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Roadmap To The Deming Prize

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Presentation on theme: "Roadmap To The Deming Prize"— Presentation transcript:

1 Roadmap To The Deming Prize
Title page of the Deming Prize Power Point presentation by Yu Qi Eric Su Roadmap To The Deming Prize

2 What we will cover What is the Deming Prize? Deming Prize
Who is Dr. Deming? Deming Prize The Deming Prize Qualifying for the Deming Prize Who qualifies Deming Application Prize How to Apply How to win Outlined foreshadowing of the topics to be covered

3 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 Deming was one of the worlds leaders and experts in quality control. He had a strong impact on the American and Japanese industries. He was sent to Japan after World War II to work on a population census. His impact on Japanese industries were so strong that his lectures are still being used to train employees.

4 History Dr. Deming was in Japan giving lectures
on statistical process control and was recorded for distribution and profit. Funds were donated to JUSE Dr Deming was in Japan giving a eight day lecture on quality control to mangers and other employees of Japanese organizations. The lectures were put into print and sold. Those profits made from the notes of the lecture were donated to JUSE from Dr. Deming

5 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. Koyanagi use those funds from Dr. Deming to establish the Deming Prize for quality control as a way of thanking Dr. Deming

6 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. The Deming Prize was established as appreciation to all Dr. Deming has done for the Japanese industry and to drive quality control. By having a high standard prize out there for recognition of your work in quality control, it would bring out competition in companies to try to receive the award and as well and improving quality.

7 Deming Prize Concentrates on : Policy Organization and operations
Planning for future Education and training Quality assurance Quality effects Standardization Control Policy Organization and operations Collection and use of information Analysis These are categories of the Deming Prize and what is believed as necessary for receiving the award. This information was obtained by Managing Quality : An integrative approach by Foster, P Purpose: What the purpose and mission of the organization is; short and long term. Maintain consistency and follow through Organizations and operations: How smoothly an organization controls communication, effective use of employees, and clear authority Collecting and using information Information flow, processing, and documentation Analysis Being able to find problems within, and how the correct such problems. And again, docmentation. Planning for future Long term plans of improvement that were looked over carefully and planned for the current situations of the firm Education and training Looks at an organization’s way of dealing with the training of employees. What plans are made and how it is implemented Quality Assurance How products are services are designed. How is the quality of the good or service and the safety. Will consumers be content? Quality effects Documentation of how the plans for quality improvement has effected the firm. Standardization Setting a standard and how standards are controlled and monitored Control How they use uality control, what they use, and level of control at the firm

8 Qualification Who qualifies Deming Application Prize How to apply
How to win Outline of the qualifications for the Deming prize

9 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. Individuals are able to received the Deming Prize unlike other quality awards such as the Badlrige Award. The deadline for application is July 31st every year for the individual Deming Prizes. Prizes are given to those individuals with great accomplishments in Total Quality Management.

10 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 The Deming Application Prize is the prize that is given to companies that have accomplished in improving itself through TQM. This award is also given on an annual basis. Every industry type is able to qualify. Public or private firms, no matter the size is able to qualify. The Deming Application Prize can also be given to a division of a company if that division works as an entity of its own.

11 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 Examination viewpoints for Deming Application Prize 1. How effectively is total quality management implemented in the firm. How is the quality of its products and and services? 2. The firm should not have unnecessary rules or regulations. It would be a waste of time and effort. The firm should concentrate on TQM for most effectiveness. 3. Using TQM is what would result in more points for the prize rather than how fancy or high tech the company’s statistical methods. 4. The examiner should be looking at the production and non-production parts of the firm the same way. How effective it is, does it use TQM, and no waste of time and effort.

12 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 Examiner conducts an examination based on those viewpoints on a 100 point scale. The company must score 70% or higher for it’s executive division, 50% for other divisions, and the company average must be 70%.

13 How to Win The following viewpoints are used to determine if the company should receive the prize. The viewpoints that are contained in the next slide(s) are obtained directly from JUSE. JUSE, with consent, allowed terms of winning the Deming Prize to be posted online at

14 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. The examiner uses these viewpoints to decide whether the firm deserves the Deming prize. The first viewpoint is that the company has good leadership and management Also for the company type, size, and current situation, the applicant company has used methods of statistical control and TQM that are more than ordinary and serve the customers well.

15 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. 2. Total quality management be implemented properly to achieve the mission of the company and using strategic methods 3. Results from #2 be impressive enough and also in the manners discussed in #1

16 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 Since the establishment of the Deming Prize by the JUSE, winners have been predominantly Japanese individuals and firms. Actually, from data as of 1999, Deming Individual Prize winners are Japanese. Only until recently has the Deming Application Prize been awarded to U.S. firms. Deming wanted U.S. firms to improve in quality control to challenge the Japanese industry.

17 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. Summary of major points.

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

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

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

21 W. Edwards Deming’s 14 Points
13) Institute a vigorous programme of education and retraining. Create a structure in top management that will push everyday on the above 13 points. 14)

22 DEMING PRIZE CRITERIA The Examination Viewpoints (For all)
Top Management Leadership, Vision, Strategies Top management leadership Organizational vision and strategies

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

24 DEMING PRIZE CRITERIA (3) 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

25 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

26 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

27 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

28 DEMING PRIZE CRITERIA (9) Organizational Powers Core technology Speed

29 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

30 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

31 Creating Culture Change: The Roadmap to successful Total Quality Management  

32 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.

33 Step 1: The Strategic Issues
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.

34 Step 1: The Strategic Issues
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

35 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

36 Step 2: Managing the Transition to TQM
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.

37 Step 2: Managing the Transition to TQM
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

38 Step 2: Managing the Transition to TQM
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

39 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)

40 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

41 Step 3: Features of TQM Drives
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

42 Step 3: Features of TQM Drives
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

43 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

44 Step 4: Continuous Improvement
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

45 Step 4: Continuous Improvement
Implementation Change and Review Define criteria for review Monitor the progress Learn from failures Share success and information

46 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

47 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

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