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BASIS  Weight Age (Out of 100

Points) 

1.Management policies and their deployment regarding quality management 20

2.New product development/or work process innovation 20

3.Maintenance and improvement of product and operational qualities 20

4.Establishment of systems for managing quality, quantity, delivery, costs,

safety, environment, etc

10

5.Collection and analysis of quality information and utilization of information

technology

15

6.Human resources development 15

THE DEMING PRIZE.

The Japanese Union of Scientists and Engineers (JUSE) created the first major management award, the

Deming Prize, to recognize "contributions to quality and dependability of product." The award is stillgenerally held as the most prestigious of all management awards, and is generally recognized as the

most highly esteemed business award offered in Japan. The JUSE instituted the award in 1950, and

began awarding the prize annually in 1951.

Interestingly, this most significant of Japan's business awards honors an American, Dr. W. Edwards

Deming. Many Japanese government and academic leaders credit Deming with revolutionizing Japanese

postwar industry through his advocacy in Japan of quality control and managerial efficiency.

The JUSE's Deming Prize Committee administers two types of awards honoring Deming: the Deming

Prize and the Deming Application Prize. The Deming Prize is given to a person or group of people who

have advanced the practice and furthered awareness of TQC. The Deming Application Prize, in turn, goes

only to companies based on successes attributable to implementing TQC.

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Beginning in 1970, the JUSE began to offer the Japan Quality Control Medal. Only those who have

formerly won a Deming Application Prize five years or more earlier are eligible for the Quality Control

Medal. The medal is intended to upgrade the quality control of former prize recipients. To this end, the

criteria for the Quality Control Medal remain the same as the Deming Application Prize and the Medal is

awarded at the same time as the other Deming Prize awards. The current aim of the examination is to

find out how well a company implements total quality control by assessing its quality-assurance policies

and activities, and by measuring the company's results in the areas of productivity improvement, quality

improvement, cost reduction, expanded sales, and increased profits.

Non-Japanese companies were allowed to apply for and receive the Deming Prize starting in 1984; the

categories that remain unavailable to non-Japanese companies include the individual prize and the

factory award.

MALCOLM BALDRIGE NATIONAL QUALITY AWARD.

The U.S. Congress created the Malcolm Baldrige National Quality Award in 1987 largely as a counterpart

to Japan's Deming Prize. The specific goal of the Baldrige Award is to heighten U.S. awareness of TQM

and to formally recognize successful quality management systems. The award is named for the U.S.

Secretary of Commerce from 1981 to 1987. Baldrige was actually helping in drafting the creation of the

award at the time of his death in a rodeo accident.

The U.S. Commerce Department's National Institute of Standards and Technology (NIST) administers theBaldrige Award. The NIST presents up to two awards each in three divisions: manufacturing, service, and

small business. The NIST gave its first awards in 1988.

The Baldrige Award judges results companies have shown through management practices in seven

specific areas. These are (1) leadership, (2) information and analysis, (3) strategic planning, (4) human

resource focus, (5) process management, (6) business results and company performance, and (7)

customer focus and satisfaction.

The Baldrige Award is open to any for-profit business in the United States. Like the Deming Prize, the

award may be won by a foreign-owned company, but unlike the Deming Prize only those foreign-owned

companies with more than 50 percent of their employees or physical assets located in the United States

are eligible.

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In addition to its more parochial focus, the Baldrige differs from the Deming Prize in three significant

ways. First, the Baldrige Award emphasizes customer perceptions and the bottom line emphasizing

clear-cut results through its seven specific areas. This makes the Baldrige more objective-oriented than

the more systemic focus of the Deming Prize.

Second, while the NIST is an independent agency, the Baldrige relies on a wide array of professional

groups to decide on its winners, while from its inception the Deming Prize has relied solely on the JUSE.

The Baldrige is consequently able to draw on a wider range of expertise among its judges than the

Deming Prize, but may be more open to charges of conflict of interest among the reviewers.

Finally, the Baldrige Award has a stated objective of sharing information while the Deming Prize does

not. Consequently, the Baldrige is more likely to make known to other companies how the winners have

achieved their success so that others may emulate them; the Deming Prize is more proprietary, allowingwinners more readily to keep company secrets if they wish, thus widening the field of companies which

may wish to participate but simultaneously limiting the benefit to other companies and to the

dissemination of TQM principles in general.

THE EUROPEAN QUALITY AWARDS.

By 1990, the European Community (now the European Union) felt that it had fallen behind Japan and

the United States in the recognition of quality management. In that year, the European Foundation for

Quality Management, with support from the European Organization for Quality and the EuropeanCommission, set about to create its own Deming or Baldrige equivalent, The European Quality Awards.

The first winners were announced in October 1992.

The initial awards favored larger, for-profit companies, so by 1996 the European Commission began to

give out additional awards for public sector organizations and for small- to mid-sized enterprises. The

awards also have a category for operational units of companies, such as factories, research units, or

assembly plants.

The European Quality Awards, regardless of category, judges applicants on nine criteria: (1) leadership;

(2) people management; (3) policy and strategy,s how the organization should manage such a change.