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<v Narrator>Are American companies losing the race to be the best in the international marketplace? <v Narrator>A special report on quality in American business, coming up on the Nightly Business <v Narrator>Report. <v NBR Speaker>The Nightly Business Report produced in association with Reuters, <v NBR Speaker>the world's largest electronic publisher, <v NBR Speaker>made possible by Digital Equipment Corporation, offering customers <v NBR Speaker>the power of BMS software and the open environment of Unix based <v NBR Speaker>systems. <v NBR Speaker>Kidder, Peabody, one of the world's major investment firms and G.E. <v NBR Speaker>Capital providing business with comprehensive financing, two companies of G.E. <v NBR Speaker>financial services.
<v NBR Speaker>By A.G. Edwards, members of the New York Stock Exchange, serving individuals <v NBR Speaker>and businesses through more than 380 locations, A.G. <v NBR Speaker>Edwards investments since 1887 and by the <v NBR Speaker>financial support of viewers like you. <v Jim Wicks>Good evening. We hope you've had a pleasant Independence Day, now because the stock <v Jim Wicks>markets were closed today. We're bringing you a special edition of the Nightly Business <v Jim Wicks>Report. <v Linda O' Bryon>It deals with a topic that has taken on growing importance for U.S. <v Linda O' Bryon>businesses over the past several years, quality and the number of companies striving <v Linda O' Bryon>to be the best both at home and abroad. <v Linda O' Bryon>We'll focus on how a variety of companies are seeking to be the best in their industries. <v Linda O' Bryon>We'll also try to offer some insight into how consumers feel about the quality of <v Linda O' Bryon>American companies, goods and services. <v Linda O' Bryon>For that, we'll use a survey conducted last year by the Gallup Organization for the <v Linda O' Bryon>American Society for Quality Control. <v Jim Wicks>Now, because the quality of American goods has been under fire in recent years, we'll
<v Jim Wicks>start there. The survey asked more than a thousand people how they would rate <v Jim Wicks>the quality of American goods in general. <v Jim Wicks>48% gave U.S. <v Jim Wicks>made products a high rating, down slightly from a similar survey the groups conducted <v Jim Wicks>in 1985. The percentage of people who rated American products as average <v Jim Wicks>remained the same at 36%, while those giving them low quality marks rose <v Jim Wicks>to 15%. The survey suggests that while most Americans believe the quality <v Jim Wicks>of domestic goods is acceptable, there is room for improvement. <v Katie Mann>Take a look at any bookstore and you'll see a barrage of new books on quality <v Katie Mann>today. Quality is like a buzzword among business people, but there's one organization <v Katie Mann>that's been talking quality for over 40 years, The American Society for Quality <v Katie Mann>Control. <v John Condon>Our primary objective is to provide an <v John Condon>array of programs and activities <v John Condon>to satisfy the professional needs of our membership.
<v Katie Mann>John Condon is president of the ASQC, he says the main goal of his organization <v Katie Mann>is education. Today, the group has 63,000 members worldwide. <v Katie Mann>They represent a huge number of businesses and industries. <v Katie Mann>The ASQC is headquartered in Milwaukee, Wisconsin. <v Katie Mann>It holds seminars and conferences here and around the country. <v Katie Mann>One of the first points it tries to get across to members is what quality means. <v John Condon>Quality today is basically satisfying customers <v John Condon>needs and expectations. <v Katie Mann>Meeting consumer expectations may sound like a simple idea, but for many companies, <v Katie Mann>turning that idea into reality is difficult. <v Katie Mann>Quality experts say a common pitfall is building a product, then trying <v Katie Mann>to mold American tastes around that product. <v Katie Mann>It's a backward approach that was especially common during the 1970s, and that approach <v Katie Mann>got some companies into deep trouble. <v Katie Mann>For example, Harley Davidson. <v Katie Mann>In 1981, when a group of Harley Davidson managers bought back the company from AMF,
<v Katie Mann>they purchased a company in a serious financial slump. <v Katie Mann>In an effort to turn the situation around, the new owners invested in statistical process <v Katie Mann>control or SPC. <v Katie Mann>During our visit to the Harley-Davidson plant, we saw SPC in action. <v Katie Mann>Dennis Bilton discovered that the boardings in an oil pump he produced seemed closer <v Katie Mann>together than normal. He stopped production and took the pump in for inspection. <v Katie Mann>Using robotic equipment, <v Katie Mann>a coworker discovered that the borings were off by 2/10000 of an inch. <v Katie Mann>That may not sound like much, but Harley managers say that tiny imperfection can cause <v Katie Mann>problems in starting the engine. <v Katie Mann>The part was scrapped, Bilton's equipment re-adjusted. <v Katie Mann>Managers at Harley say SPC involves tracking and charting every nuance <v Katie Mann>of manufacturing, and it requires a level of trust that's often lacking between workers <v Katie Mann>and managers. <v Leonard Ricard>That's the most important thing, that the employee doesn't get beat up because he's <v Leonard Ricard>identified a problem, but in fact the process has stopped and he's rewarded <v Leonard Ricard>for determining the fact that something has to be done.
