Professional Documents
Culture Documents
TQM Model of Elements-Deployment Table Developed From Quality Award and Its Application
TQM Model of Elements-Deployment Table Developed From Quality Award and Its Application
(Doctor)
2004
Kozo Koura
Contents Page
i
3.4 Foundation of Japan Quality Award 72
3.4.1 Starts of Japan Quality Award 72
3.4.2 Purpose of Japan Quality Award 73
3.5 Development and Social Influence of Quality Award in each Country 73
3.5.1 Malcolm Baldrige National Quality Award (MBNQA) 73
3.5.2 European Quality Award (EQA) 83
3.5.3 Japan Quality Award (JQA) 88
3.6 Consideration summarized 91
ii
5.4.2 Common Factor and Individual Factor 161
5.5 Conclusion 164
iii
8.4.2 Fundamental Concept 227
8.4.3 Implementation Procedure by Policy Management System 228
8.4.4 Procedure of Cross-Functional Management Deployment 228
8.5 Cross-Functional Management, Division Management,
Product Management, Policy Management, and Daily Management 232
8.5.1 Outlines 232
8.5.2 Cross-Functional Management 234
8.5.3 Product Management (Strategic Business Unit Management) 234
8.5.4 Project Management 234
8.5.5 Relation between Division Management, Cross-Functional Management
Product Management, and Policy Management and Daily Management 234
8.6 Effects of Cross-Functional Management 235
8.7 Note on Cross-Functional Management Promotion 235
8.7.1 Fundamental Principle 235
8.7.2 Role of Top Management 236
8.7.3 Cross-Functional Committee 236
8.7.4 How to implement Cross-Functional Management 236
8.7.5 Secretariat Office 237
8.7.6 Standardization 237
8.7.7 Correspondence of stiffening Organization and Management
by Clarification of Responsibility between Division 238
8.8 Analysis of Cross-Functional Management execution condition
in Deming Prize Recipient 239
8.8.1 Purpose of Investigation and Research 239
8.8.2 Method of Investigation and Research 239
8.8.3 Analysis of Cross-Functional Management Introduction
and Execution Enterprise 239
8.9 Consideration 250
iv
9.2.5 Meaning of Deming Prize Existence 268
9.2.6 Relation between ISO 9000 and TQM 272
9.3 Enactment of National Quality Award in Japan 272
9.3.1 Domestic Movements 272
9.3.2 Institution of National Quality Award 273
9.4 Enactment of International Quality Award 274
9.4.1 Movement of Foreign Countries 274
9.4.2 Proposal of International Quality Award 274
9.5 “Japan: Country founding Quality” 275
Acknowledgement 279
Figure P age
Chapter 2
Figure 2.1 No. of Deming Prizes, and JQM recipient enterprise transition graphs 8
Figure 2.2 No. of QCC registration, Member, QCC Conventions,
Participants, Presentations 27
Figure 2.3 Education Purpose of Toyota Motor Co, Ltd. 37
Figure 2.4 JAM Report "Division Structure Chart of Car Production" 45
Figure 2.5 Structure of GWQM in Toyota Motor (As of 1994) 47
Figure 2.6 Social System around TQM 53
Figure 2.7 Various Activities of promoting TQM 57
Chapter 3
Figure 3.1 Propagation Rout of Quality Awards in the World 64
Figure 3.2 Type of National Quality Award 65
Figure 3.3 MBNQA recipient enterprise number transition graph 74
Figure 3.4 EQA recipient Status 84
Chapter 4
Figure 4.1 2003 Baldrige Criteria for Performance excellence Framework:
A System Perspective 110
Figure 4.2 2002 EFQM Excellence Model 110
Figure 4.3 Framework of 2001 JQA Criteria 111
v
Figure 4.4 View Points of examination in 2001 Deming Prize 112
Figure 4.5 Distribution Point of Fundamental Item in 2002 Deming Prize 111
Figure 4.6 Steps of Development of TQM Quality Award Element
Comparison Matrix (synthesis) 122
Figure 4.7 KJ method Grouping of second TQM Element Item of each Award 127
Chapter 5
Figure 5.1 Factor Structure of MBNQA 152
Figure 5.2 Factor Structure of EQA 153
Figure 5.3 Factor Structure of JQA 155
Figure 5.4 Factor Structure of Deming Prize 156
Figure 5.5 Factor Structure of ISO 9001 158
Chapter 6
Figure 6.1 Component Structure of MBNQA 1988 177
Figure 6.2 Component Structure of MBNQA 1989 178
Figure 6.3 Component Structure of MBNQA 1997 179
Figure 6.4 Component Structure of MBNQA 1999 180
Figure 6.5 Component Structure of MBNQA 2001 181
Figure 6.6 Component Structure of MBNQA 2003 182
Figure 6.7 Component Structure of MBNQA 2001(former) 183
Chapter 7
Figure 7.1 Development of TQM in Japan (upper row) and Introduction
and Implementation of TQM in the enterprises (lower row) 191
Figure 7.2 Process of Introduction, Promotion, Development,
and Advancement of TQM (illustration) 201
Figure 7.3 The Evolution of Strategic Quality Management 206
Figure 7.4 Vision Management System 209
Chapter 8
Figure 8.1 Concept Chart of Function under Company-Wide Deployment 217
Figure 8.2 Cross-Functional Management Organization of Toyota Motor 218
Figure 8.3 Simple Organization 220
Figure 8.4(a) Ordinary Organization 221
Figure 8.4(b) Ordinary Organization 222
vi
Figure 8.5(a) Highly Developed Organization 224
Figure 8.5(b) Highly Developed Organization 225
Figure 8.6 Clarification of Processes (management object) 229
Figure 8.7 Quality Assurance System Chart (illustration) 231
Figure 8.8 Reaching Out 238
Figure 8.9 Cross-Functional Management execution condition
in Deming Prize Recipient 240
Chapter 9
Figure 9.1 Logic of EQA and Ethics 259
Figure 9.2 Framework of Deming Prize Criterion (tentative plan) 265
Table Page
Chapter 2
Table 2.1 Motive of TQM Introduction in Deming Prize recipient enterprise 11
Table 2.2 Purposes of TQM Promotion in Deming Prize recipient enterprise 14
Table 2.3 TQM Promotion Activities in Deming Prize recipient enterprise 17
Table 2.4 Tangible Effects of TQM Activities in Deming Prize recipient enterprise 19
Table 2.5 Criteria for Tangible Effects Evaluation in
Deming Prize recipient enterprise 20
Table 2.6 Intangible Effects of TQM activities in
Deming Prize recipient enterprise 22
Table 2.7 Multi Times recipient enterprise list in
Deming Prize recipient enterprise 25
Table 2.8 Comparison Motivation between another and QC Circle (Juran) 30
Table 2.9 Example of GWQM enterprise group in
Deming Prize recipient enterprise 33
Table 2.10 Main Quality Awards that Xerox group had won 36
Table 2.11 Company-wide Educational System 38
Table 2.12 QC Education Courses Table of in Toyota Motor 39
vii
Table 2.13 Education Courses of group enterprises (example of Komatsu) 40
Table 2.14 Three Sub-meeting and its Objectives 41
Table 2.15 Quality Control Award of GWQM enterprise group 41
Table, 2.16 Comparison between KEIRETSU and GWQM 49
Chapter 3
Table 3.1 JUSE Visit Situation from each country 62
Table 3.2 Countries in the world that Quality Awards are enacted 63
Table 3.3 Classification Table of Quality Award Types 65
Table 3.4 Main Forces of Quality Activities and Quality Award
enactment situation in Europe 72
Table 3.5 Japan Quality Award recipient enterprises 89
Table 3.6 Management Quality Awards spreading to Japan various places 91
Chapter 4
Table 4.1 Emphasis Point % Comparison Table of MBNQA, EQA, JQA,
and Deming Prize 102
Table 4.2 Comparison Table of Criteria of MBNQA, EQA, JQA,
and Deming Prize 107
Table 4.3 Weight Comparison Table of Criteria Item of MBNQA, EQA, JQA,
and Deming Prize 106
Table 4.4 Comparison of Expense related to Examination of MBNQA
And Deming Prizes 116
Table 4.5 Structure Model of TQM Quality Award Element Comparison Matrix 120
Table 4.6 MBNQA Criteria Element Deployment Table (part) 123
Table 4.7 Number of Criteria Elements extracted from each Awards 123
Table 4.8 MBNQA Criteria Element vs. TQM Element Table (part) 124
Table 4.9 Number of TQM Eelements extracted from each Awards (3rd or 4th) 124
Table 4.10 MBNQA TQM Elements Deployment Table (part) 125
Table 4.11 Number of Elements of TQM Elements Deployment Tables
of each Award 125
Table 4.12 TQM Elements Deployment Table (synthesis) in Steps 5 128
Table 4.13 New TQM Elements Deployment Tables (synthesis) 131
Table 4.14 TQM Quality Award Element Comparison Matrix (part upon the left) 132
Table 4.15 TQM Quality Award Element Comparison Matrix
(Relation Degree consolidating table) 134
viii
Attached Table: TQM Quality Award Element Comparison Matrix
(transposition version) 144
Chapter 5
Table 5.1 First Level TQM Conversion Element of each Award Criteria Item 147
Table 5.2 Square Sum of Factor Loading and Contribution Ratio
of each Factor after Varimax Rotation 148
Table 5.3 Summary of each Factor Name 150
Table 5.4 Factor Structure Table of each Award 159
Table 5.5 Summaries of Factor Structure of each Award 160
Table 5.6 Common Factor and Factor Loading 162
Chapter 6
Table 6.1 MBNQA Criteria Item Time-Series Comparison Table 172, 173
Table 6.2 Eigenvalue and Correlation Coefficient Array Table of MBNQA 174
Table 6.3 Contribution Ratio of Eigenvalue of Principal Component of MBNQA 176
Table 6.4 Summary of MBNQA Criteria Item and Principal Component Structure 184
Table 6.5 Comparison between Criteria “Social Responsibility” in 1988 – 2005 187
Chapter 7
Table 7.1 Progress of Management and TQM Activities in AISIN Co., Ltd. 192
Table 7.2 Step of Vision Development 211
Table 7.3 Enterprise Ethics, Philosophy, Vision, Mission and Values 212
Chapter 8
Table 8.1 Quality Assurance Activities Table (Toyota Motor) 229
Table 8.2 Content Item of Cross-Functional Management Activities Table 230
Table 8.3 Comparison of Horizontal Management Organizations 233
Table 8.4 Division Management, Cross-Functional Management,
Product Management, Policy Management, Daily Management 235
ix
Table 8.5 Execution Rate of each Function in Deming Prize Recipient 241
Table 8.6 Transition Table of each Functional Division by age 243
Table 8.7 Problem before Introduction of Cross-Functional Management
(Common and Quality Assurance)(1960-1990), 102 companies 244
Table 8.8 Problems before Introduction of Cross-Functional Management of
(Cost/ Profit, Quantity/ Delivery Date, New Product Development,
Sales, and Safety and Healthcare) (1960-1990), 102 companies 245
Table 8.9 Main Problems before Introduction of Cross-Functional Management
(1960-1990), 102companies 246
Table 8.10 Effects after Introduction of Cross-Functional Managements of
(Common and Quality Assurance)(1960-1990), 102 companies 248
Table 8.11 Effects after Introduction of Cross-Functional Managements of
(Cost/ Profit, Quantity/ Delivery Date, New Product Development,
Sales, and Safety and Healthcare) (1960-1990), 102 companies 249
Table 8.12 Main Effects after Introduction of Cross-Functional Managements
of (1960-1990), 102 companies 247
Chapter 9
Table 9.1 Summary of Comparison Analysis of Quality Awards 256
Table 9.2 Comparison of Leaderships between Traditional and TQM 262
Table 9.3 Difference of Value between Self-Assessments and TQM 262
Appendix
x
Chapter 1 Background of Research and its Purpose
1.1 Purpose of Thesis and its Composition
The Research of TQM Element was started for “TQC Systematization by Classified
System” the TQC Systematization Research Group of Japanese Society for Quality
Control in 1992 where the author belonged and the “Researches of Quality Award” was
started from “Quality Award in Each Country” in the GLQM (Global Quality
Management) Case Study Group of same Society in 1995. It was an investigative
activity that received corresponded for rise of the concern to the quality in every country
in the world from 1980's. The investigation of actual conditions of Quality Award in each
country began in the GLQM Case Study Group. And then, the early research and the
comparison research about the following 4 Awards were carried on continuously at this
research. And, the TQM Elements Deployment Table was completed becoming a
worldwide, common standard by the integration of the TQM Element Deployment Table
in the Quality Award by the idea of the TQM systematization. It can be settled to
compare the structure factors of Quality Award examination item by the common
standard using this table as anchor that did not exist with early research.
The National Quality Award (called as NQA) is enumerated as one of tipical
example for an international concern on TQM, which are further deployed as “Quality
Award” enacted in 67 countries as of 2004. When the propagation routes of National
Quality Award are traced, it propagated from the Deming Prize of Japan (1951),
Malcolm Baldrige National Quality Award (1987 in U.S.A. called as MBNQA), and
European Foundation for Quality Management (called as EFQM) and European Quality
Award (1991, called as EQA). The MBNQA were propagated to North and South
America, and Asia, and the EQA to the entire Europe, the Middle East, and Africa.
These Quality Awards are prime mover for spreading and promotion of TQM (Total
Quality Management).
The purposes of this research are considering the passage of progressing of the
quality award, creation, extracting and synthesizing of the TQM element by the
Functional Analysis of each award, making the TQM Elements Deployment Table that
becomes the result an anchor, the TQM element of each award comparison, the analysis
of those features, next the investigation and the research of utilization of the TQM
element in the management, and the contribution to the development of TQM in the
future. 4 Awards of MBNQA, EQA, Japan Quality Award (1995, it is called JQA), and
Deming Application Prize (It is called the Deming Prize) were selected as the main
quality award becoming the object of this research and ISO 9001 was added to the
research object from the objectively international point of view though it differed from
Quality Award in addition.
This paper will present these implementation, each country recognizes the Quality
Award that are not only for a mere social honor but also to challenge for improvement of
1
global competitiveness and management innovations by self-assessment through
Quality Award implementation of the enterprise in this research. It is the one to expect
to emphasize a social necessity of the utilization of this, to contribute to the formation of
the quality culture of our country consequently, to learn to Quality Award in each
country, and to be going to deepen in addition by the cooperation of industry and
academy in the future.
Chapter 2 is explained for our historical details in the TQM development of Japan,
and the role especially indicated of Deming Prize played are the descriptions the author
based on the document that is reviewed, and what clarify the past and the current state
concerning TQM and Quality Award that is the research object of this academic
dissertation. Especially, it was clarified for Quality Award not to stay in a mere accolade
system, to act in shape of Quality Award that indicated the TQM element, and to have
pulled TQM activities and economic development for the entire nation consequently,
and clarified importance in the TQM research that is research object of this thesis in
Chapter 2. This thesis is developed based on the perception about the present state of
affairs developed in Chapter 1 and Chapter 2.
In Chapter 4, the development of the new methodology of the TQM element deployment
based on the evaluation criteria of each award is developed for the sake of comparison
objectively Quality Award in each country by QFD technique (Quality Function
Deployment: QFD). The methodology is developed further, and Each Award is
quantitatively compared based on the multivariate analysis (Principal Factor Analysis
etc.), and the feature of each Award is clarified in Chapter 5. And then, in Chapter 6, the
effectiveness of the development technique is verified based on the comparison
evaluation doing the transition of the time series of the evaluation criteria of the quality
award by the technique for developing in Chapter 4 and Chapter 5.
In Chapter 7 continuously, it is examined the AISIN Co., Ltd. group in detail as a case
about the role of the Deming Prize accomplished to the process of the TQM introduction,
clarifies the relation between a standard process and the Deming Prize of the TQM
introduction, and explains "Management at which TQM aims" adding consideration
from the viewpoint of 11 factors extracted in Chapter 5. In Chapter 8, the feature of the
Cross-Functional Management was clarified by using the Cross-Management Factor of
TQM that was the factor only of the Deming Prize extracted in Chapter 5.
2
In this thesis, it is finished off in Chapter 9 that discusses Quality Award in the future
and the proposal of a new Quality Award by author's opinions.
(B) "SQC age" (1950-54) and "Age of systematic strengthening control for Quality
Control" (1955-59)
Dr. W. Edwards Deming was invited from the USA in 1950, and the Quality Control
Course for eight days was held, the Deming Prize was established for commemoration of
doctor's friendship and his contribution in 1951, and became the mainspring of the
Quality Control (hereafter called QC) development of Japan afterwards. The spread and
the application of the Statistical Quality Control were actively implemented and it was
called SQC Age in this age. And, Control Chart, Process Control Diagram, and control
and improvement by the analysis of the process are advanced by "Deming Cycle", and it
3
is called the Process Control Emphasis Principle Age. Dr. Joseph M. Juran was invited
in 1954, and the seminar was held. It has entered into "Age of the Systematic
Management strengthening of the Quality Control" by lecturing on Dr. Juran's "The
Quality Control is a part of the management". Then, "Establishment of the idea and the
technique of management" were proceeded. The Deming Cycle was generalized as
PDCA (Plan-Do-Check-Act) Cycle, and “Oorganizing and Institutionalization of QC” and
the “QC Activity System” was advocated.
4
Japanese Quality Control Medal was founded. "QC Circle Koryo (General Principle of
QC Circle)" and "How To Operate QC Circle Activities" (Edited by the QC Circle
Headquarters and JUSE issue) were publishedin 1970/71, and QC Circle Activities has
developed with nine branches on a nationwide scale. Moreover, QC Circle Activities
began to spread to the other countries (72 present countries), and “QC Circle Koryo” in
version of China, Korean in 1976, and English in 1980 were published (each country
word at the following). International Convention on QC Circle: ICQCC 1978-Tokyo was
held in 1978. The quality assurance was compiled as "Quality Assurance Guide Book",
was expanded the concept of the quality, and came to handle reliability, PLP (Product
Liability Prevention), environmental management, and the Quality Control of clerical
work and business and the resource and energy conservation problem. Deming Prize
winning enterprise in finally 1979 came from construction industries other than
manufacturer. Moreover, advanced technique development like the Management 7 Tools,
Quality Function Deployment (QFD), and Multivariate Analysis by computer etc. was
used at this time. And, "Quality Revolution" was achieved as Dr. Juran [4] to say, the
Japanese product is exported to the global market, and Japanese TQC has come to be
admitted in foreign countries.
The propagation of Quality Award (that is a whole of this research theme) were
5
started in the same year in 1987 too and the Malcolm Baldrige National Quality
Award (MBNQA) in USA has found referring to the Deming Prize, and Japanese TQC
is recognized as TQM (Total Quality Management), and further are continueing to
European Quality Award (EQA) foundation in 1991.
6
and the region in November of the same year and "Activity that improved the quality as
the factories of the world" started. Moreover, ICQCC 2003-Tokyo was held in October
2003.
Reference document
1.Kozo Koura: Draw to 'Quality management' ('Quality Control': old magazine) the
700th publication commemoration and - the transition of the quality control of
Japan - Quality management, Vol.54, No.3, pp.36-38, and March 2003.
2.Kenichi Koyanagi: “Quality Emphasis in Japan’s Postwar Trade”, JUSE publisher,
pp.68, and 69, August 1963.
3.Ichiro Ishikawa: “Word of starting”, Quality Control, Vol.1, No.1, p.2, March 1950.
4.4. J.M. Juran: “ Upcoming Century of Quality”, Quality Progress, August 1994,
pp.29-37.
5. Shoichiro Toyoda: Special event of Quality Month, chairman of Federation of
Economic Organizations Shoichiro Toyoda’s lecture summary, November 1998.
(From the Vision Management Case Study Group Report of Japanese Society for
Quality Control). Please refer to the content of Shoichiro Toyoda: "Basic idea of
Creation of Attractive Japan", the Orient Economic Newspaper, p.17, April 1996.
7
Chapter 2 Deming Prize and its Influence
In this chapter, it clarifies that the Deming Prize that is a typical quality award of
Japan played the role in the promotion of TQM development based on the search report
to the Deming Application Prize awarded companies by Kano and Koura [1], Koura [2],
and Koura [4].
2.1. Transition status of Deming Prize and Japan Quality Medal recipients
The transition status of application and numbers of recipients enterprises of the
Deming Prize and the Japan Quality Medal (JQM from now on and abbreviation) in
1950 - 1999 shown in Fig. 2.1. The figure in circle is a number of JQM recipients in Fig.
2.1.
①
Bigin to application ①
for Overseas ② ①
①
150 Company ①
Set
Plant ① Stop S & M
Set Established ①① and Div.
100 Div. JQM ① Prize
Establishe ①
d Deming Set S & ① ①
prize ①
50 M
0
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000
Fiscal Year
Note: It is omitted Kyushu Cloth Company in this statistics because it was differed
from the application prize in fiscal year 1952 as under a commendation status
citation.
Fig. 2.1 No. of Deming Prizes, and Japan Quality Medal recipients enterprise
transition graphs
The total numbers recognized until 2002 was 205 companies as 188 Deming Prize
companies and 17 JQM companies, and which are counted by 3.6 a year on a total
average only in the Deming Prize, 5.2 companies in 1980 age and 4.3 companies in 1990
age. The overseas recipient enterprise was one U.S.A’s company in 1989 by
internationalization of the Deming Prize in 1986. The Florida Power & Light Co., Ltd.
was in success first, U.S.A, Philips Taiwan Ltd. in 1991, AT&T Power Systems Ltd.,
8
U.S.A. in 1994, Sundaram Clayton Ltd. Brake Division, India in 1998, Sundaram Brake
Linings Ltd. India, Thai Acrylic Fiber Co., Ltd. and Thai Carbon Black Public Co., Ltd.,
of Thailand three companies in 2001, in addition The Siam Cement (Thung Song) Co.,
Ltd., Thailand, TVS Motor Co., Ltd. and Hi-Tech Carbon GMPD, of India in 2002,
Brakes India Limited, Foundry Division, Mahindra & Mahindra Limited. Farm
Equipment Sector, Rane Brake Linings Ltd., Sona Koyo Steering System Ltd. of India,
Siam Refractory Industry Co., Ltd., Thai Paper Co., Ltd. of Thailand, and Birla
Cellulosic (A Unit of Grasim Industries) India in 2003. CCC Polyolefins Company
Limited, Indo Gulf Fertilisers Limited, Lucas-TVS Limited, Siam Mitsui PTA Company
Limited, SRF Limited - Industrial Synthetics Business, and Thai Ceramic Company
Limited in 2004. In the JQM recipient company, Philips Taiwan Ltd. in 1997,
Sundaram-Clayton Ltd., Brakes Division of India in 2002 are recognized.
As the one of 3.3 companies a year on the average in 1950's got depressed down to 1.7
companies a year on the average in 1960's, the status change in ups and downs were
observed by evry years. However, it was recovered to 3.6 companies a year on the
average in 1970's, the TQC activity in Japan was taken up as a source of the global
competitiveness in 1980's in American National Broadcasting Co. "If Japan Can, Why
Can't We?" and the TQM boom of the USA was caused. This boom influenced to Japan
and had improved up to 5.2 companies a year on the average in 1980’s. Afterwards, the
concern for TQC were decreased by burst of the economic bubble and economic
stagnation, and the restructuring needs of TQM are came into us today. It will be able to
be said that it is a steady pace though 1990 year decreased with 4.3 companies on the
average. However, the recipient enterprises were decreasing continuously for three
years from 1994 to 1997, and a domestic recipient company decreases, but the overseas
enterprises such as India and Thailand increase after 2001. This shows the anxiety
about the direction of the TQM activity of Japan in the future though an overseas
evaluation to the quality control operation of our country is high. It is enumerated that
the TQC criticism and the TQC decline theory etc. having happened in Japan and newly
founded the JQA in addition. The trend in the future like the activity etc. of "Japan
Organization for Quality Innovation (JOQI)" is expected while entering "TQM
Declaration" age (Akao [3]) from the restructuring of TQC as described in Chapter 1.
And JOQI reports the 8 kinds proposals on May 2004.
9
overseas companies and except 15 JQM companies (After the Deming Prize is won,
enterprise can apply after five years).
The motive of TQM introduction (Table 2.1) and the purpose of promotion (Table
2.2) and the content of promotion activity (Table 2.3) of these companies were shown.
Each table was separately divided at the age in 1950's every ten years. However, 1990
year is data for 1991-1999 years. These data is the one having been extracted it from the
Deming Prize recipient Report Lecture Summary (Deming Prize Committee, JUSE).
As for the development of TQM in Japan, the contribution of the Deming Prize and
the JQM recipient company was very large. Also the Cooperation between Industrial,
Aacademic, Governmental Sector described in Para 2.5.3 is additionally great
contribution. The companies that aims at the Deming Prize and the JQM have
demonstrated its own originality and developed its idea and technique in addition of
learning the idea and the technique of TQM that was researched and developed till then
from the exchange with senior company that has already won the Deming Prize and the
TQM guidance lecturer.
Next, it is explained that what purpose, and what activity were done in the TQM
promotion process by each enterprises. Please agree to use commingly QC and TQC
terminology, etc. depending on the age in sentences though the title was assumed to be
TQM.
In 1950, the introduction of the management technology of the USA was quite an
active age, and the motive of the TQM introduction were rather "Ignorance to the
importance of the QC and scientific management", and was called SQC (Statistical
Quality Control) age in 1950's. Moreover, while the production activity were active in
the market by the Special Procurement Boom (By Korean War, November, 1951 -
January, 1954) and continually to the Jinmu Business Boom (June, 1957 - December,
1954) and the Iwato Business Boom (July, 1957 - December, 1961) the quality problems
had been happened frequently, and the market competition has changed from the
quantity oriented problem to the quality.
On the other hand, it was suffering from deficit problem (for instance, 1955, - 54
million dollars) in Japanese economy on the trade in balance, and be necessary to export
promotion, accordingly the maximum problem were located in the necessity for how to
wipe out the unfavorable criticism of "Cheap and Bad Quality of Made in Japan" was
10
the common recognition between the management people (This adjusts to the vision of
Mr. Ichiro Ishikawa who describes in the preceding chapter). It is thought that
"Management modernization and rationalization" was active major motives of the TQM
introduction at this age.
11
In 1960, manufacturing industries were facing and busy with how to license with
new technology and how to reinforce with that the productive capacity, and the concern
for TQC were weakened. However, how to deal with the liberalization of the trade and
capital market, there were Komatsu (1964 Deming Prize recipient was shown later) and
Toyota Motor Co., Ltd. (1965) and Bridgestone Tire Co., Ltd. (1968), etc. as an
enterprise that had recognized the necessity of TQC, and it was called the age of "The
establishment of TQC base".
When entering 1970's, "It needs to foster strong company constitution against the
recession" was shouted to deal with Dollar Shock (1971) and the First Oil Crisis (1973),
market quality competition were intensified more and more, and the concern to TQC to
fight for new product and new technological development power shortage had risen.
In 1980, the enterprise that economical conditions were recognized for needs of
effort to the recovery after Second Oil Crisis (1978) (The trade balance sheet had fallen
from 24.6 billion dollars in 1978 to 1.8 billion dollars in 1979) and as for the enterprise it
was recognized delay of the correspondence to the diversification and upgrading
concerns of market trend, new product and new technological development power
shortage, and weakness of departmental cooperation and system of integrated
management increases in 1980's. Eventually TQC introduction needs were became the
most active as described in Chapter 2. Paragraph 1. There were Sekisui Chemical Co.,
Ltd. (1979) and Fuji Xerox (1980) in the enterprise of which the introduction motive
these. In addition, there are Asumo (1988) and Fuji Iron Works (1988) in the enterprise
that the trade friction became a motive. Moreover, the companies that appreciation of
the yen becames a motive were JUKI (1981), Japan Steel Works (1983), Nippon Carbon
(1985), AISIN Chemical Worker (1987), Asumo (1988), AISIN Shinwa Co., Ltd. (1989),
Hoko Industry (1989), and it continues to AISIN Hoyo Co., Ltd. (1990) and Amada
Wasino (1990) in 1990's.
In 1970-1980's, "How to forecast and overcome of the management crisis" was seen
as major active motive were seen. It could be said, 1980 year of 1970's was
"Breakthrough age by TQC". However, the sprout of the internationalization (overseas
production and achievement of international quality) was seen in the latter half of
1970's and there was an company group by which a strong intention of the management
person "Challenge to the management vision" of taking the action on the market and
the technical innovation in advance became a motive in the latter half of 1980's. In a
typical example, Tokai Kasei Industry (1975), Pentel (1976), AISIN AW Co., Ltd. (1977),
Tyuetsu Alloy Casting (1978), Kyushu NEC Corporation (1979) of for "Achievement of
an international quality" and Nihon Zeon (1985), Komany (1985), Hazama-gumi (1986),
AISIN Chemicals (1987), Daihen (1987), AISIN Light Metals (1988), Amada Wasino
12
(1990), AISAN INDUSTRY (1992), and Nissan Motor Co. Oppama factory (1992: Those
days were SQC ages though Nissan Motor Co. was winning the Deming Prize in 1959,
then, it challenged again.) for "Take in advance of the action on the market and the
technical innovation". There are Toyota Industries Corporation (1986), Aichi Steel
Works (1987), Daihen (1987), Itoki Kosakusyo (1989), Amada Wasino (1990), Aisan
Industry (1992), Jatoco (1992), Toppan Printing Co., Electronics Division Kyushu
factory (1992), Maeda Works (1994), and NT Techno (1994), etc. for "The long-range
management planning is insufficient”.
In the first half of 1990’s, the sharp appreciation of the yen advances to burst of the
economic bubble (1991) and the information technology innovation had happening.
Therefore, the motive of the TQC introduction was made variegated for implementing
necessity, too. Moreover, it is thought that the reason what the company to have
enumerated the development of human resources and respect humanity increased since
1980's was the enterprise that had the global view aiming at the 21st century, needed
creative human resources, and aimed at long-term "Human-development" in the
employee's satisfaction increased.
Most of practical/detail objectives are as showing, when you show there is a lot of
each classification and concrete a purpose.
13
Table 2.2 Purpose of TQM Promotion in Deming Prize recipient enterprise
Year 1950's 1960's 1970's 1980's 1990* Total
No. of
Purpose of promotion 33 16 36 54 39 178
1 Improvement of performance
by improvement of compny
1
constitution 2 8 28 51 26 115
Managem
ent 2 Establishment and challenge of
purpose management vision and business
strategy 7 26 24 57
3 Establishment of GWQM 3 1 9 6 19
1 Establishment of quality
improvement/quality assurance
system set up 13 13 34 53 29 142
2 Cost reduction, profit
2 Purpose improvement, and establishment
by of cost and profit management
business system 5 8 20 29 12 74
element 3 Establishment of production
aspect (amount and delivery date)
management system 1 3 10 21 9 44
4 Establishment of safety and
environmental management
system 3 5 2 10
1 Strengthening of
project/development power of
new product and new technology 4 4 17 41 15 81
2 Strengthening of sales power 1 4 16 2 23
3 Division 3 Enhancement and
purpose strengthening of subcontract
and supplyer management 1 2 2 5
4 Strengthening of product
maintenance and quality
assurance 2 3 5
1 Use of scientific management
4 Posture and idea and technique 28 9 9 15 8 69
technique 2 Enhancement and
purpose
strengthening of integrated
management management 9 8 14 35 20 86
1 Establishment of cooperative
5 Social system by all member 1 7 22 20 2 52
contribution
and employee
2 Rispect for humanity and
purpose human resource development 14 34 24 72
3 Contribution to local society 1 4 5
The table of Noriaki Kano and Kozo Koura(1991) "Development of Quality Control Seen through
Remarks Companies Award the Deming Prize", Report of Statistical Application Research, Vol.37, No.1-
2,1990-1991, pp.79-109, JUSE is revised in 1995. * 1990 year is data of 1991-1999.
14
The establishment of quality improvement/quality assurance system was consistently
a lot of purposes, it is to forecast naturally, that exists to be most in all items. In what
increases from 1970's, there are an achievement improvement by improvement of
company constitution and project/development power strengthening of a new product
and a new technology, and the cost reduction and profit improvement, the
establishment of cost and profit management system, the establishment and production
(Quantity and Delivery Date) management system and the establishment of every
members participative cooperation system though it is next mark. The establishment
and challenge of the management vision and management strategy, the establishment
and improvement of integrated management system, and the respect humanity and
human resources development increased rapidly in 1980's.
When observing like this, the purpose of the TQC promotion started by the
establishment of quality improvement/quality assurance system and the use of the
scientific management technique and the idea and the establishment of the system of
integrated management and completeness in 1950's. The purposes were added such as
improvement of achievement by company constitution improvement, cost reduction,
profit improvement, establishment of cost and profit management system,
establishment of every member participation and cooperation system, and then, the
birth age on TQC enter in 1960’s. When it entered in 1970’s, the establishment of
production (Quantity and Delivery Date) management system, strengthening of project
development/strengthen of product and technology, respect for humanity and human
resources development, were added as purpose. The age of 1980’s was called the TQC
boom, and it was taken up by the above-mentioned each item aiming, and the
conversion from "TQC of the defense" to "TQC of the attack" that the establishment and
challenge of the management vision and the business strategy, and strengthening the
business power was emphasized in addition, and it rushed into the age of the leap and
development of TQC. Moreover, GWQC (Group-wide QC) came to be promoted in this
age. TQC entered the age of internationalization in 1990's, and the contribution to the
local society came to be attached to importance. It is thought that it began to be
recognized as company quality issue like display of positive business attitude to aim at
social contribution of enterprise that became a problem until that time, and to respect
like the establishment of safety and the system of environmental protection that began
to be taken up from 1980's.
15
method of promotion, and all company target accomplishment activities and activities
according to divisions. If the item that 100 companies or more adopted in each
classification item is enumerated, it becomes the following.
From modern aspect, the company that does the introduction and the promotion of
about TQM is content of the activity that everything should be taken up even by each
company as content of basic and general activity. The management connittee etc. have
been managed in shape with these organization functions in small-scale small and
medium-sized enterprise though TQM promotion committee and TQM promotion
headquarters are the organizations organized in the large company.
Policy Management, the Cross-Functional Management, and Quality (QC) circle
activity were shown the concrete content of the birth of TQC in 1960's, though TQM
education, Standardization, and QM diagnosis had been executed since 1950's in the
methods of the promotion, and then the idea, methodology, and content were one by one
developed, advanced as the establishment of TQC in 1970's and the leap and
development of TQC in 1980's, and it became the necessary condition of today's TQC
activity. Thus, it is understood that the method of the organization and the promotion is
element as a basic precondition of the TQC activity that should be introduced and
promoted. That is, it can be clearly considered that all company target accomplishment
activity and the division activity have been done from the data of the Deming Prize
recipient company through this basic condition and all company system.
"Quality assurance" and "Cost and profit management" that are all company target
accomplishment activity are the content "Good and Right Price" in the corporate
activity that should be executed naturally, and do not have room for suspecting
everyone. In addition to these two pillars, the content of the activity according to all
company target accomplishment activity and activity according to division
corresponding to the business environment in the age has existed. That is, the Control
and improvement activities of process and equipment in 1950's, the introduction and
the promotion activity according to the progress of the above-mentioned basic condition
and all company system were valued in 1960's. It came to advance production
management action (Quantity and Delivery Date) and new product and new
technological development activity emphatically in 1970's when these had been
mastered.
16
Table 2.3 TQM Promotion Activities in Deming Prize recipient enterprise
Year 1950's 1960's 1970's 1980's 1990*** Total
No. of co.
Content of activities 33 16 36 54 39 178
1 TQM promotion
1
Organizatio
committee 32 13 28 51 36 160
n 2 TQM promotion
headquarters 30 16 35 54 39 174
1 TQM education and
training 26 16 34 49 27 152
2 Standardization 22 13 19 45 22 121
2 Method
3 Quality Circle 10 34 53 22 119
of
4 Policy Management
promotion
** 10 32 53 37 132
s
5 Cross-Functional
Management 11 32 54 34 130
6 TQM diagnosis * 4 13 22 52 37 128
1 TQM long-term plan 7 7 7 22 13 55
2 Vision management
and business strategy 1 8 25 19 53
3 Quality assurance 9 15 34 52 39 149
4 Cost and profit
3 management 5 10 21 51 36 123
Accompli 5 Production (quantity
shment of and delivery date)
a goal management 4 12 40 35 91
three all 6 Safety and
company environmental
activities management 2 14 15 31
7 Human resoources
development 5 6 22 33 66
8 Information
management 2 9 11
9 Social contribution 2 2
1 Management and
improvement of
process and 29 3 2 4 4 42
2 New product and
4 new technological
Activities development 2 5 10 32 24 73
according 3 Receiving and sales
to management 2 7 23 15 47
division 4 development of
subcontract and
cooperation trader 3 9 13 5 30
5 Cooperation with
overseas companies 1 2 1 4
The table of Noriaki Kano and Kozo Koura(1991) "Development of Quality Control Seen
through Companies Awarded the Deming Prize", Report of Statistical Application
Remarks
Resarch, Vol.37, No.1-2,1990-1991, pp.79-109, JUSE be revised in 1995. * The audit
and the q
17
A new product and new technological development were valued more and more as an
emphasis activity according to the division after 1980's while the as Vision Management,
Business Strategy, TQM long-term plan as the part, and all company target
accomplishment activities of the human resoouces development and safety and
environmental management came to be deployed, and recieving and sales management,
the promotions of the subcontract and cooperation company, and GWQC came to be
taken up. It is thought that the above-mentioned all items are promoted overall in
1990's, and cooperation with overseas company and information management are being
recognized.
