Malcolm Baldrige and the Evolution of Total Quality Management Essay

caliber and productivity can be considered mutu aloney inclusive. An organization that aims for prize will lastly results to fracture productivity in the concept of services, effectuals being produced, personnel and human resources development, non to mention cap gain, amplification in warringness, and increase in investment opportunities. Though it may be a good concept, a governing body should be present to determine the necessary criteria and set for definitive standards to follow. In the United States, the cardinal governing body in step standard award argon the Ron brown purity and the Malcolm Baldrige field Quality Award.Malcolm Baldrige, a U. S. Secretary of Commerce during the era of the Reagan Administration, is the one responsible for organizing a conference on productivity in the White House. Apparently, he initiated the conception and blueprint in 1987 of the Malcolm Baldrige National Quality Award which focuses on fibre. The award, done the National Quality Improvement Act of 1987 (Public Law 100-107), entrusts dialect on quality services being given by diverse sectors much(prenominal) as education, health care, business, and non-profit organizations (Marion p. 1).These quality services are based on the practices of the Total Quality counseling System (TQM) principles and ensure seven criteria to determine the awardees Leadership, Strategic Planning, Market and practiseer Focus Measurement, Analysis and Knowledge Management, Focus on Workforce, Process Management, and Results. These criteria are considered evidentiary to U. S. competitiveness in toll of improving the capabilities, practices, and results of an organization sharing and facilitating the round excellent practice among the different sectors and to serve as a working machine guide for cookery and managing.Most of these criteria are taken from the principles and techniques in quality care developed by Philip Crosby, W. Demings, Armand Feigenbaum, and Joseph Ju ran. Moreover, the award aims to foster significant level of quality consciousness to be able to distinguish the achievements of U. S. companies in the context of quality and to polish off available to the public the thriving strategies on quality. The process of selecting the winner involves an assessment of the written examen submitted by the applicant, a site visit on the phoner (provided that the family achieved a spunky score), and a final evaluation.Since the Malcolm Award is based on the principle of Total Quality Management, the system have evolved or developed in terms of the factors in performance measurement that includes the following operating or in service measures, employee relationship, ecstasy of customers, and performance on financial aspects. For instance, based on the data of the 12 Companies that submitted their attentivenessive(prenominal) pertinent data for evaluation, on an annual basis product reliability increased by around 11. 3 % the time of proce ssing the order is bring down annually by 12% on the six companies product errors and defects decreased by 10.3% on the seven companies and around five companies have reduced court by 9%. This created a savings of around $1 Million to $115 Million. out from the mendment on the factors on performance measurement, indicators of employee relationship as well as improved. Employee pleasure improved by 1. 4%, employee turnover (voluntary request for separation) decreased by around 6%, health and safeguard measures improved by 1. 8%, and the accumulated total-quality suggestions made by the employees increased by 16. 6%. The total customer satisfaction also increased by 2. 5% with complaints coming from the customer being reduced by 11.6% and retention of customers also improved by 1%. Market share is increased by 13. 7% and the return of assets by 1. 3% (Shetty p. 4-6). Thus, Total Quality Management had eventually improved in terms of quality, customer satisfaction, and reducing in cost. Furthermore, the Total Quality Management System had an affirmative doctor on all of the significant areas of concerns improvement in product reliability, increased in customer satisfaction and responsiveness, and reduction in cost. Apparently related to these are the increase in job satisfaction, improvement of health and safety measures, and reduction in employee turnover.This improvement and reduction on specific areas will eventually yield to increase in the securities industry share, profitability, and quality. The result of much(prenominal) will also produced a certain degree of competitive advantage, which is eventually acquired as a result of committing to quality. A firm competitive position will give the society a unique place in the market wherein the consumers are willing to pay for the product, and the realise quality will become difficult to surmount by the competing companies. Another factor to consider in achieving a competitive advantage is through th e reduction of cost by improving quality.Reducing cost is synonymous to reduction of the in-process work inventory, handling of materials, capitals on equipment and maintenance, thus reducing claims on liability. The reduced be will in-turn lead to a higher profit margin, increase in the sales, and lower prices of the product. Therefore, cost and quality are the most important factors to achieve a competitive advantage and these can be realized through the implementation of Total Quality Management System. The implementation of the Total Quality Management depends on the need and the nature of the business.Companies that adopted a TQM, and subsequently succeeded on all areas described above inactive have to continue on developing the system. It is considered a continuous process and development. Different sectors of the industry such as in the health