The Notes of Deming Award

The W. Edwards Deming Institute® is a nonprofit organization that was founded in 1993 by noted consultant Dr. W. Edwards Deming.

The aim of the Institute is to foster understanding of The Deming System of Profound Knowledge™ to advance commerce, prosperity and peace.

Participation in The W. Edwards Deming Institute® means that we share Dr. Deming's vision of a better world. We participate because we strive, with joy, to carry on the work that he began. We seek to conduct ourselves in a manner consistent with his high moral and ethical standards, professional and personal integrity, and commitment to lifelong learning. We do this solely from our dedication to the philosophy and values of Dr. Deming and our belief that together, with humility, we can and will make a difference in the quality of life for everyone.

The Deming Prize is one of the highest awards on TQM (Total Quality Management) in the world. It was established in 1951 in commemoration of the late Dr. William Edwards Deming who contributed greatly to Japan’s proliferation of statistical quality control after the World War II. His teachings helped Japan build its foundation by which the level of Japan’s product quality has been recognized as the highest in the world.

HOW WAS THE DEMING PRIZE ESTABLISHED?

The late Dr. W. E. Deming (1900 - 1993), one of the foremost experts of quality control in the United States, was invited to Japan by the Union of Japanese Scientists and Engineers (JUSE) in July 1950.   

Upon his visit, Dr. Deming lectured day after day his "Eight-Day Course on Quality Control" at the Auditorium of the Japan Medical Association in Kanda-Surugadai, Tokyo.   This was followed by Dr. Deming's "One-Day Course on Quality Control for Top Management," held in Hakone.   Through these seminars, Dr. Deming taught the basics of statistical quality control plainly and thoroughly to executives, managers, engineers and researchers of Japanese industry.   His teachings made a deep impression

on the participants' mind and provided great impetus to quality control in Japan, which was in its infancy.

The transcript of the eight-day course, "Dr. Deming's Lectures on Statistical Control of Quality," was compiled from stenographic records and distributed for a charge.   Dr. Deming donated his royalties to JUSE.   In appreciation of Dr. Deming's generosity, the late Mr. Kenichi Koyanagi, managing director of JUSE, proposed using it to fund a prize to commemorate Dr. Deming's contribution and friendship in a lasting way and to promote the continued development of quality control in Japan.   Upon receiving the proposal, the JUSE's board of directors unanimously made a resolution to establish the Deming Prize.

CATEGORIES OF THE DEMING PRIZE

As shown in the table below, the categories of the Deming Prize are the Deming Prize for Individuals, the Deming Distinguished Service Award for Dissemination and Promotion (Overseas) and the Deming Application Prize.

The Deming Prize for Individuals

For individuals or groups

Given to those who have made outstanding contributions to the study of TQM or statistical methods used for TQM, or those who have made outstanding contributions in the dissemination of TQM

The Deming Distinguished Service Award for Dissemination and Promotion (Overseas)

For individuals whose primary activities are outside Japan

Given to individuals who have made outstanding contributions in the dissemination and promotion of TQM. Examination will be carried out every 3-5 years.

The Deming Application Prize

For organizations such as companies, institutes, divisions of organizations, operational business units and headquarters office (organization, hereafter)

Given to organizations that have implemented TQM suitable for their management philosophy, scope/type/scale of business, and management environment (Annual award)

DEMING PRIZE FOR INDIVIDUALS

What is the Deming Prize for Individuals?

The Deming Prize for Individuals is an annual award given to

(1) individuals who have made outstanding contributions to the study of TQM or statistical methods used for TQM, or

(2) individuals who have made outstanding contributions in the dissemination of TQM.

To apply for the Deming Prize for Individuals, recommendation from the members of the Deming Prize Committee will be necessary. Any individual who fulfils the above (1) or (2) may apply for the Prize regardless of nationality. However, those whose activities are limited to outside Japan are not eligible for application.

How to recommend or apply for the Deming Prize for Individuals : Due date: July 31st*

(*When the due date for an application or submission falls on a Saturday or Sunday, it will be extended to the following Monday. This rule applies to all of the other submittal due dates.)

The Deming Prize Committee welcomes candidates to apply or make recommendations for others for the Deming Prize for Individuals. There is no difference in the examination process regardless if the candidates have been recommended by others or self-applied.The recommendation/application deadline is July 31st.

