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Originally Processed With FOIA(s): FOIA Number: S S FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: George H.W. Bush Presidential Records Collection/Office of Origin: Speechwriting, White House Office of Series: Speech File Backup Files Subseries: Chron File, 1989-1993 OA/ID Number: 13841 Folder ID Number: 13841-010 Folder Title: Malcolm Baldridge Quality Awards 12/14/92 [OA 7583] Stack: Row: Section: Shelf: Position: G 26 23 2 3 MALCOLM BALDRIGE QUALITY AWARDS MALCOLM BALDRIGE GREAT HALL, D.O.C. MONDAY, DECEMBER 14, 1992 \ 11:30 A.M. THANK YOU, SECRETARY FRANKLIN. LET ME FIRST RECOGNIZE OUR BALDRIGE FOUNDATION TRUSTEES, OUR PRIVATE SECTOR EXAMINERS AND JUDGES AND ALL THOSE WHO COORDINATED THIS YEAR'S BALDRIGE AWARDS. ALSO, IT IS MY I also want to recognize Members 00 congress SPECIAL PRIVILEGE To SALUTE MEMBERS OF THE BALDRIGE FAMILY WITH US TODAY. - 2 - I ALWAYS LOOK FORWARD TO THIS YEARLY AWARDS CEREMONY. AN OPPORTUNITY TO HONOR INDUSTRY'S BEST. AND A CHANCE To REVISIT THE LEGACY OF AN EXTRAORDINARY MAN -- MALCOLM BALDRIGE. I REMEMBER A STORY PRESIDENT REAGAN LOVED To TELL OF THE DAY HE PHONED MAC TO ASK HIM To JOIN HIS CABINET. - 3 - HE WAS TOLD BY HIS WIFE, MIDGE, THAT HE'D HAVE TO CALL BACK LATER: MAC WAS OUT ON HIS HORSE ROPING AND COULDN'T COME TO THE PHONE. THAT WAS MAC. HE WAS A MAN WHOSE COLLECTION OF BELT BUCKLES WAS THE ONLY THING THAT COULD OUTNUMBER HIS MANY ACHIEVEMENTS. - 4 - IN A HAND-TOOLED WESTERN BELT AND A PIN-STRIPE SUIT, MAC WAS THE CONNECTICUT COWBOY, A MAN WHOSE NAME IS NOW ENSHRINED IN THE COWBOY HALL OF FAME -- AND THE ONLY GUY I KNEW WHO'D COMPLAIN OF SADDLE SORES FROM SITTING AT A DESK TOO LONG. // - 5 - HE USED TO SAY 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. THAT WAS TRUE OF MAC. WHEN HE TALKED BUSINESS, HE MEANT BUSINESS. AND WHEN HE TALKED OF MAKING AMERICA'S PRODUCTS SECOND TO NONE, YOU LISTENED. - 6 - THE STANDARDS OF EXCELLENCE MAC EMBODIED ARE STILL VERY MUCH WITH US. FAIRNESS, HONESTY, TENACITY. THESE WERE HIS YARDSTICKS. THE SAME YARDSTICKS WE USE TODAY IN LOOKING FOR THE VERY BEST THAT AMERICAN INDUSTRY HAS TO OFFER. AND THIS YEAR, WE HAVE FOUND THEM IN FIVE EXCEPTIONAL COMPANIES. - 7 - NINETY COMPANIES, THIS YEAR, DECIDED THEY WERE TOUGH ENOUGH TO TAKE THE BALDRIGE TEST. THOUSANDS -- ROUGHLY 175,000 OTHERS -- USED THE BALDRIGE CRITERIA AS AN INTERNAL TEST, AS A WAY TO BE TOUGH ON THEMSELVES. A FEW OF OUR PAST WINNERS, LIKE MOTOROLA AND IBM, HAVE EVEN GONE so FAR AS TO URGE THEIR SUPPLIERS TO FOLLOW THE BALDRIGE CRITERIA. - 8 - WHAT THIS TELLS US IS SIMPLE: AMERICA IS NUMBER ONE BECAUSE IT DEMANDS NOT ONLY THE BEST FOR ITSELF, BUT ALSO FROM ITSELF. // AND NOW TO THIS YEAR'S WINNERS. SOME MIGHT THINK THE COMMERCE DEPARTMENT OFFERED A TWO-FOR-ONE DEAL WITH AT&T -- BUT NOT so. - 9 - THOUGH BOTH TRANSMISSION SYSTEMS AND UNIVERSAL CARD SERVICES ARE DIVISIONS OF AT&T, THEY ARE TWO SEPARATE BUSINESSES, WHO SHARE ONE COMMON GOAL -- A COMMITMENT TO QUALITY. AT&T CHAIRMAN ROBERT ALLEN SAID OF THIS COMMITMENT: "THE REAL CHALLENGE IS TO DEFINE QUALITY NOT FROM OUR OWN PERSPECTIVE, BUT FROM THE CUSTOMER'S.' - 10 - THIS BOTH DIVISIONS HAVE DONE. TRANSMISSION SYSTEMS BUSINESS UNIT DEDICATES ITSELF NOT ONLY TO ITS CUSTOMERS' SHORT-TERM NEEDS, BUT ITS LONG-TERM NEEDS AS WELL. WITH THE INPUT OF MORE THAN 7500 EMPLOYEES AT NINE U.S. SITES, TRANSMISSION SYSTEMS HAS INITIATED PROGRAMS TO PREDICT WHAT NEW TECHNOLOGIES WILL BE NEEDED TO MEET THEIR CUSTOMERS' LONG-TERM GOALS. - 11 - IN SLIGHTLY MORE THAN 3 YEARS, TRANSMISSION SYSTEMS HAS NEARLY DOUBLED INTERNATIONAL SALES AND NOW SELLS SYSTEMS TO MORE THAN 50 COUNTRIES. THAT'S A LOT OF SATISFIED CUSTOMERS. UNIVERSAL CARD SERVICES HASN'T BECOME A BENCHMARK OF OTHER COMPANIES BY ACCIDENT, BUT BY EFFORT -- TOP PERFORMANCES BY ALL OF ITS 2500 EMPLOYEES. - 12 - UNIVERSAL CARD LED ITS CHARGE TO EXCELLENCE BY CENTRALIZING THEIR BUSINESS AROUND ONE KEY PRINCIPLE: "DELIGHT THE CUSTOMER." AND IT SEEMS THEY ARE, INDEED, DELIGHTED. 98% OF THEIR CUSTOMERS RATE OVERALL SERVICES AS BETTER THAN THE COMPETITION. 98%. [[THAT'S ONE POLL I COULD HAVE USED ABOUT A MONTH AGO. //]] - 13 - IT'S NOT OFTEN THAT A SMALL BUSINESS MEANS BIG BUSINESS, BUT IT'S TRUE FOR THE GRANITE Rock COMPANY. WITH THE INITIATION OF THEIR TOTAL QUALITY PROGRAM, GRANITE Rock HAS EXCEEDED ITS INDUSTRY STANDARDS FOR HIGH QUALITY AND UNMATCHED SERVICE. - 14 - RATHER THAN FOLLOW A WELL-WORN PATH, GRANITE Rock CHOSE TO CHART ITS OWN WAY -- A JOURNEY THAT HAS BROUGHT THEM HERE TODAY -- AN AWARD- WINNING COMPANY THAT DEFINES SUCCESS IN THREE LITTLE WORDS: "ANOTHER SATISFIED CUSTOMER." - 15 - RITZ-CARLTON WON 121 QUALITY-RELATED AWARDS IN 1991, BUT ASK ANY EMPLOYEE HOW THEY GAUGE THEIR SUCCESS AND THEY'LL SAY -- THE GOLD STANDARDS -- THE RITZ-CARLTON'S BIBLE FOR PREMIUM SERVICE. WITH ALMOST 12,000 EMPLOYEES, THE RITZ- CARLTON HAS IMPLEMENTED A RIGOROUS QUALITY PROGRAM THAT SEEKS "A MEMORABLE VISIT" FOR EVERY GUEST. - 16 - THIS LUXURY HOTEL BUSINESS KNOWS THAT A MINT ON THE PILLOW ISN'T ENOUGH TO KEEP A CUSTOMER COMING BACK. IT'S THE PRINCIPLE "SERVICE MUST BE EXCELLENT IF IT IS ANYTHING" THAT HAS EARNED RITZ-CARLTON ONE OF THE MOST LOYAL FOLLOWINGS IN THE TRAVEL AND TOURISM INDUSTRY. FOR TEXAS INSTRUMENTS DEFENSE SYSTEMS & ELECTRONICS GROUP, ITS BEST PRODUCT IS ALWAYS SURPASSED BY ITS NEXT INNOVATION. - 17 - MAC USED TO CALL THIS KIND OF INVENTIVENESS "YANKEE INGENUITY." [[I'M NOT SURE A TEXAS- BASED COMPANY COTTONS TO BEING CALLED "YANKEE" -- BUT INGENIOUS, I THINK THEY'LL ACCEPT. //1] FORMED DURING WORLD WAR II, THIS T.I. SUBSIDIARY HAS GROWN TO BECOME THE NATION'S EIGHTH LARGEST DEFENSE ELECTRONICS CONTRACTOR. - 18 - WE KNOW FROM THE SUCCESS OF DESERT STORM, THAT IN MATTERS OF ADVANCED WEAPONRY, QUALITY IS KEY. AND WE KNOW, Too, FROM THE SUCCESS OF DESERT STORM, THAT T.I.'s CONTRIBUTIONS TO THIS EFFORT WERE INVALUABLE. IN TODAY'S COMPETITIVE GLOBAL MARKETPLACE, QUALITY OF SERVICE AND QUALITY OF GOODS TAKES ON TOP PRIORITY IN AMERICAN BUSINESS. - 19 - PREMIUM STANDARDS ARE NO LONGER LOFTY GOALS, BUT VITAL COMPONENTS OF EVERY BASIC BUSINESS STRATEGY. THIS YEAR'S BALDRIGE AWARD WINNERS KNOW THAT QUALITY STANDARDS DO NOT IMPEDE SUCCESS, THEY ENCOURAGE IT. MAC WOULD AGREE. - 20 - EACH TIME WE REVISIT OUR MEMORIES OF MAC BALDRIGE AT THIS CEREMONY, I'M REMINDED OF THE WISDOM HE USED TO IMPART MOST OFTEN -- ALWAYS, IN ANYTHING AND EVERYTHING, RISE TO THE HIGHEST STANDARD. THIS YEAR'S MALCOLM BALDRIGE QUALITY AWARD WINNERS HAVE ALL DONE JUST THAT. - 21 - CONGRATULATIONS. MAY GOD BLESS YOU ALL AND THE UNITED STATES OF AMERICA. # # # am. 1 Members of Congress No cab members yet Secretary Franklin Private Sector Examiners and Judges Foundation Trustees Baldrige Family Members (wife will not be there) Accepting for their companies: AT&T TSBU -- Greg Hughes, President Texas Instruments -- Jerry Junkins, Chairman, President and CEO AT&T Universal Card -- Paul Kahn, President and CEO Ritz-Carlton -- Horst Schulze, President and CEO Granite Rock Company -- Bruce Woolpert, Co-President and CEO Did Didnotinelude not include of Congress Jam Administration of George Bush, 1989 / Nov. 2 eting on the Uruguay round ministers of the quadrilat- the Associate Deputy Administrator for Lo- Deputy Director of the Veterans Adminis- es (U.S., Canada, and Japan) gistics at the Veterans Administration. Prior tration for Logistics. .S on November 12. to this, she served in several other capac- Ms. Livingstone graduated from the Col- ities at the Veterans Administration, includ- lege of William and Mary (A.B., 1968), the e Multilateral Development ing Associate Deputy Administrator for University of Montana (M.A., 1972), and the rts to Encourage Meaning- Management, 1985-1986, and Associate Fletcher School of Law and Diplomacy licy Reforms: Consult with Deputy Administrator for Logistics, 1985. (M.A., 1973). She was born January 13, eral development banks to From 1981 to 1985, Ms. Livingstone served 1946, in Carthage, MO. Ms. Livingstone is r efforts to work with the as the Executive Assistant to the Associate married and currently resides in Washing- utries to promote meaning- ton, DC. cy reforms. Nomination of Abraham N.M. Shashy, Jr., To Be Assistant General Midland Community Counsel of the Treasury November 1, 1989 The President today announced his inten- School of Law, 1985-1986; adjunct profes- nderful example of one tion to nominate Abraham N.M. Shashy, Jr., sor of taxation at New York University other. So, you've respond- to be Assistant General Counsel of the School of Law, 1977-1984; instructor of tax- V proud. Treasury (Chief Counsel for the Internal ation at New York University School of And as for you, Jessica- Revenue Service). He would succeed Wil- Law, 1975-1976; and instructor at the Uni- S my handkerchief? liam F. Nelson. versity of Florida College of Law, 1974. d are you now? Since 1984 Mr. Shashy has served as a Mr. Shashy graduated from the University partner with the firm of Jones, Day, Reavis of Florida (B.S., 1970), the University of nt spoke at 1:30 p.m. in and Pogue in Dallas, TX. Prior to this, he m at the White House. was a partner with Kronish, Lieb, Shainswit, Florida College of Law (J.D., 1973), and Weiner and Hellman in New York, 1981- New York University School of Law (LL.M., ender accepted the award 4, in recognition of the 1984, and an associate, 1976-1981. In addi- 1975). He was born January 13, 1950, in tion, he served as an adjunct professor of Ocala, FL. Mr. Shashy is married, has two onse to the crash of ight 232 on July 19. The taxation at Southern Methodist University children, and resides in Dallas, TX. TX, established the award inary community volun- ïed by the rescue of Jessi- an abandoned well in Remarks at the Presentation Ceremony for the Malcolm Baldrige it held 3-year-old Jessica National Quality Awards ne ceremony. In his re- t to Senator Charles E. November 2, 1989 resentative Fred Grandy Thank you, Secretary Mosbacher, for the spotted Strom-I know I did-over here. warm welcome. It's great to be back across And it's a little hard to see, but Jesse Helms the street, almost, at this wonderful Depart- was to be here, Congressmen Sherry Boeh- ment. I first want to salute the Baldrige lert, Don Ritter. George Brown, I do see, an Assistant family-a special hello to Midge. Of course, Howard Coble, Doug Walgren, and Nancy I'm délighted to see the Secretary of the Johnson. And if I missed a few-Alec Mc- Treasury here and Ambassador Hills; able Millan, I think. And I can't see who else members of my Cabinet sitting next to we've got over there, but nevertheless, wel- them; Dr. Bromley, our Science Advisor, come to the Members of Congress, whose who has a keen interest in the success of ons and Logistics. She support is absolutely essential for the work- W. Shannon. the work of this Department. ings of the Commerce Department. vingstone has served as I want to salute Deputy Secretary Murrin In just a few moments, it will be my and Under Secretary Betti. And I think I pleasure to present awards named after a 1441 Nov. 2 / Administration of George Bush, 1989 great public servant and a close and dear learned to see foreign competition not as an friend, Malcolm Baldrige. So, let me just say excuse to close doors and raise barriers but a few words about Mac. He had a zest for as an incentive to renew our own commit- life-Nancy, I didn't see you-had a zest for ment to excellence. life, love of family, and a love of country American managers have reconsidered that was uncommon. He was an outstanding every time-honored belief, every traditional Secretary of Commerce for 6½ years, and practice, every customary procedure; and he was also an outstanding friend. Mac's they've embraced what works and rejected word of honor-as those of you who worked the past. They've studied examples of inno- with him-was his bond, as good as a $20 vation from home and abroad and adopted gold piece. only the best. And we now know the result And he never quite fit any mold. In this of this historic reassessment: When it comes town, they always try to make you fit into some mold. Baldrige never quite fit the to meeting the competition, America is back in business. mold. He was the president of a very suc- cessful company who spent a lot of his time We're here today to honor two companies with volunteer firemen when his wife that are leading this resurgence. They're wasn't doing that kind of work. He was the leading the resurgence in American busi- son of the East who rode horses and loved ness leadership. Most companies catch hell his place in New Mexico. He felt at home from the competition, but these two compa- with cowboys because he roped with them nies are in the lead because no competitor all of his life. You'd never have known it gave them a tougher time than they gave from his friendly, easygoing manner, but he themselves. Of course, in business, success is was also a bit of a perfectionist, in word and its own reward. And yet all American firms deed. benefit by having a standard of excellence As a leader in business, Mac strived for to match and perhaps, one day, to surpass. quality in products; as Commerce Secre- For 1989 there can be no higher standard tary, for quality in public policies. Even the of quality management than those provided language-some of you may well remem- by the winners of the Malcolm Baldrige Na- ber, to your horror-the language of his tional Quality Award: Milliken & Company memos was lean and exact. In fact, he had a and the Xerox Corporation. special computer software program for Both of these manufacturing firms were Commerce Department documents, one well-established leaders in their markets, that automatically weeded out jargon like yet both were being steadily squeezed out impacted, viable, infrastructure. [Laughter] by the intense foreign and domestic compe- Sort of Gramm-Rudman cut of the English tition. In the midst of this crisis, the men language, if you will. [Laughter] and women of these companies found But like all perfectionists, he knew that within themselves the will to make a pains- perfection is not reaching the attainable. taking reassessment and the drive to win Rather, it's a never-ending quest for the back that market share. Both companies unattainable. His life was such a quest, a life started down this path of reassessment with whose legacy leaves us with a profound in- a simple premise: In business, there is only sight: A truly successful man or woman is one definition of quality-the customer's someone who has, indeed, served others. definition. And then they proceeded from Companies, like people, are successful this one premise to restructure their pro- only to the extent to which they provide duction and marketing plan. Sounds simple. service. This is true for all business, from But I know, as a former tiny businessman the humblest mom-and-pop operation to myself, how difficult it is to restructure a the largest corporation. The improvement firm from top to bottom. And today's win- of quality in products and the improvement ners know what is possible when a firm of quality in service-these are national pri- restructures itself from the bottom up. They orities as never before. In recent years, know that a company can no longer afford Americans have felt the sting of fierce com- to regard employees as automatons in a pro- petition on a global scale, and we've duction line. They know that a company 1442 Administration of George Bush, 1989 / Nov. 2 reign competition not as an must rely on the intelligence, judgment, excuses attitude. an aggressive impatience oors and raise barriers but and good character of the people) it em- with the status quo even in the best of 0 renew our own commit- ploys. times. And it's this attitude, more than any- ce. And there are as many successful forms of thing else, that is responsible for the cre- nagers have reconsidered management as there are successful compa- ation of wealth and jobs that we have seen ed belief, every traditional nies. But for these two companies, success over the last 7 years. ustomary procedure; and came when they developed their human as In these years. our total national wealth 1 what works and rejected well as their technological potential. Milli- has grown by almost a third, and more than studied examples of inno- ken, for example, a 125-year-old textile 20 million new jobs created. And we are and abroad and adopted manufacturer in South Carolina-but its still enjoying the rewards of what has d we now know the result management style is sheer 21st century. proven to be the longest peacetime expan- ssessment: When it comes Milliken scrapped the old management hi- sion in American history. So, given the right competition, America is erarchy in favor of what they call a flat policies, and a reduced capital gains tax management structure-good thing they're would be one-Congress, I hope you're lis- not a tire company-|laughter]-flat man- y to honor two companies tening-this expansion will continue. And this resurgence. They're agement structure. Milliken even gave a new title to its employees, calling them as- given the right tools, the American people gence in American busi- sociates. And this is no hollow accolade for can reach even greater heights. The poten- lost companies catch hell tial of this nation is as boundless as the public relations. Every Milliken employee, on, but these two compa- I'm told, truly is an associate. In fact, any imagination and drive of the American d because no competitor Milliken worker has the power to halt that people. All we have to do for our citizens is her time than they gave production line if he or she detects a prob- what these two companies have done for irse, in business, success is lem in quality or safety. their employees: give them the freedom to id yet all American firms Our other winner takes a similar ap- do what they do best-freedom to imagine, a standard of excellence proach with its "Team Xerox" philosophy. freedom to create. and freedom to excel. aps, one day, to surpass. Xerox employees are given the authority Our winners had such freedom, and they 7 be no higher standard that they have to have, that they need, to certainly made the most of it. ent than those provided make day-to-day decisions. And they are, I give my heartiest congratulations to he Malcolm Baldrige Na- the company says, expected to take the ini- Roger Milliken, who is here, and to David rd: Milliken & Company tiative in finding and fixing problems-and Kearns. And I give my heartiest congratula- oration. they do. While every manager works, every tions to your employees, your associates. anufacturing firms were worker is managing. And thank you all for being here to honor ders in their markets, One of the best things about this award is these two successful stories. Thank you g steadily squeezed out that it allows successful companies to share very, very much. gn and domestic compe- what they have learned to set an example. of this crisis, the men Perhaps these two companies ought to Note: The President spoke at 10:34 a.m. in nese companies found merge-and be careful of the antitrust. Malcolm Baldrige Hall at the Commerce he will to make a pains- [Laughter] Can you imagine it? Your ward- Department. In his remarks, he referred to it and the drive to win robes wouldn't just be coordinated; it would Secretary of Commerce Robert A. Mos- share. Both companies be collated. [Laughter] bacher; Malcolm Baldrige's widow, Marga- ath of reassessment with Many firms will learn a great deal from ret (Midge); Secretary of the Treasury Nich- business, there is only their example. Others will need to follow olas F. Brady; U.S. Trade Representative juality-the customer's their own path. But to those who say that Carla A. Hills; Deputy Secretary of Com- 1 they proceeded from we have lost our edge, that the days are merce Thomas J. Murrin; Under Secretary of restructure their pro- past when "Made in America" meant the Defense John A. Betti: Senators Strom Thur- ng plan. Sounds simple. best, I say: Tell that to the people of the mond of South Carolina and Jesse Helms of rmer tiny businessman Milliken plant in Spartanburg, South Caroli- North Carolina: Roger Milliken, chairman it is to restructure a na. Tell that to the Xerox teams in up- and chief executive officer of Milliken & tom. And today's win- state-up in Monroe County, New York. Co.; and David T. Kearns, chairman and possible when a firm Quality products and service is no acci- chief executive officer for business and in the bottom up. They dent. It's the result of a certain can-do, no- products systems for Xerox Corp. y can no longer afford as automatons in a pro- now that a company 1443 Administration of George Bush, 1990 / Dec. 13 Program for the Excerpt of a White House Fact Sheet on the Soviet Union and International Financial Institutions December 12, 1990 luntary organizations The President has proposed a special as- al with the institutions and other countries eliver, and distribute sociation of the Soviet Union with the Inter- and to develop with them the necessary medical and pharma- national Monetary Fund (IMF) and the new arrangements. in the Soviet Union. World Bank that will give Moscow access to We believe it is best for the Soviet Union y in Moscow, working the economic and financial expertise in to establish such a relationship with these orities in the central those institutions. He has asked Secretary of institutions before addressing the issue of at the republic and the Treasury Brady, as U.S. Governor of the full membership. th U.S. private volun- IMF and World Bank, to pursue this propos- S already in the Soviet K to identify specific al assistance priorities. Remarks at the Presentation Ceremony for the Malcolm Baldrige the program and the be provided will National Quality Awards detailed assessment of December 13, 1990 of private interest in May I, too, salute the Deputy Secretary, Mac Baldrige. What a great guy. ice will be targeted at Mr. Murrin-and of course, the Secretaries He was-you know, some forget this, but e population needing from the other Cabinet Departments that Mac, prior to becoming Secretary of Com- disposable syringes are here. I'm delighted to see all of you. I merce, was a true leader in business. And r diabetics, drugs for want to single out our Science Advisor that when it came business, he really did under- tc.). was to be here, Allan Bromley-I'm not stand that quality cannot be assured with sure he is-but in any event, very much some slogan or an ad campaign. And he interested in this whole field of competi- knew that it begins with winning and keep- tiveness. Dick Truly of NASA-a keen stake ing business. And it begins with understand- in seeing the quality of all performed. I Food ing that only customers can define quality. want to salute the Cadillac general manag- And in short, it begins and ends with the er, John Grettenberger; John Akers, who is the president and CEO of IBM, chairman of unsentimental judgment of the market- the board; the president and chairman of place. the board of Federal Express, who's with us, Once quality separated winning firms ng system, consider al- Fred Smith-we'll be seeing these all in a from sluggish ones. That time has long since ulnerable populations, bit; and John Wallace, from Houston, who is passed. And with the fierce competition of asures to improve the the CEO of the Wallace Company. the international market, quality means sur- the Soviet people. And then I also want to salute the Mem- vival, and nothing less. lude experts from the bers of Congress who are good enough to The renewed commitment by America to niversities, private vol- be with us today, members of the Baldrige quality can be seen in the explosion of ap- and the U.S. Govern- family. How I love Mac Baldrige. Welcome plications to receive the Baldrige Award. In ers will work closely home! And congratulations especially to just a few years, the National Quality Award ent officials, as well as these winners. And I'm proud to see some has literally become the standard of busi- c governments. who were honored last year. ness excellence. And the renewed spirit of I want to single out Bob Mosbacher here, excellence in business, of making quality an who is doing a splendid job as our Secretary integral part of America's corporate strate- of Commerce-a quality job, I might say. gy, has truly, I believe, made us more com- Quality is it. Quality for our administration. petitive in the international arena. Exports And we're here today to present these four have already increased nearly 8 percent awards, as I say, named for another man of from year-ago levels, and the figure keep quality, and that again is former Secretary on rising. 