<v Katie Mann>SPC is one of many processes preached by the American Society for Quality Control, <v Katie Mann>but officials at the ASQC and at Harley warn that by itself, SPC can't <v Katie Mann>transform a company's quality. <v Katie Mann>Donald Hansen says he learned that the hard way. <v Katie Mann>Hansen is president of Delta Resins, which produces chemical resins and high temperature <v Katie Mann>coatings used in the foundry industry, he invested in SPC in 1986. <v Donald Hansen>What we missed is uh the fact that a tool <v Donald Hansen>is fine in controlling the process, but what we had to do is change the culture of our <v Donald Hansen>people in the education and the philosophy of the whole quality process. <v Katie Mann>Hansen says that change in corporate culture is now underway beginning with <v Katie Mann>him. At the ASQC officials are encouraging other company leaders to take the <v Katie Mann>same kind of hard look at themselves. <v Katie Mann>They say investing in quality is the only way U.S. <v Katie Mann>companies will be armed for future survival. <v Linda O' Bryon>Companies are working hard to promote the quality aspects of their business through
<v Linda O' Bryon>advertising, but they still have to prove themselves to consumers. <v Linda O' Bryon>When the ASQC/Gallup survey asked consumers to rate service companies, <v Linda O' Bryon>banks came out on top. 54% gave banks a high rating, compared <v Linda O' Bryon>to 52% in the 1985 poll. <v Linda O' Bryon>Hotel's placed second with 44% saying they give a high level of service. <v Linda O' Bryon>Hospitals and insurance companies were next, although both slipped in consumer's eyes <v Linda O' Bryon>from three years previous. <v Linda O' Bryon>Airlines saw the biggest decline in consumer satisfaction, with only 32% giving them <v Linda O' Bryon>high marks for service, down from 47% in 1985. <v Jim Wicks>When it came to naming companies associated with high quality 15% <v Jim Wicks>of the respondents couldn't name any one. <v Jim Wicks>Of the ones they did named General Electric received the highest number of mentions with <v Jim Wicks>21%. General Motors and Ford shared a distant second place at 14%. <v Jim Wicks>IBM and Sears were both mentioned by 13%. <v Jim Wicks>And, you know, here's an interesting point, all three U.S.
