From Manufacturing to Economic Vitality

The old adage goes, "They just don't make things the way they used to." In Connecticut, in 2001, perhaps the saying ought to be, "We don't make things the way they used to - we strive to make them better."

Quality initiatives for Connecticut companies have earned bipartisan support and recognition from Gov. John Rowland to Democratic House Speaker Moira Lyons to the many chambers of commerce in the state. In fact, the oldest and first statewide quality award, the Connecticut Quality Improvement Award, was spawned here.

Fostering the importance of quality in manufacturing has two benefits: first, the end products become high-caliber and, as a result, the number of high-end jobs grows. Rowland acknowledges that, "Manufacturing creates high quality jobs," and recently said, "We must foster a healthy climate for manufacturing to grow in Connecticut." Manufacturing quality goes hand-in-hand with growth of desirable jobs. The end product is economic vitality.

But what is this intangible concept known as "quality"? One state organization that serves as a defining mechanism is the Connecticut Quality Improvement Award Partnership (CQIA) which was founded in 1987, the year the Malcolm Baldrige National Quality Award was created by Public Law 100-107. One of the key points listed in the "Findings & Purposes" section of the bill asserts that: "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."

CQIA founder and President Sheila Carmine explains that her organization is made up of "a growing group of active business people, educators, health-care executives and government officials concerned with improving the economic vitality of our state using the Malcolm Baldrige National Quality Award Criteria for Performance Excellence." CQIA is charged with "recognizing Connecticut manufacturing and service companies that excel in managing quality improvement for business success and growth."

In 1995, the organization branched out beyond manufacturing and service companies to encompass eligible health care, education, government and other not-for-profit entities.

CQIA sponsors three awards annually: the Connecticut Innovation Prize, the Connecticut Breakthrough Quality Award and the Connecticut Leadership Quality Award. Criteria for the entry-level award, the Connecticut Innovation Prize, and the mid-level Connecticut Breakthrough Quality Award are both on CQIA's Web site, www.ctqualityaward.org.

Explains Carmine: "Our highest level award, the Connecticut Leadership Quality Award uses the entire, current Malcolm Baldrige National Quality Award for Performance Excellence criteria. The official 2001 Baldrige criteria will be available the beginning of the year." A brief rundown of the three awards:

• The Connecticut Innovation Prize recognizes accomplishments during the first stages of the quality journey for Connecticut organizations. It is meant to stimulate interest in organizations to implement quality while fostering recognition of innovative improvements. There is no limit to the number of applications from any organization and no limit to the number of Connecticut Innovation Prizes conferred each year.

• Connecticut Breakthrough Quality Award - For Connecticut organizations ready to launch their first rigorous quality-improvement, measurement and business-impact initiative, CQIA Partnership offers an authentic "bare-bones" version of the Malcolm Baldrige National Quality Award criteria and process. Eligible organizations include (but are not limited to) service businesses, manufacturing businesses, hospitals and health-care facilities, academic institutions, non-profits and government agencies. Applications must demonstrate an extended commitment to measurable progress on the path to long-term competitiveness. There is no limit to the number of winning applications.

• Connecticut Leadership Quality Award - For all Connecticut organizations prepared to move from the breakthrough to leadership level in quality performance and market competitiveness, CQIA Partnership offers the complete Baldrige process, as experienced by national Baldrige Awards winners. This award recognizes demonstrated quality improvement as a strategy for performance excellence. The Connecticut Leadership Quality Award is America's first and oldest state-level quality award. There is no limit to the number of winning organizations.

The importance of quality and the benefits to end-users are bywords for successful local manufacturers. By making "quality" part of a company's mission, management creates and assures high standards.

According to Rollin Metter, chairman of Circuit-Wise Inc., a North Haven manufacturer of printed circuit boards for the electronics industry, his company strives "to continually improve the products we make and the services we provide to meet our customer's needs, allowing us to prosper as a business, provide income and security to our employees and provide a return to the owners. Our mission is accomplished by following our guiding principles: Quality comes first. Customers are the focus of everything we do. Continuous improvement is essential to our success."

At Emhart Fastening Technologies, a Shelton manufacturer of industrial fastening systems, the identifier is "Total Quality Process (TQP)" which is "customer-driven and runs throughout every facet of our operations," says a company spokesperson. "The basic payoff: Emhart is dedicated to exceeding customer expectations... from conceptual innovation, design, engineering and value engineering, to product and systems manufacturing, on-time delivery, installation and support, and documentation and invoicing."

Manufacturing quality paid off for Bridgeport Machines, which earned the "American Machinist 2000 Excellence in Manufacturing Technology Achievement Award" recognizing "extraordinary vendors of manufacturing equipment and production supplies…based on a series of surveys indicat[ing] outstanding vendors for design and productivity, flexible solutions, innovations, performance and repeatability, technology and reliability, service and technical support, and user-friendliness."