The tangible effects that a lot of companies achieved through all periods
Management side: Profitability Rate, Productivity Rate, and Growth Rate
Management element aspect;
Quality: In-Process Defectives, Process Control, and User Demerit
Cost: Cost Reduction
Quantity and Delivery Date: Production Quantity and Delivery Date
Safety and Environment: Safety and Environment
Human Resources Development: Human Resources Development
Society: Social Contribution
Division activity: Development Capability, Marketing Capability, Information.
It becomes it.
It is thought that Growth Rate and Profitability Rate were obtained as tangible effects
on the management side because recognition of TQM's becoming the activity of all
companies and all divisions, and acting effectively on the management side.
18
Table 2.4 Tangible Effects of TQM Activities in Deming Prize recipient enterprises
Year
1950's 1960's 1970's 1980's 1990* Total
No. of co.
Tangible effect 33 16 36 54 39 178
1 Growth rate 1 9 21 46 30 107
1Manag
2 Profitability rate 5 7 15 37 25 89
ement
aspect 3 Productivity 1 5 25 20 19 70
4 Stability 4 5 1 10
1 In-process defects and
process control 22 6 15 19 18 80
2 Final product inspection 11 1 2 13 8 35
1 Quality 3 User demerit decrease 8 9 26 42 26 111
4 User merit increase 3 6 16 16 41
5 Market competition 1 12 17 9 39
2
Manager 2 Cost 1 Cost reduction 10 5 8 21 14 58
ial 2 Rationalization 4 4 3 7 18
element 3 Amount
1 Production quantity 4 2 5 14 6 31
aspects and
delivery 2 Inventory 3 2 7 4 8 24
date 3 Delivery date 3 5 17 12 37
4 Safety 1 Safety and environment 1 6 14 5 26
5 Human
resources 1Human resource development 2 14 40 28 84
6 Social 1 Social contribution 1 1
3 1 Development capability 6 18 35 24 83
Division
activitie 2 Marketing capability 1 1 7 2 11
s aspect 3 Informationization 3 3
4 General 1 Self-evaluation point 8 8
Noriaki Kano and Kozo Koura(1991) "Development of Quality Control seen through
Remarks Companies Awarded the Deming Prize" and Report of Statistical Application Research, Vol.
37, No.1-2,1990-1991, pp. 79-109, JUSE.be revised in 1995.
Moreover, the effect of Quality (Q), Cost (C), and Quantity and Delivery Date (D) in the
management element aspect is natural. On the other hand, it is the feature recently
that priority is given to Development Capability as the indispensable company
capability in the market competition staked one's survival, and the rise of the concern
on valuing the Sales Capability and Environmental side in addition. Moreover, the
Human Resources Development is thought from valuing "Human Resouces
Development toward the 21st century" as one of the company base construction as
explained in the motive of the TQM introduction.
19
Table 2.5 Criteria for Tangible Effects Evaluation in Deming Prize recipient enterprise
20
The company evaluation technique based on the idea and the technique of the
self-assessment that the MBNQA and the EQA adopt in recent years might be
developed, and the company that gives the self-evaluation has gone out.
When you enumerate the important one in each first level term
Management side: Etablishment of total cooperation system of all company, Smoothing
of Cross-Departmental Corporation, Clarification and throughout of
management policy, Promotion of improvement of company
constitution
Quality assurance side: Respect of other party's and Succeeding-process’s standpoint
/opinion, Smoothing of customer and in-house information
transmission, Establishment of Quality Assurance System
Attitude and the technique side: Spread of the idea and the technique of QC, from the
result emphasis to the process emphasis
Human side: Improvement of Quality Consciousness, Improvement of problem and
improvement consciousness, Improvement of problem-solving abilities,
Improvement of self-control abilities, Improvement of morale
Employee side: Workshop - making with working worth
It is enumerated.
About the management aspect, it is thought that the clarification and thoroughness of
company's basic principles as the effect of the Policy Management, and this, the making
smooth of cooperation between divisions is advanced by joining of Cross-Functional
Management, the integrated management system is achieved by establishing all
company cooperative relationship, and it related to the improvement of company
constitution. It becomes establishment of the management vision, it changes from “TQC
of the defense” to “TQC of the attack” after 1980's, and GWQM has developed, too.
21
Table 2.6 Intangible Effects of TQM Activities in Deming Prize recipients enterprises
Age 1950 1960 1970 1980 1990** Total
Intangible effect No. of co.
33 16 36 54 39 178
1 Promotion of improvement of
company constitution 3 12 39 15 69
2 Establishment of management vision 10 15 25
3 Clarification and thoroughness in
1 company's policy 6 10 16 33 16 81
Management 4 Establishment of company-wide
aspect cooperative system 3 11 27 48 20 109
5 Clarification of responsibility and
authority 4 2 6 12 7 31
6 Smooth cooperation between divisions 1 5 22 37 15 80
7 Enhancement of GWQM 2 3 11 2 18
1 Establishment of quality assurance
system 1 3 10 16 13 43
2 Transfer customer and in-house
information smoothly 3 2 12 19 8 44
2 Quality 3 Respect of opinion of other standpoint
assurance and subsequent process 3 1 7 24 13 48
aspect 4 Improvement of confidence of
customer 1 4 10 5 20
5 Quality leadership 2 5 9 1 17
6 Accumulation and improvement of
technology 3 1 3 10 4 21
1 Spread of idea and technique of QC 16 6 21 18 14 75
3 Attitude
2 Promotion of standardization 9 4 5 4 1 23
and
3 Understand importance of data 2 2 15 14 2 35
technology
4 From the result oriented to the
aspect
process oriented 3 15 20 10 48
1 Improvement of quality consciousness 5 8 20 37 14 83
2 Improvement of cost cosciousness 5 7 8 7 27
3 Improvement of problem and
4 Human improvement consciousness 2 2 15 27 17 63
aspect 4 Improvement of problem-solving 2 2 15 29 15 63
5bilit
Improvement of self management 4 17 20 10 51
6 Improvement of morale 4 18 12 14 48
7 Human resources development 1 8 11 9 29
5 Social 1Responsibility and contribution to
contribution customer and society 1 1 5 1 8
1 Making the joyful quality of working 1 3 13 7 24
6 Employee lif
welfare 2 Improvement of employee's welfare 1 1 1 1 1 5
3 Build up of labor relations excellent 2 1 1 4
Noriaki Kano and Kozo Koura(1991) "Development of Quality Control seen throough
Companies Awarded the Deming Prize" and Report of Statistical Application Research,
Remarks
Vol. 37, 1990-1991, pp. 79-109, JUSE be revised in 1995. * are included the ma
22
About the Quality Assurance aspect, employee's attitude named the esteem of the
opinion of other party's standpoint and succeeding-process activated in-house
communications like "The Succeeding-process is customer", it led to making smoothly
and the speed-up of the customer and the in-house information transmission, and as a
result the establishment of the Quality Assurance System was promoted. These results
led to the establishment of Quality Leadership and the improvement of confidence of
customer and the accumulation and improvement of technology of Japan from 1980's.
About Attitude and Technique aspect, the idea and technique of QC spread to all
employees and the acquisition of experience of the scientific management and the
system thinking promotes the Process Focus (Cause System Focus) recognition, that is,
from the result emphasis principle to the process emphasis principle. The
understanding of the importance of the data of the process and the data of the result
was deepened, and the enterprise posture in which a good result was standardized and
dvanced to the Daily Management, a bad result was advanced to the improvement
activity (Refer to Human aspect) was formed.
About Human aspect, it is a problem of man's consciousness and ability. All employees
improved the Quality Consciousness (Mind to think the quality to be important) here,
and the problem consciousness and improvement consciousness of the business were
improved, and it came to be thought "The problem existed in infinity", and achieved the
result of improvement of the problem-solving ability based on the QC story by the
improvement activity that used the QC technique (It is included in the spread of the
idea and the technique of QC). And, it is thought that the Self-Control ability is
acquired in the environment of independent esteem, it becomes like "It is not said from
others but proceed voluntarily", it leads in the improvement of morale, and it led to the
human resources development. It is thought that the effect of these human aspects is
steadily solved the problem facing a new problem, and is peeled off and connected with
the ability to new problem discovery willingly. The effect of a Human aspect was
connected with “To build a happy bright workshp which is meaningful to work in” of the
effect on the Employee Welfare aspect. Moreover, the responsibility and the contribution
to the consumer and the society are being recognized as a tendency to suggest the effect
concerning a human aspect of the future in 1980's.
23
It is actually feeling of all employees when this wins. However, inexperienced people for
the Deming Prize challenge newly join a company when the number of employees who
have the actually feeling decreases as the annual is passed or the experience and
actually feeling in the position and the employment title when the Deming Prize
experienced person also challenges the Deming Prize by the promotion from the section
chief to the director etc. cannot be used directly, and an intangible effect of the TQM
promotion will be made hackneyed gradually. The meaning of automatic generation of
the JQM of applicant qualification to the company that passed five years after winning
the Deming Prize as correspondence to this human obsolescence exists. Because both
prizes are fiscal year prizes, application is possible even by degrees how many. In that
sense, the multi time recipient enterprise of Table 2.7 is valuable assuming that the
practice example of obstructing the human obsolescence in an intangible effect of
exactly obtaining it because of all company activity is shown. This table is a typical
example until the first half of 1990's.
The feature in the effect according to the multi time recipient comany is brought
together in the following six points.
(1) The effort for the multi time winning presses a great improvement of the quality
control level.
(2) The quality control system that reaches at the level of one respondent by the last
winning is improved to a precise, advanced system in addition, with the
originality.
(3) An environmental change is taken in advance, and the system making of the market
aim, the customer satisfaction aim, and the source aim is done.
(4) The quality improvement that aims at internationalization and world No. 1 is
promoted.
(5) Growth remarkable like 1.8 times the sales increase in 1.3 times employee increase
of AISIN Kako Co. and 1.7 times the sales increases in 1.2 times employee
increase of AISIN Light Metals Co. when you see the company that won the
application prize after the small and medium-sized company prize is won.
It will be understood to accomplish it in five years that required it the second
winning.
(6) The TQC promotion is used as a tool for the strategic management, and the vision
management has been achieved.
These effects become the physical strength making and the endurance making of
the company, and recovery when the following economy develops and rise up it even at
the recession and burst of the economic bubble become early. The profitability recovery
of 13 multi time recipient companies at the time of the economic recovery can be
guessed from the recession period after oil crises to this for one year according to the
24
average of manufacturing because it was early.
Table 2.7 Multi Time recipients enterprise list in Deming Prize recipient enterprise
(Small and Medium Company Prize → Application Prize, Operation Business Unit
→ Application Prize, Deming Application Prize → Japanese Quality Medal)
25
In addition, there is an company group to which the winning activity of a wide
group that describes it later as the enterprise in the group does apply continually to the
Deming Prize and JQM like Toyota Motor and AISIN Co., Ltd., etc. is promoted, too.
Actually, there is a group where tacit consent that only the company won to the Deming
Prize like the AISIN Co., Ltd. group can apply the words preceding the title generally
disregarded in cataloging of "AISIN" exists, too.
(1) The QC Circle activities spread on a nationwide scale, therefore the quality
improvement activities over the wide range contributed to the quality
improvement.
(2) The TQC promotion of a related enterprise (delivery enterprise, cooperation
enterprise, and related enterprise) by Group–wide Quality Control (GWQM)
contributed to the quality improvement.
(3) A social system over TQM was composed.
(4) There were various activities that constructed TQM.
Process results caused from challenge activities for Deming Prize are thought to
influence the management and the economy in our country, so as follows verify.
26
The event such as convention are held respectively by nine branches of Hokkaido,
Tohoku, Kanto, Tokai, Hokuriku, Kinki, Chyugoku, Shikoku, Kyushu, and Okinawa
besides the QC Circle Headquarters being set up after it starts in 1962.
The activities situation of 40 years in the past is as shown in Fig. 2.2.
45.00
40.00 No. of Circle
35.00
Number of QC
Number (x 100)
30.00 members
25.00 No. of QCC
20.00
15.00 No. of participants
to QCC
10.00
No. of Pesentation
5.00 at QCC
0.00
1962
1966
1970
1974
1978
1982
1986
1990
1994
1998
2002
Fiscal Year
For about 420,000 circles and 3.26 million members as of 2002, facilitators staffs of
1609 people per 951 secretary companies. It is an exactly nationwide activity. It is
thought that it is likely to increase by several times over if an unregistered number is
included because this is a number of QC Circle Headquarters Registrations.
27
Contributing to the quality improvement and the cost reduction of each company in
each workshop is that the activity is indisputable.
For instance, the financial charge vice president in a big chemical industrial
company that was greeted it, saying that "It was actually felt that it was an effect of the
QC Circle activities though the reason for the improvement of the achievement and the
profit was not understood" on the all company’s QC Circle Convention. This is asked a
lot.
It is possible that the development of all company and nationwide QC Circle activities
has the influence that appears socially from the above-mentioned thing management
when pulling it.
And then, he observed the QC circle explanation of Ms. Akiko Yazawa, Ms. Reiko
Yamada and Ms. Mitsuko Yamazaki work in the Matsushita Communication Industrial
Co. Car Radio Division, and then the impression at that time was described as follows in
“QC Circle Phenomenon" (Juran, [6]). After that, he talked "QC Circle that fostered the
creativity of the worker" at the lecture meeting of the Kinki branch sponsoring with,
Osaka and Mainichi Hall on October 27, 1969 (Juran [7]).
(1) There must be an idea that all employees can be engaged in creative work in the
workshop about the part concerning QC in QC Circle regardless of the man and
woman.
(2) Be it to essentially universal, to do QC Circle in the idea of QC Circle once, and
other circles (Or, same circle) to be able to come to do creative work similarly
naturally about other matters if it is proven to be able to do creative work for
the matter of the quality improvement. There is no limit in this idea.
(3) The present age is an age of the technology innovation that doesn't last long one
occupation (work) in the age of man, and people is involved in one occupation
(work), doesn't exist for a long time without the education and training, and
either be left, too and because the reduce by half – life period (Man's ability is
gradually reduced by half at time that the isotope reduces the radiation by half,
too) comes to the ability, QC Circle offers a creative idea, and will prevent this
half - life beforehand before long.
28
After 1966, Dr. Juran for five years lectured on QC Circle, and was written
repeating the continent in all parts of the world repeatedly at each visit.
For instance, the keynote address concerning reliability that is the schedule is
suddenly discontinued and it is switched to the lecture on QC Circle in conferring on
EOQC: European Organization for Quality Control (now, EOQ: European Organization
for Quality) held in Stockholm, Sweden in June 1966. The special session was held by
the panelist of the late Prof. Kaoru Ishikawa, University of Tokyo, the late Mr.
Masumasa Imaizumi, Vice Chief of Engineering Department, Nippon Kokan Co., the
late Mr. Heizo Nambo, Chief of Central Committee of Quality Control, Nippon Kayaku
Co., and the Chief of the 3rd. Overseas QC Study Team, and Mr. Hiroomi Hayashida,
Manager of QA Department, Toyota Motor Co. and Vice chief of the 3r. Overseas QC
Study Team attended on that time and carried as the style of answer by Japan side form
question of floor side of about 80 persons of 30 countries by the chairperson of Dr. Juran.
Japan started in an age yet not established of the history of the Scientific
29
Management Theory and the IE introduction shallowly the introduction of Quality
Control and existed in the people in the climate where the solution to such a problem
was found.
That is,
(1) Educational extent must be high, and the assimilation power must be strong.
(2) It must be must loved working, proud of work, and there must be a nature that
is pleased with work.
(3) Have a groupism idea.
(4) The relation between the enterprise and the employee must be close.
(5) It must be the same language and it must be the same race.
These conditions are a nationwide introductions and promotions of the quality
control by needs of the quality revolution of Japan after the war.
30
Next, when you introduce "Fundamental of the QC Circle" (QC Circle Headquarters [5])
The QC Circle is
a small group
people who work at the workshop in the first line
continuously perform the control and improvement of qualities of the product,
service, and work, etc.
Display human capabilities fully and eventually draw out infinite possibilities.
Respect humanity and build a happy bright workshop which is meaningful to work
in.
Contribute to improvement and development of company.
31
. 2.5.2 Social Influence of Groups-wide Quality Management (GWQM)
It is considered GWQM program as followed by Koura [10].
(A) What is the GWQM?
Group-wide Quality Management: GWQM is the TQM executed in the company
group including a parent’s company and a related enterprise (related companies, tie-up
company, cooperation enterprise, sales companies, and overseas subsidiary).
The origin of this concept was traced back to the Training Program of the
“Materials and Purchase Quality Control education” on 1950s, and which need were
futher discussion at both of 10th Quality Control Convention in 1950, the 4th Quality
Control Symposium in 1966 and finaly publishing of "10 Principles of Vendee-Vender
Relation of QC" (Ishikawa, Mizuno, Asaka [11] Ishikawan [12] [13]) were expediting for
physical implementation. Komatu Co.Ltd. [14] announced the 1983 Quality Month Text
"TQC by Group-wide QC - from CWQC (company-wide quality control) to group-wide
QC -" in 1983, and then was recognized with in industries.
Table 2.9 is extracted data for GWQM (picked up by auther’s interpretation as
GWQM) among of reports on Deming Prize and JQM recipient company reports. * Mark
means recognized as Small and Medium-sized Industries categories, but which
integrated with Application prize section after 1995 that they are now counted under
Application Prize recipient.
32
Table 2.9 Example of GWQM enterprise group in Deming Prize recipient enterprise
33
As shown in Table 2.9, Toyota Group industries status were remarkably
overwhelming as many as 37 companies (70%) out of 53. This was not only Toyota Motor
himself but also Toyota’s main fundamaantal industries such as DENSO, AISIN, and
Hino Motors were actively supporting to own subsidiaries TQM implementation.
Moreover, they were not satisfied for own present status, but always persuading to
challenge for next higher level of prize, like from the Deming Prize Application prize to
JQM or Small and Medium-sized enterprise prize to the Application prize. It was
recognized that they have been challenging for betterment based on Continuous
Improvement awareness.
34
(d) Guidance system for group members company
(e) Establishment for evaluation system and recognition with evaluation
criteria with referring Deming Prize, JQM, and JQA, etc.
(f) Installation of mutual information interchanging system by way of IT
(2) Organization and management
(a) Establishment for organization and operation within group (Komatsu [14],
Oura [16])
① Senior Manager Informal Social Meeting and Top Management Exchange
Meeting (mutual exchange between presidents)
② Establishnebt of GWQM Secretary Meeting (to discuss project promotion
and corrective action for problem, and the management in the future of
GWQM Program/ once a month.)
③ Liason TQM Committee between cooperation companies (example:
Komatsu Midori Association TQM committee)
④ Various Liason Meetings with company in leading company and group
member companies (Quality Management Technical Committee and QC
Circle Liason Meeting, etc.)
(b) Establishment of organization and operation in leading company (Komatsu
[14], Oura [16])
① Establishment of TQM promotion committee
② Establishment of Xxx (parents company name) Quality Management
prize committee (A leading company commends TQM promotion
excellent company in the group every year. )
③ Establishment of Liason Division to company in group (Purchase
Management Division, Engineering Division and Consulting Division,
etc.)
(c) TQM implementation under one world-wide group
In the Xerox group, it encourages it as the Xerox company in each country
such as Xerox (U.S.A.), Rank Xerox (UK), and Fuji Xerox (Japan) be
challenging to own country Quality Award under vision
"Leadership-Through Quality" (Akiba [13]) (Table 2.10) (The source: From
the Fuji Xerox Co., Ltd. offer material). Its main back ground for
persuasion on such challenging were based on confronting with Xrox in
U.S.A. were facing with sluggish performance from 1970’s later portion to
1980’s, that the Fuji Xrox was implementing TQC in 1976 and recognized
as recipient of Deming Prize 1980.
35
Table 2.10 Main Quality Awards that Xerox group had won
28 companies in total
36
Fuji Xerox had organized a Mid-term Policy Management Conference to
link in ‘Policy Management’ with person in charge of Southeast Asian
sales companies etc. Also, at time of Fuji Xerox Asia-Pacific Ltd.
establishment in 1991, the QC Circle Convention was organized for
participation of OPCOs representative (nine countries in total: South
Korea, Taiwan, Thailand, the Philippines, Indonesia, Australia, New
Zealand, Singapore, and Malaysian) from 1992 by once a year, as a
regional representative management company, and the victory circle was
recognized for being present at NWW (New Work Way) forum that Fuji
Xerox holds as local delegates (Nihon Keizai Shimbun [20]).
Master
Business accomplishment
37
education outside the company, and various courses were used. And, In-house training
curriculums were designed by referring JUSE and JSA course and the course charge
lecturer of two above-mentioned groups (It was chiefly professor, assistant professor,
and lecturer in university, public research, or professional experts and top management
and staff of Deming Prize recipient enterprise about the success experience story) was
invited to an insufficient course with in-house lecturer.
Under Dr. Kaoru Ishikawa’s maxim " Total Quality Control begin from education
and end to education", only continual educations for many years were emphasized for
foundation of thick layer human resources development in every level of employees.
38
course and Foreman course, all of an in-house course of every year are
enforceable by themseves. In addition of the above, further continual in-house
courses, fresh man courses for TQC ability development and register every
employee's promotions and raise by TQC education, are expenditing for
prevention of obsolescence of TQC implementatin by continual in-house
education, and total human resources development is carried out by combining
with the necessary professional education and the culture course, etc.
39
Table 2.13 Educational Course of group enterprises (example of Komatsu)
Course name Object person Lecture-time Lecturer Frequency
Top management course: KTMC Director 11 hrs:1.5days outside 1/2 years
Section chief of Related co. course Ssection chief 28h:3days in-house 12/year
: KMC(B) *
Basic course of related co. QC staff 119h/12days in-house 2/year
: KBC(B) *
Instructor training course Candidate 26h:3days in-house 2/year
: QCIT of instructor /outside
Multivariate analysis Manager 32h:4days in-house 4/year
method course: KNV and staff
Design of Experiment needed 32h:4days in-house 2/year
method course :KDE . a special
Reliability management course technique 36h:4days in-house 3/year
: KRM
(*: special course, besides it is executed jointly with our company. )
40
Table 2.14 Three Sub-meetings and its Objectives
*1: The QC Award give to object that passed three years (Takenaka is five years) after
receiving the Excellemt Prize. There is an aim of continuously improving the
business structure setting a high target.
*2: It is object companies of the Komatsu QC Award.
*3: The shop relation is excluded.
41
(G) Company Evaluation System
(1) Qualification System for membership in Group-wide industries
Takenaka Corporation was established a qualification system for
membership into Chikuwa Association by investigation, selection, and
evaluation system to accept for member among about 10000 companies of
business relationship (The source: From the Takenaka Corporation Ltd. offer
material).
(2) Evaluation System for Company Constitution Improvement
To promote for self-propelled own constitution improvement by themselves
at corporation companies, Komatsu established this recognition system for the
mentioned Constitution Improvement encouragement in 1980. This system was
organized for persuading to have self-evaluated its own business performancfe
index, management index, and management system to stand objectively verify
its own level (rank) and identify own problem at the same time, then to settle on
company constitution improvement program, to proceed on by themselves, and
Komatsu was concentrated for planning of assistance, support and guides of
improvement to the cooperation company.
When these entrprise reaches at the level of “A” rank by the Company
Constitution Improvement Evaluation System, it is recommended to challenge
to the Komatsu Quality Control Award (Oura [16], Uchida [21], Tamura [22]).
42
After Maeda Construction Industry Co., Ltd was recognized as recipient of Deming
Prize in 1989 and JQM in 1995, Fujimi Technology Laboratory (1998) and Miyama
Industry (1999) of the collaborating companies were recognized for Deming Prize
43
③ Proceed to organize TQM promotion and implementing organization
according to the constitution.
④Use their support of parents company and cooperation association, etc.
44
For raw material : 200 – 300
This is, 9800 – 14000 enterprizes are participated for accompany in a group.
Materials
exterior parts,
Secondary part
processing, Plant
Secondarily assembly processing equipment
2000-3000 companies 500-600 companies
Press work, platings, cutting, screws, and Same left, tools,
casts, and forged parts. jig, metal mold,
7000-10000 companies
45
Grancing over such status report, while most of enterprises are identified by “xx
company” showning for one of “KEIRETSU” company but they are physically managing
their own company under GWQM which are needlessly to say company independenet
different dimension (fundamentals) though such a structure is used, isolating from any
spelling by financial or human support. GWQM could be called as “Consensus
Management (management by mutual agreement)” philosophy as the enterprise group
activities to proceed for attainment of self–sustaining independent management and
Coexistence and Coprosperity with “Common Business Philosophy” and “Common TQM
implementation methodology” by combining Group member awareness based on
“Quality Chain”.
For instance, 13 AISIN group companies have steadily been organized “President
Assembly” with president to jointly manage company business of "Vision Management",
"Quality Supremacy", and "TQM Diagnosis" as a common management method. The
Quality Chain here is indicated for the system with which function of each stage of
marketing research, product planning, design, trial manufacturing, production
preparation, purchase, manufacturing, inspection, sales, and service is seamless
(without seam: refer Chapter 8) connected by the Quality Assurance activities based on
the Quality Conciousness. And, the cooperation between every personel regardless
in-house and outside person, organization, and company related to this system
eventually gives birth to Customer Satisfaction (CS) through the product and service.
Toyota group is structured in another different form such as shown Fig. 2.5 because
its structure is established by GWQM.
TQM transition process from big enterprise to middle and small corporation by the
GWQM activities is thought as follows: Toyoda has 14 companies within so-called
Toyota group that are world-wide level functional product company such as DENSO and
AISIN and finished car assembler such as Hino Motors, Ltd., and Daihatsu Kogyo Co.,
Ltd. Their group had established own affiliate company cooperation organization call as
Kyoho Association (206 companies, 2004) and Eiho Association (123 companies, 2004)
(Increase further in future). On the other hand, the foreign parts manufacturer is a
hugeness system by which only TMM has about 300 companies.
Further, not only DENSO (Deming Prize recipient in 1961) that became the pioneer
of the TQM introduction in the Toyota group but other whole companies were Deming
Prize recipient and Toyota itself, Toyota Auto Body, and AISIN, were JQM recipient
enterprise. And, DENSO, AISIN, and Hino Motors had pusuaded own
affiliatedcompany for challenging and recognized as recipient by both Deming Prize and
JQM-recipient companies. The above-mentioned are an active part of the breakthrough
46
and innovation age of Japan with TQM implementation between 1965 and 1980. And
then, the Japan car enters the age that has worldwide competitiveness. In such a
structure, in addition, there is an order to the small and medium-sized enterprise
respectively of the Toyota group and the cooperation companies. That is, the structure of
GWQM concept implementation were spreading into new sector (outside of present
structure) as shown Fig. 2.5. And, to expedite for GWQM implementation not only
Toyota group but in affiliated whole company Quality Committee for TQM
implementation and were deployed into third level subcontractors at present.
Toyota group
Toyoda Industries, Aichi Steel
Works, Toyota Machine Works,
Overseas parts
Toyota Auto Body, AISIN*,
manufacturer
DENSO*, Toyota Spinning &
They are also delivering
Weaving, Kanto Auto Works,
to other offer
Toyota Gosei.
manufacturers that
Toyota Associated company
numbers are unknown:
Motor Hino Motors*, Daihatsu,
Only TMM is about 300
Corp. Total: 14 companies.
companies.
Support
Cooperation companies:
Kyouhou association: 190
companies of manufacturer
related to components
TSSC**
Eihou association: 66
USA
companies of manufacturer
related to equipment
Remarks
* GWQM is composed of each company.
** TSSC: Toyota Supplier Support Center
Fig. 2.5 Structure of GWQM in Toyota Motor (As of 1994.)
(Source. TOYOTA MOTOR CORPORATION offered material)
47
And, there is part delivery manufacturer to purchase from the overseas parts
manufacturer and the overseas Japanese advancement factory (Example USA Even
only TMM is 300 companies) because Toyota had decleared the fundamental policy
"Best Procurement in the World". If the improvement of company constitution support
from these delivery manufacturers was requested, not only Japan but also foreign firm
was given the chance of Toyota’s willing support and set up TSSC (Toyota Supplier
Center) corresponding to the USA parts supplier in September 1992 and started the
support service though received, for instance, friction over automobile trade and
affiliated criticism. At the time of inauguration celemony, the United States Federal
Government officials and Dr. J.M Juran who contributed TQM introduction of Japan
also attended for celeblation. It is reported that TSSC decided to be raised as earnings
division in May, 2002, Nihon Keizai Shimbun on July 7, 2003 reported for this subject
"The deflation gnaws: Part 6: for the new energies (3)" though it is Toyota that came in
shape near "Repaying kindness to USA" as the hand box lunch according to guidance, it
will foster TSSC as profit center form May 2002.
As for such business attitude and GWQM implementing policy, it thought that it
is enabling the spread of TQM to a domestic small and medium-sized company, and has
contributed for advancing on improvement of product quality, total cost down, and
business and financial index improvement.
48
satisfaction and enjoy for Co-existence and Co-prosperity through TQM.
There is a big difference with the KEIRETSU concept that is rather apt to
fall into disadvantage that this respect falls easily as exclusiveness or
coercion (Kuno and Yamada [31]).
49
planning stage, and be opened the door for supporting on quallty, cost,
technology, and physical distribution to enterprise at level of international
conpetitiveness industries. Under TQM methodology, GWQM is one of business
management methodology that leader industries be assisting for process at
umbrella companies and processing for mutual development between brother
companies and eventually be accomplished for expediting improvement of each
company constitution and achievement of Co-existenceand Co-prosperity.
(2) In the AISIN group, there is no boss in the enterprise in the group and all
companies are equal. The name is called as "All AISIN" and the member
companies are called as "Brother Company" in the reason.
(3) If the improvement of company constitution support is requested from the
supplier, the chance is given regardless where located in Japan or foreign
country.
For instance, TSSC was established in September 1992, and began the
support service as already described. In addition, the object of the Toyota QC
Award was expanded to the United States manufacturer in January 1993, and
it was made to become independent as earnings division in May 2002 (Nihon
Keizai Shimbun [28]).
(4) Best Procurement in the World
If only quality, price, technology, and physical distribution, etc. qualified for
competitiveness, Toyota will procure for component/part from worle-wide
manufacturer. This process is now in common sence under internet age, it is
wondering on suppliers qualification program on quality evaluation.
(5) It is encouraged for every subcontractors to be independence through self-help
effort, that is, a new product development are extended, and product sales total
to parent company be 50% less than.
As for tipical example was reported, AISIN AW had developed new
technological oriented AT for FF, which contributed to parent company
development by the new product development in advance prior it. AISIN AW
caught flow of making to Miniaturization and FF trend and forseen necessity
of small-type FF need in market for vehicle utilization, and established the
AW-Z project (Z mean it in there was no back) at the risk of the future of
company, and finally developed and installed the four-speed AT for first FF
car in the world. In addition, AW-Y was acknowledged as for AT for FF with
world highest level of universal installation characteristics and advanced
level of new technology implementation and delivered to assembler faced the
line-off, and attained to the position of world-wide strategic merchandise
(Nayatani, Moroto, and Nakamura [32]).
50
(L) Consideration
It is summarized for GWQM activities as follow.
(1) It is important to build mutual trustworththiness and round-table
meeting between Top management of parent company and Top
management of collaborating company, and to install a comfabulation
chance for concluding on common group-wide philosophy and confirming
consensus of group.
It is as follows that includes creed and vision etc. of the enterprise as the one if it
illustrates it.
Toyota group TOYOTA 2005 VISION: Harmonious Growth
All AISIN group Business Philosophy: Quality supremacy
Xerox group Vision: Leadership-Through Quality
NEC group Business Philosophy: C&C (Computers & Communication)
51
the Antitrust Law of the USA, but the vertical is recognized as a category of
strategy, and the KEIRETSU of Toyota is thought the vertical type though a
little characteristic difference is admitted. The specific reason is justified by
“Design-to-Cost” that is enforceable in view of the management side.
Accordingly, GWQM is the quality mind group corporate activities for
improvement focused function that is originated from different angle to
KEIRETSU but it has enough characteristics and performance for supplement
to KEIRETSU effectively.
(6) As for future direction of Qualiy Management, it could be heading to GLQM
corresponding to the progress of the globalization of industrial development of
each company. International companies are constructed their own plant in
forein countries under obligation of ISO 9000, ISO 14000, and QS 9000, etc.
that global concept would be necessary to disseminate for uniform quality
creation in any countries.
(7) Corresponding to rapid advancement of the information technology, e-business
or Virtual Enterprises/shop concepts are beginig to pick up as topic now. The
E-commerce are further developed into BtoB (business to business), BtoC
(business to consumer), and Intranet, too that GWQM itself are necessary also
to reform into product by product, or project by project and cooperation between
enterprises of global network.
52
Fig. 2.6 Social Systems around TQM
53
These social systems were planned and excuted through nation-wide quality control
promotion and wide-spreading industrial standardization into various industries during
50 years long history with ceaseless hard working in Japan.
54
to increase since 1970, which were reflecting for one of counter action to survive, by way
of company constitution improvement under sever economical environment fluctuation
suffering from Trading Freedom, Dollar Shock and Oil-shock.
It is noted that every recipients for Deming Prize and JQM are mostly recognized
as representative industries in Japan, accordingly “Quality Revolution” mentioned by
Dr. J. M. Juran, these Japanese Industries, especially Japan Production industries have
been devoted for international competitive quality product creation through Quality
Revolution by TQC.
55
concept dessemination and rearing Quality Control leader, then each supporting
organization were physically assisting for every industries implementation with
Government support under joint cooperation activities. Under such situation, various
education, dissemination, research, social diagnosis system and international
interchangeing and liaison activity were continually and effectively structuring with
annual or semi-annual periodic convention or conferences.
Today, the core member of QCRG have been passed out, Professors Shigeru Mizuno,
Dr. Kaoru Ishikawa, and Professor Masao Kigure and Professor Tetsuichi Asaka has
retired, it is an time to welcome new leader for new age and for future.
2.6. Consideration
In this capter, it is conclued that the motive for TQC introduction and
implementation were triggered by rapid change of social environment such as market
and trading status were deeply related with Japanese economical development, and
TQC implementation were recognized not only for tangible effectiveness creation on
quality, cost, quantity (amount), delivery date, and human related contribution, but also
for business performance improvement. It is not confirmed for direct contribution
process to Japanese Economy by TQC, but quantatively summarized as contribution to
Product qualiry improvement, growth of QC Circle activity and growth of GWQM that
the following are conclued.
(1) It is not confirmed for immediate degree of relationship between TQC and
Japanese Economical management and economical indexes yet, but it might be
some degree depending on QC Circle activities status, and some impact of
GWQM.
(2) If only number of Deming Prize and JQM recipient are one of contribution index
for Rapid Recovery after the War II, Japanese industries which have
contributed for productivity and company’s constitution improvement through
quality appreciated business management by mainly production industries (in
these days including Construction and Service industries) were to ranked as the
best contributors fot their effors through physical implementation of Deming
Prize and JQM application under GWQM system with faithful TQC
implementation.
(3) Not only structuring of Social system based on TQM concept , but effective
functioning of joint cooperating oraganization between industry, academy and
Government for TQM implementaion.
Thus, the disgrace of notorious made-in-Japan product as "Cheap and bad" had
wiped out, and Japanese product achieved a fame of "Better and reasonable price"
product exporting, by way of"Quality Revolution" mentioned Dr. Juran [36].
56
Fig. 2.7. Various Activities of promoting TQM
57
Reference
1. Noriaki Kano and Kozo Koura: Development of Quality Control Seen Through
Companies Awarded the Deming Prize, Report of Statistical Application Research,
JUSE, pp.79-105, 1990-91, December, 1991
2. The Kozo Koura: The history of TQC and the consideration - Toward TQM - , Asahi
Business Review, (1) Vol. 10, No. 1, pp. 39-55, June 1995. (2) Vol. 10, No. 2 pp. 21-39,
Dec. 1995. (3) Vol. 11, No. 1, pp.131-147, June 1996. (4) Vol. 11, No. 2, pp. 85-98,
December 1996.
3. Yoji Akao: Feature "It is thought the TQM Declaration(2)" – “thought to be TQM
declaration", Quality Control, Vol.40, No.2, pp.6-9, February 1998.
4. The QC Circle Headquarters Ed.: QC Circle Koryo – Fundamental of QC Circle -, p.5,
Union of Japanese Science and Engineers, November 1970, revised in May 1996.
5. The QC Circle Headquarters Ed.: How to operate QC Circle Activities, p.4, Union of
Japanese Science and Engineers, July 1997.
6. J.M. Juran: QC Circle Phenomenon, Industrial Quality Control, Vol.23, No.7, 1967.
7. J.M. Juran: QC Circle that fosters creativity of worker, Genba-to-QC, No.75,
pp.64-67, 1969.
8. Kozo Koura: QC Circle Activities – Workshop Revolution by participation of all
members - p.112, Sogo Rodo Kenkyusyo, July 1970.
9. Kozo Koura, Hideaki Hattori, and Hiroyuki Fukai: Investigation and Research
concerning QC Circle and Respect for humanity, Institute of Industry & Information,
Asahi University, Report, No.10, pp.101-138, February 2003.