1789 Dec. 13 / Administration of George Bush, 1990 To compete and win in the international quality begins with the morale and idea of arena, United States companies are simply its people. Cadillac executives, plant manag- going to have to offer product and services ers, or union representatives-all have that are world-class. And that's the purpose worked together to help win this award. behind this award. And it's a national pur- Quality councils are at work at each of the pose. company's seven major facilities, supported So, we're here today not only to honor by hundreds of company teams. And Cadil- these four deserving firms but to promote lac shows that labor-management coopera- an awareness of quality in American busi- tions indeed yields quality results. ness and to share successful management The next recipient is Federal Express, the strategies-strategies that can, indeed, first large service company to earn this sharpen America's lead in the world mar- award. This is a critical recognition because ketplace. Each of these companies offers so much of our work force and our national unique lessons. But these four companies wealth comes from the service sector. And also found success in a few basic principles. Federal Express is simply nothing less than They learned that quality control cannot be a model for all other service corporations. imposed from top to bottom. They under- From ground zero in 1973, Federal Express stand that quality management must cut has shot up to one of the world's largest through organization charts, across depart- transportation companies, with more than ments and offices. A quality culture does 90,000 employees making 1.5 million ship- not depend on titles and job descriptions. ments a day. As with IBM Rochester and And finally, these winning companies also Cadillac, the secret of success for Federal realize that they are only as strong as the Express is its training and reliance on its intelligence, judgment, and character of employees. With a no-layoff philosophy and their employees. extensive training, Federal Express attracts This year, the Malcolm Baldrige National Quality Award is going to all three award top-notch, motivated people. In fact, during the last 5 years, nearly 100 percent of Fed- categories: manufacturing, small business eral Express employees surveyed responded and, for the first time, service. The winners with us today were selected from a popula- that they were proud to be a part of their tion of American organizations that request- company. And that's why Federal Express delivers. And all American workers should ed more than 180,000 application guide- lines this year. And what I said of last year's feel they are as much a part of their compa- nies. honorees applies today: Most companies catch hell from the competition. But these And that brings me then to the Wallace companies are in the lead because no com- Company of Houston, Texas, the first small petitor gave them a tougher time than they service business to be recognized. This gave themselves. family-owned firm extends its family ap- Three of our winners are household proach to all of Wallace's 280 skilled and names. Let me start with IBM at Rochester, well-trained employees, people who think a company that proves that quality coupled of themselves as "associates." with employee training and education is The Wallace Company prove that quality simply good business. In fact, IBM Roches- is not just for the Fortune 500. This small ter spends five times-five times-the na- distributor of industrial goods not only sur- tional average on education and training- vived the recent rough economic times in and just one reason why IBM Rochester is Houston, it proved that even in tough times globally competitive. you can still commit to long-term improve- And the next recipient is another house- ments in quality. hold name, the first automotive company to In business, success is its own reward. But earn this award: Cadillac. And when many the men and women of these four firms companies speak of quality changes, they have given all Americans a standard of ex- speak of improvement in management. This cellence-a standard to emulate, a standard company speaks of a "culture change," a to surpass. And they have proven that qual- clear recognition that Cadillac knows that ity management is not just a strategy. It 1790 Administration of George Bush, 1990 / Dec. 13 h the morale and idea of must be a new style of working, even a new proud to be here to participate in this cere- 2 executives, plant manag- style of thinking. A dedication to quality mony. Thank you all. representatives-all have and excellence is more than good business. to help win this award. It's a way of life, giving something back to Note: The President spoke at 11:23 a.m. in re at work at each of the society, offering your best to others. the Grand Hall at the Department of Com- major facilities, supported And so, for all of that, you have my admi- merce. In his remarks, he referred to mpany teams. And Cadil- ration-my heartiest congratulations to Deputy Secretary of Commerce Thomas J. oor-management coopera- every single American worker that you rep- Murrin and Richard H. Truly, Administra- quality results. resent. And may I say to all of you, thank tor of the National Aeronautics and Space ent is Federal Express, the you and Merry Christmas. And I'm very Administration. e company to earn this ritical recognition because ork force and our national m the service sector. And Remarks at a Briefing on the Points of Light Foundation ; simply nothing less than ther service corporations. December 13, 1990 in 1973, Federal Express ne of the world's largest Thank you very, very much. A warm wel- munity problem-solving. npanies, with more than come to the White House. Merry Christmas! Of course, service to others is and has making 1.5 million ship- Happy holidays! We're beginning to get the been the mission of much of the nonprofit with IBM Rochester and spirit around here. And may I salute the community. But your challenge is to find a et of success for Federal Attorney General and thank him for his way to engage all of your members in serv- ining and reliance on its leadership and for his keen interest in the ice. To help engage all of your members in a no-layoff philosophy and subject that you've been discussing, that I'm service, the foundation is urging every insti- Federal Express attracts about to discuss. Because I am really de- tution to appoint Points of Light represent- ted people. In fact, during lighted to be here to help introduce the atives. And to ensure that every community early 100 percent of Fed- Points of Light Foundation to this impres- has multiple places to which individuals and 'oyees surveyed responded sive group of nonprofit organizations and institutions can turn for counsel about how roud to be a part of their State leaders and to announce three initia- to serve others and where to obtain service, at's why Federal Express tives designed to reduce barriers hindering the foundation is calling on a wide variety American workers should voluntary service efforts. of institution to become what we call Points much a part of their compa- Since our founding, America has been dis- of Light centers. tinguished among nations for the extraordi- As part of my commitment to advance S me then to the Wallace nary degree to which our people have vol- the Points of Light movement, I'm deter- ston, Texas, the first small untarily banded together to help those mined to help remove barriers to service. to be recognized. This among us in need. And today we're faced Now, no obstacle-no obstacle is more chill- m extends its family ap- with perhaps more pressing needs than at ing than the fear of personal liability and Wallace's 280 skilled and any time in our history-needs that many of the high cost of insurance to protect against ployees, people who think your organizations, the organizations repre- liability. Often programs are curtailed or "associates." sented here today, strive to meet year in those contemplated are not undertaken be- ompany prove that quality and year out. cause of the fear of personal liability-outra- e Fortune 500. This small The needs of our nation are so great that geous claims, often, about personal liability. lustrial goods not only sur- the Points of Light Foundation seeks to And I'm aware of the genuine interest that rough economic. times in make direct and consequential service volunteer leaders in this room have ex- d that even in tough times aimed at serious social problems central to pressed in limiting exposure to the risk of mit to long-term improve- the life and work of every American. To liability and the high cost of insurance. achieve this goal, most institutions will need And therefore, today I am announcing :cess is its own reward. But to adopt a new way of thinking. They must three new initiatives that will bring about omen of these four firms come to see solving these social problems as much-needed change. First, I call on the mericans a standard of ex- not just the responsibility of government nonprofit community to support a private, lard to emulate, a standard and nonprofit organizations. Institutions will nongovernmentally controlled national vol- hey have proven that qual- have to refine their missions to include the unteer risk management center, a central is not just a strategy. It engagement of all of their members in com- place to which volunteer organizations can 1791 Nix December 8, 1992 Draft Three BALDRIGE.1 PRESIDENTIAL REMARKS: MALCOLM BALDRIGE QUALITY AWARDS MALCOLM BALDRIGE GREAT HALL, DOC MONDAY, DECEMBER 14, 1992 11:30 A.M. [Acknowledgments] I always look forward to this yearly awards ceremony. An opportunity to honor industry's best. And a chance to revisit the legacy of an extraordinary man -- Malcolm Baldrige. I remember a story President Reagan loved to tell of the day he phoned Mac to ask him to join his Cabinet. He was told by Midge that he'd have to call back later: Mac was out on his horse roping and he couldn't come to the phone. That was Mac. He was a man whose collection of belt buckles was the only thing that could outnumber his many achievements. In a hand- tooled western belt and a pin-stripe suit, Mac was the Connecticut cowboy, a man whose name is now enshrined in the Cowboy Hall of Fame -- and the only guy I knew who'd complain of saddle sores from sitting at a desk too long. // He used to say 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. That was true of Mac. When he talked business, he meant business. And when he talked of making America's products second to none, you listened. The standards of excellence Mac embodied are still very much with us. Fairness, honesty, tenacity. These were his yardsticks. The same yardsticks we use today in looking for the very best that American industry has to offer. And this year, we have found them in five exceptional companies. Ninety companies, this year, decided they were tough enough to take take the Baldrige test. Thousands -- roughly 175,000 others -- used the Baldrige criteria as an internal test, as a way to be tough on themselves. A few of our past winners like Motorola and IBM have even gone so far as to urge their suppliers to follow the Baldrige criteria. What this tells us is simple: America is number one because it demands not only the best for itself, but also from itself. // And now to the winners themselves. Some might think the Commerce Department offered a two-for- one deal with AT&T -- but not so. Though both Transmission Systems and Universal Card Services are divisions of AT&T, they are two separate businesses, who share one common goal -- a commitment to quality. AT&T Chairman Robert Allen said of this commitment: "The real challenge is to define quality not from our own perspective, but from the customer's." This both divisions have done. Transmission Systems Business Unit dedicates itself not only to its customers' short- term needs, but its long-term needs as well. With the input of more than 7500 employees at nine U.S. sites, Transmission Systems has initiated programs to predict what new technologies will be needed to meet their customers' long-term goals. In slightly more than 3 years, Transmission Systems has nearly doubled international sales and now sells systems to more than 50 countries. That's a lot of satisfied customers. Universal Card Services hasn't become a benchmark of other companies by accident, but by effort -- top performances by all of its 2500 employees. Universal Card led its charge to excellence by centralizing their business around one key principle: "delight the customer." And it seems they are, indeed, delighted. 98% of their customers rate overall services as better than the competition. 98%. [[That's one poll I could have used a month ago. //]] It's not often that a small business means big business, but it's true for the Granite Rock Company. With the initiation of their Total Quality Program, Granite Rock has exceeded its industry standards for high quality and unmatched service. Rather than follow a well-worn path, Granite Rock chose to chart its own way -- a journey that has brought them here today -- an award-winning company that defines success in three little words: "another satisfied customer." Ritz-Carlton won 121 quality-related awards in 1991, but ask any employee how they gauge their success and they'll say -- the Gold Standards -- the Ritz-Carlton's bible for premium service. With almost 12,000 employees, the Ritz-Carlton has implemented a rigorous quality program that seeks "a memorable visit" for every guest. This luxury hotel business knows that a mint on the pillow isn't enough to keep a customer coming back. It's the principle "service must be excellent if it is anything" that has earned Ritz-Carlton one of the most loyal followings in the travel and tourism industry. For Texas Instruments Defense Systems & Electronics Group, its best product is always surpassed by its next innovation. Mac used to call this kind of inventiveness "Yankee ingenuity." [[I'm not sure a Texas-based company cottons to being called "yankee" -- but ingenious, I think they'll accept. //]] Formed during World War II, this TI subsidiary has grown to become the nation's eighth largest defense electronics contractor. We know from the success of Desert Storm, that in matters of advanced weaponry, quality is key. And we know, too, from the success of Desert Storm, that TI's contributions to this effort were invaluable. In today's competitive global marketplace, quality of service and quality of goods takes on top priority in American business. Premium standards are no longer lofty goals, but vital components of every basic business strategy. This year's Baldrige award winners know that quality standards do not impede success, they encourage it. Mac would agree. Each time we revisit our memories of Mac Baldrige at this ceremony, I'm reminded of the wisdom he used to impart most often -- always, in anything and everything, rise to the highest standard. This year's Malcolm Baldrige Quality Award Winners have all done just that. Congratulations. May God bless you all and the United States of America. # # # 10 minutes of remarks Building QAS Hall of the Americas 2:30 pon. Canada OHawa prompted DEC-07-1992 14:03 FROM NIST MBNQA TO 2024566218 P.01 Facsimile Cover Sheet Makelm Baldrige National Quality Award Malcolm Baidrige National Quality Award Office National Institute of Standards and Technology (NIST) Administration Building, Room A537 Gaithersburg, MD 20899 DATE: December 7, 1992 TO: Name: Michele Nix, Speech Writer Organization: White House Telephone #: 202-456-6218 FAX #: 202-466-7750 FROM: Name: JILL RUSPI Telephone #: 301-975-2715 FAX #: 301-948-3716 No. of Pages (incl. cover): 18 If all pages are not received, please call. Enclosed are: 1992 Winners Briefs Malcolm Baldrige National Quality Award Fact Sheet Contact Sheet for Malcolm Baldrige National Quality Award Winners Bio for Malcolm Baldrige Please let me know if I can be of any further help. DEC-07-1992 14:03 FROM NIST MBNQA TO 2024566218 P.02 Malcolm Baldrige National MALCOLM BALDRIGE Quality Award NATIONAL QUALITY AWARD 1993 FACT SHEET MALCOLM BALDRIGE NATIONAL QUALITY AWARD Public Law 100-107, the Malcolm Baldrige National Quality Improvement Act of 1987, signed by President Reagan on August 20, 1987, established an annual U.S. National Quality Award. The purposes of the Award are to promote awareness of quality excellence, to recognize quality achievements of U.S. companies, and to publicize successful quality strategies. The Secretary of Commerce and the National Institute of Standards and Technology (NIST, formerly the National Bureau of Standards) have responsibility to develop and administer the Award with cooperation and financial support from the private sector. THE AWARDS Up to two Awards may be given each year in each of three categories: manufacturing companies or subsidiaries service companies or subsidiaries small businesses Fewer than two Awards may be given in a category if the high standards of the Award Program are not met. The following Awards have been presented - 1988: Motorola, Inc.; Commercial Nuclear Fuel Division of Westinghouse Electric Corporation; and Globe Metallurgical, Inc. 1989: Milliken & Company; and Xerox Corporation's Business Products and Systems. 1990: Cadillac Motor Car Division; IBM Rochester; Federal Express Corporation; and Wallace Co., Inc. 1991: Marlow Industries; Solectron Corporation; and Zytec Corporation. 1992: AT&T Network Systems Group, Transmission Systems Business Unit; AT&T Universal Card Services; Granite Rock Company; Texas Instruments Incorporated, Defense Systems & Electronics Group; and The Ritz-Carlton Hotel Company. Recipients receive a medallion in a crystal base: Winning companies are required to share with other American organizations information about their successful quality strategies. ELIGIBILITY Businesses located in the United States may apply for Awards. Subsidiaries are defined as divisions or business units of larger companies. Subsidiaries must primarily serve either the public or businesses other than the parent company. For companies engaged in both services and manufacturing, classification is determined by the larger percentage of sales. Small businesses are independently owned with not more than 500 full-time employees. AWARD CRITERIA Seven areas are examined: (1) leadership; (2) information and analysis; (3) strategic quality planning; (4) human resource development and management; (5) management of process quality; (6) quality and operational results; and (7) customer focus and satisfaction. Applicants must address a set of examination items within each of these categories. Heavy emphasis is placed on quality achievement and quality improvement as demonstrated through quantitative data furnished by applicants. DEC-07-1992 14:04 FROM NIST MBNQA TO 2024566218 P.03 EXAMINATION PROCESS Each written application is evaluated by members of the Board of Examiners. High-scoring applicants are selected for site visits. Award recipients are recommended to the Secretary of Commerce by a panel of judges from among the applicants site visited. Applicants receive a written feedback summary of strengths and areas for improvement in their quality management. The American Society for Quality Control assists in the administration of the examination process. EXAMINERS The Board of Examiners is comprised of quality experts selected from industry, professional and trade organizations, and universities. Those selected meet the highest standards of qualification and peer recognition. Examiners must take part in a preparation program based upon the Criteria, the scoring system, and the examination process. Each fall applications are solicited from quality experts to serve as Examiners for the following year. The schedule for the 1993 Board is: 1993 Examiner Applications available September 1992 1993 Examiner Applications due November 3, 1992 1993 AWARD TIMETABLE Award Applications available December 1992 Award Eligibility Determination Forms due February 18, 1993 Award Applications due April 1, 1993 Award Application review/site visits April-October 1993 Site Visits September 7 - October 1, 1993 Award Ceremony Fall 1993 CONFIDENTIALITY All applications are confidential. Applicants are not expected to provide proprietary information about products or processes. Examiners are assigned to avoid conflicts of interest. Information on the successful strategies of Award recipients is released only after written approval is received from recipients. FEES Fees are set to cover some of the costs of review. Fees for 1993 include a nonrefundable payment of $50 that must accompany the Eligibility Determination Form. The written application review fee for manufacturing and service companies is $4000, while the fee for small business review is $1200. There is a separate fee of $1500 if Supplemental Sections are necessary. Separate site visit fees are set at the time the visits are scheduled. For applications or information, write or call: Malcolm Baldrige National Quality Award National Institute of Standards and Technology Administration Building - Room A537 Gaithersburg, Maryland 20899 TELE: 301-975-2036 FAX: 301-948-3716 11/92 DEC-07-1992 14:04 FROM NIST MBNQA TO 2024566218 P.04 Malcolm Baldrige 26th Secretary of Commerce Malcolm Baldrige was nominated to be Secretary of Commerce by President Ronald Reagan on December 11, 1980, and confirmed by the United States Senate on January 22, 1981. During his tenure, Baldrige played a major role in developing and carrying out Administration trade policy. He took the lead in resolving difficulties in technology transfers with China and India. Baldrige held the first Cabinet-level talks with the Soviet Union in seven years which paved the way for increased access for U.S. firms to the Soviet market. He was highly regarded by the world's most pre-eminent leaders. Leading the Administration's effort to pass the Export Trading Company Act of 1982, Baldrige was named by the President to chair a Cabinet-level Trade Strike Force to search out unfair trading practices and recommend ways to end those practices. He was the leader in the reform of the nation's antitrust laws. Baldrige's award-winning managerial excellence contributed to long-term improvement in economy, efficiency, and effectiveness in government. Within the Commerce Department, Baldrige reduced the budget by more than 30% and administrative personnel by 25%. Malcolm Baldrige Prior to entering the Cabinet, Baldrige was 1922-1987 chairman and chief executive officer of Scovill, Inc., Waterbury, Connecticut. Having joined Scovill in 1962, he is credited with leading its transformation from a financially troubled brass mill to a highly diversified manufacturer of consumer, housing, and industrial goods. Baldrige began his career in the manufacturing industry in 1947 as a foundry hand in an iron company in Connecticut and rose to the presidency of that company by 1960. During World War II, Baldrige served in combat in the Pacific as Captain in the 27th Infantry Division. He was born in Omaha, Nebraska and graduated from Yale University with a bachelor's degree in 1944. Baldrige worked during his boyhood as a ranch hand and earned several awards as a professional team roper on the rodeo circuit. He was a Professional Rodeo Man of the Year in 1980 and was installed in the National Cowboy Hall of Fame in Oklahoma City in 1984. Malcolm Baldrige died July 25, 1987 in a rodeo accident in California. His service as Secretary of Commerce was one of the longest in history. He is said to have been possibly the most colorful Secretary of Commerce and one of the most beloved. He is survived. by his wife Margaret and his two children. P.05 MALCOLM BALDRIGE NATIONAL QUALITY AWARD 1992 WINNERS 2024566218 COMPANY QUALITY CONTACT PUBLIC AFFAIRS CONTACT Louis E. -Monteforte, Manager Patricia Stortz AT&T NETWORK SYSTEMS GROUP Transmission Quality Planning Public Relations TRANSMISSION SYSTEMS BUSINESS UNIT 475 South Street, Room 2W-44 Morristown, NJ Morristown, NJ 07962-1976 TELE: 201-606-2478 MANUFACTURING TELE: 201-606-2488 FAX: 201-606-3307 FAX: 201-606-3363 or TO QUALITY HOTLINE: 1-800-682-7759 Robert A. Davis Bruce Reid AT&T UNIVERSAL CARD SERVICES Chief Quality Officer Media Relations 8787 Baypine Rd. Jacksonville, FL SERVICE Jacksonville, FL 32256 TELE: 904-443-8894 TELE: 904-443-8875 FAX: 904-443-8720 FAX: 904-443-8722 Bruce W. Woolpert Greg Diehi GRANITE ROCK COMPANY President and CEO Marketing Services P.O. Box 50001 Watsonville, CA FROM NIST MBNQA SMALL BUSINESS Watsonville, CA 95077-5001 TELE: 408-724-5611 TELE: 408-761-2300 FAX: 408-724-3484 Mike Cooney, Vice President Tony Geishauser TEXAS INSTRUMENTS INCORPORATED Quality Assurance Media Relations DEFENSE SYSTEMS P.O. Box 660246, M/S 3124 Dallas, TX & ELECTRONICS GROUP Dallas, TX 75266 TELE: 214-480-1417 TELE: 214-480-4800 FAX: 214-480-3281 MANUFACTURING FAX: 214-480-4880 DEC-07-1992 14:05 Patrick Mene Karon Cullen THE RITZ-CARLTON HOTEL COMPANY Corporate Director of Quality Corporate Dir. of Public Relations 3414 Peachtree Road, N.E. Atlanta, GA SERVICE Atlanta, GA 30326 TELE: 404-237-5500 TELE: 404-237-5500 FAX: 404-365-9643 FAX: 404-261-0119 MALCOLM BALDRIGE NATIONAL QUALITY AWARD P.06 PREVIOUS WINNERS COMPANY QUALITY CONTACT PUBLIC AFFAIRS CONTACT 2024566218 Rosetta Riley, Director Ann Sylvester CADILLAC MOTOR CAR COMPANY - - 1990 Continuous Improvement Process 2860 Clark Street General Motors Building Detroit, MI 48232 MANUFACTURING 3044 West Grand Blvd., TELE: 313-554-6818 Room 6-160 FAX: 313-554-5074 Detroit, MI 48202 TELE: 313-556-1965 FAX: 313-974-4933 TO QUALITY QUESTIONS & FEDERAL EXPRESS