On its website the history and purposes of the Malcolm Baldrige National Quality Award
Program's development are described as follows:
Public Law 100-107, signed into law on August 20, 1987, created the Malcolm Baldrige
National Quality Award. The Award Program, responsive to the purposes of Public Law
100-107, led to the creation of a new public-private partnership. Principal support for
the program comes from the Foundation for the Malcolm Baldrige National Quality Award,
established in 1988. The Award is named for Malcolm
Baldrige, who served as Secretary of Commerce from 1981 until his tragic death in a rodeo
accident in 1987. His managerial excellence contributed to long-term improvement in
efficiency and effectiveness of government. The Findings and Purposes Section of Public
Law 100-107 states that:
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The leadership of the United States in product and
process quality has been challenged strongly (and sometimes successfully) by foreign
competition, and our Nation's productivity growth has improved less than our competitors'
over the last two decades.
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American business and industry are beginning to
understand that poor quality costs companies as much as 20 percent of sales revenues
nationally and that improved quality of goods and services goes hand in hand with improved
productivity, lower costs, and increased profitability.
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Strategic planning for quality and quality improvement
programs, through a commitment to excellence in manufacturing and services, are becoming
more and more essential to the well being of our Nation's economy and our ability to
compete effectively in the global marketplace.
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Improved management understanding of the factory floor,
worker involvement in quality, and greater emphasis on statistical process control can
lead to dramatic improvements in the cost and quality of manufactured products.
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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.
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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.
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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
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A national quality award program of this kind in the
United States would help improve quality and productivity by:
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helping to stimulate American companies to improve
quality and productivity for the pride of recognition while obtaining a competitive edge
through increased profits;
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recognizing the achievements of those companies that
improve the quality of their goods and services and providing an example to others;
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establishing guidelines and criteria that can be used by
business, industrial, governmental, and other organizations in evaluating their own
quality improvement efforts; and
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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."
In 1998 educational and health care organizations became
eligible to apply for the Malcolm Baldrige National Quality Award, utilizing revised
Criteria that are appropriate for these industries. The first health care organization was
awarded the Baldrige Award in 2003.
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