Malcolm Baldrige National Quality Award
2003 Award Recipient, Small Business Category

Stoner Inc.

• Stoner’s sales have increased 400 percent since 1990.
• Manufacturing productivity has increased 150 percent since 1991.
• Stoner has had steady increases in employee satisfaction and has exceeded best-in-class benchmarks.
• Since 2000, Stoner has reduced the amount of toxic chemicals used by 31 percent.
  
  

Stoner Inc.

Type of Work: Stoner is a small, privately owned manufacturer of more than 300 specialized cleaners, lubricants, and coatings, which include car care and auto detailing products, mold release agents, and specialty cleaners for electronics and other critical components. Products are sold to consumers as well as businesses in aerosol cans and in bulk liquid containers ranging from one to 275 gallons. Stoner is the smallest business to ever receive a Baldrige Award.

Workforce: 45 full-time and five part-time employees
Location: Quarryville, Pa.

Quality and Performance Results:

• Stoner’s sales have increased 400 percent since 1990, compared to the growth in the U.S. gross domestic product of 63 percent for the same period. Retail sales have increased from zero in 1996 to 20 percent of company sales in 2003. Internet sales through company web site moreshine.com have increased 1,000 percent from 1999 to 2003.

• Stoner’s 39 percent return on assets exceeds the industry average by 29 percent and its best competitor by 14 percent.

• Since the introduction of its glass cleaner, “Invisible Glass,” Stoner has increased its automotive market share for this product from 5 percent in June 2002 to 29 percent in October 2003, gaining more than 15,000 retail outlets.

• Manufacturing productivity has increased 150 percent since 1991 and weekly average output of aerosol can products has increased 33 percent from 1998 to 2003.

• Stoner has sustained consistent profitability which has grown along with sales, fueling the company’s improvement initiatives and growth.

• Stoner has had steady increases in employee satisfaction and has exceeded best-in-class benchmarks. For example,
  • Stoner’s overall morale index has increased from 64.6 percent in January 2002 to 74.5 percent in July 2003, exceeding the benchmark of 60.5 percent.
  • Stoner’s overall favorable percentage of satisfied employees has increased from 72.8 percent in January 2002 to 79.5 percent in July 2003, exceeding the benchmark of 64.8 percent.


• An employee survey prepared by the Hogan Center for Performance Excellence compares the results of Stoner employees with a comparable group of employees in other companies, including previous Baldrige Award winners and winners of the Texas Award for Performance Excellence. The results show that Stoner scored in the top 10 percent of companies surveyed. For example, Stoner employees are more satisfied with the content and quality of training received (83 percent vs. 72 percent); believe their company provides high quality products and services (98 percent vs. 91 percent); believe that management views quality as at least as important as getting the work out (94 percent vs. 71 percent); and believe that their customers would rate their company as one of the best to do business with (96 percent vs. 90 percent).



• Since 2000, Stoner has won three times as many customers as it has lost, and, over the past five years, has retained more than 98 percent of its top customers, those accounting for over 60 percent of business.

• On a national industry survey, Stoner ranks first in satisfaction on four of the five factors most important to its customers—quality, delivery, service, and value. It is in the top quartile for the fifth factor, price.

• Since 2000, Stoner has reduced the amount of toxic chemicals used by 31 percent in an effort to achieve greater environmental compatibility, and the use of more environmentally friendly water-based formulations has increased by 74 percent.

• To reduce cost and increase customer satisfaction, Stoner implemented an Enterprise Resource Planning system. As a result, 100 percent of orders are shipped on the same day they are received and the number of shipping errors has been reduced to less than 0.05 percent.

Processes

• Stoner’s Advisory Board, which includes people outside of the company, provides direction and focus to its strategic planning process and advice on priority improvements; helps evaluate risk, assess leadership effectiveness, and oversee financial and ethical governance.

• To listen to their customers and determine their key requirements, senior leaders meet with 100 customers per year and sales team members speak by phone with more than 1,000 customers each week.

• Before starting their job, every new employee completes a two-week orientation program. In addition to ethics and safety training, new employees spend one day shadowing every job in the company including spending time with the company president.

• An internal scorecard called “Stoner 60” identifies 60 key measurements and objectives with targets for one, three, and five years, linking future goals, key business milestones, and long-term action plans.

• To enhance their ability to resolve customer questions and complaints promptly, team members are empowered to spend up to $1,000 without supervisor approval. All Stoner products carry a 100 percent money back guarantee.

• Key 1, an integrated database, provides one system for collecting, analyzing, and deploying data for decision making. It also helps spot emerging trends that may require corrective action or reallocation of resources.

Leadership/Social Responsibility

• Stoner employees take pride in the company’s ethical business culture. Eighty- seven percent of employees believe that fellow workers understand and follow ethical principles, while 91 percent believe that the company leaders understand and follow ethical principles.

• Annually, Stoner commits $5,000 to fully fund the Junior Achievement program in the local elementary school, and $5,000 to sponsor the local art museum. In addition, Stoner employees donate more than 1,000 volunteer hours to local organizations.

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Created: 11/25/03
Updated: September 17, 2004
Contact: inquiries@nist.gov