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| |manufactured products. |

| | |

|5|the concept of quality improvement is directly applicable to small |

|.|companies as well as large, to service industries as well as |

| |manufacturing, and to the public sector as well as private |

| |enterprise. |

| | |

|6|in order to be successful, quality improvement programs must be |

|.|management-led and customer-oriented, and this may require |

| |fundamental changes in the way companies and agencies do business. |

| | |

|7|several major industrial nations have successfully coupled rigorous |

|.|private-sector quality audits with national awards giving special |

| |recognition to those enterprises the audits identify as the very |

| |best; and |

| | |

|8|a national quality award program of this kind in the United States |

|.|would help improve quality and productivity by: |

| |a|helping to stimulate American companies to improve quality and |

| |.|productivity for the pride of recognition while obtaining a |

| | |competitive edge through increased profits; |

| |b|recognizing the achievements of those companies that improve the |

| |.|quality of their goods and services and providing an example to |

| | |others; |

| |c|establishing guidelines and criteria that can be used by business,|

| |.|industrial, governmental, and other organizations in evaluating |

| | |their own quality improvement efforts; and |

| |d|providing specific guidance for other American organizations that |

| |.|wish to learn how to manage for high quality by making available |

| | |detailed information on how winning organizations were able to |

| | |change their cultures and achieve eminence." |

| |Malcolm Baldrige National Quality Award |

| |In 1987, jumpstarting a small, slowly growing U.S. |

| |quality movement, Congress established the Malcolm |

| |Baldrige National Quality Award to promote quality |

| |awareness, to recognize quality and business |

| |achievements of U.S. organizations, and to publicize |

| |these organizations’ successful performance |

| |strategies. Now considered America’s highest honor |

| |for performance excellence, the Baldrige Award is |

| |presented annually to U.S. organizations by the |

| |President of the United States. Awards are given in |

| |manufacturing, service, small business, and, starting|

| |in 1999, education and health care. In conjunction |

| |with the private sector, the National Institute of |

| |Standards and Technology designed and manages the |

| |award and the Baldrige National Quality Program. |

| |Application process |

| |To apply for the award, organizations must submit |

| |details showing their achievements and improvements |

| |in seven key areas: leadership, strategic planning, |

| |customer and market focus, information and analysis, |

| |human resource focus, process management, and |

| |results. Applicants receive 300 to 1,000 hours of |

| |review and a detailed report on the organization’s |

| |strengths and opportunities for improvement by an |

| |independent board of examiners. “The application and |

| |review process for the award is the best, most |

| |cost-effective, and comprehensive business health |

| |audit you can get,” said Arnold Weimerskirch, former |

| |Baldrige Award judge and vice president of quality, |

| |Honeywell, Inc. |

| |Program impact |

| |Since the first awards were presented in 1988, the |

| |Baldrige National Quality Program has grown in |

| |stature and impact. Today, the Baldrige program, the |

| |award’s criteria for performance excellence, and the |

| |Baldrige award recipients are imitated and admired |

| |worldwide. |

| |In particular, the Baldrige criteria for performance |

| |excellence have played a valuable role in helping US |

| |organizations improve. The criteria are designed to |

| |help organizations improve their performance by |

| |focusing on two goals: delivering ever improving |

| |value to customers and improving the organization’s |

| |overall performance. Approximately 2 million copies |