10. Kozo Koura: Investigation and Research on Group-wide Quality Management, Asahi
Business Review, Vol. 15, No. 2, pp.31-52, March2001.
11. Kaoru Ishikawa, Shigeru Mizuno, and Tetsuichi Asaka Ed.: The 4th QC Symposium,
"Problem of Vendee-Vendor Relation", pp. 189-203, June 1967.
12. Kaoru Ishikawa: Group Wide Quality Control - Necessary Condition for Success
and Survival; Journal for Quality and Participation, Vol.11/1, pp.4-6, 1988
13. Kaoru, Ishikawa: Ten Principles for Vendee - Vendor Relation from the Stand point
of Quality Control; “The Control and Assurance of Quality". ASQC. “Procurement
Quality Control". V-V Technical Committee, October 1969.
14. Komatsu Ltd.: Quality Month Text, No. 150, TQC by the group wide- From the
company wide to group wide TQC"-, the Committee of the Quality Month, October
1983.
15. Minoru Toyota: Group-wide TQC in Aisin Seiki Co., Ltd., Quality Control, Vol.35,
No.8, pp.14-18, August 1984.
16. Makoto Oura: Group-wide QC in Komatsu Ltd., Quality Control, Vol.39, No.2,
pp.30-35, February 1986.
17. Tetsuo Yamada: TQC promotion, development toward cooperation company in
58
Takenaka Corporation, Quality Control, Vol.35, No.8, pp.28-33, August 1984.
18. Yosaku To, Yuichiro Yoshikawa and Minoru Harada: QC Activities case by
cooperation with customer, Quality Control, Vol.39, No.2, pp.22-29, February 1986.
19. Kojiro Akiba, Takamitu Ishikawa: Group-wide QC in Fuji Xerox, Quality Control,
Vol.39, No.2, pp.36-41, February 1986.
20. Issue on August 9, 1995, Nihon Keizai Shimbun: "Research of Fuji Xerox (2)-
Coporative Community by Fate"
21. Toshiyuki Uchida: Spread and thoroughness in QC to cooperation enterprises -
Activities that centers on Komatsu Quality Control Award -, Quality Control, Vol.31,
November, extra edition number, pp.303-307, Noember 1980.
22. Koji Tamura: Improvement of Enterprise Evaluating Method for Level Improvement
of Cooperation Enterprise, Quality Control, Vol.33, No.8, pp.84-92, August 1982.
23. Hideyuki Negishi: KEIRETSU and the part procurement policy in Toyota Motor,
Keiei Kodo, Vol.9, No.3, pp. 21-29, March 1994.
24. Masao Nemoto: Quality side of the Toyota Production System - Research of System
Chart for New Pupil -, the 19th Annual Conference Special Lecture Summary
Material, Japanese Society for Quality Control, October 1989.
25. Issue on October 3 2000, Nikkei Industrial News, "Verification: Toyota; Group
management steadily strengthen, M & A, Inside Reorganization, Rearrangement of
Role, and Concentration of Full Power.
26. Issue on October 4 2000, Nikkei Industrial News, "Verification: Toyota; Group
management steadily strengthen, Construction of “KEIRETSU” of New age,
Redistribution of resource by avoiding Repetition.
27. Issue on March 5 1992, Nikkei Industrial News, “Landing stand Toyota- attempt to
reviewing Shape of Centripetal Force by wishing into New Idea.
28. Issue on October 17 1991, Nihon Keizai Shimbun evening newspaper,
"Counterargument toward Criticism of KEIRETSU of Japan - president Toyoda"
29. Japan Automobile Manufacturers Association: "Japanese Car and Parts Industry"
JAMA (Japan Automobile Manufacturers Association) Report, No.42, p.2,1991.
30. David N. Burt, Michael F. Doyle: The American Keiretsu- A Strategic Weapon for
Global Competitiveness -, pp.44, Book Press Inc. 1993
31. Masanori Kuno, Nariyasu Yamada: 1995 Graduation thesis "Investigation
concerning Group-wide QM and KEIRETSU", pp.9-20, March 1996, Asahi
University.
32. Yoshinobu Nayatani, Schuzo Moroto, Taizo Nakamura: Development of Creative and
Attrctive Commodity, pp142-147, JUSE Publishers, July 1997.
33. Vision Management in TQM Case Study Committee: Vision Management
Guideline, Japanese Society for Quality Control, September 2001.
34.Kiyoshi Ito: Attractive Enterprise-making by TQM, JUSE Publishers, June 1996.
35.Masao Kigure: TQC of Japan, JUSE Publishers, pp. 27, June 1988.
59
36. J.M. Juran: Up-coming century of Quality, Quality Progress, August 1994,
pp.29-37. (Keynote Address, ASQ 48th AQC, May 24, 1994).
60
Chapter 3 Quality Award in each Country and its Ssocial Influence
This chapter is summarized that stated subjects of researches for
inter-relationship of their Quality Award enactments process, and their social
influences of implementation in the each countres, through studying on each country
report issued.
United States, NBC (National Broadcasting Co.) broadcasted famous “If Japan Can,
Why Can’t We?” in 1980, which were heavily surprised to business management USA,
and were triggering for studying of Japanese Management. Through which, it was
clarified for one of the prime-mover was “Quality Control” that USA had taught
Japanese for poor quality reconstruction after World War II, and Dr. W.E. Deming and
Dr. J.M. Juran in USA were on the surfaced as for their main-spring in Japan.
Eventually reversal reexport of Quality Control from Japan were begun to USA
Industries and at the same time, their visit, consited of so many business management,
professor, and consultant were congested by west-ward visits.
The Deming Prize was one of main topics covered for these visits. Number of groups
61
and individual visited to JUSE from abroad were, as shown in Table 3.1, their visits to
JUSE were rapidly increased by group and individual from various countries in 1980s,
and it was observed the peak for visit in 1990, then gradually decreased after 1995. The
country of each visitor were reached 115 countries (59.9% of the world of 192 countries)
during such period. The country disoatched to Japan more than 100 times or more were
counted as 466 from USA, 153 from Brazil, 108 from Mexico of American Continent, and
169 from France, and 111 from United Kingdom of Europe, and 307 from South Korea,
139 from China, 128 from Taiwan, 127 from India of Asia. These survey tour would be
contributed not only for motive and information on introduction of the MBNQA in
U.S.A., EQA in Europe and other quality awards in each country, but for TQM
implementation.
62
contribution of Deming Prize established in Japan on June 1951, by which Japanese
industries were constructing of international strong competitiveness worle wide level in
1980s. Recognizing such evevts, US Government were established “MBNQA” Program
for recovery tool of US industry under the national strategy which are endorsed by
"Public Law 100-107" signed by President Ronald Reagan in August, 1987 (NIST
[4][5][6]).
Moreover, reacting on a quick success of the MBNQA, EFQM (European
Foundation for Quality Management) by endorsement of 14 large multinational
companies of Europe was established to promote the TQM principle implementation in
Western Europe nations in October 1991 (Nakkai & Neves [7]). EFQM won the support
of EOQ (European Organization for Quality) and the EU (European Union) committee
that enacted two kinds of quality award: one is EQP (European Quality Prize): Awarded
to the enterprise which is fully conformed with qualification creiteria, the other is EQA
(European Quality Award): given to qualified for prize criteria, and EQA; given to the
highest achievement level company (EFQM [8], Tsuda [9]).
Table 3.2 Countries of the world where Quality Awards are enacted
Regional name Country No. of country
Asia Abü Zabi, China, Dubayyi, (Hong kong), India, 16 (1)
Israel, Japan, Lithuania, Malaysia, Philipines,
Singapore, South Korea, Sri Lanka, Taiwan,
Thailand
Oceania Australia, Fiji, New Zealand 3
North & South America America, Argentina, Brazil, Canada, Chile, 12
Colombia, Ecuador, Havana, Mexico, Peru, Puerto
Rico, Uruguay
Europe EQA, Austria, Belgium, Croatia, Czech Republic, 31
Denmark, Finland, Fance, Germany, Greece,
Hugary, Iceland, Ireland, Italy, Latvia, Lithuania,
Netherlands, Northern Ireland, Norway, Poland,
Portugal, Russia, Scotland, Slovakia, Slovenia,
Spain, Sweden, Switzerland, Turkey, Ukraine,
United Kingdom
Africa Nigeria, Mauritius, South Africa 3
Total sum 65
Note) The country that was the underline is a country that obtained evaluation criteria.
63
EQApropagated
to all Europe
and Africa.
When being in 1990s, Japanese industry were suffering from structural recession
as shown Fig. 3.1, Japan Productivity Center for Socio-Economic Development has been
trying to inversely import MBNQA which have actively been recognized as one of prime
recovery elements among USA industry, and enacted the JQA modified the MBNQA to
in December, 1995 (which is shown by a black bold line). The big arrows in Figure 3.1
show the situation of the move and propagation, and some country were installed on
own originl Standard or a standard by which TQM was added to ISO9000, but most of
all are following through MBNQA and the EQA criteria that the both Award influence
are quite high.
Moreover, each state of USA are actively established for own State Award after
MBNQA concept, as in 59 State Quality Award (SQA) and Local Quality Award (LQA)
are enacted in 36 states, and 48 awards are based among those on the MBNQA criteria
(The source: From Quality Digest, February, 1997, No.50, and pp.22-23). Such situation
is described for "Quality Culture is forming within the country” (Godfrey [10]).
64
Region Japan American European Asia
(except Japan)
Oceania
Malcom Boldorige
Japan Quality Medalrol
National Quality
Award European
Quality
Deming Prize
Award
State or regional Each country
quality award quality
48 prizes in 36 award
Quality
Quality
Asia 11
Award in
Enterprise Quality Oceania 2
Each
Award (Ford etc.) 13 countries
country
Enterprise (except Hong
of
Award
Table 3.3 Classification Table of Quality Award Types (it overlaps exist)
Region D prize MBNQA EQA ISO9000, TQM original.
Asia 2 3 1 4
America 1 4 1 1
Europe 1 5 15 3 1
Oceania 1 1
65
Middle East, and Asian countries. Moreover, a comparison research between each
National Quality Award are conducted not only Japan but also in USA and European
countries, and IAQ also investigates the project at the 50th ASQ annual conference
(Stephens [11]). Figure 3.2 is grancing table of such National Quality Awards status by
area and type.
Table 3.3 is indicated for type of National Quality Awards, but some countries are
established their own criteria with combination of MBNQA, EQA or Deming Prize.
66
One Handredth Congress of the United States of America
AT THE FIRST SESSIONN
Begun and held at the City of Washington on Tuesday, the sixth day of January 6,
One thousand nine hundred and eighty-seven.
An Act
67
management-led and customer-oriented require fundamantal changes in
the way companies and agencies do business;
(7) Several major industrial nations have successfully coupled rigorous
private sector quality audits with national awards giving special
recognition to those enterprises the audits identify as the very best; and
(8) A national quality award program of this kind in the United States would
help improve quality and productivity by-
(A) helping to stimulate American companies to improve quality and
productivity for the pride of recognition while obtaining a competitive
edge through increased profits
(B) recognizing the achievement of those companies which improve
the quality of their goods and services and providing an example to
others,
(C) establishing guidelines and criteria that can be used by business,
indutrial, governmental, and other organizations in evaluating their
own quality improvement efforts, and
(D) providing specific guidance for other American organizations that
wish to learn how to manage for high quality by making available to
change their cultures and achieve eminence.
(b) PUPOSE. – It is the purpose of this Act to provide for the establishment and
conduct of a national quality improvement program under which (1) wards are given to
selected companies and other organizatins in the United States that practice effective
quality management and as a result makesignificant improvements in the quality of
their goods and services, and (2) information is disseminated about the successful
strategies and programs.
68
AND TECHNOLOGY TRANFER PROGRAM. “(f) FUNDING. “(g) REPORT. “(h)
CONFORMING AMENDMENT.
3.2.2 Origin of referring as TQM and Malcolm Baldrige National Qualiy Award
The origin of TQC have been tracing back to the book “Total Quality Control” (1961)
edited by Dr, A. V. Feigenbaum, but Japanese TQC were independently developed into
under clear-cut concept and formalized processing scheme which were defined by Mr.
Ryoichi Kawai, President o f Komatsu Company, a recipient of Deming Award in 1964.
To eliminate the confusion between USA and Japanese Way TQC concept
implementation program, it was proposed as Japanese TQC was called as
“Company-wide Quality Control” (CWQC) by Dr. Kaoru Ishikawa, for clarification, in
1980s [12].
On the other hand, Dr. Linda Doherty, stationed at California, Navy Air System
Command had proposed for implementation of Japanese style management approach to
quality improvemet in Navy procurement to Dr. Costello, Department of Defense, at the
time of beginning of reverse exporting on “Japanese type Quality Control program”
in1980s.
Since then, TQM (Total Quality Management: The usual Japanese term is
company-wide quality control) approach has been instructed for long-term success
through customer satisfaction. TQM based on the participation of all members in
quality improvement of processes, products, services, and creation of new company
culture in which they work. The methods for implementing this approach are founded in
the teachings of quality leaders as Dr. Joseph M.Juran, Dr. W.Edwards Deming, Dr.
Armand V. Feigenbaum, Mr. Philip B.Crosby, and Dr. Kaoru Ishikawa.
However, in 1900s, a word of “Control” was not appreciated because of meaning
‘Coercion’, that ‘Quality Control’ means rather suppressive meaning to employees to
follow: not by own initiative, but force to do by superiors. Then “Total Quality
Management” is recommended to accept under appropriate terminology for Customer
full satisfaction achievement by self-oriented concept.
The MBNQA criteria are cited as the best example for evaluation of Total Quality
Management performance under most widely accepted definition. (Golomski [13], Link
& Scott [14], Quality Glossary [15])
69
September 15, 1988, and the quality management foundation establishment draft book
was signed in chairman Dororl attendance in June, 1987 (EFQM [8], Tsuda [9]).
70
(f) Execution of management of market oriented
(4) Mission and vision
Mission
(a) The process from which the Western Europe enterprise makes the quality
is accelerated, and the management effort to exert a definite influence on
reinforced achievement of competitive edge in the global market is
supported.
(b) The effort of any part and hierarchy of a Western Europe regional
community to participation for the activities that raise the culture that
improves quality and respects the quality also is encouraged and helped.
Vision
It is a leading organization to spread and improve Total Quality
Management in Western Europe.
71
Then, EU (European Union) and EFTA (European Free Trade Association) imposed
for obligation of Quality System cirtification requirement by ISO9000 series to every
industry for customer satisfaction. Then they have issued a slogan "Global Approach" to
upgrading for level of Product quality and Quality Awareness, but later the following
state weakness are recognized;
Table 3.4 Main Forces of Quality Activity and Quality Award enactment situation
in Europe
Country Inspection, Quality Quality Total Quality Quality
examination Control Assurance Management Award
Belgium ** ** *** ** ○
Denmark * ** *** *** ○
France *** **** **** ** ○
Germany * * ** **** ○
Greece * * * *
Ireland ** *** *** ** ○
Luxembourg * * * *
Netherlands * * *** **** ○
Portugal **** **** *** * ○
Spain **** **** *** * ○
United Kingdam ** ** **** ** ○
Note) Each introductory condition of deepness is somewhat shown about *. The author
added the column of the quality award.
(Brendan Barker Edit: Quality Promotion In Europe. dependence)
72
Productivity Center for Socio-Economic Development (JPC-SED). It became a main
body of the CS Forum on May 14, 1994. As for the CS Forum, 100 and tens companies
participated, two research groups of the evaluation system research and the criterion
research started, and pilot version evaluation criteria "Customer Value Management
Award" was made in 1995. In addition, the study was added from industrial sides such
as industrial property, consumer property, and service property, etc. and it became
"Management Quality Award Evaluation Criteria" in 1996 (Japan Productivity Center
for Socio-Economic Development [18]).
73
MBNQA Application, Recipients, State Award/Regional
Award Application transition
120
Application
100
No. of Companies
80 Recipients
60
Recipients total
40
20 State Award,
Regional Award
0
88
90
92
94
96
98
00
02
19
19
19
19
19
19
20
20 Fiscal Year
Unit: Number of State Award and Regional Award applications that is numerical of
MBNQA application, numerical of recipient, and totaled recipient (number of
enterprises)(ten enterprises)
Fig. 3.3 MBNQA recipient enterprise number transition graph
President Mr. William J. Clinton message written in the cover sheet of Criteria for
Performance Excellence in 1997 and 1998 as follows.
1997:
" The Unite States is the most competitive nation in the world. Quality is a key to
retaining that title. The Malcolm Baldrige National Quality Award is helping U.S.
companies satisfy customers and improve overall company performance and capability."
William J. Clinton
1998:
" Quality is one of the key to the continued competitive success of U.S.business. The
Malcolm Baldrige National Quality Award, which highlights customer satisfaction,
workforce empowerment and increases productivity, has come to symbolize American
commitment to excellence."
William J. Clinton
74
MBNQA are categorized into five Eligibility Categories, of Manufacturing Business,
Service Business, Small Business, Education Organization, and Health Care
Oranization, and three awards in each Eligibility Category by each year, which are
possible to be awarded up to 15 awards or less at a time.
Application Review are consisted of three stages as follows,
Stage 1 – independent review and evaluation by at least six members of the board
Stage 2 – concensus review and evaluation for applications that score well in Stage 1
Stage 3 – site visits to applicants that score well in Stage 2
Juges’ review and recommendation of Award recipients
(2004 Criteria for Performance Excellence, Baldrige National Quality Program, pp.64)
So far past data shown 871 applicants in 15 years of 1988-2002, and Site Visit
Review were selected as 183 applicants and 51 were recommended as Award recipients
that 79.0% of them applicants were decided as unqualified at the stage of Independent
Review, 72.1% of them were disqualified (which were 94.1% of the first applicants) at
Site Visit Review, and only 5.9% of first applicants were passing through such tough
gates. When looking through its status by year, it observed the peak were 106
applicants in 1991, and shown downward as 29 applicants in 1996 and 26 applicants in
1997 and now staying at between 40-50 applicants under steady stabilized situations.
On the other hands, State Quality Award (SQA) and Local Area Award (LAA) are
independently established by the State or the Cities for Quality Recognition citation,
that Quality awareness are staying at US Citizens under Grass Roots movement.
Figure 3.3 are plotted their applicants status by years, it revealed that MBNQA’s
declining and SQA increasing status in 1991 were observed at the almost same time.
Then it was shown that MBNQA were maintained 40-50 at the same level, but SQA and
LAA were in rather downward after entering in 2000, however this data was, Nist
mentioned, rather inaccurate. However, so far verifying of SQA and LAA implementing
status are counting more than 36 States, it could be interpreted as Industrial quality
improvement scheme be established social system as “the first step is taking SQA
recognition and the second are MBNQA” from the situation in which the SQA and the
LAA are widespread more than 36 states now. When reviewing of data “1997 State &
Local Quality Award Statistics" issued at the Quest for Excellence in 1997 and the offer
data from NIST in 2003, SQA application submission number were 7076 during 15
years, average is 472 per year, and 1015 was a peak in 1999, and the situation in which
SQA application number were approximately 8 times higher than MBNQA application
number on average per year became the result of proving the above-mentioned
hypothesis according to data of documents distributed. For instance, MBNQA
applicants in 2002 was 49, however SQA were 395.
75
This observation was further mentined by Odashima [20] as introducing the
Opening Speech of the Secretary of Commerce's at the 9th MBNQA Quest for Excellence
in February 1997, as
(1) When MBNQA found, Deming Prize was benchmarked, the enactment of
National Quality Award improving the Constitution in short-term by the expert
directly guidance type method for all Americans enterprise as large range
couldn’t decide on adoption.
(2) Therefore, it exerted one's ingenuity so that the evaluation criteria may be
clarified, and management person's self-assessment was possible.
(3) The MBNQA was made under government, state, enterprise, and specialist's
cooperation as a law. (Note: It was thought that Dr. W. E. Deming and Dr. J.
M.Juran were included in this)
The above is clearly indicated that the target of country and energy of the people
who participated in this subject are supporting the MBNQA.
76
elements in globaloperation. In fact, the Baldrige process has proven to be a
most effective tool in assessing and guiding improvements in our global
business model.
Bob Banks, Vice President of Quality, STMicroelectronics-Region America
(1999 Baldrige Award Recipient - Manufacturing)
(e) Supply Chain.
We are using the Baldlige Criteria to futher integrate our supplier chain into
our up-front business processes.
Barry Nickerson, Chief Operating Officer, Marlow Industries (1991 Baldrige
Award Recipient - Small Business)
(f) Cycle Time.
In the past two years, Lucent Technologies, Inc., Optical Networking Group,
has reduced new product introduction cycle time by 45% while improving
on-time new product availability from 91% to 95%. (Includes what was
formally AT&T Network System, Transmission System Business Unit, 1992
Baldrige Award Recipient - Manufacturing)
(g) E-commerce.
An e-commerce economy is causing manufacures to redesign their business
model. The Baldrige process laid the foundation for the development of our
e-business strategy.
Don Wainwright, Chairman and Chief Executive Officer, Wainwright
Industries Inc. (1994 Baldrige Award Recipient - Small Business).
(h) Environment, Health, and Safety.
Focusing on the Criteria of the Malcolm Baldrige National Quality Award
focus us to integrate environment, health, and safty into our business. The
effort resulted in not only a higher quality product, but also the realization
that the market reward environment, health, and safety leadership.
Michael J. Leake, Director of Environment, Health, and Safety Raytheon
(Includes what was formerly the Texas Instruments Defense Systems &
Electronics Group), (1992 Baldrige Award Recipient - Manufacturing).
(i) New Product Sales.
Over the 10 years prior to applying, 3M Dental Products Division (1997
Baldrige Award Recipient - Manufacturing) doubled global sales and market
share, and from 1991 to 1996, it doubled its rate of profit. In addition,
products introduced between 1993 and 1997 accounted for 45% of total
annual sales, up from 12% in 1992.
(j) Accelerate improving efforts.
Applying for the Baldrige Award also helped us set a pace for our quality
improvement efforts that we otherwise wouldn’t have maintained. It created
accountability through the Award cycle that moved us faster and moved us
77
further than we could have done on our own.
Jeff Pope, Partner, Custom Research Inc. (1996 Baldrige Recipient - Small
Business)
(k) Employee Involvment.
The Trident Precision Manufacturing Inc. (1996 Baldrige Award Recipient -
Small Business) empowers its employees to make process improvements,
implementing 98% of the 5,000 suggestons it received between 1998 and 1999.
In fact, 95% of the improvement at Trident comes from its own resooouces and
people.
(l) Focus your organization on a common set of goals.
When we began our quality journey, we expected it to reduce customer
complaints and product waste and improve customer satisfaction. But it has
done far more than that. Employing Baldrige-based criteria has enhanced our
business performance by using a systematic approach that engages all our
stakeholders. It has created a common language that we use across all levels of
our organization. The process has unified our organization and focused our
energy and enthusiam on a common set of goals.
Jerry R. Rose, President, Sunny Fresh Foods (1999 Baldrige Award Recipient –
Small Business)
(m) Improve your organization’s performance.
We aimed for the Baldrige Award to drive our business processes to world-class
levels. During the years of preparation we made significant improvements in
our business processes, such as strategy development and deployment and
customer stisfction systems. The clear direction set by the Criteria, their direct
linkage to our business needs, along with the competition-inspired teamwaork,
were the main reasons for these improvements.
Alan T. Eusden, Vice President and General Manager, Cornig Inc.,
Telecomunications Products Division (1995 Baldrige Awrard Recipient -
Manufacturing).
(n) Costomer Retention.
Seven percent of BI’s (1999 Baldrige Award Recipient-Service) top customers
have been with BI for five or more years.
78
The questions are as follows.
Finding No. 1: The criteria’s primary use
Finding No.2: The criteria’s usfulness
Finding No. 3: How often the criteria are being used and by whom
The above-mentioned are justifying how the MBNQA evaluation criteria are effective
79
for business result/performance evaluation to identify weakness and strength and needs
of corrective action that MBNQA are categorized for evaluation requirement “Category
7 Business Results” as Customer-Focused, Product amd Service, Financial and Market,
Human Resource, Organizational Effectiveness, Governance and Social Responsibility.
These guidelines are taken directly from the Criteria booklet: “Business Results”,
(2004 Baldrige national Quality Program, Criteria for Perfomance Excellence,pp.26-29),
and “Guidelines for Responding to Results Items (ditto pp.61-62)”.
The Clark American Co. (material production for the financial institution) fell into a
crisis extremely in 1993-1994. Not bad for a company that woundered in 1993 whether
it could continue to exist. In the words of W. Edwards Deming, Clark American use
quality tools and the Baldrige excellence model to find its way “out of the crisis” tp
produce truly impressive bottom-line results.
Revenues per employee became more than $144,000 in 2000 from $81,000 in 1995,
profit growth became 17.3% in 2000 from 3.3% in 1995. Even with the economic
downturn in 2001, Clarke was able to increase its profits 4.6%. And, the Texas Award
for Performance Excellence was won in 2001, and it became the only winner at the
MBNQA – Manufacturing in 2002.
80
approach to business excellence.
② Defining a vision, strategy, mission, and value for wth.
③ Deploying FIS tools (Voice of the customer:VOC,QFD,Clark American Response
Exercise:CARE), process management, and a Baranced Business Plan (BBP).
④ Redesigning its approach to the market with a partner and customer focus.
⑤ Creating a team based learning organization (Key Leadership Team:KLT).
⑥ Making strategic investments to expand its offering.
These were able to participate the target deployment by the top down.
The vision, core purpose, mission, value, FIS, and quality policy that show the
excellence are as follows.
Vision statement:
To become a world- class customer management solutions company providing
innovateive, quality driven solutions that delight our partners and customers.
Core purpose:
To be the company people trust and prefer to provide quick and accuate financial
documents, products and services that make transacting their business easy and
secure.
Mission statement:
We will be recognized as a First in Service company by our customers, partners,
suppliers and shareholders as a result of our commitment to superior service and
quality performance.
We will achieve long-term profitable growth by providing value added short run
printing and related high quality products and services to the financial
institution market and other selected channels.
Values:
Customer first Quality workplace
Integrity and mutual respect Recognition
Knowledge sharing Responsiveness
Measurement Teak work
First in Service:
The way we do business, driven by the Baldrige model.
Quality policy:
With each product and service we deliver, we will strive to exceed our customers’
expectations. Our standard of performance is 100% satifaction.
In addition, Clark American Co. is being offered the the FIS process and training of BBP
etc. in cooperation with the consulting company in all over the U.S. such as
regions United Way.
81
(C) Social influence of Malcolm Baldrige National Quality Award
"Economic evaluation of the Baldrige National Quality Program" under the concept
of the following formula; Project 01-3 of NIST in 2001 by Professor, Albert N. Link, the
University of North Carolina and Professor John T. Scott, Dartomouth College [14] was
reported, as
"The social rate of return = the social returns /the social investments"
(1) Social Operating Cost between 1988 and 2000 of the Baldrige National Quality
Program were caluculated as follows;
The Malcolm Baldrige National Quality Improvement Act of 1987 states that:
“The secretary (of Commerce) is authorized to seek and accept gifts from
public and private sources to carry out the program.”
The public source of funds for the Baldrige National Quality Program is an
annual allocation from the NIST budget.
Between 1988 and 2000
* NIST Allocations ($)
* Foundation Allocations ($)
* Company Reimbursed Examiner Expenses ($)
* Examiner Time (hours)
* Total Operating Costs (constant 2000 dollars)
and the amount of presumption of the result of investigating was $119 million
(around $2000/day).
(2) Social Benefits Associated with Baldrige National Quality Award Program
It is to collect a basic data from answers against question sent to ASQ
institutional members as origin of data, which are extrapolated to estimate by ASQ
organizational members, and then these data are further extrapolated to the entire
US economy for estimation of national benefits of MBNQA. The ASQ agreed to
distribute to its 875 U.S. organizational members a questionnaire related with
Social-benefit of Baldrige National Program Office, and 65 organizations (7.43%)
returned. Then, estimating for the entire ASQ organizational member based benefit
by extrapolate are revealed as $2.17 billion of the value of a net social profit by the
Baldrige National Quality Program and if done by USA in total population
extrapolation, is moderately presumed as $24.65 billion of present value of social
benefits.
82
(2) Social rate of Return = Net Social Benefits/Social Investment
= $24.65 billion/ $119 million = 207 to 1
(D) Consideration concerning the Malcolm Baldrige National Quality Award, U.S.A.
(1) United States splendor and strength are in the place in which it learns to Japan, it
reflects frankly, and it improves it. Moreover, after enacting the Malcolm
Baldrige National Quality Award, the situation in which the state and the city
enact the quality award by the spirit of “Anerican Democracy” as "Grass Roots
Democrac" is wonderful. It is thought exactly following under President Abraham
Lincoln, “For the American (people), To the American (people), By the America
(people)”. As Dr. Dr. Kaoru Ishikawa [12] "The Basic Role of Government - No
Control, but Just Stimulation", are strictly implemented in USA This is strongly
reminded the difference with Japan. It is necessary for Japanese to have the
attitude that also learn more modes and frank for anything of the world.
(2) 120,000 of Criterias in average during year have been distributed, and Web Site is
installed recently, and the MBNQA is recognized and is widespread by NIST.
Download number by Web Site have been reported 80,000 (if counting 960,000
per year and number of Criteria is added by 57,000 in 2002, total number would
be reached one million per year), such activities cann’t be seen in Japan.
(3) Although NIST is one of State Organization, its operation cost is managed by
private funds of deposit from private commercial organization. It is hardly
recognized for MBNQA’s economical influence is studied as such except USA and
the posture in which the economical influence is studied as a project during a
concrete year is not seen in the award of another country.
83
EQA Recipients
Transition
70
98 Defferentiation
of Public Sector
60
50 97 Differentiaton
Sum of Winners
of SME
40
30 99 defferentiation of
Operational Unit
20
10
0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Fiscal Year
And the Small and Medium-sized Enterprise are separated in 1997 and further
divided into an Independent Enterprise and the Subsidiaries of larger Organization.
Public Sector Organizations was independently established in 1998, and Operational
Units of Companiesis separated in 1999. Since the first installation of EQA , hundreds
of organizations have been applied within 11 years till 2002, which means almost of
substantially covering whole European countries, with joining from wide-Europem
market. (EFQM [25])
Their records are shown as follows.
Manufacturing: Telecommunications device, Fiber, Car, and Tire.
Public Sector: School, College, Revenue, Accounts Office, and Ministry.
84
SME (subsidiaries of larger organizations) A: 3 P: 5
Public Sector A: 2 P: 5
Total A: 20 P: 45
Total Sum 65
11 height won in 2000 and 5.9 by a year on the average by 2001. The influence
that differentiating into three Categories (Small and Medium-sized Enterprise, Public
Sector Organization, and Operational Unit) and adding of Large Business become four
categories also are thought.
(3) European Quality Award Finalist
Each year the Award Jury will define a level above which Applicants are declared
to be Finalists of Award. Finalist are organizations that demonstrate a high
degree of Excellence in the management of qualitya their fundamental process for
continuous improvement and may be considered as role models in a member of
areas.
(4) Recognised for Excellence
A new level of recognition, Recpgnized for Excellence, was introduced by EFQM in
2001. There are two routs available;
(a) All Applicants for the Award that do not attain the level of Finalist but yet
achieve a consensus score above and approate level will be offered a site visit.
If the site visit confirms a score in excess of 400 points the Applicantwill be
Recognised for Excellence. This indicates that the organization is well
managed and aspires to achieve role model status.
(b) The second route will involve direct application process to either the EFQM or
a number of our National Partners.
85
④ Create a succinct decription of the organization in terms of its activities, ways of
working and results (the Submission Document). This will be valuable in
communication, promotion and training contexts
⑤ Provide you with an opportunity to learn from the good practices of others
⑦ The most significant benefit is the feedback report that is prepared by a team of
independent Assessor – senior managers and experts from across Europe. The
feedback report provides key messages at an overall and criterion level. Lists of
strengths and areas for improvement for each of the sub – criteria addressed in
your application are also provided. The Assessor’s scoring prifile is also given and
there is a comparison with the other organisatoons applying for the Award.
Finally, the Senior Assessor will be available to attend a meeting at your
premises to discuss the content of the feedback report.
(b) Benefits of Winning
① The opportunity to use the logo of the European Quality Award winner, Prize
winner or finalist in corporate literature will clearly establishe the winners as
members of the most successful group of organisations in Europe.
② This should inevitably lead to the emergence of new and more satisfied
customers, fresh challenges and new opportunities for the organisaton.
(c) Sharing good practices
① Award winners, Prize winners and Finalits are expected to share their
experiences and practices at conference and seminar organized by EFQM and its
partners.
② As European role models, Award winners will also be required to make a
version of their successful sbmission avaiabel for all Applicants and Assessors in
their category and could also be included in "Excellent One (EFQM comrehensive
interactive on line learning platform via the Internet)"
③ Each Prize winner will also be asked to document a number of good practices
identified by their Assessor team. They will be incuded in Ecellence One.
③ High scoring Applicants will also be approached by EFQM to include identified
good practices in the EFQM good practice database.
86
2000. The unemployment hovered around 5.6% to 5.7% in 2001 and 2002.
When you show a typical enterprise case
(a) Burton-Apta Refractory Manufacturing Ltd.
Burton-Apta’s 230 employees make refractory ceramic products and complete
systems used in kilns that produce other ceramics. The company has worked to
improve the operational quality of its systems and processes since the eary ’70 and
initiated its operative quality regulaton system in 1976. The emphasis was on the
connection between quality control (of production and product) and technological
development.
The idea of TQM was brought into Hungary by a former professor of Tsukuba
University and MIT guest professor Shoji Shiba (Note: Depend on the request of a
Hungarian Industrial Ministry) in 1986. The Burton-Apta Co. introduced the idea,
won International Institute for Applied System Analysis (IIASA) Shiba-Award in
1993, and acquired ISO 9001 certification. It won a first Hungarian National Quality
Award in the mid-sized business category at 1997 beginning of the year, the European
Quality Award finalist in 1998, the European Quality Prize in 1999 and finally it won
the European Quality Award in 2000. As a result, the production loss decreases and
the market share is rising though an economic depression. The manager in this
company completes new QMS (Quality Management System) now, and is performing
the role of the best practice spread in all Hungary. Moreover, the influence of the
Burton-Apta reaches other enterprises in the region, and gives the environment a
special emphasis.
(b) Herend Porcelain Manufacturing Ltd.
The QMS based on ISO 9001 introduced in 1987 and registration was achieved in
1995, and the development of the TQM system that integrates ISO 14000 and British
Standard Institute’s BS 8000, the safety management system, and other QMS is
carrid out in addition. The failure cost was decreased more than an increase of the
prevention cost, activated the development activities, and strengthened the market
position as a result. The first IIASA Shiba Awarde and the first Hungarian National
Quality Award were won in 1996, and it became a winning of enterprise
ecology-business awards in 1999 and 2001.
(c) Pick Meat Co.
The idea, the tool, and the technique of the quality were widely used after it had
established it in 1986, the Bronze Medal at the 1900 World Expo in Paris, a certificate
of merit at the 1935 World Expo in Brussels, the Hungarian National Quality Award
in1999 and recognition for excellence by the EFQM in 2001 and 2002. Moreover, the
execution of calling GMP (Good Manufacturing Practices), GHP (Good Hygiene
Practices), HACCP (Hazard Analysis and Critical Control Point), and QCCP (Quality
Analysis and Critical Control Point) was decided, ISO9001 was registered in 1995,
and the system was later improved and audited to ISO 9001: 2000. Crystal Crown
87
Award was won at the international festival held in Birmingham, Alabama, USA in
2001. There are the synergy teams made up of parent company and affiliate
companies.
(d) Westel Mobile Telecommunication Co.
Founded fewer than 10 years ago, Westel Nobile Telecomunications Co. Ltd., the
leading provider of 1700 people or more's Hungarian wireless communication service
enterprise now. The use of the Malcolm Baldrige National Quality Award criteria began
under the guidance of the United States’s consultant in 1994, and it became the
Hungary’s first telecom provider to achieve ISO9001 certification in 1995. 25 managers
participated in the EFQM self - assessment criteria in 1996, the improvement plan of
each division was made, and it executed it in the business scheme. It became the first
Hungarian National Quality Award winning enterprise in the Hungary service sector of
the same year. This was followed by the European Marshall Award for business
achievement in 1998 and the Hungarian Innovation Award in 1999. EQA Prize were
won in 1999 and ISO14000 cetification came in 2001.
88
Table 3.5 Japan Quality Award recipient enterprises
89
The social influence of JQA is summarized by analysis of awarding justification by
KJ-method as “Analysis of business performance improving trend ar the recipients”
(from the Management Quality Council Report).
Typical excellent company are proceeding on self-conclusion and high efficient,
agile management style based on own prominent business creed and CS management to
challenge for change of sever market and customer needs and conforming with rapid
technical innovtion age in severe industry environment, amid depression of
international economy, collapse of bubble economy etc, as for rapid change and low key
of social economical condition.
Each company are started for kicked off of Customer Value Creation and business
quality improvemen activities and self-moteve and giving birth to Joy of Work activites
under sharing a vision with customer, partner and employees, and strong leadership of
Top Management.