care, manufacturing, services, and small businesses are becoming more aware of the positive impact of adopting TQM, and the aspirati on of being recognized as one of the Malcolm Baldrige National Quality Awardees set forth the sight to a secure commitment towards excellence in management quality and conjunction performance.The Award started at 1988 and after 20 years, around 79 companies are recognized. The impact of adopting the criteria of Malcolm Baldrige through the implementation of TQM had significantly produced quality and productivity to several(prenominal) companies such as The ADAC Laboratories, rule Research Inc. , Dana Commercial Credit Corp. , and Trident Position Manufacturing Inc. (Malcolm Baldrige recipients of 1996). Of these four, Trident and Custom Research belongs to the small business category, ADAC in the manufacturing sector, and Dana Commercial on services.The ADAC Laboratories, founded in 1970, have its product bankers bill in the design, manufacturing, marketing, and prolong intended for customers belonging in the health care sector such as in radiation therapy, information system in health care, and nuclear medicines. These services and products are sell to universities, hospitals, and clinics worldwide. The impact of adopting the criteria of Malcolm Baldrige has significantly improved the caller-outs market share (12% in 1990 to 50% in 1996), and customer satisfaction (no. 1 ranking).Before, the company was only focused on short-term financial goals, and not totally oriented towards attaining a quality firm for investors and customers satisfaction, and employee development. Determined to over-turn the current situation, the company adopted the criteria of Malcolm Baldrige. In 1994, ADAC applied for the Malcolm Baldrige getting up to the 2nd level (site visit). The site visit hence gave the company a feedback assessment with around 148 areas of concerns that needs improvement. The company then utilized the feedback report as an external resource to eliminate the gaps.The management team attended the Center for Quality of Management, a syndicate of experts in the field of Total Quality Management. The intensive two-day training made all employees understands the four applicable thoughts shared learning, total link, focus on customer, and continuous development. Consequently, the turn-around of the company to focus on customer satisfaction had lead to a strong rate of retention with 94% as compared to the previous 50% market share increased by 50% as compared to 12% six years ago and the revenue enhancement per worker increased by around 75% (Marion p.1). The results by adopting the criteria verified the kind of quality management the company had developed with emphasis on quality and excellence. Dana Commercial Credit Corporation, a subsidiary of Dana Corp. , provides financial backing and leasing services to a wide orbit of businesses and specific markets. Located at different offices such as in Canada, United Kingdom, and Ohio the company have activities that includes management of assets services, combined-venture leasing con sortium, and leasing of equipment for manufacturers and dealers.The company decided to apply for the Malcolm Baldrige Award for two compelling reasons after receiving the Dana Quality Leadership award, the company intended to benchmark it alongside the Malcolm Baldrige and the challenge of pursue the Baldrige award will provide a significant push towards a fast improvement in quality for the company. Making through the process of the Baldrige criteria eventually created a strong culture with emphasis on service quality and customer satisfaction.In return, the morale of the employees is high as well as the profit. Custom Research Inc. is one of the small firms that received the Baldrige Award that clearly shows that no matter what the size of the company, advance quality management can also be achieved just like those of multinational companies. Established in 1974 by Jeff Pope and Corson, CRI caters big companies in designing and conducting projects that can provide relevant infor mation to make effective decisions in business.The main office is located at Minneapolis with several offices in Ridgewood and San Francisco, and New Jersey. In 1998, the company had reduced its client from 138 to 67, primarily to provide better service as well as establish partnership with their biggest clients. From 1992 to 1994, the company had applied for an assessment to Baldrige and reached the site visit level three times. subsequently receiving the Minnesota Award for Quality in 1995, CRI decided to re-apply again for the Baldrige since the award was patterned to it.Winning the secern award had helped the company achieving its goal to be awarded by Baldrige in 1996. Since the employees are less, all took part during the performance and assessment process wherein each employee knows the whole process, the criteria, and how it is should be use in their respective field of work. Thus, the Baldrige Award had greatly influenced all employees towards achieving quality and prod uctivity creating a positive atmosphere to the company.In return, the employees are all motivated that results to better business opportunities and results. Trident Precision Manufacturing Inc. is a private company that manufactures various components of sheet metallic element (precision), customized products, and assemblies (electromechanical). With its lone manufacturing plant in New York, the Company developed processes and tooling to manufacture and assemble components intended for the different sectors of the industry such as in equipment used in office, banks, health care, and even defense.Trident began to exploit the criteria of Baldrige in their quest for quality in 1989. The criteria had served as an open window to know the areas of weaknesses and strength of the company. April