The Comparison of the Deming Prize and the Baldrige Award - Handouts -

The Deming Prize The Deming Prize is Japans 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 worlds 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.

Baldrige Award The Baldrige Award was established in 1987 to promote quality awareness, understand the requirements for quality excellence, and share information about successful 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 of performance receive a quality prize. Since its foundation, there are only five companies who received this prize. According to its principles, the role of quality data collection and analysis as the basis for managerial decisions is paramount. Furthermore, quality efforts should not concentrate only on the elimination of defects but also encompass creative activities that will influence customer satisfaction. Among Baldrige winners, there are no service companies.

Check list of application for Malcom Baldrige National Quality Award

Maximum scorePercentage of sub-total1.0 Leadership15%1.1 Leadership of top-ranking managers 501.2 Policy 301.3 Management control system and quality improvement process 301.4 Allocation and utilization of resources 201.5 Responsibility to society 101.6 Unique and creative leadership technique 102.0 Information and analysis7.50%2.1 Utilization of analysis technique or system 152.2 utilization of information about product quality and servicing quality 102.3 Customer data and analysis 202.4 Analysis of quality and data of subcontractor 102.5 Analysis of quality and data of distributor or sales agent 102.6 Employee-related data and analysis 52.7 Unique and innovative analysis of information 5

Check list of application for Malcom Baldrige National Quality Award, 2

3.0 Quality of strategy planning7.50%3.1 Operation target and strategy target 203.2 Function of planning 203.3 Quality improvement plan 303.4 Unique and innovative planning for strategy 54.0 Utilization of human resources15%4.1 Control and operation 304.2 Quality-consciousness and participation of employees 504.3 Training and education concerning quality 304.4 Personnel assessment, motivation, award system 304.5 Unique and innovative strategy concerning utilization of human resource 10

Check list of application for Malcom Baldrige National Quality Award, 3

5.0 Quality assurance of product and servicing15%5.1 Reflection of customers opinion on product and servicing 205.2 Development of new product and new servicing 205.3 Design of new product and new servicing 305.4 measurement, standardization, data system 105.5 Engineering 105.6 Audit 155.7 Recording 105.8 Safety, health and sanitation, environment 105.9 Assurance/effectiveness 155.10 Unique and innovative approach to quality assurance of product and servicing 10

Check list of application for Malcom Baldrige National Quality Award, 4

6.0 Result of quality assurance of product and servicing 10%6.1 Reliability and achievement of product and servicing 256.2 Reduction of scrap, rework, rejection concerning product and servicing 206.3 Reduction of complaint and claim suit concerning quality 256.4 Reduction of assurance- or site-related assistance operation 206.5 Innovative index and economic gain for quality improvement 10 7.0 Customer satisfaction 30%7.1 Quality of product and servicing from customers viewpoint 1007.2 Comparison of competitiveness of product and servicing 507.3 Customer servicing and countermeasure for complaint 757.4 Assurance from customers viewpoint 50 7.5 Unique (or innovative) technique to grasp customer satisfaction 25 Total 1000100%

Eight Critical FactorsA plan to keep improving all operations continuouslyA system for measuring these improvements accuratelyA strategic plan based on benchmarks that compare the companys performance with the worlds bestA close partnership with suppliers and customers that feeds improvements back into operationsA deep understanding of the customers so that their wants can be translated into productsA long-lasting relationship with customers, going beyond the delivery of the product to include sales, service, and ease of maintenanceA focus on preventing mistakes rather than merely correcting themA commitment to improving quality that runs from the top of the organization to the bottom

Comparison of the Deming Prize and Baldrige Award

TopicBaldrige AwardDeming PrizeDefinition of Qualitycustomer-driven quality it views quality as defined by the customerconformance to specifications it views quality as defined by the producersPrimary Focuscustomer satisfaction and qualitystatistical quality controlOverall Approachquality of managementmanagement of qualityPurposepromote competitiveness through total quality managementpromote quality assurance through statistical techniquesTypes of Organizationmanufacturing, service and small businessessentially private or public manufacturingOrientation60% result, 40% process60% process, 40% resultsScoring Weightdifferent weight for each criteriaequal weight in 10 criteriaConsiderationless concernconcern in productivity, delivery, safety, and environmentInformation Managementheavily concernless concernContinuous of the awardN/AJapan Quality Control MedalWinnersMaximum of two per categoryAll firms meeting standardScopeU.S. firms onlyFirms for any countryApplications$2500 and 75 pages packet1000 pages and one year working with consultant from the union of Japanese Scientist & EngineersGrading timesix monthsone yearFirst Award19871951SponsorNational Institutes Standards and TechnologyUnion of Japanese Scientists and Engineers

