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Malcolm Baldridge Quality Awards 11/2/89 [OA 6270]
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Malcolm Baldridge Quality Awards 11/2/89 [OA 6270]
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Malcolm Baldridge Quality Awards 11/2/89 [OA 6270]
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26
19
4
5
Mac Baldrige
July 30, 1987
Mr. Vice President -- George -- Midge, Megan and Molly.
A rich honor to be here. In the Christian experience,
this is the day when we gather to celebrate the life of Mac
Baldrige. We really must not mourn this magnificent life
lived. But that is so very hard not to do. Christianity
teaches us to celebrate his life. So we celebrate this man.
His marvelous mannerisms. His friendliness. His love of life
and fellow man. His wisdom. His great courage. His
intellect. His heart. His soul. Those attributes were part
of the essence of his stewardship in his life here on earth --
and we knew they were to be returned to God one unknown day.
But none of us were ready for that day. We mourn his
loss in our own lives -- what he was to each of us. So
personal. So special. It would have been much easier to
celebrate his life with him here! But he is gone --
irrevocably gone.
My wife, Ann, and I have spent many marvelous moments
with Mac and Midge Baldrige. I cherish the years that I have
been the beneficiary of that man's wise counsel and direction.
We had special and fragile and easily-remembered times
together. One such occasion was a Sunday in Kenneybunkport,
Maine, with Barbara and George on a beautiful Memorial Day.
-2-
Mac gave the sermon. He talked about Memorial Day and about
war, and about peace. He served in the Second World War -- a
decorated combatent of that war. Yet, what he really was --
always -- was a man of peace. In his face, in his actions, in
his life -- a man of peace. That Sunday he spoke about war --
and his reluctant part in it -- and about killing and about
innocent victims, and I remember he choked up a bit. Only a
bit, for it is not always right for a cowboy to cry. Then he
went on. There wasn't a sound in that little church. All were
deeply moved by the beauty of his remarks.
Then at a lovely memorial service afterwards out in the
town square I remember saying, "Mac, I don't think I've ever
heard you speak like that -- so personal, so intimate, so
powerful, so you." He said, "Well, I kind of got a little
choked up there. I didn't mean to do that. I don't do that
very often -- but war really is hell. We must see that we
never do that again." That was his love shining through. The
silence. Then a sigh and a pause, and then that shy and
pixie-like grin -- that wouldn't be corny to call it his "aw
shucks" look. It wasn't corny because that was him. It was a
most real and authentic part of him.
Then let me mention another time much more recently at a
small dinner in their Washington apartment. Two of the guests
that night had recently been in deep personal extremity.
-3-
The Washington experience can inexoriably crush, pull and tear
down human beings. It had so visited itself upon those two
guests and I remember Mac ambling up to the man and just saying
softly -- "It's been kind of a tough one hasn't it?" The
guest allowed as to the fact it sure had been. Mac said, "Let
me tell you about a time or two of mine in my life when I
didn't know where to turn." And as I stood there, he shared a
most intimate and dramatic turn of his life. Relating it
slowly, softly, in his folksy, earthy, riveting and
distinctly-hearable way. He revealed his own full
vulnerability and his own rich humanness to that man. I saw
the rigidity and pain drop a bit from the man's face and then
the loosened shoulders and then a big grin.
And Mac certainly always knew what a big grin was. He
was a friend to his friends. I never saw him abuse or misuse a
friendship. Steady on the course. He had "no truck" with pomp
or posturing. I never heard him say hateful things or speak
about others in hateful ways. He was bigger than all of that.
Mac Baldrige was as comfortable with cowboys as he was
with kings -- maybe even more.
He loved his job and he loved his President and Vice
President and he loved his country. He brought that
overwhelming human dimension of his to the task. He knew
exactly what he wanted to accomplish with that intellectual
-4-
buoyancy and honesty and feeling. He made his mark as few
before him have.
He made unmatched strides in the Department of Commerce
in seven league boots -- cowboy boots for sure. He loved the
beauty of words and language and the classics -- and then he'd
get right out there and kick around in that sagebrush or in the
arena with the best of the cowpokes.
He rigged those new computers over there at the Commerce
Department so they would simply spit out and reject words that
he just would never chamber in his own talk with fellow
humans. Words like "specificity," "viable," "input," "output,"
"feedback" or simply any word ending in "ize!" "Finalize" and
all such unrelenting garble.
He was a rainbow of life. He brought joy and love and
good spirit wherever he went. He really did. Fair, tough,
loving and so wise. What a huge capacity for human loving and
caring he had.
My wife, Ann, said wistfully, "I wish we had seen more of
Mac. He was so great a guy.' Then she added quietly, "But
nobody would ever see enough of a guy like Mac." For he
carried a great secret of life -- the ability to love and be
loved. That requires real strength and grace.
-5-
His tap root reached out across this entire land. He
loved the East, here in this beautiful, pastoral community and
this lovely little church -- and he loved the West, out there
in the cathedrals of sky and mountain.
A great tree has fallen from the skyline. He leaves a
very empty place here -- and there.
And to Midge. Dear Midge. The lady he loved -- and
loved to be with. They lived, loved, laughed and danced
together -- and oh how Mac loved to dance!
To you, Midge, and to dear Molly and Megan, Tish, Bob,
and Craig and Malcolm and Fonda -- families now all drawn
together in an ever tighter bond of love and caring -- our love
and sympathy.
Midge, yours was a remarkable union. We witnessed the
bond of two very strong and very dear people. A union that you
often refreshed and renewed as you drew strength and comfort
from each other in a very visible way. Hard to describe --
beautiful to observe.
I shall always have a vivid mental picture of Mac
Baldrige. Seared here. There is his marvelous voice, the
incredibly mobile face, bright, twinkling and piercing eyes --
that beautiful and very kind face with that smile you could see
a mile. That friendly and all encompassing presence.
-6-
That cowboy hat scrunched down on his head and those old worn
boots and white shirt and those levis just barely hanging on to
that bony and wirey frame of his -- defying gravity, indeed --
and held up by an old western belt. Mac.
There really is a lore and love of the West. He often
told me that it had al very special draw on him -- a compelling
pull. He would tell me of the days as a boy -- and after --
when he read Zane Grey and Robert Service and Owen Wister. And
from those writings of those authors who he loved comes a
phrase which I guess is really about the finest thing you can
ever say about a cowboy and a man. "He died with his boots
on." That was Mac. Now we give him up. God, we commend him
to your loving hands. Thank you for him.
Limpane
al.
remails
1
Giegi Instruct
224-2708
PRESS RELEASE
THE VICE PRESIDENT
OFFICE OF THE PRESS SECRETARY
FOR IMMEDIATE RELEASE
CONTACT: 202/456-6772
Sunday, July 26, 1987
STATEMENT BY THE VICE PRESIDENT
Mac Baldrige set the standard for excellence, decency
and integrity in public life. He was a tower of strength and
truly a man of honor.
Barbara and I extend our condolences and family love to
Midge and the family. I feel like I've lost a brother. I
really loved the guy.
