{"id":3161,"date":"2023-02-19T16:11:47","date_gmt":"2023-02-19T16:11:47","guid":{"rendered":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/learn-it-13-4-3-quality-assurance\/"},"modified":"2023-06-27T18:18:47","modified_gmt":"2023-06-27T18:18:47","slug":"learn-it-13-4-3-quality-assurance","status":"publish","type":"chapter","link":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/learn-it-13-4-3-quality-assurance\/","title":{"raw":"Learn It 13.4.3: Quality Assurance","rendered":"Learn It 13.4.3: Quality Assurance"},"content":{"raw":"

International Quality Standards<\/strong><\/h2>\r\nAs a consumer, wouldn\u2019t you like to know which companies ensure that their products meet quality specifications? Or maybe you want to know which companies take steps to protect the environment? Some consumers want to know which companies continuously improve their performance in both of these areas. At the same time, if you were a company doing a good job in these areas, wouldn\u2019t you want potential customers to be aware of your achievements? It might also be worthwhile to find out whether your suppliers were being conscientious in these areas\u2014and even your suppliers\u2019 suppliers.\r\n

International Organization for Standardization (ISO)<\/h3>\r\nThrough the International Organization for Standardization<\/strong> (ISO), a nongovernmental agency based in Switzerland, it is possible to learn which companies are making efforts to comply with quality and environmental standards. The resources of this organization will enable you to identify those organizations that have people and processes in place for delivering products that satisfy customers\u2019 quality requirements. You can also find out which organizations work to reduce the negative impact of their activities on the environment. Working with representatives from various countries, the organization has established the ISO 9000 family of international standards for quality management and the ISO 14000 family of international standards for environmental management.\r\n\r\nISO standards focus on the way a company does its work, not on its output (though there\u2019s certainly a strong correlation between the way in which a business functions and the quality of its products). Compliance with ISO standards is voluntary, and the certification process is time-consuming and complex. Even so, hundreds of thousands of organizations around the world are ISO 9000 and ISO 14000 certified.[footnote] \u201cISO Survey of Certifications,\u201d 2009 International Organization for Standardization,\u00a0(accessed November 2, 2011)[\/footnote] ISO certification has become an internationally recognized symbol of quality management and is increasingly\u00a0essential to being competitive in the global marketplace.\r\n

Malcolm Baldrige National Quality Award<\/strong><\/h3>\r\nNamed for a former secretary of commerce, the Malcolm Baldrige National Quality Award was established by the U.S. Congress in 1987 to recognize U.S. companies that offer goods and services of world-class quality. The award promotes awareness of quality and allows the business community to assess which quality control programs are most effective.\r\n\r\nAdministered by the U.S. Department of Commerce\u2019s National Institute of Standards and Technologies (NIST), the award\u2019s most important criterion is a firm\u2019s effectiveness at meeting customer expectations, as well as demonstrating that it offers quality goods and services. To qualify for the award, a company must also show continuous improvement in internal operations. Company leaders and employees must be active participants in the firm\u2019s quality program, and they must respond quickly to data and analysis.\r\n\r\nOrganizations in a wide variety of industries have won the Baldrige Award since it was first presented in 1987. For example, the winners for 2021 were[footnote]NIST. \u201cThree Organizations Win 2021 Baldrige Awards for Performance Excellence,\u201d March 4, 2022. https:\/\/www.nist.gov\/news-events\/news\/2022\/03\/three-organizations-win-2021-baldrige-awards-performance-excellence[\/footnote]:\r\n