As for its strategy concerns, deployment for heavy awareness on Customer Value
Creation, foreseeable technical strategy, environment full protection strategy, and
concentrating and structuring of cooperation system for business process improving
activities on customer reception service, information co-possetion program beyond
company organization and structure boundary by IT, structuring of human resources
fostering, studying program, and open and challenggble quick respondable tacit
organizational climeate, and obtaining higher customer satisfaction level, customer
retention and market share expansion, improving recognition of high market evaluation
by excellent performance achievement, then the enterprise success model with further
development of these results by continuous assessment is shown. .
90
Table 3.6 Management Quality Awards spreading to Japan various places (2003. )
Regional Reseach Approach of the
No. Regional Award Regional Council
Society Administration
1 Iwate Prefecture Iwate Prefecture Hokkaido Iwate Prefecture
2 Aizu Wakamatsu Akita Prefecture Gunma Prefecture Takizawason
3 Tochigi Prefecture Miyagi Prefecture Kanagawa Prefecture Ibaragi Prefecture
4 Ibaragi Prefecture Aizu Wakamatsu Centrall part district Mitaka City
5 Chiba Prefecture Tochigi Prefecture East part of Shizuoka Yokohama City
6 Itabashi Ibaragi Prefecture Hokuriku Mie Prefecture
7 Niigata Prefecture Saitama Prefecture Toyama Prefecture Matsusaka City
8 Fukui Prefecture Chiba Prefecture Tottori Prefecture Gifu Prefecture
9 Mie Prefecture Niigata Prefecture Shikoku Fukui Prefecture
10 Hyogo Prefecture Fukui Prefecture Kochi Prefecture Sabae City
11 Nagasaki Prefecture Mie Prefecture Saga Prefecture Kobe City
12 Kansai Kagoshima Prefecture Kochi Prefecture
13 China Okinawa Prefecture
14 Kyushu
15 Nagasaki Prefecture
Total 11 15 13 11
91
the TQM activities is concentrated with the dramatic measures.” and the
aim of Japan Quality Award was is “to reinforce by sharing the concept of
MBNQA and EQA to match the level of the criteria to an international level
to catch up to the level of other country.” It is thought also the criteria were
constructed by TQM.
92
(2) What kinds of social economical influence were observed in each country by
Quality Award establishment?
The Quality Award was created the flow of the worldwide attention of
“Quality Awareness” not only just by each country but also by global people.
As recognizing of the prosperity of the USA in 1990s, the MBNQA have been
contributed to the recovery of US economy by improvement of international
competitiveness of American Products and the enterprise. The operation
expense of the Malcolm Baldrige Quality Program from 1998 to 2000 is $1.19
million, and the economical effectiveness $24.65 billion (under modest
estimation), and the social investment effect rate is counted as 207 times.
As for EQA concerns, its social and the economic influence of the EQA are not
surveyed yet, it is recognized for EQA benefit such as to recommend for
business excellence model to industry, and identify and recognize for
recipient industries as glorious EQA Recipient by logo, and study program
through home-page progrum was enabled in European industrial world.
93
Reference
1. Noriaki, Kano and Kozo Koura: Development of Quality Control Seen Through
Companies Awarded the Deming Prize, Report of Statistical Application Research,
JUSE, pp.79-105, 1990-91, December 1991
2. Corin N. Johnson, editorial assistant: Annual Quality Award Listing, Quality
Progress, Vol.35, No.8, pp.48-57, August 2002
3. John D. Hromi, Editor: The IAQ National and International Quality Awards Project,
International Academy for Quality (IAQ), The Best On Quality, IAQ Book Series
Vol.5, ASQ Quality Press, 1995
4. NIST (National Institute of Standard and Technology): Malcolm Baldrige National
Quality Award, 1996 Handbook for Board of Examiners, United State Department
of Commerce, Technology Administration, p.3-1, 3-0 The Malcolm Baldrige
National Quality Award, Background. 1996
5. NIST: Malcolm Baldrige National Quality Award, 1996 Business Application Forms
& Instruction. United State Department of Commerce, Technology Administration,
National Institute of Standard and Technology, 1996
6. NIST: Baldrige National Quality Program 2001 Criteria for Performance Excellence.
Gaitherburg, MD, U.S.A. 2001.
7. Behnam Nakkai and Joao S. Neves: "Deming Prize, Bordrige Award, and European
Quality award - quality control continuity" July, ENGINEERS, No.549, and year of
pp.13-19, 1994
8. European Quality Award for Theses on Total Quality Management 1996/ 1997 call for
Application, European Foundation for Quality Management
9. Yoshikazu Tsuda: The European Quality Award - EFQM and the EFQM quality
award - Quality Control, Vol.45, No.5, pp.75-82, May 1994.
10. A. Balton Godfry: Quality Management in the USA―The Revolution Continues―,
40th Annual EOQ Congress Berlin, Proceedings Vol.3, pp.179-188, September 1996
11. Kennth S. Stephens: National Quality Awards ―Complements to Quality Systems―,
ASQC's 50th Annual Quality Congress, Proceedings, pp.735-742, May 1996
12. Kaoru Ishikawa; Translated by David J. Lu: “What is Total Quality Control-The
Jaoanese Way-“, Prentice Hall Inc.1985
13. The letter from Mr. W. A. Golomsky, July 10, 2000.
14. Albert N. Link and John T. Scott: Planning Report 01-3, Economic Evaluation of the
Baldrige National Quality Program, Final Report Aubmitted to the National
Institute of Standard and Technology Program Office, October 2001(offered
material from NIST)
15. Quality Glossary: Quality Progress, Vol.35, No.7, pp.43-61, July 2002
16. Ichiro Miyauchi: Circumstances concerning quality in European nations (1),
ENGINEERS, No.564, pp.12-17, October 1995
94
17. Ichiro Miyauchi: Circumstances concerning quality in European nations (2),
ENGINEERS, No.565, pp.1-5, November 1995
18. Japan Institute of Productivity and Socio – Economy: Japan Quality Award, pp.8-12,
Productivity Publication, March 1996
19. Japan Management Quality Award Council: Japan Quality Award Assessment
Criteria, version 2001, July 2001
20. Hiroshi Odashima: Special edition, the feature globalization, the current state, and
in the future (2) - Aiming at "Esteem of piece" and "Symbiosis" - "Deming Prize
and each country national quality award" -, Quality Control, Vol.48, No.10,
pp.27-34, October 1997.
21. Baldrige Quality Program, “Why Apply?" NIST, 2003
22. Karen Bemoski, Bred Strathon: How Do People Use the Baldrige Award Criteria?
Quality Progress, Vol.28, No.5, pp.43-47, May 1995
23. Kenneth G. Best: The Criteria: A Looking Glass to Americans' Understanding of
Quality, Quality Progress, Vol.30, No.12, pp.59-64, December 1997
24. Susan E. Daniel: Check Out This Baldrige Winner, Quality Progress, Vol.35, No.8,
pp.41-47, August 2002
25. EFQM: "Appendix 4", EFQM Level of Excellence, European Quality Award
Information for Applicants-2002, pp.22, 2002
26. EFQM: “4. Why you should apply for The European Quality Award", EFQM Level of
Excellence, European Quality Award Information for Applicants-2002, pp.8-9, 2002
27. Pal Molnar: Hungary's Journey To Business Excellence, Quality Progress, Vol.36,
No.2, pp.55-64, February 2003
95
Chapter 4 Development of Comparison Methodology of Quality Award
As for mentioned in the previous Chapter 3, the Quality Awards in each country are
developed to evaluates the best practice of TQM implementation in each country
concerted efforts now, and it is possible to contribute to systematic understanding of
basic philosophy and objectives on TQM implementation through comparison of the
criterias. In this chapter, it is proposed the criterias comparison method developed by
Koura and Yoshizawa [1]. The proposal method in this chapter can be applied to not
only the comparison of National Quality Awards related to TQM but also the
comparison of more general criteria.
The EQA was enacted by EFQM (European Foundation for Quality Management)
referring to the MBNQA in 1991 under the cooperation of EC (European Commission)
and EOQ (European Organization for Quality). Each country in Europe enacts their
own National Quality Award based on the EFQM model which are reflected into own
96
national features (EFQM [4], [5]).
The JQA were established for purpose of revolution and creation of international
competitive edge by improvement of business management quality in Japan after the
model of the MBNQA in 1995. It is necessary to compare fortheir value and contribution
with the Deming Prize internationally and domestically as a quality award in Japan
(Japan Quality Award committee [6]).
The Deming Prize became the mainspring of the Quality Revolution in Japan after
the Foundation in 1951, and also under reviewing from technology propagation, it was
recognized for uprising and spreading for quality awareness into worldwide level and
expediting for MBNQA establishment in USA (Deming Prize committee [7]). The
Deming Prize is consited of “Deming Prize for Individual”. “Deming Application prize”
“Quality Control Award for Operations and Business Unit”, and my study is based on
Deming Prize to industrial organization but just abridged as “Deming Prize”.
97
Award TQM Element Deployment Table is used in Para 4.4.
Then TQM Quality Award Element Comparison Matrix (synsethis) is proceeding to
Cluster Analysis for reconstructing of TQM Element Deployment Table (synthesis).
This reconstructive table is used as common standard (It is said anchor) that becomes
basic for the comparison between the system of a lot of awards and TQM model. The
final TQM Quality Award Element Comparison Matrix of 180×46 is combined each
Quality Award TQM Elements Deployment Table with TQM Elements Deployment
Table (synthesis) that composes the result of the Cluster Analysis again.
At this stage, it is concluded for result from studying and refered for problem
remained.
98
(6) As for the period from the application to recognition, the Deming Prize is one year
and the MBNQA is six months (Remark: However, Deming Prize is that physically
May 31 is the deadline of application presentation and announcement of recipient
and Deming Ceremony are November that it is also six months).
(7) Regarding for these discussion, Mr. Reimann (NIST, Quality Program, Associate
Director) [12] was supplemented as follows;
(a) The MBNQA is more appreciated TQM or the Total Quality concept.
(b) Target Community is covering broader sectors as manufacturing, service,
government, hospital, and school.
(c) The MBNQA is heading for performance orient evaluation, and appreciating
results than Deming Prize evaluation. As for organization or methodology
concerns, it is depending on industries options as non-restrictist and just
request for evidence of their innovation atatus and adaption effectiveness.
(d) The examiner team of the MBNQA selects the examination committee member
among professional people in industrial sector and university every year. And,
those members have not any experiences of guidance relations with potential
applicant organization like Deming Prize. This is reason that a specific
technique is not encouraged like above-mentioned Performance Orientation at
all.
(e) The MBNQA was designed for not emphasizing on qualification evaluation, but
for competitive based evaluation, because a competitive oriented system are
more encouraging to apply by the best model in every industries. The Deming
Prize evaluation is soley depending on JUSE Counsellor's (Note: Academic
society and public professional experts) interpretations for the criteria.
It is understood that the Deming Prize emphasize TQM and use of the statistical
method and the MBNQA emphasize Total Quality with competitive concept.
(B) Nakhai & Neves [13] presented the paper that the Deming Prize, the MBNQA, and
the EQA call under Quality Management Continuum, and compared their award
criteria and application categories, based on their fundamental value creation
concept and their Quality Management concept as follows in 1994.
(1) The Deming Prize is defined "The prize is given to the enterprise to which it is
recognized that the Total Quality Control based on the Statistical Quality Control
was surely executed, and seems to be continued it in the future". Evaluation
characteristics are specified quality assurance activities, quality performance, and
elimination of failure, but not for human resources development, customer
satisfaction, influence to society and business performance evaluation categories. It
is requested to be paying attention on cost, productivity, delivery date, safety, and
environmental consideration, but not in MBNQA and EQA.
99
(2) MBNQA is recognized their requirement is “To promote quality awareness,
understand the requirement for quality excellence,and share information and
benefits about auccessful quality strategies”, that are highly recognized as nucleate
sence of value are equivalent to TQM doctorines by experts. The business
management decision sources such as quality data collection and analysis, and effort
of quality improvement are not concentrating for failure elimination but need to
establish creative activity related with influences of customer satisfaction rate. It is
necessary to establish the standard for performance achievement be numerically
measurable and evaluable.
(3) As for EQA, the rationale is that “Customer satisfation, people satisfaction and
impact on society – results, are achieved through leadership driving policy and
strategy, people management, resoouces, and processes – enablers – ultimately
leading to excellence in business results”. EQA criteria are similar to MBNQA
criteria (guidance ability, employee management, policy and strategy, resource,
process, and customer satisfaction rate) and three EQA criteria (people satisfaction
rate, influence on the society, and result of the management) have been introduced
as new elements. Especially, impact on society criteria focuses such as charity:
involvment in the community’s education, sports, and leisure: the effect of
emploument instability: energy conservation and ecology, are not addressed in other
two Award (MBNQA and Deming Prize). EQA criteria seem to extend to the central
concepts of TQM.
As a result, the comparison table of three award is shown as a Quality
Management Continuum through 1951 → 1987 → 1992, and these three awards are
characterized as: Deming Prize is "Quality Control", MBNQA is " Management Quality",
and EQA is " Enterprise Quality as the Citizens” while the establishment fiscal year
passed in. As for definition of “quality” concerns, Deming Prize is defined as
“Conformance to Specification”.
[Note: " Conformance to Specification" was mistaken, at the time of this paper
publication in 1994, the promotion of TQC was emphasized, and Total Quality was
already defined as broader meaning of under TQC implementation. For instance, NEC
Corporation were defined Quality for Quality Operation in 1972, by President of NEC,
Dr. Koji Kobayashi, as "7 Q“ such as "Q of Management", "Q of Product and Service", "Q
of Environment (from workshop to global environment) ", "Q of Rrelationship with Local
Society (including International Relationship)", "Q of Human Behavior", "Q of
Performance Achievement", and "Q of Corporate Image" was adovocated by president
(Nomura, Kobayashi, Taguchi, Tsukasa, Idemitsu [14]). Further TQC Systematization
Research Committee defined as totalized quality be classified as "Quality of
Management", "Quality of Product and Service", "Quality of Operation and Business",
"Quality of Environment (From workshop to global environment)", "Quality of Human
Being", "Quality of Information", "Quality of Performance", "Quality of Society (From
100
local society to international relationship)", and "Quality of Enterprise Constitution" in
1992. (Imai, Akao, Koura [10])].
(C) Ghobadian & Woo [15] have done detail analysis and comparison on Criteria of
Deming Prize, EQA, MBNQA, and Australian Quality Award (AQA) and conclued as
follows in 1996,
(1) Each Quality Award changed quality behavior.
(2) Each award proposed for Total Quality of organization and framework of the
range in tangible and intangible process that influensed the final results.
(3) The model of each award prepared for table of lucid approach possible style based
on TQM principle.
(4) Each award has specific unique characteristics respectively, and intends all the
quality management promotions.
Final destination of every Quality Award are to organize business management based
on quality responsibility of Top Management, customer focus, higher degree of employee
participation, open and effective communication network, management by fact, and
strategic quality plan.
This paper could be helpful for social influenced quality achievement of Quality
Awards.
(D) Vokurka, Stading & Brazeal [16] conducted comparison survey on five Awards of
MBNQA, EQA, Deming Prize, Canadian Quality Award (CQA), and AQA in 2000.
It is said that the commodity and the service production in these countries was
occupied about 74% of worldwide production in total. Their evaluation points are as
shown in Table 4.1, however about Deming Prizeconcern, any distribution points is not
observed till 2001, but be available from 2002.
This paper analyzed each award by just relatively comparing in the differences
based on MBNQA distribution points, but not shown comparison based on the objective
standrd that this thesis intends.
(E) Tonk [17] proposed for integration of MBNQA and ISO 9001:2000 in 2000.
And, the one to be integrated into MBMQA from the ISO requirements are
(1) 5.2. Customer Requirement
(2) 5.3. Legal Requirement
(3) 5.6.Quality Management System
(4) 5.6.4 Internal Communication
(5) 6.5. Work Environment
101
Table, 4.1 Emphasis point % comparison table of MBNQA, EQA, CQA, AQA,
and Deming Prize
Impact on Improvement:
Society]: 6% 10%
Effects: 10%
Future Plan:
10%
102
These items are recommended as structural subjects.
This paper is important that MBNQA missed criteria item of ISO 9001.
(6) Zonnenshain (Israel, Quality & Excellence Center, and Director) [18] presented his
paper announced "International Quality Chain", and proposed for “Global Quality
Award” establishment in 1996.
This paper was a trigger for a source of idea for an International Quality Award
proposed by Nemoto, Koura [19].
(B) Dr. Hertz (NIST, Baldrige National Quality Program, Director) [20] presented
"Learning from the Malcom Bordeaux ridge national quality award program experience
and aiming at new millennium", Nakajo [21] presented "Deming Prize and Malcom
Baldridge Award", at JUSE 71th Quality Control Symposium "Role of Quality Award in
Management Innovation" of 2000.
It was instructive for Nakajo’s comment on "The contents of criteria item of the both
are similar", "The Deming Prize doesn't have practical criteria on ‘Customer focus
requirment and totalized quality requirement’", and " MBNQA is covered for system
processing program by PDCA cycle implementation, and Deming Prize is organized
whole managed system by individual system components”.
(C) Koura [22] presented ". The research of TQM function in the criteria item of MBA,
EQA, JQA, and Deming Prize (Part 1)" at JSQC the 66th Presentation Meeting for
Research Papers in 2001.
(D) Imai, Akao, and Koura [10] reported on "Toward Systematization of TQC" that had
summarized by JSQC・TQC Systematization Study Committee activity" to “Quality" in
1992. This report was the fundamental thesis for TQM concept definiton and structured
system and elements by grouping and/or consolidating of various experiences by KJ
103
method. This system are structured as shown in the following;
Ⅰ Basic chapter
(A) Quality Management Theory:
(1) Definition of Quality Management (2) Total Quality (3) Viewpoint of
quality (4) Policy Management (5) Daily Management (6)
ManagementForm Theory (7) Human Resources Theory
(B) Quality Assurance Theory:
(1) Quality Theory (2) Assuaance Theory
(C) Management Theory:
(1) Management Basic Theory (2) Organization Theory (3) System
Theory
(D) Technique Theory:
(1) Type of Objective and Problem (2) Objective and Problem Solving
Method (3) Statistical Method (4) Non-Statistical Method
Ⅱ Execution Chapter
(A) Introduction and Promotion of TQC:
(1) Role and Policy of Management person (2) step of TQC Introduction,
Promotion, Development, and Advancement
(B) Organization and Management of TQC:
(1) Human Affairs, Organization, and Operation of Quality
Management (2) Education and training, and Spread of Quality
Management
(C) Quality Assurance and Management:
(1) Investigation stage (2) Project, Research, Development stage (3)
Production stage (4) Sales and Service stage
(D) QC Diagnosis:
(1) Effect Measurement of Quality Management (2) QM diagnosis of
(in-house and outside the company)
(E) The Expansion of TQC:
(1) Manufacturing Industry to Service Industry (2) Group-wide QC and
Quality Assurance by all xxx and (3) QC of foreign countries
advancement enterprise (4) Computer Aided QC and (5) QC of Software
Ⅲ Technology related to Management Engineering
(A) IE (Industrial Engineering)
(B) OR (Operations Research)
(C) Marketing
(D) VE (Value Engineering)
(E) Economy engineering
(F) Productive maintenance (PM, TPM: Total PM)
(G) CIM (Computer Integrated Manufacturing)
104
(H) CCM (Computer Communiation Network)
(I) System Engineering
(J) Creativity Engineering
(K) Behavior Science
(L) OD (Organizational Development)
(M) CI (Corporate Identity)
(N) SIS (Strategic Information System) etc.
This report is organized for the core structure on this research program and became
the one to give birth to the idea of the TQM Function Development.
(E) The foregoing research result is summarized as follows, and relates to originality
and utility of research done by this chapter.
(1) So far various papers for comparison program between MBNQA snd EQA,
MBNQA and Deming Prize or some others and compare of only two kinds were
observed so many, however multi-kinds of National Quality Awards be
synthetically compared and evaluated is only known as Vokurka etc. [16].
(2) It is not found any other papers that TQM Elements located as common standard
(called as anchor) by mutually comparing, synthesis and systematization with
TQM Element in each National Quality Award Criteria.
(3) A concept that Quality itself is interpreted to broader scope of definition is
justified through this research, which the author has been insisting.
(4) A studying under TQC Systematization Research Committee on Imai, Akao, and
Koura [10] constructed for foundation of this research to structure TQM Elements
into the totalizing and systematizing scheme.
105
The EQA was further expanded the concept, and introduced the element such as
"Employee satisfaction rate, Influence on the society (corporate citizen, qualify of life,
environment and resource preservation, and social contribution), and Results of the
management".
And the JQA, in addition of MBNQA requirement, requested "Human Resources
Development, and Learning Environment" and "Management Responsibility".
Deming Prize was revised in 1999 and 2002 as “Stakeholder Relationships
(customer, employee, society, traders, stockholder)”, requirement for TQM Management
System (Daily Management, Policy Management), Business Element Management
System (Quality, Cost, Delivery date, and Safety), Management for TQM concept and
Value of TQM were contained with feature and evaluation points in criteria,
additionally.
Business Management is shifting to TQM concept as for focal points of business
excution by expanding and upgrading of TQM requirement, and indicating for direction
of worldwide Quality Standard. When summarizing the above, it could be concluded
Criteria itself is also progressing and advancing with time-transition.
(2) Title
The JQA and Deming Prize were independently established by private
organizations though MBNQA was instituted by law in the country, and EQA was
founded by EFQM received the support of EU. The Deming Prize was established by
commemoration of Dr. Deming friendship and contribution that was crowned his name
for appreciation. However, it is not so much powerful to inherit his name in local
destrict as of USA, SQA or LAA. However JQA concerns, it is observed some kinds of
Quality Award establishment program by prefecture base. MBNQA is so famous to
crown on his name of Secretary of Department of Commerce for his contribution, but
EQA and JQA are just follow by country or union of countries.
106
Table, 4.2 Comparison Table of Criteria of MBNQA, EQA, JQA, and Deming Prize
107
(C) Objectives
(1) Exept Deming Prize, others are placed the objective for Customer Satisfaction.
The objectives in USA and Europen countries are strongly stated for customer
satisfaction, business excellence and international competitiveness
strengthening. Two Japanese Awards do not emphasize for international
competitiveness so much, but stressed for Process appreciation concept by
Deming Prize and JQA. It is based on the concept “The better process (better
management process), the better result (better business excellent)” or "The good
result (business excellence) arises from a good process (good management
process)", which is more penetrated into Japanese mind. Customer Satisfaction is
strongly insisted on every award except Deming Prize.
(2) The Deming Prize has been paying for more customer satisfaction attainment by
industrial organization contribution.
The Deming Prize has never been nelected for customer satisfaction, but it is
clear adversely and consistently according to execution of whole criteria of Prize
and TQC (TQM) by asking "Customer Satisfaction", Akao [23].
Moreover, historical experiences were revealed the following statement.
(a) DR. Walter A. Shewhart (1931) wrote a sentence in the preface of "Economic
Control of Quality of Manufactured Product".
“Broadly speaking, the object of industry is to set up economic ways and means
of satisfying human wants and in so doing to reduce everything possible to
routines requiring a minimum amount of human effort. (Shewhart, 1931,
preface)”
(b) Also TQC, it has well-known story that “TQC" was introduced into his book by Dr.
A.V.Feigenbaum, and which term was imported and developed by Japanese
concept, and which story are already mentioned in Chapter 2, and describes TQC
in the book "Total Quality Control" as follows as "Definition of TQC".
“Total quality control is an effective system for integrating the
quality-development, quality-maintenance, and quality -improvement efforts of
the various groups in an organization so as to enable production and service at
the most economical levels which allow for full customer satisfaction. (A.V.
Feigenbaum (1961): Total Quality Control-Engineering and Management-, p.12)”
(c) The late Dr. Kaoru Ishikawa who was the quality leader in Japan mentioned
under popular expression as:
“Quality Control consists of developing, designing, producing, marketing, and
servicing products and services with optimum cost-effectiveness and usefulness,
which customers will purchase with satisfaction.”
(d) In addition, "Akao Award" was established to praise for Dr. Yoji Akao’s effort on
creation of QFD (Quality Function Deployment), by QFD Institute, USA in 1996,
and at the time of inaugurationceremony, his contribution to QFD was stated as
108
Dedicated Words on glass shield presented to Dr. Akao as follows;
“We dedicate the award in your honor to recognize those who have learned from
you the value of customer satisfaction.”
When reviewing mentiond 4 kinds of the Awards in the above, each frame are
connected by a line, but some are indicating input, output, and feedback relationship,
however like shown in MBNQA frame work, which are “Strategic Planning” and each
criteria element are connected each other by management cycle (PDCA cycle) processing,
under such schematic planning are not observed in other 3 awards.
109
Organizational Profile:
Environment, Relationship, and Changes
2 5
Strategic Human Resoource
1 Planning (85) Focus (85)
7
Leadership (120)
Business
Results (450)
3 6
Customer and Process
Market Focus (85) Management (85)
4
Mesurement, Analysis, and Knowledge Management (90)
ENABLER RESULTS
Partnership Society
& Resources (9%) Results (6%)
110
Organization profile
(Information Base)
Fig. 4.5 Distribution Points of Fundamental Items in 2002 Deming Prize Criteria
111
(10) Contribution to Achievement of Company Objectives
Aspect of "Customer"
Pursuit of "Quality"
Systematic Activities that manages All Company’s Organization of Effectively & Efficiently
Note 1) *: "Relationship" indicated goodness and badness relate to customer, employee, society,
business connection and stockholder, etc..
Note 2) **: "Management system in TQM" indicates Daily Management and Policy Management, etc.
Note 3) ***: "Business element" indicates quality, cost, delivery date, safety, envilonment and so on.
Note 4) : An original part concerning the content of (1) - (10) with the feature becomes the object of
the evaluation as "Brightness of TQM (Something Plus)", too.
112
In EQA, it is separated between Enablers and Results with each flows, and
“Process” is located in Enabler’s side, which is different from Japanese concept
“Process is equal to Result”. According to EFQM instruction, “Enablers” is "Element
that the manager and the worker can be given the influence directly from own role,
and HOW side", and “Results” is "It is a result from activities and processes
generated continuously from Enablers, and WHAT sides" (EFQM [26]). Moreover,
“Process” is "Manegeme of the value giving activities in the company” as for
processe (EFQM [27]).
113
(b) Item for Human Resource related concerns: Human Resouses Focus (MBNQA),
People Management (EQA), Human Resourse Development and Learning
Environment (JQA), and Human Resourse Development (Deming Prize) are
taken up as an important element.
(c) Item for Information related concerns: Information and analysis (MBNQA),
Process Information System and Efficiency/Effect measurements in second
level item in Process (EQA), Sharing and Use of Information (JQA), and Use of
Information (Deming Prize) are adopted. This is reflected the importance of
information technology development and inter communications.
(d) Item for Process Management concern: Process Management (MBNQA and
JQA), and Process (EQA) are important items that arose from the research of
Japanese TQC. In the Deming Prize, this item is not because it is included in
the concept according to Management System, Quality Assurance System and
Cross-Business Element Management System in TQM.
(e) Item for Social Responsibility concern: “Corporate Responsibility and
Citizenship” as the second item of "Leadership” (MBNQA), "Impact to Society"
(EQA), "Result of Social Responsibility and Eenterprise Ethics" as the second
item of "Result of the Corporate Activities" (JQA), "Relationships between the
Society and Stockholder" as the second item of "Contribution to Achievement of
Company Objectives " (Deming Prize) are emphasized. These are thought to be
appearance of the social responsibility idea of the enterprise. The MNQA
adopted "Corporate Governance", "Ethics Behavior", and "Result of the
Crporate Governance and the Social Responsibility" in 2003.
114
700 points to “process” and 300points to “results”, although JQA is following MBNQA
concept. Deming Prize is not announced for weighting numbers, but judging from the
report of examiners summarization regarding number of secondary evaluation elements,
process oriented could be counted as 87% of process related and results ws 13% in 2001,
and process ws up to 100% in 2002. Based on this information, it is assumed that
Japanese two awards are still apreciating for “Process Focus Concept”.
115
Table 4.4 Comparison of Expensecost related to Examination of MBNQA and Deming
Prizes,
116
(a) Expertise in business, education, or health care management, process, and
results
(b) Knowledge of quality practices and improvement strategies
(c) Length, breadth, and types of experience
(d) Written and verbal communication skills
(e) Leadership and interpersonal skills
(f) Education and training
(g) Achievements and recognition
(7) The Examiners Education is carried out every year.
“Becoming An Examiner (Training)” in “Seeking Examiners for 1998" and
"Seeking Applicants for the Board of Examiners" are specified for
(a) The Criteria and Scoring System
(b) The three stages of the review process including independent review, consensus
review, and site visits
(c) The Code of Ethical Standards
(8) The Criteria books are keeping to issue 124,000 in averages, every year. (The
homepage is established recently.)
(9) ASQ (American Society for Quality) is completely cooperating with Awarding
management and publication etc.
117
(3) The assessment process is that the Qualification Confirmation Format is
submitted to the Japan Quality Award Committee and after received recognition,
the Japan Management Quality Award Application is sent to the Administration.
After the three stages examination of Individual Examination and Conference
Examinations and On-site Examinations, the evaluation report is submitted to
the Committee and sent to the applicant organization after that.
(4) Various functional service and events are organized. In 1997, Recipient
Enterprises Research Meeting, Facilitator Communication Conference and
Examiner Training Course were held.
(5) The Japan Quality Award Reporting (JQA) Conference of the commendation
enterprise of the previous year recognition, for two days course is held on
February every year. The commemoration speech by recipient enterprise in the
morning, panel-discussion session and speeches of representatives of recipients
are presented, further continued on the Speech, and Disscussion Session by each
criteri item and finished after celebration party on the first day. Then the
previous speechs and discussion session are continued on. Moreover, the
networking (under free participation and informal assembly) inserted between
the speech and discussion session. It is generally speaking, similar to the Quest
for Excellenc of the MBNQA event.
(6) The Branch office of Japan Productivity Center for Socio-Economic Development
in USA is stationed and collected USA information and reported to Japanese
headquarter.
(7) MBNQA Investigation Team "USAs Management Quality Circumstances
Investigation Team" have been to USA since 1995. The members participated to
“The USA Management Quality Circumstance Investigation Team” 33 people and
“The Top Missions” were 12 people, and “The International Investigation Team”
were 15 members, that in total 60 delegation team members were dispatched on
February 1998. In additon, 27 members selected from recipient enterprise all
NEC were participated independently.
(8) JQA administrative status is Managing Members: 16 Companies, Regular
Member: 100 Companies and 104 organizations, and Associate Member: 63
companies and 64 organizations. (From JQAC Monthly Report Vol.10, 1997.8.)
118
etc.
(3) The Award Presentation Ceremony is organized at " Forum for Business Senior
Management on Quality Management" during “Quality Month” in November
every year, and is followed by "Best Practice for Quality Management”
presentation by Top Management of each recipient enterprise on next day.
(4) The application to Deming Prize is opened to overseas enterprise.
(5) There is no limitation in the number of application enterprises, and the number of
recipient enterprises if it is more than evaluation criteria level.
(6) It is possible to reevaluate for the level of improvement by TQM Diagnosis after 3
years later of awarding.
(7) The JQM application qualification can be obtain automatically in three years.
(8) It is established “Recognition of TQM Achievement” to recognize level of TQM
implementation status to challenge the Deming Prize in the future.
(9) It is a feature that the layer of the talent of TQM that includes the judge is thick
though thought that the promotion mother's body is small and weak compared
with other awards. However, it is thought the aspect that will be strengthened in
the future because the number of TQM guidance lecturers who can become judges
is thought to be few.
4.4 TQM Element in Quality Award Criteria Item and ISO 9001
4.4.1 Development of Comparative Research Method
In this chapter, it is sudy to develop for common standard (anchor) to be used for
feature comparisons of each award was researched. The basic design can be described in
the following steps. The Criterias are used MBNQA 2002, EQA 2002, JQA 2001, Deming
Prize 2001, and ISO 9000: 2000.
Step 2: Extracting Criteria Elements from each quality award and converting it
into TQM Element
Functional Analysis of MBNQA Criteria item → extracting Criteria element
→ converting into TQM Element
Functional Analysis of EQA Criteria item → extracting Criteria element →
converting into TQM Element
Functional Analysis of JQA Criteria item→ extracting Criteria element →
converting into TQM Element
119
Functional analysis of Deming Prize Criteria item → extracting Criteria
element → converting into TQM Element
Functional analysis of ISO 9000 Requirement item → extracting of Require
element → converting into TQM Element
These results are synthesized to establish ideal TQM Element systematization
for serving the following purposes.
Table 4.5 Structure Model of TQM Quality Award Element Comparison Matrix
Matrix Each Award TQM Element Deployment Table
Table MBNQA EQA JQA Deming Prize ISO 9000
TQM TQM Quality Award Element Deployment Table id constructed a matrix
Element of TQM Element Deployment Table with Each Award TQM Element
Deployment Deployment Table.
Table
(anckor) Relation Degree Numericl Value = Criteria Points of Each Award ×
Strength of relation between Each Award TQM Element and TQM
Element
120
4.4.2 Step of Development of TQM Quality Award Element Comparison Matrix
It is a quite indispensable requirement to compare Quality Awrds each other by
objective and comparable standard or methodology. Accordingly this research are to
propose for preparation of TQM Elements Deployment Table and TQM Quality Award
Element Comparison Matrix which processes will be followd by Fig. 4.6:
Step 1: To extract every Criteria element of each Award and bring it together in the
deployment table.
Step 2: To further sort out TQM Element corresponding to third criteria elements or
lower level by each Quality Award.
Step 3: To prepare TQM Element Deployment Table (individual) by each Quality
Award.
Step 4: To prepare for sets of second level TQM Elements from Deployment Table in
step 3.
Step 5: To systematize second level TQM Elements and prepare for TQM Element
Deployment Table (synthesis) by KJ method grouping.
Step 6: To prepare TQM Quality Award Element Comparison Matrix (individual) by
arranging of TQM Element Deployment Table (synthesis) with each Quality
Award TQM Element Deployment Table.
Step 7: To prepare TQM Quality Award Element Comparison Matrix (synthesis) by
integrating of each TQM Quality Award Element Comparison Matrix
(individual).
Step 8: To restructure for the previous TQM Element Deployment Table (synthesis)
by Cluster Analysis using matrix (synthesis) of step 7 again.
Step 9: To prepare new TQM Quality Award Element Comparison Matrix (individual
and synthesis) by TQM Element Deployment Table (synthesis) that is
restructured again.
Hereafter this new TQM Quality Award Element Comparison Matrix is call as “TQM
Quality Award Element Comparison Matrix”.
It has never been performed such synthesis nor systematization of TQM Element
in each Quality Award under such detailed processing scheme in previous research. The
steps will be explained for more detailed explanation as follows. As for deployment table
with layers structure, it is explained like (the 3rd by parenthese, what kind of data
sammarization). Also as for deployment table concern, if it is preparing only by
individual Award, it is explained as (each Award), for summarized every Award table is
shown by (synthesis), so is the same indication on Matrix table structure too.
121
Step 2 to Step 3 Step 1: Prepare Criteria Element Deployment Table of
(128)
Step 6-1: Prepare TQM Quality Award Elements Comparison Matrix (Individual)
Step 6-2: Put in Strength of Relation in each cell of each Matrix and calculate
Relation Degree.
Each Award TQM Element is summed up to 1st level from 4th level.
180 × (7 + 9 + 8 + 17 + 5 = 46).
Step 8: TQM Element Deployment Table is composed again by the Cluster Analysis using the Matrix of Step 7.
Step 9: TQM Quality Award Element Comparison Matrix (synthesis) is composed again finally.
Fig. 4.6 Steps of Development of TQM Quality Award Element Comparison Matrix (synthesis)
122
Step 1: To extract every Criteria Element of each award and bring it together in the
Deployment Table.
For instance, the Criteria item in MBNQA are structured by every seven categories
(item) in 1st level, which are included 2 or 5 items, 2nd levels are 19 items in total, and
subdivided into 3rd level by a, b, c-----and furtheron 4th level to (1), (2), (3)----.
For this analysis, these criteria elements expressed by sentence or clause are
disassembled by “One statement has one meaning” principle which is one of QFD method,
“Business Function Deployment”, as 1st, 2nd, 3rd--- as shown in Ttable 4.6. It would be
recognized as the 4th level of statement is composed of (Noum + verb) structure to explain
for their function. Under same token every criteria item are precisely analyzed by
extracting and deploying and finally summarized as shown Table 4.7. Its indication are
recognized some variation in deploying level and items number between Awards, which
are caused by descriptions of criteria in each Award.
MBNQA 7 19 29 494
EQA 9 32 180
JQA 8 20 65 142 706
Deming
It isPrize 17each prize
a table, 4.6 31or the extracted
56 126 of examination
numbers 407 6th 29(partially)
elements.
ISO 9001 5 23 81 264
Step 2: To further sort out TQM Element corresponding to third Criteria elements or
lower level by each Quality Award.
Next, TQM Element located at 3rd and 4th criteria elements are converted into the
TQM Element, that are counter part of Quality Award criteria elements (At this stage,
it is not structured as hierarchy form yet). And TQM Element Table is prepared
corresponding to Quality Award Criteria Element. In this case, it is to investigate for
any requirement for additional TQM Element insertion to conform with recent TQM
model view-points by Criteria Element referring to “Guidline of the Deming Prize”
123
(Deming Prize Committee [7]), “Management of Total ‘Quality’ the TQM to 21 century”
(TQM committee [9]), and “Toward Systematization of TQC” (Imai, Akao, Koura [10])
and finalized to suppliment some amoount of elements. For instance, "Policy
Management System is established" are supplemented besides of "System of leadership
is established" as TQM Element such as shown in Tables 4.8, corresponding to Table 4.6,
which are specified in 4th level criteria of MBNQA Criteria elements "1.1.1.5 System of
leaderships is established".
