What Do You Know About National Quality Awards?

Following the guidelines of various National Quality Awards

is another way organizations can improve quality. In Japan, the Deming Prize is a highly regarded industrial quality award named in honor of quality pioneer W. Edwards Deming. In the United States, the Malcolm Baldrige National Quality Award honors the quality achievements of U.S. companies. Another

coveted quality award is the Shingo Prize for Excellence in Manufacturing, named for Dr. Shigeo Shingo, who helped Toyota develop its renowned production system and JIT controls. The Shingo Prize is open to North American companies and to researchers and students who further the knowledge of quality manufacturing techniques.

Applying for one of these quality awards can spur an organization to achieve higher quality levels; even when an organization doesn't win, its managers can learn how to improve by measuring their performance against the rigorous award requirements. Electronics supplier Solectron, based in San Jose, California, applied three times for the Baldrige, using the application process to gauge its quality achievements and to chart a path for improved quality. Feedback from Baldrige examiners helped Solectron executives pinpoint specific areas for improvement and, on its third try; Solectron won a Baldrige for quality improvement in manufacturing.

Despite the many benefits, competing for a national quality award can be expensive, time-consuming, and stressful. Xerox estimates it spent roughly $800,000 applying for the Baldrige; Marlow Industries, a $13 million company, spent far less ($140,000) but invested much time installing quality procedures and preparing to apply.