Study Shows U.S. Benefits $25 Billion From Baldrige

A study conducted by two economics professors estimates the total cumulative benefits of the Malcolm Baldrige National Quality Award (MBNQA) to the U.S. economy at nearly $25 billion.

Albert N. Link of the University of North Carolina and John T. Scott of Dartmouth College also cite a benefit-to-cost ratio of 207:1 after determining total operational costs, including $119 million as the value of the time contributed by volunteer examiners.

To determine the benefits to the U.S. economy as a whole, Link and Scott examined data from a survey of sustaining (corporate) members of ASQ. They estimated the total benefits to ASQ members from using the Baldrige criteria to be $2.17 billion, for a benefit-to-cost ratio of 18:1.

The economists then extrapolated the ASQ data based on the assumption that other companies in the economy benefit to the same extent as ASQ member companies. From the program's inception in 1987 through 2000, 41 companies have received the award, 785 have applied, and thousands of copies of the criteria have been mailed.

The report includes detailed information on the data collection, statistical, measurement and extrapolation methodology used by its authors. A copy is available at www.nist.gov/director/prog-ofc/report01-3.pdf or by faxing a request to the National Institute of Standards and Technology's (NIST) public and business affairs office at 301-926-1630.

Quality Progress will summarize the report and its methodology in its April issue, which will have a cover theme of "How Quality Plays on Wall Street."

baldrigecrystallQuest for Excellence

The Baldrige National Quality Program's annual Quest for Excellence conference is scheduled for April 7 to 10 at the Marriott Wardman Park Hotel in Washington, DC. NIST, manager of the MBNQA, sponsors the event.

Quest for Excellence is the official conference of the MBNQA, where award winners share performance practices. The 2001 winners will be showcased at the April event.

For further information, visit www.quality.nist.gov. For a copy of the brochure with full conference information, e-mail your address to nqp@nist.gov.

Sponsors of the conference include ASQ and its affiliate, the Association for Quality and Participation, and the American Society for Training & Development.

No changes in criteria

NIST has announced there will be no revisions to the Baldrige criteria for 2002. Copies of the 2002 criteria can be obtained by calling 301-975-2036 or visiting www.quality.nist.gov.


trees/shadowsNIST Issues Resolutions For Small Manufacturers

The Manufacturing Extension Partnership of the National Institute of Standards and Technology says New Year's resolutions for small manufacturers should include the following:

  • Re-examine your marketing approach to determine growth opportunities.
  • Profile your best customers.
  • Invest in sales training and technology.
  • Get fresh ideas from an objective, outside view of your company.
  • Use lean business strategies to identify and eliminate waste and gain cost savings usually associated with larger companies.
  • Upgrade your network security.
  • Review your disaster plans.
  • Invest in employee training.
  • Take stock of what you measure, and why.
  • Listen to your employees about ways to improve the company.


Educational Organizations Show Increased Interest in Quality

Increasing interest in tools of quality among educational institutions is being demonstrated worldwide as schools are named winners of major quality awards.

As Quality Progress announced last month, the 2001 Malcolm Baldrige National Quality Award winners included three educational institutions. This marks the first time there have been Baldrige winners in the education category.

And when the European Foundation for Quality Management announced the winners of its European Quality Award 2001, St. Mary's College Northern Ireland in Londonderry won in the public sector category. Another school, City Technical College in Kinghurst, United Kingdom, was a finalist.

Other indications of education's interest in quality tools include the following:

  • In 2000, a certificate of merit went to Lawrence Heights Middle School, Toronto, in the Canada Award for Excellence competition.
  • The University of Wollongong Library received an Australian Business Excellence Award in 2000.
  • A United Kingdom governmental award, the Charter Mark for customer service, went to nearly 100 schools in 2000.
  • Alta School in Nacka received the 2001 Swedish Quality Award, marking the first time the Swedish Institute for Quality's award has gone to an educational institution.


Robert King Becomes New President of RAB

Robert H. King Jr. began in his new position as president of the Registrar Accreditation Board (RAB) on Jan. 2. He comes to RAB from Bayer Corp. in Pittsburgh where he was vice president, supply chain NAFTA.

