Roadmap

To
The Deming Prize
 What we will cover
• What is the Deming • Qualifying for the
Prize? Deming Prize
– Who is Dr. Deming? – Who qualifies
• Deming Prize – Deming Application
– The Deming Prize Prize
– How to Apply
– How to win
 Who was Dr. W. Edwards
Deming?
Dr. W. E. Deming was one of the world’s
leaders of Quality management.

Had great impact on American and

Japanese industries.

Based ideas on continuous improvement

1900 - 1994
 History

Dr. Deming was in Japan giving lectures

on statistical process control and was
recorded for distribution and profit.
Funds were donated to JUSE
 History
Kenichi Koyanagi, the managing director of the
Japanese Union of Scientists and Engineers
(JUSE), used those funds to create the Deming
prize to individuals or organizations in 1951.
 History
The purpose of the Deming Prize was to
recognize those who excelled in quality
control and as a way of driving quality
control. It was also established to
thank Dr. Deming for his
accomplishments and impact in the
Japanese industry.
 Deming Prize
Concentrates on :

• Policy • Planning for future

• Education and training
• Organization and
• Quality assurance
operations
• Quality effects
• Collection and use of
• Standardization
information
• Control
• Analysis
 Qualification

• Who qualifies
• Deming Application Prize
• How to apply
• How to win
 Who Qualifies

• Award available to individuals and

organizations, whereas others do not
(such as Baldrige only for organizations)

• Deming Prize for Individuals available

every year.
 Additional information

• No limit to winners
• Annually presented to companies that
show improvement in the field of total
quality management
• No industry barrier
• Divisions of a company
 How to Apply
• A firm examines itself based on these
viewpoints:
– How well you implement TQM
– No unnecessary rules and regulations
– Understands and used TQM and statistical
thinking
– Examination of production and non-
production divisions of firm tested the
same way
 How to Apply

• Based on a 100 point scale

– Executive Session must be 70% or higher

– Examined Session must be 50% or higher
– Company Average must be 70% or higher
 How to Win

• The following viewpoints are used to

determine if the company should
receive the prize.
 How to Win

1.Based on clear management leadership,

management principles, type and scope
of industry, and business environment,
applicant has established business
objectives that are challenging and
customer oriented.
 How to Win
2. TQM must be implemented properly in the
viewpoint 1 mentioned previously, while
achieving company goals and strategies.

3. Outstanding results obtained for business

objectives and strategies as an outcome of
viewpoint 2, in the manner stated in
viewpoint 1.
 Winners
• Winners of the Deming Prize for individuals
have been Japanese as of 1999
• Majority of Deming Application Prize winners
also Japanese firms until the last decade.
• U.S. winners:
– AT&T Power Systems
– Lucent Technology Power Systems
 Summary
The Deming Prize was created in 1951 by the
Japanese Union of Scientist and Engineers. For
commemorating Dr. Deming and recognizing
those with outstanding quality management.

Deming Prize available for individuals and firms

in any field. Scoring for winners are on a 100
point scale.
 W. Edwards Deming’s 14 Points

1) Create constancy of purpose towards improvement

of product and services.
2) Adopt the new philosophy. We can no longer live
with commonly accepted levels of delays, mistakes,
defective workmanship.
3) Cease dependence on mass inspection. Require,
instead, statistical evidence that quality is built in.
4) End the practice of awarding business on the basis
of price tag.
 W. Edwards Deming’s 14 Points

5) Find problems. It is management’s job to work

continually on the system.
6) Institute modern methods of training on the job.
7) Institute modern methods of supervision of
production workers. The responsibility of foremen
must be changed from numbers to quality.
8) Drive out fear that everyone may work effectively
for the company.
 W. Edwards Deming’s 14 Points

9) Break down barriers between departments.

10) Eliminate numerical goals, posters and slogans for
the workforce asking for new levels of productivity
without providing methods.
11) Eliminate work standards that prescribe numerical
quotas.
12) Remove barriers that stand between the hourly
worker and his right to pride of workmanship.
 W. Edwards Deming’s 14 Points

13) Institute a vigorous programme of education and

retraining.
14) Create a structure in top management that will
push everyday on the above 13 points.
 DEMING PRIZE CRITERIA
 
The Examination Viewpoints (For all)

(1) Top Management Leadership, Vision,

Strategies

• Top management leadership

• Organizational vision and strategies

 DEMING PRIZE CRITERIA
 
(2) TQM Frameworks
• Organizational structure and its operations
• Daily Management
• Policy Management
• Relationship to ISO 9000 and ISO 14000
• Relationship to the other management
improvement programs
• TQM promotion and operation
 DEMING PRIZE CRITERIA
(3) Quality Assurance System

• Quality assurance system

• New product and new technology
development
• Process control
• Test, quality evaluation, and quality audits
• Activities covering the whole life cycle
• Purchasing, subcontracting, and distribution
management
 DEMING PRIZE CRITERIA
(4) Mgmt Systems for  Business Elements

• Cross-functional management and its

operations
• Quantity/Delivery Management
• Cost Management
• Environmental Management
• Safety, Hygiene, and Work Environment
Management
 DEMING PRIZE CRITERIA
(5) Human Resources Development
• Positioning of "people" in management
• Education and training
• Respect for people's dignity

(6) Effective Utilization of Information

• Positioning of "information" in management
• Information systems
• Support for analysis and decision-making
• Standardization and configuration
management
 DEMING PRIZE CRITERIA
 
