The Deming PrizeThe Deming PrizeRey Jorelle NalunatRey Jorelle Nalunat

Wynona L. SiribanWynona L. Siriban

What is the Deming Prize?What is the Deming Prize?

• Who was W. Edwards Deming?Who was W. Edwards Deming?

•History of the Deming Prize?

Who was Dr. W. Edwards Who was Dr. W. Edwards Deming?Deming?

Dr. William Edwards Deming was one Dr. William Edwards Deming was one of the world’s leaders of Quality of the world’s leaders of Quality management.management.

Had great impact on American and Had great impact on American and Japanese industries.Japanese industries.

Who was Dr. W. Edwards Who was Dr. W. Edwards Deming?Deming?

Based ideas on continuous Based ideas on continuous improvementimprovement

1900 - 19941900 - 1994

HistoryHistory

Dr. Deming was in Japan giving Dr. Deming was in Japan giving lectures on statistical process lectures on statistical process control and was recorded for control and was recorded for distribution and profit. Funds were distribution and profit. Funds were donated to JUSEdonated to JUSE

HistoryHistory

Kenichi Koyanagi, the managing director Kenichi Koyanagi, the managing director of the Japanese Union of Scientists and of the Japanese Union of Scientists and Engineers (JUSE), used those funds to Engineers (JUSE), used those funds to create the Deming prize to individuals or create the Deming prize to individuals or organizations in 1951. organizations in 1951.

HistoryHistory

The purpose of the Deming Prize was The purpose of the Deming Prize was to recognize those who excelled in to recognize those who excelled in quality control and as a way of quality control and as a way of driving quality control. It was also driving quality control. It was also established to thank Dr. Deming for established to thank Dr. Deming for his accomplishments and impact in his accomplishments and impact in the Japanese industry.the Japanese industry.

Deming PrizeDeming Prize

• PolicyPolicy• Organization and Organization and

operationsoperations• Collection and use Collection and use

of informationof information• AnalysisAnalysis

• Planning for futurePlanning for future• Education and Education and

trainingtraining• Quality assuranceQuality assurance• Quality effectsQuality effects• StandardizationStandardization• ControlControl

Concentrates on :

DifferencesDifferences

• Baldrige Award Baldrige Award concentrates concentrates more on more on customers and customers and human resource human resource

• European Quality European Quality Award more on Award more on satisfactionsatisfaction

•Deming Prize Effective planning and implementing of a firms organization and operations

Categories of the Deming Categories of the Deming prizeprize

The Deming Prize for Individuals

For individuals or groups

Given to those who have made outstanding contributions to the study of TQM or

statistical methods used for TQM, or those who have made outstanding

contributions in the dissemination of TQM

The Deming Distinguished Service Award for

Dissemination and Promotion (Overseas)

For individuals whose primary activities are outside Japan

Given to individuals who have made outstanding contributions in the

dissemination and promotion of TQM. Examination will be carried out every 3-5

years.

The Deming Application Prize

For organizations such as companies, institutes, divisions of organizations,

operational business units and headquarters office (organization, hereafter)

An annual award presented to a company that has achieved distinctive

performance improvements through the application of Companywide Quality

Control (CWQC)

Companywide Quality Control (CWQC)

• A system of activities to assure that the quality A system of activities to assure that the quality products and services required by customers products and services required by customers are economically designed, produced and are economically designed, produced and supplied while respecting the principle of supplied while respecting the principle of customercustomer– Market researchMarket research– Research and developmentResearch and development– DesignDesign– PurchasingPurchasing– ProductionProduction– Inspection and salesInspection and sales

QualificationQualification

• Who qualifiesWho qualifies• Deming Application PrizeDeming Application Prize• How to applyHow to apply• How to winHow to win

Who QualifiesWho Qualifies

• Award available to individuals and Award available to individuals and organizations, whereas others do organizations, whereas others do not (such as Baldrige only for not (such as Baldrige only for organizations)organizations)

• Deming Prize for Individuals Deming Prize for Individuals available every year.available every year.

Deming Application PrizeDeming Application Prize

• No limit to winnersNo limit to winners• Annually presented to companies Annually presented to companies

that show improvement in the field that show improvement in the field of total quality managementof total quality management

• No industry barrierNo industry barrier• Divisions of a companyDivisions of a company

How to ApplyHow to Apply

• A firm examines itself based on these A firm examines itself based on these viewpoints:viewpoints:– How well you implement TQMHow well you implement TQM– No unnecessary rules and regulationsNo unnecessary rules and regulations– Understands and used TQM and statistical Understands and used TQM and statistical

thinkingthinking– Examination of production and non-Examination of production and non-

production divisions of firm tested the same production divisions of firm tested the same wayway

How to ApplyHow to Apply

• Based on a 100 point scaleBased on a 100 point scale– Executive Session must be 70% or Executive Session must be 70% or

higherhigher– Examined Session must be 50% or Examined Session must be 50% or

higherhigher– Company Average must be 70% or Company Average must be 70% or

higherhigher

How to WinHow to Win

• The following viewpoints are used The following viewpoints are used to determine if the company should to determine if the company should receive the prize. receive the prize.

How to WinHow to Win

1.Based on clear management 1.Based on clear management leadership, management leadership, management principles, type and scope of principles, type and scope of industry, and business industry, and business environment, applicant has environment, applicant has established business objectives established business objectives that are challenging and customer that are challenging and customer oriented.oriented.

How to WinHow to Win

2. TQM must be implemented properly in 2. TQM must be implemented properly in the viewpoint 1 mentioned previously, the viewpoint 1 mentioned previously, while achieving company goals and while achieving company goals and strategies.strategies.

3. Outstanding results obtained for 3. Outstanding results obtained for business objectives and strategies as an business objectives and strategies as an outcome of viewpoint 2, in the manner outcome of viewpoint 2, in the manner stated in viewpoint 1.stated in viewpoint 1.

WinnersWinners

• More than 150 companies have won a More than 150 companies have won a Deming prize, including the 7 largest Deming prize, including the 7 largest Japanese industrial corporations.Japanese industrial corporations.

• Winners of the Deming Prize for Winners of the Deming Prize for individuals have been Japanese as of individuals have been Japanese as of 19991999

• Majority of Deming Application Prize Majority of Deming Application Prize winners also Japanese firms until the last winners also Japanese firms until the last decade.decade.

WinnersWinners

• Some companiesSome companies– Toyota Motor companyToyota Motor company– Microcomputer systemMicrocomputer system– Shimizu construction companyShimizu construction company– Kansai electric power companyKansai electric power company

• U.S. winners:U.S. winners:– AT&T Power SystemsAT&T Power Systems– Lucent Technology Power SystemsLucent Technology Power Systems

SummarySummary

The Deming Prize was created in 1951 by The Deming Prize was created in 1951 by the Japanese Union of Scientist and the Japanese Union of Scientist and Engineers. For commemorating Dr. Engineers. For commemorating Dr. Deming and recognizing those with Deming and recognizing those with outstanding quality management.outstanding quality management.

Deming Prize available for individuals and firms in any field. Scoring for winners are on a 100 point scale.

referencereference

• http://deming.eng.clemson.edu/pub/http://deming.eng.clemson.edu/pub/den/deming_prize_2000.pdfden/deming_prize_2000.pdf

• Managing Quality : An integrative Managing Quality : An integrative approach by Foster, P. 81-83approach by Foster, P. 81-83

• the management and control of quality, 4th edition, james r. evans, william m lindsay (1999)

• Operations management by William Stevenson p 418