The Comparison of the Deming

Prize and the Baldrige Award

- Handouts -

The Deming Prize

The Deming Prize is Japans national quality award for industry. It

was established in 1951 by the Japanese Union of Scientists and
engineers (JUSE) and it was named after W. Edwards Deming.
He brought statistical quality control methodology to Japan after
W.W.II.
The Deming Prize is the worlds oldest and most prestigious of such
awards. Its principles are a national competition to seek out and
commend those organizations making the greatest strides each
year in quality, or more specifically, TQC.
The prize has three award categories.
They are Individual person, the Deming Application Prizes, and the
Quality Control Award for factory.
The Deming Application prizes are awarded to private or public
organizations and are subdivided into small enterprises, divisions of
large corporations, and overseas companies.
There are 143 companies who won the prize. Among them, only
once has the Deming Prize been awarded to a non-Japanese
company: Florida Power and Light in 1989.

Baldrige Award

The Baldrige Award was established in 1987 to promote quality

awareness, understand the requirements for quality excellence, and
share information about successful quality strategies and benefits.
There are three eligibility categories: manufacturing, services, and
small firms.
Unlike the Deming Prize, public or not-for-profit organizations are
not qualified.
Also, there is no category in which all applicants that satisfy a given
level of performance receive a quality prize.
Since its foundation, there are only five companies who received
this prize. According to its principles, the role of quality data
collection and analysis as the basis for managerial decisions is
paramount. Furthermore, quality efforts should not concentrate only
on the elimination of defects but also encompass creative activities
that will influence customer satisfaction.
Among Baldrige winners, there are no service companies.

Check list of application for Malcom Baldrige

National Quality Award
Maximum score Percentage
of sub-total
1.0

Leadership

15%

1.1

Leadership of top-ranking managers

50

1.2

Policy

30

1.3

Management control system and quality improvement process

30

1.4

Allocation and utilization of resources

20

1.5

Responsibility to society

10

1.6

Unique and creative leadership technique

10

2.0

Information and analysis

7.50%

2.1

Utilization of analysis technique or system

15

2.2

utilization of information about product quality and servicing quality

10

2.3

Customer data and analysis

20

2.4

Analysis of quality and data of subcontractor

10

2.5

Analysis of quality and data of distributor or sales agent

10

2.6

Employee-related data and analysis

2.7

Unique and innovative analysis of information

Check list of application for Malcom

Baldrige National Quality Award, 2
3.0

Quality of strategy planning

7.50%

3.1

Operation target and strategy target

20

3.2

Function of planning

20

3.3

Quality improvement plan

30

3.4

Unique and innovative planning for strategy

4.0

Utilization of human resources

15%

4.1

Control and operation

30

4.2

Quality-consciousness and participation of employees

50

4.3

Training and education concerning quality

30

4.4

Personnel assessment, motivation, award system

30

4.5

Unique and innovative strategy concerning utilization of human resource

10

Check list of application for Malcom

Baldrige National Quality Award, 3
5.0

Quality assurance of product and servicing

15%

5.1

Reflection of customers opinion on product and servicing

20

5.2

Development of new product and new servicing

20

5.3

Design of new product and new servicing

30

5.4

measurement, standardization, data system

10

5.5

Engineering

10

5.6

Audit

15

5.7

Recording

10

5.8

Safety, health and sanitation, environment

10

5.9

Assurance/effectiveness

15

5.10 Unique and innovative approach to quality assurance of product and servicing 10

Check list of application for Malcom

Baldrige National Quality Award, 4
6.0

Result of quality assurance of product and servicing

10%

6.1

Reliability and achievement of product and servicing

25

6.2

Reduction of scrap, rework, rejection concerning product and servicing

20

6.3

Reduction of complaint and claim suit concerning quality

25

6.4

Reduction of assurance- or site-related assistance operation

20

6.5

Innovative index and economic gain for quality improvement

10

7.0

Customer satisfaction

30%

7.1

Quality of product and servicing from customers viewpoint

100

7.2

Comparison of competitiveness of product and servicing

50

7.3

Customer servicing and countermeasure for complaint

75

7.4

Assurance from customers viewpoint

50

7.5

Unique (or innovative) technique to grasp customer satisfaction

25
Total

1000

100%

Eight Critical Factors

A plan to keep improving all operations continuously
A system for measuring these improvements accurately
A strategic plan based on benchmarks that compare the
companys performance with the worlds best
A close partnership with suppliers and customers that feeds
improvements back into operations
A deep understanding of the customers so that their wants can
be translated into products
A long-lasting relationship with customers, going beyond the
delivery of the product to include sales, service, and ease of
maintenance
A focus on preventing mistakes rather than merely correcting
them
A commitment to improving quality that runs from the top of the
organization to the bottom

Comparison of the Deming Prize and Baldrige Award

Topic

Baldrige Award

Deming Prize

Definition of
Quality

customer-driven quality it views quality

as defined by the customer

conformance to specifications it views quality

as defined by the producers

Primary Focus

customer satisfaction and quality

statistical quality control

Overall
Approach

quality of management

management of quality

Purpose

promote competitiveness through total

quality management

promote quality assurance through statistical

techniques

Types of
Organization

manufacturing, service and small business

essentially private or public manufacturing

Orientation

60% result, 40% process

60% process, 40% results

Scoring Weight

different weight for each criteria

equal weight in 10 criteria

Consideration

less concern

concern in productivity, delivery, safety, and

environment

Information
Management

heavily concern

less concern

Continuous of
the award

N/A

Japan Quality Control Medal

Winners

Maximum of two per category

All firms meeting standard

Scope

U.S. firms only

Firms for any country

Applications

$2500 and 75 pages packet

1000 pages and one year working with

consultant from the union of Japanese Scientist
& Engineers

Grading time

six months

one year

Comparison of the Deming Prize and Baldrige Award, 2

Topic

Baldrige Award

Deming Prize

Grading
Criteria

1.