Baldrige Award: Hard Work for High Honors
As Quality Issue Heats Up, So Does Competition for Prize Honoring It
By Cindy Skrzycki
showing positively. They viewed it
Washington Post Staff Writer
as a hopeful sign that companies re-
alize their limitations, and decided to
Robert Forrest didn't spend East-
work at improving themselves. The
er Sunday with his family. The Cor-
judges have been encouraged to
ning Glass Works vice president
keep their standards high and not
spent it instead with 13 fellow em-
feel pressured to pick the best of the
ployees, holed up in what has come
worst just for the sake of handing
to be known at Corning as the "war
out all six awards.
room," strategizing on how the com-
Those who have been instrumental
pany could win the Malcolm Baldrige
National Quality Award.
in setting up the program stress that
the standards are rigorous. Though
As the May 5 application deadline
privately some concede that the appli-
approaches, judges and administra-
cation, examination and judging pro-
tors of the government initiated pro-
cess can't match the demands of the
gram estimate that nearly 100 com-
Deming, they say the objective of the
panies are preparing to jump the
U.S. award is different.
first hurdle to winning the award:
Preparing an exhaustive report-up
"The Deming has existed for
to 75 pages for manufacturing and
more than 35 years, ours for
service companies-that probes
months," said Curt Reimann, associ-
The Baldrige National Quality Award.
seven aspects of a company's effort
ate director for quality programs at
to improve quality.
the Commerce Department's Na-
American who brought modern man-
tional Institute of Standards and
"If you did everything in that out-
agement skills to Japan after World
line, you would be a world-class
Technology; which manages the
War H.
company," said Forrest, whose team
award program. "We are having a
But quality experts admit that
has been working seven days a week
large and growing impact. Many,
there is much confusion over what
for the last month on the company's
many companies are using the [ap-
quality really is and how to build it
application.
plication] guidelines for self-assess-
into a company.
Interest in the award and who
ment and many are entering the
The number of applicants for the
wins it are indicators of how serious
competition for the value of the
award last year, the first time it was
American companies are about im-
feedback they hope to get."
given out, provides some indication
proving the quality of their goods
Companies that win the award
of just how far American companies
and services. The effort to improve
have to go to improve quality. In
agree to share their strategies, thus
U.S. products is considered key to
short, few were called and even few-
spreading the gospel of quality im-
battling foreign competition and
er were chosen.
provement.
changing the perception of many
Overall, 66 companies thought
"Our telephone never stops ring-
consumers who associate higher
they were good enough to apply. But
ing," said Richard C. Buetow, Moto-
quality with foreign-made goods.
only three survived the scrutiny of
rola's director of quality. "We proba-
The prize, and the months-long
on-site examiners and judges: Moto-
bly have dealt with 160 companies
process of applying for it, also is de-
rola Inc., the Commercial Nuclear
since the beginning of this year."
signed to set a national standard that
Fuel Division of Westinghouse Elec-
The hope is that world-class com-
companies can strive for, much as
tric Corp., and Globe Metallurgical
petitors like Motorola will impart to
companies in Japan compete for that
Inc.
their disciples the idea that perfec-
country's coveted Deming Prize-
Nevertheless, the backers of the
tion should be the goal and top-to
named for W. Edwards Deming, the
award chose to interpret the poor
See QUALITY, D6, Col. 1
4/18/89
D6 TUESDAY, APRIL 18, 1989
Companies Working Hard
For U.S. Quality Award
QUALITY, From D1
been decided whether Xerox will ap-
ply for the Baldrige Award.
bottom quality management the ap-
Florida Power & Light Co. in Mi-
proach.
ami believes it has come so far with
Many companies that take a close
the program it started eight years
look at their quality programs come
ago that it hopes to set a milestone ir
to realize they have been taking a
the quality annals by being the first
temporary approach to improving
American company to win Japan's ul
quality. Others mistakenly blame all
timate quality award, the Deming.
their problems on employees rather
"We're the only non-Japanese com
than concentrating on improving all
pany that has ever applied," said Ken
aspects of the business.
Sterett, director of quality improve
Armand V. Feigenbaum, a quality
ment at Florida Power & Light. "I
guru with an international consulting
surprised the Japanese a little bit and
practice, said, "The essence of total
it's a pretty major burden on them."
quality control is the recognition
Most companies undergo two to
that quality is a part of the organiza-
three years of painstaking prepara
tion from the executive office to the
tion, often with Japanese counselors
production floor."
before they even apply.
Xerox Corp., for example, has
But for those who have their sight
been at it relentlessly for the last
on the Baldrige, which will be give
five years. Using an internal pro-
out in November, the philosophy i
gram called Leadership Through
that it's not the winning that's impor
Quality, the company has lowered
tant, but getting in shape to go for th
manufacturing costs, narrowed re-
award.
sponse times on service calls and
"You can't lose on the Baldrige,
dramatically cut the number of sup-
said Corning's Forrest: "If we tes
pliers it uses.
ourselves and understand where W
"It is absolute dog work," said Da-
have to improve, we're better for th
vid T. Kearns, chairman of Xerox
effort. I don't see how anyone ca
Corp. He added that it has not yet
lose."
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
July 29, 1987
REMARKS BY THE PRESIDENT
AT MEMORIAL SERVICE FOR
MALCOLM BALDRIGE
The National Cathedral
Washington, D.C.
10:12 A.M. EDT
THE PRESIDENT: Midge, Megan, Molly, distinguished ladies
and gentlemen, the day I called Mac Baldrige to ask him to join the
Cabinet, I was told by Midge I would have to call back later. He was
out on his horse roping and couldn't come to the phone. Right then I
knew he was the kind of man I wanted.
It's a gift to be simple, we're told. If that means to
hold simple, strong, and decent values, Mac had that gift.
You could see it in the way he moved around the White
House. He seemed to know everyone -- not just those in the public
eye, but the secretaries and assistants as well. And he treated
everyone with the same measure of courtesy and respect -- from his
driver to the President. He never judged a man or woman by rank or
trappings. Despite his many remarkable successes, worldly success
was not the way he measured people. No, money was not, position was
not, qualities of character were. Honesty, courage, industry and
humility. These were his yardsticks. And if you had these simple
qualities, you'd made it in his eyes -- whether you were rich or
poor, famous or unknown.
Language was one way he decided if you were his kind of
person. It's well known now that he insisted on simple language in
memos at the Commerce Department. He banned phrases that were vague
or redundant. He once said that the thing he liked about cowboys was
that they didn't talk unless they had something to say, and when they
said something, they meant it.
To him, simple language did not mark a simple mind, but a
strong and fearless one. It was a sign of those who didn't hide
their meaning behind a cloud of ambiguous words.
Mac, of course, never hid his opinions. Even if the tide
was against him, he was forceful and clear and unflinching. I always
knew where he stood, and so did the country. I could always count on
him for the truth as he saw it -- no matter how unpleasant or
unpopular. There were times the Cabinet came down on an issue
12-to-1, and he was on the short end. But I knew that if he believed
somethng that others didn't, he wouldn't reign himself in and follow
the herd. He would step forward and be clear.
What I'm saying about Mac Baldrige adds up to . simple
but extraordinary quality that I would call, more than anything else,
"American." In his directness, in his honesty, in his independence,
in his disregard for rank, in his courage, he embodied the best of
the American spirit. I suppose we think of that spirit as living
most of all in cowboys. And that's why I've always suspected that it
was more than just roping and his place here in Washington that got
Mac voted into the Cowboy Hall of Fame. He belonged there. It was
in his blood. It was in his heart and soul.
MORE
- 2 -
Let me say a word about his many contributions to his
country. These were not simple, although they were built on simple
principles -- principles like his reverence for the independence of
the American character, for the freedom that lets independence
flourish, and for the opportunities of a free society.
Mac was an architect of American international economic
policy during years in which that policy moved to center stage. He
also helped shape our policy towards East-West trade in a period in
which that was a source of new questions and concerns. And perhaps
the least recognized of his major achievements was the securing of
trade ties with China. In just four years since his 1983 visit to
China, trade has become a pillar of the Sino-American relationship.
To contribute so much required skill and persistence --
qualities Mac had in abundance. It also required vision -- vision
not only for dealing with immediate issues, but for the future of the
entire world and its economy, as well.