CORPORATION - 1990 Shirley Finley, Senior Specialist INFORMATION Media Relations Jean Ward-Jones, Manager 2005 Corporate Avenue SERVICE Quality Education & Administration Memphis, TN 38132 P.O. Box 727 TELE: 901-395-3463 Memphis, TN 38194-2142 FAX: 901-346-1013 or 395-4928 TELE: 901-395-4539 QUALITY SPEAKER SERVICE FAX: 901-395-4641 Sally Davenport, Senior Specialist Public Relations 2005 Corporate Avenue FROM NIST MBNQA Memphis, TN 38132 TELE: 901-395-3466 FAX: 901-346-1013 Norman Jennings, Quality Director Sherryl Hennessey, Public Relations GLOBE METALLURGICAL, INC. - 1988 P.O. Box 157 P.O. Box 157 Beverly, OH 45715 Beverly, OH 45715 SMALL BUSINESS TELE: 614-984-2361 TELE: 614-984-2361 FAX: 614-984-8695 FAX: 614-984-8695 DEC-07-1992 14:06 IBM Rochester MEDIA REQUESTS ONLY IBM ROCHESTER - - 1990 Center for Excellence Jon Iwata 3605 Highway 52 North Corporate Media Relations MANUFACTURING Rochester, MN 55901-7829 Old Orchard Road TELE: 507-286-5000 (HOTLINE) Armonk, NY 10504 FAX: 507-286-5010 TELE: 914-765-6630 FAX: 914-765-5099 COMPANY QUALITY CONTACT PUBLIC AFFAIRS CONTACT 2024566218 P.07 Joy Janco MARLOW INDUSTRIES - 1991 Baldrige Activities Coordinator 10451 Vista Park Road SAME AS QUALITY CONTACT SMALL BUSINESS Dallas, TX 75238-1645 TELE: 214-342-4293 FAX: 214-341-5212 Dr. Patrick C. Bowie Terry J. May MILLIKEN & COMPANY - - 1989 Vice President, Quality Director of Public Affairs P.O. Box 1926, M-186 P.O. Box 1926, MS-285 MANUFACTURING Spartanburg, SC 29304 Spartanburg, SC 29304 TELE: 803-573-2003 TO TELE: 803-573-2546 FAX: 803-573-2505 FAX: 803-573-2100 TOURS: Sandra Howell TELE: 803-573-1988 Richard Buetow Margot Brown MOTOROLA, INC. - 1988 Senior V. President & Dir. of Quality Manager, Media Relations 1303 East Algonquin Road 1303 East Algonquin Road MANUFACTURING Schaumburg, IL 60196 Schaumburg, IL 60196 TELE: 708-576-5516 TELE: 708-576-5304 FAX: 708-538-2663 FAX: 708-576-7653 FROM NIST MBNQA Margaret Smith Mike Peak, Principal SOLECTRON CORPORATION - - 1991 Marketing Program Specialist Peak Public Relations 777 Gilbraltar Drive 21710 Stevens Creek Blvd. MANUFACTURING Building #5 Suite 220 Milpitas, CA 95035 Cupertino, CA 95014 TELE: 408-956-6768 TELE: 408-446-0407 FAX: 408-956-6056 FAX: 408-446-0450 John W. Wallace DEC-07-1992 14:06 WALLACE CO., INC. - 1990 Chief Executive Officer P.O. Box 2597 SAME AS QUALITY CONTACT SMALL BUSINESS Houston, TX 77252-2597 TELE: 713-672-5803 FAX: 713-672-5815 MALCOLM BALDRIGE NATIONAL QUALITY AWARD PREVIOUS WINNERS (continued) 2024566218 P.08 COMPANY QUALITY CONTACT PUBLIC AFFAIRS CONTACT Carl Arendt, Mgr. Communications WESTINGHOUSE ELECTRIC CORP. Productivity and Quality Center COMMERCIAL NUCLEAR FUEL DIV. - 1988 SAME AS PUBLIC AFFAIRS CONTACT P.O. Box 160 Pittsburgh, PA 15230-0160 MANUFACTURING TELE: 412-778-5008 FAX: 412-778-5153 TO John G. Lawrence, Manager Samuel M. Malone, Jr., Manager XEROX CORPORATION National Quality Communications Office Quality Communications BUSINESS PRODUCTS & SYSTEMS - 1989 1387 Fairport Road, Building 1100 1387 Fairport Road, Bldg. 1100 Fairport, NY 14450 Fairport, NY 14450 MANUFACTURING TELE: 716-383-7502 TELE: 716-383-7534 FAX: 716-383-7517 FAX: 716-383-7517 Karen Scheldroup ZYTEC CORPORATION - - 1991 Baldrige Office 7575 Market Place Drive SAME AS QUALITY CONTACT MANUFACTURING Eden Prairie, MN 55344 FROM NIST MBNQA TELE: 612-941-1100 x104 FAX: 612-829-1837 KEY DATES FOR THE 1993 AWARD CYCLE DEC-07-1992 14:07 1993 Award Criteria Available December 1992 1993 Eligibility Forms Due March 1, 1993 1993 Award Applications Due April 1, 1993 1993 Site Visits Take Place September 7- - October 2, 1993 11/92 DEC-07-1992 14:07 FROM NIST MBNQA TO 2024566218 P.09 he Texas Instruments weapons, airborne radar systems, T Defense Systems & Elec- infrared vision equipment and Malcolm Baldrige tronics Group has made other electro-optic systems, and National total quality basic to Its electronic warfare systems, which Quality business. The Dallas-based altogether accounted for 95 per- Award maker of precision-guided weap- cent of 1991 revenues totaling ons and other advanced defense nearly $2 billion. Recently, the technology believes that Its full- company won contracts to make scale conversion to total quality antiarmor weapon systems and management (TOM) is making It airborne computers, new markets a stronger competitor, one up to that are expected to account for building market share in a con- growing shares of company reve- tracting defense Industry. nues. About 10 percent of total Texas Aiming to achieve six sigma* sales are to U.S. allies. quality by 1995 and to reduce Formed during World War II, Instruments product development time by TI-DSEG has grown to become 25 percent each year, TI-DSEG is the nation's eighth largest de- Defense reaping the benefits of accelerat- fense electronic contractor. Em- ing quality-Improvement efforts ploying 15,000 people, the Systems & that began in the early 1980s. company operates 11 manufactur- The reliability of TI-DSEG sys- ing, testing, research, and distribu- Electronics tems exceeds the specifications tion facilities at sites located in of Its Defense Department cus- the North and Central Texas area. Group tomers, in several instances by four or five times. Effective strate- gic planning, wide use of concur- TQM Strategy 1992 AWARD rent engineering methods, and At TI-DSEG, quality goals and strong relationships with key sup- business goals are one and the WINNER pliers have helped TI-DSEG pene- same. Executives view TQM as trate new defense markets, while the best approach to accomplish increasing its share in five of the any objective-from increasing company's six existing markets. market share to controlling em- Increased efficiency and cost- ployee health care costs-and accounting measures that en- teams as the most effective courage waste reduction and means to execute the company's recycling have reduced emissions quality strategy. From a pilot and solid hazardous waste dis- group of four worker teams posal through reclamation. formed In 1983, a network of TI-DSEG's printed wiring board more than 1,900 teams has plant has eliminated hazardous grown to link all units and levels, waste, and the company's initia- from top management to individ- tive to phase out use of ozone- ual work teams. depleting chlorofluorocarbons by The network continues to 1995, 5 years before the Montreal evolve, with the aim of trimming Protocol deadline, is on track. organizational levels and transfer- ring day-to-day decision-making TI-DSEG: A Snapshot authority to workers. In 1987, the company began experimenting A subsidiary of Texas Instru- with self-directed work teams ments Inc., TI-DSEG designs and and documented significant de- manufactures precision-guided creases in defects and production time. As a result, the TI-DSEG Six sigma is 2 statistical term, signifying 2 Quality Improvement Team world-class level of performance 11 trans- lates into 3.4 defects or errors per 1 million (QIT), which is made up of the parts or process steps. company's 14 top executives, has DEC-07-1992 14:08 FROM NIST MBNQA TO 2024566218 P.10 set the 1995 goal of increasing budgeting for research, new significantly reducing paperwork. participation on unsupervised equipment, worker education, Fifty-six percent of purchases teams to at least half of the and other areas. from suppliers are done workforce. TI-DSEG's evolving TQM electronically. Chaired by President Hank approach reflects, in part, an Returns on these and other Hayes, the TI-DSEG QIT initiates accumulation of lessons learned efforts to improve TI-DSEG per- and guides strategic quality plan- from other companies. An active formance, products, and service ning, beginning with the setting benchmarking program, man- have been documented through- of company-wide long-term goals aged by a full-time benchmarking out the business and by cus- and ending with final approval of "champion," has pointed the way tomers. For example, a Navy each division's annual objectives to improvements in virtually evaluation of 17 missiles found and implementation plans. An- every part of the company, from the TI-DSEG-made HARM and nual objectives are evaluated to accounting to printed wiring Shrike missiles to be the most reli- ensure they will advance the com- board manufacture. TI-DSEG's able, having the longest mean pany toward accomplishing its goal to achieve six-sigma quality, time between failures. An on- 5- to 10-year goals, a planning for example, is based on its study going Navy study evaluates horizon that reflects the develop- of the quality program at the manufacturing operations at 35 ment time for next-generation Motorola Co. defense contractors. Since 1986, defense systems. As the company has trimmed 106 processes and techniques Evaluations of customer needs organizational layers to five used by TI-DSEG were desig- drive the entire planning process. (down from eight in 1990) and nated as "best manufacturing These draw on an extensive data- increased the number of employ- practices," more than any other base assembled from information ees per supervisor, it has in- company. Customers are recog- gathered from a variety of creased its investment in training. nizing TI-DSEG's quality improve- sources, including formal sur- With the completion of six-sigma ments in other ways as well. veys, informal interviews and vis- quality training in 1992, the en- Since 1987, the number of its to military program offices and tire workforce will be schooled customer-conducted quality laboratories, policy statements, in design quality, statistical tools, audits has decreased 72 percent, contract specifications, and cus- and other quantitative problem- while formal complaints have tomer-provided requirements solving methods. TI-DSEG's 1992 fallen by 62 percent since 1988. documents. For each market seg- goal is to provide an average of In a TI-DSEG-commissioned, ment, TI-DSEG translates key re- 40 hours of training for each em- independently conducted survey quirements, such as reducing the ployee, up from 25 hours in of 2,000 company customers, power demands, size, and weight 1991. In addition, the company TI-DSEG topped its main com- of airborne radar systems, Into plans to spend $11 million be- petitors in all 11 customer- clear improvement goals for prod- tween 1989 and 1996 to provide satisfaction categories-from ucts, processes, and services. In continuing education to workers cost-effective pricing, deployment turn, measures for tracking prog- for reading, writing, and mathe- of technology, and product ress toward customer satisfaction matics to meet ever-increasing support. objectives and managing Internal job demands. Company-wide, revenues per processes are established for all This strategy to empower indi- worker have increased from units. Clear quality requirements viduals and teams is comple- about $80,000 in 1987 to more also are set for suppliers, since mented by continuing Investment than $125,000 in 1991. up to half the content of TI- in information technology and DSEG systems may consist of tools for diagnosing and solving purchased parts. problems. On-line computer sys- The Iterative planning process tems with standardized data for- For more information, also Integrates core technical ca- mats and interfaces, bar coding, contact: pabilities, product markets, and and Integrated data collection Mike Cooney so-called "enabling strategies," strategies are elements of a com- Vice-President, such as worker training or proc- pany thrust to make information Quality Assurance ess automation. This cross-cutting immediately available and easily P.O. Box 660246, M/S 3124 analysis helps the TI-DSEG QTT accessible at all points in the com- Dallas, TX 75266 develop realistic "multiyear invest- pany. TI-DSEG is linked electroni- ment plans" to guide annual cally to customers and suppliers, Telephone: 214-480-4800 Fax: 214-480-4880 DEC-07-1992 14:09 FROM NIST MBNQA TO 2024566218 P.11 he Ritz-Cariton Hotel ices, and exceptional food and Malcolm Baldrige T Company aims to suc- beverages. ceed in one of the most National logistically complex serv- Quality Ice businesses. Targeting primar- "Gold Standards" Award ily industry executives, meeting Quality planning begins with and corporate travel planners, President and Chief Operating and affluent travelers, the Atlanta- Officer Horst Schulze and the based company manages 25 lux- other 13 senior executives who ury hotels that pursue the make up the corporate steering distinction of being the very best committee. This group, which in each market. It does so on the doubles as the senior quality strength of a comprehensive serv- management team, meets weekly The ice quality program that is inte- to review the quality of products grated into marketing and and services, guest satisfaction, Ritz-Carlton business objectives. market growth and development, Hallmarks of the program organizational indicators, profits, Hotel include participatory executive and competitive status. Each leadership, thorough information year, executives devote about gathering, coordinated planning Company one-fourth of their time to quality- and execution, and a trained related matters. workforce that is empowered "to The company's business plan move heaven and earth" to sat- 1992 AWARD demonstrates the value It places isfy customers. Of these, commit- on goals for quality products and WINNER ted employees rank as the most services. Quality goals draw heav- essential element. All are ily on consumer requirements de- schooled in the company's "Gold rived from extensive research by Standards," which set out Ritz- the travel industry and the com- Cariton's service credo and basics pany's customer reaction data, of premium service. focus groups, and surveys. The plan relies upon a management The Ritz-Carlton: system designed to avoid the vari- ability of service delivery tradi- A Snapshot tionally associated with hotels. The Ritz-Carlton Hotel Company Uniform processes are well de- is a management company that fined and documented at all develops and operates luxury ho- levels of the company. tels for W.B. Johnson Properties, Key product and service re- also based in Atlanta. In 1983, quirements of the travel con- W.B. Johnson acquired exclusive sumer have been translated into U.S. rights to the Ritz-Carlton Ritz-Carlton Gold Standards, trademark, a name associated which include a credo, motto, with luxury hotels for 100 years. three steps of service, and 20 The Ritz-Carlton Hotel Com- "Ritz-Carlton Basics." Each em- pany operates 23 business and ployee is expected to understand resort hotels in the United States and adhere to these standards, and two hotels in Australia. It which describe processes for solv- also has nine international sales ing problems guests may have as offices and employs 11,500 peo- well as detailed grooming, house- ple. Two subsidiary products, keeping, and safety and effi- restaurants and banquets, are ciency standards. Company marketed heavily to local resi- studies prove that this emphasis dents. The company claims is on the mark, paying dividends distinctive facilities and environ- to customers and, ultimately, to ments, highly personalized serv- Ritz-Carlton. DEC-07-1992 14:09 FROM NIST MBNQA TO 2024566218 P.12 The corporate motto is "ladies serves as a resource and per year, percentage of check-ins and gentlemen serving ladies and advocate as teams and workers with no queuing, time spent to gendemen." To provide superior develop and implement their achieve industry-best clean room service, Ritz-Carlton trains em- quality plans. appearance, and time to service ployees with a thorough orienta- Teams and other mechanisms an occupied guest room. tion, followed by on-the-job cultivate employee commitment. From automated building and training, then job certification. For example, each work area is safety systems to computerized Ritz-Carlton values are reinforced covered by three teams responsi- reservation systems, Ritz-Carlton continuously by daily "line ups," ble for setting quality-certification uses advanced technology to full frequent recognition for extra- standards for each position, advantage. For example, each em- ordinary achievement, and a problem solving, and strategic ployee is trained to note guest performance appraisal based on planning. likes and dislikes. These data are expectations explained during The benefits of detailed plan- entered in a computerized guest the orientation, training, and ning and the hands-on involve- history profile that provides infor- certification processes. ment of executives are evident mation on the preferences of To ensure problems are during the 7 days leading up to 240,000 repeat Ritz-Carlton resolved quickly, workers are the opening of a new hotel. guests, resulting in more personal- required to act at first notice- Rather than opening a hotel in ized service. regardless of the type of problem phases, as is the practice in the The aim of these and other or customer complaint. All em- industry, Ritz-Carlton alms to customer-focused measures is ployees are empowered to do have everything right when the not simply to meet the expecta- whatever it takes to provide door opens to the first customer. tions of guests but to provide "instant pacification." No matter A "7-day countdown control them with a "memorable visit." what their normal duties are, plan" synchronizes all steps lead- According to surveys conducted other employees must assist If aid ing to the opening. The company for Ritz-Carlton by an Inde- is requested by a fellow worker president and other senior lead- pendent research firm, 92 to 97 who is responding to a guest's ers personally Instruct new em- percent of the company's guests complaint or wish. ployees on the "Gold Standards" leave with that impression. Evi- Much of the responsibility for and quality management during a dence of the effectiveness of the ensuring high-quality guest serv- 2-day orientation, and a specially company's efforts also includes Ices and accommodations rests selected start-up team composed the 121 quality-related awards re- with employees. Surveyed annu- of staff from other hotels around ceived in 1991 and industry-best ally to ascertain their levels of the country ensures all work rankings by all three major hotel- satisfaction and understanding of areas, processes, and equipment rating organizations. quality standards, workers are are ready. keenly aware that excellence in guest services is a top hotel and personal priority. A full 96 per- Quality Data For more information, cent of all employees surveyed Daily quality production reports, contact: in 1991 singled out this priority- derived from data submitted from Patrick Mene even though the company had each of the 720 work areas in the Corporate Director of Quality added 3,000 new employees in hotel system, serve as an early 3414 Peachtree Road, N.E. the previous 3 years. warning system for Identifying Atlanta, GA 30326 problems that can impede pro- Telephone: 404-237-5500 Detailed Planning gress toward meeting quality and Fax: 404-261-0119 customer-satisfaction goals. Cou- At each level of the company- pled with quarterly summaries of from corporate leaders to manag- guest and meeting planner reac- ers and employees in Individual tions, the combined data are com- work areas-teams are charged pared with predetermined with setting objectives and devis- customer expectations to im- ing action plans, which are re- prove services. viewed by the corporate steering Among the data gathered and committee. In addition, each ho- tracked over time are guest room tel has a "quality leader," who preventive maintenance cycles DEC-07-1992 14:10 FROM NIST MBNQA TO 2024566218 P.13 ying for customers in a minant of customer satisfaction, Malcolm Baldrige V commodity industry that has risen from less than 70 per- typically buys from the cent in 1988 to 93.5 percent in National lowest-bid supplier, 1991, That record tops the on- Quality Granite Rock Company, a time delivery average of a promi- Award California producer of construc- nent national company that tion materials, is expanding the Granite Rock benchmarked to terms of competition to include Improve its process. high quality and speedy service. The strategy is working for the Watsonville-based firm. Since Granite Rock: 1980, the regional supplier to A Snapshot commercial and residential build- Founded in 1900, Granite Rock Granite Rock ers and highway construction companies has increased its mar- produces rock, sand, and gravel ket share significantly. Productiv- aggregates; ready-mix concrete; Company ity also has increased, with asphalt; road treatments; and re- revenue earned per employee cycled road-base material. It also retails building materials made by 1992 AWARD rising to about 30 percent above other manufacturers and runs a the national industry average. Most of the Improvement has highway-paving operation. It WINNER been realized since 1985, when competes in a six-county area Granite Rock started its Total extending from San Francisco southward to Monterey. Most of Quality Program. The program stresses satisfying two types of its major competitors are firms customers: the contractor who owned by multinational construction-material companies. normally makes the purchasing A vertically Integrated com- decisions and the end point cus- tomer who ultimately pays for pany, Granite Rock employs the buildings or roads made 400 people, who are distributed with Granite Rock materials. By among branch offices, several emphasizing the hidden costs quarries, 15 batch plants, and associated with slow service and other facilities. Approximately substandard construction mate- 250 of the employees are members of five unions. rials, such as rework and prema- ture deterioration, the company Is convincing a growing number "Total Quality" of contractors of the value of using their high-quality materials Nine complementing corporate and unmatched service. To objectives, distilled from analyses spread its quality message, of customers' requirements, are Granite Rock sponsors seminars the comerstone of Granite Rock's for contractors, developers, archi- quality program. During the tects, and suppliers. annual integrated business and As a result of its Investments quality planning process, senior in computer-controlled process- executives systematically evaluate ing equipment and widespread company-gathered data and use of statistical process control, develop measurable "baseline Granite Rock can assure custom- goals" to help the company ad- ers that its materials exceed speci- vance toward each objective. fications. Customers also can be Charts for each product line confident that the materials will help executives assess Granite arrive when they need them. Rock's performance relative to Granite Rock's record for deliver- competitors on key product and ing concrete on time, a key deter- service attributes, ranked accord- ing to customer priorities. By DEC-07-1992 14:11 FROM NIST MBNQA TO 2024566218 P.14 1995, the company aims to build ity helps the company exploit the filled over an electronic scale. a 10-percent lead over its nearest advantages afforded by invest- The service, which operates competitor for each indicator of ments in computer-controlled 24 hours 2 day, 7 days a week, customer satisfaction. processing equipment. Its newest has reduced the time a trucker After annual Improvement tar- batch plant features a computer- spends at the quarry to 9 min- gets are set, the executive com- controlled process for mixing utes, as compared with 24 min- mittee expects branches and batches of concrete, enabling real- utes before GraniteXpress was divisions to develop their own time monitoring of key process installed. implementation plans. Coordina- indicators. With the electronically Granite Rock uses an annual tion across divisions is fostered controlled system, which Granite survey that allows buyers to by 10 Corporate Quality Teams Rock helped a supplier design, match up the company with Its that oversee and help align the reliability of several key proc- competitors. Every 3 to 5 years, improvement efforts across the esses has reached the six-sigma more detailed surveys are con- entire organization. Although level (3.4 errors per 1 million ducted. Customer complaints are committees are chaired by senior chances to err). The new system handled through product/service executives, members include and real-time data collection will discrepancy reports that require managers, salaried professional be adopted by the company's analysis of the problem and iden- and technical workers, and other concrete plants, where con- tification of the root cause. hourly union employees. Teams trol of product variability either Ultimate customer satisfaction is carry out quality improvement approaches or exceeds the three- assured through a system where projects as well as many day-to- sigma level. customers can choose not to pay day activities and operations. In Applying statistical process for a product or service that 1991, nearly all workers took part control to all product lines has doesn't meet expectations. in at least one of the company's helped the company reduce vari- Dissatisfaction is rare, however. 