LESSON -28: TQM MODELS

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1 LESSON -28: MODELS OBJECTIVES About Deming award criteria About Malcolm Baldrige national Quality award About European Quality award About Australian Quality award About confederation of Indian industries award About Rajiv Gandhi national Quality award. Model Examination Questions Suggested Readings STRUCTURE 28.1 Introduction 28.2 Deming award criteria 28.3 Malcolm Baldrige national Quality award 28.4 European Quality award 28.5 Australian Quality award 28.6 Confederation of Indian industries award 28.7 Rajiv Gandhi national Quality award Summing up 28.9 Model Examination Questions Suggested Readings Page 213

2 INTRODUCTION Total Quality Management () consists of organization-wide efforts to install and make a permanent climate in which an organization continuously improves its ability to deliver highquality products and services to customers. While there is no widely agreed-upon approach, efforts typically draw heavily on the previously developed tools and techniques of quality control. enjoyed widespread attention during the late 1980s and early 1990s before being overshadowed by ISO 9000, Lean manufacturing, and Six Sigma. DEMING AWARD CRITERIA The Deming Prize is a global quality award that recognizes both individuals for their contributions to the field of Total Quality Management () and businesses that have successfully implemented. It is the oldest and most widely recognized quality award in the world. [1] It was established in 1951 to honour W. Edwards Deming who contributed greatly to Japan s proliferation of statistical quality control after World War II. His teachings helped Japan build its foundation by which the level of Japan s product quality has been recognized as the highest in the world, 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. MALCOLM BALDRIGE NATIONAL QUALITY AWARD The Malcolm Baldrige National Quality Award recognizes U.S. organizations in the business, health care, education, and non-profit 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 non-profit. As of 2014, 105 awards have been presented to 99 organizations (including six repeat winners). The Baldrige Performance Excellence Program and the associated award were established by the Malcolm Baldrige National Quality Improvement Act of 1987 (Public Law ). 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 1987 death in a rodeo 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, Page 214

3 service, and customer quality to a broader, strategic focus on overall organizational quality called performance excellence. 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. EUROPEAN QUALITY AWARD The European panel in charge of monitoring preparations by the 2014 European Capitals of Culture, Riga (Latvia) and Umea (Sweden), has recommended that the European Commission should award them the Melina Mercouri Prize in recognition of the quality of their preparations. The prize amounts to 1.5 million for each city. Androulla Vassiliou, the European Commissioner responsible for Education, Culture, Multilingualism and Youth, said: "I congratulate both cities on their thorough preparations. The European Capitals of Culture initiative is one of the most successful schemes launched by the EU. For more than 25 years, it has been a catalyst for job creation, urban regeneration, and tourism and for boosting the long-term development of the cities concerned. I wish both 2014 European Capitals of Culture the best of luck as they finalize their preparations for the start of what I am sure will be a very successful year." As with all cities which have held the title of European Capital of Culture, Riga and Umea have been assessed by a monitoring and advisory panel which ensures that their programme meets the criteria for the title and respects the pledges made by the cities before they were officially designated. The cultural programme for the year must have a strong European dimension, reflected in the themes chosen and through the involvement of artists and cultural operators from different countries. The cities must also ensure that the event is attractive for the public and that it achieves a lasting impact by contributing to the long-term cultural and social development of the city. The second and final monitoring meeting for the 2014 Capitals took place in Brussels in April. In its report, the panel recommends the cities for their preparations and states that the Commission should award both the Melina Mercouri Prize, which is named after the former Greek Culture Minister who inspired the launch of the European Capital of Culture initiative in AUSTRALIAN QUALITY AWARD The Australian Business Quality Awards is an organization with one goal in mind. To allow great businesses to get the recognition they deserve. Showcasing an award is one of the greatest marketing tools you can use. Not only does it get your message out to more potential customers, but it lets your customers know that you are the best at what you do. Page 215

