1

Quality Awards
by
Dr. Govind Sharan Dangayach
Associate Professor
Department of Mechanical Engineering
Malaviya National Institute of Technology
Jaipur

2
Quality Gurus
W. Edwards Deming
Statistics professor, specializing
in acceptance sampling
Went to Japan after WW II
Helped Japanese focus on and
improve quality
System (not employees) is cause
of poor quality
Fourteen Points
Demings Paradigms
1. Intrinsic & extrinsic motivation
2. Management needs to improve and
innovate processes to create results
3. Optimize the system toward its aim
4. Cooperation is better than competition
Joseph Juran
Went to Japan in 1951
Quality begins by knowing what
customers want
80% of defects are controllable
Quality Planning
Quality control
Quality improvement
Philip B. Crosby
Martin Marietta, ITT, starting in 1960s
Quality is Free
Management must be firmly behind
any quality plans
Do it right the first time
. Quality Diagnosis & Medicine
Benchmarking = Diagnosis
Best Practice = Medicine

E.g
Quality Awards (EFQM,
Baldrige, CAF,)
ISO
Benchmarking
Citizens Charters
Statistical Methods
PDCA-Cycle
Product Orientation
Re-engineering
Quality Diagnosis & Medicine: there are a
number of quality tools available!
Quality Diagnosis & Medicine: Common
Assessment Framework CAF
Purpose? To provide a simple, easy-to-use
framework which is suitable for a self-
assessment of public sector organizations
across Europe
an introductionary tool to the EFQM Model
a tool to bencmark

Structure of the model: Simplified version of
EFQM and Speyer Model

Scoring system: Scoring range from 15
(concerning enablers and results, i.e. very
simplified version of the EFQM scoring
system

Quality Diagnosis & Medicine: Common
Assessment Framework CAF
Criteria:
1. Leadership
2. Policy and Strategy
3. Human Resource Management
4. External Partnerships and Resources
4a. External Partnerships
4b. Internal Resources
5. Process and Change Management
5a. Process Management
5b. Change Management
5C. Management of customer/citizen orientation and
involvement
6. Customer/Citizen-oriented Results
7. People/Employees Results
8. Impact on Society
9. Key Performance Results




Quality Awards
Australian Business Excellence Award
Malcolm Baldrige National Quality Award
European Quality Award
Rajiv Gandhi National Quality Award
Japan Quality Award

Singapore Quality Award
Malaysia Prime Ministers
Quality Award
Fiji Quality Award
Philippine Quality Award
Thailand Quality Award
Pakistan National Quality Award
Relative Weights of Enablers
& Results
Award
Enabler Categories Results Categories
Number Points Number Points
Australian Business Excellence Award 6 420 1 580
Malcolm Baldrige National Quality
Award
6 550 1 450
European Quality Award 5 500 4 500
Japan Quality Award 7 600 1 400
Singapore Quality Award 6 600 1 400
Malaysia Prime Ministers Quality
Award
7 800 1 200
Fiji Quality Award 6 420 1 580
Philippine Quality Award 6 550 1 450
Thailand Quality Award 6 550 1 450
PNQA 6 730 1 270
Examiners / Assessors
Award Title of Examiners Number of Examiners
Australian Business Excellence
Award
Evaluator 140
Malcolm Baldrige National Quality
Award
Examiner > 400/year
European Quality Award Assessor
Japan Quality Award Examiner 170/year
Singapore Quality Award Assessor 100 with pool of 450
Malaysia Prime Ministers Quality
Award
Auditor (100% NPC
staff)
50
Fiji Quality Award Evaluator 22
Philippine Quality Award Assessor 50 with pool of 350
Thailand Quality Award Assessor 30-40
PNQA Assessor 40-50 with pool of >100
Malcolm Baldrige
1981-87 secty. of Commerce.
Proponent of quality management as key to
US economic survival
Helped draft early version of quality act
Resolved technology transfer differences
with China and India
First Cabinet-level meetings with Soviet
Union in 7 years
Paved way for increased access for US firms
15
MBNQA- What Is It?
Award named after the former Secretary of
Commerce Regan Administration
Intended to reward and stimulate quality
initiatives
Original categories were manufacturing,
service, and small business. Healthcare,
education, and non-profit categories have
been added.
Past winners: Motorola Corp., Xerox, FedEx,
3M, IBM, Ritz-Carlton
Point
Values

9-17
Malcolm Baldrige National Quality
Award
1.0 Leadership (120 points)
2.0 Strategic Planning (85 points)
3.0 Customer and Market Focus (85 points)
4.0 Information and Analysis (90 points)
5.0 Human Resource Focus (85 points)
6.0 Process Management (85 points)
7.0 Business Results (450 points)
9-18
Benefits of Baldrige Competition
Financial success
Winners share their knowledge
The process motivates employees
The process provides a well-designed
quality system
The process requires obtaining data
The process provides feedback
Malcolm Baldrige Framework
Wiley 2007 20
The Deming Prize
Given by the Union of Japanese Scientists and
Engineers since 1951
Named after W. Edwards Deming who worked
to improve Japanese quality after WWII
Not open to foreign companies until 1984
Florida P & L was first US company winner