100-plus quality teams. able costs and produce materials Costs incurred in resolving com- In 1987, the company intro- that exceed customer specifica- plaints are equivalent to 0.2 per- duced the Individual Professional tions and industry- and govern- cent of sales, as compared with Development Plan, a voluntary ment-set standards. For example, the industry average of 2 percent. program in which 74 percent of Granite Rock's concrete products Granite Rock people now partici- consistently exceed the industry pate. At least once a year, work- performance specifications by ers meet with supervisors to 100 times. For more information, define their job responsibilities, Innovative applications of tech- contact: review accomplishments, assess nology have helped the company Bruce W. Woolpert their skills, and set skill- and enhance its service offerings. President and CEO career-development goals. Granite Rock's Arthur R Wilson P.O. Box 50001 Granite Rock encourages all Quarry may be the most ad- Watsonville, CA 95077-5001 employees to continue learning vanced aggregate production Telephone: 408-761-2300 and sponsors a series of classes facility in the country. Heavy in- and speakers on technical topics. vestments in recent years have In 1991, Granite Rock employees improved production efficiency, averaged 37 hours of training at quality control, and customer an average cost of $1,697 per service. Responding to customer employee, three times more concern over rising trucking than the mining-Industry average costs, the company developed and 13 times more than the GraniteXpress, the construction construction-industry average. industry's version of an automatic As part of Granite Rock's effort teller machine. With the auto- to reduce process variability and mated system for loading increase product reliability, many aggregate, a driver inserts the employees are trained in statisti- equivalent of 2 credit card into a cal process control, root-cause terminal, keys in the type and analysis, and other quality- amount of aggregate, and pro- assurance and problem-solving ceeds to the loading facility methods. This workforce capabil- where the truck is accurately DEC-07-1992 14:12 FROM NIST MBNQA TO 2024566218 P.15 he Transmission Systems National T TSBU: A Snapshot Business Unit (TSBU) of Malcolm Baldrige AT&T's Network Sys- A division of AT&T since 1955, terms Group aspires to TSBU was reorganized in 1989 Quality be an overachiever in the eyes of into one of the six separate Award its customers. Although not yet business units within the AT&T perfect, the nation's largest Network Systems Group. maker of transmission equipment Headquartered in Morristown, for telecommunications net- N.J., the company employs 7,500 works knows what It must do people at nine U.S. sites. Approxi- to cam top grades for customer mately two-thirds are employed satisfaction. at TSBU's manufacturing plant in At least once a year, many North Andover, Mass. Five facili- AT&T of TSBU's major customers issue ties in Europe employ another detailed, individualized "report 3,000 people. Network cards," grading the equipment Competing in a $15-billion in- supplier on the product and serv- ternational market, the company ice characteristics they deem develops, manufactures, markets, Systems most important. Guided by analy- and services systems for transport- ses of 11 types of customer- ing data, voice, and images over Group related information-from report public and private telecommuni- cards to various measures of the cations networks. Digital loop car- quality and responsiveness of rier systems, digital access and customer-support services- cross-connect systems, and net- Transmission TSBU's integrated strategic work multiplex equipment gener- planning process ensures that ate half of total sales. Lightwave Systems accomplishing performance- systems and an array of other sys- Business Unit improvement goals contributes tems and equipment account for the remainder. directly to Increases in customer satisfaction and gains in the TSBU is the world's second market. largest maker of transmission sys- 1992 AWARD For telecommunications com- tems. Sales to the seven Regional WINNER panies, reliability is the top prior- Bell Operating Companies and the AT&T worldwide network ity for transmission equipment. The reliability of TSBU products account for a large portion of exceeds customer expectations In revenues. Sales to independent all of the company's markets. On telephone companies, private net- the basis of that record and con- works, interexchange carriers, tinuing improvement in product cable television companies and quality, TSBU was the first in the cellular providers, and, in particu- industry to offer a 5-year war- lar, foreign telephone companies ranty. Warranty costs average account for a growing share of 1 percent of revenues, just as business. they did when TSBU offered a 2-year guarantee. Quality Approach Since 1989, TSBU has cut new product-development time In half Fine-tuned on the basis of les- and realized cost savings totaling sons learned from Internal evalu- $300 million. The company has ations and benchmarking studies, pursued high-growth export mar- TSBU's planning process is de- kets, picking up 37 new inter- signed to create a clear cause- national customers since 1985. and-effect relationship among priorities, goals, and subsequent Improvement actions. Called "policy deployment," the iterative process establishes links from DEC-07-1992 14:13 FROM NIST MBNQA TO 2024566218 P.16 AT&Ts quality principles through customer-focused Quality Orienta- tacts, customer focus groups, TSBU's 13 "detailed objectives" to tion Program; each employee is complaints, requests for technical the specific quality improvement expected to receive a minimum assistance, evaluations of competi- projects now being carried out of 40 hours of training and educa- tors, and surveys to assess its per- by more than 800 teams. tion a year. formance from the customer's To tighten linkages within TSBU's information systems perspective. TSBU and speed decision mak- helps executives, managers, and TSBU also has programs to ing, the company's Quality Coun- workers track key processes in ascertain customers' long-term cil, chaired by President Greg all phases and at all levels of the needs and to predict what new Hughes, is approaching the goal business. Performance indicators technology will be needed to of trimming two management lay- are selected carefully and re- meet those needs. For example, ers. Concurrently, TSBU reduced viewed regularly to ensure that in 1991 it conducted 23 forums the number of classifications for the information supports decision during which TSBU shared (un- hourly workers to 80, down from making as well as management der non-disclosure agreements) 1,300. An additional measure to and improvement of processes its future technical directions and help tighten the focus on quality determined to impact customer customers explained their long- improvement was to train union satisfaction. High-level, aggre- term plans and expectations. leaders in the policy deployment gated analyses of TSBU data The information helps TSBU show direct correlation between strengthen its customer relation- process. The eight executives on the quality improvement and meas- ships and sharpen Its focus on Quality Council initiate planning ures of customer satisfaction and the steps it must take to accom- and serve as members on any financial performance. plish its 1997 goal of being the one of four steering committees, At the manufacturing level, world's largest supplier of trans- which also Include high- level TSBU emphasizes automated mission equipment. managers of TSBU's major units. data collection. Bar codes and Supported by business manage- electronic links between ma- ment teams, the cross- chines enable real-time updates organizational steering com- on process performance and en- For more information, mittees translate the TSBU goals sure the accuracy of the manufac- contact: into specific quality projects re- turing data. This and other Louis E. Monteforte quired to accomplish the com- information guide company ef- Manager, Transmission pany's annual and 5-year goals. forts to reduce production time Quality Planning The draft strategic plan is commu- and speed development of new 475 South Street nicated to employees at all levels products. Room 2W-44 and to key suppliers. Units de- Design for manufacturability Morristown, NJ 07962-1976 velop their own plans, detailing is an essential element of these the steps and resources required efforts. For example, data on the Telephone: 201-606-2488 reliability of components guide Fax: 201-606-3363 to reach their specific goals. They also can suggest changes in the decisions on suppliers. During or TSBU strategic plan. Once the the extensive review and certi- AT&T's Quality Hotline: plan is approved, progress is re- fication process, manufacturing 1-800-682-7759 viewed at the Quality Council's representatives on the product blweekly meetings. development team can refuse de- Teams, training, and increased signs that will not match or ex- authority for workers are key ele- ceed yields of existing products. ments of quality-Improvement ef- TSBU uses a variety of meth- forts. Seventy-nine percent of the ods to build and maintain cus- workforce participated on teams tomer relationships and to gather in 1991. To help accomplish their feedback on the quality of Its objectives, teams are aided by products and services. In addi- company-trained employees, tion to the report cards custom- who provide skills training and ers use to evaluate TSBU against serve as resources throughout all the performance characteristics, phases of the teams' work. New they define as most important, employees participate in a 2-day TSBU uses summaries of con- DEC-07-1992 14:13 FROM NIST MBNQA TO 2024566218 P.17 ustomer focused. That's UCS as their benchmark. UCS re- C what AT&T Universal ports that it leads the credit card Malcolm Baldrige Card Services (UCS) industry in such areas as speed National believes it must con- and accuracy of application proc- Quality tinue to be If it is to maintain the essing, and customer satisfaction. Award rapid ascent that, in 30 months, UCS also cites its industry leader- made its Universal Card the sec- ship position in all eight primary ond largest in the credit card customer satisfiers. industry. Indeed, the young busi- ness was designed around the use of quality principles to UCS: A Snapshot "delight the customer." Since AT&T established UCS in A comprehensive data and March 1990, the AT&T Universal AT&T tracking system helps the AT&T Card-a combination general- subsidiary chart a well-marked purpose credit and long-distance Universal course for continuous Improve- calling card-has attracted 16 mil- ment in Its customer relation- lion cardholders. UCS now em- Card Services ships, Internal operations, ploys 2,500 people, or 10 times supplier partnerships, and busi- more than Its Initial payroll. ness performance. For example, Nearly 90 percent work at UCS's determinants of customer satisfac- 1992 AWARD main facility and headquarters in tion-the starting point for all Jacksonville, Fla. The collections WINNER quality planning-are studied in operation in Houston and the layers of detail. payment processing center in UCS's eight broad categories Columbus, Ga., employ the re- of "satisflers," including price and mainder. Two-thirds of all em- customer service, are used to de- ployees are In customer-contact fine the company's quality focus. positions. In turn, these prioritized determi- AT&T views Its Universal Card nants of how customers perceive as a strategic tool for protecting the value of credit-card services and bolstering its long-distance are underpinned by 125 "satisfi- customer base. In 1991, UCS's ers," each one also weighted to first full year, AT&T documented reflect Its relative importance. a 40-percent annual increase in One practical product of this calling-card revenues from UCS increasing specificity is an exhaus- customers. tive set of concrete performance UCS competes against some measures linking internal opera- 6,000 national, regional, and local tions and customer satisfaction. Issuers of general-purpose credit Another is 2 clear picture of what cards. UCS must to do to better its serv- Ices, performance, and market share. Management knows what "Delight Customers" improvements are likely to yield UCS began with a straight- the greatest gains in quality. Each forward strategy: Offer a credit part of the business, from UCS as card with a comprehensive set a whole to Individual work units, of competitive services. Then, has a list of "10 most wanted" through a carefully conceived quality Improvements. and executed strategic plan, Through its benchmarking pro- continuously Improve internal gram, UCS has determined what performance and continuously constitutes world-class perform- pursue enhancements in product ance and service, and It has set and service offerings. The two- its quality goals accordingly. fold aim was "delighting custom- Now, other companies are using DEC-07-1992 14:14 FROM NIST MBNQA TO 2024566218 P.18 ers" and distancing the Universal which evaluates the effectiveness based instruction. In 1991, hourly Card from competitors' products. of UCS procedures for gathering, employees underwent, on aver- Fundamental to the strategy responding to, and evaluating age, 84 hours of training, not in- was the need to listen to customer comments and survey cluding the 8-week orientation customers-resulting, for exam- results. for new customer-service employ- ple, in eight customer-related The business team translates ees. Monthly surveys track em- databases and 11 monthly sur- goals into key initiatives. At the ployee satisfaction. UCS has veys that track overall satisfaction top of the list are the business developed a list of employee and the quality of specific serv- team's "10 most wanted" quality "satisfiers" that guides improve- ices. Also fundamental was an improvements. All key initiatives ments in training, recognition pro- organizational structure that are assigned to teams composed grams, and other human resource could respond quickly to chang- of representatives of various UCS activities. Ing customer requirements and units. In support of each initia- Widespread use of advanced competitive conditions by effi- tive, these cross-functional teams information technology under- ciently carrying out quality- develop specific programs as girds important components of improvement initiatives. well as the associated perform- quality improvement efforts. A From the onset, quality has ance measures that link programs Strategic Systems Plan, now in its been a top concern of UCS Presi- to UCS's strategic goals. final phase, will provide the com- dent and Chief Executive Officer Another tier of cross-functional pany with world-class on-line Paul Kahn and the other 11 mem- teams, which include supplier processing and analysis capabili- bers of the business team. The representatives, implements the ties. In 1991, UCS spent $20 mil- team crafted a long-term incen- programs. If the goal of the pro- lion on computer workstations tive plan that rewards members gram is to develop a new service, providing customer-support per- for accomplishing quality objec- customer focus groups also par- sonnel with easy access to de- tives. In addition, executives and ticipate in the process. If the goal tailed card-member information. managers "own" specific short- is improving an existing process In many key areas of perform- and long-term quality goals, num- or service, a company-wide qual- ance and customer satisfaction- bering more than 100 in 1991, ity assurance group helps the for example, speed in processing each with a predetermined target team establish measures for as- telephone applications (3 days date. sessing how changes affect levels versus 10 days for the nearest Although the business team of customer satisfaction. competitor)-UCS ranks as best develops UCS's annual and long- in its class. In setting ever-higher term strategic plans, mechanisms standards for Itself, the company that go beyond evaluating all rele- Employees Key is nurturing customer loyalty. vant trend data provide other ave- UCS exhibits a strong culture of The company reports that over nues for customer and employee concern for its people. Associates 98 percent of customers rate input Into the setting of quality are made to feel that they are the overall service as better than the and business goals. For example, key to "delighting the customer." competition. during 1992, all employees have This is made real by empowering met with a senior executive to ex- line employees. Intending to change ideas in gatherings of no move beyond project-focused more than 10 people. Employee quality teams, the company has For more information, suggestions also feed into the begun a pilot program to intro- contact: planning process. So far in 1992, duce self-directed work teams Robert A. Davis UCS personnel have submitted responsible for all day-to-day ac- Chief Quality Officer more than 6,200 suggestions, tivities and decisions. Customer- 8787 Baypine Rd. compared with 1,727 in 1990. contact employees already have Jacksonville, FL 32256 Nearly half of all suggestions considerable authority to act on Telephone: 904-443-8875 made last year were accepted their own. For example, they can Fax: 904-443-8722 and acted on by management. grant credit line increases and All business team members are adjust customers' bills without required to devote some of their management approval. time to meeting with customers. Training opportunities are nu- Several also serve on the Cus- merous, ranging from traditional tomer Listening Post Team, classroom sessions to computer- TOTAL P. 18 DEC-07-1992 14:10 FROM PAD TO 12024566218 P.001/006 National Institute of Standards and Technology (NIST) PUBLIC AFFAIRS DIVISION TELECOPIER COVER SHEET Building 101 - Room A903 Gaithersburg, MD 20899 Date: Dec. 7 To: Michelle Nix FAX 202-456-6218 ORIG. TELEPHONE X7750 From: Jan Kosko FAX 301-926-1630 ORIG. NIST/PUBLIC AFFAIRS OFFICE TELEPHONE 301-975-2767 Number of Pages (including cover sheet): FYI- Attached is info on Dec.14 Baldrise Award ceremony plas a 1-pase fact sheet. A Baldrise quote will 4 Malcolm Baldrige National follow later today or tomorrow. Quality Award DEC-07-1992 14:10 FROM PAD TO 12024566218 P.002/006 Malcolm Baldrige National Quality Award Ceremony and Other Events December 14, 1992 DESCRIPTION OF EVENTS The President, with your assistance, will present the Award to be top executives of the five 1992 winners in an 11:30 ceremony to the attended by approximately 500 people. In addition to hosting during the day: a press briefing with executives from the ceremony, you are asked to participate in a series of events winning companies; winners presentation following the ceremony; a luncheon for the winners, Baldrige Foundation trustees, the Foundation Trustees. the Award; and other functions involving the Examiners and Boards of Overseers and Examiners, and other key supporters of CEREMONY EVENTS Press Briefing You would host a press briefing (lasting 30 minutes) at DoC with top officials of the winning companies. Business, invited. trade, and general news reporters would be You would make brief remarks (three to four minutes) remarks. and introduce the top officials, who would not make You and the officials would then answer reporters' assist. questions. Curt Reimann (NIST) will be available to Award Ceremony At an 11:30 a.m. ceremony in the DoC Malcolm Baldrige Great Hall, you would introduce the President and he would give brief remarks. You would announce the recipients of the 1992 award. The President, with your assistance, would present a folder containing a photograph of the award and a letter of congratulations to each top official of the 1992 winning companies (1 per winner). DEC-07-1992 14:10 FROM PAD TO 12024566218 P.003/006 o The company executives would not give remarks. O Guests would include members of the Baldrige family, trustees of the award's Foundation, members of the Boards of Overseers and Examiners, members of the Cabinet, selected Members of Congress, representatives and guests of the winning companies, E and E-star winners, the President's Export Council, and the news media. o At the conclusion of the ceremony, you would announce a 5-minute break to be followed by remarks by you and the top executives. Winners' Presentations O The award ceremony would be followed by remarks lasting approximately 35 minutes. The presentations are intended to inform guests attending the ceremony and the news media about each winner's quality management strategies and accomplishments. o You would open the session with remarks (4 minutes) followed by remarks from each executive (5 minutes each). Luncheon o Following the presentations, you would host an appreciation luncheon for approximately 275 guests from the winning companies, Foundation, Boards of Overseers and Examiners, Cabinet and Congress. You and selected individuals, primarily winners' representatives, would make brief remarks. You also would present Malcolm Baldrige National Quality Award flags to each company's representatives. Other Events At separate events scheduled throughout the day, you would meet with members of the award's Foundation, Boards of Overseers and Examiners, and Panel of Judges. These sessions will provide you with the opportunity to thank the various members for their time and support, to present certificates, and take photos. DEC-07-1992 14:11 FROM PAD TO 12024566218 P.004/006 sec/3 11:00 a.m. News Briefing ends Secretary returns to office. 11:10 a.m. CEO's, Acting Deputy Secretary Willkie, Under Secretary White, NIST Director Lyons, and NIST Baldrige Award Director Reimann move to Holding Room. Companies' seconds take seats in Malcolm Baldrige Great Hall - front row. 11:20 a.m. Doors close to Malcolm Baldrige Hall 11:20 a.m. Secretary moves to Secretary's courtyard entrance to greet President. 11:30 a.m. President Bush arrives at Department (Secretary's entrance) and goes directly to Secretary's office for private meeting (photo). Band begins to play in Malcolm Baldrige Great Hall. 11:35 a.m. President and Secretary leave Secretary's office for Holding Room adjacent to Malcolm Baldrige Great Hall 11:38 a.m. President and Secretary arrive Holding Room. CEO's of winning companies, Foundation Trustees, Acting Deputy Secretary Willkie, Under Secretary White, NIST Director Lyons, NIST Baldrige Award Director Reimann, and Baldrige Family ready for group photo with President and Secretary 11:42 a.m. President and Secretary have private moment with Baldrige Family CEO's, "Second's in Command," Foundation Trustees, Acting Deputy Secretary Willkie, Under Secretary White, NIST Director Lyons, and NIST Baldrige Award Director Reimann take seats in front row in Great Hall Baldrige family takes seats in Great Hall Ceremony - Malcolm Baldrige Great Hall 11:45 a.m. President and Secretary are announced and enter Malcolm Baldrige Hall. Ceremony begins. Presentation of colors and National Anthem Guests include members of the Baldrige family, trustees of the award's Foundation, members of the Boards of Overseers and Examiners, members of the Cabinet, selected Members of Congress, representatives and guests of the winning companies, E and E-star winners, DEC-07-1992 14:11 FROM PAD TO 12024566218 P.005/006 sec/4 the President's Export Council, and the news media. Ceremony will be broadcast via satellite to about 40 sites of the 5 winners. 11:46 a.m. President Secretary makes introductory remarks and presents the 11:47 a.m. President makes remarks 11:52 a.m. Secretary calls names of CEO's of winning companies one at a time (AT&T Network Systems Group/TSBU/Greg Hughes; Texas Instruments Inc./DSEG/Jerry Junkins; AT&T Universal Card Services/Paul Kahn; The Ritz-Carlton Woolpert) Hotel Co./Horst Schulze; Granite Rock Co./Bruce President presents red folders for awards to CEO's individually 12:02 p.m. Pictures are taken of CEO's with President and Secretary (individual and group) 12:04 p.m. Special awards presentation 12:07 p.m. Secretary concludes ceremony and announces Winners' Presentations to begin in 5 minutes (30 seconds) 12:08 p.m. President and Secretary leave stage. President departs. CEO's group on stage for presentations. Extra chairs placed on stage. Band plays during break in program. 12:11 p.m. Secretary returns to Great Hall Secretary and CEO's of winning companies move to stage to participate in Winners' Presentations. 