I always prized the quality of Mac's vision. He had the
capacity to look up from the dust of the plains to the distant
mountains. He never forgot that all the skirmishes and battles over
trade policy that we have here in Washington and around the world
have one final goal. We're building a world in which our children
and grandchildren will live. And we who love freedom and revere the
dignity of humanity, have a sacred duty to make that an open world of
real hope and abundant opportunity, a world in which the spirit of
freedom -- yes, what you might call that part of the American spirit
that lives in all of mankind in which that spirit can ride across
an open range towards the peaks beyond.
I'm told that Mac's staff had orders to interrupt him at
whatever time of the day with calls from only two people. I was one.
And any cowboy who rang up was the other. Well, I'm honored to have
been in that company. Mac, as we know, left us while he was doing
what he loved most. And now, whenever any of us wants to ring him
up, we'll have to remind ourselves that he's out on a horse somewhere
and we'll just have to wait. Yet in his simplicity, he has entered
the company of the men and women who have shaped our nation and its
destiny. And he will live in that company forever.
Yes, there is sorrow, but the sorrow is with us and for
us. We must believe that door is opened that God promised and he has
just gone through that door into another life where there is no more
pain, no more sorrow, and we must believe that we, too, will one day
go through that door and join him again.
Thank you. God bless you.
END
10:18 A.M. EDT
notocopy-Preservation
USA Taday
INSIDERS
BEHIND THE SCENES IN THE WORLD OF BUSINESS
A Baldrige for
Xerox, Milliken
The secret has leaked out.
Xerox Corp. and Milliken &
Co. will be honored by Presi-
dent Bush Thursday with the
Malcolm Baldrige National
Quality Award.
The names of the winners
have been closely guarded by
the Commerce Department. But
Xerox and Milliken have report-
edly bested 38 other applicants
for the prestigious prize. The
award was created in 1987 in
memory of Baldrige, the former
Commerce Secretary who was
killed in a rodeo accident.
The Baldrige recognizes com-
MOSBACHER: Expected to
panies that have made quality
the primary focus of everything
present awards Thursday
they do. To regain market share
for applications. Only 40 firms
against the Japanese, Xerox has
applied, primarily because it's
vastly improved the quality of its
extremely difficult to comply.
copiers. Milliken, a textile firm,
Corning Inc. spent 7,000
has made similar strides.
hours preparing its Baldrige
Thursday, at the Commerce
application, says David Lu-
Department, Bush and Com-
ther, Corning's senior vice
merce Secretary Robert Mos-
president for quality. "This
bacher are expected to present
award shows what it takes to
the awards.
be really, really good."
In any given year, up to six
In 1988, 66 firms applied.
companies - two manufactur-
Three won: Motorola, Wes-
ers, two service firms and two
tinghouse's nuclear fuel divi-
small businesses - can win a
sion and Globe Metallurgical.
Baldrige Award. This year,
nore than 60,000 firms asked
- John Hillkirk
Davis/Martin
Oct. 30, 1989
Title: Award
Draft: Two
PRESIDENTIAL REMARKS: MALCOLM BALDRIGE NATL. QUALITY AWARD
MALCOLM BALDRIGE HALL, COMMERCE DEPARTMENT
10:30 a.m., Thursday, Nov. 2, 1989
( (Midge Baldrige -- other acknowledgements to come.))
In just a few moments, it will be my pleasure to present
awards named after a great public servant and a very close and
dear friend -- the late Malcolm Baldrige.
So let me begin than with a few words about Mac. He had a
zest for life, a love of family and a love of country that was
uncommon. He was an outstanding Secretary of Commerce for six
and a half years. And he was also an outstanding friend: Mac's
word of honor was as good as a twenty-dollar gold piece.
But he never quite fit any mold. This was the President of
a successful company who spent a lot of his time with volunteer
firemen. This was a son of the East who rode horses and loved
his place in New Mexico. He felt at home with cowboys, because
he roped with them all his life.
You would never have known it from his friendly, easy-going
manner, but Mac was also a perfectionist, in word and deed. As a
leader in business, Mac strived for quality products; as Commerce
Secretary, for quality in public policies. Even the language of
his memos was lean and exact. ( (In fact, Mac had a special
computer software program for Commerce Department documents; one
that automatically weeded out jargon words like "impacted," "
Pat Corcan
377-2867
317-3934
Tunny
abd
SEB
some
cov
A
stayt
Farren
2
"viable" and "infrastructure". It was a sort of Gramm-Rudman cut
of the English language. ) )
Yet, like all perfectionists, Malcolm Baldrige knew that
perfection is not attainable. Rather, it is a never ending quest
for the unattainable. His life was such a quest, one that leaves
us with a profound insight: A truly successful man or woman is
someone who has served others.
Companies, like people, also succeed or fail to the extent
to which they provide service. This is true for the humblest mom
and pop operation and the largest corporation alike.
The improvement of quality in products and service is a
national priority as never before. In recent years, Americans
have felt the sting of fierce new competition on a global scale.
And after the initial shock, we have learned to take foreign
competition -- not as an excuse to close doors and raise
protective barriers -- but as an incentive to renew our
commitment to excellence.
American managers have reconsidered every time-honored
belief, every traditional practice, every customary procedure.
They have embraced what works, and rejected the rest. They have
studied examples of innovation from home and abroad, and adopted
only the best. And we now know the result of this historic
reassessment: When it comes to meeting the competition, America
is back in business. \\
We are here today to honor two companies that are leading
this resurgence in American business leadership. Most companies
3
catch unmitigated hell from the competition. But these two
companies are in the lead because no competitor gave them a
tougher time than they gave themselves.
Of course, in business, success is its own reward. Yet all
American firms benefit by having a standard of excellence to
imitate, match and perhaps one day to surpass. For in 1989,
there can be no higher standard of quality management than those
provided by the winners of the Malcolm Baldrige National Quality
Award -- Milliken & Company and the Xerox Corporation.
Both of these manufacturing firms were well-established
leaders in their markets. Yet both were being steadily squeezed
out by intense foreign and domestic competition. In the midst of
this crisis, the men and women of these companies found within
themselves the will to make a painstaking reassessment; and the
drive to win back their share of the market.
Both companies started down this path of reassessment with a
simple premise: there is only one definition of quality -- the
customer's definition. And then they proceeded from this one
premise to restructure their production and marketing plans.
Sounds simple. But I know, as a former businessman myself, how
difficult it is to restructure a firm, top-to-bottom. In fact,
to tell you the truth, it's impossible.
Today's winners learned that it is possible for a firm to
restructure itself only from the bottom, up. They know that a
company can no longer afford to regard employees as automatons in
a production line. They know that a company must rely on the
4
intelligence, judgment and good character of the people it
employs.
There are as many successful forms of management as there
are successful companies. But for these two companies, success
came when they developed their human, as well as their
technological, potential.
Milliken, for example, is a 124-year-old textile
manufacturer in South Carolina. But it's management style is
sheer 21st Century. Milliken scrapped the old management
hierarchy, in favor of what they call a "flat management
structure. " ( (Good thing they're not a tire company. ))
Milliken even gave a new title to its employees, calling them
"associates."
This is no hollow accolade from public relations.
Every Milliken employee truly is an associate. In fact, any
Milliken worker has the power to halt the production line if he
or she detects a problem in quality or safety.
Our other winner takes a similar approach with its Team
Xerox philosophy. Xerox employees are given the authority they
need to make day-to-day decisions. They are, the company says,
expected to take the initiative in finding and fixing problems.
And they do. While every manager works, every worker is
managing.
One of the best things about this award, is that it allows
successful companies to share what they have learned; to set an
example. ((Perhaps these two companies should merge. Can you
5
imagine it?\\ Your wardrobe wouldn't just be coordinated; it
would be collated. ))
Many firms will learn a great deal from their example.