<v Jim Wicks>automakers placed in the top 10 with Chrysler ranked 8th. <v Linda O' Bryon>After years of criticism, this may be another sign that the quality improvement programs <v Linda O' Bryon>instituted by the Detroit car makers are, in fact, working. <v Trudy Gallant>The emphasis on quality in the automotive industry came out of necessity after small, <v Trudy Gallant>fuel efficient Japanese cars invaded the U.S. <v Trudy Gallant>marketplace during the energy crisis of the mid 1970s. <v Trudy Gallant>American consumers loved their mileage, and they also discovered the cars were well-made. <v Trudy Gallant>Meanwhile, Detroit automakers had what was often called a find and fix approach to <v Trudy Gallant>quality. <v Arvid Jouppi>We were sloppy, uh we didn't really re-emphasize performance. <v Arvid Jouppi>We wanted vehicles that would get up and go and we didn't really care specifically <v Arvid Jouppi>about quality. <v Commercial Spokesman>There's no great mystery to satisfying your customers. <v Commercial Spokesman>Build them a quality product, treat 'em with respect, it's that simple. <v Trudy Gallant>But today, the auto companies are bending over backwards to please customers, claiming <v Trudy Gallant>their cars are the best made and the best backed. <v Commercial Narrator>GM is the only American car maker to offer a bumper to bumper warranty for 3
<v Commercial Narrator>years or 50,000 miles on every car or light truck we make. <v GM Employee>What we produce here makes the economy stronger and provides good jobs. <v Trudy Gallant>And the UAW is involved through joint quality councils with carmakers and <v Trudy Gallant>through image campaigns aimed at workers to remind them that quality sells cars <v Trudy Gallant>and saves jobs. 1980 marked the worst year in Ford Motor Company's 80 <v Trudy Gallant>year history, with a $1.8 billion loss that forced the company to re-evaluate <v Trudy Gallant>and to look at quality as a possible driving force out of red ink. <v Bob Madon>At Ford, our goal is to build the highest quality cars and trucks in the world. <v Trudy Gallant>Ford executives say that policy has paid off. <v Steve Geoffrey>Since 1980, we've made uh 68 to 70 percent <v Steve Geoffrey>improvement, in things gone wrong, we've reduced a number of things going wrong <v Steve Geoffrey>by that amount. In over 20 percentage points I think improvement <v Steve Geoffrey>in customer satisfaction. <v Trudy Gallant>Guided by quality guru Dr. Edward Deming, the company made revolutionary <v Trudy Gallant>changes in how it approached manufacturing.
<v Trudy Gallant>Customers were consulted at the beginning of the development process. <v Trudy Gallant>The design was still on the sketchpad and feedback continued along the way. <v Trudy Gallant>Suppliers and plants were encouraged to strive for excellence through the Q1 awards <v Trudy Gallant>competition. <v Steve Geoffrey>And probably another major improvement has been involving the worker <v Steve Geoffrey>in the development process. In the case of the Taurus Sable, team Taurus <v Steve Geoffrey>there were over 450 recommendations made by the workers. <v Trudy Gallant>Workers were also given additional monitoring tools like SPC Statistical <v Trudy Gallant>Process Control, a system which identified problems before they leave the line. <v Trudy Gallant>The programs appeared to have paid off for Ford. <v Trudy Gallant>They've surpassed GM in profits the last two years, making $5.3 billion <v Trudy Gallant>dollars in 1988. <v Steve Geoffrey>There are some Japanese competitors that are still really number one in terms <v Steve Geoffrey>of the overall quality rating, but we're getting to the point where there's hardly a <v Steve Geoffrey>distinguishable difference. <v Trudy Gallant>Despite ongoing incentives, car sales are sluggish right now. <v Trudy Gallant>Still, automakers insist that even with streamlining, they can't afford to let quality
<v Trudy Gallant>take a backseat. <v Steve Geoffrey>There is that perception that quality costs, and we find that <v Steve Geoffrey>if we satisfy the customer, make <v Steve Geoffrey>the design more assemblable, easier to manufacture, <v Steve Geoffrey>and get the supplier doing it with fewer mistakes. <v Steve Geoffrey>Ultimately, when you look at the total system, it's more efficient, it's more timely, <v Steve Geoffrey>and it's less costly. <v Jeff Reisman>This is a prime example of America's service economy, the banking and financial <v Jeff Reisman>services industry, and this is one of the field's biggest players, Citicorp. <v Jeff Reisman>It has built a reputation as a company committed to service quality and being responsive <v Jeff Reisman>to its customers. <v James Stojak>If you treat a customer right, the customer is going to stay with you, and we continue to <v James Stojak>try to retain every single customer that signs up with us. <v Ron Zemke>Service quality is a retention strategy for an organization, and that's critically <v Ron Zemke>important today that you keep the business you have. <v Jeff Reisman>Service quality is a prime reason for selecting a bank and maintaining such <v Jeff Reisman>relationships, according to numerous consumer surveys.
