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In today's super competitive world market, there is a race to achieve
the best. In pursuit of excellence the countries and the regions
have started to provide a bench mark in the form of quality award
for enterprise to strive to reach the mark. In the quest for quality,
three trophies stand out: Japan's Deming Award, America's Malcolm
Baldrige Award and European Quality Award. To win these prestigious
awards, enterprises must sweat through long hour and mind-bogling
paper work. The mere effort of trying will in many ways fundamentally
alter the way business is done. Even losers have found that the
wrenching self examination, new policies and tough standards needed
merely to qualify for these prizes yield a valuable dividend. The
exercise often transform them into more thorough, more profitable
& simply better enterprises.
The
Japanese started the Deming award in 1951 to demonstrate that companies
have reached a world class quality. Dr. Edward W. Deming was instrumental
in bringing quality pride in Japanese goods. The nation so grateful
to him named their national award after the name of Dr. Deming.
America's quality exponent Juran once predicted that made in USA
will become a symbol of world class quality. The enterprises in
USA were determined to prove him right. The awakened giant see an
urgent need to match the close to perfection standard set by the
Japan after 40 years of dogged effort. Inspired by Deming's Award,
America instituted a National Quality Award named after Secretary
of Commerce, Malcolm Baldrige in 1987 in a climate of concern about
US international competitiveness. Within 5 year of operation the
Baldrige Award has become the noble prize for the enterprises in
USA and there is a race to reach the top and grab the award.
European
companies have always valued - even revered - quality. The unified
European approach to accelerate of quality as a strategy for global
competitive advantage and stimulate and assist the development of
quality improvement activities set their own collective bench mark
for quality and started European Quality Award in 1991.
"
The need of the hour is a national commitment to quality in all
walks of life. We should not be satisfied with any thing but the
best in the goods and services that we produce". This was stated
by Rajiv Gandhi , Late Prime Minister of India after visiting Japan.
In pursuit of excellence in its goods and service following liberalization
of Indian economy and facing the challenges of global competition,
the need for institution of a National quality Awards a bench mark
for enterprises striving to achieve and excel in world market. The
award was instituted in 1991 and was named Rajiv Gandhi National
Quality Award.
With
the globalization of trade and fierce competition setting in international
approach to quality has started appearing. ISO 9000 Quality Management
System is one such global bench mark for quality.
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° Formerly Director of BIS In-charge of ISO 9000 Certification,
International Consultant to UNIDO & ESCAP and Chief Executive
Quality Care.
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DEMING QUALITY AWARD
The
basic concept in Deming Quality Award is company wise quality control.
This award includes three pillars of business excellence - standardization,
quality assurance and planning for future. The two aspects - policy
and organization& its management - are the bed rock foundation
of Deming Award that makes it somewhat stronger and of greater value
than other awards. These are not as perceptible in the other award
criteria. The unique feature of this award is emphasis on standardization.
This is perhaps the reason why it maintains a distinction from other
quality awards.
Deming
Award has ten examination items (See Table 01). It is based on company
wide Quality Control supported by quality policy; organization and
its management; education and dissemination; collection, dissemination
and use of information on quality; analysis; standardization, quality
assurance, results and planning the future. The award is operated
by the Japanese Union of Scientist and Engineers (JUSE), they have
qualified examiners for evaluation of enterprises applying for the
award.
It
has several categories: the Deming award for individual persons,
the Deming Application award and Quality Control award for factory.
Under the Deming Application award for small enterprises and the
Deming prize for a division in an enterprise. In 1984, another category
was added : the Deming Application award for Overseas companies
which is awarded to non- Japanese companies. This is the only National
Quality award open to foreign companies.
Table
01 Examination points for Deming Award
Serial No Examination Parameters
1 Company policy and Planning
2 Organization and its Management
3 Education and Dissemination
4 Collection, Dissemination and Use of Information on Quality
5 Analysis
6 Standardization
7 Control
8 Quality Assurance
9 Results
10 Future Plans
MALCOLM BALDRIGE AWARD
The
award is based on the core values and concept of Total Quality Management
(TQM). The award was initiated to promote TQM for keeping American
products and services world competitive. The main purpose of the
award is to promote quality awareness, recognize quality achievement
of US companies and to publicize successful quality strategies.