During the first quarter of the year, King will work with Joseph R. Dunbeck, who will continue in his position as RAB's CEO until his retirement. At that time, King will also become CEO.


Diesel Fuel Blamed for Collapse Of 7 World Trade Center

Engineers studying the collapse of 7 World Trade Center (WTC), the 47-story building that stood across the street from the twin towers, believe thousands of gallons of diesel fuel stored in the building may have caused the intensely hot fires that led to the building's collapse.

The American Society of Civil Engineers and the Federal Emergency Management Administration asked engineers to examine the performance of buildings affected by the Sept. 11th attacks. Though it was quickly determined the main towers fell due to extreme heat and fires caused by burning jet fuel, the cause of building 7's collapse remained a mystery.

It now seems likely that fuel stored inside the building caused intense fires the steel columns were unable to withstand. Diesel fuel totaling almost 42,000 gallons was stored in and below the building to provide power for emergency generators.

Investigators are also evaluating the effects of falling debris that caused major structural damage. No other buildings the size of 7 WTC and treated with the same fireproofing materials have ever collapsed from fire.


Olga StriltschukFebQP

QuEST Forum Names New Executive Board

The Quality Excellence for Suppliers of Telecommunications (QuEST) Forum named its 2002 executive board at a January meeting.

The board of the nonprofit organization has 12 members: six representing service providers and six representing suppliers. Olga Striltschuk of Motorola is chair, and Don Pickens of BellSouth is vice chair.

Other board members are Karl-Heinz Augenstein, Alcatel; JoAnn Brumit, Karlee; Jerry Cates, Corning; Isabelle Courville, Bell Canada; Barry D'Amour, Nortel Networks; George Dowell, Verizon; Marty Lustig, Sprint; Masahide Sekiguchi, Fujitsu; Steve Welch, SBC; and Richard Woodruff, Belgacom.

The forum says its 2002 efforts are focused on providing collaboration aimed at developing quality improvements, increasing customer satisfaction, reducing supply chain cost and cycle time, and harmonizing industry standards, measurements and requirements.

For information about membership, call 414-765-8672, or e-mail jweitzer@asq.org.

BSI Survey Indicates Success From Standards Certification

A survey of its customers by BSI Inc. reveals business advantages from certification/registration to the ISO 9000 series of quality management standards. The survey responses included companies across North America, the United Kingdom and mainland Europe.

Respondents reported cost savings of up to 50% over two years, sales increases of up to 70% during six years of certification/registration and up to 6% fewer customer complaints every year of certification/registration.

For additional information, visit www.bsiamericas.com.


Congress OKs ANSI Amendment In Defense Authorization

The House and Senate approved the $343 billion Department of Defense authorization bill, which includes a federal employee standards participation amendment added by the Senate.

The amendment, supported by the American National Standards Institute (ANSI), protects the ability of federal government employees to attend and participate in standards development activities. It clarifies 1912 legislation prohibiting the government from paying expenses for attendance at meetings or conventions by saying the law doesn't apply when the employee is participating in agency related standards activities.

ANSI had conducted a survey showing that federal employees actively participate in more than 4,000 standards committees or activities.

To fight drug abuse in sports, the International Organization for Standardization, known as ISO, is in the process of developing the first international standard for doping control. The move to raise the status of the existing ISO doping protocol to that of a standard is designed to harmonize divergent doping control procedures both of countries and organizations.


The American Society for Testing and Materials (ASTM) is changing its name to ASTM International. ASTM says the change is being made to better reflect the increasing global application and use of ASTM standards. Along with the name change, ASTM International has redesigned its logo.


The International Organization for Standardization, known as ISO, has a new Web home page at www.iso.org. The site replaces the previous www.iso.ch, which refers to Switzerland where the organization is headquartered.


National Engineers Week is scheduled for Feb. 17-23. Activities include Introduce a Girl to Engineering Day and other activities to interest students in engineering as a career. ASQ is a society partner of the celebration. For additional information, go to www.eweek.org.

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