The Deming Prize

The Deming Prize “A Japanese quality award for individuals and groups that have contributed to the field of quality control.” Foster, “Managing Quality, An Integrative Approach”

Deming Prize W. Edwards Deming Establishment and focus Sections and categories Why you should use this tool Real world example Exercise First part of discussion will be who created the Deming prize and the guy they named it after, W. Edwards Deming. Next we will discuss the Deming Prize’s sections and categories to give you an idea of Japanese quality improvement. Then we will finish up with with why you would apply for this prize and some exercises.

W. Edwards Deming Quality improvement in Japan Use of statistics to improve quality Japanese union of scientists & engineers W. Edwards Deming had a lot to do with Japan’s long time commitment to continuously improve quality. He had helped Japan to use statistics to improve their quality until their quality was the best in the world. To thank and commemorate him the Japanese Union of Scientists & Engineers established a prize to distribute to companies who worked on continuous improvement and named it after him.

Little Tidbits of Info The Deming prize is based mainly on the process rather than their business results There is not a specific number of awards given out per year The presentation of awards is a huge deal in Japan, it is televised and everything Here is a little miscellaneous information dealing with the Deming Prize.

Different Sections The Deming prize for individuals The Deming application prize The quality control award for factories The Deming medal The prize for individuals are given to a person who has contributed to quality control through their research or practices. The Application prize is given to a company or division of who has shown an improvement in their application through their statistical methods. The Award for factories is given to the factories who can show improvement in their TQM. The Deming Medal is given out to those who have already won the award so they will continue to apply for the prize.

Who Is Eligible? Originally just awarded to Japanese Non-Japanese companies started to show interest in the prize Deming application prize for overseas Since the award began to thank Japanese companies for their strong effort in quality improvement it was not open to other countries. Then other countries began to have an interest in applying for the Deming Prize. Since there was such an interest they opened up the Application Prize to such overseas companies if they wish to apply.

Categories Policy Org. and development Information Analysis Planning for the future All the categories are explained in the later slides. Each category must especially emphasize on the process of each category and how they implement statistics into it.

Categories Cont… Education and training Quality assurance Quality effects Standardization Control All the categories are explained in the later slides. Each category must especially emphasize on the process of each category and how they implement statistics into it.

Policies Close to the an American strategy Explain their policies Definition Their processes Long and short term goals Leadership

Organization & Development Here is where you explain the overall structure of your business How the authority is divided The process Teams and their activities Different departments & their responsibilities How you get along with connected people outside the company

Information Document the use of information throughout your company How you receive the info Externally & internally How you organize the info How you use and move the info. Throughout your company

Analysis This is where you document all the methods you use How you prioritize problems you have What your plans are to fix the problems How you use this data to correct the problems Also technology fits into this category and how you use it to analyze data

Planning for the Future This is where you want to show what you plan on doing to continually improve your quality You need to understand and list where you believe you are today Where you believe you should be “tomorrow” How you plan on getting where you want to be And also you need to show commitment to these plans

Education and Training Here in the application you want to show what training you give to your employees dealing with quality Also you want to show your plans for future education and training of employees

Quality Assurance Product details Design Inspection Logistics activities Customer satisfaction Environmental issues

Quality Effects Here you label all the effects your business has seen through quality improvement Both tangible and intangible How the effects have affected your business

Standardization Document What your standards are What your standards involve How you use your standards How you bring your standards up-to-date

Control Applicant wants to document how the operation management systems uses different tools to measure the quality of the services and products

The Application Process Can Last Years to finish the actual process!!!!! Consult with the Deming Prize Committee Submission of QC practices & Description of Business activities Complete & submit application form Document Examination On-Site Exam. & the decision of the winners is made by the Board of Directors PASSES Eligible for on-site examination Here is a process flow diagram for the application process of the Deming Prize. First the applicant has to talk to the Japanese Union of Scientists & Engineers to even get the right to apply for the prize. Then they go into the intensive part of filling out the application to either be rejected or accepted. At this point most are accepted and have to submit their Quality control practices and Business activities. Next their document is reviewed fully and is either accepted or rejected. If rejected they will receive a letter telling them they are not qualified and the reasoning being. If they are accepted they have an on-site examination and this is where the winners at this point are decided. At this point they either receive the award or not but all of them will receive a written documentation of the JUSE’s findings. FAILS Examiner sends the applicant their findings Televised Announcement

Why Should Your Company Apply? Process for self assessment Finding ways for improvement Good press & publicity For the good tangible & intangible effects Prove to yourself and others that you have good commitment Any business who feel that they have good quality control over not only their products but also their processes should apply for this award. There are many tangible and intangible awards to filling out the application. All you need is good commitment and a desire to improve.

Lucent Technologies One of the only American manufactures to win Received great press They adapted to Japan’s idea of quality by making their whole business responsible for the work and making TQM the business’s base Compare themselves to some of the Japanese companies that excel in quality control Has won many other prestigious quality awards Lucent Technology mission statement is “To provide customers with the world's best and most innovative communications systems, products, technologies and customer support, and to deliver superior, sustained shareowner value.” (www.lucent.com) Not only are they highly recognized by the United States, (ex. Being named the 10th Most Admired Company by Fortune ’99) but the Japanese have also recognized their effort for quality improvement. Lucent was the first American manufacture to win the Deming prize and for this reason they had great success. Lucent has used the Deming and the many other awards they have won to continue striving for quality improvement.

Exercise Think about your own company Label each category – If you feel you need work in the area + If you feel you are above average in the area 0 if you feel you are about average I want you to think back through the slides I have went through and relate them to your own company. Now go back to the ten categories for the Deming Prize and look them over. Label how you feel your company is doing in each category by giving a – for below average, + for above average, and a 0 for average.

Exercise Cont…. For average and below For above average What can be improved For above average What process is used Report finding to management and coworkers Now go back through each one and for the ones you have an average or below write a few things you need to improve on and an idea on how you could improve them. Then go back to the ones you labeled above average and write what really sticks out in that category and what the process is that makes it so great From this exercise I want you to be able to implement these ideas into your work process everyday. Ask yourself if your business is following a consistent process or what quality tools do you use that actually make an impact. I believe that you should report any finding you have back to your business and help them get involved in continuous quality improvement.

Summary Deming prize Everyone is open to apply Keep in mind processes and statistics when looking through the categories A great way to self assess your business Get into the trend of total quality management & continuous improvement

Bibliography http://perso.wanadoo.fr/deming/Demingprize.html http://www.qimpro.com/FAQ/deming.htm http://www.att.com/press/1094/941018.meb.html Foster,Thomas S. Managing quality, an integrative approach. Upper saddle river:prentice-hall inc. , 2001.