Examination

There is no difference in the examination process regardless if the candidates have been recommended by others or self-applied.When recommended by others, the candidate may be asked to submit the records of his/her achievement.The Deming Prize for Individuals Subcommittee examines and selects the candidates for the Prize and reports to the Deming Prize Committee.

Determination of the winners : Mid-October

According to the report by the Subcommittee, the Deming Prize Committee determines the winners of the Prize and notifies them.

1.5 Public announcement of the winners : Mid-October

After the Prize winners have been determined by the Deming Prize Committee as mentioned above, the winners are announced in the following publications and the reasons for receiving the Prize are stated:

1) The "Nippon Keizai Shimbun" (Japan Economic Journal)

2) The monthly magazine "Quality Management" (published by JUSE)

3) The monthly magazine "JUSE News" (JUSE Newsletter)

4) JUSE Home Page

Award ceremony : Mid-November

The winners receive the Deming Medal with an accompanying Certificate of Merit from the Deming Prize Committee and supplemental prize money from "Nippon Keizai Shimbun."

Winners' Presentations

Winners' Presentations follows the award ceremony.

DEMING APPLICATION PRIZE

What is the Deming Application Prize?

The Deming Application Prize is an annual award presented to an organization that has implemented TQM suitable for its management philosophy, scope/type/scale of business, and management environment.Regardless of the types of business, any organization can apply for the Prize under certain conditions, be it public or private, large or small, domestic or overseas, or part of or entire organization.There is no limit to the number of potential recipients of the Prize each year. All organizations that score the passing points or higher upon examination will be awarded the Deming Application Prize.

Organizations Qualified for Receiving the Prize

The Deming Application Prize is given to applicant organizations that have implemented TQM suitable for their management philosophy, scope/type/scale of business, and management environment.

a) Customer-oriented business objectives and strategies are established in a positive manner according to the management philosophy, type of industry, business scale, and business environment with the clear management belief.

b) TQM has been implemented properly to achieve business objectives and strategies as mentioned Item a) above.

c) The business objectives and strategies in the Item a) above have been achieving effects as an outcome of the Item b) above.

How to apply for the Deming Application Prize : Due date February 20th

The application form must be completed and submitted with necessary documents. The application deadline is February 20th.

Examination

The Deming Application Prize Subcommittee examines and selects the candidates for the Prize.A document examination will be carried out based on the Description of TQM Practices submitted by the applicant organization. If the applicant organization passes the document examination, an on-site examination will be conducted. The Subcommittee makes judgment according to the evaluation criteria and reports the results to the Deming Prize Committee.The examination process is not open to the public, and all possible measures are taken to ensure the confidentiality of applicant organizations.

Determination of the winners : Mid-October

According to the report by the Subcommittee, the Deming Prize Committee determines the winners of the Prize and notifies them.In the event that the applicant has not attained passing points, final judgment is reserved and, unless the applicant requests withdrawal, the status is considered as "continued examination." Subsequent examinations are limited to twice during the next three years.

Public announcement of the winners : Mid-October

After the Prize winners have been determined by the Deming Prize Committee as mentioned above, the winners are announced in the following publications and the reasons for receiving the Prize are stated:

1) The "Nippon Keizai Shimbun" (Japan Economic Journal)

2) The monthly magazine "Quality Management" (published by JUSE)

3) The monthly magazine "JUSE News" (JUSE Newsletter)

4) JUSE Home Page

Award ceremony : Mid-November

The winners receive the Deming Medal with an accompanying Certificate of Merit from the Deming Prize Committee. The winners also receive a written report on the examination findings (including recommendations for future improvement of their TQM activities.)

Winners' Presentations

Winners' Presentations follow the award ceremony.

Status Report and Post-Prize Review Three Years after Receiving the Prize

The prize-winner is requested to submit a short report on the status of its TQM practices three years after having received the prize. As a rule, post-prize review for about half-day will be conducted based on the report.

In lieu of this review, the prize winner company may chose the following to further promote and develop its TQM:

1) To receive TQM Diagnosis by the Deming Prize Committee Members.

2) To receive the examination for the Japan Quality Medal.

As for the details, please contact the Secretariat for the Deming Prize Committee.For more detailed information about the application procedures and the examination criteria, please refer to "The Deming Prize Application Guide".