<v Jeff Reisman>Recognizing that, Citicorp within the last decade has stepped up its efforts to <v Jeff Reisman>improve service quality. <v Steve Sershen>It has to be grown in our organization, it has to come from senior management down <v Steve Sershen>and everyone has to believe it in their heart. <v Jeff Reisman>Citicorp's efforts have brought visible results. <v Jeff Reisman>The company was the first to introduce automated teller machines on a large scale. <v Jeff Reisman>In the bank card area, 24 hour customer service centers like this resolve nearly <v Jeff Reisman>all inquiries and problems during the customer's first phone call, according to the <v Jeff Reisman>company. Nearly 80,000 calls a day come in. <v Jeff Reisman>At this customer service center in Maryland, Citicorp is keeping in touch with its <v Jeff Reisman>customers, said to be a key way for companies to maintain and enhance service quality. <v Jeff Reisman>The Citicorp employee is said to be a vital part of this process. <v Citibank CSR>Citibank, Melissa speaking, how can I help you? <v Steve Sershen>We need to hire people with a ?homely? Help you attitude because there's some things you <v Steve Sershen>can train for and some things you can't. <v Citibank CSR Manager>Primary purpose that we're going to fulfill- <v Jeff Reisman>The company holds six week training courses for new employees in the service centers. <v Jeff Reisman>Then quality control specialists monitor employee job performance.
<v Karen Carbaugh>This is not unlike the kind of quality control that you would find in a manufacturing <v Karen Carbaugh>company. <v Jeff Reisman>Signs of pride in work performance are seen around the Maryland service center. <v Jeff Reisman>Praise, recognition and monetary rewards contribute to employee satisfaction <v Jeff Reisman>according to the company. Citicorp says employee happiness brings better customer <v Jeff Reisman>service and an improved company bottom line. <v James Stojak>If we're constantly reworking mistakes that we've made, it costs you money. <v James Stojak>We do 'em right the first time, we can handle tremendous volumes at much lower costs. <v Jeff Reisman>Advertising campaigns of Citicorp subsidiary Citibank reinforced commitment <v Jeff Reisman>to customer service. An example is this commercial for the company's lost wallet service. <v Commercial Customer>No cash, no plane ticket, no credit card, no I.D., I called Citibank <v Commercial Customer>immediately. <v Commercial Customer Service Rep>I told her not to worry. <v James Stojak>The advertising based off real life experiences, these are not fabricated circumstances, <v James Stojak>but they're intended to reinforce the message that we're here for the customer 24 hours a <v James Stojak>day, 7 days a week. <v Jeff Reisman> To maintain and improve service, Citicorp listens to its customers and
<v Jeff Reisman>its employees. <v Ron Zemke>It's remarkable and in a way laughable how few organizations actually ask <v Ron Zemke>their own people, what are we doing that seems to get in the way of customer <v Ron Zemke>satisfaction? <v Jeff Reisman>While Citicorp's level of customer satisfaction now ranks about 97 percent, according <v Jeff Reisman>to in-house surveys, the company has set new goals to bring customer satisfaction levels <v Jeff Reisman>even higher. <v Dick Schaaf>The future of American industry will depend in part on its ability to develop new <v Dick Schaaf>quality products and technologies. <v Dick Schaaf>At 3M, innovation has been the key to the company's success, leading some to call <v Dick Schaaf>it the best general manufacturing company in the world. <v Dick Schaaf>More than 100 basic technologies, more than 60,000 products, <v Dick Schaaf>10 billion dollars in annual sales, nearly half to customers outside <v Dick Schaaf>the United States. The numbers flow from a steady stream of new products whose <v Dick Schaaf>primary selling point is the 3M reputation for quality. <v Allen F. Jacobson>Because that's really the future of the business. <v Allen F. Jacobson>The financial results are what we did this year, but the new products are what we're
