Great
expectations
HR
Gupta emphasises the significance of international awards like the Deming
Prize in order for companies to successfully internalise critical quality
standards
Corporate
prizes, and rewards have been instrumental in motivating individuals
and corporate entities, to recognise innovation and overall excellence
in their respective fields. In the business world, recognition of companies
for practicing international management processes gives them a high
degree of competitive advantage.
The
parabolic growth in acknowledging companies for their Quality Management
Systems according to ISO 9000, and Environment Management Systems according
to ISO 14000, is evident. Since 1991, the number of companies recognised
worldwide has crossed the 10,000 mark. The number is indicative of competitive
pressures forcing companies to solicit such recognitions and improve
their performance. It is undeniable that the progress made by Japan
in rebuilding their country, from scratch to becoming the producer of
world-class products, is unprecedented.
The
‘Deming Prize’, administered by the Japanese Union of Scientist and
Engineers (JUSE) has played a key role in this transformation. The Prize
is acknowledged globally as one of the best symbols of recognition for
building business excellence. The history of Deming Prize in Japan indicates
that it has been one of the most powerful tools used to motivate the
Japanese industry to overcome the Oil Crisis of 1972. If India has to
meet global challenges, it has to look for appropriate recognition in
the international arena to qualify for international comparison.
In
the past five years, 10 Indian companies have received 11 prizes in
various categories of the Deming Prize. This certainly speaks volumes
about the capabilities of the Indian industry and the confidence it
generates. India is poised to become a manufacturing base for the world
and the Deming Prize can help us achieve our dreams.
In
1950, when Japan was struggling to overcome the damage caused by World
War II, William Edwards Deming, the management guru from US, was invited
by JUSE to guide and improve industry performance. Dr Deming’s mantra
for the industry was to use statistical tools for solving quality related
problems. The organisers recorded the lectures delivered by Dr Deming
and sold the proceedings to industries across Japan. Subsequently Dr
Deming authored a book titled ‘Some Theory of Sampling’ and released
it in Japan.
The
royalty money collected from such sales was donated to JUSE. In 1951,
the organisers used this money to institute a prize for the industry.
As a token of appreciation towards Dr Deming’s gesture of generosity,
the prize was named after him. JUSE has listed the following benefits
that have accrued to the Japanese industry by competiting for the Deming
Prize regularly.
QUALITY
STABILISATION
By
disseminating the concept of quality and the optimum and effective management
of business processes accross the organisation, companies have improved
their day-today operations. At the same time, statistical quality control
methods have been utilised and a quality assurance system has been established.
These activities, together with an enhanced quality consciousness, have
allowed companies to provide customers with quality products and services.
The
end result also reflected in a significant reduction in development
and design trouble. Part, production, installation and service defects
have also been curtailed. To a large extent expected product and service
quality has been achieved, and it has become possible to positively
satisfy customers.
PRODUCTIVITY
IMPROVEMENT
Significant
effects have been achieved as a result of the following improvements:
•
Reduced development and design problems during the new product development
stage
• Decreased part defects or reduced process problems due to the
spread of TQM promotion with vendors
• Lower manufacturing defects and reduction of rework and adjustment-work
at the manufacturing stage
• Reduced installation defects impacting construction companies
• Through a systematic approach to cost reduction during new product
development, competitive cost targets have been achieved.
EXPANDED
SALES
Through a systematic approach to satisfying customer requirements, the
companies have achieved improved customer satisfaction and thus, have
been able to expand their sales. Furthermore, they have strengthened
their management system for the initial distribution of new
.........CONTD
