, but also makes profit. This attitude as propelled Power Systems, or as it is now known Lucent Technologies, to the top of its industry. What Benefits did Power Systems see from TQM? Power Systems surpassed the expectations of management to realize colossal growth. Below is a list of improvements from a 1994 AT&T press release. These improvements pertain specifically to Power Systems. Number of customers increased by six times. Sales revenue grown by 20 percent. Operating return on assets (ROA) comparable to top 50 U.S. corporations. Customer satisfaction improved to industry-leading position. Product shipped to customers' request date 95 percent of the time. Outgoing quality (ppm) improved by a factor of twenty. New product introduction interval reduced by one-half. Inventory and investment cut in half. Quality Improvement teams grown from zero to almost 300. Employee suggestions increased from 50 to 7000 per year. ISO 9000 certification for all locations. All chlorofluorocarbon (CFC) usage and toxic air emissions eliminated. More than 98 percent of all possible items recycled. "Workplace of the Future" a model of union-management cooperation. Through the use of TQM Power Systems has thrust its way into the industry lead for quality management. All of the above benefits are directly related to the implementation of TQM and its philosophies. Power Systems took a stance against the traditional American way of doing business. In this increasing global marketplace businesses must change or they will become extinct. AT&T's Power Systems was one the first American companies to adapt Japanese quality management styles to one that works here. Further Findings AT&T's Power Systems is now Lucent Technologies, one of the fastest growing companies in the communication industry. AT&T is the leading American corporation in regards to quality management. When asked to comment on AT&T being awarded both the Deming...
