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Importance of Quality

Malcolm Baldrige Quality Award
• Created by Congress in 1987
• Named after Malcolm Baldrige who served as Secretary of Commerce from 1981-1987 • Award is given annually to recognize US companies that excel in quality achievement and management • 3 Categories: manufacturing, service, small business • http://www.quality.nist.gov/Contacts_Profiles.htm

ISO 9000 Standards
• Voluntary standard that is quickly becoming the norm • Series of quality standards defined by the International Organization for Standardization • Certification to an ISO 9000 standard means that the firm has a quality management system in place that ensures consistency of output quality • Takes 9 to 18 months to get certified

• ISO 9000 does not prescribe particular practices but requires that businesses implement three-component cycles. Activities affecting quality must be: ✓ Planned
✓ Controlled
✓ Documented

Note: ISO 14000 series - An environmental management standard which focuses on pollution prevention and ecological impact

Seven Concepts of TQM

1. Continuous Improvement

Philosophy: Continuously improve the quality of your product or service. Involves all operations and work centers including suppliers and customers

2. Six Sigma

← Originally developed by Motorola
← Refers to an extremely high measure of process capability ← A Six Sigma capable process will return no more than 3.4 defects per million operations (DPMO) ← Utilizes a highly structured approach to process improvement ← Requires the commitment of top management

← Utilizes corporate sponsors (Champions)
← Provides extensive training to employees
← Sets stretch goals

3. Employee Empowerment...
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