Pearl Park

Pearl Park is a Senior Researcher, National Quality Center of KSA (Korean Standards Association). Her main focus area for quality is on human resource development and management. She is interested in research on non-financial achievement of quality management especially on the aspect of an organization’s human resources. Their quality mindset, CEO’s quality philosophy, and collective quality intelligence are also the key words for her focus area.

 

 

 

Abstract

KNQA’s effects on Korean national industrial development

2015 is the 40th anniversary for KNQA(Korean National Quality Award) since it was first launched at 1975 as the part of Korean export increasing policy. For those 40 years, KNQA system has dedicated to growth of national industrial quality competitiveness by promoting quality management. For continuous development of KNQA system and Korean industry, it is required to changes. This is why we research KNQA winners, analyze financial & non-financial excellence, and draw the implication its effects on Korean national industrial development.

KNQA is the quality excellence model for Korean companies and organizations. The model benchmarked the Malcolm Baldrige National Quality Award, however KNQA modified to fit in Korean industrial circumstances. It specified its categories and developed judgment index periodically by reflecting the status of Korean industry. And KNQA separate a category for SME(Small & Medium Enterprises). This allows Korea to find out some hidden SMEs which are excellent in product & service quality and quality management system.

Actually, for every major 10 industries of Korea, many of KNQA winners are placed inner circle of market share Top 5. It includes automobile, ship plant, machinery & plant, metal, fine chemicals, fiber, clothing, home appliances, electronics parts, tele-communication, computer, semi-conductor, display, and etc.

There’s a meaningful correlation between KNQA winners’ quality management excellence and financial indicators in recent three years. Especially profitability indicators are turns out to quality management excellence in long & short terms, growth and productivity indicators are in short terms, and activity indicators are in long term. KNQA winners show higher excellence in financial indicators compare to non-KNQA winners. Quality management excellence defined by KNQA model flows to 1) building & managing quality excellence system, 2) improvement of product & service quality, 3) customer satisfaction, 4) financial excellence. This flow is supported by the fact that KNQA winners’ sales and profits are continuously increased after they awarded

The KNQA winners improve R&D investment 57.5%p and OEE (Overall Equipment Effectiveness) 5.9%p in average. As the result of these long & short efforts, they reduce the nonconformity rate 32%p and improve yield 2.1%p in average. It shows that through the long & short term quality management activities, product and service quality innovation is achieved. Also, KNQA winners raise up the external customer satisfaction 3.1%p in average with the continuous quality innovation.

 

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