“Can American Manufacturing Be Saved?” This recent news headline raised an ominous question about the state of U.S. manufacturing. The answer, thankfully, is a resounding YES, as evidenced by the growing number of manufacturing organizations who are following a proven path to performance excellence. Check out the following results—all achieved by U.S. manufacturing companies in recent years: - Steady revenue growth from about $120 million to approximately $625 million over 12 years
- Overall scores measuring repeat sales and referrals consistently 60 percent or higher
- Best in the industry for its outstanding safety performance: recordable injury frequency rate 47 percent below the industry average; lost time injury frequency rate 45 percent below the industry average
- Overall customer satisfaction at or above 95 percent
- Combined quality/reliability performance level at 99.9 percent for traditional customers
- Error-free delivery rate of 99 percent or above
- Savings of more than $15 million from employee-generated ideas
- Operational reliability effectiveness rate, a ratio between actual production and commercial demand, at 95 percent
These manufacturers—as well as countless organizations in the sectors of small business, service, health care, education and nonprofits—have discovered is the advantage of using the Baldrige Criteria for Performance Excellence (which also are the basis for determining the annual recipients of the Malcolm Baldrige National Quality Award) as a roadmap to establishing and maintaining a program of continuous improvement and performance enhancement. But if the results listed previously aren’t enough to convince you, check out these links between Baldrige and manufacturing:
- A steady involvement of manufacturers in Baldrige-based state and regional award programs, indicating many manufacturers are opting for the feedback and reviews that are part of these processes to strengthen their performance excellence journeys before applying for the national Baldrige Award.
- A large number of persons from various manufacturing sectors who serve as examiners for the Baldrige Award process. A survey of this year’s 478 examiners showed that many stated they had expertise in manufacturing including 148 in computer and electronic product manufacturing, 81 in chemical manufacturing, 73 in fabricated metal product manufacturing, 65 in plastics and rubber products manufacturing, 57 in transportation equipment manufacturing, and 54 in food manufacturing.
- A strong component of manufacturers in Baldrige leadership positions, including the chair of the private Baldrige Foundation, three members of the Baldrige Foundation’s Board of Directors (including the president of the Association for Manufacturing Excellence), two members of the Board of Overseers, and two members of the Panel of Judges.
- Solid participation by manufacturers in the Baldrige Executive Fellows Program, including Fellows from Hewlett Packard, Lockheed Martin, Griffith Laboratories, AGCO, USG International, the Packaging Corporation of America, Sara Lee, and Dow Chemical.
- The fact that the Baldrige Criteria have impacted and influenced accreditation processes such as ISO that are heavily used by manufacturers.
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In fact, the Baldrige impact on manufacturing and other organizations is particularly timely now with the program celebrating its 25th anniversary. On Aug. 20, 1987, President Ronald Reagan signed into law the Malcolm Baldrige National Quality Improvement Act, establishing the Malcolm Baldrige National Quality Award and its supporting program “to spark U.S. competitiveness and create a sustainable economy.” Named after Malcolm Baldrige, the 26th Secretary of Commerce, the Baldrige Award and the Baldrige Program have guided organizations worldwide on their journeys toward continuous improvement and enhanced performance through the seven Baldrige Criteria—leadership; strategic planning; customer focus; measurement, analysis, and knowledge management; workforce focus; operations focus; and results.
How highly regarded are the Criteria? Enough to generate 2.6 million page views in 2011 alone!
The Baldrige Program is managed by the National Institute of Standards and Technology (NIST) in cooperation with the private sector. It also is a partner in the Baldrige Enterprise, which includes the private-sector Baldrige Foundation, the Alliance for Performance Excellence—a body made up of the 33-plus state, local, regional and sector-specific Baldrige-based programs serving nearly all 50 states—and ASQ, an international organization promoting quality. The program raises awareness about the importance of performance excellence in driving the U.S. and global economy; provides organizational assessment tools and criteria; educates leaders in businesses, schools, health care organizations, and government and nonprofit organizations about the practices of national role models; and of course, recognizes them with the Baldrige Award.
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All of these points confirm what we've known for years: using the Baldrige Criteria and the earnest pursuit of the Baldrige evaluation will improve manufacturers—and any other organization—by nearly every measure of success, be it in outcomes, safety, customer and employee satisfaction, or profitability.
For more information or to get started on your Baldrige journey, go to www.nist.gov/baldrige. To borrow a line from Casablanca, it just might be the beginning of a beautiful friendship!
Michael E. Newman, Senior Communications Officer | National Institute of Standards and Technology | (301) 975-302 michael.newman@nist.gov
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