Others will need to follow their own path. But one lesson is
applicable to all: quality products and service is no accident.
It is the result of a certain can-do, no-excuses attitude -- an
aggressive impatience with the status quo -- even in the best of
times. It is this attitude, more than anything else, that is
responsible for the creation of wealth and jobs we have seen in
the last seven years.
In these years, our total national wealth has grown by
almost a third. We have created more than twenty million new
jobs. And we are still enjoying the rewards of what has proven
to be the longest peacetime expansion in American history.
Given the right policies -- and a reduced capital gains tax
would certainly be one -- this expansion will continue. And
given the right tools, the American people can reach even greater
heights. The potential of this nation is as boundless as the
imagination and drive of the American people. All we have to do
for our citizens is what these two companies have done for their
employees -- give them the freedom to do what they do best.
Freedom to imagine. Freedom to create. Freedom to excel.
Our winners had such freedom, and they made the most of it.
I give my heartiest congratulations to them. Thank you, God
bless you and God bless America.
# # #
P.01
10/18/89
17:04
EXEC SEC
I
EXECUTIVE SECRETARIAT
DEPARTMENT OF COMMERCE
FAX No. 202 377 5264
DATE: 10/18
TO:
Christine Martin
FAX NO.
456-6218
TELEPHONE NO.
456-1414
?!
FROM:
Lauren McDonald
TELEPHONE NO.
377-5300
NUMBER OF PAGES (including this page):
15
10/18/89
17:04
EXEC SEC
P.02
DEPARTMENT OF COMMERS
UNITED STATES DEPARTMENT OF COMMERCE
COMPLED STATES of /
Office of the Deputy Secretary
Washington, DD 20230
October 18, 1989
Christine Martin:
The following is from the Malcolm Baldrige National Quality Award
1989 Application Guidelines. I have a tremendous amount of
material on the Award which is available to you, but we might
want to visit by phone first so you get the specific information
you need. Please reach me at 377-5300, or 377-4625.
Thank you.
Laureer
Lauren McDonald
also from some NIST info gmi
PRESS RELEASE
THE VICE PRESIDENT
OFFICE OF THE PRESS SECRETARY
FOR IMMEDIATE RELEASE
CONTACT: 202/456-6772
Sunday, July 26, 1987
STATEMENT BY THE VICE PRESIDENT
Mac Baldrige set the standard for excellence, decency
and integrity in public life. He was a tower of strength and
truly a man of honor.
Barbara and I extend our condolences and family love to
Midge and the family. I feel like I've lost a brother. I
really loved the guy.
THE WHITE HOUSE
WASHINGTON
October 18, 1989
MEMORANDUM FOR THE PRESIDENT:
THROUGH:
CHRISS WINSTON
3
FROM:
CHRISTINA MARTIN
SUBJECT:
Malcolm Baldridge
On Nov. 2, 1989, you will announce the winners of the 1989
Malcolm Baldridge National Quality Awards. The awards were
established in August, 1987 to serve as the centerpiece of a
national initiative to improve quality management. This is
believed to be the first step in providing U.S. industry with the
incentive needed to challenge Japan which is currently considered
the world's highest quality producer.
In your remarks we would like to pay tribute to Malcolm
Baldridge. Any comments you could provide in the way of personal
anecdotes or fond memories would be greatly appreciated. Thank
you.
Davis/Martin
Oct. 25, 1989
Title: Award
Draft: One
PRESIDENTIAL REMARKS: MALCOLM BALDRIGE NATL. QUALITY AWARD
COMMERCE DEPARTMENT
Malcolm Baldndge Hall
((10 a.m.)) Thursday, Nov. 2, 1989
10:30 Am
Amb. Hills,
( (Acknowledgements) )
presenting
two
In just a few moments, it will be my pleasure to bestow an
award named after a great public servant and a very close and
dear friend -- the late Malcolm Baldrige.
You would never have known it from his friendly, easy-going
manner, but Malcolm was a perfectionist, in word and deed. As a
leader in business, Malcolm strived for quality products; as
Commerce Secretary, for quality in public policies. Even the
language of his memos was lean and exact.
Like all perfectionists, Malcolm Baldrige knew that
perfection is not attainable. Rather, it is a never ending quest
for the unattainable. His life was such a quest, one that leaves
us with a profound insight: A truly successful man or woman is
someone who has served others.
( (Baldrige quotes to come))
Companies, like people, also succeed or fail to the extent
to which they provide service. This is true for the humblest mom
and pop operation and the largest corporation alike.
The improvement of quality in products and service is a
national priority as never before. In recent years, Americans
2
have felt the sting of fierce new competition on a global scale.
And after the initial shock, we have learned to take foreign
competition -- not as an excuse to close doors and raise
protective barriers -- but as an incentive to renew our
commitment to excellence.
American managers have reconsidered every time-honored
belief, every traditional practice, every customary procedure.
They have embraced what works, and rejected the rest. They have
studied examples of innovation from home and abroad, and adopted
only the best. And we now know the result of this historic
reassessment: When it comes to meeting the competition, America
is back in business. \\
We are here today to honor two companies that are leading
this resurgence in American business leadership. Most companies
catch unmitigated hell from the competition. But these two
companies are in the lead because no competitor gave them a
tougher time than they gave themselves.
Of course, in business, success is its own reward. Yet all
American firms benefit by having a standard of excellence to
imitate, match and perhaps one day to surpass. For in 1989,
there can be no higher standard of quality management than those
provided by the winners of the Malcolm Baldrige National Quality
Award -- the Smith and the Jones Companies.
Both of these manufacturing firms were well-established
leaders in their markets. Yet both were being steadily squeezed
out by intense foreign and domestic competition. In the midst of
3
this crisis, the men and women of these companies found within
themselves the will to make a painstaking reassessment; and the
drive to win back their share of the market.
Both companies started down this path of reassessment with a
simple premise: there is only one definition of quality -- the
customer's definition. And then they proceeded from this one
premise to restructure their production and marketing plans.
Sounds simple. But I know, as a former businessman myself, how
difficult it is to restructure a firm, top-to-bottom. In fact,
to tell you the truth, it's impossible.
Today's winners learned that it is possible for a firm to
restructure itself only from the bottom, up. They know that a
company can no longer afford to regard employees as automatons in
a production line. They know that a company must rely on the
intelligence, judgment and good character of the people it
employs.
Kidding aside, there are as many successful forms of
management as there are successful companies. But for these two
companies, success came when they developed their human, as well
as their technological, potential.
Smith, for example, is a long-time manufacturer. But it's
management style is sheer 21st Century. Smith scrapped the old
management hierarchy, in favor of what they call a "flat
management structure. ( (Good thing they're not a tire
company. )) \\ Smith even gave a new title to its employees,
calling them "associates." This is no hollow accolade from
4
public relations. Every Smith employee truly is an associate.
In fact, any Smith worker has the power to halt the production
line if he or she detects a problem in quality or safety.
Our other winner takes a similar approach with its ( (company
logo to come)) philosophy. Jones employees are given the
authority they need to make day-to-day decisions. They are, the
company says, expected to take the initiative in finding and
fixing problems. And they do. While every manager works, every
worker is managing.
One of the best things about this award, is that it allows
successful companies to share what they have learned; to set an
example. Many firms will learn a great deal from their example.
Others will need to follow their own path. But one lesson is
applicable to all: quality products and service is no accident.
It is the result of a certain can-do, no-excuses attitude -- an
aggressive impatience with the status quo -- even in the best of
times. It is this attitude, more than anything else, that is
responsible for the creation of wealth and jobs we have seen in
the last seven years.
In these years, our total national wealth has grown by
almost a third. We have created more than twenty million new
jobs. And we are still enjoying the rewards of what has proven
to be the longest peacetime expansion in American history.