Table 4.8 MBNQA Criteria Element vs. TQM Element Table (part)
4th Criteria Eelements T Q M Element
1.1.1.1 Values of organizations is focussed. Values of organization is focussed.
1.1.1.2 Business results of organizations is focussed. Business Results of organization is focussed.
1.1.1.3 Value for stake-holders is created. Value for the stake-holder is created.
1.1.1.4 Balance between indicators is focussed. Balance of policy is focussed.
1.1.1.5 Leadership System is made. Leadership System is made.
Policy Management system is established.
1.1.1.6 Leadership indicator is settled on. Policy is settled on.
1.1.1.7 Leadership indicator is transmitted. Policy is transmitted.
Policy is known thoroughly
1.1.1.8 Leadership indicator is deployed. Policy is deployed.
Table 4.9 is explained how status of TQM Elements are changed from Quality
Award criteria element number. At this step, it is some amount of adjustment be
conducted to balance withless variation between 3rd and 4th levels number of items. At
this step, it is rather to identify and extract TQM Element as many as possible by using
criteria item of each Quality Award as a source of conception than.than to confirm what
kinds of elements while studying criteria elements for each Quality Award.
Table 4.9 Number of TQM Elements extracted from each Award (for 3rd or 4th)
Name Criteria Element TQM Element
Thus “One statement has one meaning” principle are exercising for interpreting
every criteria under TQM concept and then transforming to TQM Element, Quality
Award TQM Element Deployment Table with minute TQM Elements is prepared
124
through adding words and phrases which extract a potential TQM element in each
Quality Award as much as possible and at the same time, are preventing from
“interpretation error” by adopting “One statement has one meaning” principle.
Step 3: To prepare for TQM Element Deployment Table (individual) by each Quality
Award.
TQM Element of each Quality Award is classifying, hierarchized by KJ Meathod
Grouping, deployment table is prepared, and this is called as TQM Elements
Deployment Table of each award. Then, 1st and 2nd levels TQM Elements were prepared
referring to the 1st and 2nd levels Criteria Element of each award, and these and
grouped labels (the 2nd or the 3rd) were adjusted as Table 4.10, and TQM Elements
Deployment Table of each award with the number of elements such as Tables 4.11 was
prepared.
Table 4.11 Number of Elements in TQM Elements Deployment Table of each Award
MBNQA 7 18 29 91 519
EQA 9 32 97 380
JQA 8 23 65 142 706
Deming Prize 17 32 56 101 457
ISO 9001 5 23 81 264
For instance, though the 1st, the 2nd and 3rd levels element with the MBNQA is
interpreted Criteria element as to TQM element, 4th element are increased by grouping
of them into 91 elements, and 5th elements become 519 by adding up by TQM elements
to 4th level 509 elements before grouping (Note: though 2nd level numbers 18 of elements
125
of MBNQA by Table 4.8 decrease elements number 19 of secondary Criteria item of
Table 4.7 on having deleted the Criteria item concerning the organization profile).
The TQM Element Deployment Table according to Quality Award by subdivided and
hierarchized Quality Award Element is no example in previous research, and is used for
comparison research after this.
Step 4: To preparate for sets of 2nd level TQM Elements from Deployment Table in step 3
The 1st level and 2nd level small TQM Element Deployment of each quality award
is taken out from each Quality Award TQM Element Deployment Table preparated at
previous step, and 2nd layer elements are made to gather. 128 elements were collected at
this step.
Step 5: To systematize 2nd level TQM Elements and prepare for TQM Element
Deployment Table (synthesis) by KJ Meathod Grouping.
The element of 128 collected at step 4 by KJ Meathod Grouping as Fig. 4.7 is
classified more, it deployed by 3rd level, and TQM Element Deployment Table (synthesis
and the 3rd) is prepared further. Then, the item of "Relationship Management"
including the element "The idea of Total ‘Quality’ was understood" and "The
relationship to the stake-holder is focused" was added from "Deming Prize: TQM
definition, explanation, and viewpoints of the examination" (Deming Prize Committee
[7]), and the element "The law and regulations were esteemed" was added from ISO
9001 [8]. And then, the contents of classified type TQC system (Imai, Akao, Koura [10])
and “TQM Model” of Yoshizawa [29] are added, moreover, the content of the secondary
element under preparing was subdivided in addition, and finally, it become 1st element:
9, 2nd element: 32 and 3rd: 180. The secondary element of the Deployment Table is
shown in the Table 4.12. This Deployment Table is restructured at step 8, but until step
7, thisis called as TQM Element Deplyment Table (synthesis).
126
1 Management Total "Quality" shows
2 Leadership is established.
2.1 Leadership is
2.2 The relationship to the
demonstrated.
stake-holder is valued.
role models of the corporate culture M.1.2 Public responsibility and citizens
accomplished.
J.1.1 Ssystem of demonstrating
leadership is established.
M.1.1 Leadership of
E.3.1 Relationship of customer, partner,
organization is established.
and social representative is valued.
valued.
Note: M (MBNQA), E (EQA), J (JQA), D (Deming Prize), and the figure are TQM element No. of the
Criteria element. The TQM element is written in Post-it card, the group is enlarged further by grouping the
card which the meaning is near, and the label that represents the entire content is made.
Fig. 4.7 KJ Method Grouping of Second TQM Element Item of each Award (part)
127
Table 4.12 TQM Elements Deployment Table (synthesis) in Steps 5
1st 2nd
1 Understanding and zeal to Total "Quality" is 1.1 Idea of Total "Quality" is understood.
shown. 1.2 Understanding and zeal to TQM is shown
2.1 Leadership is demonstrated.
2.2Relationship to the stake-holder is focussed.
2 Leadership is established. 2.3 Organization power is strengthened.
2.4 In-house environmental making is done.
2.5 Law and regulations are esteemed.
3.1 Vision mission, values, policy, and the strategy are established.
3 Policy and plan are planned and deployed.
3.2 Vision, mission, values, policy, and strategy are deployed
4.1 Customer and market are understood.
4.2 Knowledge of customer and market is used.
4 Satisfaction of customer and market are
4.3 Response to customer and market is improved.
aimed at.
4.4 Customer and market satisfaction are clarified.
4.5 Customer-relationship is maintained and improved.
5.1 Human resoources is developed.
5 Management base is enhanced.
5.2 Information is used.
6.1 Management system is established.
6.2 Quality assurance system is established.
6 Management system process is enhanced. 6.3 Cross-Business-Element Management is established.
6.4 Group-wide Quality Management is established.
6.5 Fiscal resources and asset management are established.
7 Basic idea and technique of TQM are 7.1 Iidea and values of TQM are understood.
understood and used. 7.2 Scientific technique is understood and used.
8.1 Customer-relationship is improved.
8.2 People relationship is improved.
8.3 Social relationship is improved.
8 Achievement level of purpose and target of
8.4 Business connections relationship is improved.
the organization is measured and evaluated.
8.5 Stockholder relationship is improved.
8.6 Mission of organization is achieved.
8.7 Profit is continuously secured.
9 Concept, methodology, and technology of 9.1 Feature of TQM activities of company is put out.
TQM are investigated and developed. 9.2 Ahead of the time TQM is investigated and developed.
Next step is, To prepare for Matrix, the vertical (left side) cplumn are pccupoed by
TQM Element Deployment Table (synthesis and 3rd level) and Horizontal (top side)
column are dispointed by Each Award TQM Element Deployment Table (individual and
4th level) as shown Table 4.14, and each cell are used to identify for the both elements
rlationship. If a cell is not recognized any relationship, keep on blank, and the time of
caluculation, they are counted as “Zero”, then depending on their strength of
relationship, marked as 1 (Weak), 2 (Norml), and 3 (Strong). These strength of
relationship are called “Relation Degree”.
Then, the above correspondence matrix are prepared by 4th level elements for each
ward that these elements are nessary to consolidate up to 3rd level elements, and 3rd
level correspondence Matrix table between TQM Element Deployment Table (synthesis
128
and 3rd) and each Quality Award TQM Element Deployment Table (individual and 3rd) is
prepared, and it is called TQM Quality Award Element Comparison Matrix (individual).
This Mtrix table is structured by Vertical (Left side, name of line) columnare occupied
by TQM Element Deployment Table (synthesis) as common anckor for each Award and
Holizontal (Top side, name of row) occupied by Quality Award TQM Element
Deployment Table (individual).
The strength of Relation Degree is inserted into each cells and the summarizing
caluculation for the relationsip index is explained in next formula.
Relationsip Index between the 3rd elements of TQM Elements Deployment Table
(synthesis) and the 3rd elemenst of each Award TQM Elements Deployment Table
(individual)
= ∑ {(Relation Degree with the 3rd level elements of TQM Elements Deployment
Table (synthesis) and the 4th level elements of each Award TQM Elements Deployment
Tables (individual))
✕ (Evaluation Distribution points of the 4th level elements of each Award TQM
Elements Deployment Tables (individual)) }
Note: ∑ (sigma) means, it is to calculate for whole element in cell of 4th level
element included in 3rd level element of each each Award TQM Elements Deployment
Table (individual).
129
that this matrix is organized by 180 × 46 elements structures. Moreover, the
Relatinship Index has totaled to 1st level element from distribution evaluation point of
3rd level of each Quality Award TQM Element
Step 8: To restructure for the previous TQM Elements Deployment Table (synthesis) by
Cluster Analysis using matrix of step 7 again.
A structure of TQM Element Deployment Table (synthesis) as shown in Table 4.12
is examined by Cluster Analysis while using of JUSE – STA soft of K-means method by
treating with data of TQM Quality Award Element Comparason Matrix (synthesis)
prepared in step 7 as multivaluate data is used.
The purpose of the analysis is in improving objectivity of the TQM Element
Deployment Table, grouping by using Cluster Analysis which is one of Numerical
Classification method and in addition of the study to the result, because the fault of
analysis person subjectivity is entered as smells by all means in the study of step 7.
The cluster analysis does carrying out five time consecutive trial tests while Cluster
Numbers is selected from 8 to 12, and the appropriate one is thought the 11 clusters
finally. During the test, 10 crusters are rather large grouping range that it is afraid
to contain other heterogeneous elements, on the other hand, if 12 clusters, it is shown
too small for clustering that 11 was selected.
Next, it is to identify for 11 clusters to be included, and 2nd level elements is renewed
by grouping of 3rd levlel elements, thus TQM Elements are restructured. While
processing through, the first grouping element by KJ method was (1st levelwas9, 2nd
level was 32 and 3rd level was 180) is now 1st level is 11, 2nd level is 48 though the
number of 3rd level elements did not change, which are shown by Table 4.13 (which is
shown till 2nd level only) comparing with Table 4.12, the followings are improved.
(1) "7. Information system is established" and "8. Human Resources is developed" were
extracted and confirmed their critiality.
(2) "10 Social relationship is established" and "11 TQM is promoted" related elements
that are dispersed in various first element was extracted to the element as each one
element.
(3) The content expression becomes almost similar to the technical term used in each
Quality Award terminology that it is systematically, internationally and
comprehensibly.
(4) It was possible to whole elemen are classified by two parts, one is "(1-10) Elements
that related to the content of the TQM implementation", and the other is " (11)
Element that related to TQM promotion". This shows the possibility that the
promotion is included in the model in TQM. Moreover, it can be considered that it
illustrated it by modulating the operations that should be advanced in the TQM
Execution Division (line usually) and the TQM Promotion Division in the enterprise
like parts when the second elements or less are seen.
130
Table 4.13 New TQM Elements Deployment Tables (synthesis)
1rst 2nd
1 Top's role and the mission are 1.1 Top's role and mission are recognized.
established. 1.2 Top's role and mission are carried out.
2.1 Business environment is forecast.
2.2 Management plan system is constructed.
2.3 Policy and strategy are established.
2 Management plan system is established.
2.4 Policy and strategy are declared.
2.5 Policy and the strategy are deployed.
2.6 Long-term profit is ensured.
3.1 Response method for customer is established.
3.2 Quality of response for customer is understood and evaluated.
3 Response system for customer is
3.3 Customer-relationship is constructed.
established.
3.4 Customer-relationship system is managed.
3.5 Customer-relationship is improved.
4.1 Feature, value, and importance of product and service are confirmed.
4.2 Customer and market are surveyed.
4 Product and service offer process are
4.3 Customer and sales information are used.
established.
4.4 Customer response system is established.
4.5 Customer satisfaction degree is improved.
5.1 Quality of business and environment is understood.
5.2 Business connections is focussed.
5 Business management system is 5.3 Business management is carried out.
established. 5.4 Fiscal resources and asset management are established.
5.5 Group-wide Quality Management process is established.
5.6 Corresponds to local society is done appropriately.
6.1 Quality, environmental regulations, and standard are esteemed.
6 Quality and environmental system are 6.2 Quality Assurance is carried out.
established. 6.3 Quantity, delivery date, and cost management are carried out.
6.4 Managing and improving of process are carried out.
7.1 Information system is constructed.
7 Information system is established.
7.2 Information system is used.
8.1 Basis of human resources development is established.
8 Human resources is developed. 8.2 Education and training environment are established.
8.3 Results of human resources development are improved.
9.1 Quality of management is focussed.
9.2 Management Review is carried out.
9 Mission and business results of
9.3 Mission of organization is achieved.
organization are improved.
9.4 Stockholder relationship is improved.
9.5 Business results are improved.
10.1 Quality of social relationship is understood.
10.2 Society related regulations is esteemed.
10 Social relationship is established.
10.3 Social responsibility is fulfiled.
10.4 Corporate images are improved.
11.1 Understanding and leadership of TQM are had.
11.2 Feature in TQM of own company is had.
11.3 TQM vision, policy, and strategy are settled on.
11 TQM is promoted.
11.4 TQM is promoted and operated.
11.5 Cross-Business Element Management is carried out.
11.6 Group-wide Quality Management is carried out.
131
Table 4.13 is named "TQM Elements Deployment Table (“Synthesis" or might be
omitted)" at the following.
Step 9: To prepare new TQM Quality Award Element Comparison Matrix (individual
and synthesis) by using TQM Elements Deployment Table (synthesis) that is
restrucerd again. (Example illustration: Table 4.14)
132
The result of TQM Elements Deployment Table (synthesis) restructered again by
using the data of TQM Quality Award Element Comparison Matrix was inserted into
TQM Quality Award Element Comparison Matrix made in step 6 and step 7, and the
array of the TQM element was rearranged. A part of the above-mentioned result is
shown in the Table 4.13. This TQM Quality Award Eelement Comparison Matrix is a
table of vertical table side of left 180 ✕ holizontal tableside on top 46. Various analyses
are possible in the future by the application of the multivariate analysis technique by
using this. The TQM Quality Award Element Comparison Matrix when the first TQM
Elements Deployment Table is consolidated in the item is shown as an appendix. The
first element of each Award can be read though the matrix is transposed for the
convenience of the display.
According to the above-mentioned step, each table in each step is made as follows.
(1) Criteria Element Deployment Table according to each Quality Award
(2) TQM Elements Deployment Table according to each Quality Award
(3) TQM Elements Deployment Table (synthesis)
(4) TQM Quality Award Element Comparison Matrix (individual)
(5) TQM Quality Award Element Comparison Matrix (synthesis)
The common standard (It was said the anchor) and quantitative data for the
comparison was prepared for scientific analysis while the past analysis research were
just mutual qualitative comparisons based on arrangement of mere criteria item and
evaluation point to different category. These steps can be applied more widely as a
methodology of the comparison research.
4.4.3 Comparison of Each Award by TQM Quality Award Element Comparison Matrix
(synthesis)
(A) Comparison by consolidating table of TQM Quality Award Element Comparison
Matrix (synthesis)
As shown in Table 4.1, small table that TQM Quality Award Element Comparison
Matrix summarizated among 1st level of TQM Element of vertical column of left line and
holizontal column of top row summarized each award unit is shown. The calculation of
consolidating only summarized up the Relationship Index of each Award in cell that
corresponded.
Which TQM Element understands whether is valued according to Quality Award if
Table 4.15 is looked vertically (line) according to the Award. Moreover, which Quality
Award understands whether is valued relatively if it is looled holizontally (row)
according to TQM Elemen vertically (line). (This is explained in etail later at (C)).
That is, even if Relation Index of each Award are holizontally compared and the
133
ranking is done, rough of the feature and the difference of each Award can be judged.
For instance, ISO 9001 is next mark only "6 Qualities and environmental systems are
established" (14870), and lot of TQM elements are lower than the others. This is
evidence that ISO 9001 does not intend to cover the entire TQM as to be International
Standard on Quality System Standard.
Table 4.15 TQM Quality Award Element Comparison Matrix (Relation Degree consolidating Table)
Deming
MBNQA EQA JQA ISO 9001
Quality Award Prize
1 Top's role and mission are established. 1833 1859 3909 5142 3517
2 Management plan system is established. 6858 6041 11625 7690 5837
3 Response system for customer is established. 9993 15976 14518 5262 8922
4 Product and service offer process are established. 7307 13957 16561 6660 10723
5 Business management system is established. 6437 3207 5651 4650 2628
6 Quality and environmental system are established. 5561 8010 14873 5449 14870
7 Information system is established. 1705 2346 3466 2095 1123
8 Human resource is developed. 10306 11360 9348 11699 2517
9 Mission and business result of organization are improved. 12660 6695 8002 5031 2073
10 Social relationship is established. 8227 7408 10751 4020 3542
11 TQM is promoted. 1543 6256 1045 8464 777
(B) Comparison between TQM Elements of each Award from TQM Elements
Deployment Table (synthesis)
It became the first: 11 elements and the 2nd: 48 elements and the 3rd: 180
elements though each item of TQM Element Deployment Table (synthesis) is composed
by word being added TQM expression to common word of each Award at unification and
systematization as Step 4.4.2. When the content was seen, Element 1 to Element 10
that corresponded to "TQM execution element" that was the content of the TQM
execution and Element 11 that corresponded to "TQM promotion element" that was the
content of the TQM promotion was plainly divided. As a result, a common term of each
Award was used in the term, and it became an array of international TQM Element to
which the composition was similar in the order of the criteria item of each Award.
Moreover, "TQM promotion element" is low relation degree excluding EQA other than
the Deming Prize in view of the evaluation point though it is natural that "TQM
execution element" exists together in each Award. The TQM Quality Award Element
Comparison Matrix composed of here is expected that further comparisons of each
quality award become possible by using it as multivariate data to say naturally mutual
comparison by the numerical value of the relation degree.
(C) Clarification of feature and character of each Award by TQM Element mutual
comparison
(1) Features of Malcolm Baldrige National Quality Award.
When comparing each Award by holizontal observation of Relationship Index from
134
the data of summerlized in Table 4.15, "5 Business management system is established"
(6437), and "9 Mission and Result of organization are improved" (12660) are ranked at
the top position, and "8 Human Resources development" (10306) are 3rd position among
each Award (numer is taken in the cell of Table 4.15). Then detail analysis by the
Appendix Table (P 143) are further corresponding justified that the above mentiond two
TQM Elements 5 and 9 is supported by high score of 1st level TQM Element of MBNQA,
that is, "7 Business Result is measured and evaluated" of MBNQA (“5” to 3283 and “9”
to 9218) and "5 Human Resource is ocused" of MBNQA (“8” to 3319).
It is noteworthy to take up “Successor development program" in details of element
"5.1 Work System" of the subordinate position of the "5 Human Resource is focused".
Moreover, the result oriented idea of MBNQA clearly appears as it is giving 450 points
in "7 Business Resultis measured and evaluated" in 1000 points and “ 9 Mission result
of organization are improved" of TQM Element is proven to be top in the evaluation
point between each Award. On the other hand, "1 Leadership" of the MBNQA
corresponds to it though the low rank "1 Ttop’s role and mission is established " of TQM
Element (1833).
In the MBNQA, there are not vision, mission and value though there are
benchmark, cycle time, and stakeholder (customer, employee, stockholder, local society
or speciality person group) and a strategic target, etc. in the explained terms
135
There is neither "3 Customers and Market Focus" nor "4 Information and analysis"
that exists in the MBNQA, but “4 Measurement, Analysis, and Knowledge
Management” in MBNQA 2003 correspond to “4e Information and Kowledge are
managed” in EQA 1999, and “4.a External partnership are managed”, "4.b Finances are
managed", and "4.c Buildings, equipment and materials are managed" of "4
Partnerships and resources” in EQA are not emphasized in other Award. The first item
of the result system includes four items of "6 CustomerResults", "7 People Results", "8
Society Results", and "9 Key Performance Results", and moreover, the EQA gives 5.0
points of 10.0 point as a whole-inside, and is the highest in each Award though the
evaluation of the result is 1 item of "7 Business Results" (450 points) in the MBNQA. In
addition, it is given including the illustration that "a Perception Measures" and "b
Performance Indicators" are detailed in those each items. These indices are concrete,
and there are as many as 136 elements (about 36%) numeric indices in 327 elements of
the fourth level.
136
Result of Activities" of the JQA corresponding to "7 Business Results" (450 points) in
MBNQA.
On the other hand, a new one for a Japanese enterprise like as Enterprise Ethics,
Management Vision, Corporate Governance, Shared Service, Crossing Organizational
Team, Value Proposition, Fair Process, Bbenchmarking, Cash Flow, BPR, EVA, and
ROA and ROE, etc. is taken up in "Glossarial explanation" in 2001 Criteria.
It was EQA and JQA that it was especially comparable on the term for ethics, mission,
vision, value, and culture, etc. among these.
137
Comparing the both, it is shown that the idea of the vision, the mission, and the value
is not clear as a current state of Japan, though it is interpreted that the vision of the
JQA has the meaning that contains the ethics and the mission of the EQA and it has s a
point not clear. Moreover, the Value Proposition is interpreted in Japan “To offer
Customer Value desired” and it is not used in the meaning like the EQA. However, it
can be said that these points are evidences for the JQA to start approaching the EQA
while making the MBNQA a model.
138
Deming Prize correspond to "6.1 Key process", "6.2 New business process and support
process", and "6.3 Cooperation with business partner" of "6 Value creation processes" of
the JQA.
In the Deming Prize, the TQM diagnosis of the Deming Prize Committee becomes a
Key issue though the self-assessment is encouraged and evaluation item is available in
the other three Awards. Moreover, there is especially no glossarial explanation, and the
definition of TQM is given as a text and an explanation.
Research subject 1: Where is located the difference between each Quality Award?
The difference between each Quality Award were identified, by qualitative
distribution point on criteria, the comparison of operational management, and
extraction of difference between the Awards by Relation Index of the TQM Quality
Award Element Comparison Matrix.
Research subject 2: Is it possible to consolitate the TQM Element of each Quality Award
into synthesis and systematization?
The TQM elements of each Award were extracted and the TQM Elements
Deployment Table (synthesis) is developed for synthesize and systematize by QFD
and KJ grouping method to be acceptable internationally for idea and concept, and
the road of future utilization way of this research method be wide open.
That means;
(1) The TQM Elements Deployment Table (synthesis) is prepared as common standard
which every TQM element in Quality Award and Quality Management System with
worldwide influence power was included and then the TQM Quality Award Element
Comparison Matrix (synthesis) was structured based on it.
As a result, no more conventional mere mutual comparison by the evaluation
point distribution of each Quality Award, but highly objective comparison based on
the quantified data became possible. In addition, mutual comparison by the
multivariate analysis taken up in Chapter 5 was enabled.
However, in the process that the extraction, hierarchizing, and the weight putting
the TQM Element, it was found that there existed some rooms where analytical
person's subjectivity is inserted. To prevent from this situation, it is established for,
extraction of TQM Element are spread to cover materials of vast area by collecting as
possible as can, and as for hierarchization to determine for assigning at which level
concerns, it was studying for Numerical Classification method by utilization of
Cluster Analysis. As for weight assignment concern, it is still needed to consider more,
139
but the coparison possibility can be improved through these elements (such as TQM
Element Deplyment Tabele in this research) be suitably standardized, when TQM
Quality Award Element Comparason Matrix is used as Multivariate Analysis data.
(2) The step used in this chapter is not only coparing the Quality Award treated here but
also it could be feasible enough for general methodology on the comparisons between
the various quality management and self-evaluation system, etc.
It is the feature for this method to deploy TQM Element in various Quality
Awards while applying a consept of the business function deployment by QFD. The
problem that executes the influence and the Sensitivity Analysis by the difference of
the method has been left because there are other methods of weight putting like the
Conversion Method in QFD (Akao [30]), too.
(3) The TQM Elements Deployment Table (synthesis) can be prepared and 1st and 2nd
levels element are structured systematically by cluster analysis.
That is, classifying it into ten elements concerning the content of the TQM
Implementations and one element concerning the TQM Promotion became clear.
Moreover, ten elements concerning the content of the TQM Implementations are easy
to display under the order of arranging the PDCA structure, and be easy to be
understood with international and terminology definition.
(4) The difference and the feature of the criteria item of each quality award are
summarized collectively, the quality concept expanded while becoming MBNQA, EQA
and JQA from the Deming Prize, and the development of the concept as not only the
Customert Relationship but also Environmental Relationship, Social Relationship,
are able to be confirmed.
The problem in the future is wished whether to be the meaning as the management
system though it is observed the high correlation of JQA and ISO 9001 in Table 4.14
by view of the TQM Elements Deployment Table item.
(5) Following respects are important though qualitative each other coparison between
the feature and the character of each Quality Award were executed.
(a) It is necessary to identify for concept and systematic relations between creed,
ethics, mission, vision, values, and culture.
What has clarified it by this research is that the EQA specified "1a Leaders
develop the mission, vision and values and are role models of a culture of
Excellence" to the first essential of the leadership of top management. And, it is
shown that the ethics and the value are foundation that develops the corporate
culture, saying that "1.a 2 developming and role modeling ethics and values
which support the creation of the organization’s culture". It is conclued from
such an idea that values mean the value in the enterprise organization such as
employees as internal value or inhouse value if values of the customer and the
stockholder, etc. are assumed to be external value. It can be said that this will
suggest the change concerning the purpose and the principle of the
140
management in the idea.
(b) TQM in the future should emphasize the use of Cross-Business-Element
Management and GWQM (Group-wide Quality Management) (Ito [31])
according to without in the other three Award from the viewpoint of the TQM
promotion and execution.
There are Cross-Functional Management (Kurogane [32]), Strategic
Business Unit: SBU (Mochimoto [33]) and Project Management (Ishihara
[34]) according to as Cross-Organizational Mangement, and these
management and business system correspond to the Cross-Functional Team
etc., and the system corresponding to the supplier and partner relationship is
two as the above-mentioned in TQM
(c) The research is necessary for the idea of relationship emphasized in the Deming
Prize because there is neither concept of Relationship Management nor proof of
the theory in each Quality Awsrd though part exists by the other three Awards.
(d) It is thought to extract, to compose, to reference and to use a systematic model of
the management index and the control index from each Quality Award, because it
is thought useful for the enterprise to refer to the management index and the
control index in the management system at which the excellent Quality Award in
the world aims.
Not only the management index but also the setting of the control item of each
position is important, and Dr. Juran [35] described "If a control subject is
worthless, the whole control procedure built around that control subject is
likewise worthless" in "Choosing the Control Subject".
(e) As for the Coporate Social Responsibility (CSR), how as the content to take it up
is different though the score (weight) in each Award is practically the same. The
EQA is the most detailed and is concrete as the contribution to regional society.
Reference
1.Kozo Koura, Tadashi Yoshizawa: Research of TQM Element in National Quality
Award in the world and ISO 9001, Qualities, Jornal of the Japanese Society for
Quality Control, Vol.33, No.2, pp.73-85, April 2003
2. NIST (National Institute of Standards and Technology): Baldrige National Quality
Program 2001: Criteria for Performance Excellence, NIST Gaithersburg, MD
U.S.A. 2001
3. NIST (National Institute for Standards and Technology): Baldrige National Quality
Program 1999 Criteria for Performance Excellence. Gaithersburg, MD, U.S.A.1998.
4. EFQM (European Foundation for Quality Management): The European Quality
Award 1998 Information Brochure. Brussels, Belgium, 1997.
141
5. EFQM: The EFQM Excellence Model 1999, EFQM Brussels Representative Office,
Belgium, 1999.
6. Japan Quality Award committee: Japan Quality Award Criteria - Excellence of
Achievement based on Customer Oriented - Version in 2001, Japan Quality Award
committee administration, Japan Productivity Center for Socio-Economic
Development, July, 2001
7. Deming Prize committee: The Deming Prize Application Guide, 2002, Union of
Japanese Science and Engineers, 2002
8. Japanese Standards Association Edited: Translation with the original ISO 9001,
International Standard of Quality Management, Japanese Standards Association,
January 2001
9. TQM Committee edited and written: TQM Integrated "Quality" management of 21
century, JUSE Publishing Co., June 1998
10. Kenitirou Imai, Yoji Akao, Kozo Koura: Forward the TQC Systematization,
Japanese Society for Quality Control, Reports of TQC Systematization Research
Committee, Quality, Journal of the Japanese Society for Quality Control, Vol.24,
No.1, pp.110-116, July 1992.
11. David Bush and Kelvin Dooley:“The Deming Prize and Baldrige Award: How They
Compare", Quality Progress, Vol.22, No.1, pp.28?30, January 1989
12. Curt W. Reimann: "Baldrige Award, Deming Prize: A Clear Distinction". Quality
Progress, Vol.22, No.4, pp.10-11, April 1989
13. Behnam Nakhai and Joao S. Neves: “Deming, Baldrige, European Quality Awards,
The quality management continuum", Quality Progress, Vol.27, No.4, pp.33-37,
April 1994
14. Hisashi Nomura, Koji Kobayashi, Renzo Taguchi, Tadashi Tscasa, Sazo Idemitsu:
Mind of Management, the fifth collection, pp.85-98, Nikkan Kogyo Shimbun Co.,
August 1973
15. Abby Ghobadian and Hong Seng Woo: “Characteristics, benefits and shortcomings of
four major quality awards", International Journal of Quality & Reliability
Management, Vol.13, No.2, pp.10-44, 1994
16. Robert J. Vokurka, Gary L. Stading and Jason Brazeal: “A Comparative Analysis of
National and Regional Quality Awards", Quality Progress, pp.41-49, August 2000
17. Hampton Scott Tonk: “Integrating ISO 9001:2000 And the Baldrige Criteria",
Quality Progress,Vol.33, No.8, pp.51 ? 55, August 2000
18. Avidor Zonnenshain, Ph.D.: International Quality Chain, ASQC'50th Annual
Quality Congress, Proceedings, pp.133-137, May 13-15, 1996
19. Masao Nemoto, Kozo Koura: Quality Award in each country - GLQM Case Study
Committee, Part 4-, The 26th annual conference, Japanese Society for Quality
Control, Research Paper Ssummary collection, pp.51-54, October, 1996
20. Harry Hertz: The Malcolm Baldrige National Quality Award Program - Learning
142
from experience and aiming a new millennium, "Role of the quality award in the
Management Innovation" of the Summary Collection of the 71th Quality Control
Symposium, pp.15-35, Union of Japanese Science and Engineers, November 2000,.
21. Takeshi Nakajo: Deming Prize and Malcom Baldrige Award, "Role of quality award
in management innovation" of Summary Collection of the 71th Quality Control
Symposium, pp.37-52, Union of Japanese Science and Engineers, November 2000
22. Kozo Koura: Reseach of TQM function in Malcolm Baldrige Award, European
Quality Award, Japan Quality Award, and Deming Prize criteriasitem (Part 1), the
66th Research Announcement Meeting, Research papers summary collection,
pp.45-48, May 2001
23. Yoji Akao: "Thought the TQM Declaration"(2), Thought TQM Declaration, Quality
Control, Vol.49, No.2, pp.6-9, February 1998.
24. Theodore Levitt, Editorial Department Translation: Marketing Myopia, Diamond
Harvrd Business Review, Diamond Company, pp.52-69, November 2001
25. Philip Cotorar, Gary Armstrong written, Mitsuo Wada , Rinichi Aoi translation: New
Publication, Marketing Principle - Basis and Practice of Strategic Behavior -
Diamond Company, pp.19-20, March 1995
26. European Quality Award for Theses on Total Quality Management 1996/1997 call
for Application, European Foundation for Quality Maanagement.
27. European Foundation for Quality Excellence: The EFQM Excellence Model, 2002
28. NIST: Malcolm Baldrige National Quality Award, 1996 Handbook for Board of
Examiners, United State Department of Commerce, Technology Administration,
National Institute of Standards and Technology. p.3-1, 3-0 The Malcolm Baldrige
National Quality Award, Background.
29. Tadashi Yoshizawa: "New leap of TQM", Quality Month Text, No.260, Quality Month
Committee, October 1996
30. Yoji Akao: Introduction to Quality Deployment, pp.43-44,122, JUSE Publishing Co.,
November 1990
31. Kiyoshi Ito: Attractive Enterprise-making by TQM, pp.157-244, JUSE Publishing
Co., June 1996
32. Kenji Kurogane, Editer in Chief: Cross-Functional Management – Principle and
Practical Application - , Asian Productivity Organization, 1993
33. Toshiyuki Mochimoto: Management of Modern Enterprise, Central Economy
Company, pp.58-61, December 1993 (It greatly revises and the second edition is
published in May 2000)
34. Katsukichi Ishihara: Practise of Company-wide Quality Control Promotion,
pp.171-206, 928, JUSE Publishing Co., November 1984
35. J. M Juran: Managerial Breakthrough, pp.197, McGraw-Hill Book Company Inc.,
1964
143
Attached Table: TQM Quality Award Element Comparison Matrix
(transportation version)
144
Chapter 5 Comparison between Criterias of each Quality Award
This chapter is to identify TQM Quality Award Element Comparison Matrix
(synthesis) data developed in Chapter 4, and Criterias of each Quality Award are
quantitatively compared by using the Multivariate Analysis, and the feature is clarified.
The content of this chapter is based on Koura and Yoshizawa [1].
Based on the above, the following stated research subjects were established;
145
by mutual comparison of each Quality Award?
The outline of the composition of the TQM Quality Award Element Comparison
Matrix is described in Para. 5.2, and hereafter, the extraction of factor, the rotation of
the factor by the Principal Factor Analysis, and after it rotates is interpreted, the factor
structure of MBNQA, EQA, JQA, Deming Prize, and ISO 9001 is shown in the figure
based on it, and it explains in Para. 5.3. The study of the analysis results in Para. 5.4
and the conclusion of the research are described in Para. 5.5.
146
a whole, and the Accumulation Contribution Rates up to the 11th were 0.681. The one
with a small contribution rate to the variable remained in 10, and there was a factor
with a difficult interpretation in 12 though the number with 7, 8, 9, 10, 11, and 12 are
variously examined as the number of factors.
Table 5.1 First Level TQM Conversion Element of Each Award Criteria Item
Quality Award Criteria Item
MB 1 Leadership is established.
MB 2 Strategic plan is established.
Malcolm Baldrige MB 3 Market and customeris is focussed.
National Quality MB 4 Information is analyzed.
Award MB 5 Human resources is focussed.
NB 6 Process management is established.
MB 7 Business result is measured and evaluated.
EQ 1 Leadership is established.
EQ 2 Policy and strategy are established.
EQ 3 People management is established.
European Quality EQ 4 Partnership and resource control are established.
Award EQ 5 Process is established.
EQ 6 Customer Results are improved.
EQ 7 People Results are imploved.
EQ 8 Society Results are imploved.
EQ 9 Key Performance Results are improved.
JQ 1 Leadership and decision making are established.
JQ 2 Social responsibility in management is accomplished.
JQ 3 Customer and market are understanded and responced.
Japan Quality Award JQ 4 Strategy is settled on and deployed.
JQ 5 Ability of individual and organization are improved.
JQ 6 Value creation process is established.
JQ 7 Information management is established.
JQ 8 Results of activities are declared.
DF 1 Management policy is established and deployed.
DF 2 Product development and business are reformed.
DF 3 Quality of product and business is controlled and improved.
Foundation
DF 4 Management system such as QDCSE is maintained.
DF 5 Information analysis and IT are used.
DF 6 Human Ability is developed.
DS 1 Feature of TQM is created.
DS 2 Vision, strategy, and leadership are demonstrated.
Deming
Feature DS 3 Customer value is created.
Pize
(Speciality) DS 4 Performance of organization is improved greatly.
DS 5 Management base of organization is established.
DS 6 Others.
DT 1 Understanding and zeal to TQM are shown.
DT 2 Top has leadership, vision, strategy, policy, and discernment to environmental change.
Topmanage
DT 3 Organization power (core technology, speed, energies) is maintained and strengthened.
ment
DT 4 Human resources is improved.
DT 5 Social responsibility of organization is accomplished.
ISO 1 Basis of quality management system is established.
ISO 2 Management responsibility is clarified.
ISO 9001 ISO 3 Resource management is established.
ISO 4 Product realization process is established.
ISO 5 Basis of measurement, analysis, and improvement is established.
147
In the Principal Component Analysis of the Correlation Coefficient Matrix between
variables to which the Eigenvalue was resolved, Eigenvalues up to the 11th were 1 or
more, and the Accumulation Contribution Ratio was 0.756. Moreover, there was no big
difference as for the Factor Loading. Then, it was assumed that 11 factors whose
Eigenvalue is 1 or more were adopted, and the following analyses were advanced.
