Roadmap To The Deming Prize What we will

Roadmap To The Deming Prize

What we will cover • What is the Deming Prize? – Who is Dr. Deming? • Deming Prize – The Deming Prize • Qualifying for the Deming Prize – Who qualifies – Deming Application Prize – How to Apply – How to win

Who was Dr. W. Edwards Deming? Dr. W. E. Deming was one of the world’s 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 Concentrates on : • • Policy • • Organization and • operations • • Collection and use of • information • • Analysis Planning for future Education and training Quality assurance Quality effects Standardization Control

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 nonproduction 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 Deming’s 14 Points 1) Create constancy of purpose towards improvement of product and services. 2) Adopt the new philosophy. We can no longer live with commonly accepted levels of delays, mistakes, defective workmanship. 3) Cease dependence on mass inspection. Require, instead, statistical evidence that quality is built in. 4) End the practice of awarding business on the basis of price tag.

W. Edwards Deming’s 14 Points 5) Find problems. It is management’s job to work continually on the system. 6) Institute modern methods of training on the job. 7) Institute modern methods of supervision of production workers. The responsibility of foremen must be changed from numbers to quality. 8) Drive out fear that everyone may work effectively for the company.

W. Edwards Deming’s 14 Points 9) Break down barriers between departments. 10) Eliminate numerical goals, posters and slogans for the workforce asking for new levels of productivity without providing methods. 11) Eliminate work standards that prescribe numerical quotas. 12) Remove barriers that stand between the hourly worker and his right to pride of workmanship.

W. Edwards Deming’s 14 Points 13) Institute a vigorous programme of education and retraining. 14) Create a structure in top management that will push everyday on the above 13 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 methods • Understanding and utilization problem-solving methods of of

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

Creating Culture Change: The Roadmap to successful Total Quality Management

Step 1: The Strategic Issues 1. v v v Pursuing Excellence Quality is about attitude Gradual Process Requires commitment to constant innovation v Reject Stereotyped beliefs v Having the answer- but doing nothing.

Step 1: The Strategic Issues 2. Total Quality 1. Produce the best product and service possible- through constant innovation 2. Focus on maintaining the competitive edge 3. Organization wide commitment to Quality 4. Systematic use and application of QA, SPC and QC 5. Tailoring quality drives to the organization 6. Doing it right first time, every time 7. Includes Customer Care, JIT, etc. TQM is a never ending process.

Step 1: The Strategic Issues 3. Costing Quality v Measuring and understanding nothing v Assess the Cost of Quality in nonmanufacturing like rework, cost of inspection, cost of prevention v The impact of total Quality v Making the Quality Manager redundant v Moving from rework to prevention v TQM is not cost-cutting Establish the linkage between Strategic Goals and TOTAL QUALITY

Step 2: Managing the Transition to TQM 4. TQM is Behavioral Change v Being Self critical v Encourage Preventive and if required Corrective Action v Remember words and workshops change nobody v Resistance to total quality v Be patient. v Assess the readiness through organizational values and culture

Step 2: Managing the Transition to TQM 5. Managing Cultural Change v Choose your culture and create it through Leading by Example v Make your culture people-oriented v Challenge outmoded systems & procedures v Imbibe new values v Make the transition comfortable Change everything we do.

Step 2: Managing the Transition to TQM 6. Total Quality Leadership: Leading by Example 1. Top Management Commitment- MUST and it should be reflected down the line 2. Model the way you want others to behave 3. Lead and achieve through people 4. Inspire, Visualize, Enable, Encourage People to achieve results 5. Celebrate, Recognize and Share Success

Step 2: Managing the Transition to TQM 7. How to Avoid The Pitfalls 1. Define the role of an internal change agent 2. Accountability to change the culture is at the TOP 3. Ownership for implementation must be shared between internal people and outsiders 4. Effectively utilize transformational leaders 5. Treat Suppliers as Partners Focus on External as well as

Step 3: Features of TQM Drives 8. Meeting Customer Requirements v Workout the Customer/Supplier Relationship within and outside the organization v Identify Customers Requirements v Strengthen the relationship between Customers and Suppliers (External as well as Internal)

Step 3: Features of TQM Drives 9. Error Prevention v Right first time is a standard of performance- Error free work v Fool proofing v Implement improvement- don’t kill them with talking v Everybody is his own inspector

Step 3: Features of TQM Drives 10. Taking Preventive Action v As an alternative to fixing things v Remember that most problems are predictable and many are recurring v Develop a long-term solution v Focus on process than structure v Adopt Logical as well as Creative approach to problem solving v Taking action v Communication and information

Step 3: Features of TQM Drives 11. Team Building and Participation 1. Achieving results through others 2. Employee involvement through Theory Y Leaders 3. Move from Telling Culture to Listening Culture 4. Reject the ‘us and them’ attitude 5. Remember that the person operating the machine knows best about the machine. 6. Institutionalize career development for employees – Promote, Value and Reward Horizontal as well as Vertical Career Progression

Step 3: Features of TQM Drives 12. You can’t let them loose until you have given them the best Training you can…. . v First learn how people learn, then develop training initiatives v Training should also include addressing training attitudes v Manage the learning environment v Line managers should reinforce TQM Behavior in day-to-day working v Design your own program and ensure it meets your requirement

Step 4: Continuous Improvement 13. Readiness for Change v Tailor made the TQM program v Conduct feasibility study, Quality audits, and Departmental purpose analysis v Equal devotion from manufacturing as well as non-manufacturing areas v Encourage being Self-critical v Encourage suggestions v Publicize the effort v Integrate TQM with other organizational systems

Step 4: Continuous Improvement 14. Implementation Change and Review v Define criteria for review v Monitor the progress v Learn from failures v Share success and information

Summarizing the TQM Philosophy Do’s v v v v Education and training Fool proofing Quality Circles Communication Automation Measure and Display Quality in all areas Long-term planning

Moving Towards the Philosophy Focus on v v v v v Organization Structure Horizontal Management Loving your people Cultural Change Quality of Working Life Developing Partnerships Leadership Change Management Customer led strategies, rather than Products