Texas Nameplate

Company, Inc.

The smallest business ever to receive a Baldrige Award,

Texas Nameplate Company, Inc. (TNC), is also the only

small business to receive the Baldrige Award twice, the first

time in 1998. Located in Dallas, Texas, TNC is a privately

held, family business that produces custom nameplates in

small and frequent orders primarily for small businesses

nationwide and abroad. These identification tags and labels

display important equipment usage and safety information

for products ranging from high-pressure valves and oil field

equipment to computers. Two years after receiving its first

Baldrige award, TNC decided to take the company to the

next level. But that did not mean growing bigger; rather it

meant wanting to get better. During the economic downturn

following the tragedy of September 11, 2001, TNC wanted

to avoid layoffs. So, as employees left over the next years, they

were not replaced. Rather, the remaining employees, down

from 66 to 39, pulled together, improved their skills, and

cross trained. By targeting specific areas for improvement,

the company increased its profitability from 36 percent to

over 40 percent, and in 2003 TNC outperformed other

companies in the industry and exceeded the performance of

comparable organizations among Industry Week’s 2003

benchmark companies. 

Building Partnerships

Relationships with customers are key to TNC’s success.

The company uses a variety of formal and informal

approaches to build and maintain relationships, including a

guarantee to deliver material on time and free of defects—or

to supply them free of charge. A variety of communication

and customer access mechanisms help these relationships

grow and thrive. They include face-to-face contact with

employees at all levels, a database of customer interactions,

and a voice mail system that ties into the company’s e-mail

system to track customer requests and concerns. Complaints

are aggregated in a database and resolved by a Corrective

Action Team.

Sustained, repeat business reflects the success of this longterm relationship building. From 2001 to 2004, repeat orders

remained steady at approximately 78 percent, and 70 percent

of the company’s top 50 customers have been buying from

TNC for more than 10 years. And, a third-party customer

survey shows that overall customer satisfaction improved

from 81 percent in 2000 to approximately 86 percent in 2003. 

The knowledge accumulated throughout these long

relationships enables the company to anticipate its customers’

long-range needs. For example, if prices in the international

market dip, TNC buys in bulk the aluminum, steel, and other

metals needed for manufacturing. Strategic buying is a major

reason that TNC’s cost of materials and related costs

declined from 17 percent of net sales in 1998 to less than 10

percent in 2004.

2004

Award Winner

National Institute of Standards and Technology l Technology Administration l Department of Commerce

Baldrige National Quality Program

Highlights

• From 2001 to 2004, repeat orders from TNC 

customers remained steady at approximately 78 percent.

• Seventy percent of the company’s top customers 

have been with TNC for more than 10 years.

• TNC increased its profitability from 36 percent in 

1998 to more than 40 percent in 2004.

• TNC has cross-trained more than 80 percent of its

workforce to perform multiple jobs across departments.
Texas Nameplate

Company, Inc.

The smallest business ever to receive a Baldrige Award,

Texas Nameplate Company, Inc. (TNC), is also the only

small business to receive the Baldrige Award twice, the first

time in 1998. Located in Dallas, Texas, TNC is a privately

held, family business that produces custom nameplates in

small and frequent orders primarily for small businesses

nationwide and abroad. These identification tags and labels

display important equipment usage and safety information

for products ranging from high-pressure valves and oil field

equipment to computers. Two years after receiving its first

Baldrige award, TNC decided to take the company to the

next level. But that did not mean growing bigger; rather it

meant wanting to get better. During the economic downturn

following the tragedy of September 11, 2001, TNC wanted

to avoid layoffs. So, as employees left over the next years, they

were not replaced. Rather, the remaining employees, down

from 66 to 39, pulled together, improved their skills, and

cross trained. By targeting specific areas for improvement,

the company increased its profitability from 36 percent to

over 40 percent, and in 2003 TNC outperformed other

companies in the industry and exceeded the performance of

comparable organizations among Industry Week’s 2003

benchmark companies. 

Building Partnerships

Relationships with customers are key to TNC’s success.

The company uses a variety of formal and informal

approaches to build and maintain relationships, including a

guarantee to deliver material on time and free of defects—or

to supply them free of charge. A variety of communication

and customer access mechanisms help these relationships

grow and thrive. They include face-to-face contact with

employees at all levels, a database of customer interactions,

and a voice mail system that ties into the company’s e-mail

system to track customer requests and concerns. Complaints

are aggregated in a database and resolved by a Corrective

Action Team.

Sustained, repeat business reflects the success of this longterm relationship building. From 2001 to 2004, repeat orders

remained steady at approximately 78 percent, and 70 percent

of the company’s top 50 customers have been buying from

TNC for more than 10 years. And, a third-party customer

survey shows that overall customer satisfaction improved

from 81 percent in 2000 to approximately 86 percent in 2003. 

The knowledge accumulated throughout these long

relationships enables the company to anticipate its customers’

long-range needs. For example, if prices in the international

market dip, TNC buys in bulk the aluminum, steel, and other

metals needed for manufacturing. Strategic buying is a major

reason that TNC’s cost of materials and related costs

declined from 17 percent of net sales in 1998 to less than 10

percent in 2004.

2004

Award Winner

National Institute of Standards and Technology l Technology Administration l Department of Commerce

Baldrige National Quality Program

Highlights

• From 2001 to 2004, repeat orders from TNC 

customers remained steady at approximately 78 percent.

• Seventy percent of the company’s top customers 

have been with TNC for more than 10 years.

• TNC increased its profitability from 36 percent in 

1998 to more than 40 percent in 2004.

• TNC has cross-trained more than 80 percent of its

workforce to perform multiple jobs across departments.