<v Allen F. Jacobson>going to do in the future. <v Dick Schaaf>3M innovates because 3M plans to innovate. <v Dick Schaaf>Each year, at least 25% percent of annual sales are expected to come <v Dick Schaaf>from products that were not on the market five years ago. <v Dick Schaaf>Six and a half cents of every dollar earned goes back into research and development, <v Dick Schaaf>about double the R&D investment typical in American industry today. <v Dick Schaaf>And technical people are expected to spend 15% percent of their time on ideas <v Dick Schaaf>that they think can lead to new products. <v Arthur Fry>This is founded in the belief that-that every individual <v Arthur Fry>has a viewpoint that's unique to that individual, and they can see <v Arthur Fry>opportunities that will be missed by other people, and <v Arthur Fry>if you have um-us an organization system that <v Arthur Fry>generates inside out ideas versus just top down ideas, <v Arthur Fry>you'll get a lot more ideas. <v Dick Schaaf>Art Fry will be forever remembered as the Post-It note guy. <v Dick Schaaf>In his quest for a bookmark that wouldn't fall out of his hymnal at church choir.
<v Dick Schaaf>He helped invent a whole new line of business. <v Dick Schaaf>[Small indistinct conversation] He also helped make sure it met 3M's rigid standards for <v Dick Schaaf>quality. <v Arthur Fry>And we set up tests that would measure the quality at each point as well <v Arthur Fry>as we could, and if it didn't meet the requirements that we set for <v Arthur Fry>it and we set them high, the requirements as high as we can imagine, not as high as we <v Arthur Fry>can make, and we would throw it away. <v Arthur Fry>We wouldn't let anybody use it, in either in the laboratory, or in production. <v Arthur Fry>If you develop a product, get it to the market thinking <v Arthur Fry>that you'll clear up the quality problems later, all you do is set the table and somebody <v Arthur Fry>else comes along and eats your lunch. <v Dick Schaaf>The result of the millions of ?pants? <v Dick Schaaf>Sold since Post-it notes hit the market in 1979. <v Dick Schaaf>There have been just 80 complaints about bad quality product reaching the customer. <v Dick Schaaf>The post-it note relies on an adhesive coating that failed. <v Dick Schaaf>It didn't stick to things the way researchers spent silver planned, but encouraged by a <v Dick Schaaf>culture that rewards enterprise and initiative. <v Dick Schaaf>Art Fry found a practical new use for it, Dr. William Isaacson 's story
<v Dick Schaaf>is similar. In the 1970s, he worked with reflective optical coatings on <v Dick Schaaf>highway signs. Then he started wondering whether the basic polymer technology couldn't <v Dick Schaaf>be applied to contact lenses. <v Dick Schaaf>This year, 10 years later, the result of his work is finally on the market. <v Dick Schaaf>The Allergan Advent developed by 3M, the first new contact lens <v Dick Schaaf>in a decade. <v William Issacson>I think that every product really has to have a champion, and uh, in this case, <v William Issacson>I was the product champion and I had some very strong support at the upper management <v William Issacson>level. I think-I think some people that really believed in what I was doing were willing <v William Issacson>to-to hang in there with me. <v Dick Schaaf>At 3M, they call it practical dreaming, and it's an environment that builds long term <v Dick Schaaf>loyalty. Allen Jacobsen came to 3M 42 years ago as a product <v Dick Schaaf>engineer fresh out of Iowa State University, Art Fry's 3M career <v Dick Schaaf>spans 35 years, Isaacson's 25. <v William Issacson>To me, I have a challenge here, I have an opportunity, I have freedom and I have <v William Issacson>support, and what more could you want?