TQM DIAGNOSIS BY THE DEMING PRIZE COMMITTEE

Recommended for preparing for the Deming Prize challenge or grasping the level of TQM.

(*) Carrying out the TQM Diagnosis by the Deming Prize Committee is a mandatory requirement upon application for the Deming Prize/Japan Quality Medal. In the event that the application is made to prepare for the Deming Prize/ Japan Quality Medal challenge, the pre-application consultation will also be carried out by the examiners during the on-site TQM diagnosis.

(*) It is also noted that the TQM diagnosis with an aim to prepare for the Deming Prize/Japan Quality Medal will be carried out once, unless otherwise granted by the committee due to changes in application unit, application scope, applicant's organization etc.

1. What is the TQM Diagnosis?

It is useful to have a third party objectively diagnose the implementation status of TQM and provide recommendations so that the organization can better understand where it stands and what it has to do to promote TQM more effectively.

Established in 1971, the TQM Diagnosis, which is provided by the Deming Application Prize Subcommittee upon request of an organization, aims to contribute to the further development of that organization's TQM.

The TQM Diagnosis is not a preliminary Japan Quality Medal/Deming Application Prize examination.   However, since 2000, the connection between the TQM diagnosis and the Japan Quality Medal/Deming Prize examination has become strengthened. An organization that receives the TQM Diagnosis cannot apply for the Japan Quality Medal/Deming Prize examination that same year.

2. TQM Diagnosis Procedures

The purpose of the TQM Diagnosis is to further advance the promotion and practice of effective TQM in organizations under diagnosis.   The TQM diagnosis and resulting guidance is provided from an objective viewpoint to organizations at varying stages of TQM advancement as indicated below.   Those organizations that wish to receive the TQM Diagnosis must complete and submit the application form with necessary documents at least three months prior to the desired diagnosis dates.   However, no diagnosis will be conducted during the Deming Prize examination period (early July to mid-October)in principle.

a)  To receive a diagnosis and recommendations for the introductory or promotional stage of TQM. b)  To receive a diagnosis and recommendations for making an effective use of the Deming Application Prize challenge.

c)  To receive a diagnosis and recommendations for making an effective use of the Japan Quality Medal challenge, in lieu of receiving the Post-Prize review three years after receiving the Deming Application Prize.

The Deming Application Prize Subcommittee conducts the TQM Diagnosis. While the details of the diagnosis program will be determined in consultation with the applicant organization, the methods and documents used for the diagnosis follow those for the Deming Application Prize.   As a rule, the diagnosis will be based on the organization's presentations, the on-site examination, the document review and questions and answers. The results of the diagnosis will be communicated through a report on the diagnosis findings after the findings of all the examiners who conducted the diagnosis have been compiled.   Those companies that wish to receive the TQM Diagnosis should contact the JUSE Secretariat for the Deming Prize Committee.

2010 The Deming Prize Awarding CeremonyThe Deming Prize 60th Anniversary Commemorative Program

The Deming Prize Award Ceremony as well as the Deming Prize 60th Anniversary Commemorative Program was held at the Keidanren Kaikan in Otemachi, Tokyo on November 9, 2010.

Marking the 60th anniversary of the Deming Prize since its establishment, the Deming Prize Award Ceremony this year was held with the commemorative program participated by the distinguished guest speakers. Upon opening the event, congratulatory address was made by Dr. Tetsuichi Asaka (shown at left in the photo), one of the Quality Management pioneer and professor emeritus at the Tokyo University, followed by the commemorative speech from Dr. Shoichiro Toyoda (center in the photo), Chairman of Toyota Motor Corporation. Dr. Noriaki Kano (right in the photo), the leading quality expert and professor emeritus at Tokyo University of Science delivered a lecture by referring to the history of the Deming Prize, its role in the industry, and what is expected to the prize in the future.

Prior to the Commemorative Program, 2010 the Deming Prize Winners Presentation and awarding ceremony took place. Brief introduction of the award winners are as follows.

The Deming Prize for Individuals

Dr. Takao EnkawaProfessor, Department of Industrial Engineering and ManagementGraduate School of Decision Science and TechnologyTokyo Institute of Technology

Dr. Enkawa has been engaging in research, education, and university operation as a professor and by assuming the position as a head of the department twice at the graduate school of Tokyo Institute of Technology. Prominent rolls he has fulfilled include president of Japanese Society for Quality Control, chairman of Japan Federation of Managerial Engineering Societies, member of the Science Council of Japan and government council, to name a few. Through his careers, Dr. Enkawa further advanced quality management studies extensively and made a significant contribution for the development of human resources and structure for future quality management research and training. He has also put an enormous effort to enlighten and promote quality management in the industry and to improve the quality of social infrastructure businesses.