The stress is on peoples management and customer satisfaction. Some
of these are : customer driven quality, leadership for continual
improvement, full participation of all concerned, fast response,
design quality and presentation. The award is designed for long
range out look, by partnership development and public responsibility.
The value of award is not necessarily in winning as much as it is
in improving a common set of standards for implementing total quality
management. Thousands of copies of Malcolm Baldrige criteria are
in corporate hands every year offering blue print of action for
building excellence. The criteria framework is shown in Fig. 01.
Fig 01. BALDRIG AWARD CRITERIA FRAME WORK- Dynamic Relationship
The Baldrige award has seven examination points: Leadership, information,
and analysis, strategic planning, human resource development and
management of process quality, quality and operational results customer
focus and satisfaction (See Table 02). The main thrust in Baldrigh
award is customer satisfaction. The mode of evaluation of scoring
system against each element of the criteria. The award is operated
by the National Institute of Standards and Technology (NIST) which
draw examiners from industry, trade and concerned institutions.
There
are three categories of awards. These are manufacturing, service
and small companies. In each category upto two winners are allowed.
Thus there are in all six award that could be awarded every year.
These
awards are given to winners by the president of United States. At
one of the awards ceremonies then President of United States George
Bush described quality "In business, there is only one definition
of quality, the customer's definition. With the fierce competition
of international market, quality means survival."
Table 02 Examination points for Malcolm Baldrige National Quality
Award
Sl.N0. Examination Parameters Scoring Points
1 Leadership 95
2 Information and analysis 75
3 Strategic quality planning 60
4 Human resource Development and Management 150
5 Management of Process quality 140
6 Quality and operational results 180
7 Customer Focus and satisfaction 300
RAJIV
GANDHI NATIOANL QUALITY AWARD
The
award is leaning towards excellence model with added element for
better business proposition. This is based on the premise that ISO
9000 certification fit very well into a TQM approach and worth while
supplement. ISO 9000 certification gives a strong message to suppliers
and customers about commitment to quality and for continous quality
improvement.
The
Award has 9 examination point (See Table 03). The main thrust is
on leadership, process management and customer satisfaction. Detailed
guidelines are provided to enterprise to interpret correctly the
scoring system The award is operated by the Bureau of Indian Standards
(BIS), the Standards body in India. The examiners are drawn from
specialized bodies with quality back ground.
It has 14 categories of award - two each in six industry sector
such as metallurgical industry, electrical and electronics industry,
chemical industry, food and drug industry, textile industry and
engineering industry. Beside one award each in large and small scale
industry for best performing industrial unit.
Table 03 Examination points for Rajiv Gandhi
National Quality Award
Sl.N0.
Examination Parameters Scoring Points
1 Leadership 100
2 Policies and Strategies 80
3 Human Resource Management 90
4 Resources 90
5 Processes 140
6 Customer Satisfaction 200
7 Employee Satisfaction 90
8 Impact on Society 60
9 Business Results 150
EUROPEAN QUALITY AWARD
The
award was created to recognize the company, organization or business
judged to be the most successful exponent of Total Quality Management
. It has two basic components- enablers and results. Process are
the means by which the organization harnesses and releases the talents
of its people to produce results. In other words, the processes
and the people are the enablers which provide the results. Essentially
this tells that customer satisfaction, people (employees) satisfaction
and impact on society are achieved through leadership driving policy
and strategy, people management, resources and processes, leading
ultimately to excellence in business results. This principle is
graphically displayed in Fig. 02 which indicates share of each component.
The
European Quality Award has nine examination points as indicated
in ( See Table 04). It essentially stresses on customer satisfaction,
people satisfaction and impact on society. The mode of evaluation
is assigning scoring points against criteria elements. Detailed
guidelines are provided to enterprise to interpret correctly the
scoring system. This is sponsored by European Union, the European
Foundation for Quality Management and the European organization
for Quality.
