, employees have dtc authority to modify
!:heir pro:::as, using du:: compgny'• documeno:d prcx:.ess
Improvement procedure:, which focuse5 ar:tz::ntion on oonvaluc:-odded a.crivitic.s rhaccan be eliminated.
The a:Jtn{BilY also relies heavily on me conoibutloru of
cross-funcdonal teams, and lc encourages eanp~ to
diversify rheir work skills and abilldea. E(du.y percent of
Tridenr wodccrs ere IIHined In ar leasr cwo Job funcdons,
well on the way ro rhe 1998 goal of tOO percent.
To reinforce worb:r c.ommlunc:nc to conrinLIOU:'i
Improvement, the c.om.pany regularly ldcnowl~
oc:c:mplary pctfcnna.nce. RcwanJ and i-«ognltion of
employees have climbed steadily, from just nine incidenb in
1988 m 1,201 in 1995.
eliminnte har.a.rdo..ls
maa:rial., chat may
be ~lfu:d ln the
ini rial deign llll.C!
that would pa9C
health or
environmental
rlsla. By policy,
THdenc will nor
submlra btd If the
m.atcrlal
requirements are
nor changed.
Trident also WCJ ~ to 1ttc:ngthen linb to
cu:;rom~ and suppllcn. Electronic d.aet inrercha~
capabilidc:s, fOr example, penult papcrle-'9 transacti.oru, while
tllc-cxchanJ:c capabUities enable cusi:Dmcm to I5Ctld chcir
designs elecnonlc:ally to Tridc:ru's a:xnpucc:r-aided design !I.Cld
manufucwrlOJZ equipment,
' ... FULHLLING EMPLOYEE
ExPECTATIONS'
Top management cakca the lead in planning, ~~Crting
Improvement priori do, and ~~maric.ally ~vtewtng progres.s
[award quality gcol:J, but executives and managel:'9 a~ their
pclmary role a& facilitari~ the tran&focmarian ro a continuow.
lmprovemem culture. Workers, the company bdic:Vc:s, arc
rhe "source and founJatlon (or quality leadcohip and
cctnt:Jeddveness.'' Conr.equendv. Tr!dcnr's human rcrourcc
sttacegles emphaslre ualnlng, lnvolvcnu::nt rhrough teams,
empowennent, arul reward and m:ognidon.
Since 1989, Trident has invested an avernye of 1.4 percent
of its (Xlymll on rmining and education In 1:001.! qtmliry as well
~ general educ:a.cion, job-related slcills, aru:l safety. This i.s an
c:spe<:ially large inve.1tment for a Gmall company and two to
three times <tbove the o.vcmge for all U.S. indusay.
REsULTS
[mprovcmeno Bee In motJon by Trident's CDCHl quality
perlOrmance gains that have ClliCIIded
throughout the organization and generated benefits raped by
cll5tomerli. Employtt blffi(l'Yf!r lw declined dnunadcally,
from 41 percent in 1988 w 5 pcrcalt in 1994 iU1d. 1995.
The cOmpany com:lar.c.s t:hCIC p.l&itivc: worldCrcc trends with
lnc:reasin2 productivity and riliiug 1~6 of Ql5tomer
strategy have cam.lyaed
sacl&filctfon. Sale& per employee rose &om $67 ,OCO in 1988 to
$116,000 In 1995.
Defect rate& have f.dlen consisrencly, so much so that
Trident rww offers a full gUilBtttee against ckti=cts in Its
c.us[orn producas. Machine' made for one of Trident's major
customers go directly ro that company'li dili[ribution cen~r
for ahlpplng. For the past rwo yeQJ'II, no defects have been
reporu:d In the:JC Tridf:nt-bullc machlnes. On the service
~ide, the company has grea.cly impto'ied Its on-time
delivery performance from 87 percent in 1990 to 99.94
percent In 1995.
1bese :and other l.mprovemems have enabled Trident ro
mainmin ibl Stall.IS aa b:y &upp\ier to major c:.usromera, even
after tb.a1.e campania; trimmed supplien by 65 rn 75 percent.