(7) TQM Concepts and Values
• Quality
• Maintenance and improvement
• Respect for humanity
(8) Scientific Methods
• Understanding and utilization of
methods
• Understanding and utilization of
problem-solving methods
 DEMING PRIZE CRITERIA 

(9) Organizational Powers

• Core technology
• Speed
• Vitality
 DEMING PRIZE CRITERIA
 
(10) Contribution to Realization of
Corporate Objectives
• Customer relations
• Employee relations
• Social Relations
• Supplier relations
• Shareholder relations
• Realization of corporate mission
• Continuously securing profits
 DEMING PRIZE CRITERIA
 
The Examination Viewpoints
(For Senior Executives)
 
(1) TQM Understanding and Enthusiasm
(2) Top Management Leadership, Vision,
Strategies, and Policies
(3) Organizational Powers (Core Technology,
Speed, Vitality)
(4) Human Resources Development
(5) Corporate Social Responsibilities
Creating Culture Change:

The Roadmap to successful

Total Quality Management
 
 Step 1: The Strategic Issues
1.Pursuing Excellence
 Quality is about attitude
 Gradual Process
 Requires commitment to constant
innovation
 Reject Stereotyped beliefs
 Having the answer- but doing nothing.
 Step 1: The Strategic Issues
2. Total Quality
 Produce the best product and service possible-
through constant innovation
 Focus on maintaining the competitive edge
 Organization wide commitment to Quality
 Systematic use and application of QA, SPC and QC
 Tailoring quality drives to the organization
 Doing it right first time, every time
 Includes Customer Care, JIT, etc.
TQM is a never ending process.
 Step 1: The Strategic Issues
3. Costing Quality
 Measuring and understanding nothing
 Assess the Cost of Quality in non-manufacturing
like rework, cost of inspection, cost of prevention
 The impact of total Quality
 Making the Quality Manager redundant
 Moving from rework to prevention
 TQM is not cost-cutting
Establish the linkage between
Strategic Goals and TOTAL QUALITY
Step 2: Managing the Transition
to TQM
4. TQM is Behavioral Change
 Being Self critical
 Encourage Preventive and if required Corrective
Action
 Remember words and workshops change
nobody
 Resistance to total quality
 Be patient.
 Assess the readiness through organizational
values and culture
 Step 2: Managing the
Transition to TQM
5. Managing Cultural Change
 Choose your culture and create it through
Leading by Example
 Make your culture people-oriented
 Challenge outmoded systems & procedures
 Imbibe new values
 Make the transition comfortable
Change everything we do.
 Step 2: Managing the
Transition to TQM
6. Total Quality Leadership: Leading by
Example
 Top Management Commitment- MUST and
it should be reflected down the line
 Model the way you want others to behave
 Lead and achieve through people
 Inspire, Visualize, Enable, Encourage People
to achieve results
 Celebrate, Recognize and Share Success
 Step 2: Managing the
Transition to TQM
7.How to Avoid The Pitfalls
 Define the role of an internal change agent
 Accountability to change the culture is at the TOP
 Ownership for implementation must be shared
between internal people and outsiders
 Effectively utilize transformational leaders
 Treat Suppliers as Partners
Focus on External as well as
Internal Customers
Step 3: Features of TQM Drives
8. Meeting Customer Requirements
 Workout the Customer/Supplier Relationship
within and outside the organization
 Identify Customers Requirements
 Strengthen the relationship between
Customers and Suppliers (External as well
as Internal)
Step 3: Features of TQM Drives
9. Error Prevention
 Right first time is a standard of
performance- Error free work
 Fool proofing
 Implement improvement- don’t kill
them with talking
 Everybody is his own inspector
Step 3: Features of TQM Drives
10. Taking Preventive Action
 As an alternative to fixing things
 Remember that most problems are predictable
and many are recurring
 Develop a long-term solution
 Focus on process than structure
 Adopt Logical as well as Creative approach to
problem solving
 Taking action
 Communication and information
Step 3: Features of TQM Drives
11.
Team Building and Participation
 Achieving results through others
 Employee involvement through Theory Y Leaders
 Move from Telling Culture to Listening Culture
 Reject the ‘us and them’ attitude
 Remember that the person operating the
machine knows best about the machine.
 Institutionalize career development for
employees – Promote, Value and Reward
Horizontal as well as Vertical Career Progression
Step 3: Features of TQM Drives
12. You can’t let them loose until you have
given them the best Training you can…..
 First learn how people learn, then develop
training initiatives
 Training should also include addressing
training attitudes
 Manage the learning environment
 Line managers should reinforce TQM
Behavior in day-to-day working
 Design your own program and ensure it
meets your requirement
Step 4: Continuous Improvement
13. Readiness for Change
 Tailor made the TQM program
 Conduct feasibility study, Quality audits, and
Departmental purpose analysis
 Equal devotion from manufacturing as well
as non-manufacturing areas
 Encourage being Self-critical
 Encourage suggestions
 Publicize the effort
 Integrate TQM with other organizational
systems
Step 4: Continuous Improvement

14. Implementation Change and Review

 Define criteria for review
 Monitor the progress
 Learn from failures
 Share success and information
Summarizing the TQM Philosophy
Do’s
 Education and training
 Fool proofing
 Quality Circles
 Communication
 Automation
 Measure and Display
 Quality in all areas
 Long-term planning
Moving Towards the Philosophy
Focus on
 Organization Structure
 Horizontal Management
 Loving your people
 Cultural Change
 Quality of Working Life
 Developing Partnerships
 Leadership
 Change Management
 Customer led strategies, rather than Products