The Deming Application Prize

Corona Corporation Production Division (Japan)

Corona Corporation is a manufacturer and distributer of heating appliances, air-conditioners, household electrical appliances, and housing equipments. The production of pressure type kerosene heater was first launched at Corona. It was 1937 when the Production Division was established in the company and by

implementing TQM and CQM, unique to Production Division, as the main pillar, the division reinforced the business infrastructure that adhere to the domestic production. Such positive approach has been carried on since 2002 under the division's objective to innovate the production structure and pattern. Throughout this period, the production division successfully improved quality and cost competitiveness by innovating production technology and enhanced producing function centering on human resource development as the business foundation.

Meido Co., Ltd. (Japan)

Meido Co., Ltd. is a manufacturer specialized in bolts production established in 1924. After being awarded for its excellence in quality management by a major automobile company, Meido has promoted quality management using such tools as TPS and TQM and received TPM Excellence Award and ISO Certification. Meido's managerial goal is to become No.1 in the bolt industry by 2015. For realization of the goal, Meido

reinforced technical strength and process management capability in order to enhance the competitive superiority. As a result, the company has achieved considerably low in-process defect rate and avoided them completely from flowing into the market. In 2009, Meido accomplished their objective by becoming the biggest supplier of the high-strength bold to the major auto

company.

GC Dental (Suzhou) Co., Ltd. (China)

GC Dental (Suzhou) Co., Ltd. is a manufacturer and distributer of dental products and was established in 2002 under the global strategic framework in GC Group. The company was certified for ISO13485, quality management systems for medical devices, in 2005. TQM activity called GQM was also launched at this time. After the consolidation with

GC Shanghai for the integration of their production and marketing in 2007, GC Dental (Suzhou) not only reinforced the system of its own to build in quality to the products, the company has also drastically improved the 20 indicators related to productivity. GC Dental (Suzhou) continues to grow steadily toward their goal to become No. 1 dental products manufacturer in China in 2021, the year of GC Group's 100 year anniversary.

National Engineering Industries Limited (India)

National Engineering Industries Limited was established in 1946 as part of C. K. Birla Group and has been evolving over the years. Based on TPM, TQM was introduced in the company in 2007. To cope with the severe competitive environment, National Engineering has practiced policy deployment, daily management and utilized learning and information system by building technical alliances within the organization. The company also put an effort to foster human resources and QC Circle activity, carried out continuous TPM activity, productivity improvement, and process maturation activities. As a result, total efficiency and quality of the plant facilities at National Engineering were increased and the amount of sales and profits were boosted.

Winners expressed full of joy in their remarks. As the representative of the guest of honor, congratulatory address was delivered by Mr. Yutaka Tokiwa, Ministry of Education, Culture, Sports and Technology of Japan. We wish the prosperous future to all the winners.

The Deming prize, established in December 1950 in honor of W. Edwards Deming, was originally designed to reward Japanese companies for major advances in quality improvement. Over the years it has grown, under the guidance of Japanese Union of Scientists and Engineers (JUSE) to where it is now also available to non-Japanese companies, albeit usually operating in Japan, and also to individuals recognized as having made major contributions to the advancement of quality. The awards ceremony is broadcast every year in Japan on national television.

Two categories of awards are made annually, the Deming Prize for Individuals and the Deming Application Prize.

TQM is an integrative philosophy of management for continuously improving the quality of products and processes. [1] It is used around the world.

TQM functions on the premise that the quality of products and processes is the responsibility of everyone who is involved with the creation or consumption of the products or services offered by an organization. In other words, TQM capitalizes on the involvement of management, workforce, suppliers, and even customers, in order to meet or exceed customer expectations. Considering the practices of TQM as discussed in six empirical studies, Cua, McKone, and Schroeder (2001) identified the nine common TQM practices as cross-functional product design, process management, supplier quality management, customer involvement, information and feedback, committed leadership, strategic planning, cross-functional training, and employee involvement. [2]