First of all, the square sum and the contribution rate of the factor loading of 11 factor
models when Varimax Rotation is done are shown Table 5.2 are shown. The square sum
of Factor Loading of each factor is all 1 or more. Moreover, note that the factor after it
rotates is not arranged in order of the size of the Contribution Ratio.
Table 5.2 Square Sum of Factor Loading and Contribution Ratio of each Factor after
Varimax Rotation
(Upper: Factor 1- Factor 6, lower: Factor 7 – Factor 11)
148
The correlation is a little high DF4 (Management system such as QDCSE is
maintained) and DF2 (Product development system and businessare reformed), and
it is related to the Deming Prize. It can be interpreted as the factor concerning the
Cross-Management such as Q (Quality), C (Cost/ Profit), D (Quantity/ Delivary Date),
S (Safety), E (Environment) (Cross-Functional Management and Cross-Business
Elemental Management according to TQM in the Deming Prize of Japan).
・Factor 4: Leader Philosophy factor
The correlation are high with DT1 (Understanding and zeal to TQM are shown)
and DS1 (Feature of TQM is created), the correlation is a little high with the element
that relates to the leadership additionally, though the relation is strong in the
Deming Prize. It can be interpreted as the factor that expresses a top philosophy and
zeal to promote TQM.
・Factor 5: Strategic Plan factor
The correlation is high with MB2 (Strategic plan is established) and JQ4 (Strategy
is settled on and deployed), and it is named the Strategic Plan factor.
・Factor 6: Customer Market factor
The correlations are high with MB3 (Market and customer is focused), EQ5 (Process
is established), EQ6 (Customer results are improved), JQ3 (Customer and market are
understood and responced), and DS3 (Customer value is created), and it is named the
Customer Market factor.
・Factor 7: Revolutionary Innovation factor
It is assumed the Revolutionary Innovation factor because the content is an
element from which effectiveness, reproducibility, and innovativeness of the
development of the concept, the methodology, and the technology of new TQM of
ahead of the time are demanded, though the correlation are high with DS4
(Performance of organization is improved greatly) and DS5 (Management base of
organization is established), and the relation of other item of "Activities with the
feature" of Deming Prize are strong.
・Factor 8: Information Utilization factor
The correlation is about 0.8 high with MB4 (Information is analyzed), JQ7
(Information management is established) and DF5 (Information analysis and IT is
used), and it can be interpreted clearly as the Information Utilization factor.
・Factor 9: Human Resources Development factor
The correlation is by 0.9 or more with EQ3 (People management is established),
JQ5 (Ability of individual and organization are improved), DF6 (Human ability is
developed), and DT4 (Human resources is improved), and it name the Human
Resources Development factor.
・Factor 10: Management Responsibility factor
The correlation is a little high with ISO2 (Management responsibility is clarified)
and ISO1 (Basis of Quality management system is established), and there is a little
149
correlation with element related to the leadership besides, and it can be interpreted
as a Management Responsibility factor. Different respect of the leadership is
represented with Factor 2 and Factor 4.
・Factor 11: Process factor
The correlation is high with ISO5 (Basis of the measurement, analysis, and
improvement is established), ISO4 (Product realization process is established), and
there are correlations with MB6 (Process management is established), JQ6 (Value
creation process is established), DF3 (Quality of product and business is controlled
and improved), and it is named the Process factor.
The summary of the above-mentioned name of 11 factors was shown in Table 5.3.
150
The above-mentioned 11 factors can be observed as follows. First of all, though Factor
2 (Social Responsibility factor), Factor 4 (Leader Philosophy factor), and Factor 10
(Management Responsibility factor) are factors that relate to management person's
leadership, Factor 2 is a responsibility to the outside of the organization to the society
and the stockholder and it has the side where the profit as the result of the enterprise
etc. are focused, Factor 10 has responsibility that turns internally as management
person's role in the ISO quality management system, and Factor 4 has the side of the
philosophy and zeal (passion) for implementation to TQM of the management person
with whom responsibility is promoted especially by the Deming Prize. This is thought
that the mission of the EQA to Factor 2 and Factors 4, the vision and ethics to Factor 10,
and the value and culture are corresponding to Factor 4. Moreover, the distribution
evaluation point of the Deming Prize is the Topmanagement 100 points, the
Fundamental 100 points, the feature of TQM 5 points, and the Topmanagement's
occupying the weight of about 50% shows the importance. It can be said that these three
factors will show the importance of the leadership by each dividing and displaying into
three sides as being in the explanation of the above-mentioned.
Though Factor 6 (Customer Market factor), Factor 11 (Process factor), and Factor 3
(Cross-Management factor) relate to the process of the customer value creation and
product development, production, and offer, Factor 6 centers on understanding and
respondence to the customer and market, Factor 11 takes up a Daily Management
process of the customer value creation and the continual improvement, and Factor 3
divides the side where the revolution of the system including QCDS is focused.
Factor 5 (Strategic Plan factor) corresponds to the strategic plan, the policy and
strategy, and the decision and deloyment, and company's basic principles of each Award.
Factor 8 (Information Utilization factor) corresponds to the analysis of information, the
information management and analysis, and IT and Factor 9 (Human Resources
Development factor) corresponds to the human resources focus, the people management,
the people results and the ability improvement of individuals and organization and the
human capability development.
It is specific obsevation that factor 1 (Partner factor) corresponds only to the EQ4
Partnership of EQA, Factor 8 (Information Utilization factor) doesn't have
correspondence by in the EQA. On the other hand, the factor corresponding to the
business results of each Award oppositely corresponds to Factor 2 (Social Responsibility
factor) and Factor 6 (Customer Market factor) are the main, and factor 9 (Human
Resources Development factor), Factor 11 (Process factor), and Factor 7(Revolutionary
Innovation factor) are added to this.
151
Quality Award, as shown in Fig. 5.1, 5.2, 5.3, 5.4, and 5.5. In those figures, bold arrow
shows 0.6 or more of the Factor Loading in the absolute value and fine arrow shows that
2nd place below the decimal is rounded off and it has 0.4 or more (0.4 or less and
expression) of Factor Loading.
Though simply considering, it is the consideration of the correspondence of the 1st
level element of the criteria item of each Award and each factor, and it is thought more
clear pictures if further continuing on detail analysis to 2nd or 3rd levels elements.
Social Responsibility
Management Responsibility
MB1 Leadership is established.
Leader Philosophy
MB2 Strategic plan is established.
Strategic Plan
MB3 Market & Customer is focused.
Partner
Process
MB5 Human Resources is focused.
Cross-Management
MB6 Process Management is established.
Information Utilization
Revolutionary Innovation
152
When comparing with EQA and the Factor Loadings of JQA, Social Responsibility
and Management Responsibility are lower value.
The structure of the management result focus is presumed from the Factor Loading
of the Strategic Plan, Process, and Information Utilization. And, its means is the
Customer Market and Human Resources Development focus. That is, Human Resources
are focused and developed to use the analysis result of information on Customer Market,
through the establishment of Strategic Plan and Process Management. It is a structure
to focus "Management Quality" (Nakhai & Neves [3]) if it sees from the standpoint of
TQM.
Social Rsponsibility
EQ1 Leadership is established.
Management Responsibility
EQ2 Policy & strategy are established.
Leader Philosophy
Process
EQ6 Customer Results are improved.
Cross-Management
Revolutionary Innovation
EQ9 Key Performance Results are improved.
153
About the absolute value of Factor Loading
|Factor Loading| ≧ 0.6: Social Responsibility, Partner, Customer Market, and
Human Resources Development
|Factor Loading| ≧ 0.4 or less: Management Responsibility, Leader Philosophy, and
Strategic Plan.
|Factor Loading| < 0.4 or less: Process, Cross-Management, Information Utilization,
and Revolutionry Innovation.
Only the Partner factor is only this Award, and it is only this Award that the
Information Utilization factor is irrelevant though a point different from MBNQA has
already been described in Social Responsibility Focus.
It is understood that the posture of Social Responsibility, Partner, and Customer
Market Focus is a structure based on " Enterprise Quality as Citizens" (Nakhai & Neves
[3]). That is, the Human Resources Development factor that the People Management is
established and improving the People Results is focused to achieve for improving the
Society Results, establishing the Partnership, improving the Customer Results.
When observing overall, all elements of the Social Responsibility, the Management
Responsibility, the Leader Philosophy, the Strategic Plan, the Customer Market, the
Process, the Information Utilization, and the Human Resources Development are the
same to MBNQA because it is modeled by the MBNQA. However it is recognized that
the structure to focus the Social Responsibility is one step advanced from the idea of the
management quality focused though the factor structure is almost corresponding by the
point of the same factors from which the arrow has come out in figure. That is, it is
"Management Quality plus Social Responsibility" structure by accomplishing the Social
Responsibility in the management, trying to achieve it by establishing, deploying the
strategy for understanding and respond to the Customer Market, and establishing the
Value Creation Process and the Information Management.
154
Social Responsibility
JQ1 Leadership & decision making are established.
Management Responsibility
JQ3 Customer and the market are understood & rresponded. Strategy Pplan
Partner
JQ4 Strategy is settled on and deployed.
Customer Market
Revolutionary innovation
155
DF1 Management Policy is established & deployed.
Social Responsibility
DF3 The
QualityDF2 product
of Product development
& business and
controlled & improved.
Leader philosophy
DS6 Others
Management responsibility
DT2 Top has Leadership, Vision, Strategy, Policy, &
discemment to environment.
Leader Philosophy
DT3 Organization power (core technology etc.) is
Partner
DT4 Human Resources is improved.
156
It is recognized specific factors "Cross-Management" and "Leader Philosophy" are
in Deming Prize but these are able to identify somewhat similar ones in other 3 Awards.
However, "Revolutionary Innovation" is corresponding with only Deming Prize.
TQM (Total Quality Management) is professed as “Must” and "6. The continuance of
TQM is assured" is focused in DT2 (Top’s Leadership, Vision, Strategy, and Policy). The
most important factor is understanded by thing that “Leader Philosophy” is in both
categories of “Topmanagement” and “Feature”. Becoming it "A System of Profound
Knowledge” of Dr. of Deming: “The prevailing style of management must undergo
transformation. A system cannot understand itself. The transformation requires a view
from outside. The aim of this chapter is to provide an outside view – a lens – that I call a
system of profound knowledge. It provides a map of theory by which to understand the
organizations that we work in.” (p. 92, Aim of this chapter 4: A system of Profound
Kowledge, W. E. Deming [4]).
(E) ISO9001
About the absolute value of Factor Loading
157
the Basis of quality management is established, and the management responsibility is
clarified, and then it can be said the “Quality System Structure”. Other factors are very
weak correlations except the Management of Resource corresponds to the Human
Resources Development.
Social responsibility
Leader philosophy
ISO2 management responsibility is
clarified. Strategic plan
Partner
ISO3 Management of the resource is
established.
Customer market
Revolutionary innovation
158
Table 5.4 Factor Structure Table of each Award
Factor Loading
Quality award
0.6 or more 0.4 or more or less Less than 0.4 or less
Strategic Plan and Social Responsibility and Partner and Cross-
Customer Market Management Management
MBNQA Process and Information Leader Philosophy Revolutionary Innovation
Utilization
Human Resources
Development
Social Responsibility and Management Process and Cross-
Partner Responsibility and Management
EQA Customer Market and Strategic Plan Information Utilization
Human Resources and Revolutionary
Development Innovation
Social Responsibility and Management Partner and Cross-
Strategic Plan Responsibility and Management
Customer Market and Revolutionary Innovation
JQA Process
Information Utilization
and Human Resources
Development
Process and Cross- Management Partner
Management Responsibility and
Fundamental Information Utilization
and Human Resources
Development
Deming Leader Philosophy and
Feature
Prize Customer Market
(Speciality)
Revolutionary Innovation
Social Responsibility and Management
Topmanagem Leader Philosophy Responsibility and
ent Human Resources Partner
Development
Management Human Resources Social Responsibility and
Responsibility and Development Leader Philosophy
Strategic Plan and
ISO9001 Customer Market and
Cross-Management
Information Utilization
and Revolutionary
Customer Market and Management
Four Awards commonness Human Resources Responsibility
Development
Social Responsibility and Leader Philosophy Partner and Cross-
Three Awards
Process Management
commonness
Information Utilization Revolutionary Innovation
Two Awards commonness Strategic Plan Strategic Plan
Partner and Cross- Social Responsibility Information Utilization
Only by one Awarde Management
Revolutionary Innovation
159
Table 5.5 Summary of Factor Structure of each Award
160
5.4.2 Common Factor and Individual factor
(A) Common factor
It is explained for factor stracture of each Quality Award in previous chapter, and it
is recognized a need to consider for “Common Factor Structure” as shown in Table 5.6,
which is to compare and evaluate each Quality Award TQM element (variable) by
contribution ratio and common level. The figure in the table indicates the Factor
Loading.
The strong correlation is seen in the Customer Market and the Human Resources
Development as for four Award common factor, the Management Responsibility follows
this, and the strong correlation is seen in the Social Responsibility, the Process, and the
Information Utilization as for three Award common factor, and the Leader Philosophy
follows this and the strong correlation with Strategic Plan as two Award common factor
and it is thought that this is four Award common factor because the correlation that
follows it have both of them, from Table 5.4 and Table 5.5.
Judging from the above observation, common factors of the factor structure of
Quality Award, 8 factors in Table 5.6 are considered to be the necessary as its contents.
Moreover, the attached table: The factor of Contribution Ratio > 0.07 and Square Sum >
3 are Social Responsibility, Customer Market, Process, and Human Resources
Development, variable was to 21 items by 4 factors from overall consideration of the
Factor Loading. And 10 variable items of Common Level > 0.8 and Residual Variance <
0.2 of correspond to 6 factors from Quality Award TQM Element (variable). The variable
that the Contribution Ratio and Common Level correspond to Factor Loading >0.5 was
shown in Table 5.6. Based on this analysis, it is understood that Contribution Ratio is
responding with good balance condition to each Quality Award and Common Level is
recognizesed no correspondence in MBNQA and that a lot of correspondence are
provided in Deming Prize. It is natural that the one with a high correlation level as for
Leader Philosophy factor (DS1=0.8, DT=0.8) and Information Utilization factor
(MB4=0.8, JQ7=0.7, DF5=0.8) is found if it sees only from the correspondence between
factor and variable.
161
Table 5.6 Common factor and Factor Loading
162
If those contents is studied at the 2nd and 3rd level, the element to achieve the
improvement of the Partner performance index by the tie-up of the strategies and
policy like construction of an external partnership, sharing the culture and
knowledges, and collaborative activities of the supply chain improvement etc. is
the Criteria item, and these are quite similar concept of GWQM (Group-wide
Quality Management) in Japan.
163
technology utilization,
To develop for quality system to aquire customer satisfaction in solution
business related.
“Others” concerns,
the excellent features activities in regional social contribution activity,
enterprise ethics, and ovservance of law and regulation are shown in the
3rd and 4th level items (Elements) are covered such requirment in detail.
5.5 Conclusion
The tendency of the quality focus in every country in the world is clear because
National Quality Award is being enacted in 63 countries now, and eventually Total
Quality Management (TQM) is being recognized as a basis of business management.
The following can be said to the research subjectsc set by this chapter opening from
the confirmation of the above-mentioned.
(C) The Partner factor of EQA and the Cross-Management factor and the Revolutionary
Innovation factor of Deming Prize are given assuming as the feature.
164
(D) If the meaning of the Quality Award is considered from "Continuous Promotion of
TQM and Revolution Innovation Focus structure" of the Deming Prize, the concept
and philosophy of MBNQA are dispersed and established their Quality Award
respectively at each state and the city in USA, and a social system is being structured
that the organization apply to those Quality Award and those recipient organizations
apply MBNQA, and the recipient of MBNQA will rechallenge again in five years after.
The EQA is in the situation in which the quality award recipient organization of each
country in Europe applys to EQA. As for the Deming Prize, a phased system from the
Recognition of TQM Achievement as the former steps to the Deming Prize and to the
Japan Quality Medal as 5 years later was constructed.
" Expected Effects" by encouraging a continuous promotion and implementation are
explained as 10 benefits in "the Deming Prize Application Guide": 1 Stability and
improvement of quality, 2 Improvement of productivity / cost reduction, 3 Expansion
of sales, 4 Improvement of profit, 5 Certain excution of management plan / business
plan, 6 Realization of Top management dream, 7 Quality Control by every member
participation and improvement of company’s constitutions, 8 Encouragement of
control and improvement consciousness and promotion of standardization, 9
Concentration of company-wide energy from lower layers and improvement of morale,
10 Establishment of management systems and total management system.
Moreover, if it thought based on "Revolutionary Innovation" concern, each applicant
companies are requesting for "Shine thing: Something New" by tacit reason at the
time of evaluation stage by judges on every year from the 50 years long experiences of
the Deming Prize. And, Today's TQM technology is firmly established by close joint
work’s result of educational-industrial cooperations, and achieved “Japanese Quality
Revolution” as mentioned by Dr. J. M. Juran (Juran [6]). "Continuous promotion and
implementation of TQM" and "Revolutionary Innovation" are not the exaggerations to
say the life of the Deming Prize.
(E) The self-assessment in Quality Award is the accompanied system of three Quality
Awards except the Deming Prize. In Japan, Jidou [7] and his party have been
studying for such program proposal, and it is possible to use 11 factors of this research
as a module element of the TQM diagnosis.
165
Reference
166
Attached Table: Factor Loading of each Award
2 10 4 5
Social Management Leader Strategic
No. Award Variable identifier Responsibility Rresponsibilit Philosophy Plan factor
factor y factor factor
167
1 6 11 3 8 9 7
Partner Customer Process Cross- Information Human Revolutionary
factor Market factor factor Management Utilization Resources Innovation Common level Residual
factor factor Development factor Variance
factor
0.148 -0.227 -0.072 -0.095 -0.055 0.015 -0.112 0.773 0.227
-0.101 -0.057 -0.084 0.084 -0.024 0.036 -0.040 0.738 0.262
-0.030 0.680 0.085 0.032 0.041 -0.096 -0.104 0.498 0.502
-0.217 -0.071 -0.085 0.069 0.808 -0.045 -0.011 0.761 0.239
0.061 -0.138 -0.065 -0.106 -0.076 0.831 -0.033 0.746 0.254
-0.131 0.047 0.641 -0.291 -0.048 -0.078 -0.029 0.531 0.469
-0.072 0.351 0.084 -0.031 0.044 0.100 -0.059 0.484 0.516
-0.005 -0.130 -0.128 0.115 -0.067 0.082 0.040 0.583 0.417
-0.398 0.324 -0.046 0.065 0.235 -0.120 0.148 0.533 0.467
0.014 -0.130 -0.097 0.092 0.022 0.903 -0.035 0.857 0.143
-0.657 -0.175 0.066 -0.044 0.159 -0.010 -0.038 0.498 0.502
0.020 0.737 0.256 -0.052 0.032 -0.164 0.058 0.687 0.313
0.076 0.695 0.082 0.014 0.022 -0.168 0.007 0.590 0.410
-0.046 -0.068 -0.105 0.021 0.059 0.798 0.007 0.671 0.329
-0.061 -0.020 -0.031 0.055 -0.030 -0.113 0.006 0.594 0.406
-0.505 0.050 0.105 -0.165 0.035 -0.099 -0.029 0.468 0.532
0.010 -0.131 -0.006 -0.111 0.022 0.080 -0.094 0.748 0.252
0.051 -0.066 -0.028 0.093 -0.092 -0.164 -0.046 0.782 0.216
0.096 0.871 0.038 -0.180 0.089 -0.149 -0.056 0.862 0.138
-0.031 -0.077 -0.078 -0.007 0.115 -0.007 -0.041 0.798 0.202
0.025 -0.102 -0.092 -0.043 -0.058 0.902 -0.042 0.853 0.147
-0.058 0.032 0.748 -0.339 -0.086 -0.158 0.016 0.724 0.276
-0.117 0.214 0.078 -0.261 0.707 -0.093 0.020 0.659 0.341
0.002 0.330 0.485 -0.151 0.089 -0.060 -0.193 0.571 0.429
0.166 -0.248 -0.215 0.116 -0.136 -0.215 -0.049 0.855 0.145
-0.014 0.274 0.173 -0.587 0.171 0.149 -0.055 0.558 0.442
0.038 0.092 0.706 -0.088 0.020 -0.022 -0.035 0.566 0.434
-0.034 -0.005 0.224 -0.667 -0.011 -0.081 0.049 0.565 0.435
-0.010 0.127 -0.008 -0.015 0.829 -0.077 -0.029 0.759 0.241
0.096 -0.062 0.004 0.042 -0.053 0.931 -0.058 0.912 0.088
0.109 -0.169 -0.043 0.064 0.007 -0.052 0.167 0.714 0.286
-0.006 -0.170 0.006 -0.052 -0.122 -0.128 0.649 0.726 0.274
0.148 0.620 0.110 -0.119 0.031 -0.165 0.418 0.721 0.279
0.042 0.088 0.148 -0.139 -0.055 -0.082 0.843 0.809 0.191
-0.127 0.091 -0.071 0.061 0.254 0.159 0.822 0.884 0.116
0.099 0.129 -0.151 0.163 -0.093 -0.147 0.644 0.601 0.399
-0.055 -0.100 -0.043 0.133 -0.060 0.049 0.133 0.715 0.285
-0.039 0.116 -0.103 0.071 0.001 -0.227 -0.015 0.658 0.342
-0.353 -0.076 -0.007 0.129 0.311 -0.024 -0.005 0.280 0.720
0.057 -0.103 -0.112 0.022 -0.770 0.914 -0.042 0.880 0.120
0.010 -0.213 -0.165 0.120 -0.141 0.069 -0.071 0.695 0.305
-0.070 -0.015 0.314 -0.137 0.051 0.007 0.050 0.543 0.457
-0.028 0.212 0.135 -0.026 -0.064 -0.135 -0.059 0.703 0.297
-0.111 -0.071 0.194 -0.017 -0.101 0.507 0.027 0.448 0.552
-0.039 0.221 0.810 0.156 -0.065 -0.088 0.055 0.855 0.145
0.022 0.130 0.819 0.131 0.112 -0.047 0.067 0.872 0.128
1.249 3.662 3.617 1.440 2.300 5.405 2.595
0.027 0.080 0.079 0.031 0.050 0.118 0.056
168
Chapter 6 Time-Series Revisional Change of Criteria of Malcolm Baldrige National
Quality Award
This chapter compares time-series of one Quality Award Criteria revisional change
by using the method of development in Chapter Chapter 4 and 5, and confirms the
effectiveness of the method of concerned.
Step 1: To arrange and integrate TQM Elements (Bring it together in 48 second items)
of TQM Elements Deployment Tables.
Step 2: To prepare for matrix table (TQM Quality Award Element Deployment Table)
between 3rd level elements of Criteria item in MBNQA TQM Element
Deployment Table in each year and TQM Elements Deployment Table, and
the Criteria item evaluation point are distributed. The matrix of 48×233 is
prepared and it is called, "MBNQA Criteria Time-Series Comparison
Matrix (Abbreviation: Time-Series Comparison Matrix)".
Step 3: To weigh “Relation Degree (Relation Strength (0-3)” between TQM Element and
169
Criteria Element into each crossing cells in “Time-Series Comparison
Matrix”.
➀ Strength decision for relationship will be done by the prodedure in Chapter 4
and be recommending to refer to Quality Award TQM Element Matrix in
2001.
➁ Relastion Degree (Strength of relation) of vertical column “TQM Element” is
compared further by cell for degree of enumeration insertion from holizontal
colomn of each year and the correspondence of the strength judgment of
Relation Degee is checked.
Step 4: To culculate for Relationsip Index of Time-Series Comparison Matrix by
Relationship Index = Relation Degree × Evaluation Distribution Point
Step 5: To prepare for The Time-Series Comparison Matrix with Relationship Index
summed up by only 1st level elements (from48×233 to 48×49) by every year, as
Simple Time-Series Comparison Matrix.
Step 6: To calculat Principal Factor Analysis on Simple Time-Series Comparison Matrix
Step 7: To analyze the Factor Structures
Step 8: To evaluate and to conclude for analysis result
The analysis of the factor structure by the above Simple Calculation Method should
consider following respects.
(1) It is not clear for any influence in factor analysis result by simple calculation
method.
(2) It refers to "Relation Degree" after the model of 2001 MBNQA use as standard.
(3) As for the number of Structural Factors concern, it is forecast under 11 factors. That
is, though 11 factors was decided in Chapter 5 provided Partner factor of EQA,
Cross-Management factor and Revolutionary Innovation factor of Deming Prize but
Factor Loading of these factors is small because MBNQA single model. However, it
is possible that corporate governance and ethics action to the MBNQA peculiar, etc.
appear.
170
(2) Strategic Planning: "Human Resources Plans" was specified in 1997, but deleted in
1999 and no more specified any change afterwards.
(3) Customer and Market Focus: It was not any Criteria item in 1988, and 1989, and
was added in 1997, and not revised any afterward.
(4) Information and Analysis: It was specified in detail Category by 7 items till 2nd level
in 1988, but after 1989, they were decreased a just several items. In 1997,
and"Selection and use of information and data" and "Selection and use of
compartive information and data" were specified but lost after 1999. Moreover, it
was simplified to "Measurement of organizational performance" and "Analysis of
organizational performance" in 1999, these were lumped together to
"Measurement and analysis of organizational performance" in 2001, in addition,
"Information management" was added. And, this became "Information and
knowledge management" in 2003.
(5) Human Resources Management: "System of personnel rating, motivation, and
recognition" and "Unique and innovative approach concerning human resource
use" were issued in 1988, then "Recognition to employee" and "Quality of working
environment" were revised in 1989. "Human resource development and
management" in 1997 became "Human resources focus" after 1999. "Work
Systems" has been used continuously after 1997 and then though there was
"Compensation and recognition" in the 3rd level item of "Work Systems" in 1997,
"Employee performance management system" and "Hiring and career
progression" were revised in "Work Systems" in 2003. Moreover, it became
"Employee learning and motivation" in 2003 and "Motivation and career
development" was added to the 3rd level item, though "Employee education and
training and development" in 1997 did not change by 2001.
(6) Though "Quality assurance of product and service" was specified in 1988 and 1989,
they were revised "Process management" in 1997 and continued, in
addition, ”Management of supplier and partonering process”, and then "Supplier
and partnering process" in 1999 joined and it continued and it became "Support
process" in 2001. These two items were integrated into "Value creation process"
and "Support process" in 2003.
(7) Though "Result of the quality assurance concerning product and service" and
"Customer satisfaction degree" are in 1988, and "Results of quality" and
"Customer satisfaction degree" are in 1989, these becomes "Business results" in
1997, and "Supplier and partner results" in its 2nd level item, though it continued
by 1999 but these were lost from 2001. And " Product and service Results " and
"Public responsibility and citizenship results" were added from 2001, and these 2
items became second items, and independent of " Product and service results"
and "Governance and social responsibility results" in 2003.
171
Table 6.1 MBNQA Criteria Item Ttime-Series Comparison Table
172
Table 6.1 MBNQA Criteria Item Time-Series Comparison Table (.continued)
173
It is summarized that the criteria item are staying as 7 without any changing, at
the beginning stage shich were mostly high-lighted on “Quality Assurance” and
“Customer Satisfaction” in 1988 and 1999, then were recognized for “Management
Quality” since 1997 and were continuing for this concept till 1999. Then it began to
change in 2001, and is recognized for fundamentalshifting in 1st level and 2nd leve items
in 2003.
(3) 3 factors are induced from Factor Scoring points and Factor Score Scatter
Diagram.
Factor 1: It is named "Management factor", because the TQM element existed that
174
on the plus side, “9.2 Management Review is implemented”, “9.5
Businesses Results is improved”, and on the minus side, “4.5
Customer Satisfaction Degree is improved”.
Factor 2: It is named "Product and service process factor", because the TQM
element existed that on the plus side, “3.3 Customer-relationships are
constructed”, “2.6 Long term profit is ensured”, and on the minus side,
“5.5 the GWQM process is established”, “6.1 Qualities, Environmental
regulations, and standards are focused”.
Factor 3: It was named "Relationship factor" because the TQM element exist that
on the plus side, “3.3 Customer-relationships is constructed”, and on
the minus side, the elements such as the customer, employee, and
stockholder are concentrated, as “6.1 Qualities and Environmental
regulations are focused”, “6.4 Processes Management and
Improvement are proceeded”, “8.1 Basis of Human Resources
Developments is established”, “9.4 Stockholders-relationship is
improved”
.
(4) Accumurateive Contributiion Ratio is 0.976, caluculated by Factor 1, Factor 2,
among of 3 factors that Factor model could be explained by these 2
fctors.
The Principal Component name was interpreted from the Principal Component
Scorebook and the Principal Component Score Scatter Diagram with TQM Elements
Deployment Table and 5 Principal Components as follows.
175
Table 6.3 Contribution Ratio of Eigenvalue of Principal Component of MBNQA
No. Eigenvalue Contibution Rate Cumulative Contribution Rate
1 12.915 0.264 0.264
2 7.753 0.158 0.422
3 6.320 0.129 0.551
4 5.457 0.111 0.662
5 4.433 0.090 0.753
6 3.861 0.079 0.831
7 1.690 0.034 0.866
8 1.114 0.023 0.889
9 0.811 0.017 0.905
10 0.719 0.015 0.920
176
Changes of MBNQA Criteria item is shown by expressing in figure such as Fig. 6.1
(1988), Fig. 6.2 (1989), Fig. 6.3 (1997), Fig. 6.4 (1999), Fig. 6.5 (2001), Fig. 6.6 (2003),
and Fig. 6.7 (2001: former). A Bold arrow shows the amount of 0.6 or more of the
Factor Loading in the absolute value and it is shown by a thin arrow has the Factor
Loading of 0.4 or more (0.4 or less and expression) that 2nd place below the decimal
is rounded off. The data sheet of "MBNQA Criteria item and Principal Component
Structure" was put on the attached table.
It is briefly explaining for relationship in 1st level element of MBNQA Criteria item
of each year and each component mentioned in the above.
1 Leadership
Management system
2 Information and
5 Quality assurance of
Human resources
product and service
development
177
|Factor Loading| ≧ 0.4 or less: Leadership, Information and analysis, Quality of
strategic plan, Use of human resource (2)
|Factor Loading| < 0.4 or less: Leadership (3), Information and analysis (4), Quality
of strategic plan (4), Use of human resource (3), Quality
assurance of products and services (4), Result of Quality
assurance of products and services (4), Customer
satisfaction degree (4)
26 in total.
The absolute value of Factor Loading ≧ 0.6 doesn't exist except “Leadership”,
“Quality assurance of products and services”, “Result of quality assurance of products
and service”, and “Customer satisfaction detgree” for Management system, and the item
of <0.4 or less exists 26 conponents by 7 Criteria items ☓ 5 components = 35
components.
1 Leadership
Management system
2 Information and
analysis
Mission and result of
3 Strategic quality plan organization
plan is developed
5 Quality assurance of
product and service Human resources
development
6 Results of quality
178
Result of quality, Customer satisfaction degree
|Factor Loading| ≧ 0.4 or less: Leadership, Information and analysis, Strategic
quality plan is developed (2), Human use, Quality
assurance of product and service, Results of quality
|Factor Loading| < 0.4 or less: Leadership (4), Information and analysis (4),
Strategic quality plan is developed (3), Human use (3),
Quality assurance of product and service (3), Results of the
quality(3), Customer satisfaction degree (4)
24 in total.
The relation to “Information and analysis and Information system are Factor
Loading ≧ 0.4 or less, and it exists 24 Components among 7 Criteria items ☓ 5
Components = 35 Components though the Component Factor Factor Loading ≧ 0.4 or
less exists also in either of 7 Criteria item items.
1 Leadership
Management
system
2 Strategic planning
5 Human resources
Human resources
development and management
development
6Process management
Product and service
process
7Result of active conduct of
179
results
|Factor Loading| ≧ 0.4 or less: Leadership, Strategic planning (2), Information and
analysis (3), Human resoources development and management,
Process management, Business results
|Factor Loading| < 0.4 or less: Leadership (3), Strategic planning (3), Customer and
market focus (4), Information and analysis (2), Human resources
development and management (3), Process management (3),
Business results (3).
21 in total.
The both of Factor Lording of ≧ 0.6 and ≧ 0.4 or less are observed for every
Criteria items, and the item of <0.4 or less exists 21 components among 7 Criteria items
☓ 5 components =35 components.
1 Leadership
Management
system
2 Strategic planning
180
analysis (3), Human resources focus, Process management,
Businesss results (2)
|Factor Loading| < 0.4 or less: Leadership (3), Strategic planning (3), Customer, and
market (4), Information and analysis (2), Human resources focus
(3), Process management (3), Businesss results (3)
21 in total.
1 Leadership
Management
system
2 Strategic development
6 Process management
181
(f) criteria in 2003
About the absolute value of Factor loading
|Factor Loading| ≧ 0.6: Leadership, Strategic planning, Customers and market focus,
Human resources focus, Process management, Business results
|Factor Loading| ≧ 0.4 or less: Leadership (2), Measurement, analysis, and
knowledge management (3), Human resources focus, Business
results
|Factor Loading| < 0.4 or less: Leadership (2), Strategic planning (4), Customer and
market focus (4), Measurement, analysis, and knowledge
management (2), Human resources focus (3), Process
management (4), Businesss result (3)
22 in total.
2 Strategic planning
Human resources
5 Human resources focus
development
6 Process management
182
are focused, Information is analyzed, Human resources is focused.
|Factor Loading| < 0.4 or less: Leadership is established (4), Strategic plan is
established (4), Customer and market are focused (4), Information
is analyzed (4), Human resources is focused (3), Process
management is established (4), Business results are measured
and evaluated(4)
27 in total.
The data of 2001 (former) is shown a numerical value that is naturally lower than
the data of this chapter items because it is a total value to the cell of each Criteria item
of the data used to compare Quality Awards in each country according to the 4th level
precision degrees of judgment of Relation Degree, though a united judgment is
identified from Fig. 6.1 to Fig. 6.7 for the MBNQA Criteria Time Series Comparison by
reference to the data of 2001(former).
183
Table 6.4 Summary of MBNQA Criteria Item and Principal Component Structure
1 2 3 4 5
Principal Principal Principal Principal Principal
Component Component Component Component Component
Year Criteria Item Mission and
Human Product
Management result of Information
resources and service
system organizatio system
development process
n
1 Leadership 0.6 0.4
2 Information and analysis 0.4
3 Quality of strategic plan
1988 4 Use of human resource 0.4 0.4
5 Quality assurance of product and service 0.6
6 Result of quality assurance of products and service 0.6
7 Customer satisfaction degree 0.6
1 Leadership 0.4
2 Information and analysis 0.4
3 Strategic quality plan is developed 0.4 0.4
1989 4 Human resources use 0.6 0.6
5 Quality assurance of product and service 0.4 0.6
6 Result of quality 0.4 0.6
7 Customer satisfaction degree 0.6
1 Leadership 0.6 0.4
2 Strategic plannig 0.4 0.4 0.4
3 Customer and market focus 0.6
1997 4 Information and analysis 0.4 0.4
5 Human resources development and management 0.6 0.4
6 Process management 0.6 0.4 0.4
7 Business results 0.6 0.4
1 Leadership 0.6 0.4
2 Strategic planning 0.4 0.4
3 Customer and market focus 0.6
1999 4 Information and analysis 0.4 0.4 0.4
5Human resources focus 0.6 0.4
6 Process management 0.6 0.4
7 Business results 0.4 0.4
1 Leadership 0.6 0.4
2 Strategic planning 0.4 0.4
3 Customer and market focus 0.6
2001 4 Information and analysis 0.4 0.4 0.4
5 Human resources focus 0.6 0.4
6 Process management 0.6
7 Business results 0.4 0.4
1 Leadership 0.6 0.4 0.4
2 Strategic planning 0.6
3 Customer and market focus 0.6
2003 4 Measurement, analysis, and knowledge management 0.4 0.4 0.4
5 Human resources focus 0.6 0.4
6 Process management 0.6
7 Business results 0.4 0.6
1 Leadership is established. 0.6
2 Strategic plan is established. 0.4
3 Customer and market is focused. 0.4
2001
4 Information is analyzed. 0.4
(former)
5 Human resources is focused. 0.6 0.4
6 Process management is established. 0.6
7 Business results is measured and evaluated. 0.6
184
As a result, it can be confirmed that the Criteria item of each fiscal year in this
Time-Series Comparison are shown the same pattern that indicates the value called
|Factor Loading| ≧ 0.6. And, It has been understood that the difference of relation
line with the Criteria item in the part of |Factor Loading| ≧ 0.4 or less shows the
change by the revision in every fiscal year.
(B) When reviewing for corresponding status to Principal Component to criteria item as
|Factor Lording|≧0.6 , and ≧0.4, and < 0.4 or less.
(1) Principal Component 1 "Management system": There are correspondences to,
|Factor Loading| ≧0.6; "Leadership" (1988, 1997, 2001, 2003, 2001former),
"Strategic planning" (2003), "Customer and market" (1997,1999,2001, 2003),
"Process" (1997, 1999,2001, 2003), “Quality assurance of products and services”,
“Result of Quality assurance of products and services” (1988) and “Customer
satisfaction degree” (1988, 1989), ≧0.4 ; “Lersership” (1989), “Strategic Quality
plan development”, “Quality assurance of products and sercices”, and “Result of
quality” (1989), “Strategic planning” (1999, 2001, 2001 former), and < 0.4 or less;
"Information and analysis", "Human resources", and " Business results" after
1997.
