Quality Leaders - Learning from the Deming Prize Winners in India
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International Journal for Quality Research 8(3) 431-446 ISSN 1800-6450 Jagadeesh Rajashekharaiah1 QUALITY LEADERS - LEARNING FROM THE DEMING PRIZE WINNERS IN INDIA Article info: Abstract: Different governments and professional agencies Received 10.06.2014 have set up a number of awards to recognize and reward Accepted 11.09.2014 quality initiatives. Deming Prize is one such award and ever UDC – 332.05 since it was open for companies from outside Japan, maximum number of winning companies are from India, with 20 companies winning the Deming Prize and four among them also winning the Deming Grand Prize. This paper traces the path taken by these companies to know how these companies embarked a journey of Total Quality Management (TQM) and reached their goal of winning the prestigious Deming Prize. The common working principles of these companies and the various tools and techniques used by them are described in a concise manner in this paper. Further, the paper highlights the lessons from these companies to inspire others. The data taken from the respective websites of the companies has been used to list out the objectives, methodologies, and the benefits accrued by the companies. Keywords: Quality, Award, Deming, TQM, Training, Learning 1. Introduction1 for an internal application. The awards‟ criteria enable to judge or benchmark a Quality of products and services offered by a company‟s initiative in improving quality as company decides the fate of the company as the quality awards‟ criteria provide a the buying decision of the customers wonderful framework to learn and depends only on the quality of the output implement the plans. In this paper, the delivered from the company. This has been Deming Prize winners in India are studied to very well realized and world over the see the similarities and differences across the companies are trying to follow or adopt tools quality policies so that the prospective and techniques to improve the quality of winners in particular and other companies in their outputs. While doing so the companies general can sharpen their quality practices. also focus on improving the visibility of their The case study is more of a learning brand and seeking better recognition. This experience than for any critical evaluation. prompts the companies to go for winning the Further, these companies differ among quality awards, which would ultimately themselves in terms of market capitalization, project the company as a leader in quality. investment patterns, type of management, The companies also use the quality awards and several parameters along the typical management functions like finance, marketing, human resource management, 1 Corresponding author: Jagadeesh Rajashekharaiah and operations. Hence, it is not the intention email: [email protected] here to generalize any methodology or 431 J. Rajashekharaiah policy as a common prescription to any applying for the awards has increased. This company. Instead, the attempt is to naturally has drawn the attention of different understand and appreciate the efforts put in stakeholders towards quality awards. Quite by these companies in winning the coveted often, the efforts put in and the resources award and to check about the sustainability consumed are debated against the benefits of such practices. Given the changes that can and advantages of winning the awards both happen in the corporate world from time to in the short and long terms. However, the time, particularly when the markets are learning from these awards is always helpful down, it may be a presumption to expect and beneficial to the entire organization. In these companies to adhere to these practices this paper, specifically the Deming Prize forever. The paper also checks whether the winners in India are taken up for a detailed practices that helped the company to win a study. prestigious award can also help them in Quality awards won by a company provide sustaining through hard competition and an indication of a company‟s efforts and demanding markets. The paper relies on the commitment in striving for quality. Further, published information on the company such awards help to raise the status of a websites, blogs, and printed resources as company in the eyes of the stakeholders and well. Considering the difficulty in meeting the stock market also responds to the the people for direct or indirect interview, company‟s product or service in a favorable the data from various sources is used to draw manner. As offshoot benefits, the company the conclusion from this study. will also be able to attract better quality suppliers, distributors, transporters, and 2. Quality awards – an overview retailers, and finally expand its customer base. This indeed enables the company to Quality awards have become quite popular stay profitable and maintain its operations in the recent times and have become amidst the competition among the industries. corporate status symbols. Worldwide, there In the last two decades, it has been raining is an increase in the number of awards as quality awards in the corporate world of well the categories based on sectors, fields India, in terms of both international and and disciplines. Quality Awards are also national quality awards won by the known to have acted as catalysts for companies. This trend has resulted in an spreading and promoting TQM across increase in the number of companies various countries, (Abusa, 2011). Winning a participating in the quality awards‟ programs quality award is both a matter of prestige and and consequently, more number of awards a testimony to a company‟s ability to have been instituted by professional agencies maintain the quality of their products and and the Government. services. Obviously, organizations are The quality awards instituted across the spending more time, efforts, and money in world continue to rise every year considering preparing to win the quality awards and the fact that both government and private hoping to hog the limelight. Though there is sectors have set up different awards. The a proliferation in the number and category of number of award aspirants too has gone up awards, only a few awards have retained with more and more companies participating their sheen and have become a stamp of in the award process. From inception in 1988 credibility and universal recognition and one to 2013 award cycle, the Malcolm Baldrige such example is the Deming prize. Hence, it National Quality Award of USA received may be necessary to benchmark the awards 1,601 applications from the program's against the best in class. While the debate inception and 101 Baldrige Awards have continues on the real benefits of the awards, been presented in different categories, with the number of companies showing interest in six repeat winners, (Nist.gov, 2014). 432 J. Rajashekharaiah Similarly, other countries too have witnessed http://www.juse.or.jp/e/. a surge in the number of applications for the The Deming Prize is one of the highest awards. Every year „Quality Progress‟ awards in the field of quality management in published by American Society for Quality, the world. It was set up in 1951 in USA, provides a comprehensive “Annual commemoration of the late Dr. William Quality Award Listing” usually in the month Edwards Deming, a pioneer in the field of of August. The USA National Awards and quality management from the USA, who the awards set up in the other countries, are contributed greatly to Japanese industries‟ both listed along with a brief profile. A applications of statistical quality control after complete listing maintained by the American the World War II, Society for Quality is available at (www.juse.or.jp/e/deming). Dr. Deming‟s www.asq.org. Most of the quality awards are teachings enabled the Japanese companies to open to both individuals and organizations, improve their product quality by applying and some are limited to only organizations. statistical techniques and by proper quality At the international level, some of the well- policies. However, it would be wrong to say recognized and most reputed quality awards that the Deming Prize is only an award to are: recognize the application of statistical Malcolm Baldrige National Quality techniques in improving the quality, the Award from USA Deming Prize indicates the ability of an Deming prize from Japan organization to demonstrate the application European Foundation Quality of TQM concepts effectively in an Award from the European Union organization apart from high output quality, (Radhika, 2002). Based on similar guidelines several quality awards have been set up in India and The Deming Prize takes its pride by the fact prominent among them are: any organization has to demonstrate the Rajiv Gandhi National Quality efforts put in place for the company-wide Award set up by CII (Confederation quality control using statistical techniques. of Indian Industries) and Exim According to an expert, the company should Bank of India first go for ISO standards along with Golden Peacock Award set up by industry specific standards, embrace the the Institute of Directors TQM philosophy in letter and spirit and Ramakrishna Bajaj National finally should aim for the prize, (Peach Quality Award set up by IMC 1990). It is further stated that going beyond (Indian Merchants Chamber) the prize takes the organizations towards the world class companies. Another observation 2.1 Literature review while winning the quality award is how the overall process of planning and preparing for Historically, quality awards were set up to the award enables a company to do “soul encourage those who maintained quality in searching‟ and hence exposes the company‟s their products and ensured customers‟ strengths and weaknesses, (Junkins, 1994). satisfaction. The awards also used to The trend analysis of national quality awards motivate others to emulate those doing well (Chuan and Soon, 2000) in which 17 so that the overall quality goes up.