A major link between the manufacturing sector and state government is formed by the Manufacturing Alliance of Connecticut (Inc.). The focus of MAC "is on the needs of small to mid-sized companies, but not to the exclusion of larger manufacturers." MAC is considered the "articulate voice for manufacturers, and [has] earned the respect of state agencies and elected officials."

The mission of the organization is to provide "resources predicated on mutual trust and an established relationship with state government." MAC's major connection with the quality issue is the "MAC Index," compiled in conjunction with the Connecticut Economic Resource Center (CERC). According to MAC Director Frank Johnson, "The study finds that Connecticut manufacturers are producing one-third more output with one-third fewer people than 20 years ago. This is because of things like reducing scrap and making sure that every piece going into a product is good." Further, he says, if a company has "high quality going through we will have high-quality end products.

"Companies are very tuned into this because high productivity is crucial and because standards worldwide have increased," says Johnson. Thus the need for a new MAC Manufacturing Competitiveness Index, which measures and assesses Connecticut manufacturers relative to those in other states. The MAC Index found that Connecticut's productivity is nearly 15 percent higher than the national average and, in workforce productivity, ranks tops in the nation.

One means for raising quality is through statistical process control. This concept has long been recognized and noted in the Baldrige program. "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."

Another benchmark for measuring standards and thereby assuring quality is administered by the International Organization for Standardization (ISO) which is in effect, the international "Good Housekeeping Seal of Approval." A careful reader might point out that ISO as an acronym is scrambled; the acronym ought to be IOS. However, ISO is not an acronym at all, but comes from the Greek word "Isosceles" meaning "equal." By using the same three letters worldwide, ISO (the organization) need not translate "International Organization for Standardization" into 130 languages. Hence, even its name is standardized.

Headquartered in Geneva, Switzerland, ISO was established to develop common standards for exchanging technology, science and other information. Today, virtually all of us benefit from the organization's work. For example, each time you load your camera with film, swipe your credit card, or run paper through your printer or photocopier, you benefit from an ISO standard. Because of ISO, your MasterCard works exactly the same in Hamburg, Connecticut as it does in Hamburg, Germany.

During ISO's inception, standards were significant only to engineers. Today, the importance of standardization has broadened greatly, particularly in the telecommunications and computer industries, because of our shrinking global village.

ISO utilizes a series of numbers in its coding system. ISO 9000 actually encompasses several individual standards for quality management (ISO 9001, ISO 9002, ISO 9003 and so on), while ISO 14000 refer to those for environmental management. So, if your prospective customer inquires whether you are ISO 9000-certified, he seeks to find out if your processes or products conform to ISO 9000 quality standards.

Suppliers may be required to gain certification in many industries in order to save money and time. The benefit of the standardization is enhanced safety and quality regardless of the country in which the products or parts are manufactured. A plethora of information regarding ISO can be found on the Web site http://www.iso.org/iso/en/ISOOnline.frontpage .

ISO 9000 is only one standard. As MAC's Johnson points out, "There are other standards, such as QS 9000 for the automotive industry and another for the airline industry." ISO 9000, however, is the most common worldwide and serves to "document every step of the process and product so that we have standardization throughout time," he says. "That is, the product you buy today is exactly the same as the same product bought five years ago."

Regardless of a business' size, ISO principles and practices can be beneficial. Even small firms are recognized as significant to the supply and manufacturing chain. Hence, a special Web page points to resources geared toward the small company. Further, software products are available to explain the standardization, certification and audit processes at http://dir.yahoo.com/Business_and_Economy/Business_to_Business/Quality/Software/

If the task still seems overwhelming, you can always hire a consultant. A well-known provider of consulting services is Underwriters Labs (www.ul.com/services/quality.htm). Finally, regardless of your company's size, ISO 9000 can aid in expanding as a worldwide supplier as well as in focusing on customer service, a crucial component in the competitive business climate.

Whether or not a company intends to apply for an award, simply the processes of self-assessment and reviewing criteria for awards is beneficial. According to Harry Herz, director of the Baldrige National Quality Program: "Self-assessment allows you to identify strengths and to target opportunities for improvement on processes and results affecting all key stakeholders - including customers, employees, owners, suppliers and the public. The criteria also can help you align resources; improve communication, productivity, and effectiveness; and achieve company goals."

The importance of strategic planning for both quality-improvement programs and quality itself is clear regardless of company size or location in the world. Improving quality improves productivity while lowering costs and boosting profitability. Quality and standardization are gaining importance as the globe becomes more and more interconnected.

Connecticut manufacturers are supported and rewarded for their efforts in achieving quality end-products. If Connecticut manufacturers can build on their reputation for producing desirable products, they will create more high-end jobs and improve the state's overall economic vitality.