The company recognises thar:. because: of changing
comperirive conditions, major manufacrurers will expect
ever-better produciS and service! from their suppliers. Ttident
bellew:11 ic has rhe stra~gy, people, t:Pol.s, capabilides, and full
~nimtional commitment nece.sswy w keep the company
one step ahead of cusromers' rising expectations.
For more lnformatlon, contact:
Trid.ent Pa·eci.sion Manufacturing lnc..
734 St~lt Road
Webster, N.Y. l iSB0-9796
Telephone: (716) Z65-1009 Fax:(7l6) 265-2386
�United States Dep:utmcnl of Commcret!
Technolo!(y Admlnlstr.ulon--Natlon.allnstltute of Standards and Technology
I
eewewNil•lffWMWN
MALCOLM BALDRIGE NATIONAL QUALITY AWARD
me lY~Us, it was clear
to many industry and govemmenr leaders rhat a
renewed emphasis on quality was no longer an
option ~or American companies but a necessity for
dolng business In an ever growing world market.
As a result, !he Malcolm Baldrige National Quality
Award was established by Congress in 1987 to
promote quality awareness, to recognize quality
achievements of U.S. companies, and to publicize
successful quality strategies. The award is nat for
specific produces or services. Two awards may be
given a~ually in each of three categories: manu~
facluring, service, and .small business. In conjunction with the private sector, the National In.stilulc.::
of Standards and Technology developed and manages the award program.
WHAT IS THE AWARD? By
HOW ARE WINNING COMPANIES SELECTED?
Businesses located in the United Slates may apply
for Lhe awdrd. Those that do must undergo a rigorous evaluation by an independent board of examiners composed of private- and public-sector
experts in quality. The exarninadon includes ansire
visits for !hose passing an initial screening. Each
applicanr receives a written summary of strengths
and areas for improvement in quality managcmc::m.
WHAT ARE THE CRITERIA AND HOW ARE THEY
USED? Seven broad categories make up rhe criteria: lc:::adcr:;hip, information and aru~ly~is. ~lr...ttegic
planning, human resource development and management, process management, business results,
and customer focus and satisfaction. Applicants for
the award musr provide data ro shaw quality
A General Accounting Office report calls
the award
criteria "the most widely
accepted for.
mal definition of what constitutes a total quality
management company." Almost 1 million copies of
the criteria have been distributed. Thousands of
organizations use the criteria as a quality
improvement "road map." In addition, about
30 states have esrablish~r will establish soonsrate quality awards programs, most of which are
modeled after !he Baldrige Award.
DOES QUALITY PAY? While quality management
cannot guarantee success, the Baldrige award winning companies and many others believe that investing in quality can lead to outstanding retum.s,
both for individual companies and the country.
According to a recent report by the Conference
Board, a private business membership organizarion, "A majority of large U.S. Finns have used the
·criteria of the Malcolm Baldrige National Quality
Award for .self-improvc:mcnt, and the evidence suggests a long-tem1 link between use of the Baldrige
criteria and improved business performance."
FOR FURTHER INFORMATION: Write or call the
Malcolm Baldrige National Qualicy Award Office
AS37 Administration Building, NIST, Gaithersburg,
Md. 20899-0001, (301) 975-2036, email:
oqp@rnlcf.nist.gov (via Internet).
A lbt of the winning cumpanic.:~ from 1988
ro 1996 follows.
achicvcm<.:nt and quality improvcm<.:nt in each area.
October 1':196
�MALCOLM BALDRIGE NATIONAL QUALITY
-AWARD WINNERS
1996
1992
ADAC Laboratories
Milpitis, Ca!.if. (manufacturing)
AT&T Network Systems Group/
Transmission Sysrems Business Unir
Morristown, N.j. (manufacturing)
Dana Commercial Credit Corporation
Toledo, Ohio (service)
Texas lnsrrum~nts Inc.
Defense Sy~tems & EleCII'onics Group
Dallas, Texas (manufacturing)
Custom Research Inc.
Minneapolis, Minn. (small business)
AT&T Universal Card SeiVices
jacksonsville, Fla. (seiVice)
Trident Precision Manufacturing, Inc.
Webster, N.Y. (small business)
1995
The Ritz-Carlron Hotel Co.
Atlanta, Ga. (service)
Armstrong World Industries' Building
Products Operation
Lancaster, Pa. (manufacturing)
Granite Rock Co.