(2) Principal Component 2 "Mission and result of organization": There are
correspondence to, |Factor Loading| ≧ 0.6 ; "Human resources use" (1989),
"Human resources development and management" (1997) and "Human resources
focus" (1999, 2003, 2001 fomer), “Business results” (1997), ≧0.4; “Leadership”
(1988, 1999, 2001, 2003), “Use of human resources” (1988), “Strategic quality plan
development” (1989), “Information and analysis” (1997, 1999, 2001),
“Measurment, abalysis, and knowledge management” (2003), " Business results"
(1999, 2001, 2003), < 0.4 or less ; "Customer and market" and "Process".
(3) Principal Component 3 "Information system": There are correspondence to
|Factor Loading|≧0.6; “Business results” (2003, 2001 former), ≧0.4; "Leadership"
(1997・1999, 2001, 2003), “Information and analysis” (1988, 1989, 1997, 1999, 2001,
185
2001 former), “Meassurement, analysis, and kowledge ,amagement” (2003),
“Business results” (1997,1999, 2001). It is thought as for "Information and analysis"
corresponding to each year, "Business results" is common. And the items concerning.
"Strategic planning", "Customer and market", "Human resources", and "Process"
relations are < 0.4 or less or correspondences 1.
(4) Principal Component 4 "Human resources development": There are
correspondence to |Factor Loading|≧0.6; “Human resources use” (1989), ≧0.4;
"Strategic planning" (1997, 1999, 2001, 2003), “Human resources use” (1988),
“Human resources development and management” (1997), “Human resources focus”
(1999,2001, 2003, 2001 former), "Information and analysis" (1997, 1999, 2001),
"Measurement, analysis, and knowledge management" (2003). It is thought as for
"Human resources" correspond to a related item in each year. "Leadership",
"Customer and market", "Process", and "Business results" are < 0.4 or less. The
reason for correspondence with the item related to "Information and analysis" is
that is related to the use of knowledge resources.
(5) Principal Component 5 "Product and service process": There are correspondence to
|Factor Loading|≧0.6; “Quality assurance of product and service” (1989), “Result of
quality” (1989), “Process management is established” (2001 former), ≧0.4; “Quality
of strategic plan” (1988), “Result of quality assurance of products and services”
(1988), “Customer satisfaction degree” (1989), “Customer and market focus” (1997,
1999, 2001, 2003), “Process management” (1997, 1999, 2001). The items except
“Customer and market focus” are < 0.4 or less in 2003, and “Process management is
established” (2003) is consolidated only in two items "Value creation process" and
"Support process", and it is thought the influence of the lost of direct correspondence
Criteria item of independent 3rd level item like "Management of product and service
process" (1997), " Product and service process" (1999, 2001).
When considering the above by collective evaluation, thouth the Criteria item
composition frame did not change, “Quality assurance” in 1988 and 1989 changed to
“Management quality” focus, the Criteria items in 1997-2001 had some common feature
of Criteria item content, and also “Organizational governance” “Ethical behavior” are
included into “Leadership”, and “Information and analysis” become to emphasize
knowledge management as “Measurement, analysis and knowledge management”, the
content of "Process management" is consolidated in "Value creation process" and
"Support process", and then the deepening as the emphasis of "Governance and Social
Responsibility Results" etc. has happened in the content of "Business results" in 2003.
That is, it is thought that Facter Structure is transferring from “Management
Quality” in Chapter 5 to “Management Quality Focus Citizenship”.
186
For example, tranceformation on “Social Responsibility” is shown as Table 6.5,
Reference document
187
Attached Table MBNQA Criteria Item and Principal Component Structure(1988/1989,1997-2003,2001 former)
1 2 3 4 5
Principal Principal Principal Principal Principal
ingredient ingredient ingredient ingredient ingredient
Fiscal
Variable identifier
Year Mission and Human Product and
Management Information
result of resoources service
system system
organization development process
1 Leadership -0.648 -0.505 0.157 -0.276 0.072
2 Information and analysis 0.391 0.038 -0.501 0.212 -0.361
3 Quality of strategic plan -0.377 -0.324 -0.379 0.058 0.472
1988 4 Use of human resources -0.294 0.587 0.163 0.593 -0.072
5 Quality assurance of producs and service 0.746 -0.138 0.065 0.319 0.304
6 Result of quality assurance of products and services 0.619 -0.156 0.107 0.278 0.428
7 Customer satisfaction degree 0.801 -0.195 0.223 0.231 -0.042
1 Leadership -0.557 -0.256 0.366 -0.372 -0.073
2 Information and analysis 0.076 0.003 -0.587 0.061 -0.346
3 Strategic quality plan development -0.472 -0.506 -0.348 0.218 0.239
1989 4 Human resoources use -0.23 0.641 0.173 0.643 0.068
5 Quality assurance of product and service 0.459 0.028 -0.083 0.195 0.658
6 Result of quality 0.565 -0.047 0.161 0.192 0.605
7 Customer satisfaction degree 0.62 -0.158 0.21 0.149 -0.394
1 Leadership -0.684 -0.323 0.484 0.042 -0.029
2 Strategic plannig -0.598 -0.356 -0.239 0.516 0.195
3 Customer and market focus 0.696 -0.224 0.253 0.173 -0.427
1997 4 Information and analysis 0.072 -0.505 -0.559 0.48 -0.117
5 Human resources development and management -0.317 0.685 0.243 0.55 -0.076
6 Process management 0.72 -0.027 0.124 0.122 0.531
7 Business results 0.071 -0.606 0.564 0.237 -0.018
1 Leadership -0.705 -0.467 0.42 -0.012 0.016
2 Strategic planning -0.593 -0.381 -0.27 0.469 0.212
3 Customer and market focus 0.669 -0.239 0.239 0.171 -0.427
1999 4 Information and analysis 0.05 -0.491 -0.549 0.453 -0.106
5 Human resources focus -0.291 0.673 0.229 0.554 -0.114
6 Process management 0.743 -0.026 0.121 0.111 0.507
7 Business results 0.002 -0.55 0.592 0.287 -0.044
1 Leadership -0.658 -0.476 0.443 -0.01 0.033
2 Strategic planning -0.598 -0.377 -0.268 0.455 0.225
3 Customer and market focus 0.681 -0.225 0.26 0.16 -0.433
2001 4 Information and analysis 0.154 -0.49 -0.537 0.475 -0.176
5 Human resources focus -0.322 0.688 0.236 0.532 -0.086
6 Process management 0.76 -0.022 0.126 0.086 0.426
7 Business results -0.007 -0.533 0.581 0.277 0
1 Leadership -0.616 -0.454 0.504 -0.079 -0.025
2 Strategic plannig -0.621 -0.329 -0.274 0.4 0.232
3 Customer and market focus 0.681 -0.225 0.26 0.16 -0.433
2003 4 Measurement, analysis, and knowledge management 0.212 -0.498 -0.519 0.467 -0.279
5 Human resources focus -0.326 0.687 0.239 0.537 -0.088
6 Process management 0.841 0.03 0.041 -0.002 0.271
7 Business results 0.041 -0.537 0.633 0.191 0.006
1 Leadership is established. -0.606 0.036 0.369 -0.16 0.012
2 Strategic plan is established. -0.451 -0.202 -0.028 0.318 0.244
3 Customer and market is focused. 0.52 -0.287 0.221 0.208 -0.373
2001
4 Information is analyzed. -0.038 -0.228 -0.457 0.208 -0.351
(former)
5 Human resources is focused. -0.333 0.614 0.209 0.575 -0.06
6 Process management is established. 0.387 0.079 0.186 0.069 0.646
7 Business results is measured and evaluated. 0.032 -0.248 0.621 0.428 -0.122
188
Chapter 7 Proposal for TQM Introduction, Promotion and Implementation
TQM introduction, promotion and implementation of in the enterprise have been
contributing for improvement of management quqlity level. This chapter will propose
for standardized TQM introduction, promotion and implementation processes based on
business management that are justifying with Quality Award 11 Structural Factors in
Chaper 5, based on studying for TQM deploying history in Japan, and TQM Activities
and developing status in AISIN Co. Group (Koura [1]).
The main scheme is to study and identify for corresponding factors with “Status of
improvement on management quality level by TQM introduction, promotion and
implementation”, and Award Criteria Elements specified in Quality Award (example:
Deming Prize), then to isolate their common processing factors that are structured by 11
factors.
7.1 Introduction and promotion of TQM in enterprise and development of TQM in Japan
The cooperation between Industry, Government, and Academy sectors has
proceeded in the challenging process of the Deming Prize recipient enterprise during
about 50 years after 1950 as described in Chapter 1, and, meanwhile, various kinds of
management techniques were developed. Fig. 7.1(upper Column) is shown its process.
When the footprint of the enterprise that is recognized by the Deming Prize and growed
up steadily after prize is traced back, "Process of introduction, promotion, development,
and advancement of TQM" like this figure (lower Colomn) is found some common
observation to the content of the how to advance never-ending continuous TQM acheme
program. Such an example of the enterprise is found in TQM promotion process of
AISIN Co., Ltd. in Table 7.1 and contribution to the quality improvement is found in
"2.4: Multi time recipient enterprise", in "2.5: Social influence process of the Deming
Prize”, and TQM promotion of a related enterprise by GWQM as “2.5.2: Social influence
of Group-wide Quality Management (GWQM)” in Chapter 2.
The following are observed based on investigation and research result (Koura [2], [3]).
(1) As for the TQM promotion, great advancement of management level is
recognized in advancing process from the Deming Prize to JQM.
(2) It gradually becomes an adaptation to environment and external focus and the
TQM promotion at the management strategy level is recognized though the
object of the improvement of compny constitution is an internal system
construction, and efficiency improvement in the first step of the TQM
promotion.
(3) It contributes to the Crisis-management being possible to correspond to an
unexpected situation promptly when the system of the TQM promotion has
established it.
(4) It is recognized that recent program are tending to adoptation of "Vision
189
management" for the future and "Quality Company" as a direction of the future.
190
Fig. 7.1 Development of TQM in Japan and Introduction, Promotion and
Implementation of TQM in enterprise
191
Table 7.1 Progress of Management and TQM Activities in AISIN Co., Ltd.
192
During Step 0 to Step 2 stage, "Management Creed: Quality Supremacy" and
"Vision for 5 years" was established for "Harmonization in human-being and unifiation
of thinking" and a clear orienting was done.
193
Cost-up. The Construction of Constitution for which the profit can be secured even when
corresponding to prices up and decreasing production was necessary.
Therefore, the company policy in 1974/ 1975 was "Effective use of management
resources (person, material, and money) and Costs Down through effective daily work".
Management foundation that can correspond under the low growth was established
and financial constitution was converted from borrowed capital dependence type to
proprietorship capital type thus. Cross-Functional Audit Systems were introduced
under two pillar of V80 "Contribution to the Society" and "Qualitative Improvement" in
1976, and the establishment of Total Management System to aim at qualitative
enhancement was advanced.
Then, the Japan Quality Medal was presented on November 1977 by the following
mentioned jestification as TQC activities during next 5 years were remarkably
recognized their effects on comparing with Deming Prize recipient in 1972.
(1) Added value productivity are improved 2 times
(2) Remarkable reduction of market complaint cost
(3) Success on product planning to conform with customer demands as
high-lighting as sales point
(4) Leader of patent notification number in competive industry.
Middle term: 1978-1980, Aims at full conversion from Quantity oriented to Quality
Priority.
The improvement activities of company constitution for the V80 achievement
that reflected "Examination Commenting Document" was advanced after JQM had been
presented and was able to be established company constitution that V80 target was able
to be achieved by moving up one year. That is, it was an age that advanced the
establishment of “Identificatiion of present business fundamental management
elements”, “Establishment of overseas production and sales system”, and
“Establishment of quality assurance system to built quality into product at design
phase” was processing through. Moreover, it was age that TQC of All AISIN (Group
Wide QC) was stepped forward by one step with the Deming Prize recipent of AISIN
Warner Ltd. in 1977 and Deming Prize recipient of Takaoka Industrial Ltd. in 1980.
On the other hand, in the age when TPM that had been introduced in 1979 was
194
deployed, it is obtained effects as followed.
1982: PM excellent business shop prize recipient
1985: PM excellent business shop prize special prize recipient
As an integrated effect
(1) Quality and productivity have improved greatly.
(2) Z product was created by establishment of new technology related to energy etc.
The deployment of clear strategic TQC was started on the first time here and both
sales and ordinary income in every year after appreciation of the yen were been
195
improving steadily by promoting deployment that matched the vectors between
directors and divisions of all companies of “For commodity composition to an attractive
commodity development” and the prospect of achieving V92 was assured, and, in
addition, came to advance aiming at
V95 "It is a crowned excellent enterprise in the world"
as target.
It is shone to the honor of the JQM recipient again in 1991 in the above-mentioned
result.
“SCOPE21” deployment:
Although both sales turnover and ordinary profit were counted the highest in the
past in 1991 by effect of the total commodity strategy, it was threten by domestic
business status after burst of the economic bubble came to keep changed suddenly
and to stay low, feared appreciation of the yen, shifting production overseas, and
196
domestically-based companies' cavitation phenomenon, and achievement of V95 was
rather hard to accomplish. Accordinly it was auto-industrial structure change was
forcasted, and company-wide company constitution innovation activities “SCOP 21”
was deployed under long-term view.
The name of TQC was changed with TQM in June 1994. Then, the TQM promotion
plan to achieve "Appearance of the management activities that aimed for creating of
attractive enterprise" was planned and executed.
Meanwhile, the AISIN group enterprise has advanced as follows:.
1994: Koritsu Industrial Co. Ltd. was recognized Deming Prize
AISIN A・W Industrial Co. Ltd. was recognized Deming Prize
NT Techno Co. Ltd.was recognized Deming Prize,
AISIN Light Metals Co. Ltd. was recognized Japan Quality Medal
197
It was decided to achieve the above 4 points.
And, "CHARGE" was hung as energy and an action disciplines of one employee one
to revolute the current state.
The place in which it means it as follows,
Creative : in creative
Harmonious : in cooperative
Active : in active
Responsible : with responsible
Global : in worldwide view.
Energetic : with zeal and vitality
And after 1994, the Deming Prize and the Japan Quality Medal recipient
enterprise of AISIN groupthe were as follows,
1995: Toyo Precision Machine Co. Ltd. was recognized Deming Prize.
1996: AISIN Sinei Co., Ltd. was recognized Deming Prize.
1997: AISIN Machin Industry Co., Ltd. was recognized Deming Prize.
1998: AISIN A・W Precision Co., Ltd. was recognized Deming Prize.
.
Step 9: 1995-, Enterprise-creating toward future that is trusted and respected in world
Japan New Paper, “Nikkei Indutrial News” issued on October 30, 2003, reported
column “Special survey report on Major Executive Management, by mutual voting”;
“by Respectful Enterprise” and “Respectful Executive Management” in first page.
Under the “Enterprise” voting, Toyota Motor was voted as the first place in company
devision. Moreover, Toyota Motor is enumerated as "Respectful Company" that the
United States enterprise thinks by Mr. James MacNar, Chairman of board, and CEO,
Minnesota Mining & Mfg. (3M) in USA. And it was evaluated as "Respectful
company" and"Tough company", etc by the each top such as General Motor (GM), Ford
Motor, Volkswagens (VW), BMWs, Porsche, and Renault also in "Hear it from top of
Europe and America major car makers" of column of page 18 issues on October 31,
2003.
Those contents were introduced in the first page on 7 series reports as "Toyota
Way: Incomplete Revelations".
In the article of the 1st. Mr. Cho, President of Toyota described, to aim at
"Respectful Company" as for the global enterprise, and stated "Respect for All People
(Existence respected from people and region in the world)" in the creed that carved for
"Global Vision" (announcement in the spring of 2002) as an appearance from 2020 to
2030.
And in the article of the 6th on November 11, it is reported "Strong unity between
affiliated enterprises and Toyota Motor supported by the weight of the history would ot
198
be collapsed in short time" (Refer to p.44 and Para. 2.5.2 (J)) in "Affiliate that the try
one's skill with a follower of a different school forges”, and "Non-Toyota (sales excluding
Toyota Motor)” was DENSO 50 % and AISIN 30 % on the other hand. Mechanism
(Karakuri in Japan and Gimmick) that Toyota planned to forge the affiliate of
non-Toyota is explained Para. 2.5.2, (K), and (5) "It is encouraged to extend
independence by the self-help effort, that is, to develop new product, and to maintain
the product sales share delivered to the parent company by less than 50% of all sales”.
The Sub-chairman Mr. Hiroshi Okabe are describing this, "It is consequentially
connected with the profit of Toyota that repeat to try one's skill with a follower of a
different school and to improve competitive edge". In those situations, AISIN AW Co.,
Ltd. succeeded in the AW-Z project and developed first four-speed AT for FF in the world.
And, it received first order of "Parking assistance system" from German Daimler
Chrysler today. That is, AISIN Co., Ltd. also is walking on the same road
"Enterprise-creating toward the future that is trusted and respected in the world " as
Toyota Motor as a member of the group enterprise and GWQC (GWQM).
It is thought that it is a model as one of the vision and strategic managements that face
to the violent days of the future.
199
TQM (illustration)" as a common standard was prepared from Passage of TQM
activities of process of TQM development of Japan and AISIN Co., Ltd. and the
footprint of the Deming prize recipient enterprises and proposed reference of the
introduction and the promotion of TQM in the enterprise. This step may try the vision
management from the beginning rather than order by the one to show the level. It is
thought that it becomes reference of Self Assessment in the stage of the advancement
of its own TQM at the level such as Fig. 7.2.
The step of the introduction and the promotion was brought together as follows,
and it related it to 11 factors of Chapter 5 (Yoji Akao, Kozo Koura [5]).
Step 0: Motive and trigger (Leader philosophy)
Step 1: Preparation for TQM Introduction (Leader philosophy and management
responsibility)
Step 2: Construction of TQM Promotion System (Management responsibility and
human resources development)
Step 3: Establishment of Division Management System (Customer market and
process)
Step 4: Establishment of Total Management System (Customer and market,
cross-management, and information utilization)
Step 5: Enhancement and strengthening of Total Management System (Social
responsibility and partner)
Sstep 6: Establishment of Strategic TQM Systems (Strategic plan)
Step 7: Establishment of Vision Management System (Revolutionary innovation)
Step 8: Establishment of Global QM System (Revolutionary innovation)
Step 9: Enterprise-creating toward futur that is trusted and respected in the world
Note: It is necessary to introduce Revolutionary Innovation factor gradually
depending on degree of advancement after Step 4.
200
Fig. 7.2 Process of Introduction, Promotion, Development, and Advncement of TQM
(illustration)
201
Because TQM is company-wide activities, the president's decision is finally and
absolutely necessary. The presentation of the other companies case that succeeds by
TQM which invite its top managements, the senior management forum for the quality
management or the quality forums which are presenting for the case-study of other
companies or quality management case study with success, and the quality
management seminar for directors and the quality management seminar for
department manager and section chief course in this is necessary to participate in. It is
important to be understood by a familiar director at first and to form a top consensus.
Advancing the improvement activities to get over this recession enters easily most
because the quality control is disseminated in most manufacturing companies by the
spread of ISO etc. in some shape. In order to concentrate the vector in company, it is also
good to introduce the Policy Management first of all. Or, first introducing the quality
control aiming at the acquisition of the ISO 9000/14000 attestation, and shifting to
TQM in addition are also effective. Because the service relation industries are advanced
in the USA, the research of its case might be also effective.
It is effective for these preparation activities to mark the bench by the Deming
Prize recipient enterprise visit, and to receive the advice of TQM experts and/or senior
professional poeple.
202
The educations are organized by hierarchy (Operator, foreman, technical staff,
clerical staff, middle-management, ection chief, senior management, and the
director, etc.) by in-house or outside, for TQM concept, implementationnd each
responsibility to be shared in daily routine work. Depending on curriculum, some
are dispatched to the external seminar of the outside education facilities.
(4) Execution of TQM problem solving meeting at workshop
During problem solving in workshops, it is effective that the problem solving and
the subject achievement of workshop by the QC story (Problem Solving type and
Subject Achievement type) are advanced for the guidance of the TQM experts and
professional people in the case that it is recognized some sort of difficulties to solve
workshop problem, because it is the learning TQM steps from Step 2 to Step 5
though it is better to be advanced by own yourselves.
(5) Introduction of Daily Management
(6) Promotion of Standardization
(7) Introduction of QC Circle activities
(8) Shift to President TQM Diagnosis (President TQM Audit)
It is preferable to strengthen the basis of TQM System by the ISO 9000/ 14000
Certificatin etc. at this stage. QS 9000 (quality specification by big three) might be
also important requirement for exporting to USA in the enterprise related to auto
parts. Moreover, it is possible to apply the Recognition of TQM Achievement prior to
the Deming Prize application.
203
information management (IT; information technology) etc.
(6) Introduction of Division Manager TQM Diagnosis
It is a time to fully structure of TQM System, and also integration with ISO
9000/ 14000 would be necessary to consider.
204
Step 8: Establishment of Global QM System
(1) Establishment for Human and Environment friendly TQM
(2) Creation of Quality of Life oriented TQM
(3) Eatblishment TQM with global network
(4) Establishment of TQM with Glocalization (Globalization+Localization concept)
Step 9: “For the future”, “To build enterprise that is trusted and respected in the world”
It is said that the 21st century is called “the Quality Century”. After Second
World War, Japan had been struggling to wipe-out sloppy quality “Cheap and Bad”
notoriety that it had been necessary to be recognized as quality excellency of Japanese
product by world-widely, and then finally the quality have been beginning to be
accepted as “Good and Right Price” from the world on today, but again it is need to
struggle again how to sustain "Japan: Country founding on Quality " and stepping to
start on a journey to the future under the vision of "Enterprise trusted and respected in
the world". This is called "Quality Journy of Japanese Enterprise".
That is,
Step 3: Establishment of Division Management System--- acquisitation of ISO 9000
and ISO 14000 certification
This 3rd step goes out stage where ends all company education in Step 2, beginning
the turn the PDCA cycle of the Daily Management and proceeds standardization, and
has introduced the Policy Management (improvement activities) as a management
system in enterprise.
205
Fig. 7.3 The Evolution of Strategic Quality Management
206
The Quality Award is a greatly more wide-ranging management system than ISO
9000 if it sees from the factor structure analysis clarified in Chapter 5. It can be said
that the target that should be achieved is the same and it is in the relation of the inside
and outside (both side) means as Iizuka [6] advocates it, because ISO 9000 is a quality
system demand under the buyer's standpoint, and TQM aims at the establishment of
the quality system for attainment of Customer Satisfaction: CS and Customer Delight:
CD under the producer, on the other hand. Moreover, ISO 14000 is thought to be a
requirement of management system eatablishment based on the environmental quality,
and there is a lot of point to supplement the former standard. Therefore, it is no wonder
to present various papers for studying on integration of the both standards not only in
Japan but also in main each country like the paper of the ASQ Annual Conference etc.
Fig. 7.3 is the one paper presented at the EOQ Annual Congress that is explaining for
ISO 9000 is assumed to be one - step of the TQM achievement and the level of TQM is
put at the EQA level (Gisella Connca [7]).
That is,
Eventually, it is necessary to locate the relation between both from such a viewpoint.
As for such concern, it is found among ISO 14000 related papers like as integration with
TQM (Yoshizawa, Koura [8], Koura [9], and Syukuya, Ito, Tanaka, Kato, Koura [10]),
and it is considered about the improvement and the revolution of the business
management on quality strategy to achieve the National Quality Award after the
certification of two standards in the future.
207
7.4 Management at which TQM aims
When "Management at which TQM aims" at present is illustrated,
(1) Establishment of TQM systems with every members participation
(2) Implementation of concept of management and management by quality,
customer satisfaction, and environmental protection
(3) Establishment of management system (Daily Management, Policy
Management, and Cross-Business-Element Management)
(4) Establishment of Vision Management System
And it is became "Enterprise that is trusted and respected in the world".
Because these concept, system and how to advance it touched in the current each
chapter or next chapter, it is explained "Vision management management system" (Fig.
7.4) corresponding to the globalization age here (Vision Management in TQM Case
Study Committee [11]).
The structure of Fig. 7.4 has the concept of management and the development step
of the Vision Management.
208
The future
Development of Vision
Corporate principles
Business identity
Development of Strategy
Definition of business purpose, target, domain Setting of code of conduct
Reexamine hypothesis
Comprehensive evaluation of strategic analysis result
A type action
Change strategy
209
Management for Policy: Development and management and use of technique and
system needed for the Policy Management like all educations for Policy
Management promotion, system-creation, and the every member
participation methods (motivation and mobilization plans, etc.), etc.
A type action: It is the one that ”Adaptive Control” concept of Automatic controlling
Machne System was assumed to be Adaptive Management of policy as feed
back and action to the Management of Policy. Therefore, it is the objectives
pursuit type and designing approach. Contingency Plan contain in this.
S type action: Re-analysis of target and results and cause identification analysis of
unachievement are necessary for the policy management abnormality
treatment in the execution process of annual plan, and in reflection of the
achievement at the end of fiscal year and feed back action to policy and plan
for next year in the case of Management by Policy. An analytical approach of
by Statistical Method is important in the cause pursuit type. Therefore, S of
statistical was assumed to be taking S type action, and Statistical
Management was emphasized.
210
Table 7.2 Step of Vision Development
Step Execution matter Charge division Consideration matter
1 Study of the current developing process The top Decision of the top
of corporate principles, business culture, Management Grasp of its own
corporate culture, and enterprise Planning current state, intention,
Division problem, and
constitution
2 Study and the recognition of change in Directors Study
economy, market trend, etc. in the world Meeting
and enterpise environment (Economic
environment, social image and sense of
values: Society, customer, business
relation, and employee, etc.)
3 Study of innovation of significance of Directors Study
existence and business area of Meeting
enterprise
4 New conception and assumption of Directors Study
"State of existence" and "Condition it Meeting
want to be" in the future
5 Establishing of fundamental plan of Directors Study It brings it together in
vision Meeting the top down type.
① Significance of existence of Assistance
enterprise Management
② Enterprise principle planning
③ Corporate domain Division
④ Business objective
6 Decision of corporate vision Directors Study Declaration of the top
Decision of each vision mission value Meeting Commitment of
① Corporate principles Assistance infiltration plan to
② Business identity Management in-house
③ Business structural vision Planning It is preferable
④ Management function vision Division simultaneously to make
⑤ Social contribution vision the mission and the
⑥ Environmental contribution vision value with the vision.
⑦ Long-term numerical target
7 Decision of plan of long-term strategy Management
Planning
Division
Each division
211
When settling on by 2005 visions, AISIN Co., Ltd. holds the Directors Study
Meeting, and management vision "Global Enterprise for creating the future" was
brought together from “Corporate existense value" "Business Scope/ Boundary" and
"Business strategy and deployment" were sketched, and, in addition, "Future
world-wide economy and market trend" and "Shift of the sense of values in the society",
etc.
Then as for Vision, it is preferable to assign the mission for motivation to the
vision and unifying the corporate existense value in addition. And, the development of
the long-term numerical target based on this vision is advanced at the strategy
development stage. That is, after the purpose, the target, and the domain of each
business of the enterprise are defined, a strategic gap analysis and a strategic
assessment are done, and a basic strategy and a basic target are settled on in the long
strategic management plan after the comprehensive evaluation of the strategic analysis
result, the long strategic project and the business strategy are deployed.
The hierarchy of management strategy is devided as follows,
(a) Corporate strategy: Globalization, Group-wide, and structual conversion, etc.
(b) Business strategy: New product strategy, product diversification, and product
differentiation, etc.
(c) Cross-functional strategy: Sales strategy, development strategy, production
strategy, information warfare abbreviation, and personnel strategy, etc.
The role of the enterprise Ethics, Phirosophy (Business Philosophy), Vision, Mission
and Value is shown in Table 7.3 here.
Role of table, 7.3 Enterprise Ethics, Philosophy, Vision, Mission, and Vvalue
Ethics Pilosophy Vision Mission Value
Think about Think about Think about Think about Think about
society business tomorrow today existence
principle
Conformity of Respect of Dream of Mission of Existence of
justice purpose organization organization organization
Morality Management Criteria Attitude Value standard
standard standard (action)
standard
Human race Enteprise Transcending Fatal problem Social
universal original age relatiionship
Identifcation Keeping of Receiving Customer Respect
between right Consistency inspiration identification acquisition
and wrong
(in these days it is mentioned for enterprise ethics that it is shown as)
212
Reference document
213
Chapter 8 Cross-Functional Management and Cross-Management Factor
In this chapter, it is to clarify the feature and the effect of Cross-Organizational
Management activities (Cross-Functional Management activities or Cross-Business
Elemental Management) of Japan by Cross-Management Factor that is the original
structure factor of Deming Prize clarified in Chapter 5 based on Koura [1], that is used
for such as “DF 2 Product development and the business are reformed” and “DF 4 QCDS
management system”.
This chapter sets the following three research subjects, and investigates the
activitis of Deming Prize recipient enterprises.
"Management activities that develope the program about each business element
of quality, cost, and delivery date, etc. from standpoint of company-wide (Or,
Division-wide) functionally, executes through Daily Management and Policy
Management of each execution division, evaluates the execution result from
company-wid standpoint, and takes any necessary action" (Shin Miura, Noriaki Kano,
Yoshikazu Tsuda, Yasuo Ohashi [4]).
Various management functions are, for instance, as for quality assurance, cost and
profit management, and quantity and delivery date management, etc. and the one here
to manage according to crossing the division and total management (Horizontal
Management) is carried on to Division Management (Vertical Management) according
to management emphasis item which are chosen by function.
214
8.2.2 Necessity of Cross-Functional Management
Japan of 1960's entered the high-growth of Japanese economy, it became a
motorization age in the Auto industry, and the new car development competition
started.
Mr. Eiji Toyoda who was the vice president at that time talked as follows though
Toyota Motor introduced TQC in 1961.
『The first real full-fledged passenger car ”Crown” in Japan was put in the
market at the beginning of 1955 and recognized and extreme popularity was
accepted in the market and Toyota had expanded rapidly. But it was revealed
various problems at that time, it is said what it happenned. The improvement of
the quality has not advanced with balances to the improvement of efficiency
though the number of employees is twice, and production increases seven times.
The quality competition between enterprises of same industry has become
violent at the same time.
Then,
First, it was identified that top management was needed to issue own
commitment on Quality Objectives, and to desseminate throuout every
employees.
Second, it is necessary to organize the system being attempted for functional
cooperation between divisions (It came to be called, "Cooperation
between divisions" after) 』(Aoki [5]).
215
Cross-Functional Management being combined with Division Management according to
the by such an idea.
Though Toyota Motor researched “Functional Forman” by F.W. Taylor (Taylor [8]) in
USA, and "Technological function", "Commercial function", "Financial function",
"Maintenance function", "Accounting function", and "Controlling function" of 6 kinds of
business functions by H. Fayol (Furukawa [9]) in France etc. about function, and finally
based on "Practice of Management" of P. F. Drucker (Drucker [10]), his “Federal
Decentralization” and “Functional Decentralization” concept were adopted as “Line and
Staff” organizing structure, which were recognizing as Auto Industry were rather than
hard to organize Division System for only one product fabrication situation.(Mizuno
[11]). Then, the developed system was the one "The business allotment and the
objectives of each function are assigned to various line activities based on the function
division".
Toyota Motor assumed 13 functions in April 1962, 21 functions in May 1963 (Aoki
[5]), 6 functions in May 1974, and 10 functions in June 1989, (An General Planning is
included)(Suzuki [12]) repeating the trial and error for 30 years at the following.
216
responsible function (Functional Instruction Authority by the staff function). The
division manager were directly reporting to the president (Command Authority by line
functions). Each Cross-Function were managed by own Cross-Functional Management
Committee and the division concerned function were charged as a secretariat.
Function
Geneal Planning
Assurance
Quality
Cost Magt/
Mgt.
Administrative
Resources Mgt.
Human
General Planning
Affiliates
Organization
Product
Product
Sales Project
Project
(office and service)
Product
Design
Production QA Production
Product
(include inspection) Cost Mgt. Preparation
Design
Purchase
Division
Production Production
Purchase Preparation (include
inspection)
Sales
Human Resources & Administrative Management, etc. (shop,
service)
Design &
Project Production Mass Sales Customer
(Process) Trial
Preparation Production
Experiment
Fig. 8.1 Concept Chart of Functions under Company-wid Deployment (Toyota Motor, 1962)
217
The left side of Fig. 8.1 is Deming cyclel of the flow of the line function as called
"Process" (in lower portion), and which processes are surrunding by “General Planning”,
“Human Resources Management” and “Administrative Management” as service/
supporting function, and “Quality Assurance” and “Cost Management” are located in
the central area, which are shown the concept for business core is located in the center.
Project Engineering
Quality
Cost
Human
Resources,
Cross-Functional Management
Administrative
Commodity
Project
Production
Procurement
Sales
Overseas
Project
Housing
Industry
Division Management
218
The division principle of Fig. 8.1 and Fig.8.2
(1) General Planning as all company: General Planning, it is an important business
that takes up the Cross-Functional Management problem of all companies, and
propose the project and the installation of Cross-Functional Management
Committee in the Cross-Functioanal Management though it takes charge of the
long-term management planning and the investment, etc.
(2) The functions on Quality Assurance and Cost Management etc. for decision of goal
and responsibility to achieve as for all company.
(3) Line Functions from product planning and product design to sales.
(4) Stuff Functiion to service and support for the above by Human Resouces
Management and Administrative Management Function, etc.
And, holizontal management of (2) and (4) are organized for “Cross-Functional
Management” and vertical management of (3) is organized for “Division Management”.
219
cross-functionaly with TQM by board of directors.
President
Fig. 8.3 Simple Organization: 1985 Deming Prize SME Prize Recipient
(Uchino Construction Ccompany)
220
Board of Directors
President
Managing
Committee
TQM
Xx Headquarters
Cross-Functional Management
Standardization Com.
Com.
Suggestion
Committee
comm..
Quality
Comm.
Subcontruct
Development Comm.
Trchnological
Promotion
System
Assurance
Mgt,
Branch-office
General manager Xx Branch TQM Promotion Committee Committee
Standardization
System Com.
Suggestion
Cross-Functional Management
Hazama-gumi (construction
Committee
Quality Assurance
Committee
Sales Management
Committee
Profit Management
industry):
1986 Deming Prize Prize recipient
Pattern: Shimizu Construction,
Kajima Corporation, Fuji Electric
Co., Ltd. Matsumoto factory
Fig. 8.4 (a) Ordinary organization
In addition, Komatsu has the Function Center Liason Meeting and working team (Fig.
8.4 (b)).
For instance, the Quality Assurance Function Committee is composed with directors,
and the discussion theme is submitted after it discusses it enough beforehand in the
Function Center Leason Meeting. The Function Center Liason Meeting is composed
with Function Center (secretariat) and Working Team. (Working Team is thought
Cross-Functional Team: CFT today.)
221
For example, a Worjing Team of Quality Assurance System problem were
organized by a Director of Quality Assurance, seated as a chief of team, managers or
stuffs in Technical Management Department, Production Engineering Department,
Domestic Service Department, Overseas Service Department, Factories and Affiliates
Companies, Quality Assurance Department and Function Center as secretaries of team.
It is working if there is an activity theme.
President
Board of
Vice President
Managing
Directors
TQM promotion committee
Cross-Functional Committee
Instruction
propose
Problem
Function Committee
Quality
Function Committee
Amount
Function Committee
Profit
Committee
Business
Industrial
Management
management
Assurance
Function
Function Center
Machin
Liason Assembly
Instruction Cordination
and report & Advice
Department
Sales
division
Manufacturing
Development
Department
Management
and
222
(C) Highly Developed Organization
This organization form is established in Toyota Motor, and applied to a Toyota
Group enterprise widely.
The organization of Toyota Auto Body Co., Ltd. of Fig. 8.5 (a) was shown as an
example when various functions of Q・C・D・M are extended to pass holizontally through
each step of product planning, design, trial manufacturing, production preparation,
mass production, and sales and services, and it tried to do consistent management in
the case like the assembly industry without the Division System.
223
Fig.8.5 (a) Highly Developed Organization
224
Fig. 8.5 (b) Highly Developed Organization
225
8.3.2 Role and Duty of Cross-Functional Management Committee
The main duty of the Cross-Functional Managment Committee is improvement,
management, establishment of Cross-Functional Management System like Quality,
Cost/ Profit, and Quantity/ Delivery Date, etc., and the problem of accompanying this
also is took up and promoted the improvement.
(1) Improvement and management of Cross-Functional Management System
(2) Discussion on basic policy and organization by Cross-Functions
(3) Plan and promotion of long term and annual plan of Cross-Functional
Management
(4) Promotion of solution of important problem on Cross-Functional Management
(5) Discussion and coordination of cooperative issue with another function
(6) Company-wide horizontal deployment of result on Cross-Functional Management
(7) Plan and execution of Cross-Functional diagnosis
226
Cross-Functional Management Committee is excuting chiefly company-wide policy,
coordination, and diagnosis.
