Going for the Baldrige Gold

Article

Naidish, Norman L.   (1992, ASQC)   Vision Management Associates, Augusta, NJ 07822

Annual Quality Congress, Nashville TN    Vol. 46    No. 0
QICID: 9922    May 1992    pp. 964-971
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Article Abstract

Although a focus on quality has almost obsessed American industry, many managers still underestimate the cost of poor quality. The Malcolm Baldrige National Quality Award criteria can serve as a method to educate managers and improve a company's quality.

First, management must understand the true costs of poor quality (up to 40% of gross sales). Next, cross functional teams analyze the company's current quality position. A written quality improvement plan, incorporated into a three-to-five year business plan, provides a structure for progress. This plan should include specific targets, ranked by priority. Quality Function Deployment (QFD) focuses attention on customer desires and satisfaction. Breaking out of traditional patterns, by comparison with other companies (benchmarking), removes barriers and draws attention to the team.

Following these steps can result in higher profits without an increased sales effort (i.e., you can reduce your costs via reducing poor quality by 20% or you can sell 20% more, with all the attendant sales expense). Productivity will improve. Appropriately charting and presenting information enlists active support throughout the company. Following the Baldrige Quality Award's criteria, while not an end in itself, can be a powerful and effective means to a quality end.

Keywords

Cost of quality (COQ),Juran, Joseph M.,Malcolm Baldrige National Quality Award (MBNQA),Quality improvement (QI),Total Quality Management (TQM),Vision Management Associates


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