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1、MalcolmBaldrigeNationalQualityAward1988WinnerGlobeMetallurgicalInc.Inatailspinlikemostotherfirmsinthenationssmokestackindustries,GlobeMetallurgicalInc.refusedtoretreatfromtherisingtideofimportedcheap,commodity-grademetals.WhilemanyU.S.makersofferroalloys(iron-basedmetals)wereclosingplants,theOhio-ba
2、sedcompanystateditsrefusalinthemostconvincingofterms.Itinitiatedaquality-improvementprogramthathasmadeitsproductsthestandardsofexcellenceinthemetalsindustry.Globesetoutin1985tobecomethelowest-cost,highest-qualityproducerofferroalloysandsiliconmetalintheUnitedStates.Atthesametime,thefirmshifteditsfoc
3、usfromcommoditymarkets,suchassteelmanufacturing,tothehighervalue-addedmarketsrepresentedbythefoundryandchemicalindustriesandcertainsegmentsofthealuminumindustry.Threeyearslater,Globeoccupiesaqualitynicheabovethecompetition.Notcoincidentally,itsshareoftheU.S.marketforhigh-qualityfoundryalloyshasrisen
4、dramatically,salesinCanadaandEuropehaveincreasedsignificantly,andprofitabilityhasreturned.InqualityauditsbyGeneralMotors,Ford,Intermet,JohnDeere,andothercustomers,thefirmsscoreshavesetrecords,resultingincertifiedsupplierstatusforGlobe.ForeignbuyersalsorecognizeGlobescommitmenttoquality.WhenmanyEurop
5、eantradersplaceanorderformagnesiumforrosiliconalloytheyspecifythatthematerialmustbeGlobequality,astandardthatothersuppliersmustmatch.COMPANYHISTORYAprivatelyheldcompanysince1987,whenMooreMcCormickResourcessoldallofitsmetal-relatedbusinesses,Globeemploys210peopleatplantsinBeverly,Ohio,andSelma,Alabam
6、a.Theplantsproduceabout100,000tonsofalloysannuallyformorethan300customers.Annualsalestotalledlessthan$100millionin1987,butareprojectedtoincreasebyapproximately30percentin1988.ThefirmsdriveforqualitybegantwoyearsbeforetheleveragedbuyoutofGlobescurrentmanagement.In1985,Globesmanagerialstaffwastrainedi
7、nstatisticalprocesscontroland,bytheyearsend,thefoundationofacompany-widequality-improvementsystem-termedQuality,Efficiency,andCost(QEC)-waslaid.ELEMENTSOFQECGlobesQECprogrampermeatestheentirecompany,andgoalsforqualityimprovementareintegratedintostrategicplanningandresearchanddevelopmentactivities.Qu
8、alitycommitteesexistateverylevelwithinthecompany,andrapidcommunicationscalesthedistancebetweentopofficials,whomakeupGlobesQECsteeringcommittee,andworkers,whoparticipateinqualitycirclesthatmeetweekly.InbetweenineachplantistheQECcommittee,composedoftheplantmanageranddepartmentheads,thatassembleseachmo
9、rningtoreviewthepreviousdaysperformance.TheQECcommitteeassessesthecausesofoutofcontrolconditions,reviewscorrectivemeasures,evaluatessuggestionsmadebyqualitycircles,andaddressesbroaderqualityissuesthatmightberaisedbythesteeringcommittee.NowthreeyearsintoitsQECprogram,Globehasfoundnosurfeitofgoodideas
10、forimprovingproductqualityandreducingcost,manyofthemoriginatingwithworkers.Improvementmeasuresarecarefullytracked,andtheresults-successesandfailures-arepublishedmonthly.Infact,Globeattemptstomonitorandquantifyeveryfactorthatinfluencesproductquality,makingextensiveuseofcomputer-controlledsystemsthatc
11、ontinuallyadviseworkersonwhethertargetvaluesforimportantprocessingvariablesarebeingmet.Keyvariablesareidentifiedthroughanumberofmeans,includingfailuremodeeffectsanalyses,statisticalevaluationsthatidentifyproductionstepsthataremostpronetofailure.Colorcontrolchartsderivedfromasystemdevelopedin-housedo
12、cumenteachproductsprocessinghistory.Thechartsprovideworkers,whoaretrainedinstatisticalprocesscontrol,withaperformanceappraisalandcustomerswithimportantinformationfortheirmanufacturingprocesses.Significantimprovementsinachievingthetargetedgradeofmetalhavebeenrealizedsincetheimplementationofthecompute
13、r-controlledsystems,withcorrespondingreductionsintheamountofscraporreclassifiedproductproduced.Today,onlyabout3percentoftheheats-includinginitialbatchesofnewproducts-requirereclassification.Similarly,greaterconsistencyinfinalproducts,achievingspecificationsthatfallwithinrangesmoredemandingthanthosei
14、mposedbycustomers,hassignificantlyloweredthechanceofanout-of-specificationshipment.Theimprovedconsistencyoftheoperationhasincreasedtheproductionratesonthefurnaces,whilesignificantlyreducingenergyconsumption,amajorcostitemforGlobe.AtthesametimeGlobehasrealizedimprovementsinmanpowerefficiencyofover50%
15、incertainareas.Customercomplaintshavedecreasedby91percent,from44in1985,when49,000poundsofproductwerereturnedforreplacement,to4in1987,whennoproductwasreturned.Amongworkers,whohaveflexiblejobassignmentsandwhosequality-improvementeffortsarerecognizedthroughpersonallettersfrommanagementandsmallgifts,GlobesQECprogramispayingdividends.Theaccidentrate,neartheaveragefortheferroalloyindustryin1985,hasfallen,whiletheindustryaveragehasrisen.TheGlobeabsenteeismratehasalsodecreasedsince1985.BNQPWebsitecomments:baldrigenist.govDatecreated:8/27/2001Lastupdated:11/19/2002