Watsonville, Calif. (small business)
Coming Telecommunications Products Division
Corning, N.Y. (manufacturing)
1994
AT&T Consumer Communications Services
Basking Ridge, N.J. (seiVice)
GTE Direcrories Corp.
Dallas/Ft. Worth, Texas (service)
Wainwright Industries Inc.
Sr. Peters, Mo. (small business)
1993
Eastman Chemical Co.
Kingsport, Tenn. (manufacruring)
Ames Rubber Corp.
Hamburg, N.J. (small business)
1991
Solecrron Corp.
Milpitas, Calif. (manufacturing)
Zytec Corp.
Eden Prairie, Minn. (manufacturing)
Marlow Industries
Dallas, Texas (small business)
1990
Cadillac Motor Car Division
Detroit, Mich. (manufacturing)
ltlM Rochester
RudH::.ster, Minn. (manufacruring)
Federal Express Corp.
Memphis, Tenn. (service)
Wallace Co. Iric.
Houston, Texas (small
Octnlx:r 1996
busine~s)
�Malcolm Baldrige National Quality Award
ACHIEVING THE GOAL
The Malcolm Baldrige National Quality AW-ard was ·
03tablished by·Congress ln.1987 to promote
quality awareness, t~ recognize quality
achievements of U.S. companies and to publicize
successful quality strategies. The crttena for the
award have evolved to represent a general
performance and business excellence modeL
•
Private-sector I"B'Mws and surveys are showing
that the award Is having a profound effect on
shaping how people and organizations operate and
~ For example, a recent report on the. Baldrige
Award program by the Counal on Competitiveness
states, "Mere than any other program, the Baldr\1e
Quality Award ls responsible for maldng quality a
natJonal prtortty and disseminating best practices
aoross Ule United States.·
•
Bald riga-Like Award Programs Growing
Around the Wortd: Nationwfde, Interest In
the Baldr1ge model Is gmwtng steadily. In
1991, fewer than 10 state and local quality
awards existed. NOON, more than 40 states
have or are establishing award programs.
Most are modeled after the Baldrige Award.
For many companies, these award programs
are ))roving grounds,· helping them to better
understand qualtty management before they
.consider an application for the national
Baldrige Award. In 1991, &tate programs
I"9C9Ned 110 applications; In 1995 that
number climbed to over 575, about a 25
percent
over 1994's 428 applications.
lnaease
Just as the award programs have grown, so
too ha5 the cadre of experts needed to review
appicatlons. In 1995, about 2,500 quality and
business experts frcm many cflfferent types of
Americ:an businesses, universities, government
at aU levels, and other OfQantzations
'ti'Olunteered thousands of hours to examine
appriCBtions and visit companies. This
compares with about 340 in 1991.
Internationally, more than 25 quality awards
have been established, most wtthin the past
several years. Many of them are based on the
Baldrige Award. Japan, home of the Deming
PriZe, recently launched an award that more
dosely resembles the U.S. Baldrige Award.
High Interest In Not-for-Profits: Interest also 18 ·
lnaeasing In organizations other than for-J)t'Ofit
businesses. WOOclng wtth ~from heaJth
care and education organizations, NIST tailored
the Bald~ Award aiteria and fralr1ev.ut for
these sectors and laundled a pnot application
program n 1995. Forty.&tx health care and 19
education cxganllations &UbmHtad applications.
NIST dls1J1buted over 20,000 ooples af 1he
a1teria for the pUot programs.
Since federal funding to support the pilots for
these two &edoos is not Included In the fiscal
year 1996 NIST appropriation proposed by
Congress, they have been discontinued.
