tq award models ed

8/13/2019 TQ Award Models Ed.

http://slidepdf.com/reader/full/tq-award-models-ed 1/26

Total Quality Award Criteria



THE DEMING PRIZE

The Deming Prize is Japan’s national quality award for industry. It was established in 1951 by the Japanese

Union of Scientists and engineers (JUSE) and it was named after W. Edwards Deming. He brought

statistical quality control methodology to Japan after W.W.II.

The Deming Prize is the world’s oldest and most prestigious of such awards. Its principles are a national

competition to seek out and commend those organizations making the greatest strides each year in quality,or more specifically, TQC.

The prize has three award categories. They are Individual person, the Deming Application Prizes, and the

Quality Control Award for factory. The Deming Application prizes are awarded to private or public

organizations and are subdivided into small enterprises, divisions of large corporations, and overseas

companies.

There are 143 companies who won the prize. Among them, only once has the Deming Prize been awarded

to a non-Japanese company: Florida Power and Light in 1989.



CHECKLIST OF APPLICATION FOR DEMING AWARD

Item Particulars

1. Policy1. Policies pursued for management quality, and quality control

2. Method of establishing policies

3. Justifiability and consistency of policies

4. Utilization of statistical methods

5. Transmission and diffusion of policies

6. Review of policies and the results achieved

7. Relationship between policies and long- and short-term

planning

2. Organization and its

Management

1. Explicitness of the scopes of authority and responsibility

2. Appropriateness of delegations of authority3. Interdivisional cooperation

4. Committees and their activities

5. Utilization of staff

6. Utilization of QC Circle activities

7. Quality control diagnosis



Item Particulars

3. Education and

Dissemination

1. Education programs and results

2. Quality- and control-consciousness, degrees of understanding of

quality control

3. Teaching of statistical concepts and methods, and the extent of their

dissemination

4. Grasp of the effectiveness of quality control

5. Education of related company (particularly those in the same group,

sub-contractors, consignees, and distributors)

6. QC circle activities

7. System of suggesting ways of improvements and its actual conditions

4. Collection,

Dissemination and Use of

Information of Quality

1. Collection of external information

2. Transmission of information between divisions

3. Speed of information transmission (use of computers)

4. Data processing statistical analysis of information and utilization of the

results



Item Particulars

5. Analysis 1. Selection of key problems and themes

2. Propriety of the analytical approach


4. Linkage with proper technology

5. Quality analysis, process analysis

6. Utilization of analytical results

7. Assertiveness of improvement suggestions

6. Standardization 1. Systematization of standards

2. Method of establishing, revising, and abolishing standards

3. Outcome of the establishment, revision, or abolition of standards

4. Contents of the standards


6. Accumulation of technology

7. Utilization of standards



Item Particulars

7. Control 1. Systems for the control of quality and such related matters as cost and quantity

2. Control items and control points

3. Utilization of such statistical control methods as control charts and other statistical

concepts

4. Contribution to performance of QC circle activities

5. Actual conditions of control activities

6. State of matters under control

8. Quality Assurance1. Procedure for the development of new products and services (analysis and upgrading

of quality, checking of design, reliability, and other properties)

2. Safety and immunity from product liability

3. Customer satisfaction

4. Process design, process analysis, and process control and improvement

5. Process capability

6. Instrumentation, gauging, testing, and inspecting

7. Equipment maintenance, and control of subcontracting, purchasing, and services

8. Quality assurance system and its audit


10. Evaluation and audit of quality

11. Actual state of quality assurance



Item Particulars

9. Results1. Measurements of results

2. Substantive results in quality, services, delivery time, cost,

profits, safety, environment, etc.

3. Intangible results

4. Measures for overcoming defects

10. Planning for the

Future1. Grasp of the present state of affairs and the concreteness of the

plan

2. Measures for overcoming defects

3. Plans for further advances

4. Linkage with the long-term plans



THE BALDRIGE AWARD

The Baldrige Award was established in 1987 to promote quality awareness,understand the requirements for quality excellence, and share information aboutsuccessful quality strategies and benefits.

There are three eligibility categories: manufacturing, services, and small firms.Unlike the Deming Prize, public or not-for-profit organizations are not qualified.

Also, there is no category in which all applicants that satisfy a given level ofperformance receive a quality prize.

According to its principles, the role of quality data collection and analysis as thebasis for managerial decisions is paramount.

Furthermore, quality efforts should not concentrate only on the elimination ofdefects but also encompass creative activities that will influence customersatisfaction. Among Baldrige winners, there are no service companies.



