Sue Rohan, David LuthyThe Deming PrizeBaldrige AwardThe Comparison of the Deming Prize and the Baldrige Award- Handouts -The Deming PrizeThe Deming Prize is Japan’s national quality award for industry. It wasestablished in 1951 by the Japanese Union of Scientists and engineers (JUSE) and it wasnamed after W. Edwards Deming. He brought statistical quality control methodology toJapan after W.W.II. The Deming Prize is the world’s oldest and most prestigious of suchawards. Its principles are a national competition to seek out and commend thoseorganizations making the greatest strides each year in quality, or more specifically, TQC.The prize has three award categories. They are Individual person, the DemingApplication Prizes, and the Quality Control Award for factory. The Deming Applicationprizes are awarded to private or public organizations and are subdivided into smallenterprises, divisions of large corporations, and overseas companies. There are 143companies who won the prize. Among them, only once has the Deming Prize beenawarded to a non-Japanese company: Florida Power and Light in 1989.Baldrige AwardThe Baldrige Award was established in 1987 to promote quality awareness,understand the requirements for quality excellence, and share information aboutsuccessful quality strategies and benefits. There are three eligibility categories:manufacturing, services, and small firms. Unlike the Deming Prize, public or not-for-profit organizations are not qualified. Also, there is no category in which all applicantsthat satisfy a given level of performance receive a quality prize. Since its foundation,there are only five companies who received this prize. According to its principles, the roleof quality data collection and analysis as the basis for managerial decisions is paramount.Furthermore, quality efforts should not concentrate only on the elimination of defects butalso encompass creative activities that will influence customer satisfaction. AmongBaldrige winners, there are no service companies.Check list of application for Deming AwardItem Particulars Item Particulars1. Policy 1. Policies pursued for management quality, and quality control2. Method of establishing policies3. Justifiability and consistency of policies4. Utilization of statistical methods5. Transmission and diffusion of policies6. Review of policies and the results achieved7. Relationship between policies and long- and short-term planning6. Standardization 1. Systematization of standards2. Method of establishing, revising, and abolishing standards3. Outcome of the establishment, revision, or abolition of standards4. Contents of the standards5. Utilization of statistical methods6. Accumulation of technology7. Utilization of standards2. Organization and its Management1. Explicitness of the scopes of authority and responsibility2. Appropriateness of delegations of authority3. Interdivisional cooperation4. Committees and their activities5. Utilization of staff6. Utilization of QC Circle activities 7. Quality control diagnosis7. Control 1. Systems for the control of quality and such related matters as cost and quantity2. Control items and control points3. Utilization of such statistical control methods as control charts and other statistical concepts4. Contribution to performance of QC circle activities5. Actual conditions of control activities6. State of maters under control3. Education and Dissemination1. Education programs and results 2. Quality- and control-consciousness, degrees of understanding of quality control3. Teaching of statistical concepts and methods, and the extent of their dissemination4. Grasp of the effectiveness of quality control5. Education of related company (particularly those in the same group, sub-contractors, consigness, and distributers)6. QC circle activities7. System of suggesting ways of improvements and its actual conditions8. Quality Assurance1. Procedure for the development of new products and services (analysis and upgrading of quality, checking of design, reliability, and other properties)2. Safety and immunity from product liability3. Customer satisfaction4. Process design, process analysis, and process control and improvement5. Process capability6. Instrumentation, gauging, testing, and inspecting7. Equipment maintenance, and control of subcontracting, purchasing, and services8. Quality assurance system and its audit9. Utilization of statistical methods10. Evaluation and audit of quality11. Actual state of quality assurance4. Collection, Dissemination and Use of Information of Quality1. Collection of external information2. Transmission of information between divisions3. Speed of information transmission (use of computers)4. 4. Data processing statistical analysis of information and utilization of the results9. Results 1. Measurements of results 2. Substantive results in quality, services,delivery time, cost, profits, safety, environments, etc.3. Intangible results4. Measures for overcoming defects5. Analysis 1. Selection of key problems and themes2. Propriety of the analytical approach3. Utilization of statistical methods4. Linkage with proper technology5. Quality analysis, process analysis6. Utilization of analytical results7. Assertiveness of improvement suggestions10. Planning for the Future1. Grasp of the present state of affairs and the concreteness of the plan2. Measures for overcoming defects3. Plans for further advances4. Linkage with the long-term plansEdited by Subcommittee of Implementation Award for Deming Prize, 1992 Revision.Check list of application for Malcom Baldrige National Quality AwardMaximum score Percentageof sub-total1.0 Leadership 1501.1 Leadership of top-ranking managers 501.2 Policy 301.3 Management control system and quality improvement process 301.4 Allocation and utilization of resources 201.5 Responsibility to society