Given the right policies -- and a reduced capital gains tax
would certainly be one -- this expansion will continue. And
given the right tools, the American people can reach even greater
5
heights. The potential of this nation is as boundless as the
imagination and drive of the American people. All we have to do
for our citizens is what these two companies have done for their
employees -- give them the freedom to do what they do best.
Freedom to imagine. Freedom to create. Freedom to excel.
Our winners had such freedom, and they made the most of it.
I give my heartiest congratulations to them. Thank you, God
bless you and God bless America.
#
#
#
OCT-25-1989 10:48 FROM
NIST DIRECTOR'S OFFICE
TO
4566218
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TELECOPIER COVER SHEET
MALCOLM BALDRIGE
NATIONAL QUALITY AWARD
OFFICE
Admin/A1123
National Institute of Standards and Technology (NIST)
[Formerly National Bureau of Standards (NBS)]
Gaithersburg, MD 20899
Date
October 25. 1989
To:
Name:
Christina Martin
FAX #
456-6218
ORG.
White House
Ext.
456-7750
From:
Name:
John S. Makulowich
FAX #
301-948-3716
ORG.
NIST [Formerly NBS]
Ext.
301-975-2036
No. of Pages (including cover sheet):
8
Please confirm receipt of this transmission (301-975-2036).
Thank you.
OCT-25-1989 10:48 FROM NIST DIRECTOR'S OFFICE
TO
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P.02
1989 Winner of the Malcolm Baldrige National Quality Award
MILLIKEN & COMPANY
Ten years ago, Milliken, a major
by the its business success. Since the
textile manufacturer long recognized for
early 1980s, productivity has increased
quality products and its use of
42 percent, sales have risen 33 percent,
state-of-the-art technology, chose not to
and profits have jumped 40 percent.
leave well enough alone. Instead, the
firm went looking for trouble and found
Company at a Glance
it, not surprisingly, in Japan. What did
Headquartered in Spartanburg, S.C.,
surprise the firm's process-improvement
the 124-year-old privately-owned
specialists, however, was how some
company has a payroll of 14,300
Japanese competitors achieved higher
workers, or "associates," most employed
quality, less waste, greater productivity,
at Milliken's 47 manufacturing facilities
and fewer customer complaints while
in the United States. Its 28 businesses
using technology less advanced than
produce more than 48,000 different
Milliken's.
textile and chemical products--ranging
The reasons for the disparity,
from apparel fabrics and automotive
Milliken officials determined, lay in
fabrics to specialty chemicals and floor
management approaches and in
coverings--for more than 8,500
personnel practices that, along with
customers worldwide. Annual sales
technology, drive improvements in
exceed $1 billion.
quality and efficiency. More important,
Milliken's successful push for quality
senior management took the lesson to
improvement has allowed it to increase
heart and, in 1981, implemented
U.S. sales even as imports grow at an
casful
Milliken's Pursuit of Excellence (POE),
annual rate of 10 percent, causing U.S.
a commitment to customer satisfaction
textile firms to close more than 1,000
that pervades all company levels. The
plants and eliminate more than 350,000
results are improvements in what most
jobs during the last decade. Not
competitors had already considered an
yielding to foreign competitors at home,
enviable record of quality and
Milliken is also prospering overseas. Its
performance. In independently
automotive fabrics business, for
conducted surveys, Milliken not only
example, is now a major supplier of
tops the competition in all 15 measures
high-quality upholstery to Japanese and
of customer satisfaction, but is widening
Korean car manufacturers.
the lead.
For the South Carolina-based
Pursuit of Excellence
company, the wisdom of a
Commitment to quality and customer
"customer-driven and quality-focused"
satisfaction begins at the company's
approach to manufacturing and
highest levels, with Roger Milliken,
nonmanufacturing activities is verified
chief executive officer, and Thomas J.
-OCT-25-1989 10:49 FROM NIST DIRECTOR'S OFFICE
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Malone, chief operating officer,
opportunities that generated $37 million
devoting more than half their time to
in additional sales revenue.
matters related to Milliken's POE
Complementing its many activities to
process. Through the Policy Committee
realize and extend the capabilities of its
and Quality Council, top management
workforce, Milliken invests heavily in
creates the environment and provides
training, spending about $1,300 per
the leadership for quality improvement,
associate in 1988. As a result of these
and it closely monitors the progress of
and other efforts, Milliken's
each company unit toward quality goals.
commitment to quality has so deeply
Responsibility for meeting goals,
penetrated the organization that it has
however, clearly rests with each
generated a self-sustaining momentum,
associate.
according to the judges who evaluated
The result is a flat management
Milliken's application for the Malcolm
structure in which associates, working
Baldrige National Quality Award and
WORKERS ARE THE
primarily in self-managed teams, have
who interviewed hundreds of employees.
considerable authority and autonomy.
Quality improvement measures are
Production work teams, for example,
solidly based on factual information,
may undertake training, schedule work,
contained in an array of standardized
MANAGERS
and establish individual performance
databases accessible from all Milliken
objectives. Moreover, any worker can
facilities. Most manufacturing processes
halt a production process if he detects
are under the scrutiny of real-time
a quality or safety problem. The
monitoring systems that detect errors
approach has worked so well that
and help pinpoint their causes. The
Milliken has eliminated nearly 700
resultant data, some analyzed with the
management positions since 1981,
aid of computerized expert systems,
increasing the ratio of production
support process improvement efforts to
workers to managers by 77 percent.
predict and prevent the causes of
Teams are a hallmark of what
errors. To speed progress in this area,
observers now call the Milliken Quality
Milliken has reassigned 20 percent of
Process. In 1988, 1,600 Corrective
its production managers to analyzing
Action Teams were formed to address
and improving processes, including
specific manufacturing or other internal
those in such nonmanufacturing areas
business problems, and about 200
as billing and customer service. Among
Supplier Action Teams worked to
the returns to these efforts is a
improve Milliken's relationships with its
substantial decrease in errors and, since
suppliers. In addition, nearly 500 teams
1981, a 60 percent reduction in the cost
were formed to respond to the needs
of nonconformance, which includes
and aims of customers, including
discounts for off quality, payment for
development of new products. Besides
freight on customer returns, and other
demonstrating a commitment to
cost items.
customer satisfaction, these Customer
Milliken also maintains extensive
Action Teams created marketing
databases on environmental and safety
variables, on suppliers, and customers,
2
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including the results of its extensive
annual surveys of customer satisfaction.
In addition, the company "benchmarks"
the products and services of about 400
competitors, providing concrete
measures for assessing its performance
and for identifying marketing
opportunities. Through this surveillance,
Milliken determined, for example, that
it trailed some competitors in meeting
delivery targets. As a result, Milliken
improved its record for on-time delivery
from 75 percent in 1984 to an industry
best of 99 percent in 1988.
At Milliken, the Pursuit of
Excellence is an evolving process that
continuously yields new ideas for
enhancing quality, increasing customer
satisfaction, and improving business
performance. Each advance brings the
innovative company closer its long-range
goal of a production system that is fully
responsive to customer needs, providing,
as Milliken says, "products that
customers want, in the quantity they
want, when they want it."