However. volunteer experts from these two
communities are serving on the board of
p~r examiners that evaluates the
business appUcatlons. In addition. NIST will
conHnue to WOft( with the health care and ·
education communities to establish a base
long-tenn. private-sector funding to support
an award program.
of
•
Baldrige Award CritBI1a Are a Roadmap tD
Quality: The Baldrige Award a1terta are used
by thousands of ordantmtJons as a roadmap to
help them Implement quality management and
Improve their c:ompetitivenes. A report frtm the
U.S. General Acccunting Office call& the
Baldrige Award a1teria. "the most widely
ao:::epted formal definJtlon of v.taat consUtute& a
total quanty management company.•
Interest in the crtterta at both the &late and .
national levels remains steady. At 1t1e state
lewl, more than 78,000 copies of the crtterta
were distributed last year, as compared to
4,600 In 1991.. Overall, the states have
dlstrtbuted about 240,000 copies. For the
national Baldrige Award, more than a million
copies haw been sent out since 1988. In
1995 alone, over 150,000 copies were issued,
up from 130,000 in 1994.
Since the Baldrige Award criteria are not
CXlP'.r'flghted, many a,:,pies have beer! made and
the aiteria are 0011 lrduded in many books. The
a1terta aJso are available etectronically and on
the Wcw1d Wide Web from NIST as weU as other
sources_
United States Department of CommerCe
Technology Administration-National Institute of Sta"dards end Technology
.
April 1996
�THE FoUNDATION
The Malcolm Baldrige National Quality Improvement Act of
1987 WIIB signed by President Reagan on August 20, 1987. The
Act establishes an lllUI.Unl U.S. National QWllity Award. Its
purpose is to promote qwility . awareness and to publicize
S1lCCeli3ful quality strategies. The Secretary ofCorrunerce 1111d the
National Institute of Standard."> and Technology (fonnerly the
National Bureau of Standards) provide the leadership Wld
management, and the private sector provides the administration,
the examiners, oversight, and funding of the Award Program.
The Foundation for the Malcolm Baldrige National Quality
Award was created to provide the private S«::ctor a meWJs of
o.c;compli..:lhing the following Awlll"d objectives: raise sufficient
funds to establish an endowment which, when supplemented by
fer:s from Award applicants, will permanently fund the Award
Program; oversee the investment of endowment funds; review
Award Program ac:compl.i.shrnenbl and disburse required funds to
the Notional Institute of Standards nnd Technology~ ond nwiew
the piiUl lllld approve a."'80Ciated funds requirement~ for
subsequent years to assure a successful Award Program.
Leaders ur prominent companies lutve bcx:n selected to se!Ve
as Foundation Trustees to assure the Foundation'~ objectives of
supporting the Awlll"d Progrlllll!Ul: accomplished. In additioo, a
broad cross-section of companies across tl1e United States ore
contributing lo the F(lWldation. Included arc lists of the
Foundation's Trustees IUld Offic::ers and compWlics providing
financial support to the Foundation.
FouNDERS
PARTNERS
Adolph Coon Company
Air Prod~ta and Chcrnicala.lnc.
American Ex.pn:ss Company
Anl~u!cr-Busch Companies, Inc.
AT&T
Baxter In~mationallnc.
Hoohtel Group, Inc.
BoUSouth CoiJlOration
The Boeing Company
Caterpillar Inc.
Chrysler Corporation
CiticorpiCitibank
Corning lnoorpo111tcd
Digilal Equipmcnl Cvrpf.Jraliufl
The Dow Chemioal Comp11ny
Eastman Kodak Comrany
E.l. duPont de :Nemours and
Company
Exxon Corporation
Fo:lenol Express Corporatioll
Florida Power & Light Company
Ford Motor Company
Gcnernl Dynamics Corporation
General Electric Foundation
Gcnenll Motors CorP<>nuicm
The Goodyear Ti.-c &. Rubber
Company
Hcwlctt-Pllcluu'\.1 CumpBuy
Honeywell Inc.
ffiM Corporation
Johnson & Johnson
Kraft.lnc.
Lockheed CorponLtion
Marrioll Corpor-ation
McDonnell Douglas Corporation
Metropolitan Lite Insu[11nc.;
Company
Milliken & ComP"IlY
Motorola, 1.nc.
Northrop Corporation
NYNEX Corporation
The Procter & Gamble Company
R.JR Nabisco, lJ1e.
Rock.-=11 Jniqnlllional
Ryder System, Inc.
SetU"s, Roebuck and Co.
