HOME PROFILE SERVICES PEOPLE CLIENT PUBLICATIONS TRAINING PROGRAMS CERTIFICATION EXPERIENCE INERNATIONAL EXPERIENCE
COMMON DENOMINATORS FOR EXELLENCE-NATIONAL QUALITY AWARDS vs ISO 9001:2000

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.
-------------------------------------------------------------------------------------------------------------------
° Formerly Director of BIS In-charge of ISO 9000 Certification, International Consultant to UNIDO & ESCAP and Chief Executive Quality Care.
-------------------------------------------------------------------------------------------------------------------
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.

 

[Home] :-: [Profile] :-: [Our Services] :-:[Our People] :-: [Our Client] :-: [Publications]  :-: [Contact Us]
 
© Copyright www.qcs.com 2002
Suggestions & feedback at qcs
Site designed and conceptualized by Angelus Infotech Pvt. Ltd