Roadmap To The Deming Prize

What we will cover

What is the Deming Prize?
Who is Dr. Deming?

Qualifying for the Deming Prize

Who qualifies Deming Application Prize How to Apply How to win

Deming Prize
The Deming Prize

Who was Dr. W. Edwards Deming?

Dr. W. E. Deming was one of the worlds 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 :
Planning for future Policy 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 nonproduction 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 Demings 14 Points

1) Create constancy of purpose towards improvement

of product and services.

2) Adopt the new philosophy. We can no longer live 3) Cease dependence on mass inspection. Require,

with commonly accepted levels of delays, mistakes, defective workmanship.

instead, statistical evidence that quality is built in.

of price tag.

4) End the practice of awarding business on the basis

W. Edwards Demings 14 Points

5) Find problems. It is managements 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. for the company.

8) Drive out fear that everyone may work effectively

W. Edwards Demings 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. quotas.

11) Eliminate work standards that prescribe numerical

12) Remove barriers that stand between the hourly

worker and his right to pride of workmanship.

W. Edwards Demings 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 methods Understanding and utilization problem-solving methods

of of

DEMING PRIZE CRITERIA

(9) Organizational Powers
Core technology Speed Vitality

DEMING PRIZE CRITERIA

(10) Contribution to Corporate Objectives

Realization

of

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 nonmanufacturing 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- dont 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 cant 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

Dos
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