n America's Malcolm Baldrige National Quality Award. AT&T's TQM philosophy made it the first corporation to win these two awards. Why did Power Systems change to TQM? Prior to 1990 Power Systems provided equipment for only its parent company AT&T. Power Systems was a lackluster division of AT&T that reported losses in numerous quarters. As the scope AT&T and business as a whole changed Power Systems was forced to survive on its own. No longer would losses be tolerated, if the work couldn't be completed in a cost-effective manner the division would be sold and the work would be given to an outsourcer. A.M. (Andy) Guarriello, Vice President & COO of Power Systems, was given the job of implementing TQM. Guarriello along with Power Systems management team launched the "Dallas Vision" project, an initiative involving physical, organizational, and philosophical changes that soon led to the adoption of Total Quality Management as the management system for the future. Power Systems consolidated several of its locations into several small internal business units. These units would become to foundation that Power Systems operated on. Each units is given the resources to develop, engineer, manufacture, and its products. Functions such as human resources, finance, marketing, and sales are provided by smaller organizations developed to support the internal units. Power Systems Dallas unit was completely redesigned. This 900,000 square foot facility was rearranged into what AT&T calls "focused factories. Each "focused factory" has the capability to accept incoming material, manufacture, and ship finished products. This layout was designed much within the guidelines of the Japanese JIT system. Power Systems took the Japanese approach to TQM and modified to fit the AT&T culture. The TQM criteria developed within Power Systems were selected to ensure the company's ongoing focus on high standards for customer orientation, process excellence, em...