There
are two main categories of awards. The European quality prize -
awarded to a number of companies that demonstrate excellence in
the management of quality as their fundamental process for continual
improvement, and the European Quality Award - Awarded to the most
successful exponent of total quality management.
ENABLERS RESULTS
50 % 50 %
Fig 02. CRITERIA
ELEMENTS FOR EUROPEAN AWARD
Table
04 Examination points for European Quality Award
Sl.N0.
Examination Parameters Scoring Points
1 Leadership 100
2 People management 90
3 Policy and Strategy 80
4 Resources 90
5 Processes 140
6 People satisfaction 90
7 Customer Satisfaction 200
8 Impact on Society 60
9 Business Results 150
GLOBAL HARMONIZATION OF THE EXCELLENCE PARAMETERS
It
may be seen from the above award criteria that parameters for excellence
are similar but stresses and emphasis vary except Deming awards
emphasizes on standardization. In fact standardization product and
service parameters are extremely important to bring discipline in
the system. Formulation of ISO 9000 by the International Organization
for Standardization (ISO) after bringing global consensus is an
attempt to harmonize excellence parameters.
The ISO 9000 (See Fig 03) centers round 8 Quality Management Principles
given below:
Principle 1 Customer focus-Organizations
depend on their customers and therefore they should understand current
and future customers needs, should meet customers requirements and
strive to exceed customers expectations
Principle 2 Leadership-Leaders
establish unity of purpose and direction of the organization. They
should create and maintain the internal environment in which people
can become fully involve in achieving the organization's objectives.
Principle 3 Involvement of people-People
at all levels are the essence of an organization and their full
involvement enables their abilities to be used for the organization's
benefits
Principle 4 Process approach-
A desired result is achieved more efficiently when activities and
related resources are managed as process.
Principle 5 System
approach to management-Identifying,
understanding and managing interrelated processes as a system contributes
to the organization's effectiveness and efficiency in achieving
its objectives.
Principle 6 Continual
improvement-Continual
improvement of organization's overall performance should be a permanent
objective of the organization.
Principle 7 Factual
approach to decision making-
Effective decisions are based on the analysis of data and information.
Principle 8 Mutually
beneficial supplier relationship-An
organization and its suppliers are interdependent and a mutually
beneficial relationship enhances the ability of both to create value.
These
principles are aligned with the excellence model (See box 01)brought
out by European Foundation for Quality Management(EFQM)
COMPARISION
The
five modules for excelling in quality have been described above
and comparision given in Table 05. A close look in their elements
for evaluation shows that they have seven elements common but having
weightages/stresses different. The Deming award is exclusive in
its emphasis on standardization and future plans. The European and
Rajiv Gandhi awards have exclusive elements on impact on society
and peoples satisfaction. The ISO 9000 has in addition elements
on continual improvement and beneficial relationship with suppliers.
CONCLUSION
The quality awards are operating in different countries and region
with different cultural, economic, political backgrounds. There
seems be no reason why award of different countries should be compared.
An award which brings desirable impact under one situation may not
necessarily have the same influence under another situation. However,
the basic criteria applied for evaluation will have desirable impact
under all conditions and lead to quality upgradation at the enterprise
level. Thereby bring awakening and zeal to reach the bench mark
for quality.
The
common purpose of quality award is to promote excellence in quality
and implementation of Total Quality Concept in enterprises. But
each award appears to have a different emphasis. The Deming Award
emphasizes on the process of establishing excellence within a company.
The Baldrige Award reserves its highest score for customer satisfaction.
The European Quality award's goal is peoples satisfaction and social
relations, although it also scores customer satisfaction highly
but not to the same degree as the Baldrige Award. And the Rajiv
Gandhi Quality Award emphasizes process route to Total Quality Management
ensuring peoples involvement, continuos improvement, customer satisfaction
and welfare of society.
The
ISO 9000: 2000 brings common denominators of excellence through
8 of its quality management principles and gives an international
model of quality excellence. It has all good points of all quality
awards.