3
OCT-25-1989
10:50
FROM
NIST DIRECTOR'S OFFICE
TO
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1989 Winner of the Malcolm Baldrige National Quality Award
XEROX CORPORATION
BUSINESS PRODUCTS & SYSTEMS
For its first 15 years, Xerox was
improvements in quality necessary to
without equal, best in an industry
meet these requirements.
whose products were synonymous with
its name. But challenges did come,
Xerox at a Glance
from foreign and U.S. competitors that,
One of two Xerox Corp. businesses,
beginning in the mid-1970s, surpassed
Business Products and Systems (BP&S)
Xerox reprographic products in both
employs 50,200 people at 83 U.S.
cost and quality.
locations. BP&S makes more than 250
Not even second best in some
types of document-processing
product categories, Xerox launched an
equipment, generating $6 billion in 1988
ambitious quality improvement program
U.S. sales, or 54 percent of Xerox's
in 1983 to arrest its decline in the
domestic revenues. Copiers and other
world market it created. Today, the
duplicating equipment account for
company can once again claim the title
nearly 70 percent of BP&S revenues;
as the industry's best in nearly all
the remainder is divided among sales of
copier-product markets. As a result,
electronic printers and typing
Xerox has not only halted loss of world
equipment, workstations, and software
market share, but has reversed it.
products.
Xerox, headquartered in Stamford,
Xerox introduced the world's first
Conn., attributes the turnaround to its
plain-paper copier in 1959, and to this
strategy of "leadership through quality."
day is the largest provider of copiers
It defines quality through the eyes of
and electronic printers. Nearly 30
the customer, and perhaps more so
percent of the more than 4 million
than any other company--inside and
copiers installed in the United States
outside the copier industry--Xerox
are Xerox machines. In the 1970s,
knows what customers want in products
however, the company began
and services. Analyses of a wide variety
surrendering market share to Japanese
of information, gathered with exhaustive
firms that offered low- to medium-price
data-collection efforts that include
copiers and to several large U.S.
monthly surveys of 55,000 Xerox
companies that concentrated on the
equipment owners, enables the company
high end of the market.
to identify customer requirements. The
company uses this information to
Leadership through Quality
develop concrete business plans with
Xerox management has made quality
measurable targets for achieving
improvement and, ultimately, customer
satisfaction the job of every employee,
1
Xerox:
Miliken:
monroe Co.
Spartanburg, SC
Webster, NY
Laforange, GA
"Rodeheslec, NY
Monietta (MARIETTA) SC
El Segundo , CA
OCT-25-1989 10:51 FROM NIST DIRECTOR'S OFFICE
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all of whom have received at least 28
reaching the production line by 73
hours of training in problem-solving and
percent.
quality control. Managers, schooled in
Planning of new products and
statistical process control and other
services is based on detailed analyses of
advanced methods, serve largely as
data organized in some 375 information
teachers and coaches. Workers are
management systems, including 175
vested with considerable authority over
specific to planning, managing, and
no MORE AUTOMATON
day-to-day work decisions, and they are
evaluating quality improvement. Much
expected to take the initiative in
of this wealth of data has been
identifying and correcting problems that
amassed through an extensive network
affect the quality of products or
of market surveillance and customer
services. Both salaried and hourly
feedback, all designed to support
personnel have embraced these added
systematic evaluation of customer
responsibilities. The 1989 labor contract,
requirements. Over half of the
for example, pledges employee support
company's marketing-research budget is
to "continuous quality improvement
allocated for this purpose, and each
while reducing quality costs through
year its Customer Service Measurement
teamwork and the tools and processes
System tracks the behavior and
of Leadership Through Quality."
preferences of about 200,000 owners of
As the contract suggests, "Team
Xerox equipment.
Xerox," the slogan affixed to company
In its quest to elevate its products
stationery, is not a gimmick phrase. It
and services to world-class status, Xerox
accurately reflects the firm's approach
has devised a benchmarking system that
to tackling quality issues. Xerox
itself is worthy of the distinction. The
estimates that 75 percent of its workers
company measures its performance in
are members of at least one of more
about 240 key areas of product, service,
than 7,000 quality improvement teams.
and business performance. Derived
In 1988, teams in manufacturing and
from international studies, the ultimate
development were credited with saving
target for each attribute is the level of
$116 million by reducing scrap,
performance achieved by the world
tightening production schedules, and
leader, regardless of industry. Xerox's
devising other efficiency- and
benchmark for meeting daily production
quality-enhancing measures.
schedules, for example, is the
Teamwork also characterizes Xerox's
near-perfect record achieved by a U.S.
relationship with many of its 480
engine manufacturer.
suppliers. Firms credit Xerox's "process
Returns to Xerox's strategy for
qualification" initiative, including
continuous quality improvement have
assistance in implementing quality
materialized quickly. Gains in quality
control measures, with improving their
over the last five years include a 78
products and operations. For Xerox,
percent decrease in the number of
increasing reliance on its qualified
defects per 100 machines; greatly
suppliers over the last five years has
increased product reliability, as
reduced the number of defective parts
measured by a 40 percent decrease in
2
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unscheduled maintenance; increasing
copy quality, strengthening Xerox's
position as world leader; a 27 percent
drop (nearly two hours) in service
response time; and significant
reductions in labor and material
overhead. These improvements have
enabled Xerox to take additional steps
to distinguish itself from the
competition, such as being the first in
the industry to offer a three-year
product warranty.
Customers have noticed the
improvements. In 1984, competitors'
machines ranked highest in customer
satisfaction in all six product categories,
according to Xerox surveys. Today,
Xerox copiers top five of the six
categories. Not coincidentally, the
increase in customer satisfaction
parallels Xerox's gain in world market
share over the same span.
3
OCT-25-1989
10:52
FROM
NIST DIRECTOR'S OFFICE
TO
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Malcolm Baldrige
UNITED STATES DEPARTMENT OF COMMERCE
National
National Institute of Standards and Technology (NIST)
Quality
Administration Building - A1123
Award
Gaithersburg, Maryland 20899
Telephone (301) 975-2036/Telefax (301) 948-3716
MALCOLM BALDRIGE
NATIONAL QUALITY AWARD
ANNUAL DATA
November 2, 1989
Mfrers
Service
Sm Busn
Total
% TTL
1988
Applications
45
9
12
66
Site Visits
10
2
1
13
20%
Awards
2
0
1
3
5%
Motorola, Inc
Commercial Nuclear Fuel Division, Westinghouse Electric Corporation
Globe Metallurgical, Inc.
Mfrers
Service
Sm Busn
Total
% TTL
1989
Applications
23
6
11
40
Site Visits
8
2
0
10
25%
Awards
2
0
0
2
5%
Milliken & Company
Xerox Corporation
Mfrers
Service
Sm Busn
Total
% TTL
1988-89 TOTALS
Applications
68
15
23
106
Site Visits
18
2
1
23
22%
Awards
4
0
1
5
5%
TOTAL P.08
OCT-26-1989 15:23 FROM NIST DIRECTOR'S OFFICE
TO
4566218
P.01
TELECOPIER COVER SHEET
MALCOLM BALDRIGE
NATIONAL QUALITY AWARD
OFFICE
Admin/A1123
National Institute of Standards and Technology (NIST)
[Formerly National Bureau of Standards (NBS)]
Gaithersburg, MD 20899
Date
October 25, 1989
To:
Name:
Christina Martin
FAX #
456-6218
ORG.
White House
Ext.
456-7750
From:
Name:
John S. Makulowich
FAX #
301-948-3716
ORG.
NIST [Formerly NBS]
Ext.
301-975-2036
No. of Pages (including cover sheet):
8
Please confirm receipt of this transmission (301-975-2036).
Thank you.
OCT-26-1989 15:23 FROM NIST DIRECTOR'S OFFICE
TO
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1989
MALCOLM BALDRIGE
NATIONAL QUALITY AWARD
QUESTIONS AND ANSWERS
1.
How do you define quality?
The award criteria themselves serve as a de facto definition of total quality
management.
2.
Doesn't the award amount to a product or service endorsement for the winners?
The award program does not endorse products. The award--by legislation--is for
total quality management. We would expect a high correlation between good quality
management and products and services.
3.
