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TQM Assignment
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2. Deming Prize
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.
India Receiving Deming Prize
Year Company
1998 Sundaram-Clayton Limited, Brakes Division
2001 Sundaram Brake Linings Limited.
2002 TVS Motor Company Limited
Hi-Tech Carbon GMPD
2003 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 Limited
2005 Krishna Maruti Limited, Seat Division
Rane Engine Valves Limited
Rane TRW Steering Systems Limited, Steering Gear Division

3. 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) Limited
Companies 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 by
the Union of Japanese Scientists and Engineers (JUSE).
On 14th November 2007, AIS was recognised for its obsession to quality and
focus on Total Quality Management (TQM) practices as its Auto Glass Division
was conferred the prestigious Deming Application Prize 2007. It is a matter of
great pride and joy that AIS is one of the just fourteen Indian companies who
have won this award and is the only glass manufacturer in India who has been
so honoured.
The Deming Application Prize is one of the highest quality awards across the
globe. The prize is administered and awarded by the Union of Japanese
Scientists and Engineers (JUSE).
The Deming Application Prize was established in December, 1950 in the honour
of Dr. W. E. Deming, one of the foremost experts of quality control in the United
States of America. It was originally designed to reward Japanese companies for
major advances in quality improvement. Over the years it has grown, under the
guidance 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, based
on the participation of all its members and aiming at long-term success though
customer satisfaction, cascading of benefits to all members of the organization
and to the society.

4. The Deming Application Prize is presented to a Company that has achieved
distinctive performance improvements through the application of TQM, based on
which the following results must be clearly visible:
Formulation and application of such business objectives and strategies which are
challenging and customer oriented.
Development, implementation and institutionalisation of TQM methods across
the 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 model
provided by the Deming Prize Committee. Rather, the applicants are expected to
understand their current situation, establish their own themes & objectives and
improve & transform themselves company-wide. Not only the results achieved
and the processes used, but also the effectiveness expected in the future are
subject to examination. Organisations that have won the Deming Prize feel that
the process of institutionalising TQM has helped them in achieving business
growth, created customer delight through quality and has helped the
organisation to transform itself.
Rane (Madras) Limited
Deming 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 year
2000.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

5. Reliance Industries Limited, Hazira
Manufacturing Division (India)
For the first time ever, globally, a petrochemical company bagged the ―Deming
Prize for Management Quality‖. ―The Quality Control Award for Operations
Business Unit 2007‖ was awarded to the Hazira Manufacturing Division for
Outstanding Performance by Practicing Total Quality Management.
The Hazira Manufacturing Division of Reliance Industries Limited (RIL) has
made India proud by winning the Deming Prize. We are the first global
petrochemical unit to be awarded this prestigious prize for management quality.
The Quality Control Award for Operations Business Unit 2007 was awarded to
the Hazira Unit for Outstanding Performance by Practicing Total Quality
Management. The annual award by the highest quality control body in Japan
was conferred to the Hazira division for utilizing statistical concepts and
methodology based on the unit’s excellent business philosophy and leadership
demonstrated by the senior management.
The Deming Prize was instituted in 1951 by Japan to honour the man who gave
Management Quality to the world, W. Edwards Deming. It is governed by JUSE
(Japanese Union of Scientists and Engineers) which audits a large number of
companies and plants annually before conferring the award.
Receiving the award on behalf of Reliance, Mr. H.S. Kohli, Executive Director of
the company and head of the Hazira unit said, ―In 1998 Hazira set itself on
course of the management quality street by integrating Deming’s main principles
of Management Quality practices. With the dedicated efforts of our people and
guidance by JUSE the journey was accomplished.‖
Tata Steel Limited
Tata Steel is the first integrated steel company in the world, outside of Japan, to
win the Deming Application Prize.
The steel giant won the 2008 prize for achieving distinctive performance
improvements through the application of total quality management
(TQM).Avneesh Gupta, chief (TQM) at Tata Steel spoke toGayatri Kamath about
the journey of enlightenment and the sense of responsibility that comes with
winning this coveted prize awarded by the Japanese Union of Scientists and
Engineers (JUSE).

6. What is the significance of this prize?
The Deming Application Prize is considered to be the highest award in the area
of TQM. Total quality stands for not just quality of products and services, but
also the processes and activities that are needed to achieve quality. In the world
of quality awards, this prize is like a gold standard.
The prize was started in 1951 in memory of Edward Deming who was
instrumental in teaching the concepts of quality to the Japanese. The Deming
Application Prize tests the application of TQM within a company. The criteria
include:
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 TQM
The focus here is on application – what sort of systematic methods and activities
have been applied to achieve our objectives and strategies and what is the effect
of this. The concept is that we need to demonstrate our ability to use TQM to
achieve our desired goals rather than our capability (potential).
How does it impact Tata Steel's 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 the
award – an indication of the effort that is necessary. Thus the impact is
significant 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 the
company initiated several quality activities – quality circles, ISO certification,
quality improvements using Juran methods, etc. After winning the JRD QV
Award in 2000, the question we faced was how to achieve the next quantum
jump 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, we
conducted a TQM diagnosis along with the JUSE team; that gave us the status
of our TQM implementation and helped us uncover a lot of areas that required
improvement in both our processes and culture. The TQM diagnosis gave us
deeper understanding and clarity on our approach to quality: what areas should
be addressed, who should get involved in what activities, etc. We specifically
looked at:

7. 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 people
had rallied behind the goal of winning the Deming prize and a lot of
improvement activities had been further refined.
The long term impact is that we have been able to push forward in our excellence
journey. More importantly we have put in place some fundamental approaches in
the organisation which will help us to leverage them for the performance
improvement of Tata Steel. We have established that TQM is necessary for
achieving business goals. Our revised half-yearly (H2) plan has identified
enablers that address savings and benefits for the company; many of these
methods use TQM approaches – for instance, how to optimise use of consumables
such as lime, zinc, etc, how to reduce turnaround or shut down times through
critical chain project management, etc. Basically, what has changed is our
approach, how we apply TQM to attain our business targets. We are looking at
more 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 nearly
everyone in the organisation was a part of it. We were able to engage many of
the front line or operating units in this; there were champions in each of the
departments.
What were the challenges and hurdles to achieving this award? How were they
overcome?
The most fundamental challenge was to create a mindset that looks at
improvement activities as essential for achieving targets and goals. This is where
the examiners focus. The biggest challenges lay in creating this understanding
across the organisation, dealing with 35,000 employees, in explicitly stating and
documenting improvement targets and how to go about achieving these in a
systematic manner, in standardising approaches and creating alignment to
profits and goals, and so on. Equally challenging was to bring quality to the
forefront, which was addressed by formulating customer focused objectives and
strategies 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 and
iron, flat products, long products and shared services). Each unit had two
applications – one for the overall unit, and one representing each of the

8. departments of the division. We had to create guidelines and reference manuals
to have uniformity and alignment.
How does the Deming award criteria differ from the Tata Business Excellence
Model (TBEM)?
The difference is in the focus rather than the content. The Deming award criteria
looks for application which runs vertically cutting across processes/ items, rather
than looking at processes horizontally the way TBEM criteria are applied. They
test the application rather than only the approach. Deming looks at applying the
basic principle of TQM – the Plan-Do-Check-Act method.
The other key difference is the rigour of the examination process. It looks for
application both in business units and the corporate functions. For us there were
six examination units covering 52 departments in all. Each unit was examined
for two days, so there were 12 days of examination which spread for about a
month (4th of August to the 5th of September). There were 26 examiners, each
having a lot of experience and expertise both in theory and application in their
field.
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 very
intense and time consuming effort both for the company and the examination
body. Usually organisations continue to reap benefits out of one such effort for
many years and put some internal diagnosis (assessment) system in place. Tata
Steel will also not apply again for the Deming award in 2009. There is a next
level – called the Japan Quality Medal. You become eligible three years after
winning the Deming prize. We will decide in due course.
National Engineering Industries Limited
NEI Ltd. has been awarded the coveted 2010 Deming Application Prize, by the Union of
Japanese Scientists and Engineers (JUSE), Japan, for achieving distinctive performance
improvement through the application of Total Quality Management (TQM).The Deming
medal confirms that our quality management systems are one of the best ,globally .For
our customers, this means enjoying consistently superior products and assurance of
highest quality for every NBC bearings they use .
R&D is equipped to introduce new technology in the field of bearings and related
products .All functions from concept design to product launch are an integral part of
R&D . The activity begins from customer interaction by Application Engineering and
QFD approach is used to understand customer requirements to translate into a useful
product . 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 Lubrication
technology have been added .The centre relies on the associate strength that has vast

9. experience in the bearing industry . Academics excellence is being promoted by inclusion
of specialists from IIT’s and REC’s .The centre will be a leading technology centre in
next 4 to 5 years.
NEI stands committed to an endless journey of continuous improvement through TQM.
Sanden Vikas (India) Limited
Sanden Vikas (India) Limited, (India)
Mr. Naveen Agarwal, Executive Director & COO
Quality is a passion with SVL and we attach the greatest importance to the
achievement of the best global quality levels. We are certified to the relevant
International Quality Standards. These include ISO/TS 16949 and also the
Environmental Standard ISO 14001: 2004.
To achieve distinctive performance improvement, we are using the latest quality
enhancement techniques including TQM (Total Quality Management) and TPM
(Total Productive Maintenance). We recognize that the scope for improvement in
all areas of quality is endless and we are constantly training and educating our
people in those areas of knowledge.

10. Malcolm Baldrige National Quality Award
The Malcolm Baldrige National Quality Award recognizes U.S. organizations in
the business, health care, education, and nonprofit sectors for performance
excellence. The Baldrige Award is the only formal recognition of the performance
excellence of both public and private U.S. organizations given by the President of
the United States. It is administered by the Baldrige Performance Excellence
Program, which is based at and managed by the National Institute of Standards
and Technology, an agency of the U.S. Department of Commerce. Up to 18
awards may be given annually across six eligibility categories—manufacturing,
service, small business, education, health care, and nonprofit. As of 2010, 91
organizations had received the award.
The Baldrige National Quality Program and the associated award were
established by the Malcolm Baldrige National Quality Improvement Act of 1987
(Public Law 100–107). The program and award were named for Malcolm
Baldrige, who served as United States Secretary of Commerce during the Reagan
administration, from 1981 until Baldrige’s 1987 death in arodeo accident. In
2010, the program's name was changed to the Baldrige Performance Excellence
Program to reflect the evolution of the field of quality from a focus on product,
service, and customer quality to a broader, strategic focus on overall
organizational quality—called performance excellence.[1]
The award promotes awareness of performance excellence as an increasingly
important element in competitiveness. It also promotes the sharing of successful
performance strategies and the benefits derived from using these strategies. To
receive a Baldrige Award, an organization must have a role-model organizational
management system that ensures continuous improvement in delivering
products and/or services, demonstrates efficient and effective operations, and
provides 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