Total Quality Management

Assignment on
Deming’s Prize
Submitted by : Fredrick Wen, Ravi M R & Ramya L
 We will look at
• History of Deming’s Prize
• Categories of Deming Prize
• Deming Prize committee
• Criteria for awarding the Prize
• Application Process
• Deming Prize won by Indian
companies
• What Deming prize meant for Tata
Steel
 Dr. W. E. Deming (1900 -
•
1993)
Dr. W. E. Deming was born in Sioux City, Iowa,
United States in October 14, 1900
• States Department of Agriculture, lecturer of
the National Bureau of Standards, consultant for
the Secretary of the Army, and professor of the
New York University
• Dr. Deming is the internationally-respected
authority in the field of statistics, especially the
sampling theory as well as its practice and is
one of the founders of the statistical quality
control in the U.S.
• Awarded the Second Order of the Sacred
Treasure by the Japanese Government
• Dr. Deming passed away on December 20, 1993
at the age of 93
 What is Demings Prize?
• Deming’s Prize is the Japanese quality
award for individuals and groups that have
contributed to the field of quality control.

• Established in 1951 by Japanese Union of

Scientists and Engineers (JUSE) to recognise
those who excel 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
 How was Deming’s Prize
estabilished?
• Dr. Deming taught the basics of statistical
quality control plainly and thoroughly to
executives, managers, engineers and
researchers of Japanese industry
• His teachings made a deep impression on the
participants' mind and provided great
impetus to quality control in Japan
• The transcript of the eight-day course, "Dr.
Deming's Lectures on Statistical Control of
Quality," was compiled from stenographic
records and distributed for a charge.   Dr.
Deming donated his royalties to JUSE
 Contd…
• In appreciation of Dr. Deming's generosity,
the late Mr. Kenichi Koyanagi, managing
director of JUSE, proposed using it to fund
a prize to commemorate Dr. Deming's
contribution and friendship in a lasting
way and to promote the continued
development of quality control in Japan
• Upon receiving the proposal, the JUSE's
board of directors unanimously made a
resolution to establish the Deming Prize
CATEGORIES OF THE
DEMING PRIZE
Deming Prize for Individuals
The Deming Prize for Individuals is an
annual award given to:

(3)Individuals who have made outstanding

contributions to the study of TQM or
statistical methods used for TQM, or

(2) individuals who have made outstanding

contributions in the dissemination of TQM
 Deming application prize
• The Deming Application Prize is an annual
award presented to a company that has
achieved distinctive performance improvements
through the application of TQM.
• Regardless of the types of industries, any
organization can apply for the Prize, be it public
or private, large or small, or domestic or
overseas. Provided that a division of a company
manages its business autonomously, the
division may apply for the Prize separately from
the company.
• There is no limit to the number of potential
recipients of the Prize each year. All
organizations that score the passing points or
higher upon examination will be awarded the
Deming Application Prize
 Quality control award for
operations business units
• The Quality Control Award for Operations Business
Units is given to operations business units of a
company that have achieved distinctive performance
improvement through the application of quality
control/management in the pursuit of TQM in a
designated year.

• To be eligible for the Quality Control Award for

Operations Business Units, the head of the business
unit must possess management responsibilities for the
budget.

• In addition, the unit must have clearly established

responsibilities and authorities for quality
management within the business unit, with a clearly
defined relationship with the head office or other
related departments.
Structure and roles of the
deming prize committee
Criteria for awarding Deming
Application
and quality control prize
1. Management policies & their
deployment regarding quality
management (20points)
a. Under clear management policies that
reflect its management principles, industry,
business, scope and business environment,
the company has established challenging,
quality-oriented, customer-driven business
objectives and strategies. (10 points)
b. Management policies are deployed
throughout the organization and
implemented in a united way. (10 points)
2. New product development/or
work process innovation
(20points).
a. The company actively develops new
products (including services) or innovates work
processes. (10 points)
b. New products need to satisfy customers’
requirements. In the case of work process
innovation, it must contribute greatly to the
efficiency of business management. (10
points)
3.Maintenance and
improvement of product and
operational qualities (20
points)
a. Daily management (10 points)
Through standardization and
education/training, the company rarely has
troubles in daily work and major operations in
each department have been stabilized.
b.Continuous improvement (10 points)
ü The company makes improvements on quality
and other aspects of its business in a planned
and continuous manner.
ü It has reduced claims and defect problems in
the market or the succeeding processes.
4. Establishment of systems for
managing quality, quantity,
delivery, costs, safety,
environment, etc. (10 points)
The company has established the necessary
systems among the ones listed above and
utilizing them effectively.
5. Collection and analysis of
quality information and
utilization of information
technology (15 points)

The company collects quality information

from the market and within its organization in
an organized manner and utilizes it effectively.
Together with the use of statistical methods
and information technology, such information
is utilized effectively for developing new
products and maintaining and improving
operational qualities
6. Human resources development
(15 points)

The company educates and develops

its human resources in a planned
manner resulting in maintaining and
improving product and operational
qualities.
Application Process
On-site Examination
Deming Prize won by Indian
Companies
• Sundaram-Clayton Limited, Brakes Division (1998)
• Sundaram Brake Linings Ltd. (2001)
• TVS Motor Company Ltd. (2002)
• Brakes India Ltd., Foundry Division (2003)
• Mahindra and Mahindra Ltd., Farm Equipment Sector (2003)
• Rane Brake Linings Ltd. (2003)
• Sona Koyo Steering Systems Ltd. (2003)
• Indo Gulf Fertilisers Ltd. (2004)
• Lucas-TVS Ltd. (2004)
• SRF Ltd., Industrial Synthetics Business (2004)
• Krishna Maruti Limited, Seat Division (2005)
• Rane Engine Valves Limited (2005)
• Rane TRW Steering Systems Limited, Steering Gear Division
(2005)
• Asahi India Glass Limited, Auto Glass Division (2007)
• Tata Steel Limited (2008)
 Winning Demings from the
point of view of a Steel Giant

Tata Steel is the first integrated steel

company in the world, outside of Japan, to
win the Deming Application Prize.

Distinctive performance improvements

through the application of total quality
management (TQM).
 
Practices that were adopted to
achieve this coveted award
• TQM practices since 1980- Quality circles, ISO
certification, Quality improvements using Juran
Methods, etc.

• Preparation Time= 4 years. 2005 TQM diagnosis test –

JUSE Team.

• Assess status of their TQM implementation and helped

them uncover a lot of areas that required
improvement in both their processes and culture.
 They specifically looked at:
• Strategic aspects or policy management:
Relooking at the balanced score card, looking
at areas needed to change the business, etc
• Daily management: managing the day-to-day
operations, stable, looking for incremental
improvements, etc 
• People involvement: Involving people in
thinking about improvement activities such as
Quality circles, Suggestion Management. 
 Challenges and Hurdles
• Fundamental Change: Mindset that looks at
improvement.

• Dealing with 35,000 employees; Standardising

approaches and creating alignment to profits and
goals

• Equally challenging was to bring quality to the

forefront, customer focused objectives and
strategies in the various divisions and departments
helped.
“The right quality & uniformity are
foundations of commerce, prosperity
& peace”
- Dr. W. E. Deming