Comparison of the Deming Prize and Baldrige Award, 2

TopicBaldrige AwardDeming PrizeGrading Criteria1. Leadership1. Policy and Objectives of top-ranking managers pursued for management quality & QC policy method of establishing quality management control system & quality improvement process justifiability and consistency of policies allocation and utilization of resources review of policies and the result achieved responsibility to society relationship between policies and long term & short term planning unique and creative leadership technique

Comparison of the Deming Prize and Baldrige Award, 3

TopicBaldrige AwardDeming PrizeGrading Criteria2. Information and Analysis2. Organization and its Management utilization of analysis technique or system explicitness of the scopes of authority and responsibility utilization of information about product quality and servicing quality interdivisional cooperation customer data and analysis committees and their activities analysis of quality and data of subcontractor and distributor or sales agent utilization of staff utilization of QC Circle activities QC diagnosis

Comparison of the Deming Prize and Baldrige Award, 4

TopicBaldrige AwardDeming PrizeGrading Criteria3. Quality of Strategy Planning3. Education and dissemination operation target and strategy target education program and results function of planning degrees of understanding of QC quality improvement plan teaching of statistical concepts and methods unique and innovative planning for strategy grasp of the effectiveness of QC QC circle activities system of suggesting ways of improvements and its actual conditions

Comparison of the Deming Prize and Baldrige Award, 5

TopicBaldrige AwardDeming PrizeGrading Criteria4. Utilization of Human Resource4. Collection, Dissemination and Use of Information on Quality control and operation collection of external information quality consciousness and participation of employees transmission of information between divisions training and education concerning quality speed of information transmission personnel assessment, motivation, award system data processing, statistical analysis of information and utilization of the results innovative strategy concerning utilization of human resource

Comparison of the Deming Prize and Baldrige Award, 6

TopicBaldrige AwardDeming PrizeGrading Criteria5. Quality Assurance of Product and Servicing5. Analysis reflection of customers opinion on product and servicing selection of key problems and themes design and development of new product and new servicing propriety of the analytical approach measurement, standardization, data system utilization of statistical methods engineering, audit, recording linkage with proper technology safety, health and sanitation, ,environment quality analysis, process analysis approach to quality assurance of product and servicing utilization of analytical results assertiveness of improvement suggestions

Comparison of the Deming Prize and Baldrige Award, 7

TopicBaldrige AwardDeming PrizeGrading Criteria6. Result of Quality Assurance of Product and Servicing6. Standardization reliability and achievement of product and servicing systematization of standards reduction of scrap, rework, rejection, concerning product and servicing method of establishing, revising, and abolishing standards and their outcome reduction of complaint and claim suit concerning quality utilization of statistical methods innovative index and economic gain for quality improvement contents of the standards accumulation of technology utilization of standards

Comparison of the Deming Prize and Baldrige Award, 8

TopicBaldrige AwardDeming PrizeGrading Criteria7. Customer Satisfaction7. Control quality of product and servicing from customers viewpoint system for the control of quality and related matters comparison of competitiveness of product and servicing control items and control points customer servicing and countermeasure for complaint utilization of such statistical control methods as control charts and other statistical concepts assurance from customers viewpoint contribution to performance of QC circle technique to grasp customer satisfaction actual conditions of control activities

Comparison of the Deming Prize and Baldrige Award, 9

Deming Prize8. Quality Assurance procedure for the development of new products and services safety and immunity from product liability customer satisfaction process design, analysis, control and improvement process capability instrumentation, gauging, testing and inspecting equipment maintenance and control of subcontracting, purchasing, and services

Deming Prize9. Results measurement of results substantive results in quality, services, delivery time, cost, profits, safety environments intangible results measures for overcoming defects10. Planning for the Future grasp of the present state of affairs and the concreteness of the plan measures for overcoming defects plans for further advances linkage with the long term plans

Result Increased Customer SatisfactionLower CostsReduced Product Development TimeIncreased Employee SatisfactionHigher Quality ProductsInnovationIncreased Productivity

Sue Rohan, David LuthyEducation Pilot ProgramOverview

Sue Rohan, David LuthyEducation Pilot ProgramOverview