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Indian Companies Recipient of Deming Award & Malcom Balridge Award Past Five YearsDocument Transcript
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Deming PrizeThe Deming prize, established in December 1950 in honor of W. EdwardsDeming, was originally designed to reward Japanese companies for majoradvances in quality improvement. Over the years it has grown, under theguidance of Japanese Union of Scientists and Engineers (JUSE) to where it isnow also available to non-Japanese companies, albeit usually operating inJapan, and also to individuals recognized as having made major contributions tothe advancement of quality. The awards ceremony is broadcast every year inJapan on national television.Two categories of awards are made annually, the Deming Prize for Individualsand the Deming Application Prize.India Receiving Deming Prize Year Company1998 Sundaram-Clayton Limited, Brakes Division2001 Sundaram Brake Linings Limited.2002 TVS Motor Company Limited Hi-Tech Carbon GMPD2003 Brakes India Limited., Foundry Division Mahindra and Mahindra Limited, Farm Equipment Sector Rane Brake Lining Limited Sona Koya Steering Systems Limited Birla Cellousic, Kharach-A Unit of Grasim Industries Limited (India)2004 SRF Limited., Industrial Synthetics Business Lucas TVS Limited Indo-Gulf Fertilisers Limited2005 Krishna Maruti Limited, Seat Division Rane Engine Valves Limited Rane TRW Steering Systems Limited, Steering Gear Division
2007 Asahi India Glass Limited, Auto Glass Division (India) Rane (Madras) Limited (India) Reliance Industries Limited, Hazira Manufacturing Division (India)2008 Tata Steel Limited (India)2010 National Engineering Industries Limited (India)2011 Sanden Vikas (India) LimitedCompanies receiving it from past 5 years Asahi India Glass Limited, Auto Glass Division (India)AIS Auto Glass was conferred the prestigious Deming Application Prize 2007 bythe Union of Japanese Scientists and Engineers (JUSE).On 14th November 2007, AIS was recognised for its obsession to quality andfocus on Total Quality Management (TQM) practices as its Auto Glass Divisionwas conferred the prestigious Deming Application Prize 2007. It is a matter ofgreat pride and joy that AIS is one of the just fourteen Indian companies whohave won this award and is the only glass manufacturer in India who has beenso honoured.The Deming Application Prize is one of the highest quality awards across theglobe. The prize is administered and awarded by the Union of JapaneseScientists and Engineers (JUSE).The Deming Application Prize was established in December, 1950 in the honourof Dr. W. E. Deming, one of the foremost experts of quality control in the UnitedStates of America. It was originally designed to reward Japanese companies formajor advances in quality improvement. Over the years it has grown, under theguidance of JUSE, to become one of the highest awards on TQM across the globe.TQM is a management approach for an organization, centered on quality, basedon the participation of all its members and aiming at long-term success thoughcustomer satisfaction, cascading of benefits to all members of the organizationand to the society.
The Deming Application Prize is presented to a Company that has achieveddistinctive performance improvements through the application of TQM, based onwhich the following results must be clearly visible:Formulation and application of such business objectives and strategies which arechallenging and customer oriented.Development, implementation and institutionalisation of TQM methods acrossthe organisation to achieve the stated objectives and strategies.Outstanding effects are attained as a result of the above.The Deming Prize examination does not require applicants to conform to a modelprovided by the Deming Prize Committee. Rather, the applicants are expected tounderstand their current situation, establish their own themes & objectives andimprove & transform themselves company-wide. Not only the results achievedand the processes used, but also the effectiveness expected in the future aresubject to examination. Organisations that have won the Deming Prize feel thatthe process of institutionalising TQM has helped them in achieving businessgrowth, created customer delight through quality and has helped theorganisation to transform itself. Rane (Madras) LimitedDeming Application Prize: 2003 - Rane Brake Lining Ltd. 2005 - Rane Engine Valve Ltd. 2005 - Rane TRW Steering Systems Ltd. (SGD) 2007 - Rane (Madras) Ltd.Rane Group companies adopted Total Quality Management (TQM) in the year2000.This has led to the following benefits. 1. Holistic participation of employees in all processes 2. Customer focus 3. Methodical approach to innovative manufacture and development 4. Highly focused and motivated work force 5. Structured and focused implementation of short and long term plans
Reliance Industries Limited, Hazira Manufacturing Division (India)For the first time ever, globally, a petrochemical company bagged the ―DemingPrize for Management Quality‖. ―The Quality Control Award for OperationsBusiness Unit 2007‖ was awarded to the Hazira Manufacturing Division forOutstanding Performance by Practicing Total Quality Management.The Hazira Manufacturing Division of Reliance Industries Limited (RIL) hasmade India proud by winning the Deming Prize. We are the first globalpetrochemical unit to be awarded this prestigious prize for management quality.The Quality Control Award for Operations Business Unit 2007 was awarded tothe Hazira Unit for Outstanding Performance by Practicing Total QualityManagement. The annual award by the highest quality control body in Japanwas conferred to the Hazira division for utilizing statistical concepts andmethodology based on the unit’s excellent business philosophy and leadershipdemonstrated by the senior management.The Deming Prize was instituted in 1951 by Japan to honour the man who gaveManagement Quality to the world, W. Edwards Deming. It is governed by JUSE(Japanese Union of Scientists and Engineers) which audits a large number ofcompanies and plants annually before conferring the award.Receiving the award on behalf of Reliance, Mr. H.S. Kohli, Executive Director ofthe company and head of the Hazira unit said, ―In 1998 Hazira set itself oncourse of the management quality street by integrating Deming’s main principlesof Management Quality practices. With the dedicated efforts of our people andguidance by JUSE the journey was accomplished.‖ Tata Steel LimitedTata Steel is the first integrated steel company in the world, outside of Japan, towin the Deming Application Prize.The steel giant won the 2008 prize for achieving distinctive performanceimprovements through the application of total quality management(TQM).Avneesh Gupta, chief (TQM) at Tata Steel spoke toGayatri Kamath aboutthe journey of enlightenment and the sense of responsibility that comes withwinning this coveted prize awarded by the Japanese Union of Scientists andEngineers (JUSE).
