Deming prize

Deming Prize Criteria
And accompanying Viewpoints Current as of 05-October-2000

This document is copyrighted by JUSE and the Deming Electronic Network (DEN) has received explicit permission from JUSE to post it on the DEN web site. For other use or inclusion on any other web site, please contact: Ichiro Kotsuka Deputy General Manager Operations Division JUSE tel:+81-3-5378-9812fax:+81-3-5378-1220

1 Copyright, 2000, JUSE Posted on Deming Electronic Network web site by permission of JUSE

Reference: EXAMINATION VIEWPOINTS FOR THE DEMING APPLICATION PRIZE Concerning the examination for the Deming Application Prize, the following points should be remembered: x The emphasis of the examination is on finding out how effectively the applicant company or division is implementing TQM byfocusing on the quality of its products and services within the scope of its own business. y TQM practices that only concentrate on format, or that establish unnecessary regulations and standards, are not favorably considered. z A successful applicant is not necessarily one that uses advanced statistical methods. Even if a company is small or performs small-lot/large-variety production, it isstill a qualified candidate for the Prize if it practices TQM and achieves good results with an organization-wide understanding of the statistical way of thinking. { The examination in the non-production areas and at a non-manufacturing company will follow a pattern similar to that of the production department. For example, an examination will be performed to see if the respective department's role isclearly identified in assuring the quality of products and services. Each examiner conducts his/her examination according to the examination viewpoints presented below. On the basis of 100 possible points, each examination unit will be scored according to the on-site examination results. The score of the examination unit denotes the median of the points awarded by each examiner for the unit. Thescore for the whole company is the weighted average of scores achieved by each examination unit, excluding the executive session. The weights are determined considering each examination unit's size and roles. As for the business unit that includes the head office, the unit and the executive session receive a score separately. The applicant companies that satisfy all of the following conditions,Items x to z, will be awarded the Deming Application Prize. x The executive session: 70 points or higher y Whole company average, excluding the executive session: 70 points or higher z Any examined unit: 50 points or higher When it is judged that the applicant company has acted in a socially immoral manner, the decision on its passing or not-passing may be suspended. The examiners determine thecontents of the examination specific to the company, while keeping the examination viewpoints in their minds in addition to considering what aims the applicant company has established for its TQM and how the company has been implementing it. The examiners’ interest in the examination is to find out what part of the overall picture of TQM, shown in the examination viewpoints, are applied and what thefeatured TQM activities are at the applicant company. The examination viewpoints are not the checklist for the examination. In other words, the examiners do not examine the applicant item by item according to all of the viewpoints. Therefore, successful applicants do not necessarily mean that they are perfect in all of the examination viewpoints.

2 Copyright, 2000, JUSE Posted on DemingElectronic Network web site by permission of JUSE

More specifically, the following viewpoints are used for the examination to determine whether or not the applicant should be awarded the Prize. x Under the clear management leadership, reflecting its management principles, type of industry or business, scope, and business environment, the applicant has established business objectives and strategies...