<v Christyna Copeland>Are happy workers really better workers? <v Christyna Copeland>And if so, how far should a company go to keep its workers happy? <v Christyna Copeland>Miami based Hyder System offers a number of special benefits to its employees, <v Christyna Copeland>including this fitness center, tuition and child care reimbursements, as well as the <v Christyna Copeland>more standard health and financial benefits. <v Christyna Copeland>The company sees it as a way of improving the quality of its workforce. <v Gail McDonald>In a service company, the company's success is directly <v Gail McDonald>related to the quality of the people. We cannot do it without a quality workforce, <v Gail McDonald>so anything we can do to attract quality people, to develop people, to become better than <v Gail McDonald>they may have even thought they could be, to keep them in the company, to have them uh <v Gail McDonald>talk to their friends who might be future customers of the company. <v Gail McDonald>Anything we can do to build that quality workforce is directly related to our business. <v Christyna Copeland>Many companies are discovering the benefits of offering special amenities to their <v Christyna Copeland>employees, like the workout center or even a quiet place to think in the <v Christyna Copeland>middle of a busy office building.
<v Christyna Copeland>But they all agree that benefits like these can take the place of quality communications <v Christyna Copeland>between workers and management. <v William Werther>These areas write checks, higher pay, higher benefits, better working conditions, <v William Werther>and those are gonna be necessary to attract or retain workers no question about it, but <v William Werther>those are relatively easy. It's a matter of just simply coming up with the money. <v William Werther>The tough part is what the manager is going to have to do. <v William Werther>The manager is going to have to respond to the employees and become more responsive. <v Christyna Copeland>Ryder has instituted a three part quality program that includes strong emphasis <v Christyna Copeland>on worker involvement in making recommendations. <v Gail McDonald>That start with the premise that the person who best knows how to do a job and best <v Gail McDonald>knows what needs to be changed is the person who's doing the job, not someone three, or <v Gail McDonald>four, or five levels higher. <v Christyna Copeland>Formal training sessions as well as informal groupings give employees a chance to <v Christyna Copeland>discuss problems and exchange ideas with management, making sure that rank-and-file <v Christyna Copeland>workers have a say in improving productivity has become an increasingly popular part <v Christyna Copeland>of quality control programs. <v Christyna Copeland>A study by the Boston University School of Management Manufacturing Roundtable
<v Christyna Copeland>found that the number of organizations where all employees are kept informed of business <v Christyna Copeland>goals and strategies has nearly doubled since 1984. <v William Werther>What we're seeing is time after time, when you read about a company that's going through <v William Werther>a turnaround, it often starts with the financial changes that we read about in the <v William Werther>financial press, but if you look at the company two, or three, or four years later and <v William Werther>ask did those changes make a difference? <v William Werther>If the answer is yes, if the company is in fact being successful, almost always you find <v William Werther>a change in how management, how the boss treats the worker. <v Christyna Copeland>Labor forecasters say business is in for a tough time as it moves into the next decade. <v Christyna Copeland>Not only will the labor pool be smaller, but it will also be filled with more women, <v Christyna Copeland>minorities and immigrants than ever before, putting added pressure on companies <v Christyna Copeland>to improve their ability to respond to workers needs. <v Christyna Copeland>Companies looking to move ahead may find the flexing the corporate muscle first <v Christyna Copeland>requires the ability to let workers bend an ear. <v Jim Wicks>One of the biggest challenges U.S. companies face in the race to be the best is from
<v Jim Wicks>foreign business. But the American Society for Quality Control Gallup survey found <v Jim Wicks>that most Americans believe in the quality of U.S. <v Jim Wicks>products. The survey found 53% thought the quality of products made <v Jim Wicks>in the U.S. by American companies was better than the quality of products <v Jim Wicks>made by foreign companies outside the U.S.. <v Jim Wicks>Only 14% thought the reverse was true. <v Linda O' Bryon>But there was a large difference of opinion on that question, depending on the <v Linda O' Bryon>respondents job category. <v Linda O' Bryon>The U.S. made goods, got their highest ratings from those in clerical sales and <v Linda O' Bryon>service jobs and those not in the workforce. <v Linda O' Bryon>While foreign products received higher marks from professional and business people, <v Linda O' Bryon>the issue of U.S. versus foreign quality is also being debated in Washington, <v Linda O' Bryon>where the government is trying to decide what role it should play in helping American <v Linda O' Bryon>companies. <v Helen Whelan>After World War 2, when Europe and Japan were devastated, the U.S. <v Helen Whelan>was the world leader in the manufacture of cars, steel, and television.