Shell Oil Company
TcX48 Jnstrumcnta lnoorporatcd
TRW Foundation
Uoilcd TcchoulogicA
1\BB Combustion Enginoc:ring
USX Corpo[111ion
Westinghouse Elcclric Corporation
Xerol( Corporation
Pu.citic Oell
J. C. Penney Co1nro.ny, .Inc.
PPG Industries Foundation
Raytheon Compo.ny
RcynuldH Me!aiH Company
'!"he S11lomon Found11tion fnc-..
Tcxu.culnc.
U11ion Pacific Coq>Orlllion
BENEFACTORS
American Airlines. Inc.
AmO(;O Foundation, Inc.
Junm .foumJu.livn
Philip Crosby AssociaiDs
SquareD Company
US WEST, Inc.
Whirlpool Corporation
Abboll Laboralorics
BP America
Oristni-Myers Squibb Company
The Chase Manhattan Bank
Chemical Ba.nlc
Chevron
The Coca.-Cola Foundation
Control D11ta Corporution
Cummins Engine Company
Dcloitte & T ouc:hc:
Dreliller Foundation, Inc.
Emerson Electric Cu.
OcuCuq• FouuJ~ttiou IJ'IO.
Martin Marietta Corporation
Mobil Corporation
No.[ional TechnologiCJII
Univen<ily
SPONSORS
1. S. J\Jbcrioi Construction Co.
Amdahl CoiJlOf&tion
L American President Com panics. Ltd.
Avon Products Foundation., Inc.
BASF. Corporation Chc:mi1011l Division
Bergc;n Bn.m~wis Cnrpnration
~lack & Decker
Compaq Computl:r Corporation
Cooper lndustrics. Inc.
Cray RC8Carch, Inc.
Della Air Lines, Inc.
Ti-~ysrems. Jnc.
Electronic Data Systems
Fisher Controls lnternationo.J, Inc.
FMC Corpontlion
The Gates Corporation
Tho Gillette Corporation
B. I'·. Gnodrich
GouJdg l'urnps, Inc.
Hallillurton Foundation
Hocch~l Celanese Corpollltion
Inlnnd Steel Industries, Inc.
Intel Corporation
Kaiser A~5pacc & Elcclronics
KPMG Peal M11rwick
The Merck Company Foundation
3M
Nashua C<JfPOrlllion
Norfolk Southern Foundation
Nortl'lelllll lJ[iJitic~
PACCAR
Parker Hannifin Corporation
�<toy
G. Wayne Clough
President
Georgia Institute of Ttthnology
I ames L. BroadhC!lll
Chairman & CEO
Florida Power&. Light Company
E.I. du Pont de Nemours and Company
Euncst W. l..le.a ven port
Chairman and CI\0
Ea.•lman Chemi<;al Company
M. Anthony Bums
Chain nan. President & C.I:!O
Ryder Systetn, Inc.
RalphS. I...anicn
Chllirman & C.t::O
Johnson & Johnson
John 1. Hudiburg
Former Chairman
Jilorida Power & Light Company
John L. Clendenin
Chairman & CI!O
BciiSouth Corporation
ChaifT'Nln & CEO
Baxter International Inc.
Richard J., Sc.ott
Chairman and CEO
ColurnbiaiHCA Hcalthcare
Vance Coffman
Executive V~ Prtllit.l~t &. COO
l.ockhccd Martin Corporation
RobertA
Jetfrcy H. Coors
J.W. MlliTiott. Jr.
Chairman & Prl:sidcnt
John A. Krol
President & CEO
Vernon
R. Loucks, Jr.
Lu~
Prel!idcnt & COO
Chrysler Corporation
Corporation
Frederick W. Smith
Chainnan • Presidc~t & CEO
Foocn~l Express Corporntion
Robert R. Waller
Prcsi&nt and CEO
Mayo Foundation
Amold R. Weber
Chancellor
Northwestern University
TRUSTEES
President
ACX Technologies. lncorpon~b:.d
Earnest W. Deawnport
Chairman &. Cl!O
Eutman Chemical Co;1mpany
Marriott lntcmational, lnc.