THE MBNQA FRAMEWORK

Senior

Executive

Leadership

GOALS

•Customer

satisfaction•Customer

satisfaction relative

to competitors

•Market share gain

•Customer retention

MEASURES OF

PROGRESS

•Product and service

quality

•Productivity

improvement

•Supplier quality

•Waste reduction/

elimination

Measurement

of ProcessQuality

Human

Resource

Development

andManagement

Strategic

Quality

Planning

Information

and Analysis

Customer

Focus and

Satisfaction

Quality and

Operational

Results

DRIVER



Maximum score Percentage of

sub-total

1. Leadership 150

1.1 Leadership of top-ranking managers 50

1.2 Policy 30

1.3 Management control system and quality improvement process 30

1.4 Allocation and utilization of resources 20

1.5 Responsibility to society 10

1.6 Unique and creative leadership technique 10

15%

2. Information and analysis 75

2.1 Utilization of analysis technique or system 15

2.2 utilization of information about product quality and servicing quality 10

2.3 Customer data and analysis 20

2.4 Analysis of quality and data of subcontractor 10

2.5 Analysis of quality and data of distributor or sales agent 10

2.6 Employee-related data and analysis 52.7 Unique and innovative analysis of information 5

7.5%

3. Quality of strategy planning 75

3.1 Operation target and strategy target 20

3.2 Function of planning 20

3.3 Quality improvement plan 30

3.4 Unique and innovative planning for strategy 5

7.5%

CHECK LIST OF APPLICATION FOR MBNQA



Maximum score Percentage

of sub-total

4. Utilization of human resources 150

4.1 Control and operation 304.2 Quality-consciousness and participation of employees 50

4.3 Training and education concerning quality 30

4.4 Personnel assessment, motivation, award system 30

4.5 Unique and innovative strategy concerning utilization of human resource

10

15%

5. QA of product and servicing / Management of Process Quality 150

5.1 Reflection of customer’s opinion on product and servicing 20

5.2 Development of new product and new servicing 20

5.3 Design of new product and new servicing 30

5.4 measurement, standardization, data system 10

5.5 Engineering 10

5.6 Audit 15

5.7 Recording 10

5.8 Safety, health and sanitation, environment 10

5.9 Assurance/effectiveness 15

5.10 Unique and innovative approach to quality assurance of product and

servicing 10

15%



Maximum score Percentage

of sub-total

6. Result of QA of product and servicing /Quality & Operational results 100

6.1 Reliability and achievement of product and servicing 25

6.2 Reduction of scrap, rework, rejection concerning product and servicing 20

6.3 Reduction of complaint and claim suit concerning quality 25

6.4 Reduction of assurance- or site-related assistance operation 20

6.5 Innovative index and economic gain for quality improvement 10

10%

7. Customer satisfaction 300

7.1 Quality of product and servicing from customer’s viewpoint 100

7.2 Comparison of competitiveness of product and servicing 50

7.3 Customer servicing and countermeasure for complaint 75

7.4 Assurance from customer’s viewpoint 50

7.5 Unique (or innovative) technique to grasp customer satisfaction 25

30%

Total 1000 100%



EIGHT CRITICAL FACTORS FOR MBNQA AWARD

A plan to keep improving all operations continuously

A system for measuring these improvements accurately

A strategic plan based on benchmarks that compare the company’s performance with the world’s

best

A close partnership with suppliers and customers that feeds improvements back into operations

A deep understanding of the customers so that their wants can be translated into products

A long-lasting relationship with customers, going beyond the delivery of the product to include

sales, service, and ease of maintenance

A focus on preventing mistakes rather than merely correcting them

A commitment to improving quality that runs from the top of the organization to the bottom



FIRST LEVEL CATEGORIES OF BALDRIGE AND DEMING AWARDS

Baldrige Deming

1. Leadership 1. Policy

2. Information and analysis 2. Organization and management

3. Strategic Quality Planning 3. Education and dissemination

4. HRD and management 4. Collection, dissemination and use ofinformation on quality

5. Management of process quality 5. Analysis

6. Quality and operations results 6. Standardization

7. Customer focus and satisfaction 7. Control

8. Quality Assurance

9. Results

10. Planning for future



Comparison of the Deming Prize and Baldrige Award

Topic Baldrige Award Deming Prize

Definition of Quality “customer -driven quality” it views

quality as defined by the customer

“conformance to specifications” it views quality

as defined by the producers

Primary Focus customer satisfaction and quality statistical quality control

Overall Approach quality of management management of quality

Purpose promote competitiveness through total

quality management

promote quality assurance through statistical

techniques

Types of Organization manufacturing, service and small

business

essentially private or public manufacturing

Orientation 60% result, 40% process 60% process, 40% results

Scoring Weight different weight for each criteria equal weight in 10 criteria

Consideration less concern concern in productivity, delivery, safety, and

environment

Information Management heavily concern less concern

Continuous of the award N/A Japan Quality Control Medal

Winners Maximum of two per category All firms meeting standard

Scope U.S. firms only Firms for any country

Applications $2500 and 75 pages packet 1000 pages and one year working with consultant

from the union of Japanese Scientist & Engineers

Grading time six months one year

First Award 1987 1951



THE JAPAN QUALITY MEDAL ( JQM)

• The Japan Quality Medal was created to commemorate the first International Conference on Quality

Control (ICQC), held in October 1969 in Tokyo, and to maintain and upgrade the spirit of the

conference long into the future. With the purpose of further developing the world of quality control,

the Japan Quality Medal was established with a fund from surplus conference revenues.

