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Przasnyski and Tai’s evidence suggests that the spectacular returns claimed by earlier studies were largely due to a booming stock market and a booming economy. However, when evaluating the long-term effect of buying and holding stock of these MBNQA firms, they found that those firms outperformed stocks with similar risk. , a leading manufacturer of integrated circuits. Analog implemented a broad-based TQM program in 1987 that, by all accounts, was highly successful. By 1990, the firm’s yield had doubled, manufacturing cycle time had been cut in half, and product defects had fallen by a factor of 10.

Przasnyski and Tai’s evidence suggests that the spectacular returns claimed by earlier studies were largely due to a booming stock market and a booming economy. However, when evaluating the long-term effect of buying and holding stock of these MBNQA firms, they found that those firms outperformed stocks with similar risk. , a leading manufacturer of integrated circuits. Analog implemented a broad-based TQM program in 1987 that, by all accounts, was highly successful. By 1990, the firm’s yield had doubled, manufacturing cycle time had been cut in half, and product defects had fallen by a factor of 10.

But the study did not control for industry factors, did not have a comparison group of non-TQM firms, and did not test for statistical significance of the improvements in performance. Similarly, later studies (reviewed below) showed that the reports regarding the performance of the hypothetical stock investment in Baldrige winners Malcolm Baldrige National Quality Award Program 23 were exaggerated. Opponents, disputing the NIST claims, point to the dismal performance of Cadillac, Federal Express, and Motorola, which suffered declines in market shares and in general profitability levels soon after winning the MBNQA.

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