| |of the criteria have been distributed since 1988, and|

| |wide-scale reproduction by organizations and |

| |electronic access add to that number significantly. |

| |Gordon Black, chairman and chief executive officer of|

| |Harris/Black International Ltd., said the publication|

| |containing the Baldrige criteria for performance |

| |excellence is “probably the single most influential |

| |document in the modern history of American business.”|

| | |

| |Following are some of the program’s highlights: |

| |For the eighth year in a row, a hypothetical stock |

| |index, made up of publicly traded US companies that |

| |have received the Baldrige Award, has outperformed |

| |the Standard & Poor’s 500. This year, the “Baldrige |

| |Index” outperformed the S&P 500 by 4.4 to 1. |

| |State and local quality programs, most modeled after |

| |the Baldrige program, have grown from fewer than 10 |

| |in 1991 to 54 programs in 44 states. |

| |Internationally, nearly 60 quality programs are |

| |operating. Most are modeled after the Baldrige |

| |program, including one established in Japan in 1996. |

| | |

| |Since 1988, 871 applications have been submitted for |

| |the Baldrige Award from a wide variety of types and |

| |sizes of organizations. |

| |Malcolm Baldrige National Quality Award Winners |

| |2003 |

| |Medrad, Inc., Indianola, Pa. (manufacturing) |

| |Boeing Aerospace Support, St. Louis, Mo. (service) |

| |Caterpillar Financial Services Corp., Nashville, |

| |Tenn. (service) |

| |Stoner Inc., Quarryville, Pa. (small business) |

| |Community Consolidated School District 15, Palatine, |

| |Ill. (education) |

| |Baptist Hospital, Inc., Pensacola, Fla. (health care)|

| | |

| |Saint Luke’s Hospital of Kansas City, Kansas City, |

| |Mo. (health care) |

| |2002 |

| |Motorola Inc. Commercial, Government and Industrial |

| |Solutions Sector |

| |Schaumburg, Ill. (manufacturing) |

| |Branch-Smith Printing Division |

| |Fort Worth, Texas (small business) |

| |SSM Health Care |

| |St. Louis, Mo. (health care) |

| |2001 |

| |Clarke American Checks, Incorporated |

| |San Antonio, Texas (manufacturing) |

| |Pal’s Sudden Service |

| |Kingsport, Tenn. (small business) |

| |Chugach School District |

| |Anchorage, Alaska (education) |

| |Pearl River School District |

| |Pearl River, N.Y. (education) |

| |University of Wisconsin-Stout |

| |Menomonie, Wis. (education) |

| |2000 |

| |Dana Corp.-Spicer Driveshaft Division |

| |Toledo, Ohio (manufacturing) |

| |KARLEE Company, Inc. |

| |Garland, Texas (manufacturing) |

| |Operations Management International, Inc. |

| |Greenwood Village, Colo. (service) |

| |Los Alamos National Bank |

| |Los Alamos, N.M. (small business) |

| |1999 |

| |STMicroelectronics, Inc.-Region Americas |

| |Carrollton, Texas (manufacturing) |

| |BI Performance Services |

| |Minneapolis, Minn. (service) |

| |The Ritz-Carlton Hotel Company, L.L.C. |

| |Atlanta, Ga. (service) |

| |Sunny Fresh Foods |

| |Monticello, Minn. (small business) |

| |1998 |

| |Boeing Airlift and Tanker Programs |

| |Long Beach, Calif. (manufacturing) |

| |Solar Turbines Inc. |

| |San Diego, Calif. (manufacturing) |

| |Texas Nameplate Company Inc. |

| |Dallas, Texas (small business) |

| |1997 |

| |3M Dental Products Division |

| |St. Paul, Minn. (manufacturing) |

| |Solectron Corp. |

| |Milpitas, Calif. (manufacturing) |

| |Merrill Lynch Credit Corp. |

| |Jacksonville, Fla. (service) |

| |Xerox Business Services |

| |Rochester, NY (service) |

| |1996 |

| |ADAC Laboratories |

| |Milpitas, Calif. (manufacturing) |

| |Dana Commercial Credit Corp. |

| |Toledo, Ohio (service) |

| |Custom Research Inc. |

| |Minneapolis, Minn. (small business) |

| |Trident Precision Manufacturing Inc. |

| |Webster, NY (small business) |

| |1995 |

| |Armstrong World Industries’ Building Products |

| |Operation |

| |Lancaster, Pa.(manufacturing) |

| |Corning Telecommunications Products Division |

| |Corning, NY (manufacturing) |

| |1994 |

| |AT&T Consumer Communications Services |

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