4 It doesn't matter if your business is big or small. You will not be competing against other businesses. You will only be judged on your own business customer service standards. CONFEDERATION OF INDIAN INDUSTRIES AWARD The Confederation of Indian Industry (CII) is an association of Indian businesses which works to create an environment conducive to the growth of industry in the country. CII is a non-government, not-for-profit, industry-led and industry-managed organization, playing a proactive role in India's development process. Founded in 1895, CII has over 7200 members, from the private as well as public sectors, including SMEs and MNCs, and an indirect membership of over 1,00,000 enterprises from around 242 national and regional sectorial industry bodies. CII works closely with Government on policy issues, interfacing with thought leaders, and enhancing efficiency, competitiveness and business opportunities for industry through a range of specialized services and strategic global linkages. With 64 offices, including 9 Centres of Excellence, in India, and 7 overseas offices in Australia, China, Egypt, France, Singapore, UK, and USA, as well as institutional partnerships with 224 counterpart organizations in 90 countries, CII serves as a reference point for Indian industry and the international business community. The CII Theme for is Accelerating Economic Growth, to strengthen a growth process that meets the aspirations of today s India. Ajay S. Shriram, Chairman and Senior Managing Director of DCM Shriram, has been elected President of CII for the year Summit Mazumder, Chairman and Managing Director, TIL Limited, has been elected as the President of CII for the year He succeeds Mr Ajay Shriram as the new President. Dr. Naushad Forbes, Director, Forbes Marshall, has become the President-designate of CII for the year Ms Shobana Kamineni, Executive Vice-Chairperson, Apollo Hospitals Enterprises Limited (AHEL) has been elected as Vice- President of CII for the year Chandrajit Banerjee is the Director General. RAJIV GANDHI NATIONAL QUALITY AWARD The Rajiv Gandhi National Quality Award is the national quality award given by the Bureau of Indian Standards to Indian organizations that show excellence in their performance. It is named after Rajiv Gandhi, the former Prime Minister of India, and was introduced in 1991 after his death. The award aims to promote quality services to the consumers and to give special recognition to organizations that contribute significantly towards the quality movement of India. The award is presented annually as per the financial year, and is similar to other national quality awards worldwide like the Malcolm Baldrige National Quality Award of the United States, European Quality Award of the European Union and the Deming Prize of Japan. Page 216

5 SUMMING UP When planning and implementing a total quality management system there is no one solution to every situation. Each organization is unique in terms of the culture, management practices, and the processes used to create and deliver its products and services. The strategy will then vary from organization to organization; however, a set of primary elements should be present in some format MODEL FORMENTING 1 Top management learns about and decides to commit to. is identified as one of the organization s strategies. 2 The organization assesses current culture, customer satisfaction, and quality management systems. 3 Top management identifies core values and principles to be used, and communicates them. 4 A master plan is developed on the basis of steps 1, 2, and 3. 5 The organization identifies and prioritizes customer demands and aligns products and services to meet those demands. 6 Management maps the critical processes through which the organization meets its customers needs. 7 Management oversees the formation of teams for process improvement efforts. 8 The momentum of the effort is managed by the steering committee. 9 Managers contribute individually to the effort through hos-hin planning, training, coaching, or other methods. 10 Daily process management and standardization take place. 11 Progress is evaluated and the plan is revised as needed. 12 Constant employee awareness and feedback on status are provided and a reward/recognition process is established. MODEL EXAMINATION QUESTIONS Objective Type Questions 1.The Deming Prize is based on ---- (i) Total. (ii) Total benefit. (iii) Total hospitality. (iv) None 2. W. Edwards Deming prize established in ---- Page 217

6 (i) (ii) 1957 (iii) (iv) The Deming awards ceremony is broadcast every year in--- (i) Japan. (ii) India. (iii) France. (iv) None 4. The Deming awards are two types- (i) Individuals and the Deming Application Prize. (ii) Individuals. (iii) Deming Application Prize. (iv) None 5.The organization assesses current (i) Culture, customer satisfaction, and quality management systems. (ii) Not culture, customer satisfaction, and quality management systems. (iii) Organization does not have any culture practice. (iv) None. Descriptive Type Questions Short Answer Questions 1. EOQ full name is European Organization for Quality placed EOQC full name is Managers contribute individually to the effort through The momentum of the effort is managed by Page 218

7 Long Answer Questions 1. What is Rajiv Gandhi national quality award? 2. Describe various Confederation of Indian industries award? 3. What is Australian quality award? SUGGESTED READINGS Business Standard. March 28, "RAJIV GANDHI NATIONAL QUALITY AWARD, 2011" (PDF). bis.org.in. Retrieved 15 May 2014 Page 219