Lusk, Tridents decision maker for quality, emphasized that the biggest significant asset of the Baldrige Quality Award process was the feedback report, which stands for an unbiased assessment of a c ompanys strength and weaknesses.Trident then utilized those feedback reports to narrow the gaps and eventually achieved better results due to a strong focus in customer satisfaction, the company has been able to maintain its position as the main supplier to chief customers even though it reduced their supplier percentage to 65% the focus on employee involvement also played a study role achieving a 100% employee participation on departmental occupation team, around 95% of the improvement on processes have been established, the recognitions and rewards for the employees increased, employee turnover decreased, and the company have invested 4.6% of the payroll towards education and training (Marion p. 1). The continuous improvement of the employee, their commitment to the inhering and external clientele, and the eventual halt of their processes have made Trident to stand out and establish a dedication towards excellence and quality. More so, Tridents strong affirmation towards an en vironment that is family oriented, continuous effort for improvement, and teamwork are the main factors the Baldrige Award considered.Responsibilities are shared, suggestions considered and implemented so as to create an environment where the employees are satisfied and their morale is high, resulting to a stronger and a fitter business. The background discussed on the four companies clearly illustrated the impact of implementing the principles of Total Quality Management System through the Malcolm Baldrige Quality Awards. These companies aspired to achieve the Baldrige Award and the results improved the companys overall quality and productivity program, as well as their business status and competitiveness.By analyzing the stories behind each success of a company towards achieving the Malcolm Baldrige Quality Awards, several key pointers should be emphasize such as the following Leadership also plays an important role towards attaining quality. Top management should exert effort in terms of leadership and support since the adherence to quality usually accompanies changes in the companys operating systems or philosophy.Clear goals should be determined as well as a positive atmosphere or culture to countenance the employees to attain such goals. The presence of a highly motivated staff or employees also has significant contributions towards attaining quality. Quality depends on the employees efficiency, and subsequently to the employees work motivation. It also encompasses all the aspect of human resources such as employee training and recruitment program, job descriptions, and rewarding as well as empowering employees.Employee involvement are considered an important aspect, and also the encouragement of a corporate vision towards quality-related improvement activities and programs may require several major adjustments or changes the way the employees are being managed (Shetty p. 6) Another factor that is significant is the aim for a total customer satisfaction . Realizing this vision will create an effort towards improving quality. Exceptional external and internal systems are necessary to supervise customer satisfaction through the use of surveys, evaluation of services and products, and probe of complaints (Reiman p.11)Analysis of information is also critical since this will serve as a basis on making corporate decisions and adjustments. Efficient and complete data gathering serves as a powerful tool for the company since these will reflect the strengths, weaknesses, goals, quality, and service standards, to name a few. Suppliers also have a significant role in the pursuit of quality. Usually, successful companies develop long-lasting relationships with suppliers having a vision for quality.The company comparatively engages the suppliers to become an integral part of the firms TQM. Consultations, trainings, and continuing contracts are some of the ways the company engages the suppliers on its TQM program. Thus, the suppliers become a p artner in administering quality efforts, which in turn have major effects on how the suppliers are conventionally managed. The commitment to quality is a boundless process therefore, a continuous program for improvement and development should be implemented.The results on the companies that implemented the Total Quality Management System in pursuit of achieving the Malcolm Baldrige National Quality Awards proved to be a success. The end-results created better customers satisfaction, high morale of employees, reduced cost, decreased on employee turn-over, good competitive advantage, improved health and safety measures, better production processes, increased in market share and profits, quality and productivity.The Malcolm Baldrige Award provides a vast range of quality concerns. The feedbacks made by the Award committee can be use by the company to narrow the relevant gaps, which are based on the findings. The award served as an effective guide with respect on streamlining the busine ss and management practices. The criteria set forth by Baldrige, based on the principles of Total Quality Management, provided the significant standards of excellence to achieve quality and productivity.The award served as an effective catalyst to strengthen and improve the companys competitiveness.Works Cited Shetty, Y. K. The Quest for Quality Excellence Lessons from the Malcolm Baldrige Quality Award. Sam modern Management Journal. 22 March 1993 1-14 Harmon, Marion. www. qualitydigest. com. Jan. 1997. Retrieved April 23, 2009. http//www. qualitydigest. com/jan97/baldrige. html Reiman, Curt W. Winning Strategies for the Malcolm Baldrige Award, Journal of Quality Management, July 1990, pp. 9-25.