What is the significance of this prize?The Deming Application Prize is considered to be the highest award in the areaof TQM. Total quality stands for not just quality of products and services, butalso the processes and activities that are needed to achieve quality. In the worldof quality awards, this prize is like a gold standard.The prize was started in 1951 in memory of Edward Deming who wasinstrumental in teaching the concepts of quality to the Japanese. The DemingApplication Prize tests the application of TQM within a company. The criteriainclude: Objectives and strategies of the company and whether they are challenging and customer-focused How TQM has been applied to achieve these objectives, and the thoroughness, consistency and depth of its application across the organisation The outstanding effects achieved as a result of the application of TQMThe focus here is on application – what sort of systematic methods and activitieshave been applied to achieve our objectives and strategies and what is the effectof this. The concept is that we need to demonstrate our ability to use TQM toachieve our desired goals rather than our capability (potential).How does it impact Tata Steels profile in the steel industry?Firstly, outside Japan, no steel company has won this award. We are the first.Secondly, in the past many years smaller sized companies have won this prize.It’s been almost 20 years since a company the size of Tata Steel has won theaward – an indication of the effort that is necessary. Thus the impact issignificant and lasting.What practices did Tata Steel adopt to achieve this award?Tata Steel has been practising TQM since the late 1980s which was when thecompany initiated several quality activities – quality circles, ISO certification,quality improvements using Juran methods, etc. After winning the JRD QVAward in 2000, the question we faced was how to achieve the next quantumjump in performance and improvements. By going through the Deming process,we discovered the deeper meaning of TQM.Tata Steel has been preparing for this prize for about four years. In 2005, weconducted a TQM diagnosis along with the JUSE team; that gave us the statusof our TQM implementation and helped us uncover a lot of areas that requiredimprovement in both our processes and culture. The TQM diagnosis gave usdeeper understanding and clarity on our approach to quality: what areas shouldbe addressed, who should get involved in what activities, etc. We specificallylooked at:
Strategic aspects or policy management: relooking at the balanced score card, looking at areas needed to change the business, etc Daily management: managing the day-to-day operations, ensuring that they are stable, looking for incremental improvements, etc People involvement: involving people in thinking about improvement activities such as quality circles, suggestion management, knowledge manthan, etc.What is the short term and long term impact of this initiative?The short term impact is that this has galvanised the organisation. Our peoplehad rallied behind the goal of winning the Deming prize and a lot ofimprovement activities had been further refined.The long term impact is that we have been able to push forward in our excellencejourney. More importantly we have put in place some fundamental approaches inthe organisation which will help us to leverage them for the performanceimprovement of Tata Steel. We have established that TQM is necessary forachieving business goals. Our revised half-yearly (H2) plan has identifiedenablers that address savings and benefits for the company; many of thesemethods use TQM approaches – for instance, how to optimise use of consumablessuch as lime, zinc, etc, how to reduce turnaround or shut down times throughcritical chain project management, etc. Basically, what has changed is ourapproach, how we apply TQM to attain our business targets. We are looking atmore than double the improvements we have achieved in the past years.Who were the main leaders and drivers of the Deming initiative?It started with the top leadership and the TQM team, but later on nearlyeveryone in the organisation was a part of it. We were able to engage many ofthe front line or operating units in this; there were champions in each of thedepartments.What were the challenges and hurdles to achieving this award? How were theyovercome?The most fundamental challenge was to create a mindset that looks atimprovement activities as essential for achieving targets and goals. This is wherethe examiners focus. The biggest challenges lay in creating this understandingacross the organisation, dealing with 35,000 employees, in explicitly stating anddocumenting improvement targets and how to go about achieving these in asystematic manner, in standardising approaches and creating alignment toprofits and goals, and so on. Equally challenging was to bring quality to theforefront, which was addressed by formulating customer focused objectives andstrategies in the various divisions and departments.The other problem was that for Tata Steel there were six examination units –the corporate unit and the five major divisions (raw materials, coke, sinter andiron, flat products, long products and shared services). Each unit had twoapplications – one for the overall unit, and one representing each of the