• An organization may apply for the Japan Quality Medal three years or more (including the award

year) after it has received the Deming Application Prize or the Quality Control Award for Operations

Business Units. When it is recognized that an applicant's implementation of TQM has improved

substantially beyond the level at the time it won the Deming Application Prize, the organization is

awarded the Japan Quality Medal.

• Winners of the Japan Quality Medal may repeatedly apply for the medal as long as they wait three

years or more (including the award year) after winning. Therefore, for those companies or divisions

that have been practicing TQM for a long time, receiving the Japan Quality Medal is the highest

honor.



ELIGIBILITY

The Japan Quality Medal is an annual award presented to an organization such

as a company, an institute, a division of a company and a headquarters

office (organization, hereafter) that received the Deming Application Prize

(including the Deming Application Prize for Small Companies , the

Deming Application Prize for Divisions and the Quality Control Award for

Operations Business Units) three or more years ago (counting January to

December of the award year as one year), that has continuously applied

TQM to priority issues and has been achieving its objectives steadily and

effectively in a changing business environment.



SPECIFIC CRITERIA

Customer-oriented business objectives and strategies are

established in a positive manner according to the management

philosophy, type of industry, business scale, and business

environment with the clear management belief.

TQM has been implemented properly to achieve business

objectives and strategies as mentioned Item a) above.

The business objectives and strategies in the Item a) above have

been achieving effects as an outcome of the Item b) above.



FOCUS POINTS OF THE EXAMINATION PROCESS

How the applicant has continuously applied TQM in a prior manner.

If the company has new TQM activities that impact the way it manages its business,

it is encouraged to include such activities - even if they are just at the trial stage - in

the examination. Examples of these activities include quality creation, employee

satisfaction improvement, environmental initiatives and international and social

contributions. Such activities, however, are not required for the examination. If the

applicant company has them and chooses to include them, then they become

subjects for evaluation.

A company or a division of a company that wins the Japan Quality Medal (the

winning company hereafter) is presented with the Certificate of Merit and the Japan

Quality Medal. The examination for the Japan Quality Medal is conducted by the

Deming Application Prize Subcommittee (the subcommittee hereafter) and the

decision of award is made by the Deming Prize Committee.



THE EUROPEAN QUALITY AWARD

The European Quality award, launched by the European Foundation for

Quality Management (EFQM), gives a fair idea as to the assessment of a

company’s operations.

The assessment model recognizes that processes are the means by which acompany or organization harnesses the talents of its people to produce

results which are actually enablers to produce business results.

The model also demonstrates that customer satisfaction, employee

satisfaction, and impact on society are accomplished through leadership

driven policy and strategy, human resources management, resources and

processes.



L E A D E R S H I P

PEOPLE MANAGEMENT

P R O C E S S E S

B U S I N E S S R E S U L T S

POLICY AND STRATEGY

RESOURCES IMPACT ON SOCIETY

CUSTOMER SATISFACTION

PEOPLE SATISFACTION



RAJIV GANDHI NATIONAL QUALITY AWARD

Instituted by BIS in 1991 in both manufacturing and service organizations

in India to give recognition to those who are considered to be the

leaders of quality movement in India.

Five awards are given as follows:

• Large scale manufacturing organization

• Small scale manufacturing organization

• Large scale service sector organization

• Small scale service sector organization

• Best of all



ASSESSMENT CRITERIA

FOR LARGE ORGANIZATIONS

LEADERSHIP

POLICIES, OBJECTIVES AND STRATEGIES

HUMAN RESOURCE MANAGEMENT

RESOURCES

PROCESSES

CUSTOMER FOCUSSED RESULTS

EMPLOYEES’ SATISFACTION

IMPACT ON ENVIRONMENT AND SOCIETY

BUSINESS RESULTS

FOR SMALL SCALE ORGANIZATIONS

LEADERSHIP

HUMAN RESOURCE MANAGEMENT

PROCESSES

CUSTOMER FOCUSSED RESULTS

IMPACT ON ENVIRONMENT AND SOCIETYAND

BUSINESS RESULTS



LEADERSHIP

PEOPLE

POLICY &STRATEGY

PARTNERSHIPS AND

RESOURCES

PROCESSES

SOCIETY RESULTS

CUSTOMER RESULTS

PEOPLE RESULTS

KEY

PERFORMANCE

RESULTS

ENABLERS RESULTS

INNOVATION AND LEARNING

THE EXCELLENCE MODEL : THE CII MODEL

The Model which recognises there are many approaches to achieving sustainable excellence

in all aspects of performance is based on the premise that:

Excellent r esul ts with r espect to Performance, Customers, People and Society are achieved thr ough

Leadership driving Poli cy and Strategy, People, Partnerships and Resour ces and Processes.



THE CII MODEL

• The Model’s nine boxes, represent the criteria against which toassess an organization’s progress towards excellence. Each of thenine criteria has a definition, which explains the high level meaningof that criterion.

• To develop the high level meaning further each criterion issupported by a number of sub criteria. Sub- criteria pose a numberof questions that should be considered in the course of anassessment.

•Finally below each sub criterion are lists of guidance points. Use ofthese guidance points are not mandatory nor are they exhaustive lists

but are intended to further exemplify the meaning of the sub-criteria.

tq award models ed

Documents