Manufacturers` Quality Practices Vary in Slumping Economy

Latest ASQ Quality Report shows not all are hitting panic button
MILWAUKEE--(Business Wire)--
It`s easy to assume that when the economy is in a recession, businesses will
make major cutbacks in order to survive. However, according to ASQ`s (American
Society for Quality) latest Quarterly Quality Report, many manufacturing
companies are not in the crisis mode one would expect.

Two Different Pictures

ASQ talked with its members to gain insight on the issue from practicing quality
professionals. The feedback received clearly showed some of the expected pain
companies are going through - such as reductions in work force, reductions in
training, and budgetary cutbacks for quality initiatives.

However, not all share that view. The results displayed two very different types
of organizations reacting in fundamentally different ways to eroding economic
conditions. On the one hand are those going into crisis mode, cutting back and
de-emphasizing quality initiatives. On the other hand are those that continue to
invest in quality and innovation as a competitive advantage in the face of
economic uncertainty.

It`s a business dilemma that affects many other functions besides quality: To
cut back or to forge ahead when the going gets tough? Organizations that refuse
to panic, that move ahead with new initiatives, and that don`t cut too deeply
will be better positioned to excel when the economy rebounds.

"The really good news, if there is a silver lining in these times, is that while
some companies are shrinking back into their shell, other organizations are
moving decidedly in a forward-looking direction, and keeping quality practices
at the top of the list," said Ken Case, ASQ past president and emeritus
professor at Oklahoma State University.

Some Organizations Still Cutting

Those members who felt their organization`s viability is different today than a
year ago and attributed it to the deteriorating economy were the ones who were
much more likely to report reductions in work force, less training, and overall
culture changes when it comes to business improvement where they work. Many were
even backing away from quality initiatives that organizations typically use to
cut costs.

Balancing Efficiency and Innovation

In between the two obvious extremes is the middle ground of organizations that
are attempting to balance efficiency with innovation and growth. Members said
that waste reduction and increased efficiency are receiving a considerable
amount of increased attention. Also garnering more attention are efforts to
generate inspiration and new ideas. Members state that they are listening to the
voice of the customer more and are more engaged in programs to bolster
innovation and creativity. Innovation, creativity and quality initiatives are
key for organizations looking for continued growth.

Overall, many members felt their companies and the management at their companies
were looking forward and using quality for long-term strategies. The results
presented are an indication of what many manufacturers may also be experiencing.

The full Quality Report can be read at
http://www.asq.org/quality-report/reports/200901.html.

The American Society for Quality, www.asq.org, has been the world's leading
authority on quality for more than 60 years. With more than 90,000 individual
and organizational members, the professional association advances learning,
quality improvement and knowledge exchange to improve business results and to
create better workplaces and communities worldwide. As a champion of the quality
movement, ASQ offers technologies, concepts, tools and training to quality
professionals, quality practitioners and everyday consumers, encouraging all to
Make Good Great®. ASQ has been the sole administrator of the prestigious Malcolm
Baldrige National Quality Award since 1991. Headquartered in Milwaukee, Wis.,
ASQ is a founding partner of the American Customer Satisfaction Index (ACSI), a
prominent quarterly economic indicator, and also produces the Quarterly Quality
Report.

The American Society for Quality
Press Contact:
Lynda Nicely
414-298-8789 Ext. 7587
800-248-1946
lnicely@asq.org

Copyright Business Wire 2009