departments of the division. We had to create guidelines and reference manualsto have uniformity and alignment.How does the Deming award criteria differ from the Tata Business ExcellenceModel (TBEM)?The difference is in the focus rather than the content. The Deming award criterialooks for application which runs vertically cutting across processes/ items, ratherthan looking at processes horizontally the way TBEM criteria are applied. Theytest the application rather than only the approach. Deming looks at applying thebasic principle of TQM – the Plan-Do-Check-Act method.The other key difference is the rigour of the examination process. It looks forapplication both in business units and the corporate functions. For us there weresix examination units covering 52 departments in all. Each unit was examinedfor two days, so there were 12 days of examination which spread for about amonth (4th of August to the 5th of September). There were 26 examiners, eachhaving a lot of experience and expertise both in theory and application in theirfield.Will Tata Steel apply for the 2009 award as well?As far as we know no company applies for this award every year. It is a veryintense and time consuming effort both for the company and the examinationbody. Usually organisations continue to reap benefits out of one such effort formany years and put some internal diagnosis (assessment) system in place. TataSteel will also not apply again for the Deming award in 2009. There is a nextlevel – called the Japan Quality Medal. You become eligible three years afterwinning the Deming prize. We will decide in due course. National Engineering Industries LimitedNEI Ltd. has been awarded the coveted 2010 Deming Application Prize, by the Union ofJapanese Scientists and Engineers (JUSE), Japan, for achieving distinctive performanceimprovement through the application of Total Quality Management (TQM).The Demingmedal confirms that our quality management systems are one of the best ,globally .Forour customers, this means enjoying consistently superior products and assurance ofhighest quality for every NBC bearings they use .R&D is equipped to introduce new technology in the field of bearings and relatedproducts .All functions from concept design to product launch are an integral part ofR&D . The activity begins from customer interaction by Application Engineering andQFD approach is used to understand customer requirements to translate into a usefulproduct . It has a full fledged test centre for endurance as well as application testing.The test lab is being expanded to double the capacity in next four years.Advanced functions like Tribology ,Simulation ,Materials Technology and Lubricationtechnology have been added .The centre relies on the associate strength that has vast
experience in the bearing industry . Academics excellence is being promoted by inclusionof specialists from IIT’s and REC’s .The centre will be a leading technology centre innext 4 to 5 years.NEI stands committed to an endless journey of continuous improvement through TQM. Sanden Vikas (India) LimitedSanden Vikas (India) Limited, (India)Mr. Naveen Agarwal, Executive Director & COOQuality is a passion with SVL and we attach the greatest importance to theachievement of the best global quality levels. We are certified to the relevantInternational Quality Standards. These include ISO/TS 16949 and also theEnvironmental Standard ISO 14001: 2004.To achieve distinctive performance improvement, we are using the latest qualityenhancement techniques including TQM (Total Quality Management) and TPM(Total Productive Maintenance). We recognize that the scope for improvement inall areas of quality is endless and we are constantly training and educating ourpeople in those areas of knowledge.
Malcolm Baldrige National Quality AwardThe Malcolm Baldrige National Quality Award recognizes U.S. organizations inthe business, health care, education, and nonprofit sectors for performanceexcellence. The Baldrige Award is the only formal recognition of the performanceexcellence of both public and private U.S. organizations given by the President ofthe United States. It is administered by the Baldrige Performance ExcellenceProgram, which is based at and managed by the National Institute of Standardsand Technology, an agency of the U.S. Department of Commerce. Up to 18awards may be given annually across six eligibility categories—manufacturing,service, small business, education, health care, and nonprofit. As of 2010, 91organizations had received the award.The Baldrige National Quality Program and the associated award wereestablished by the Malcolm Baldrige National Quality Improvement Act of 1987(Public Law 100–107). The program and award were named for MalcolmBaldrige, who served as United States Secretary of Commerce during the Reaganadministration, from 1981 until Baldrige’s 1987 death in arodeo accident. In2010, the programs name was changed to the Baldrige Performance ExcellenceProgram to reflect the evolution of the field of quality from a focus on product,service, and customer quality to a broader, strategic focus on overallorganizational quality—called performance excellence.The award promotes awareness of performance excellence as an increasinglyimportant element in competitiveness. It also promotes the sharing of successfulperformance strategies and the benefits derived from using these strategies. Toreceive a Baldrige Award, an organization must have a role-model organizationalmanagement system that ensures continuous improvement in deliveringproducts and/or services, demonstrates efficient and effective operations, andprovides a way of engaging and responding to customers and other stakeholders.The award is not given for specific products or services.Footnote :As, it’s for U.S. Companies none Indian Company has received it.Thanks