<v Helen Whelan>Today, Zenith is the only American company making television sets. <v Helen Whelan>U.S. made steel provides a scant 10% of the world's needs and U.S. <v Helen Whelan>autos only 24% of the world's cars, the list goes on and on. <v Helen Whelan>American made textiles, shoes losing out to made in Taiwan, made in Japan. <v Helen Whelan>Some say that's because America's quality has deteriorated, but the growth in the number <v Helen Whelan>of companies initiating quality control programs has others saying it's possible <v Helen Whelan>for the U.S. to return to its position as a world leader. <v Richard Gephardt>I predict that in the next 10 years, American products will again be known <v Richard Gephardt>for very high quality. <v Spokesman>High definition- <v Helen Whelan>One area where the United States government thinks America can lead the world is in high <v Helen Whelan>definition television, despite a giant headstart by the Japanese, <v Helen Whelan>and soon the Bush administration will announce how much it plans to help. <v Robert Mosbacher>We are at this juncture developing a policy <v Robert Mosbacher>in the administration as to standards and as to
<v Robert Mosbacher>other aspects of uh whether there will <v Robert Mosbacher>be any government involvement. <v Helen Whelan>House Majority Leader Richard Gephardt says the government should definitely get <v Helen Whelan>involved. <v Richard Gephardt>We need a game plan. If we let everybody go on their own, I think you'll have another <v Richard Gephardt>situation like we had with the VCR where we talked about it, but never <v Richard Gephardt>did it. <v Helen Whelan>So, in other words, we need an industrial policy. <v Richard Gephardt>I wouldn't call it an industrial policy because that carries so many other connotations <v Richard Gephardt>uh that people fear. <v Richard Gephardt>People don't want a central bank making decisions, they don't want a federal <v Richard Gephardt>government saying who does what and how it should be done. <v Richard Gephardt>I rather see it as a cooperative effort for economic progress. <v Helen Whelan>Already, the government is getting into cooperative research and development projects <v Helen Whelan>with the steel industry and computer chip manufacturers. <v Helen Whelan>The first R&D joint venture was between 14 semiconductor manufacturers and the <v Helen Whelan>Defense Department called Sematech. <v Bob Noyce>The Defense Department uh supported this because we were losing in that business
<v Bob Noyce>and it's our mission to become a winner. <v Helen Whelan>In fact, the same companies that make up Sematech have asked the government to change its <v Helen Whelan>antitrust laws to allow competing companies to jointly produce computer chips. <v Bob Noyce>One of the reasons for putting a consortium together is to try to get the shared learning <v Bob Noyce>from many companies put together in one entity so that we can pass that shared learning <v Bob Noyce>back to the members uh and uh consortium for manufacturing <v Bob Noyce>is more tightly coupled than that. <v Helen Whelan>And according to House Majority Leader Gephardt, competing companies should be allowed to <v Helen Whelan>jointly manufacture products, and Republican Tom Campbell has introduced a bill to <v Helen Whelan>allow them to do just that. He says businesses need to worry less about domestic <v Helen Whelan>competition and worry more about beating foreign competitors. <v Tom Campbell>The government gives permission under the antitrust laws and says that we believe that <v Tom Campbell>the market you're identifying, whether it's HDTV, high megabit DRAM, or <v Tom Campbell>steel, or automobiles, is such that the world is the market. <v Tom Campbell>There's very little chance of anti-competitive result from allowing you two to work <v Tom Campbell>together, good luck.