REFERENCES
1.
Rajiv Gandhi National Quality Award 2000. Bureau of Indian Standards,
New Delhi.
2. Malcolm Baldrige National Quality Award (Award criteria 1999).
National Institute of Standards and Technology (NIST), Mary Land,
USA.
3. ISO 9001:2000 Quality Management Systems-Requirements. International
Organization for Standardization. Geneva.
4. Sohrab. Conformance to quality systems standards - A foundation
for excellence . Udyog Pragati, Jan-Mar, 1993.
TABLE 05 COMPARISION AMONG THE AWARDS
SL.NO. DEMINGAWARD MALCOLM BALDRIGE AWARD RAJIVE GANDHIAWARD EUROPEANAWARD
ISO 9000 PRINCIPLES
1 Organization and its Management Leadership Leadership Leadership
Leadership
2 Quality Assurance Customer Focus and satisfaction Customer satisfaction
Customer satisfaction Customer focus
3 Company policy and Planning Strategic quality planning Policies
and strategies Policy and Strategy System Approach to Management
4 Education and Dissemination Human resource Development and Management
Human resource management People management Involvement of people
5 (Process)Control Management of Process quality Processes Processes
Process Approach
6 (Business) Results Quality and operational results Business results
Business results Factual Approach to Decision Making
7 Analysis & Collection, Dissemination and Use of Information
Information and analysis Resources( Including information) Resources
(Including information) (Factual Approach to Decision Making)
8 Impact on society Impact on society
9 Employee satisfaction People satisfaction
10 Continual Improvement
11 Mutually Beneficial Supplier Relationships
12 Standardization
13 Future Plans
Abstract of the papar
In pursuit of excellence in quality many countries have started
bench mark through quality awards for enterprise to strive to reach
the mark. In the quest for quality, three trophies stand out: Japan's
Deming Award, America's Malcolm Baldrige Award and European Quality
Award.
The
Japanese started the Deming award in 1951 to demonstrate that companies
have reached a world class quality. Dr. Edward W. Deming was instrumental
in bringing quality pride in Japanese goods. The nation so grateful
to him named their national award after the name of Dr. Deming.
America's quality exponent Juran once predicted that made in USA
will become a symbol of world class quality. The enterprises in
USA were determined to prove him right. The awakened giant see an
urgent need to match the close to perfection standard set by the
Japan after 40 years of dogged effort. Inspired by Deming's Award,
America instituted a National Quality Award named after Secretary
of Commerce, Malcolm Baldrige in 1987 in a climate of concern about
US international competitiveness.
European
companies have always valued - even revered - quality. The unified
European approach to accelerate of quality as a strategy for global
competitive advantage and stimulate and assist the development of
quality improvement activities set their own collective bench mark
for quality and started European Quality Award in 1991.
"
The need of the hour is a national commitment to quality in all
walks of life. We should not be satisfied with any thing but the
best in the goods and services that we produce". This was stated
by Rajiv Gandhi , Late Prime Minister of India after visiting Japan.
In pursuit of excellence in its goods and service following liberalization
of Indian economy and facing the challenges of global competition,
the need for institution of a National quality Awards a bench mark
for enterprises striving to achieve and excel in world market. The
award was instituted in 1991 and was named Rajiv Gandhi National
Quality Award.
The
common purpose of quality award is to promote excellence in quality
and implementation of Total Quality Concept in enterprises. But
each award appears to have a different emphasis. The Deming Award
emphasizes on the process of establishing excellence within a company.
The Baldrige Award reserves its highest score for customer satisfaction.
The European Quality award's goal is peoples satisfaction and social
relations, although it also scores customer satisfaction highly
but not to the same degree as the Baldrige Award. And the Rajiv
Gandhi Quality Award emphasizes process route to Total Quality Management
ensuring peoples involvement, continuos improvement, customer satisfaction
and welfare of society.
The
ISO 9000: 2000 brings common denominators of excellence through
8 of its quality management principles and gives an international
model of quality excellence. It has all good points of all quality
awards.
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