12:13 p.m. WINNERS' PRESENTATIONS 12:13 p.m. Secretary's remarks 12:18 p.m. Secretary introduces CEO's of winning companies one-by-one (AT&T Network Systems Group/TSBU/Greg Hughes; Texas Instruments Inc./DSEG/William Hayes; AT&T Universal Card Services/Paul Kahn; The Ritz-Carlton Hotel Co./Horst Schulze; Granite Rock Co./Bruce Woolpert) to speak (6 minutes) DEC-07-1992 14:12 FROM PAD TO 12024566218 .006/006 United States Department of Commerce Technology Administration-National Institute of Standards and Technology MALCOLM BALDRIGE NATIONAL QUALITY AWARD WHAT IS THE AWARD? The award was estab- strategic quality planning, human resource develop- lished by Congress in 1987 to promote quality ment and management, management of process. awareness, to recognize quality achievements of quality, quality and operational results, and cus- U.S. companies, and to publicize successful quality tomer focus and satisfaction. Applicants must pro- strategies. The award is not for specific products or vide data to substantiate quality achievement and services. Two awards may be given annually in quality improvement in each area. each of three categories: manufacturing, service, and small business. In conjunction with the private WHICH COMPANIES HAVE WON THE AWARD? sector, the National Institute of Standards and A total of 17 companies have won the award: Technology developed and manages the award 1988-Motorola Inc., Commercial program. Nuclear Fuel Division of Westinghouse Electric Corp., and Globe Metallurgical Inc. WHY WAS THE AWARD ESTABLISHED? It was 1989-Milliken & Company and Xerox clear to many industry and government leaders Corp. Business Products and Systems that a renewed emphasis on quality was no longer 1990-Cadillac Motor Car Division, an option for American companies, but a necessity IBM Rochester, Federal Express Corp., and for doing business in an ever-growing world Wallace Co. Inc. market. U.S. companies needed a standard they 1991-Solectron Corp., Zytec Corp., could use as a road map to world-class quality. In and Marlow Industries. 1990 President Bush said, "In just a few years, the 1992-AT&T Network Systems Group/ National Quality Award has literally become the Transmission Systems Business Unit, Texas Instru- standard of business excellence." ments Inc. Defense Systems & Electronics Group, AT&T Universal Card Services, The Ritz-Carlton HOW ARE WINNING COMPANIES SELECTED? Hotel Co., and Granite Rock Co. Businesses located in the United States may apply for the award. Those that do must undergo a FOR FURTHER INFORMATION: Write or call the rigorous evaluation by an independent board of ex- Malcolm Baldrige National Quality Award Office, aminers composed of private- and public-sector ex- A537 Administration Bldg., NIST, Gaithersburg, perts in quality. The examination includes onsite Md. 20899, 301/975-2036. 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? Seven areas are ex- amined: leadership, information and analysis, October 1992 DEC- 7-92 MON 0:10 P.02 NOV-19-1992 18:11 FROM PAD TO 12024822741 P.002/006 Remarks by President George Bush Malcolm Baldrige National Quality Award ceremony December 14, 1992 I am very pleased to once again participate in this ceremony and present the award named in honor of my good friend, Mac Baldrige. I consider this award, and the quality improvement and public-private partnership it celebrates, to be among the most positive recent developments for corporate America. Mac understood well that quality management is vital to this country's prosperity and long-term strength. I can say without a doubt that he would be extremely proud of this award and all that it stands for. The spirit of Mac Baldrige lives on in our award winners and everyone who has worked so hard to make this trophy the centerpiece of a national effort to improve quality. The award that bears his name embodies all that is best in corporate America. I am privileged to present this award today to five companies representing a broad spectrum of industries. The award recipients this year are: --Transmission Systems Business Unit of AT&T's Network Systems Group, Morristown, New Jersey; --Texas Instrument's Defense Systems & Electronics Group, Dallas, Texas; 1 DEC- 7-92 MON 0:10 P.03 NOV-19-1992 18:11 FROM PAD TO 12024622741 P.003/006 --AT&T's Universal Card Services, Jacksonville, Florida; --The Ritz-Carlton Hotel Co., Atlanta, Georgia, and ) --Granite Rock co., Watsonville, California. In addition to being the greatest number of awards ever given in a single year, 1992 has been a banner year in a number of areas: It is the first time two divisions of the same corporation -- AT&T -- have received the award. It is the first time we have had two companies in the service category. And, it is the first time we've presented the award to companies in the hospitality, construction, and financial services industries. While all of these companies have very different approaches to quality management, they all have one thing in common: a passion for excellence, for being the best at what they do. They also share a few basic principles: --They know that quality is judged by the customer. --They have learned that company leaders must be personally committed. --Through long-term planning, they have set aggressive goals that are both customer- and employee-oriented. --They have concluded that the best investment are well- trained, "empowered" employees. o They also understand that being good is no longer good enough. 2 DEC- 7-92 MON 0:11 P.04 NOV-19-1992 18:11 FROM PAD TO 12024822741 P.004/006 With nimble competitors worldwide and savvy consumers, they know they must continuously strive for better ways to improve their products and their services and satisfy and respond to customers. Quality has emerged and will continue to be a major factor in international trade. --Japan and the Pacific Rim countries continue to intensify their quality improvment efforts. --The European community is placing great emphasis on quality. The European Foundation for Quality Management, an organization founded by many of Europe's leading corporations, just presented their first award in October. --Mexico now has a quality award and Sweden and other countries are working to establish their own. Many of these international awards are based on our own Baldrige award. That's because the award contains what many believe are all of the necessary facets for establishing a world-class system of managing a company. The five companies we are honoring today, as well as all of our award recipients, use the Baldrige Award criteria not with the purpose of winning an award, but as a strategy for running their business. While we are here today to honor these companies for their well-deserved achievements, it is also important to remember that the award is more than a contest. 3 DEC- 7-92 MON 0:11 P.05 NOV-19-1992 18:12 FROM PAD TO 12024822741 P.005/006 The award was established in 1987 not only to recognize U.S. companies that have successful quality management strategies, but also to publicize these stratgies as examples for other companies and to raise U.S. corporate consciousness about quality management. Mac would be proud. This program has succeeded far beyond all expectations. The award winning companies and others, including the examiners, and the Commerce Department, through the National Institute of Standards and Technology, have taken seriously the charge to be "quality missionaries." They have spread the quality message to many people and places, quickly and effectively. We are seeing a dramatic change in companies that are not just talking about quality improvement, but are doing something about it. The Baldrige Award is a tremendous success story for both the private and the public sectors. Its positive effects are spilling over into education, health care and government as leaders in these sectors realize they must adopt the same standards as American business. I'm convinced that this great enthusiasm for quality, not only in the award recipients, but in thousands of others, is here to stay. I believe we are in the middle of a quality "revolution," and those who think this is a fad that will slip 4 DEC- 7-92 MON 0:12 P.06 NOV-24-1992 18:14 FROM PAD TO 12024822741 P.002/013 silently into obscurity had better change their minds OI get out of the way. Once again I'd like to congratulate these five companies. They are proof, that quality management is the wave of the future --- and the future has arrived! 5 Nix December 8, 1992 Draft Two BALDRIGE PRESIDENTIAL REMARKS: MALCOLM BALDRIGE QUALITY AWARDS MALCOLM BALDRIGE GREAT HALL, DOC MONDAY, DECEMBER 14, 1992 11:30 A.M. [Acknowledgments] I always look forward to this yearly awards ceremony. An opportunity to honor industry's best. And a chance to revisit the legacy of an extraordinary man -- Malcolm Baldrige. I remember a story President Reagan loved to tell of the day he phoned Mac to ask him to join his Cabinet. He was told by Midge that he'd have to call back later: Mac was out on his horse roping and he couldn't come to the phone. That was Mac. He was a man whose collection of belt buckles was the only thing that could outnumber his many achievements. In a hand- tooled western belt and a pin-stripe suit, Mac was the Connecticut cowboy, a man whose name is now enshrined in the Cowboy Hall of Fame -- and the only guy I knew who'd complain of saddle sores from sitting at a desk too long. // He used to say 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. That was true of Mac. When he talked business, he meant business. And when he talked of making America's products second to none, you listened. The standards of excellence Mac embodied are still very much with us. Fairness, honesty, tenacity. These were his yardsticks. The same yardsticks we use today in looking for the companies by accident, but by effort -- top performances by all of its 2500 employees. Universal Card led its charge to excellence by centralizing their business around one key principle: "delight the customer." And it seems they are, indeed, delighted. 98% of their customers rate overall services as better than the competition. 98%. [[That's one poll I could have used a month ago. //]] It's not often that a small business means big business, but it's true for the Granite Rock Company. With the initiation of their Total Quality Program, Granite Rock has exceeded its industry standards for high quality and unmatched service. Rather than follow a well-worn path, Granite Rock chose to chart its own way -- a journey that has brought them here today -- an award-winning company that defines success in three little words: "another satisfied customer." Ritz-Carlton won 121 quality-related awards in 1991, but ask any employee how they gauge their success and they'll say -- the Gold Standards -- the Ritz-Carlton's bible for premium service. With almost 12,000 employees, the Ritz-Carlton has implemented a rigorous quality program that seeks "a memorable visit" for every guest. This luxury hotel business knows that a mint on the pillow isn't enough to keep a customer coming back. It's the principle "service must be excellent if it is anything" that has earned Ritz-Carlton one of the most loyal followings in the travel and tourism industry. For Texas Instruments Defense Systems & Electronics Group, its best product is always surpassed by its next innovation. Mac used to call this kind of inventiveness "Yankee ingenuity." [[I'm not sure a Texas-based company cottons to being called "yankee" -- but ingenious, I think they'l accept. //]] Formed during World War II, this TI subsidiary has grown to become the nation's eighth largest defense electronics contractor. We know from the success of Desert Storm, that in matters of advanced - weaponry, quality is key. And we know, too, from the success of Desert Storm, that TI's contributions to this effort were invaluable. In today's competitive global marketplace, quality of service and quality of goods takes on top priority in American business. Premium standards are no longer lofty goals, but vital components of every basic business strategy. This year's Baldrige award winners know that quality standards do not impede success, they encourage it. Mac would agree. Each time we revisit our memories of Mac Baldrige at this ceremony, I'm reminded of the wisdom he used to impart most often -- always, in anything and everything, rise to the highest standard. This year's Malcolm Baldrige Quality Award Winners have all done just that. Congratulations. May God bless you all and the United States of America. # # # very best that American industry has to offer. And this year, we have found them in five exceptional companies. This year 90 companies decided they were tough enough to take take the Baldrige test. Thousands -- roughly 175,000 others -- used the Baldrige criteria as an internal test, as a way to be tough on themselves. A few of our past winners like Motorola and IBM have even gone so far as to strongly urge their suppliers to follow the Baldrige criteria. What this tells us is simple: America is number one because it demands not only the best for itself, but also from itself. /////se ves. And new to the winners themse Some might think the Commerce Department offered a two-for- one deal with AT&T -- but not so. Though both Transmission Systems and Universal Card Services are divisions of AT&T, they are two separate businesses, who share one common goal -- a commitment to quality. AT&T Chairman Robert Allen said of this commitment: "The real challenge is to define quality not from our own perspective, but from the customer's." This both divisions have done. Transmission Systems Business Unit dedicates itself not only to its customers' short- term needs, but its long-term needs as well. With the input of more than 7500 employees at nine U.S. sites, Transmission Systems has initiated programs to predict what new technologies will be needed to meet their customers' long-term goals. In slightly more than 3 years, Transmission Systems has nearly doubled international sales and now sells systems to more than 50 countries. That's a lot of satisfied customers. Universal Card Services hasn't become a benchmark of other (307) 975-2762 Malcolm Pub Affairs the - Being in busness - Happy Holidays - Prepare for insert from Agenda - humar liokes 02/80 As, Mae used say to - candoaltitudes Yanke ingenerity. Mac N 1 used to say He L even A man who didn 7 know where the Commice building was, who didn to Garbacher + know He strived for quality politics gave bell buckle as horse boleing down think he would be proud taken the right cokese 90 applied enough trugh companies winning 15mly Supplier Motorola Prolity 175,000 Motorola is am IBM crituia se this to go Strong urges thru the Fill process Baldrige crithio Check acknowledgements for Malcolm Baldrige Awards Ceremony Check POTUS comments Check with Cab Affairs -- is POTUS receiving award; AT&T comment He will 1 No Cab members - Sec Franklin - Judges Private Sector Examiners Judges - Foundation Trustees for MacBaldr - Baldrige Family Members for - ATT TSBU Greg Hagfee Pres - TI Jerry Junkins, Pres CED Bruce Copres - CEO Chairman - ATT uc Paul Kahn us +CEO - Rite Carl Horst Schulze Prest CEO 500 Nix December 8, 1992 Draft One BALDRIGE PRESIDENTIAL REMARKS: MALCOLM BALDRIGE QUALITY AWARDS MALCOLM BALDRIGE GREAT HALL, DOC MONDAY, DECEMBER 14, 1992 11:30 A.M. [Acknowledgments] I always look forward to this yearly awards ceremony. An opportunity to honor industry's best. And a chance to revisit the legacy of an extraordinary man -- Malcolm Baldrige. I remember a story President Reagan loved to tell of the day Reagan The phoned Mac to ask him to join his Cabinet. He was told by ga, Malcolm July Ja, Midge that he'd have to call back later: Mac was out on his horse roping and he couldn't come to the phone. That was Mac. He was a man whose collection of belt buckles was the only Service thing that could outnumber his many achievements. After being why he appointed Commerce Secretary, a reporter asked him what made him would make a good Seculary qualified for such a post when he didn't even know where the NEXIS Commerce building sits. "I have some, or limited, knowledge of Jan upl 1981 6, politics," he said, "and I understand that's necessary in Washington. "// Allen by Ira NEXIS In a hand-tooled western belt and a pin-stripe suit, Mac was Decld, the Connecticut cowboy -- the only guy I knew who'd complain of 1980 NYTIMES saddle sores from sitting at a desk too long. He used to say Reagan by Richer that the thing he liked about cowboys was that they didn't talk Madden unless they had something to say, and when they said something, asabac B. they meant it. That was true of Mac. When he talked business, he meant business. And when he talked of making America's products second to none, you listened. The standards of excellence Mac embodied are still very much with us. Fairness, honesty, tenacity. These were his yardsticks. The same yardsticks we use today in looking for the very best that American industry has to offer. And this year, we have found them in five exceptional companies. Some might think the Commerce Department offered a two-for- one deal with AT&T -- but not so. Though both Transmission Systems and Universal Card Services are divisions of AT&T, they are two separate businesses, who share one common goal -- a NEXIS commitment to quality. AT&T Chairman Robert Allen said of this Reuter's Ready commitment: "The real challenge is to define quality not from our own perspective, but from the customer's. ATT WINSE This both divisions have done. Transmission Systems Business Unit dedicates itself not only to its customers short- Briefs term needs, but its long-term needs as well. With the input of commerce by more than 7500 employees at nine U.S. sites, TSBU has initiated programs to predict what new technologies will be needed to meet Buston NEXIS Globa their customers long-term goals. In slightly more than 3 years, TSBU has doubled international sales and now sells systems to Mixing more than 50 countries. That's a lot of satisfied customers. Lewis Universal Card Services hasn't become a benchmark of other companies by accident, but by effort -- top performances by all of its 2500 employees. UCS led its charge to excellence by Commerce centralizing their business around one key principle: "delight the customer." And it seems they are, indeed, delighted. 98% of brief their customers rate overall services as better than the number competition. 98%. [[That's one poll I could have used a month ago. //]] It's not often that a small business means big business, but it's true for the Granite Rock Company. With the initiation of Commune their Total Quality Program, Granite Rock has exceeded its Brief industry standards for high quality and unmatched service. Rather than follow a well-worn path, Granite Rock chose to chart its own way -- a journey that has brought them here today -- an award-winning company that defines success in three little words: "another satisfied customer." Ritz-Carlton won 121 quality-related awards in 1991, but ask Commerce any employee how they gauge their success and they'll say -- the Brief Gold Standards -- the Ritz-Carlton's bible for premium service. With almost 12,000 employees, the Ritz-Carlton has implemented a rigorous quality program that seeks "a memorable visit" for every guest. This luxury hotel business knows that a mint on the pillow isn't enough to keep a customer coming back. It's the principle "service must be excellent if it is anything" that has earned Ritz-Carlton one of the most loyal followings in its industry. For Texas Instruments Defense Systems & Electronics Group, its best product is always surpassed by its next innovation. Mac used to call this kind of inventiveness "Yankee ingenuity.' NEXAS [[I'm not sure a Texas-based company cottons to being called "yankee" -- but ingenious, I think they'll accept. //]] Formed during World War II, this TI subsidiary has grown to become the nation's eighth largest defense electronics contractor. We know from the success of Desert Storm, that in matters of advanced weaponry, quality is key. And we know, too, from the success of Desert Storm, that TI's contributions to this effort were invaluable. In today's competitive global marketplace, quality of service and quality of goods takes on top priority in American business. Premium standards are no longer lofty goals, but vital components of every basic business strategy. This year's Baldrige award winners know that quality standards do not impede success, they encourage it. Mac would agree. Each time we revisit our memories of Mac Baldrige at this ceremony, I'm reminded of the wisdom he used to impart most often -- always, in anything and everything, rise to the highest standard. This year's Malcolm Baldrige Quality Award Winners have all done just that. Congratulations. May God bless you all and the United States of America. # # # Nix December 8, 1992 Draft Two BALDRIGE. PRESIDENTIAL REMARKS: MALCOLM BALDRIGE QUALITY AWARDS MALCOLM BALDRIGE GREAT HALL, DOC MONDAY, DECEMBER 14, 1992 11:30 A.M. [Acknowledgments] I always look forward to this yearly awards ceremony. An opportunity to honor industry's best. And a chance to revisit the legacy of an extraordinary man -- Malcolm Baldrige. I remember a story President Reagan loved to tell of the day he phoned Mac to ask him to join his Cabinet. He was told by Midge that he'd have to call back later: Mac was out on his horse roping and he couldn't come to the phone. That was Mac. He was a man whose collection of belt buckles was the only thing that could outnumber his many achievements. In a hand- tooled western belt and a pin-stripe suit, Mac was the Connecticut cowboy -- the only guy I knew who'd complain of saddle sores from sitting at a desk too long. // He used to say 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. That was true of Mac. When he talked business, he meant business. And when he talked of making America's products second to none, you listened. The standards of excellence Mac embodied are still very much with us. Fairness, honesty, tenacity. These were his yardsticks. The same yardsticks we use today in looking for the very best that American industry has to offer. And this year, we Nix December 8, 1992 Draft Two BALDRIGE. 1 PRESIDENTIAL REMARKS: MALCOLM BALDRIGE QUALITY AWARDS MALCOLM BALDRIGE GREAT HALL, DOC MONDAY, DECEMBER 14, 1992 11:30 A.M. [Acknowledgments] I always look forward to this yearly awards ceremony. An opportunity to honor industry's best. And a chance to revisit the legacy of an extraordinary man -- Malcolm Baldrige. I remember a story President Reagan loved to tell of the day he phoned Mac to ask him to join his Cabinet. He was told by Midge that he'd have to call back later: Mac was out on his horse roping and he couldn't come to the phone. That was Mac. He was a man whose collection of belt buckles was the only thing that could outnumber his many achievements. In a hand- tooled western belt and a pin-stripe suit, Mac was the Connecticut cowboy -- the only guy I knew who'd complain of saddle sores from sitting at a desk too long. He used to say 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. That was true of Mac. When he talked business, he meant business. And when he talked of making America's products second to none, you listened. The standards of excellence Mac embodied are still very much with us. Fairness, honesty, tenacity. These were his yardsticks. The same yardsticks we use today in looking for the very best that American industry has to offer. And this year, we have found them in five exceptional companies. Some might think the Commerce Department offered a two-for- one deal with AT&T -- but not so. Though both Transmission Systems and Universal Card Services are divisions of AT&T, they are two separate businesses, who share one common goal -- a commitment to quality. AT&T Chairman Robert Allen said of this commitment: "The real challenge is to define quality not from our own perspective, but from the customer's." This both divisions have done. Transmission Systems Business Unit dedicates itself not only to its customers short- term needs, but its long-term needs as well. With the input of more than 7500 employees at nine U.S. sites, Transmission Systems has initiated programs to predict what new technologies will be needed to meet their customers' long-term goals. In slightly more than 3 years, Transmission Systems has nearly doubled international sales and now sells systems to more than 50 countries. That's a lot of satisfied customers. Universal Card Services hasn't become a benchmark of other companies by accident, but by effort -- top performances by all of its 2500 employees. Universal Card led its charge to excellence by centralizing their business around one key principle: "delight the customer." And it seems they are, indeed, delighted. 98% of their customers rate overall services as better than the competition. 