Arthur C. Martinez
Ch.airinan & CC:O
Sean<, Ruebuek and Company
Thom11s J. F.ngibous
President & CEO
T~s Instruments Incorporated
Sanford N. McDonnell
George M.C. Fisher
Roger Milliken
Chainnan & CEO
Milliken & Company
Chairman. President & CEO
Eastman Kodak Company
lJouald V. Fit~
Chainnnn & CEO
Cha.inn1111 Emeritus
McDonnell Douglae Corporation
Roger 0. Ackcrmafl
Chairman and CEO
Coming Incorporated
Catctpillsr Inc.
Frank P. Popoff
Chainnan of the Board
The Dow Chemical Company
Paul A. Allaire
Louis (Lou) V. Ocrlltner, Jr.
Chainnan of the Boftrd
fBM Corporation
JohnS. Reed
Chairman &. CEO
Citicorp/Citibank
Somir G. Gibara
Chainnan, CEO & President
The Goodyear Tire & Ruhhcr
Compa11y
·
Ivan Seidenberg
President and Chief Operations Officer
NYNHX Corporation
Ch.o.innan & CEO
Xerox CorporRtion
Robert E. Allen
Ch .. irmHn & CEO
AT&T
Robert Baldridge
Past President
Robert~
Mills. Inc.
Donald R. Beall
Chairman & CEO
R(.ll.;kwell International Corporation
Riley P. Bechtel
Chairman & CcU
ilechtel Oroup, Inc.
Jcxn-Fnmc.oiN
Bcrthiau~~>
President
1\xxon Chemical Company
Uenjamin UetiH'Il
Senior Vice Presitlcnt,
Humon Resource~
The l'roclcr &. Gamble Company
Harvey Golub
Chairm11n & CEO
F111nk A. Shronl:t.
Chairman oi the Board
The Boeing Com)lBilY
American Exprc611 Company
Frederic!.: W. Smith
Joseph T. Gorman
Chairman & CEO
TRW Inc.
Mich11cl H. Jurdun
Chairman&. CEO
We11tinghouse Elcohic
Corpuration
Harry P. Kamen
Chairman, President & CEO
Metropolitan T.ire Jn~uruncc
Company
Chairman, President & CEO
Fcdcr11l Express Corporation
John F. Smith, Jr.
CEO & Pn:sic.lcnt
G~cral Molors Corporation
Alex 1. Trotman
Chainnwt, President & CEO
Ford Motor Company
llnrulc.l A. w ..gner
Chairman, President & CEO
Air PmductM and ChcmicalN, Inc.
Kent Krc:lll
Chairman, }'resident & CEO
No11hrop Grumman Corporation
Nuvcmhcr, I'll)/'\
�..------------~--
- - -
PRESIDENT WILLIAM J. CLINTON
1996 MALCOLM BALDRIGE NATIONAL QUALITY AWARDS
WASHINGTON, DC
DECEMBER 6,1996
Acknowledgments: Secretary Kantor, Members of Congress, Baldrige Foundation,
Baldrige family members ...
This is the third year that I have had the privilege of honoring the Baldrige Quality Award
winners. This year's event has special meaning to me for several reasons. First, as in past years,
it recognizes those companies that stand as role models of excellence and good citizenship to the
rest of the nation and the world. And second, it was one of the favorite events of my good friend,
former Secretary Ron Brown. Ron's participation in last year's ceremony at the White House
was one of his last official duties before his untimely passing. He would be proud of the great job
Secretary Kantor is doing, and of the outstanding performance of this year's Baldrige award
wmners.
Let me begin by thanking our many private sector partners, including all 28 winning
companies, the examiners and the Baldrige Foundation for helping make corporate excellence a
national priority. For almost ten years now, this award program has been a remarkably successfu~lf
public/private partnership. And l am pleased that plans are underway to expand it by establishing
an award for the health care and education sectors. l hope the federal government wiJI do its
J.
1
share to make that effort a success.
~ ~ t'
~ a-•N
.
America's economy is strong and growing stronger every day. For the past four years,, ..
• · ha·
·, to create the conditions for strong private sector growth. And we have seen the results . / ' \
in
·
. ·. .,. low infla~ion, a rise in perso~~ome, and steadyjo~ growth. ~~ve also\..L.
.~ maAe-key-gmmn.n-recaptl:l·t:n:lg-giGbal-marketSnare, m growth of per capita gross domestic-- / "'- . ./
prodtrcra:ncl-inoustrial outputjr oday, ':"e have further evidence that our. approach is working.
