House Committee on Science
Subcommittee on Environment, Technology, and Standards
Hearing on
NIST FY ’05 Budget Request: Industry Perspectives

Statement for the Record
Submitted by
The American Society for Quality

May 10, 2004 - The American Society for Quality (ASQ) wishes to commend the Science Committee for holding hearings on funding for the National Institute of Standards and Technology, an agency that plays an important role in the American quality movement.

ASQ has worked closely with NIST since the mid-1980s. Our organizations came together due to our mutual interest in the need at that time to restore American competitiveness through product and service quality. The result of that interest and need was the establishment of the Malcolm Baldrige National Quality Award, which is administered by NIST’s Baldrige National Quality Program office. ASQ has also maintained a close working relationship with NIST over the years on standards-related matters, including most recently standards related to homeland security. As the nation’s leading quality improvement organization, ASQ has been closely involved with the Baldrige Award since its inception. The expertise of ASQ members was instrumental in formation and refinement of the highly acclaimed Baldrige Award Criteria. Furthermore, ASQ represents the primary network of quality professionals in the United States, who form the core of the extensive volunteer activity supporting the Baldrige process throughout the country.

The services provided by NIST in managing the Baldrige Award program are not available elsewhere—due to the unique nature of the Baldrige process and the roles that NIST plays in this unparalleled public-private collaboration.

NIST provides a safe forum for firms to share information about their quality models and processes, which normally would not be shared because of its proprietary nature. NIST has an impeccable reputation for high standards and objectivity, an essential condition for entities to reveal sensitive information about their programs. NIST brings national prestige to the quality improvement initiative.

NIST has proven to be very effective in leveraging the efforts of the private and voluntary sector organizations that provide extensive monetary, professional, and in-kind services and support for the Baldrige Award activities—organizations such as ASQ and the private-sector Foundation for the Malcolm Baldrige National Quality Award.

Baldrige has provided a rigorous, nonpolitical examination process for its applicants that has proven effective in understanding and recognizing those organizations that have achieved superior results because of quality management—and in sharing those results across all sectors. The Baldrige process is perceived as fair, and without its own agenda. In addition, the business, education, and healthcare communities have expressed the need for a NIST-managed Baldrige program that is independent of agencies with regulatory oversight.

None of these functions can be undertaken by the private sector alone or by another government agency; they are truly unique to NIST.

The Baldrige Award program, a key element in defining quality practices in all sectors of the economy, is affected by the reduction in NIST’s funding in two primary ways.

Because of budget considerations, two positions (out of 36) in the Baldrige National Quality Program that have become vacant through staff departures will not be filled.

A second major impact is that NIST will delay its efforts in developing e-processes. These include distance and web-based learning modules for Baldrige Examiners, electronic submission of Baldrige applications, and secure web-based application review by Examiners. These e-processes represent potential cost savings in the administration of the award program and potential cycle-time reductions for applicant feedback. The greatest desire of Baldrige applicant customers is more rapid feedback.

ASQ supports an increase in funding for the Baldrige Award program of $1.5 million for Fiscal Year 2005 that would fund activities related to the expansion of the Baldrige Award to cover the not-for-profit sector. This move will allow the Malcolm Baldrige National Quality Award to reach its full potential as a force for positive change within our nation’s economy by permitting not-for-profit organizations, representing a significant portion of the U.S. economy, to apply for the Award and benefit from its assessment and feedback processes.

In addition to ASQ, the independent Foundation for the Malcolm Baldrige National Quality Award, the Baldrige Board of Overseers, the Secretary of Commerce, and the President have all endorsed the expansion, and the Foundation has indicated its willingness to determine additional fundraising that may be necessary to support a new not-for-profit category.