How many firms applied for this year's Malcolm Baldrige National Quality Award?
Forty (40) firms sent in their applications by the May 5 deadline. That number includes
23 companies in manufacturing, 6 in service, and 11 in small business. Last year there
were 66 applications--45 in manufacturing, 9 in service, and 12 in small business.
4.
Why did fewer companies apply for the award in 1989 compared to 1988?
Based on the experience of other rigorous competitions, the challenging nature of the
award criteria, and the stringent review demonstrated in the first award cycle, the
Malcolm Baldrige National Quality Award Board of Overseers expected a decline in
applications as companies start to develop long-range plans for quality. Companies
themselves realized that the first year's winners had been involved in quality improvement
for many years. Generally, award managers believe that the decrease reflects a new
awareness by U.S. industry that the demands in achieving world-class quality--mirrored in
the application-are more formidable than anticipated. Many companies have indicated
their interest in applying in 1990, 1991--even as late as 1994. And we are seeing a
growing interest in total quality management; the companies actively supporting and
participating in quality management account for more than $2 trillion in products and
services.
OCT-26-1989
15:24
FROM
NIST
DIRECTOR'S OFFICE
IU
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5.
Do fewer applications imply that there is declining interest in quality?
No. The award management received requests for over 63,000 application guidelines on
the 1989 award, compared with about 12,000 in all of 1988. The guidelines double as a
quality improvement checklist and thousands of manufacturing and service companies are
known to be using it for self-assessment. Many firms are now preparing to submit an
application for the award in the future; they realize that the winners last year had been
practicing total quality management for several years prior to the initiation of the award.
By way of comparison, the Deming Award receives about 5 to 10 applications annually.
Yet that Award has been a major contributor to Japan's quality movement.
6.
What indications are there that interest in total quality management is growing?
We see rapidly growing interest from a variety of sectors, including Federal, health care,
education, and state and local. One example is the Federal Quality Institute. A number
of major U.S. companies, including Motorola and IBM, have contacted their suppliers
with the suggestion that meeting these guidelines will soon be part of the requirement
for doing business with them. This involves thousands of suppliers. Also, the three award
winners are deluged with requests to speak. Overall, NIST managers, the 1988 award
winners, members of the Board of Examiners, and members of the Consortium were
asked to make over 1,000 speeches on quality throughout the United States. Currently,
about 50 requests for information arrive daily--even though the award deadline has
passed. Conversations between company executives and the award staff testify to the
desire of companies to measure themselves against the best firms, and the best attainable.
7.
In what ways do the applicants differ this year from those who applied last year?
Because there is now one year of experience and information available, we are seeing a
uniformly higher caliber of application. Part of the reason is that applicants are more
attuned to the criteria; another part is that there is extensive networking among
executives, who are willingly sharing and providing assistance on the issues of quality. As
a result, there are deeper level discussions on the different approaches to answering the
examination's nearly 200 questions. All of which enhances the credibility of the Award
and reinforces the legitimacy of the process.
OCT-26-1989
15:24
FROM
NIST DIRECTOR'S OFFICE
TO
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8.
Can you briefly describe the process involved in selecting the winners? How do you
guarantee against undue influence?
On average, each of the companies site visited had from 350 to 400 hours of
review overall from some 17 examiners. The four-stage process covers the multiple review
of the application, its scoring, the recommendation for the site visit, the site visit itself-
-that lasts from three to four days and involves five examiners--a site report, and the
evaluation of the reports and final recommendation of the winning companies by the
nine-member Panel of Judges. Their recommendation is forwarded to the director of
NIST who in turn certifies their results to the Commerce Secretary for his final approval.
Examiner assignments are made to insure a conflict-free process.
9.
Now that you have two years of applications, what areas do you believe are most
in need of attention by manufacturers, services, and small businesses if they are
to achieve the level of quality demand by the Baldrige Award criteria?
First and foremost is the commitment of top management to a total quality
management program. Another area that demands attention is competitive comparison,
also called benchmarking, or comparing your company against the best in the industry as
well as the best in the world. A third area is the collection and analysis of quantitative
data. A fourth area is customer satisfaction. Overall, companies need to begin taking a
systems approach to quality management, rather than isolating on particular aspects of
their firm.
10.
Given the number of winners in 1989 and in 1988, are you reviewing the stiffness
of the criteria?
We are committed to holding out a standard that is respected internationally, one
that can serve as a road map to world-class quality. We continually review the criteria
from the standpoint of the continuous improvement process. We don't think the criteria
are too stiff, if by that you mean too few companies can satisfy them. The Award is
meant to identify, recognize and hold up as a model companies that are truly world-
class quality, that is, can compete successfully in the international arena against the best
in the world. No one ever said that would be easy, Award or no Award.
11.
How do you think Japanese or European companies would fare in the competition
using the Baldrige criteria?
The criteria can be used by Japanese or European companies to self-assess their
total quality management. In fact, a Japanese magazine translated the entire application
guidelines recently, which includes the criteria. In that sense, the criteria are transnational
and cross-cultural. And they were created with that in mind. The criteria are being used
in the Far East and are of great interest in Europe.
OCT-26-1989
15:25
FROM
NIST DIRECTOR'S OFFICE
IU
4566218
P.05
12
Do you consider the Baldrige Award program a success? If so, what evidence
supports your opinion?
Interest is growing faster than anyone expected. Most important to us, we see the
seeds of a national quality initiative, one spanning not just corporations, but education,
health care, and the public sector. We see executives from the top corporations taking
seriously the criteria and the role they can play in improving their companies. We see
success in the number of letters for guidelines, in the request for speeches, and in the
level of interest in the media. We also see a growing interest among individuals to
become involved in the process, for example, as examiners.
13.
How long would you estimate it takes to design, develop, and install a total quality
management system in a standard company?
Based on the experience of the winners, it would appear to take several years for
larger companies to put a system in place that could properly be called total quality
management. It would take less time for a smaller company.
14.
Among what types of companies is interest in the Baldrige Award strongest? Why
is that?
We have found interest strongest among export companies and those serving
export customers and markets. That seems so because they are more likely to be
competing internationally and have more resources to bring to bear to implement and/or
improve their quality management. Those companies in more intensely competitive
industries, for example, electronics, computers, and automobiles, also appear to be more
interested at this time. These companies are experiencing the effects of the continuous
improvement of their competition. No one stands still in the race for quality
improvement.
15.
Could you provide data on the categories for the first two years?
A total of 106 applications were submitted, 68 from manufacturers, 15 from service
companies, and 23 from small business. Twenty three, or 22 percent, of those applicants
were site visited. A total of five awards were presented.
0C1-26-1989
15:26
FRUIT
NIST DIRECTOR'S OFFICE
IU
r.wo
16.
The Deming Award was won by a domestic American company for the first time.
An issue was raised of the cost required to win. Could you give some idea of how
much companies spend on trying to win the Baldrige Award? How much is it
worth to a company?
You would need to ask each company individually how much they spend on trying
to win the Award. I would hazard that very little is spent on winning the Award,
especially in comparison with what is spent on improving quality management systems.
Pursuit of the Award leads to permanent improvement in the company--regardless of
whether the Award is won. That's worth a lot to any company. Companies use the
challenge of the Award process as a management technique to improve quality.
17.
How is this program different from the Japanese Deming Award? Is this just a
U.S. version?
The basic purposes of both awards are the same: to promote recognition of quality
achievements and to raise awareness of the importance and techniques of quality. The
U.S. award:
is more results and service oriented;
reflects the diversity of our society and depends upon the broad involvement
of many different professional and trade groups;
provides special credits for innovative approaches to quality;
includes a strong customer focus; and
stresses the importance of information transfer.
18.
Did the award to these companies mean they are the best in the U.S.?