[UNEMPLOYMENT ANNOUNCEMENT]_
(eo1uo dLJV1
-.
? tv[~.!,.;
""! )
J_·
\b~ ~ ~
.
~~,~
--:--1
~r. 8_r~7Al~~
~ ,{.<~
.
A substantial s.hare of the cred1t for tft~is improvement belongs w1th busmesses, hke those"
nnAJl . \ ~1ere to~ay, who are··moo+itlg-tlJ~·~hallenges of the 21st century with dedication to quality, bold
~
mnovat1ons and a renewed commitment to customers and employees.
.
·
'1
ADAC Laboratories' commitment to its customers has resulted in a phenomenal
turnaround. You have been able to triple your revenues in just three years. Maybe I should chat
later with the ADAC folks about how they managed that feat.
.,
·~\)?
· The secret to Dana Commercial Credit Corporation's success is its commitment to
customers, employees and the community. l applaud you for your "just do it" style of
~
management that empowers employees to be act on their ideas -- and for your financial support of .
the Toledo School Board.
Custom Research Corporation is proving that you don't have to be the biggest to be the
�.
best. Your creative use of computer technology to "surprise and delight" your clients 97 p<ercent
ofthe time is truly remarkable<
I applaud Trident Precision Manufacturing for your extraordinary investment in the
training and education of your employees .. And in this era of downsizing, I want to also commend
you for hiring people who had worked for larger companies that have downsized.
Satisfied customers. Involved, energized employees. A respect and commitment to the
communities in which they do business. An investment in technology. And an improved bottom
line. Those are the things all these Malcolm Baldrige award winners have in common. They have
each proven in their own way that social responsibility and corporate success are two sides ofthe
same coin. Their example is lighting the way to an even more prosperous future for America, and
we should all thank them.
Thank you.
<,
��
Dublin Core
The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/.
Title
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Terry Edmonds
Creator
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Office of Speechwriting
James (Terry) Edmonds
Date
A point or period of time associated with an event in the lifecycle of the resource
1995-2001
Is Part Of
A related resource in which the described resource is physically or logically included.
<a href="http://clinton.presidentiallibraries.us/items/show/36090" target="_blank">Collection Finding Aid</a>
<a href="https://catalog.archives.gov/id/7763294" target="_blank">National Archives Catalog Description</a>
Identifier
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2006-0462-F
Description
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Terry Edmonds worked as a speechwriter from 1995-2001. He became the Assistant to the President and Director of Speechwriting in 1999. His speechwriting focused on domestic topics such as race relations, veterans issues, education, paralympics, gun control, youth, and senior citizens. He also contributed to the President’s State of the Union speeches, radio addresses, commencement speeches, and special dinners and events. The records include speeches, letters, memorandum, schedules, reports, articles, and clippings.
Provenance
A statement of any changes in ownership and custody of the resource since its creation that are significant for its authenticity, integrity, and interpretation. The statement may include a description of any changes successive custodians made to the resource.
Clinton Presidential Records: White House Staff and Office Files
Publisher
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William J. Clinton Presidential Library & Museum
Extent
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635 folders in 52 boxes
Text
A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text.
Original Format
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Paper
Dublin Core
The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/.
Title
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Baldridge Award Ceremony [2]
Creator
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Office of Speechwriting
James (Terry) Edmonds
Identifier
An unambiguous reference to the resource within a given context
2006-0462-F
Is Part Of
A related resource in which the described resource is physically or logically included.
Box 34
<a href="http://www.clintonlibrary.gov/assets/Documents/Finding-Aids/2006/2006-0462-F.pdf" target="_blank">Collection Finding Aid</a>
<a href="https://catalog.archives.gov/id/7763294" target="_blank">National Archives Catalog Description</a>
Provenance
A statement of any changes in ownership and custody of the resource since its creation that are significant for its authenticity, integrity, and interpretation. The statement may include a description of any changes successive custodians made to the resource.
Clinton Presidential Records: White House Staff and Office Files
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William J. Clinton Presidential Library & Museum
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Adobe Acrobat Document
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Reproduction-Reference
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12/9/2014
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42-t-7763294-20060462F-034-014-2014
7763294