<v Linda O' Bryon>An overwhelming number of those questioned in the ASQC/Gallup survey also feel <v Linda O' Bryon>that the quality of American made products will improve, although the optimism has <v Linda O' Bryon>declined slightly since 1985. <v Linda O' Bryon>68% feel American quality will improve over the next five years, <v Linda O' Bryon>20% thought it would stay the same, only 11% predicted a decline. <v Jim Wicks>You know, one thing seems clear in all this. <v Jim Wicks>American companies are increasingly aware of the need for better quality goods <v Jim Wicks>and services, and they are taking the steps to improve quality in their own businesses. <v Jim Wicks>But how far can it go? Well, we leave you with a quote from the Boston University <v Jim Wicks>Manufacturing Roundtable study on the future of manufacturing. <v Jim Wicks>And it goes like this, "the only losers in the race for quality will be those <v Jim Wicks>that believe they finished.". <v Linda O' Bryon>Thank you for joining us this evening. Please join us again tomorrow night and every <v Linda O' Bryon>weekday night for the regular edition of the Nightly Business Report. <v Linda O' Bryon>I'm Linda O'Bryon. <v Jim Wicks>And I'm Jim Wicks. For all of us at the Nightly Business Report.
<v Jim Wicks>Good night. <v NBR Speaker>The Nightly Business Report is made possible by A.G. <v NBR Speaker>Edwards providing financial services through more than 380 locations. <v NBR Speaker>A.G. Edwards, a century old tradition of putting the customer first. <v NBR Speaker>By Kidder, Peabody one of the world's major investment firms, <v NBR Speaker>and G.E. capital providing business with comprehensive financing <v NBR Speaker>to companies of G.E. Financial Services. <v NBR Speaker>By Digital Equipment Corporation, offering customers the power of BMF <v NBR Speaker>software and the open environment of Unix based systems, <v NBR Speaker>and by the financial support of viewers like you. <v NBR Speaker>Reuters, the world's largest electronic publisher, provides the Nightly Business Report <v NBR Speaker>with news, market data, and communications services worldwide.
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"Quality control became a buzz word at many U.S. companies towards the end of the 1980's, as the quality of American goods and services was called into question. The nightly business report special 'To Be the Best' looks at several companies attempts to improve quality and the effect those changes have had in their business. "The program seeks to show how quality improvement affects not only the companies bottom line but also management's relationship with workers and the public's perception of that company and its products or services. A Gallup poll conducted for the American Society for quality control offers insight into the way Americans feel about the quality issue. Finally, the program looks at what role the federal government has played in trying to improve quality in American business and whether it has been sufficient in the face of growing foreign competition. "We believe this program deserves consideration for a Peabody award because it is a strong look at a topic rarely covered by television. More companies have requested copies of this program than any other special produced by the Nightly Business Report. The requests appear to support our original theory that more and more companies are in fact interested in discovering what it takes 'To Be the Best'."--1989 Peabody Number entry form.
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Producing Organization: WPBT-TV (Television station : Miami, Fla.)
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The Walter J. Brown Media Archives & Peabody Awards Collection at the University of Georgia
Identifier: cpb-aacip-ea4c41132a2 (Filename)
Format: U-matic
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Chicago: “The Nightly Business Report; To Be the Best,” 1989, The Walter J. Brown Media Archives & Peabody Awards Collection at the University of Georgia, American Archive of Public Broadcasting (GBH and the Library of Congress), Boston, MA and Washington, DC, accessed June 26, 2022,
MLA: “The Nightly Business Report; To Be the Best.” 1989. The Walter J. Brown Media Archives & Peabody Awards Collection at the University of Georgia, American Archive of Public Broadcasting (GBH and the Library of Congress), Boston, MA and Washington, DC. Web. June 26, 2022. <>.
APA: The Nightly Business Report; To Be the Best. Boston, MA: The Walter J. Brown Media Archives & Peabody Awards Collection at the University of Georgia, American Archive of Public Broadcasting (GBH and the Library of Congress), Boston, MA and Washington, DC. Retrieved from