98%. [[That's one poll I could have used a month ago. //]] It's not often that a small business means big business, but it's true for the Granite Rock Company. With the initiation of their Total Quality Program, Granite Rock has exceeded its industry standards for high quality and unmatched service. Rather than follow a well-worn path, Granite Rock chose to chart its own way -- a journey that has brought them here today -- an award-winning company that defines success in three little words: "another satisfied customer." Ritz-Carlton won 121 quality-related awards in 1991, but ask any employee how they gauge their success and they'll say -- the Gold Standards -- the Ritz-Carltonl bible for premium service. With almost 12,000 employees, the Ritz-Carlton has implemented a rigorous quality program that seeks "a memorable visit" for every guest. This luxury hotel business knows that a mint on the pillow isn't enough to keep a customer coming back. It's the principle "service must be excellent if it is anything" that has earned Ritz-Carlton one of the most loyal followings in its the travel and tourism industry. For Texas Instruments Defense Systems & Electronics Group, its best product is always surpassed by its next innovation. Mac used to call this kind of inventiveness "Yankee ingenuity." [[I'm not sure a Texas-based company cottons to being called "yankee" -- but ingenious, I think they'll accept. //]] Formed during World War II, this TI subsidiary has grown to become the nation's eighth largest defense electronics contractor. We know from the success of Desert Storm, that in matters of advanced weaponry, quality is key. And we know, too, from the success of Desert Storm, that TI's contributions to this effort were invaluable. In today's competitive global marketplace, quality of service and quality of goods takes on top priority in American business. Premium standards are no longer lofty goals, but vital components of every basic business strategy. This year's Baldrige award winners know that quality standards do not impede success, they encourage it. Mac would agree. Each time we revisit our memories of Mac Baldrige at this ceremony, I'm reminded of the wisdom he used to impart most often -- always, in anything and everything, rise to the highest standard. This year's Malcolm Baldrige Quality Award Winners have all done just that. Congratulations. May God bless you all and the United States of America. # # # PAGE 3 4TH STORY of Level 1 printed in FULL format. Copyright 1992 Reuters, Limited October 14, 1992, Wednesday, BC cycle SECTION: Financial Report. LENGTH: 302 words HEADLINE: ATT <T.N> WINS BALDRIDGE AWARD ON CRITERIA IT USES DATELINE: NEW YORK, OCT 14, REUTER BODY: American Telephone and Telegraph Co Chairman Robert Allen said maybe the four-year effort to gauge quality gains within his company by borrowing criteria of the government's Baldridge awards is paying off. The U.S. Commerce Department today named two of ATT's 18 business units among five winners of the 1992 Malcolm Baldridge Quality awards. "In 1989, we decided to use the Baldridge criteria as guidelines for our quality program. I said then that the real challenge is to define quality not from our own perspective, but from the customer's, Allen told reporters afterward. The two ATT winners, Transmission Systems and Universal Card services, make up only a small fraction of ATT's total revenues. ATT has 16 other units. "We do not intend to convey the message that ATT won this award for all its business," Allen said, answering a question. In 1989, ATT was reorganized into 21 business units, since reduced to 18. Ever since, these units have competed against each other in profits, sales and apparently quality. Allen said ATT asks 18 units to evaluate themselves along 100 criteria borrowed from the Baldridge awards application. Then corporate staff choose internal winners. Transmission Systems, one of its oldest businesses and the one that manufactures transmission equipment sold to telephone companies worldwide, won the Baldridge manufacturing Award. Universal Card, ATT's second newest business, a credit card operation that has nothing to do with telephones, won in the service category. The Baldridge awards were started by the late U.S. Commerce Secretary Malcolm Baldridge. Texas Instruments Inc's defense systems electronics group also won a 1992 award for manufacturing and Granite Rock Co won the Baldridge award for small business quality. TM TM TM LEXIS:NEXIS® LEXIS-NEXIS® LEXIS·NEXIS® Services of Mead Data Central, Inc. PAGE 2 3RD STORY of Level 1 printed in FULL format. Copyright 1992 McGraw-Hill Inc. Aerospace Daily October 22, 1992 SECTION: Vol. 14, No. 15; Pg. 121 LENGTH: 181 words HEADLINE: Texas Instruments wins Malcolm Baldridge quality award BODY: Texas Instruments' Defense Systems and Electronics Group, maker of the High-speed Anti-Radiation Missile (HARM) and the Paveway guidance system, has won the 1992 Malcolm Baldridge National Quality Award in manufacturing, becoming the first major defense contractor to capture the Commerce Dept. prize. Group President Hank Hayes said the 15, 000 employee unit has used the contest's standards since 1990 as a "once-a-year physical" to gauge its total quality management growth. Even though TI is prohibited from re-entering the competition for five year, the company will continue to fill out the 75-page application to mark its progress, Hayes said. Because it's not the award, Repeated applications, including two that were followed by three-day it's site the goal. visits, have required persistence and hard work-maybe more than other defense contractors are willing to give, company officials said. "They don't have the patience that is necessary to do what you have to do to improve all the time," a spokesman said. The Commerce Dept. awards two prizes annually in manufacturing, service and small business. TM TM TM LEXIS·NEXIS® LEXIS-NEXIS® LEXIS®NEXIS® Services of Mead Data Central, Inc. THE WHITE HOUSE office of the Press Secretary July 29, 1987 For Immediate Release REMARKS BY THE PRESIDENT AT MEMORIAL SERVICE FOR MALCOIN. 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 PAGE 4 49TH STORY of Level 2 printed in FULL format. Copyright (c) 1980 The New York Times Company; The New York Times December 12, 1980, Friday, Late City Final Edition SECTION: Section A; Page 29, Column 3; National Desk LENGTH: 665 words HEADLINE: MEN IN THE NEWS; EIGHT FOR THE PRESIDENTIAL TEAM BYLINE: By RICHARD L. MADDEN, Special to the New York Times DATELINE: WATERBURY, Conn., Dec. 11 BODY: Some people think that Malcolm Baldrige, who is Ronald Reagan's choice to be Secretary of Commerce, is really two people. There is the Malcolm Baldrige who is a member of the Business Council, director of several large corporations such as AMF, Bendix and Uniroyal, and chairman of the board of Scovill Inc., a diversified manufacturing company with sales of about $1 billion a year and a sleek new corporate headquarters on the edge of town here. Then there is the Malcolm Baldrige, known as ''Mac,' a steer roper on the professional rodeo circuit, a 'heeler'' in a two-man roping team who lassos the hind legs and flips the steer while his partner ropes the head.. The lanky, soft-spoken industrialist, who is 58 years old, moves easily between the seemingly contradictory worlds of a corporate executive and a cowboy. 'Hideaway' Near Office He wears a hand-tooled Western belt with his dark, pin-striped suits. Next to his handsome corporate office here is a small hideaway, with Western pictures, a saddle on a sawhorse and a high table where he can read newspapers while standing up and exercising with bar bells. ''He can move in any circle - business, politics and the rodeo,' said a Connecticut Republican who has worked with Mr. Baldrige. ''He's very disarming, but he cuts right to the heart of a problem, the politician said. ''You don't have long telephone conversations with Mac. If you can't tell him something in two or three minutes, forget it. Mr. Baldrige, a former state Republican finance chairman, ran the Connecticut campaign for George Bush when he was seeking the Republican Presidential nomination. The Connecticut primary last March was one of the few contests in which Mr. Bush defeated Mr. Reagan. Assignment From Bush TM LEXIS·NEXIS® LEXIS-NEXIS® LEXIS·NEXIS® Services of Mead Data Central, Inc. PAGE 5 (c) 1980 The New York Times, December 12, 1980 The industrialist, a longtime friend of the Bush family, at first demurred when Mr. Bush asked him last year to take charge of his Connecticut campaign. Mr. Baldrige explained that he had not been active in politics in the last few years, but Mr. Bush insisted that he could get political advice elsewhere and that what he needed was a good manager. 'He had me there, Mr. Baldrige said later. Several years ago Mr. Baldrige was mentioned as a possible gubernatorial candidate, but he decided that he still had a commitment to stay with Scovill. 'That brass ring only goes around once, he said of elective politics. Malcolm Baldrige Jr. (he no longer uses the junior) was born in Omaha on Oct. 4, 1922. His father was a Republican Congressman from Nebraska in the 1930's His sister, Letitia Baldrige, was the social secretary at the White House when John F. Kennedy was President. A Graduate of Yale He traveled East to the Hotchkiss School and to Yale, where he received his bachelor of arts degree in 1944, but he never quite lost his Western roots or the flat twang of Nebraska. A5 a teen-ager he worked as a $1-a-day ranch hand. He still owns a share of a cattle ranch in New Mexico. After serving with an Army infantry division in the Pacific in World War II, Mr. Baldrige said he was feeling antsy'' and went to work as a mill hand at the Eastern Company's iron foundry in Naugatuck, Conn. By 1960 he was president of the company. Scovill hired him away from Eastern in 1962 and a year later he became president. Wife Joined Fire Department He married the former Margaret Trowbridge Murray in 1951. They have two grown daughters. Mrs. Baldrige was the first female member of the volunteer fire department in the rustic town of Woodbury, where the Baldriges have a large colonial home with horses and cattle nearby. Mr. Baldrige once said that leaving the corporate board rooms and competing with his fellow rodeo riders invigorated him. 'They're probably the most self-reliant, independent men in the country, he said. They have no guarantees and no contracts. They've learned to depend completely on themselves, and they've got the self-confidence that comes from that. GRAPHIC: Illustrations: Photo of Malcolm Baldrige LEXIS·NEXIS® LEXIS-NEXIS® LEXIS·NEXIS® Services of Mead Data Central, Inc. PAGE 2 48TH STORY of Level 2 printed in FULL format. Proprietary to the United Press International 1981 January 6, 1981, Tuesday, AM cycle SECTION: Washington News LENGTH: 500 words HEADLINE: Baldrige favors industry deregulation BYLINE: By IRA R. ALLEN DATELINE: WASHINGTON KEYWORD: Baldrige BODY: Connecticut cowboy Malcolm Baldrige said Tuesday his blend of business experience and political acumen would make him a good commerce secretary and he immediately called for 'top to bottom'' deregulation of industry. President-elect Ronald Reagan's choice to head the Hydra-headed department faced only friendly questioning from the Senate Commerce Committee, which is expected to confirm him unanimously by a telephone poll before the Jan. 20 inauguration. Committee chairman Bob Packwood, R-Ore., said Baldrige could not be voted on immediately because he and ranking Democrat Howard Cannon of Nevada had not yet read the FBI report on the nominee and members wanted to submit written questions. The 58-year-old Baldrige, head of the Connecticut-based, international conglomerate Scovill, Inc. and a political ally of Vice President-elect George Bush, said he would be the businessman's voice in the Cabinet. 'That's the way I'm built,' Baldrige said when asked if he would speak up for businessmen in the Cabinet. 'There is no other way I would do that but to aggressively represent their views. Baldrige, who leads another life as an expert rodeo calf-roper, said he favors changes in the law forbidding American corporations to bribe foreign officials. He said that while the law is fine in theory, it is 50 confusing and expensive to monitor that a 'small manufacturer gives up before he gets into the chute' and cannot compete overseas. He also countered conventional wisdom that the economy will level out in the first quarter of this year. Baldrige predicted that because of continuing economic trouble in the housing, auto and farm sectors the economy is not going to go sideways, it's going to go down. Baldrige was asked why he would make a good secretary considering that he had said when appointed he had no idea where the commerce building is. LEXIS·NEXIS® LEXIS-NEXIS® LEXIS·NEXIS® Services of Mead Data Central, Inc. PAGE 3 Proprietary to the United Press International, January 6, 1981 Citing his 30 years of leadership in a multinational corporation, he added drily, ''I have some, or limited, knowledge of politics and I understand that's necessary in Washington.' He said government regulation hurts small and medium-sized companies more than big business but ''I think we should deregulate from top to bottom. Asked to specify which regulations he thought should go, Baldrige gave auto safety as an example. ''If you take the cost of trying to get a zero-risk car in this country, it costs from $200 to $400 How many of these regulations are needed I don't know but I've heard enough squawking out there to know that if there's heat, there's fire,' Baldrige said. Consumers must be protected, he said, ''but for us to live in a no-risk society it would hurt inflation and would hurt our productivity problem to the point it may be no longer worthwhile. He said he would enforce laws against companies that cooperate with the Arab boycott against Israel even though he feels it is ''one more bond on the flow of free trade. TM TM TM LEXIS·NEXIS® LEXIS-NEXIS® LEXIS·NEXIS® Services of Mead Data Central, Inc. PAGE 12 18TH STORY of Level 1 printed in FULL format. Copyright (c) 1987 The New York Times Company; The New York Times July 26, 1987, Sunday, Late City Final Edition NAME: Malcolm Baldrige CATEGORY: Business and Finance; Politics and Government (US) SECTION: Section 1; Part 1, Page 1, Column 2; National Desk LENGTH: 654 words HEADLINE: COMMERCE SECRETARY BALDRIGE DIES IN RODEO ACCIDENT IN CALIFORNIA BYLINE: By The Associated Press DATELINE: WALNUT CREEK, Calif., July 25 BODY: Commerce Secretary Malcolm Baldrige died at a hospital here today hours after a horse he was riding in a calf-roping event fell on him. Mr. Baldrige, 64 years old, died in surgery at John Muir Memorial Hospital here about 3:50 P.M., said Dr. Naran Patel, a surgeon at the hospital. The Commerce Secretary, a member of President Reagan's Cabinet since 1981, was flown to the hospital by helicopter after the accident at the Jack Roddy Ranch in Brentwood, 45 miles east of San Francisco. [Obituary, page 26.] Major Internal Injuries Mr. Baldrige, who had a lifelong passion for rodeo competition, suffered internal injuries, including tears to the pancreas and heart when the horse fell on him about 1:15 P.M., doctors said. His heart had stopped for several minutes after the accident but a doctor who was at the scene was able to revive him through cardiopulminary resuscitation. Dr. Patel said that in surgery doctors discovered severe internal bleeding that they were unable to stem. He said the aorta and the large vein leading to the heart were both torn. About 90 minutes into the operation, Mr. Baldrige's heart stopped and efforts to restart it through heart massage failed. ''He bled to death from the massive injuries and from the lack of coagulation, said Dr. Ronald LaPorta, chief surgeon at the hospital and one four doctors who operated on the Secretary. 'He was always in shock; he never got out of shock. Statement by Reagan 'The nation has suffered a great loss with the tragic and untimely death of Secretary Malcolm Baldridge, President Reagan said in a statement read by Leslye Arsht, the White House deputy press secretary. LEXIS·NEXIS® LEXIS·NEXIS® LEXIS-NEXIS® Services of Mead Data Central, Inc. PAGE 13 (c) 1987 The New York Times, July 26, 1987 'Under his stewardship, the Department of Commerce played a key role in the rebirth of our country's prosperity and all of us owe a great debt to Mac Baldrige, the President said. Sgt. Larry Aulich of the Contra Costa County Sheriff's Department said Mr. Baldrige was trying to rope a calf when his horse reared and fell backward. The horse fell on Mr. Baldrige ''full force,' Sergeant Aulich said. Dr. Bert D. Johnson, a Stanford University gynecologist who arrived at the ranch just after the accident, said he and volunteer firefighters administered cardiopulminary resuscitation for about four minutes until Mr. Baldrige's heart started beating again and he began breathing. He was then taken to the hospital. Condolences From Bush From Kennebunkport, Me., where he was spending the weekend, Vice President Bush said: ''Mac Baldrige set the standard for excellence, decency and integrity in public life. He was a tower of strengh and truly a man of honor. From Indianapolis, Bob Dole, the Senate Republican leader, said: "I am shocked by the sudden loss of this good man. Mac was a friend, a dedicated public servant who I admired, and a superb cabinet member who earned the respect of Capitol Hill. Elizabeth and I are deeply saddened and our thoughts are with the Baldrige family. Was Scheduled to Appear at Fair Mr. Baldrige had been scheduled to appear tonight at the Contra Costa County Fair. Although he was in his 60's, he competed in about three professional rodeos a year and often participated in roping competitions. His office was filled with mementoes of his lifelong passion: bronze cowboy statues, a coiled lasso, a saddle he won at a 1978 rodeo and a collection of belt buckles won in roping contests. Mr. Baldrige had had several recent health problems. Last December, he came down with viral pneumonia and was hospitalized in Albuquerque. He was flat on his back for nearly four weeks, but said in April that he had made a full recovery. He said he had quit smoking and begun jogging two miles a day. He was one of only three members of Mr. Reagan's original 1981 Cabinet team who were still on the job. The others are Defense Secretary Caspar W. Weinberger and Housing Secretary Samuel R. Pierce Jr. GRAPHIC: Photo of Malcolm Baldrige on the ground after falling from horse (Daily Ledger Antioch/Greg Stidham via AP) LEXIS:NEXIS® LEXIS-NEXIS® LEXIS®NEXIS® Services of Mead Data Central, Inc. 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. PAGE 9 2ND STORY of Level 1 printed in FULL format. Copyright 1992 Globe Newspaper Company The Boston Globe October 15, 1992, Thursday, City Edition SECTION: ECONOMY; Pg. 41 LENGTH: 586 words HEADLINE: Excellence reins at AT&T plant; North Andover employees earn Baldridge award BYLINE: By Diane Lewis, Globe Staff DATELINE: NORTH ANDOVER KEYWORD: AWARD NAME-AT&T MERRIMACK VALLEY PLANT PROFILE- MALCOLM BALDRIDGE NATIONAL QUALITY AWARD BODY: For the state's battered manufacturing sector, it was a bit of bright news amid the bad. AT&T's huge Merrimack Valley plant was awarded a prestigious Malcolm Baldridge National Quality Award for excellence in manufacturing, an area in which Massachusetts has hardly excelled in this deepest of recessions. It was one of two Baldridge awards given to AT&T by the US Commerce Department yesterday. The company's Florida-based Universal Card operation also got a Baldridge award, making AT&T the first in the country to win two of the annual prizes. Since the recession started in July 1990, New England has lost 133,000 manufacturing jobs, or 11 percent of all the jobs. The country as a whole is losing manufacturing jobs at just half that rate. Rhode Island and Massachusetts have been among the hardest hit states in the country. The big losses in manufacturing - a traditional provider of good-paying jobs for a blue-collar work force - have helped deepen New England's recession, and there is a growing concensus that the region must shore up the industry if the economy is to turn around. "This is a big, big deal," Gov. Weld said yesterday. "It will train the glare of publicity in this area and show other companies that they can be a high-end producer with no loss of jobs." With 7,000 workers, the North Andover plant is the state's largest manufacturer. It is a leading supplier of fiber-optic lines and other transmission equipment. John F. McKinnon, AT&T vice president and general manager, told a cheering crowd of employees the transmissions unit has doubled international sales over the last three years and now sells systems to more than 50 countries. TM TM LEXIS:NEXIS® LEXIS-NEXIS® LEXIS-NEXIS® Services of Mead Data Central, Inc. PAGE 10 The Boston Globe, October 15, 1992 Company officials credited AT&T's total quality program with a 50 percent reduction in the time it takes to bring a new product into the market, 50 percent reduction in manufacturing intervals, a 40 percent reduction in inventory and roughly $ 400 million in cost savings over the past four years. "We sell $ 100 million worth of equipment from this plant to Japan alone," McKinnon said. "We go to head to head with NEC, Hitachi - the best in the world - and we're winning because we focus on serving customers well." Named for the late Commerce Department secretary, the Baldrige award is designed to raise awareness about quality management in US companies. Since 1988, 17 companies have won. In addition to AT&T's two awards, other winners were Texas Instruments Inc. 's Defense Systems & Electronics Group of Dallas, also in the manufacturing category; the Ritz-Carlton Hotel Co. of Atlanta, in the service category; and Granite Rock Co. of Watsonville, Calif., in the small business category. AT&T's Universal Card Services in Jacksonville, Fla., one of the company's newer businesses, markets and provides customer services for combination long-distance calling and general-purpose credit card. The telephone card has had a comprehensive quality program in place since it was launched in March 1990. Since then, the combined long-distance calling card and AT&T's general purpose credit card has become the second most popular card in the industry, with 10 million accounts and 15 million cards issued. In a televised speech, AT&T chairman Robert E. Allen said the Massachusetts and Florida units operate separate businesses, but share a strong commitment to quality. He said management and union-represented employees jointly serve on quality teams and carry out initiatives designed to serve customers quickly. GRAPHIC: PHOTO, AT&T employee Earl Frazier pauses from his work on circuit boards at the Baldridge-winning North Andover plant. GLOBE PHOTO / EVAN RICHMAN LEXIS:NEXIS® LEXIS-NEXIS® LEXIS-NEXIS® Services of Mead Data Central, Inc. old draft Nix December 8, 1992 Draft One BALDRIGE PRESIDENTIAL REMARKS: MALCOLM BALDRIGE QUALITY AWARDS MALCOLM BALDRIGE GREAT HALL, DOC MONDAY, SEPTEMBER 14, 1992 11:30 A.M. [Acknowledgments] I always look forward to this yearly awards ceremony. An opportunity to honor industry's best. And a chance to revisit the legacy of an extraordinary man -- Malcolm Baldrige. I remember a story President Reagan loved to tell of the day he phoned Mac to ask him to join his Cabinet. He was told by Midge that he'd have to call back later: Mac was out on his horse roping and he couldn't come to the phone. That was Mac. Hewas A man whose collection of belt buckles was the only thing that could outnumber his many achievements. After being appointed Commerce Secretary, a reporter asked him what made him qualified for such a post when he didn't even know where the Commerce building sits. "I have some, or limited, knowledge of politics," he said, "and I understand that's necessary in Washington."// In a hand-tooled western belt and a pin-stripe suite, of Mac was the Connecticut cowboy -- the only guy I knew who'd complain of saddle sores from sitting at a desk too long. He used to say 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. That was true of Mac. When he talked business, he meant business. And when he talked of making America's products second to none, you listened. The standards of excellence Mac embodied are still very much with us. Fairness, honesty, tenacity. These were his yardsticks. The same yardsticks we use today in looking for the very best that American industry has to offer. And this year, we have found them in five exceptional companies. Some might think the Commerce Department offered a two-for- one deal with AT&T -- but not so. Though both Transmission Systems and Universal Card Services are divisions of AT&T, they are two separate businesses, who share one common goal -- a commitment to quality. AT&T Chairman Robert Allen said of this commitment: "The real challenge is to define quality not from our own perspective, but from the customer's." This both divisions have done. Transmission Systems Business Unit dedicates itself not only to its customers short- term needs, but its long-term needs as well. With the input of more than 7500 employees at nine U.S. sites, TSBU has initiated programs to predict what new technologies will be needed to meet their customers long-term goals. Right now, TSBU is the second largest maker of transmission systems, but having shown an cut unyielding commitment to customer satisfaction, this company is sure to reach its goal to be number one in its field by 1997. In slightly just more than 3 years, TSBU has doubled international sales and now sells systems to more than 50 countries. That's a lot of satisfied customers. Universal Card Services hasn't become a benchmark of other companies by accident But by effort -- top performances by all of its 2500 employees. UCS led its charge to excellence by centralizing their business around one key principle: "delight the customer." And it seems they are, indeed, delighted. 