Chapter-17: The Best Known TQM Assessment Award Models

17.2

THE DEMING PRIZE

This is a Japanese TQM award model which is named after the American quality guru, Dr Edward William Deming, who went to Japan in 1946 and taught them the SQC techniques. Even today, this feature of SQC is more prominent in their TQM award model. JUSE looks after the technical and administrative affairs of the DP. There is another award called Japan Medal which is given to an organization that continues to work on quality excellence after winning the DP. The time period for eligibility to take part in competition for such award is five years after winning of DP. DP also contains another award called individual category. The JUSE (1996 p. 47) asserted that TQM was a competitive business philosophy and went on to make the statement about the winners of the DP that however, in general and over the long run, Deming Prizewinning companies have experienced higher profitability and better business performance than non-Deming Prize-winning companies. 17.2.1 The DP Criteria Set The criteria set of DP model is shown in Table 17.1 as follows. It has a total of 6 factors. Result is usually a part of each enabler factor and is not shown as a separate factor. This criteria set of DP is revised as and when required by the JUSE (www.juse.or.jp). The criteria - set for 2007 is available at present. Table-17.1: Summarized Scored Criteria Set of DP Model (2007) S. No Factors Weighted Score (%) 1. Management Policies and their Deployment 20 2. 3. 4. 5. 6. New Product Development, Work Process Innovation Maintenance and Improvement Management System Information Analysis and Utilization of IT Human Resource Development Total Score 20 20 10 15 15 100

17.2.2 The DP Framework The framework of DP model is shown in Figure 17.1. This model does not work on Rocket Modeling like other NQA models.

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1. Management Policies and their Development (20 %)

5. Information Analysis and Utilization of IT (15 %)

2. New Product Development Work process Innovation (20 %)

3. Maintenance and Improvement (20 %)

6. Human Resource Development (15 %)

4. Management System (10 %) Core Quality System (50 %)

Figure-17.1: The DP Framework

17.3

THE MALCOLM BALDRIGE NATIONAL QUALITY AWARD

This TQM award was named after the American minister of commerce, a proponent of quality in the United States of America (Ashok, et al. 1996). The award was promulgated through a presidential order. The criteria set of this award model is reviewed and revised on manual basis. MBNQA is administered by American Society for Quality (ASQ) and National Institution of Standards and Technology (NIST) (Dave, October 2005; Susan, August 2002 and Susan, July 2004). The NIST (1998 p. preface) made an assertion on the MBNQA model that Baldrige winners report outstanding results; as a group those report productivity as income / employee have reported an average compounded annual growth rate over 9 %. 17.3.1 The MBNQA Criteria Set The criteria set of MBNQA model is shown in Table 17.2. It has six enabler factors and one result factor. 55% marks are allotted to enabler factors and 45% to the results. The criteria set of MBNQA is revised on annual basis (www.quality.nist.gov).

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Table-17.2: Summarized Scored Criteria Set of MBNQA Model (2008) S. No 1. 2. 3. 4. 5. 6. 7. Factors Leadership Strategic Planning Customer and Market Focus Measurement Analysis and Knowledge Management Workforce Focus Process Management Results Total Score Weighted Score (%) 12 8.5 8.5 9 8.5 8.5 45 100

17.3.2 The MBNQA Model Framework The framework of MBNQA model is shown in Figure 17.2. This framework is based on Rocket Modeling in which leadership act as Visionary Head followed by Strategy and Focus block. This is followed by System and Execution block. The Business Result shows the outcome of these six enabler factors.
Org aniz atio nal Prof ile: Envi ron men t, Rela tions hips and Chal leng es
2 Strategic Planning 1 Leadership 3 Customer and Market Focus 5 Workforce Focus 7 Results 6 Process Management

4. Measurement, Analysis and Knowledge Management

Figure-17.2: The MBNQA Model Framework

17.4 THE EUROPEAN QUALITY AWARD

The European quality award model was developed and adopted by the central European countries as their regional quality award. These countries do have their
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national quality award models as well. EQA is administered by European Foundation for Quality Management (EFQM). The EFQM (1997 p. 8) made the assertion about EQA model that this should inevitably lead to the emergence of new and more satisfied customer, fresh challenges and where appropriate new business opportunities. 17.4.1 The EQA Criteria Set The criteria set of EQA model is shown in Table 17.3. The criteria set of EQA is revised on annual basis (www.efqm.org). It has a total of 9 factors in which 5 are enabler factors and 4 are result factors. 50% marks are allotted to enabler factors and remaining 50% to results. Table-17.3: Summarized Scored Criteria Set of EQA Model (2007) S. No 1. 2. 3. 4. 5. 6. 7. 8. 9. Factors Leadership Policy and Strategy People Partnership and Resources Processes Customer Results People Results Society Results Key Performance Results Total Score Weighted Score (%) 10 8 9 9 14 20 9 6 15 100

17.4.2 The EQA Model Framework The framework of EQA model is shown in Figure 17.3. This framework is also based on Rocket Modeling approach.
ENABLES RESULTS

People Policy & Strategy

Leadership

People Results Customer Results Processes

Partnership and Resources

Society Results INNOVATION AND LEARNING 237

Key Performance Results

Part-IV: The TQM Award Models

Figure-17.3: The EQA Model Framework 17.6 THE PAKISTAN NATIONAL QUALITY AWARD Pakistan National Quality Award (PNQA) is the latest development at the national level. This award model is being developed under the National Quality Policy and Plan of Ministry of Sciences and Technology (MOST). It is still passing through the dynamic phase of establishment. National Productivity Organization (NPO) of the Ministry of Industry, Production and Special Initiatives is the ultimate custodian of this prestigious NQA. Stakeholders and partners shall include from other ministries and private sector. Its first annual assessment and award ceremony is expected in year 2008. 17.6.1 The PNQA Criteria Set The criteria set (factors only) of PNQA model with summarized weighted scores and marks are shown in Table 17.5 (Nawar, 4th quarter 2006). It has a total of 7 factors in which 6 are enablers and one is result factor. Presently, 72% marks are allotted to enablers and 28% to result factor. Detailed weighted scores of the PNQA model criteria set (both factors and elements) is shown in Annexure F at the end of the book. The criteria set of PNQA shall be reviewed and revised on annual basis (see more details on website www.npo.gov.pk). Table-17.5: Summarized Scored Criteria Set of PNQA Model (2007) S No 1 2 3 4 5 6 7 Main Factors Top Management Leadership and Management of Quality Use of Quality Data and Information Human Resource Management Customer Focus and Satisfaction Quality Assurance of External Suppliers Process Management Business Results Total 17.6.2 The PNQA Framework The framework of PNQA model is shown in Figure 17.4. This framework is also based on Rocket Modeling concept.
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Weightage (%) 15 10 15 15 10 10 25 100

Marks 150 100 150 150 100 100 250 1000

Chapter-17: The Best Known TQM Assessment Award Models

6. Process Management

1. Top Management Leadership and Management of Quality

3. Human Resource Management

4. Customer Focus and Satisfaction

5. Quality Assurance of External Suppliers

7. Business Results

2. Use of Quality Data & Information

Figure-17.5: The PNQA Model Framework

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