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
Policy
Organization and
operations
Collection and use of
information
Analysis
Planning for future
Education and training
Quality assurance
Quality effects
Standardization
Control
Concentrates on :
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 non-
production 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
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.
1)
2)
3)
4)
W. Edwards Demings 14 Points
Find problems. It is managements 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.
5)
6)
7)
8)
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.
9)
10)
11)
12)
W. Edwards Demings 14 Points
Institute a vigorous programme of education and
retraining.
Create a structure in top management that will
push everyday on the above 13 points.
13)
14)
W. Edwards Demings 14 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 of
methods
Understanding and utilization of
problem-solving methods

DEMING PRIZE CRITERIA


(9) Organizational Powers
Core technology
Speed
Vitality





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



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


Wiley 2007 49
ISO Standards
ISO 9000 Standards:
Certification developed by International
Organization for Standardization
Set of internationally recognized quality standards
Companies are periodically audited & certified
ISO 9000:2000 QMS Fundamentals and
Standards
ISO 9001:2000 QMS Requirements
ISO 9004:2000 QMS - Guidelines for Performance
More than 40,000 companies have been certified
ISO 14000:
Focuses on a companys environmental
responsibility
So what does it mean?
ISO is a word from the Greek isos, meaning equal
(isoquant, isoprofit line). Its not an abbreviation.

Older ISO Standards
ISO 9000:1994 Standard
Certifies processes are standardized
9001 for distributors
9002 for assembly
9003 for full-line manufacturing and retailing
ISO 9000:2000 Standard
All replaced by ISO 9001:2000
Conversion mandatory by Dec. 15, 2003

Basic Premise
A well-designed, well-implemented,
and carefully managed quality system
provides confidence that the outputs
will meet customer expectations and
requirements.
What is ISO certification?
Does not guarantee a quality product.
No inspection of the product is involved in certification.
To get certified:
Have a written set of procedures for every activity
Have your employees always follow procedures
Pay someone to come and verify that you always follow your
written procedures
If procedures are followed, your products should be
consistently, uniformly good
So why do it?
In Europe (and elsewhere) only buy from
certified companies to ensure safety
Telecommunications equipment
Medical devices
Gas appliances
Toys
Construction products
Required for international competitiveness
Not to mention all of the other benefits of
trying to improve quality
ISO Family of Standards
ISO 9001:2000 Basis for certification
ISO 9004:2000 to prepare for national quality award
ISO 10006 for project management
ISO 10007 for configuration management
ISO 10012 for measurement systems
ISO 10013 for quality documentation
ISO/TR 10014 managing economics of Q
ISO 10015 for training
ISO/TS 16949 for automotive suppliers
ISO 19011 for auditing
Certification
Structure
ISO 9000: 2000
Created by International Organization for Standardization
(IOS) which was created in 1946 to standardize quality
requirement within the European market.
IOS initially composed of representatives from 91
countries: probably most wide base for quality standards.
Adopted a series of written quality standards in 1987 (first
revised in 1994, and more recently (and significantly) in
2000).
Prefix ISO in the name refers to the scientific term iso
for equal. Thus, certified organizations are assured to have
quality equal to their peers.
ISO 9000: 2000
Defines quality systems standards based on the premise
that certain generic characteristics of management
principles can be standardized.
And that a well-designed, well-implemented and well
managed quality system provides confidence that outputs
will meet customer expectations and requirements.
Standards are recognized by 100 countries including Japan
and USA.
Intended to apply to all types of businesses. (Recently,
B2B firm bestroute.com became the first e-commerce
company to get ISO certification.)
ISO 9000: 2000
Created to meet five objectives:
1. Achieve, maintain, and seek to continuously improve
product quality in relation to the requirements.
2. Improve the quality of operations to continually meet
customers and stakeholders needs.
3. Provide confidence to internal management that quality
requirements are being met.
4. Provide confidence to the customers that quality
requirements are being met.
5. Provide confidence that quality system requirements are
fulfilled.
ISO 9000: 2000 structure
Consists of three documents
1. ISO 9000 Fundamentals and vocabulary.

2. ISO 9001 Requirements.
Organized in four sections: Management Responsibility;
Resource Management; Product Realization; and
Measurement, Analysis and Improvement.

3. ISO 9004 Guidelines for performance improvements.
ISO 9000: 2000 Quality Management
Principles
Principle 1: Customer Focus
Principle 2: Leadership
Principle 3: Involvement of people
Principle 4: Process approach
Principle 5: Systems approach for management
Principle 6: Continual improvement
Principle 7: Factual approach to decision making
Principle 8: Mutually beneficial supplier relationships.
ISO 9000: 2000 registration
Originally intended to be a two-party process where the
supplier is audited by its customers, the ISO 9000 process
became a third-party accreditation process.
Independent laboratory or a certification agency conducts
the audit.
Recertification is required every three years.
Individual sites not entire company must achieve
registration individually.
All costs are to be borne by the applicant.
A registration audit may cost anywhere from $10,000 to
$40,000.


(more information at http://www.iso.ch)