98% of their customers rate overall services as better than the competition. 98%. [[That's one poll I could have used a month ago. //]] It's not often that a small business means big business, but it's true for the Granite Rock Company. With the initiation of their Total Quality Program, Granite Rock has outshined other ed construction materials businesses by exceeding its industry standards for high quality and unmatched service. Rather than a well- worn path follow the same course as its competitors, Granite Rock chose to chart its own way -- a journey that has brought them here today - - an award-winning company that defines success in three little words: "another satisfied customer." Ritz-Carlton won 121 quality-related awards in 1991, but ask any employee how they gauge their success and they'll say -- the Gold Standards -- the Ritz-Carlton's bible for premium service. With almost 12,000 employees, the Ritz-Carlton has implemented a rigorous quality program that seeks "a memorable visit" for every customer guest This luxury hotel business knows that a mint on the pillow isn't enough to keep a customer coming back. It's the principle "service must be excellent if it is anything" that has earned Ritz-Carlton one of the most loyal followings in its industry. For Texas Instruments Defense Systems & Electronics Group, its best product is always surpassed by its next innovation. Mac used to call this kind of inventiveness "Yankee ingenuity." a [[I'm not sure this-Texas-based company cottons to being called "yankee" -- but ingenious, I think they'll accept. //]] Formed during World War II, this TI subsidiary has grown to become the nation's eighth largest defense electronics contractor. We know from the success of Desert Storm, that in matters of advanced weaponry, quality is key. And we know, too, from the success of Desert Storm, that TI's contributions to this effort were invaluable. In today's competitive global marketplace, quality of service and quality of goods takes on top priority in American business. Premium standards are no longer lofty goals, but vital components of every basic business strategy. This year's Baldrige award winners know that quality standards do not impede success, they encourage it. Mac would agree. Each time we revisit our memories of Mac Baldrige at this ceremony, I'm reminded of the wisdom he used to impart most often -- always, in anything and everything, rise to the highest standard. This year's Malcolm Baldrige Quality Award Winners have all done just that. Congratulations. May God bless you all and the United States of America. # # # Nix December 8, 1992 Draft One BALDRIGE PRESIDENTIAL REMARKS: MALCOLM BALDRIGE QUALITY AWARDS MALCOLM BALDRIGE GREAT HALL, DOC MONDAY, SEPTEMBER 14, 1992 11:30 A.M. [Acknowledgments] I always look forward to this yearly awards ceremony. An opportunity to honor industry's best. And a chance to revisit the legacy of an extraordinary man -- Malcolm Baldrige. I remember a story President Reagan loved to tell of the day he phoned Mac to ask him to join his Cabinet. He was told by Midge that he'd have to call back later: Mac was out on his horse roping and he couldn't come to the phone. That was Mac. A man whose collection of belt buckles was the only thing that could outnumber his many achievements. After being appointed Commerce Secretary, a reporter asked him what made him qualified for such a post when he didn't even know where the Commerce building sits. "I have some, or limited, knowledge of politics," he said, "and I understand that's necessary in Washington."// In a hand-tooled western belt and a pin-stripe suite, Mac was the Connecticut cowboy -- the only guy I knew who'd complain of saddle sores from sitting at a desk too long. He used to say 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. That was true of Mac. When he talked business, he meant business. And when he talked of making America's products second to none, you listened. The standards of excellence Mac embodied are still very much with us. Fairness, honesty, tenacity. These were his yardsticks. The same yardsticks we use today in looking for the very best that American industry has to offer. And this year, we have found them in five exceptional companies. Some might think the Commerce Department offered a two-for- one deal with AT&T -- but not so. Though both Transmission Systems and Universal Card Services are divisions of AT&T, they are two separate businesses, who share one common goal -- a commitment to quality. AT&T Chairman Robert Allen said of this commitment: "The real challenge is to define quality not from our own perspective, but from the customer's. " This both divisions have done. Transmission Systems Business Unit dedicates itself not only to its customers short- term needs, but its long-term needs as well. With the input of more than 7500 employees at nine U.S. sites, TSBU has initiated programs to predict what new technologies will be needed to meet their customers long-term goals. Right now, TSBU is the second largest maker of transmission systems, but having shown an unyielding commitment to customer satisfaction, this company is sure to reach its goal to be number one in its field by 1997. In just more than 3 years, TSBU has doubled international sales and now sells systems to more than 50 countries. That's a lot of satisfied customers. Universal Card Services hasn't become a benchmark of other companies by accident. But by effort -- top performances by all of its 2500 employees. UCS led its charge to excellence by centralizing their business around one key principle: "delight the customer." And it seems they are, indeed, delighted. 98% of their customers rate overall services as better than the competition. 98%. [[That's one poll I could have used a month ago. //]] It's not often that a small business means big business, but it's true for the Granite Rock Company. With the initiation of their Total Quality Program, Granite Rock has outshined other construction materials businesses by exceeding its industry standards for high quality and unmatched service. Rather than follow the same course as its competitors, Granite Rock chose to chart its own way -- a journey that has brought them here today - - an award-winning company that defines success in three little words: "another satisfied customer." Ritz-Carlton won 121 quality-related awards in 1991, but ask any employee how they gauge their success and they'll say -- the Gold Standards -- the Ritz-Carlton's bible for premium service. With almost 12,000 employees, the Ritz-Carlton has implemented a rigorous quality program that seeks "a memorable visit" for every customer. This luxury hotel business knows that a mint on the pillow isn't enough to keep a customer coming back. It's the principle "service must be excellent if it is anything" that has earned Ritz-Carlton one of the most loyal followings in its industry. For Texas Instruments Defense Systems & Electronics Group, its best product is always surpassed by its next innovation. Mac used to call this kind of inventiveness "Yankee ingenuity." [[I'm not sure this Texas-based company cottons to being called "yankee" -- but ingenious, I think they'll accept. //]] Formed during World War II, this TI subsidiary has grown to become the nation's eighth largest defense electronics contractor. We know from the success of Desert Storm, that in matters of advanced weaponry, quality is key. And we know, too, from the success of Desert Storm, that TI's contributions to this effort were invaluable. In today's competitive global marketplace, quality of service and quality of goods takes on top priority in American business. Premium standards are no longer lofty goals, but vital components of every basic business strategy. This year's Baldrige award winners know that quality standards do not impede success, they encourage it. Mac would agree. Each time we revisit our memories of Mac Baldrige at this ceremony, I'm reminded of the wisdom he used to impart most often -- always, in anything and everything, rise to the highest standard. This year's Malcolm Baldrige Quality Award Winners have all done just that. Congratulations. May God bless you all and the United States of America. # # # oldrafts Nix December 8, 1992 Draft One BALDRIGE PRESIDENTIAL REMARKS: MALCOLM BALDRIGE QUALITY AWARDS MALCOLM BALDRIGE GREAT HALL, DOC MONDAY, SEPTEMBER 14, 1992 11:30 A.M. [Acknowledgments] I always look forward to this yearly awards ceremony. An opportunity to honor industry's best. And a chance to revisit the legacy of an extraordinary man -- Malcolm Baldrige. I remember a story President Reagan loved to tell of the day he phoned Mac to ask him to join his Cabinet. He was told by Midge that he'd have to call back later: Mac was out on his horse roping and he couldn't come to the phone. That was Mac. A man whose collection of belt buckles was the only thing that could outnumber his many achievements. After being appointed Commerce secretary, a reporter asked him what made him qualified for such a post when he didn't even know where the Commerce building sits. "I have some, or limited, knowledge of politics," he said, "and I understand that's necessary in Washington."// In a hand-tooled western belt and a pin-stripe suite, Mac was the Connecticut cowboy -- the only guy I knew who'd complain of saddle sores from sitting at a desk too long. He used to say 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. That was true of Mac. When he talked business, he meant business. And when he talked of making America's products second to none, you listened. The standards of excellence Mac embodied are still very much with us. Fairness, honesty, tenacity. These were his yardsticks. The same yardsticks we use today in looking for the very best that American industry has to offer. And this year, we have found them in five exceptional companies. Some might think the Commerce Department offered a two-for- one deal with AT&T -- but not so. Though both Transmission Systems and Universal Card Services are divisions of AT&T, they are two separate businesses, who share one common goal -- a commitment to quality. AT&T Chairman Robert Allen said of this commitment: "The real challenge is to define quality not from our own perspective, but from the customer's." This both divisions have done. Transmission Systems Business Unit dedicates itself not only to its customers short- term needs, but its long-term needs as well. With the input of more than 7500 employees at nine U.S. sites, TSBU has initiated programs to predict what new technologies will be needed to meet their customers long-term goals. Right now, TSBU is the second largest maker of transmission systems, but having shown an unyielding commitment to customer satisfaction, this company is sure to reach its goal to be number one in its field by 1997. In just more than 3 years, TSBU has doubled international sales and now sells systems to more than 50 countries. That's a lot of satisfied customers. Universal Card Services hasn't become a benchmark of other companies by accident. But by effort -- top performances by all of its 2500 employees. UCS led its charge to excellence by centralizing their business around one key principle: "delight the customer." And it seems they are, indeed, delighted. 98% of their customers rate overall services as better than the competition. 98%. [[That's one poll I could have used a month ago. //]] It's not often that a small business means big business, but it's true for the Granite Rock Company. With the initiation of their Total Quality Program, Granite Rock has outshined other construction materials businesses by exceeding its industry standards for high quality and unmatched service. Rather than follow the same course as its competitors, Granite Rock chose to chart its own way -- a journey that has brought them here today - - an award-winning company that defines success in three little words: "another satisfied customer." Ritz-Carlton won 121 quality-related awards in 1991, but ask any employee how they gauge their success and they'll say -- the Gold Standards -- the Ritz-Carlton's bible for premium service. With almost 12,000 employees, the Ritz-Carlton has implemented a rigorous quality program that seeks "a memorable visit" for every customer. This luxury hotel business knows that a mint on the pillow isn't enough to keep a customer coming back. It's the principle "service must be excellent if it is anything" that has earned Ritz-Carlton one of the most loyal followings in its industry. For Texas Instruments Defense Systems & Electronics Group, its best product is always surpassed by its next innovation. Mac used to call this kind of inventiveness "Yankee ingenuity." [[I'm not sure this Texas-based company cottons to being called "yankee" -- but ingenious, I think they'll accept. //1] Formed during World War II, this TI subsidiary has grown to become the nation's eighth largest defense electronics contractor. We know from the success of Desert Storm, that in matters of advanced weaponry, quality is key. And we know, too, from the success of Desert Storm, that TI's contributions to this effort were invaluable. In today's competitive global marketplace, quality of service and quality of goods takes on top priority in American business. Premium standards are no longer lofty goals, but vital components of every basic business strategy. This year's Baldrige award winners know that quality standards do not impede success, they encourage it. Mac would agree. Each time we revisit our memories of Mac Baldrige at this ceremony, I'm reminded of the wisdom he used to impart most often -- always, in anything and everything, rise to the highest standard. This year's Malcolm Baldrige Quality Award Winners have all done just that. Congratulations. May God bless you all and the United States of America. # # # with us. Fairness, honesty, tenacity. These were his yardsticks. The same yardsticks we use today in looking for the very best that American industry has to offer. And this year, we have found them in five exceptional companies. Some might think the Commerce Department offered a two-for- one deal with AT&T -- but not so. Though both Transmission Systems and Universal Card Services are divisions of AT&T, they are two separate businesses, who share one common goal -- a commitment to quality. AT&T Chairman Robert Allen said of this goal: "The real challenge is to define quality not from our own perspective, but from the customer's." This both divisions have done. Transmission Systems Business Unit dedicates itself not only to its customers short-term needs, but its long-term needs as well. With the contributions of more than 7500 people at nine U.S. sites, TSBU has initiated programs to predict what new technologies will be needed to meet their customers long-term goals. Right now, TSBU is the second largest maker of transmission systems. With its commitment to keep an ear to the voice of all its customers, this company is sure to reach its 1997 goal to be number one in its field. In just more than 3 years, TSBU has doubled international sales and now sells systems to more than 50 countries. That's a lot of satisfied customers. Universal Card Services hasn't become a benchmark of other companies by accident. But by effort -- top performances by all of its 2500 employees. UCS led its charge to excellence by centralizing their business around one key principle: "delight the customer." And it seems they are, indeed, delighted. 98% of their customers rate overall services as better than the competition. 98%. [[That's one poll I could have used a month ago. //]] It's not often that a small business means big business, but it's true for the Granite Rock Company. With the initiation of their Total Quality Program, Granite Rock has outshined other construction materials businesses by exceeding its industry standards for high quality and unmatched service. Rather than follow the same course as its competitors, Granite Rock chose to chart its own way -- a journey that has brought them here today - - an award-winning company that defines success in three little words: "another satisfied customer." Ritz-Carlton won 121 quality-related awards in 1991, but ask any employee how they gauge their success and they'll say -- the Gold Standards -- the Ritz-Carlton's bible for premium service. With almost 12,000 employees, the Ritz-Carlton has implemented a rigorous quality program that seeks "a memorable visit" for every customer. This luxury hotel business knows that a mint on the pillow isn't enough to keep a customer coming back. It's the principle that "service must be excellent if it is anything" that has earned Ritz-Carlton one of the most loyal followings in its industry. For Texas Instruments Defense Systems & Electronics Group, its best product is always surpassed by its next innovation. Mac used to call this kind of inventiveness "Yankee ingenuity." [[I'm not sure this Texas-based company cottons to being called "yankee" -- but ingenious, I think they'll accept. //]] Formed during World War II, this TI subsidiary has grown to become the nation's eighth largest defense electronics contractor. We know from the success of Desert Storm, that in matters of advanced weaponry, quality is key. And we know, too, from the success of Desert Storm, that TI's contributions to this effort were invaluable. In today's competitive global marketplace, quality of service and quality of goods takes on top priority in American business. Premium standards are no longer lofty goals, but vital components of every basic business strategy. This year's Baldrige award winners know that quality standards do not impede success, they encourage it. Mac would agree. As with all great western stories, none of us are ever ready for the day the cowboy rides off into the sunset. Even so, there are some people in life whose memory you never quite let go. Each time we revisit our memories of Mac Baldrige at this ceremony, I'm reminded of the wisdom he imparted most often -- always, in anything and everything, rise to the highest standard. The Malcolm Baldrige Quality Award Winners have all done just that. Congratulations. May God bless you all and the United States of America. # # # Nix December 8, 1992 Draft One BALDRIGE PRESIDENTIAL REMARKS: MALCOLM BALDRIGE QUALITY AWARDS MALCOLM BALDRIGE GREAT HALL, DOC MONDAY, SEPTEMBER 14, 1992 11:30 A.M. [Acknowledgments] I always look forward to this yearly awards ceremony. An opportunity to honor industry's best. And a chance to revisit the legacy of an extraordinary man -- Malcolm Baldrige. I remember a story President Reagan loved to tell of the day he phoned Mac to ask him to join his Cabinet. He was told by Midge that he'd have to call back later: Mac was out on his horse roping and he couldn't come to the phone. That was Mac. A man whose collection of belt buckles was the only thing that could outnumber his many achievements. After being appointed Commerce secretary, a reporter asked him what made him qualified for such a post when he didn't even know where the Commerce building sits. "I have some, or limited, knowledge of politics," he said, "and I understand that's necessary in Washington.' "// In a hand-tooled western belt and a pin-stripe suite, Mac was the Connecticut cowboy -- the only guy I knew who'd complain of saddle sores from sitting at a desk too long. He used to say 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. That was true of Mac. When he talked business, he meant business. And when he talked of making America's products second to none, you listened. The standards of excellence Mac embodied are still very much PAGE 4 5TH STORY of Level 1 printed in FULL format. Copyright 1992 News World Communications, Inc. The Washington Times October 5, 1992, Monday, Final Edition SECTION: Part E; COMMENTARY; Pg. E3 LENGTH: 853 words HEADLINE: American business summit BYLINE: Barbara Hackman Franklin BODY: America's ability to increase its exports abroad, thus enhancing our domestic economic prosperity, depends primarily on our ability to do three things: gain greater access to foreign markets, produce competitively priced goods and services, and ensure that the quality of these products is second to none. Today, the Commerce Department will host a summit of major American business leaders. Our intention will be to address the third component of this equation for success: the quality of American products. This summit, like the Bush administration policy toward American business, seeks to enhance America's competitiveness and defend our role as the world's economic leader. Our goal is simple: ensure that the phrase "made in America" remains a synonym for quality. Promoting American exports abroad often can be frustrating work, primarily because much of our ability to expand American exports depends not on what Americans do, but on the cooperation of governments abroad. For instance, America can negotiate for the removal of trade barriers to our exports (like we are doing now with Mexico) but whether these barriers are removed can depend ultimately on foreign governments' willingness to see the mutual dividends derived from free trade. Sometimes foreign governments quickly see these merits; sometimes they don't. Even the prices of our products are not entirely up to us. American businesses can produce competitively priced products, but if foreign governments erect tariffs, or subsidize their own industries, American products may have a difficult time competing. Our comparative costs increase, thus artificially increasing the price of American goods. Fortunately, this is not the case when it comes to quality. The quality of American goods rests entirely in the hands of America's business management and workers. It is one of the few areas where, regardless of policies abroad, America can continue making unilateral headway. As a result, continually enhancing the quality of American goods and services must be a central component to our trade policy - a pressing priority to both American business and to Washington. To date, the biggest problem with American competitiveness, and the quality of American goods, has not been the American worker or American ingenuity; both remain unmatched in the world today. The primary problem, rather, rests with economic policies in Washington. Rather than adopting policies that would encourage creativity, entrepreneurship and concern for innovativeness and TM TM LEXIS:NEXIS® LEXIS-NEXIS® LEXIS-NEXIS® Services of Mead Data Central, Inc. PAGE 5 The Washington Times, October 5, 1992 detail, Congress often has sought to stifle American businesses with excessive taxation and overregulation. Result: American businesses have been forced to spend more time keeping their heads above water than enhancing the quality of their products. This is why President Bush has been arguing assertively for substantial economic reforms - a cut in the capital gains tax, support for small business development, and policies that encourage investment in new research and technology. These policies, opposed by Bill Clinton and most Democrats in Congress, will benefit America's competitive nature by creating an economic environment that encourages American companies to produce goods and services whose quality is unmatched. Quality products, in turn, will enhance America's export capabilities, producing more jobs and prosperity at home. The ultimate test of a product's quality is its success in the global marketplace, but the Commerce Department also has taken an additional step to reward quality: the Malcolm Baldridge Quality Award. Awarded annually, the Baldrige award highlights America's quality success stories: those companies - small, medium, or large - that have enhanced the value of the "made in America" slogan by producing products or services of extraordinary quality. And there is a final, seldom-mentioned, step that government must take to encourage private sector quality. That is to restore its own credibility with the American people by holding itself to the highest standards of quality. Surely, it is nothing short of hypocritical if a government known for overstaffing, overspending and underproducing turns to the business world and preaches "quality." Therefore, it is critical that all agencies and departments, and especially Congress, look seriously at the expenditure of American tax dollars and ask themselves a fundamental question: How can this be done better and more efficiently, or should government be doing this at all? Rewarding quality with the recognition it deserves, while pushing for economic policies at home that afford companies the opportunity to improve their product quality, is the key to improving the overall quality of American products. This, in turn, will help ensure that the modern economic miracle known as America maintains its cutting edge role as the world's leading economic power - in both quantity and quality. Barbara Hackman Franklin is the U.S. secretary of commerce. LEXIS:NEXIS® LEXIS-NEXIS® LEXIS·NEXIS® Services of Mead Data Central, Inc. PAGE 7 1ST STORY of Level 1 printed in FULL format. The Business Journal-Jacksonville Copyright Jacksonville Business Journal 1992; Business Dateline; Copyright 1992 UMI/Data Courier