1.

Leadership

Policy and Objectives

of top-ranking managers

pursued for management

quality & QC

policy

method of establishing
quality

management control
system & quality improvement
process

justifiability and
consistency of policies

allocation and utilization

of resources

review of policies and the

result achieved

responsibility to society

unique and creative

leadership technique

relationship between
policies and long term & short
term planning

Comparison of the Deming Prize and Baldrige Award, 3

Topic

Baldrige Award

Deming Prize

Grading
Criteria

2.

2.
Organization and its
Management

Information and Analysis

utilization of analysis
technique or system

explicitness of the scopes of

authority and responsibility

utilization of information
about product quality and servicing
quality

interdivisional cooperation

committees and their activities

utilization of staff

customer data and analysis

analysis of quality and data of

subcontractor and distributor or sales
agent

utilization of QC Circle
activities

QC diagnosis

Comparison of the Deming Prize and Baldrige Award, 4

Topic

Baldrige Award

Deming Prize

Grading
Criteria

3.

3.

Quality of Strategy Planning

operation target and strategy

target

Education and dissemination

education program and results

degrees of understanding of

function of planning

QC

quality improvement plan

teaching of statistical
concepts and methods

unique and innovative

planning for strategy

QC

grasp of the effectiveness of

QC circle activities

system of suggesting ways of

improvements and its actual
conditions

Comparison of the Deming Prize and Baldrige Award, 5

Topic

Baldrige Award

Deming Prize

Grading
Criteria

4.
Utilization of Human
Resource

4.
Collection, Dissemination and
Use of Information on Quality

control and operation

collection of external
information

quality consciousness and

participation of employees

transmission of information
between divisions

training and education

concerning quality

speed of information
transmission

personnel assessment,
motivation, award system

data processing, statistical

analysis of information and
utilization of the results

innovative strategy
concerning utilization of human
resource

Comparison of the Deming Prize and Baldrige Award, 6

Topic

Baldrige Award

Deming Prize

Grading
Criteria

5.
Quality Assurance of Product
and Servicing

5.

reflection of customers
opinion on product and servicing

selection of key problems and

themes

design and development of

new product and new servicing

propriety of the analytical

approach

Analysis

measurement, standardization,
utilization of statistical
data system
methods

engineering, audit, recording

linkage with proper

technology

safety, health and

sanitation, ,environment

quality analysis, process

analysis

approach to quality assurance

of product and servicing

utilization of analytical results

assertiveness of improvement
suggestions

Comparison of the Deming Prize and Baldrige Award, 7

Topic

Baldrige Award

Deming Prize

Grading
Criteria

6.
Result of Quality Assurance of
Product and Servicing

6.

reliability and achievement of

product and servicing

Standardization
systematization of standards

reduction of scrap, rework,

rejection, concerning product and
servicing

method of establishing,
revising, and abolishing standards
and their outcome

reduction of complaint and

claim suit concerning quality

utilization of statistical
methods

innovative index and

economic gain for quality
improvement

contents of the standards

accumulation of technology

utilization of standards

Comparison of the Deming Prize and Baldrige Award, 8

Topic

Baldrige Award

Deming Prize

Grading
Criteria

7.

7.

Customer Satisfaction

Control

quality of product and

system for the control of

servicing from customers viewpoint quality and related matters

comparison of
competitiveness of product and
servicing

control items and control

points

customer servicing and

countermeasure for complaint

utilization of such statistical

control methods as control charts
and other statistical concepts

assurance from customers

viewpoint

contribution to performance
of QC circle

technique to grasp customer

satisfaction

actual conditions of control

activities

Comparison of the Deming Prize and Baldrige Award, 9

Deming Prize

Deming Prize

8.

9.

Quality Assurance

procedure for the development

of new products and services

safety and immunity from

product liability

customer satisfaction

process design, analysis,

control and improvement

process capability

instrumentation, gauging,
testing and inspecting

equipment maintenance and

control of subcontracting,
purchasing, and services

Results
measurement of results

substantive results in quality, services,

delivery time, cost, profits, safety
environments

intangible results

measures for overcoming defects

10. Planning for the Future

grasp of the present state of affairs

and the concreteness of the plan

measures for overcoming defects

plans for further advances

linkage with the long term plans

Result

1.
2.
3.
4.
5.
6.
7.

Increased Customer Satisfaction

Lower Costs
Reduced Product Development Time
Increased Employee Satisfaction
Higher Quality Products
Innovation
Increased Productivity

Percent

Average Category Scores

100
90
80
70
60
50
40
30
20
10
0

SVC
ED

0
Sue Rohan, David Luthy
Education Pilot Program
Overview

Categories

Sue Rohan, David Luthy

Education Pilot Program
Overview