The award winners are truly excellent companies. However, any competition is
defined by who applies. In this case, the judges held to a very high standard and sought
examples of outstanding total quality management. We give the winners credit for very
high levels of excellence.
19.
When can we expect to see improvements in quality in American companies?
American companies are making improvements, but the competition is not standing
still either. Overall, multinational companies seem more attuned to the importance of
quality and we think that will spread to the U.S. This award is helping.
OCT-26-1989 15:26 FROM NIST DIRECTOR'S OFFICE
TO
4556218
P.07
1988
MALCOLM BALDRIGE
NATIONAL QUALITY AWARD
QUESTIONS AND ANSWERS
1.
Doesn't the award amount to a product or service endorsement for the winners?
The award program does not endorse products. The award--by legislation--is for
total quality management. We would expect a high correlation between good quality
management and products and services.
2.
Why did so few companies submit an application for the award?
We are very satisfied with the number of applications received. This is the first
year of the award program. Many companies decided to wait until they are more
prepared. Most applications were filed on the last day, indicating that in the first year
it was difficult to review the application, develop a response, clear the application, and
submit. Of the companies working closely with us and strongly supporting us, only about
15 to 20 percent applied. This shows a strong interest in the award and points to a
strong future.
3.
Why are there no awards in the service category?
There are many good service companies in the U.S. and there were several good
applications in 1988. We see excellent progress as well as the need for more time and
results. We are very optimistic about service award winners in the future.
4.
Did the award to these companies mean they are the best in the U.S.?
The award winners are truly excellent companies. However, any competition is
defined by who applies. In this case, the judges held to a very high standard and sought
examples of outstanding total quality management. We give the winners credit for very
high levels of excellence.
OCT-26-1989 15:27 FROM NIST DIRECTOR'S OFFICE
TO
4566218
P.08
5.
In judging customer satisfaction, did you check Consumer Reports, for example?
No. This competition was not an evaluation of products or services; the award is
for total quality management. Companies are asked to provide information on products
and/or services in several places in the application, with weight given to objective reports
and surveys. Companies are asked for detailed information on customer dealings and
complaints.
6.
There is a $1,500 application fee. Isn't that high, and doesn't it make it unlikely
that small companies will be able to apply?
This is not a federally funded program. The Foundation for the award uses
privately raised funds to pay for publications, reports, examiner training, awards, and the
award ceremony. The fees charged to applicants pay for review and feedback. In fact, the
cost to companies at market rates would be $6,000 to $10,000 per application. This cost
was held down because of volunteers and the small reimbursement. Many companies have
told us that they value this "health check', and feel that the experience was worth the
cost. We heard very few complaints about the fee from small companies, and do not
believe it kept the better applicants away.
7.
What was the exact connection between the examiners, overseers, and winning?
None. The examiners and overseers found out today who won. We followed strict
conflict of interest rules. The Foundation and overseers had no influence on the decision
and no knowledge about the winners until today. The examiners had limited involvement
and assignments were carefully made to avoid any conflict of interest.
8.
How is this program different from the Japanese Deming Award? Is this just a
U.S. version?
The basic purposes of both awards are the same: to promote recognition of quality
achievements and to raise awareness of the importance and techniques of quality. The
U.S. award:
is more results and service oriented;
reflects the diversity of our society and depends upon the broad involvement
of many different professional and trade groups;
provides special credits for innovative approaches to quality;
includes a strong customer focus; and
stresses the importance of information transfer.
OCT-26-1989 15:27 FROM NIST DIRECTOR'S OFFICE
TO
4566218
P.09
9.
What about quality in government?
Many efforts have been started by the government. The most recent is the Federal
Quality Institute created in June of this year.
10.
Could you give a breakout of minority and women-owned businesses that submitted
applications?
We did not ask companies to identify themselves by these categories, nor do we
plan to in the future. Quality is not a function of these categories.
11.
When can we expect to see improvements in quality in American companies?
American companies are making improvements, but the competition is not standing
still either. Overall, multinational companies seem more attuned to the importance of
quality and we think that will spread to the U.S. This award should help.
12.
Will you choose new examiners each year? What about the learning curve?
We will have some turnover and some expansion. We feel that alumni will help
both to promote the program and be effective users of the quality criteria in their own
companies.
TOTAL P.09
THE WHITE HOUSE
WASHINGTON
SCHEDULE OF THE PRESIDENT
FOR
WASHINGTON, D.C.
THURSDAY, NOVEMBER 2, 1989
EVENTS:
Private Meeting with Secretary Mosbacher
Staff Photo with Board of Trustees of Malcolm Baldrige National
Quality Awards
Presentation of 1989 Malcolm Baldrige National Quality Awards
DRESS:
Men
- Business Suit
Women
- Day Dress
CONTACT:
Office of Presidential Advance
John G. Keller, Jr.
- 202/456-7565
Trip Coordinator
Lucy Muckerman
- 202/456-7565
ADVANCE:
Kim Kimball
- LEAD
Steven Ross
- PRESS
Vincent O'Neill
- USSS
David Bonwit
- MIL. AIDE
Jerry George
- WHCA
WEATHER:
Partly Cloudy, Low 60's
10:22 am
THE PRESIDENT, accompanied by Secretary Mosbacher,
arrives Annex Area of Malcolm Baldrige Great Hall
and begins participation in Staff Photo.
10:24 am
THE PRESIDENT concludes participation in Staff
Photo and, accompanied by Secretary Mosbacher,
proceeds to Holding Room.
10:25 am
THE PRESIDENT, accompanied by Secretary Mosbacher
and Mrs. Midge Baldrige, arrives Holding Room and
holds briefly.
10:28 am
THE PRESIDENT, accompanied by Secretary Mosbacher,
departs Holding Room and proceeds to Off-Stage
Announcement Area.
10:29 am
THE PRESIDENT, accompanied by Secretary Mosbacher,
arrives Off-Stage Announcement Area and holds
briefly.
EVENT:
PRESENTATION OF 1989 MALCOLM BALDRIGE NATIONAL
QUALITY AWARDS
OPEN PRESS
RUFFLES AND FLOURISHES
OFF-STAGE ANNOUNCEMENT
HAIL TO THE CHIEF
BRIEF REMARKS
AWARDS PRESENTATION
10:30 am
THE PRESIDENT, accompanied by Secretary Mosbacher,
is announced onto Stage, proceeds to Seat and is
seated.
Page Three
10:31 am
THE PRESIDENT is introduced for Brief Remarks by
Secretary Mosbacher.
10:33 am
THE PRESIDENT gives Brief Remarks.
10:38 am
THE PRESIDENT concludes Brief Remarks begins
participation in Awards Presentation.
10:43 am
THE PRESIDENT concludes participation in Awards
Presentation.
10:44 am Secretary Mosbacher concludes Program.
10:45 am
THE PRESIDENT, accompanied by Secretary Mosbacher,
departs Stage and proceeds to Holding Room.
10:46 am
THE PRESIDENT, accompanied by Secretary Mosbacher,
arrives Holding Room and holds briefly.
10:48 am
THE PRESIDENT departs Holding Room and proceeds to
Motorcade.
10:49 am
THE PRESIDENT boards Motorcade and departs
Department of Commerce en route White House.
MOTORCADE ASSIGNMENTS:
Lead
J. Parmer
Spare
T. McBride
Doctor
LIMO
THE PRESIDENT
Page Four
Follow Up
Control
Gov. Sununu
S. Rogich
Mil. Aide
Support
M. Fitzwater
Official Photographer
Medic
Staff I
E. Rogers
D. Bates
Press Van I
J. Allison
Press Van II
(Drive Time: 3 Minutes)
10:52 am
THE PRESIDENT arrives White House.
Page Five
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