October 16, 1992 SECTION: Vol 8; No 1; Sec 1; pg 1 LENGTH: 664 words HEADLINE: Baldridge Wannabes, Universal Card Offers Examples of Quality BYLINE: Donna DATELINE: Jacksonville; FL; US BODY: Companies that want to call themselves quality-oriented might take a lesson from 1992 Malcolm Baldridge National Quality Award winner AT&T Universal Card Services Corp. # When Universal Card wanted to know if cardmembers preferred mail or phone calls from the company, it sent out a questionnaire in its billing statements last year. * When Universal Card received complaints last year about the interest charged on cash advances, the company's pricing committee restructured the program, setting up a grace period and a transaction fee. * When a glitch last summer in Universal Card's authorizations system caused customers trying to use the card to be rejected at department stores, President Paul Kahn sent out apology letters and $ 10 certificates to each of those customers. Universal Card, the Jacksonville-based credit card subsidiary of AT&T Corp., celebrated its second anniversary in March. It's one of five companies to win the coveted Malcolm Baldridge Award this year, which recognizes a company's methods for assuring quality of goods and services. Universal Card has "brought more competitive energy into a complacent (credit card) industry," said Kahn, in an interview on Wednesday from NEW York. Kahn said Universal Card used the Baldridge process as a template in setting up the credit card subsidiary here. "We started with a clean slate," Kahn said. In 30 months, Universal Card-the nation's second largest credit card company--has changed the credit card industry, he continued. Universal Card' 5 2,500 employees operate under 120 daily quality measurements, including courtesy, accuracy and timeliness, Kahn said. "We even measure the courtesy of our associates with delinquent customers. Seventy percent of our delinquent customers said they'd recommend the card to their friends." LEXIS·NEXIS® LEXIS-NEXIS® LEXIS·NEXIS® Services of Mead Data Central, Inc. PAGE 8 The Business Journal-Jacksonville, October 16, 1992 Universal Card, which turned profitable last summer, opened its 10 millionth account last month. To date, the company's 16 million cardholders have charged $ 30 billion on the card. Since its inception, Universal Card's interest rate has dropped five times because its interest rate charge is linked to the prime rate, a benchmark rate banks use in setting loan rates. Customers now pay an annual rate of 14.9 percent, 3.1 percentage points below the industry average. Baldridge winners generally host 30,000 to 50,000 visitors per year, which will be significant for Jacksonville, Kahn said. Universal Card is already working with the Jacksonville Chamber of Commerce to accommodate those visitors and to showcase Jacksonville. Alan Schultheis, Universal Card executive vice president-marketing, said the award is significant for Jacksonville because 80 percent of Universal Card's employees are from Jacksonville. "That's clearly a testimony to the work force in this town," Schultheis said. "We came here because the type of people we needed for this vision are here," he said. "Dedicated employees are a big part of what won it for us." The Malcolm Baldridge Award was established in 1987 to honor the late Malcolm Baldridge, who was U.S. Secretary of Commerce under President Ronald Reagan. It's managed by the Commerce Department's National Institute of Standards and Technology. A maximum of two awards are given each year in three categories: large manufacturing, large service and small business. Since 1988, 17 companies have won the award. In addition to AT&T Universal Card, which won in the service category, 1992 winners include: AT&T Network Systems Group/Transmission Systems Business Unit, based in Morristown, N.J., which won in the manufacturing category; Dallas-based Texas Instruments Inc. Defense Systems & Electronics Group, also in the manufacturing category; Atlanta-based The Ritz-Carlton Hotel Co., in the service category; and Watsonville, Calif.-based Granite Rock Co., in the small business category. "It says a lot for Jacksonville between AT&T and the Ritz-Carlton winning," said Ritz-Carlton spokeswoman Alison Adams. SUBJECT: Financial services; Credit cards; Quality; Awards; Customer services; South Atlantic GEOGRAPHIC: South Atlantic Region; Jacksonville; FL; US COMPANY: AT&T Universal Card Services; SIC: 6140 LOAD-DATE-MDC: November 17, 1992 LEXIS·NEXIS® LEXIS-NEXIS® LEXIS-NEXIS® Services of Mead Data Central, Inc. DEC-07-1992 16:02 FROM PAD TO 12024566218 P.001/005 National Institute of Standards and Technology (NIST) PUBLIC AFFAIRS DIVISION TELECOPIER COVER SHEET Building 101 - Room A903 Gaithersburg, MD 20899 Date: 12/7 To: Michelle Nix FAX 202-456-6218 ORIG. TELEPHONE X 77.50 From: Jan Kosko FAX 301-926-1630 ORIG. NIST/PUBLIC AFFAIRS OFFICE TELEPHONE 301-975-2767 Number of Pages (including cover sheet): The only thing by sec. Bald nise that A've found so far is a attached. Also a attached ir his Go { general into from Quality Anfrovement Act. Malcolm Baldrige National Quality Award 12 13 P.002/005 :hnical personnel among academia, industry, and Federal labora- tirely consistent with the President's objectives. Indeed, your staff's ies. Such program shall include both (1) federally supported ex- proposal to adopt the President's own theme of "A Quest for Excel- anges and (2) efforts to stimulate exchanges without Federal lence" as the medal's inscription reflects clearly that this is a goal ading. shared by our respective branches. C. [17.] 18. AUTHORIZATION OF APPROPRIATIONS. H.R. 812 takes yet another step in encouraging American busi- a) There is authorized to be appropriated to the Secretary for nesses to improve the quality of their goods and services, and does rposes of carrying out section 6, not to exceed $19,000,000 for the SO without throwing a lot of dollars around indiscriminately at pro- 12024566218 cal year ending September 30, 1981, $40,000,000 for the fiscal grams of unproven worth. We have to encourage American execu- ar ending September 30, 1982, $50,000,000 for the fiscal year tives to get out of their boardrooms and onto the factory floor to ding September 30, 1983, and $60,000,000 for each of the fiscal learn how their products are made and how they can be made ars ending September 30, 1984, and 1985. better. b) In addition to authorizations of appropriations under subsec- Turning to the bill itself, I agree with you that the focus should n (a), there is authorized to be appropriated to the Secretary for be on awards to business rather than to state and local govern- rposes of carrying out the provisions of this Act, not to exceed ments. The public services they provide to their citizens are of a 000,000 for the fiscal year ending September 30, 1981, $9,000,000 different nature. I also agree that the program should be run out of the fiscal year ending September 30, 1982, and $14,000,000 for the National Bureau of Standards (NBS). The program will fail if ch of the fiscal years ending September 30, 1983, 1984, and 1985. the awards are perceived as politically motivated to reward favored c) Such sums as may be appropriated under subsections (a) and companies or generous contributors, but NBS's reputation is suffi- shall remain available until expended. cient to end any such accusation. For the same reason, I agree that TO d) To enable the National Science Foundation to carry out its audits should be performed by external contractors. wers and duties under this Act only such sums may be appropri- Sincerely, ed as the Congress may authorize by law. MALCOLM BALDRIGE, C. [18.] 19. SPENDING AUTHORITY. Secretary of Commerce. No payments shall be made or contracts shall be entered into rsuant to the provisions of this Act (other than sections 11, 12, d 13) except to such extent or in such amounts as are provided in vance in appropriation Acts. XIII. COMMITTEE RECOMMENDATION H.R. 812 was ordered favorably reported on May 13, 1987, by the mmittee by voice vote, a quorum being present. XIV. ADMINISTRATION VIEW THE SECRETARY OF COMMERCE, Washington, DC, May 13, 1987. DEC-07-1992 16:03 FROM PAD n. DOUG, WALGREN, airman, Subcommittee on Science, Research and Technology, Committee on Science, Space, and Technology, House of Repre- sentatives, Washington, DC. DEAR MR. CHAIRMAN: Thank you for giving the Administration opportunity to comment on the Committee's proposed markup H.R. 812, which establishes the National Quality Award. The ministration supports this bill. in explaining the President's reasoning for establishing a nation- goal of assuring American competitive preeminence into the xt century, the White House announced that "(b)usiness must rk more efficiently; setting high standards of quality; streamlin- : operations; discarding outmoded systems and management les; adapting to change; and building on their tradition as entre- eneurs who saw a better way, had a better idea, worked a little rder." H.R. 812 seeks, with a minimum of Federal intrusion or it, to encourage effective quality management and, as such, is en- DEC-07-1992 16:03 FROM PAD TO 12024566218 P.003/005 MALCOLM BALDRIGE NATIONAL QUALITY IMPROVEMENT ACT OF 1987 P.L. 100-107, see page 101 Stat. 724 DATES OF CONSIDERATION AND PASSAGE House June 8, August 7, 1987 Senate August 5, 1987 House Report (Science, Space, and Technology Committee) No. 100-96, May 18, 1987 [To accompany H.R. 812] Senate Report (Commerce, Science, and Transportation Committee) No. 100-143, Aug. 4, 1987 [To accompany H.R. 812] Cong. Record Vol. 133 (1987) The Senate Report is set out below. SENATE REPORT NO. 100-143 (page 1] The Committee on Commerce, Science, and Transportation, to which was referred the bill (H.R. 812) to amend the Stevenson- Wydler Technology Innovation Act of 1980 to establish a National Quality Award, with the objective of encouraging American busi- ness and other organizations to practice effective quality control in the provision of their goods and services, having considered the same, reports favorably thereon with an amendment in the nature of a substitute and an amendment to the title and recommends that the bill do pass. PURPOSE OF THE BILL The purpose of the bill is to establish a Malcolm Baldrige Nation- al Quality Award program, in honor of the late Secretary of Com- merce, Malcolm Baldrige, with the objective of encouraging Ameri- can business and other organizations to improve the quality of their goods and services. BACKGROUND AND NEEDS Until a few decades ago, the United States was a world leader in quality, and that leadership provided us with a broad market for our products both domestically and overseas. In recent years, how- ever, that leadership role has been challenged strongly by foreign competition. American business and industry are beginning to understand that poor quality results in lower sales, and that improved quality (page 2] of goods and services goes hand in hand with improved productivi- ty, lower costs, and increased profitability. Commitment to excel- lence in manufacturing and services through strategic planning for quality and quality improvement programs is becoming more and more essential to the well-being of our Nation's economy and our 722 DEC-07-1992 16:04 FROM PAD TO 12024566218 P.004/005 QUALITY IMPROVEMENT ACT P.L. 100-107 ability to compete effectively in the global marketplace. This em- phasis on excellence, good management practices, and high quality in manufactured products can be observed not only in Japan but in other parts of the Pacific Basin, such as Taiwan, Singapore, and South Korea. To be successful, quality improvement programs must be man- agement-led and customer-oriented, and this may require funda- mental changes in the way companies and agencies do business. In o. 100-96, an effort to regain the quality edge in many fields we. have lost to Japan and several European nations, many experts have called for nmittee) the creation of a national quality award to stimulate quality man- agement in American industries. Such an award would parallel the Deming Prize awarded annually in Japan to the company which does the best job in quality throughout its organization. Japanese industry competes fiercely for this award. Companies know the av- erage Japanese citizen pays attention to who wins and equates the award with the highest quality of products. Ironically, the Japa- nese prize was set up by an American, Dr. Edwards Deming, who was a major participant in the effort to get Japanese industry back on its feet after World War II. Dr. Joseph Juran and Dr. Deming rtation, to began promoting a vision of quality manufacturing that would Stevenson- change the world. Unfortunately, many companies in the United 1 National States did not stress this approach while the Japanese accepted the ican busi- Juran/Deming emphasis on quality products and management. control in Other countries are following Japan's lead. Australia has had a idered the J.M. Juran Award since 1975; Margaret Thatcher has announced the nature the British National Quality Campaign and the British Quality commends Award; and the French have instituted the Industrial Quality Prize. MALCOLM BALDRIGE ge Nation- Secretary of Commerce Malcolm Baldrige took a personal inter- est in H.R. 812, and helped to write the version which passed the :y of Com- ng Ameri- House of Representatives on June 8, 1987. The Secretary's interest in H.R. 812 reflected his lifelong com- quality of mitment, as both a successful businessman and a respected public servant, to encourage improved quality and productivity in Ameri- can industry. He saw quality and performance as the keys to this country's prosperity and long-term strength. He had a lifetime of 1 leader in interest and experience in manufacturing. Prior to joining the Cab- narket for inet, Mr. Baldrige served as chairman and chief executive officer of ears, how- Scoville, Inc., which then operated 81 manufacturing plants in the by foreign United States and 22 other countries around the world. As Secre- tary of Commerce, he supported programs in the Department of understand Commerce to help American manufacturers. ed quality Mr. Baldrige served as Secretary of Commerce from January 20, 1981, until his untimely death on July 25, 1987. In recognition of his many important contributions to American industry, the re- productivi- t to excel- [page 3] anning for more and spect and affection in which he was held, and the personal role he y and our played in drafting H.R. 812, the Committee believes it is fitting and appropriate to name this legislation and its national quality award program in honor of Malcolm Baldrige. 723 DEC-07-1992 16:05 FROM PAD TO 12024566218 P.005/005 Malcolm Baldrige 26th Secretary of Commerce Malcolm Baldrige was nominated to be Secretary of Commerce by President Ronald Reagan on December 11, 1980, and confirmed by the United States Senate on January 22, 1981. During his tenure, Baldrige played a major role in developing and carrying out Administration trade policy. He took the lead in resolving difficulties in technology transfers with China and India. Baldrige held the first Cabinet-level talks with the Soviet Union in seven years which paved the way for increased access for U.S. firms to the Soviet market. He was highly regarded by the world's most pre-eminent leaders. Leading the Administration's effort to pass the Export Trading Company Act of 1982, Baldrige was named by the President to chair a Cabinet-level Trade Strike Force to search out unfair trading practices and recommend ways to end those practices. He was the leader in the reform of the nation's antitrust laws. Baldrige's award-winning managerial excellence contributed to long-term improvement in economy, efficiency, and effectiveness in government. Within the Commerce Department, Baldrige reduced the budget by more than 30% and administrative personnel by 25%. Malcolm Baldrige Prior to entering the Cabinet, Baldrige was 1922-1987 chairman and chief executive officer of Scovill, Inc., Waterbury, Connecticut. Having joined Scovill in 1962, he is credited with leading its transformation from a financially troubled brass mill to a highly diversified manufacturer of consumer, housing, and industrial goods. Baldrige began his career in the manufacturing industry in 1947 as a foundry hand in an iron company in Connecticut and rose to the presidency of that company by 1960. During World War II, Baldrige served in combat in the Pacific as Captain in the 27th Infantry Division. He was born in Omaha, Nebraska and graduated from Yale University with a bachelor's degree in 1944. Baldrige worked during his boyhood as a ranch hand and earned several awards as a professional team roper on the rodeo circuit. He was a Professional Rodeo Man of the Year in 1980 and was installed in the National Cowboy Hall of Fame in Oklahoma City in 1984. Malcolm Baldrige died July 25, 1987 in a rodeo accident in California. His service as Secretary of Commerce was one of the longest in history. He is said to have been possibly the most colorful Secretary of Commerce and one of the most beloved. He is survived by his wife Margaret and his two children. These annual awards are also special because they gives us the chance to revisit (our memories) the legacy of Malcolm Baldrige. Not just top management bellowing orders from a top floor office, but employees of these companies, who are partners, associates - - all have a stake in their company's success. PAGE 7 1ST STORY of Level 1 printed in FULL format. The Associated Press The materials in the AP file were compiled by The Associated Press. These materials may not be republished without the express written consent of The Associated Press. November 28, 1987, Saturday, AM cycle SECTION: International News LENGTH: 597 words HEADLINE: Soviet Leader Gives First Interview To U.S. Television Network DATELINE: MOSCOW KEYWORD: Soviet-Gorbachev BODY: Soviet leader Mikhail S. Gorbachev was "very amiable and very charming" during the first personal interview of a Soviet leader by a U.S. television network, NBC anchorman Tom Brokaw said Saturday. Gorbachev's one-hour exchange with Brokaw will be aired in full by NBC in the United States on Monday at 8 p.m. EST, network officials have announced. Brokaw told The Associated Press after the interview conducted in the Council of Ministers room at the Kremlin that the 56-year-old Communist Party chief chatted informally with NBC executives before and after the taping. "He was very amiable and very charming and, well, let's just say he didn't get there by accident," Brokaw said. "He was obviously trying to seize the moment. "We definitely got the impression he is really looking forward to his trip to the United States, said NBC's Moscow correspondent, Sandy Gilmour, who took part in the informal exchanges before and after the interview. Brokaw said he managed to get through most of the questions he had prepared on the subjects of arms control, human rights, Gorbachey's personal life, his campaigns for more openness and rebuilding of Soviet society and the economy, and the case of ousted Moscow party boss Boris N. Yeltsin. Brokaw declined to give details of the discussions. Time magazine conducted a private interview with Gorbachev on Aug. 28, 1985, about five months after he became party leader. But Saturday's interview, granted in advance of next month's Washington superpower summit, was the first private exchange any Soviet leader has had with a U.S. broadcast network. "We've never had a Soviet leader sit down one-on-one with an American journalist before, prepared to answer any question on any subject, and to take followup questions and challenges," Brokaw said. TM TM TM LEXIS:NEXIS® LEXIS-NEXIS® LEXIS-NEXIS® Services of Mead Data Central, Inc. PAGE 8 The Associated Press, November 28, 1987 Asked what impressions viewers are likely to take away after seeing the interview, the anchorman said he thought most would be impressed by Gorbachey's confidence and polish. "This is a new Soviet leader who has a very contemporary style and a new view of how he wants the Soviet Union to be perceived by the rest of the world," Brokaw observed. "He is terribly intellectual and articulate." Brokaw said that after the interview, he gave Gorbachev a Navajo indian belt buckle and a picture book entitled "A Day in the Life of America." The Soviet leader was particularly pleased with the buckle, Brokaw said, and recalled that Malcolm Baldrige, the late U.S. commerce secretary, had given him a replica of a western belt buckle he won in a rodeo. Baldrige, who visited Moscow in May 1985, died this past summer in a riding accident. NBC brought in about 30 executives, editors and support staff members to help with the Gorbachev interview, Brokaw said. Gordon Manning, NBC consultant and former vice president, said NBC Enterprises in New York planned to market the taping abroad, but he was unsure when the interview would appear on television in Europe . Manning visited Moscow regularly over the past two years in efforts to arrange the interview. CBS announced the previous week that the Soviets informally told the network its request for an interview with Gorbachev was turned down because of its coverage of the war in Afghanistan and a human rights question anchor Dan Rather posed to to Gorbachev at a 1985 Paris news conference. ABC meanwhile is still having discussions with the Soviets about an interview. NBC was high bidder for the 1980 Moscow Summer Olympics which the United States boycotted because of the Soviet military intervention in Afghanistan. TM TM TM LEXIS:NEXIS® LEXIS-NEXIS® LEXIS·NEXIS® Services of Mead Data Central, Inc. Malcolm-Baldnidge 975-2036 Press NIST (301)975-2769 Jankosko gill Ruspi (301) (301)975-2715 Company Briefs x MB Bio 6 MB Criteria Nov. 14,1988 Reagan Feb 19,1985 Kathy Shanahan 5,9,10 Speaks before Franklin speaks Have quote that Wednesday crystal might be useful Jankosko 975-2762 Baldrige Award: Hard Work for High Honors As Quality Issue Heats Up, So Does Competition for Prize Honoring It showing positively. They viewed it By Cindy Skrzycki as a hopeful sign that companies re- Washington Post Staff Writer 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 in setting up the program stress that National Quality Award. 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: "The Deming has existed for Preparing an exhaustive report-up more than 35 years, ours for to 75 pages for manufacturing and months," said Curt Reimann, associ- service companies-that probes The Baldrige National Quality Award. ate director for quality programs at seven aspects of a company's effort the Commerce Department's Na- to improve quality. American who brought modern man- tional Institute of Standards and "If you did everything in that out- agement skills to Japan after World Technology, which manages the line, you would be a world-class War H. award program. "We are having a company," said Forrest, whose team But quality experts admit that large and growing impact. Many; has been working seven days a week there is much confusion over what many companies are using the [ap+ for the last month on the company's quality really is and how to build it plication] guidelines for self-assess application. into a company. ment and many are entering the Interest in the award and who The number of applicants for the competition for the value of the wins it are indicators of how serious award last year, the first time it was feedback they hope to get." American companies are about im- given out, provides some indication Companies that win the award proving the quality of their goods of just how far American companies agree to share their strategies, thus and services. The effort to improve have to go to improve quality. In spreading the gospel of quality im- U.S. products is considered key to short, few were called and even few- provement. battling foreign competition and er were chosen. "Our telephone never stops ring- changing the perception of many Overall, 66 companies thought consumers who associate higher they were good enough to apply. But ing," said Richard C. Buetow, Moto- rola's director of quality. "We proba- quality with foreign-made goods. only three survived the scrutiny of 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 WP DI 2/18/89 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 in 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 Kent aspects of the business. Sterett, director of quality improve- Armand V. Feigenbaum, a quality ment at Florida Power & Light. "It 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 sights been at. it relentlessly for the last on the Baldrige, which will be given five years. Using an internal pro- out in November, the philosophy is 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 the 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 test pliers it uses. ourselves and understand where WE "It is absolute dog work," said Da- have to improve, we're better for the vid T. Kearns, chairman of Xerox effort. I don't see how anyone can Corp. He added that it has not yet lose." 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. Limpany al. remails- 1 204-2908