Especially, the Cross-Functional Management Working Team is attached
importance recently, and its activity is expected a center role of the Cross-Functional
Management promotion. Because this solves a cross-functional specific problem in a
kind of a project team and QC Team, it is organized with manager and staff of a
related each division. It is called CFT (Cross-Functional Team) in general today.
8.3.5 Secretariats
The TQC promotion committee secretariat usually takes charge of the general
secretariat, and the superintendence division of the function (It is called the
cross-functional division) takes charge of the secretariat like accounting and financial
divisions correspond to secretary of cost and profit management.
In Toyota Motor, the entire secretariat is General Planning Office in Fig. 8.1, and Fig.
8. 2, and is taking charge of the most important business to which this office takes
charge of extraction of the problem function and establishment of new
cross-functional committee.
8.4.1 Preconditions
As for the introduction of the Cross-Functional Management, it is better that
Division Management, Daily Management and Policy Management are introduced,
when it gets on the right track, and the coordinated problem between divisions of
organization and system stands out in relief. And, all member educations are
necessary from top management to managers and section chiefs in every department
over all companies.
227
(1) All mutual agreement is obtained “All company formation is arranged as
system-design by thinking only pure function without prejudicing to current
organization structure”.
(2) The method of evaluating the purpose and the result of each function is
established. It obtains consensus about various activities necessary for target
achievement.
(3) Various activities necessary for existing organizational constitution for target
achievement are allocated. The organization change is done when is necessary.
(4) A top decision making mechanism is renewed to the functional one as much as
possible.
228
company-wide system of the management critical item with if necessary by setting up
the Cross-Functional Management Working Team as subsystem.
As for Quality Assurance case study, the following example are presented:
(1) Determination for Controlling Process, process division, and control purpose.
Fig. 8.6 is the examples for identification of process in the Quality Assurance
Function of Toyota Motor (Mizuno [13]).
Quality of
Inspection
(Control Qualiy Quality certified Customer
Acceptance Level
Purpose) Objectives Standard Level Satisfaction
Manufacturing
Preparation
Production
Inspection
Service
Project
Design
Sales
(Management Qualiy of Quality of Quality of Quality of Quality Quality of
Table 8.1 Quality Assurance Activities Table (example of Toyota Motor) (Aoki [5])
Step Assurance Work of Person in Division Main
(Process) Item Assurance charge For Relation Remarks
Assurance Assurance Reguration
229
It is understood that the composition of the content of the Management Activities
Table from Table 8.1 follows the allocation by method of 5W1H as the Table 8.2.
(5) Clarification of matter and decision procedure that should be decided in president
or board of directors
(6) Enactment of Cross-Functional Management ReguLation (for instance, Quality
Assurance ReguLation)
(7) Collation and adjustment of paragraph (6) with Job Description
(8) Additionally, addition of important staff function
(9) Maintenance and establishment of important subsystem
230
Organization Function Quality Assurance Activities Quality Information Regulation related
Decision of Project.
Purchase. Mangement
Acceptance Regulation.
Study. Regulation.
Intermediate Factory
Inspection. Experiment
Sales. Warehouse.
Branch and Office. Quality Public Quality Sales and Sales and Service
231
And, if it is company-wide problem, "Cross-functional problem" is took up,
"Cross-functional target and means" is planned and is advanced by "Policy Management
System" as described in Para. 8.4.3 though it solves the problem by QC Circle activities
between Preceding Process and Succeeding Process, that is, "Joint QC Circle (It is an
activity between factories also)" if it is a level of the cross-functional problem that can be
solved in the workshop.
For instance, "All items of expenses that can be managed" is arranged by relation
with Financial Department as cost and of cross-functional summary post, related to the
Periodic Profit and Loss Plan, subdivided to the necessary amount for a product unit
level in variable costs and fixed costs, shown as a special share cost according to the
division and an improvement target, and deployed as management according to division
and according to the expense items by "Cost Management Matrix" like the cost
improvement of Toyota Auto Body Co., Ltd. (Kurogane [14]). In addition, these are
arranged and deployed basic targets, function targets, step targets, division targets by
"Cost Function Tree Diagram" based on the Policy Management System, and one by one
deployed by two X type matrixes of "Cross-functional target item, cross-functional
execution item, and step target and step execution matter" and "Step target item, step
execution matter, and division target item and demand items to each division". "Target
Goal and execution matter of division target item" is settled on in each division at the
end.
232
organization is called “Vertical Management”, and the management by holizontal
organization excuted in cooperation between each division is called "Holizontal
Management" and call "Cross-Departmental Management" or "Cross-Qrganizational
Management" generically here. It divides into three according to the Cross-Functional
Management (Cross-Business Element Management is the development form), SBU
management (SBU: Strategic Business Unit) and Project Management of Table 8.3
(Mochimoto [16], Kogure [19]) in that.
Organization Organization
Task Force Task Force for it in order to specific problem like R&D, set up regular
Organization QC Team production, business and quality issue, etc. is solved sometime.
233
department become secretariat though management form is object of Q (Quality), C
(Cost/ Profit), and D (Quantity/ Delivery Date) as main functions. This committee
selects, adopts company-wide cross-functional problems, and establish the
cross-functional improvement plan. The execution of the content is by line department.
And, the execution result is checked by the report from the line and the
cross-functional diagnosis (audit). Moreover, the installation of a necessary
cross-functional committee is planned in General Planning Office that is under
immediate control by top. Cross-Functional Team (CFT) is organized and deals for the
cross division problem at each committee.
The project executive (project manager) is specifically ssigned till being solved the
Problem and finished, after that, dissolved that temporary based team activity (JSQC,
Policy Management Case Study Committee [18]).
234
deeply related, and ○ is related in the table.
235
(3) Do not think that Division Management is useless though Cross-Functional
Management oriented is good. Division Management is a base.
(5) Cross-Functional Management is regular activities, and Cross-Functional
Committee is regular organization.
236
(6) In the Cross-Functional Management activity, mutual overlap cooperation (It is
called “Reaching Out”) between divisions to the problem of causing from the fault
of wall between divisions is necessary. (explain after in Para. 8.7.7)
(7) The cross-functional president diagnosis, the committee diagnosis or the check
together of Management Item is executed.
(8) Establish the information system where Cross-Functional Management
information can be collected from each line department as part of the Daily
Management.
8.7.6 Standardization
The Cross-Functional Management executes the cooperation between divisions
for company-wide management function efficiency, and the following problems exist,
too.
(1) The decision with the authority to apply in all companies is necessary.
(2) There are a lot of procedures of regulations and standards conventionally prepared
according to the division so far. Therefore, a concrete content should be reviewed
it from the viewpoint of Cross-Functional Management by concept of 5W1H.
(3) 5W1H and concrete content is not shown only by it though the Management
System Chart (for instance, Quality Assurance System Chart) is prepared and
the problem of the system standardization is isolated. Therefore, preparation of
"Cross-Functional Management Activity Table" is needed.
(4) There is no something that the cross-functional business job corresponding to this
237
is clarified though the business jobs according to the division is provided by the
Job Description Regulations etc.
(5) The method of the diagnosis and check on the Cross-Functional Management like
the evaluation of the business quality level etc. that Cross-Functional
Management is executed like regulations and standard, and whether the system
acts well is checked etc. has not been established.
"Standardization of Mechanism" is necessary in order to solve these problems,
and therefore, the main relational regulation columns is regulated in the
Cross-Functional Management Activities Table, and the column where the main
relational regulations corresponding to the Cross-Functional Management activity are
specified is installed in the Cross-Functional Management System Chart.
When it is bad
Mr. A Mr. B
- When it is good
Mr. A Mr. B
Overlap
238
(4) The management by “A” type action (Adaptive Action) in "Management of Policy"
of the Strategic Policy Management System is corresponded for environment.
AISIN Co., Ltd. in the preceding chapter assumes vision "Global business that
creates the future" getting over the Doll Shock, Oil Shock, appreciation of the yen,
and collapse of the economic bubble because it has "Vision Management System"
that goes a step beyond the Strategic Policy Management.
(1) The implementation of the Quality Assurance System etc. is described in the
lecture summary even if the term of Cross-Functional Management is not used, and
to contribute to the improvement of compny constitution of the enterprise in
"Integrated Effects" obviously.
(2) The one to describe Cross-Functional Management promotion clearly over each
Chapters.
239
After 1960's, most of the Deming Prize recipient enterprise introduces
Cross-Functional management and all 100% excute it at each age excluding 95% of
the later half of 1970's.
% of QCD function
100%
90%
80%
70%
60%
50% 100%
87%
40% 71%
77%
71%
% of QCD
30% 57% 60% function
20%
10%
0% 0%
First
0%
Later First Later First Later First Later Only
half half half half half half half half in
1991
1950's 1960's 1970's 1980's 1990's
240
(B) Classification of Cross-Function
Cross-Ffunction are classified into main function and auxiliary function, which
summarized as shown in Tables 8.5, by categories with excution rate % from 105
companies (1960-1990).
Table 8.5 Execution Rate of each Function in Deming Prize Recipient (1960 - 1990)
Number of Execution
Division Function Name of similar function
enterprise rate
Quality
Quality control and quality improvement 102 97.1
assurance
Cost Profit management, cost reduction,
75 71.4
management expense control
Production quantity management, delivery
Main date management, production
Quantity
function management, work term management, 59 56.2
management
construction synthesis management*, work
office management
Human
resources Human resources development, morale 11 10.5
management
New product control, precedency
New product development, technological development,
32 30.5
development research and development management,
product management
Retail Order receiving activity management,
27 25.7
management business activity management
Purchase Subcontract management, supplier
17 16.2
control management, cooperation trader promotion
Support
Complaint prevention management, safety
function Safety control 15 14.3
and health management
Environmental
Antipollution policy and measures 8 7.6
protection
Equipment QA, TPM, facility management,
Equipment
equipment development, equipment 6 5.7
control
maintenance
Information
Clerical management, information system 3 2.8
management
Number of Deming Prize recipient enterprises 105 ー
*The construction synthesis management was the overall care of works of quality assurance
(Q), cost management (C), term of works management (D), and safety control (S) in the
construction industry, and it used first in The Shimizu Construction (1983) and
241
Management (10.5)
Auxiliary function: New Product Development (30.5), Sales Management (25.7),
Purchase Control (16.2), Safety and Healthcare Management (14.3) 、
Environmental Protection (7.6), Equipment Control (5.7), and Information
Management (2.8)
The enterprise took as both functions of the Nnew Product Development and Sales
Management category were began to excute in the latter half of 1970's increased, and
Environmental Protection function came to be raised as environmental problems
closed up in society.
I want to wait whether for the Information Management in the future to be taken
up by the information technology's developing and the analysis in 1990's.
Table 8.8 are various functions of, that is, Cost and Profit Management, Quantity
and Delivery Date Management, New Product Development, Sales Management, and
Safety and Healthcare Management excluding Common and Quality Assurance.
In Table 8.9, the common and big problem is "Coordinated play between divisions
is bad" (Cooperation between divisions is weak) to various managements. This is said
that business management in the future should be appreciated more than "Speed" and
"Timing" so to speak, time factors are important.
242
Table 8.6 Transition Table of each Functional Division by age
243
Table 8.7 Problems before Introduction of Cross-Functional Managment
244
Table 8.8 Problems before Introduction of Cross-Functional Managment
245
Table 8.9 Main Problem before Introduction of Cross-Functional Management (1960-1990), 102 companies
Division Step Problem
Common Cooperation between divisions is weak. 30
All company quality assurance system corresponding to the market
General 17
and the customer needs is incomplete.
Grasp of demanded quality, collection of market quality information is
Project 25
insufficient .
Design/ trial Outflow of problem of design and experimental stage to post-process 16
Production Outflow of problem of production preparation stage to post-process 20
Quality There are a lot of defective in processes. 22
assurance Defective unprevention and recorrance prevention activity that holds
20
Manufacturing factor system is insufficient.
Quality assurance is an inspection oriented principle. 18
Built-in quality in process is weak. 16
There are a lot of complaints and a quality troubles. 26
Sales service There are a lot of emergency measures, and claim management's
16
correspondence is slow.
Management system Cost project is insufficient. 14
Cost/ profit
Scientific all company profits and cost improvement activities are
management Improvement activity 14
insufficient.
Amount/ Production plan
Lloss by the process complication increases. 11
delivery date process organization
management Stock Amount of stock increases. 11
Project power and
Advanced technology shortage corresponding to new field 17
technology
New product Product strategy and Search, collection, and report of product planning information like
15
development information gathering market, customer, and technology, etc. are insufficient.
Development period Outflow of problem of project and development stage to post-process
15
and prior study by insufficiencyof prior measures
Collection, analysis, and use of market and customer information are
Retail Use of information 13
insufficient.
management
Business posture Mid/long-term business strategy is lacked. 11
Safety/ Safety healthcare management activity and system are insufficient. 6
healthcare
management There are a lot of industrial injuries. 4
The figure of each column is a problem number. Because the cooperation between divisions
Remarks
appeared at each division, they are put in "Common".
246
Table 8.12 Main Effects after Introduction of Cross-Functional Management (1960-1990) 102 companies
Division Step Effect
Common Cooperation between divisions was strengthened. 53
Idea and consideration of market in, quality first and quality assurance 30
Quality assurance system was maintained. 25
General Mutual trust with customer has become strong. 15
Improvement of product quality and strengthening ofquality leadership 15
Standardization concerning quality assurance has advanced. 15
Design making
Quality for trial Trouble numbe decrease in post-process by design factor 18
assurance purposes
Purchase and
Decrease of delivery inspection failure rate (defective rate) 22
subcontract
Decrease of defective in process and defective loss 37
Manufacturing
Maintenance of process control system 15
Decrease of complaint and customer trouble 45
Sales service
Improvement of customer satisfaction degree 15
Management Improvement of management and improvement consideration of profit
16
Profit/cost consideration and cost
management Improvement Profit and cost improvement activity are persisted and have been
14
activity activated.
Amount and Sales and
delivery amount of Stock amount decrease and running out of stock rate decrease 18
date stock
management Productivity Improvement of productivity 17
New product Expansion of new product and improvement of new product sales 37
Achievement
development Increase in new product development number 25
Achievement Increase in sales, number of products, and number of customers 24
Retail
Business
management It came to be able to do sales activity of data/process oriented. 9
posture
Management Safety healthcare accident none 4
for safety Strengthening of safety and healthcare management system 3
The figure of each column is an effect number. Because the cooperation between divisions
Remarks
appeared at each division, they are put in "Commonness".
(1) Cross-Functional decision making and execution like Quality Assurance, Cost/
Profit Management, and Quantity/ Delivery Date Management, etc. become
prompt, and company-wide management is smooth and activated.
(2) Cross-Functional Management consciousness disseminates to the front-line
workshop level, comunication and ooperation between divisions are improved, and
human relation is improved.
(3) The number of the department and section need not be so increased because the
problem is examined cross-functionaly.
247
Table 8.10 Effects after Introduction of Cross-Functional Management
248
Table 8.11 Effects after Introduction of Cross-Functional Management
249
(4) It becomes easy for the Bottom up proposal from the hierarchy below managers to
go out.
(5) The director seems to be executives and it comes to cooperate and mutually
support by company-wide broad and flexible view not division profit
representative
8.9 Consideration
In this chapter, the frame of consideration from the investigation and research of
the introduction and promotion and excution situation of Cross-Functional
Management of the Deming Prize recipient was described. It is necessary to become
seem natural in the every employee’s consideration and activity in daily routine work to
achieve customer satisfaction truly. The Cross-Functional Management problem always
exists by the change of the social environment and the advancement of the technology,
and it is necessary to continue the Cross-Functional Management activity.
Here is the fact how the Toyota Motor stands based on, nothing but Cross-Functional
Management concept recognition, and was especially introduced in 1963.
250
For instance, the relation among ISO 9000/ 14000, Responsible Care, and TQM
activity is integrated by using QFD etc., and the management system with a high
potential perfection was developed (Shikuya, Ito, Tanaka, Kato, Koura [28], Koura
[29], [30], Yoshizawa, Koura [31]).
(3) It is necessary that the Cross-Functional Management concept is considered by not
only management but every employees within own mind and should excute
naturally in the daily work activity under “Do common things in a common way”.
Such a state is called "Learned Skill, Acquired State".
(4) The Cross-Functional Management contributes to the improvement of compny
constitution and the management efficiency improvement of the enterprise.
About this respect, "Administrative Cross-Function Innovation" is proposed that
aimed at "To structure for nimble, mobility overflows brilliantly, flexible and tough
constitution in enterprise" (Ono [32]).
I want to wait the research in the future for consideration faced to the 21st century
from 1990's.
251
Reference
252
23. Masao Kigure: Cross-Functional Management, Quality Control, Vol.37 November
temporary extra number, pp.253-259, November 1986
20.Yoji Akao: Organization and Management in Total Quality Control,, Organizational
Science Vol.14, No.3, pp.42-50, Maruzen, 1982
21. Hiroitsu Noda, Tadayuki Tetsuhashi: Cross-Functional Management in Production
Management, Quality, Vol.14, No.4, pp.77-85, October 1984
22. Shigeru Aoki: Cross-Functional Management as Top Management (3) - The
Concept and Practice of Management in Toyota Motor Co., Ltd. - April, Quality
Control, Vol.32, No.4, p.65-69, April 1981.
23. Eizaburo Nishibori: Nishibori Style New Product Development, p.52, Japanese
Standards Association, October 1979
24. Kozo Koura: Analysis of Deming Prize Recipient Enterprise: Importance of Policy
Management and Cross-Functional Management in TQC (2) - the 15th
Investigation Research Report concerning Total Quality Control - Japanese Society
for Quality Control, the 43th Conference for Research Papers, Research
Announcement Summary, pp.24-27, May 1993
25. Kozo Koura: Genealogy of Vision Management in TQM (4) - Chapter 3 Policy
Management and Cross-Functional Management (Part 2)- Asahi University,
Academy of Business Administration, Asahi Business Review, Vol. 14, No. 1,
pp.77-96, June 1999
26. Deming Prize Committee: Deming Prize Recipient Report Lecture Summary, Union
of Japanese Science and Engineers, 1960 - 1990
27. Noriaki, Kano and Kozo Koura: Development of Quality Control Seen Through
Companies Awarded the Deming Prize, Reports of Statistical Application
Research, Union of Japanese Scientists and Engineers, Vol.37, No.1,2, pp.79-105,
December 1991
28. Masao Shykuya, Kozo Koura, Yusuke Ito, Naoki Tanaka, Yasuharu Kato:
Investigation and Research on Integration of ISO 9000/14000/Responsible Care and
TQM - Kashima factory of Dainippon Ink And Chemicals, Incorporated industrial
Ltd. as an example -, Japanese Society for Quality Control, 61th Conference for
Research Papers, Rresearch Announcement Summary, pp.21-24, May 1999.
29. Kozo Koura:, How to set up In-house Standardization Plan, Taxation Business
Accounting Society, pp.70-71, March 1985
30. Norihiro Jisai edit: "Global environment and corporate activity", Kozo Koura:
Chapter 3 Environmental management and TQM; Asahi Universsity, Industrial
Information Laboratory, Library 3, pp.57-88, October 1998
31. Yoichi Kaya supervision, Tadashi Yoshizawa edit: ISO 14000 Environmental
Management Handbook, Tadashi Yoshizawa, Kozo Koura: Part 7,
Environmental Management and TQM, Chapter 1; Basic Idea of TQM and
Environmental Management, pp.997-1013, Japanese Standards Association,
253
September 1999
32. Michiteru Ono: Japanese Society for Quality Control, "Cross-functional Deployment
Study Committee" Final Report, "Administrative Cross-Functional Innovation",
Quality, Vol.25, No.4, pp.67-74, October 1995
254
Chapter 9 Conclusion and Proposal of new Quality Award
In this academic dissertation, it is to identify that the specific features, and role
Quality Award on TQM of introduction, promotion and excution in Japanese Industries
and to present summury in briefing form. It is to put a conclusion to my thesis, by
proposal for the stand of future Quality Award and installation of an International
Quality Award with Mr. Masao Nemoto (Nemoto, Koura [1]).
" The United States Malcolm Baldrige Award thoroughly examine Organization's
Total Quality and Business Excellence by severe and detailed examination. And, a
detailed lists about areas of strength and opportunityes for improvement to seven basic
categories and an integrated opinion concerning Organization Maturity is offered.
However, it is intentionally avoided to offer prescription. The advantageousness will
increase further if the process of offering this prescription is applied.”
And then, the 12 Step Examination- Diagnosis - Prescription Process (12 EDP
Process) is proposed.
255
Table 9.1 Summary of Comarison Analysis of Quality Awards
256
(B) Governance and Ethics
(1) Governnance
(a) System of management and controls for stewardship
(b) Owners, directors, CEO
(c) Ensure: accountability, transparency, fair tretment
(d) Trust and effectiveness
(2) Organizational Profile
(a) Governance system, reporting relationship
(3) Category 1 Leadership
(a) Key aspects of governance: management and fiscal accountability, audit
independence, fair treatment
(b) Review performance of senior leaders
(c) Ensure legal and ethical behavior
(d) Processes and measures
(4) Category 2 Strategic Planning
(a) Address social and ethical risks
(5) Category 5 Human Resources Focus
(a) Ethics training
(6) Category 7 Business Results
(a) Governance and social responsibility results: fiscal accountability, ethical
behavior and trust, compliance, support of key communities
(b) To which criteria are you most attentive in your business decision-making?:
① Pragmatic (business consequences) 17%
② Altruistic (impact on other/relationships) 14%
③ Idealistic (values and principles) 60%
④ Individualistic (impact on me) 8%
Ethics Resouce Center, January 2003
257
(a) Processes that benefit customers and business
(b) Involve majority of employees
(c) Generate products, services, and business results
(2) Organizationl Profile
(a) Roleof suppliers and partners
(3) Category 2 Strategic Plannig
(a) Process for sustaining changes
(4) Category 6 Process Management (Business)
(a) Two Items: Value Creation Processes and Support Processes
(b) Parallel Structure
(c) Think about Value Creation
(d) Processes Benefit from Tools for Improvement:
Lean, six sigma, and ISO 9000
The above-mentioned revision were not adopt the concept of Diagnosis of Kresky but
the following respects were revised
(1) The “Factor Structure” is transferring from “Management Quality Improvement
Focus” till 2001 in Chapter 5 to “Management Quality Focus Enterprise
Citizenship” by referring Chapter 6. That is, Enterprise ethics (Ethics) that was
said to EQA and not being written in MBNQA clearly was clearly proposed and
not only having materialized but also the concept of Corporate Governance was
clarified. These adoptions were important revisions (change) that were important
as Corporate Social Responsibility: CSR, and range to Dignity of this law though
it is result of questionnaire of idealism.
(2) The Knowledge Management was adopted, Value Creation was emphasized, and
these were put in each item of the Process Management Category.
258
(3) Especially, it was emphasized, "The Malcolm Baldrige National Quality Award
criteria is a system".
(4) The point to emphasize Evidence-Based-Management is thought to have taken
the concept of Evidece Based Medicine in the health care by developing the
concept of management by the fact (Fact Control).
(5) It could be recommendable for following stated quality tools to implement during
processing of “Processes Benefit from Tools for Improvement”;
At Production stage: Lean, Six Sigma and ISO 9000 as Value Creation method
were explained but it is thought better to consider introduction about;
At New Product Development stage:
For Qulity related Side - Kano Method (Attractive Quality), Tagudhi Method and
QFD (Qulity Function Deployment),
For Cost related Side - Design to Cost (Design-in).
Traditional Managemnt
Process (ISO)
Customer
People
Society
Cultural
259
That is, ISO proposed the process focus from traditional management, and the idea
develop like as customer focus, people focus, and social focus afterwards, and the EQA
arrived at culture (Corporate Culture) and the system of belief. And the criteria items of
"Corporate Governance" and "Ethical Behavior" having been added in the change of the
MBNQA in 2003 is heading to same direction with the conceptd of the EQA.
(B) The examination by judges under Deming Prize was quite different from the today’s
Self-Assessment.
The Deming Prize examination is rather than functioning for education and
training of people with joint mutual development program in the company that
develops for the concept and the methodology of TQM and implement at
operation site.
As for the Deming Prize examination process, two stages are considered.
260
First stage: It reports by the TQM implementation status report in the initiation
of the applicant enterprise side (called A schedule: Emphasis
explanation and site visit explanation by company based schedule).
Second stage: Examination to all divisions verified by initiating judges side
(called B schedule: Site survey by judges’ chois).
The judge clarifies an executable TQM model appropriate to not general TQM but
the enterprise by this examination report writer process. The applicant enterprise
that accepts this report researches the TQM model shown from the judge, selects
the demand and proposal, and takes it to the business.
261
Table 9.2 Comparison of Leaderships between Traditional and TQM
Leadership as traditional value Desirable Leadership as TQM
Push Guide
Teach Inquie
Speech, Statement Show by behavior
Flexible Steady, Consistent
The comparison with the value of the self-assessment and TQM is shown as Table 9.3,
when studying like this.
(D) Conclusion
(1) The key for the value of the Quality Award is solely depending on the judge. It is
controlled by the quality of the judge who has ability - knowledge and wisdom -
to form appropriate TQM to the applicant enterprise.
(2) Raison d'etres of the Quality Award is solely depending upon availability of such
262
qualified judge, sustaining of good business report by TQM implementation,
and following of the procession of the enterprise that continues a considerable
leap.
(2) The given Award is not a source of the authority, but the source of the authority
of the Quality Award is solely depending upon the continuousness of enterprise
effort to improve the enterprise by TQM and the ability of the judge member who
guides the enterprise to create the excellence.』
263
of joint collaboration work beween Industrial sector and Academic profession because it
was grass-roots democratic activity in Japan. Moreove, JQA influence to establish the
Management Quality Award in prefectures in Japan now.
(D) Management
Deming Prize + JQM has the methodology on the execution side, is diagnostic
and is management of offering the prescription, though the MBNQA is audits near field
management side, and stops the feed back on the prescription to the recipient
enterprise only to the area of strength and weakness (oppotunityes for improvement)
intentionally. Moreover, the MBNQA uses Self-Assessment together.
264
Fig. 9.2 Framework of Deming Prize Criterion
265
It was President TQM Diagnosis in Deming Prize + JQM that was thought
corresponding to this, and this was a feature of Japan. Though self-assessment are
carried by educated self-assessment examiners, this education is given to even
executives in Canada. (Depend on the offer material from Ms. Margaret Strus:
President, the Strus & Associates Inc.). If this is operated well, it could be applicable as
same as Japanese President TQM Diagnosis.
Because both of the quality awards are fiscal year award, application can be done
even how many times. The Solectron Corporation (1991 recipient) that recieved six
years later the second (1997) is assumed the reason of "Correspond to the change in the
age" is this respect in the MBNQA. There is similarly for the Deming Prize that
acquires the application qualification for JQM in addition in five years. Because JQM is
examined from the Deming Prize level by a higher acceptable level, the enterprise that
challenges this should reach the management level of a more advanced high level.
Therefore, the lecturer guidance will enter deep in the enterprise though the lecturer
guidance of Deming Prize + JQM enumerated the results of the academic-industrial
cooperation. The “Question and Answer” will be still repeated though the judge of
Deming Prize + JQM is done by lecturers other than the guidance lecturer.
『Moreover, the security of companies by the Baldrige committee does not appear to be
as rigorous as that of the JUSE committee; otherwise, it is unlikely that IBM, which
with-draw its Japanese subsidiary from the race for the Deming Prize precisely because
of the level of disclosure required by JUSE, would twice have been willing to subject
itself to the security of the Baldrige examination.』(Author note: IBM was MBNQA
266
recipient in 1990).
The maximum one of true value of the Quality Award is the growth of enterprise,
and the contribution to customer and society by progresses and continuance of the TQM
promotion, implementation, improvement, and development of the recipient enterprise,
after the quality award is received. The MBNQA is that the re-application after six
years is possible, and the idea of JQM receiving application qualification generation of
five years after the Deming Prize is recieved also wishes it. It is no an easy task for the
enterprise, and the adamant will and decision is necessary.
In this respect Deming Prize, there is multi time recipient enterprise group named
ten years - 20 years of the TQM promotion like as AISIN Co., Ltd. of recipient of the
Deming Prize in 1972, the JQM in 1977, 1990, and AISIN AW Co., of recipient of the
Deming Prize in 1977, JQM in 1982, 1991.
As for MBNQA concerns same situation are observed, it is called “Quality Journey”
or “Journey to Performance Excellence” (From the 10th Quest for Excellence conference
session name in fiscal year 1997), and it is described as “The Baldrige National Quality
Program is an Education Program”. (Ditto, Education and Health Care Criteria Special
Session Material). Moreover, Mr. Koiti Nishimura, president of Solectron Corporation,
recipient of MBNQA in 1997 talked about the MBNQA twice recipient in 1997 and 1991
as “To begin with, the purpose was not to have taken the award. It was an aim to receive
the consulting by applying free of charge, and to find the point that had to be improved.
It was confirmed to pseudoapply in-house meanwhile at intervals of two years, and to be
improved though the re-application had been prohibited for five years when winning
once.” (Nihon Keizai Shimbun, March 30 1998, ”World Interview”).
In addition, the MBNQA adds one important topics between the order of seven
criteria and divides into eight sessions at the Quest for Excellence Conference for three
days, holds the recipient report session intensively, and after its presentation, has the
question and answer session of each enterprise with the panel though both of Awards
has both recipient enterprise report conference session from the point "Learn to the
recipient enterprise". About 20 people or more (number of total) Division Directors
267
classes are sent with at the top the president moreover the speaker and the panelist and
know how information is offered thoroughly. This respect, Deming Prize + JQM
continues the best practice Reporting Symposium on the next day afterwards half a day
of the Presentation Ceremony, and then implementation status is reported at “Quality
Forum” for middle management and staff, and reporting itself are eventually dispersed
by 3 kinds of reporting at different plase. There is both of the recipient report, too,
however, Deming Prize + JQM does comparing unfavorably to the spread and study
process of the result compared with the MBNQA.
(E) Consideration
The Deming Prize is self-diagnosis plus lecturer guidance though the MBNQA,
the EQA, and the JQA are mainly proceeding for examination by Self-Assessment. It is
thought that are appropriate ideal way depending on each countries society and culture.
In Japanese case, the Quality Award is not merely finished off as examination
and evaluation events, but would like to proceed for breakthrough of present industries
condition, and to advane and contribute for future of enterprise based on TQM in the
cooperating with judge (Most of members are University, Public and Commercial
Professional Experts and Industries, so called shaping with Industry, Academic and
Governmental Collaboration).
(A) Four conditions instructed for Statistical Method utilization by Dr. W. E. Deming
When Mr. Ichiro Ishikawa who was chairman of Union of Japanese Scientists and
Engineers and was chairman (1948-1956) of founder Federation of Economic
Organizations (Keidanren) dies on January 20, 1970, Dr. Deming had been left the
following memos (Deming Library [5]). It is shown to have presented (1) (2) (3) (4) of 4
necessary conditions when a statistical method is utilized and to the situation of the
seminar in 1950 to Mr. Ichiro Ishikawa in the sentence.
268
(1) The rapid improvement of quality of Japanese product becomes should be possible
and exist so.
(2) A statistical method is necessary absolutely in this advancement.
(3) Management should be conscious of responsibility to the application of the
statistical techniques.
(4) When statistical techniques are utilized, the most important thing to the
production line is the customer.
The passing of Ichiro Ishikawa was, to me, the passing of an era, as well as the passing
of a great friend. He was for 20 years of our friendship at the head of the great
movement in Japan toward better quality. I first met Mr. Ishikawa in 1950 when I was
teaching some rudimentary statistical methods to 200 engineers at Ochanomizu in
Tokyo, under the auspices of the great Union of Japanese Scientists and Engineers.
After Tokyo, the next course was held in Osaka; then one in Fukuoka; then in Nagoya.
In all, there were 450 students in the courses in rudimentary statistical theory in that
summer of 1950. It was the Union of Japanese Scientists and Engineers, under the
leadership of Mr. Ishikawa, that provided advanced education in statistical methods, on
a broad front, as well as return visits.
I pereceived early in this teaching that no matter how much the students learned
about statistical methods, that no matter how eager and how skillful they would be in
applying statistical theory in their own plants, no momentous, lasting movement
toward better quality through out Japan, to be felt the world over, would take place
unless management would assume certain responsibilities. Mr. Ishikawa was quick to
agree with me in 1950 that (a) rapid improvement of quality of Japanese product was
possible, and must take place; (b) that statistical methods were vital to this
advancement; (c) that management must assume certain responsibilities for the
application of statistical techniques; (d) that the consumers is the most important part
of the production - line. He not only understood: he took ACTION.
It was through Mr. Ishikawa that I had the privilege of addressing a gathering of 45
executives in the Industry Club in Tokyo on 25 July 1950, and again on 19 August 1950,
with further meetings in 1952, and onward. It was in these meetings, thanks to Mr.
Ishikawa, that top management learned something about statistical techniques, and
something about their responsibilities to ensure success.
English came hard for Mr. Ishikawa, yet he grasped at once the meaning and
importance of statistical methods in Japanese industry. He in time developed
considerable skill in English, 1958 wrote a beautiful letter to me, expressing nobly the
social responsibilities of business.
269
His interest never waned. If the movement toward the advancement of quality in
Japan may be attributed to any one man, that would be Ichiro Ishikawa.
One of the greatest rewards of my life was the honor to invite Mr. and Mrs.
Ishikawa to dinner in my home in Washington.”
----------------------』
..............
(Dr. Deming papers, Classification No.11, File: Ichiro Ishikawa; letter and memo; The
United States Library of Congress Manuscript Division.)
(B) Dr. Deming started helping Japanese Industry of after Second World War. Doctor's
mind was displaying full swing into Quality Control Education activity for own country.
There are the following words in the letter of thanks to Ichiro Ishikawa of Dr. Deming
(Deming Library [6]).
It is said that 200,000 industrial personel were received his lecture till his pas-way
(December 20, 1993) by Dr. Kosaku Yoshida, then a support professor of Dr. W. E.
Deming, met at the funeral servise on December 29, 1993. (Dr. Kosaku Yoshida:
Professor, Department of Finance/Quantitative Methods, School of Management, and
California State University and Guest Professor, Massachusetts Institue of Technology:
present Aoyama Gakuin University International Political Eeconomy Department
Pprofessor).
This moreover, the word of eulogy “Come to an end after it had fallen" (Japanese
maxim to present to a great man, it mean “Great Man fulfill his Mission to the Last
END.”) in the word of mourning was presented from Late Mr. Shigekuni Kawamura,
past president Dainippon Ink Chemical Industry Co. Ltd. as of Japanese Delegation at
270
Funeral Service of New York University (Inward mail from a TQM Manager at that
time, Mr. Tsuguo Tomiyama).
(C) Desrinctive feature of the Deming Prize is focus on pre- and aft- of processes.
As for processes of the Deming Prize examination, it was recognized the following
processes were taken placees (Tsuda [4]).
The above mentined process that has not been described to such "Guidline of the
Deming Prize" (JQM is also similar) has been implemented by tacit program since it
was founded. A lot of new managements and the quality control techniques were
developed from among the mechanism of such Cooperation of Industrial, Acdemic, and
Governmental Sectors for preparation of Deming Prize examination. This is also agreed
with Professor Kume [7].
271
preparation processing in a new age. It is a reason to mention by "There is a bud of a
new technique only in the workshop (Genba) of the enterprise" that Deming Prize in the
future should be the trigger for creating of broader and newer view oriented something
defferent or unique while overcoming history and tradition.
Moreover, Dr. Kaoru Ishikawa (1985) said ‘The Swedish people have observed the
way we handle management. They termed it ‘Industrial Democracy.’ That says it all.” at
Chapter 6 ‘TQC Is a Thought Revolution in Management”, the last page of Paragraph 6
“Respect for Humanity as Management Philosophy” in the book of “What is Total
Quality Control? The Japanese Way” (Ishikawa [9]). It was happening to entirely
similar with both concepts. This “Industrial Democracy” is difined as "To determine the
policy of employees welfare under cooperation with both management side and labor
side" (A random house English-Japanese Dictionary: Shogakukan). The side is different
between latter “Industrial Democracy”, and Dr. Deming's idea "Democracy in industry".
However, it is thought that TQM by the thought of democracy may be thought. It is
better to wait for the research in the future.
272
Here, iIt is to expain the Japan Quality Award (JQA).
Japan Productivity Center for Socio-Economic Development has the Management
Quality Council which and Japan Quality Award Promotion department which office
are managing for commndation and administrative function sinc 1996 by annual
recognition scheme. As for dissemination program for business management concerns,
it is quite active operationon JQA Management Program by publishing regular periodic
busoness management quality report in domestic on the other hand and it get the
branch office in especially the USA, acquire detailed information on the MBNQA and
also dispatching overseas study team by annual basis such as the MBNQA
Investigation Team etc.
The item of the proposal hangs as follows from among the 1997 MBNQA
Investigation Team Report [11] "Customer Focus System Management/ Dramatic
management paradigm revolution in USA"- Threat of Acceleration Quality Journey-.
It is very enthusiastic.
Observable items in this is to aim at "Institution of National Quality Award" and
"Award that surpasses the MBNQA" and, in addition, to take up "Cooperation of Japan
and Asian countries".
273
William A. Golomski cooperated behind that. And, the flow of the thought of the
customer focus and the quality focus became the consensus of the American Congress.
Moreover, based on such historical events, not only USA but also Japan have
been rediprocally the same mistake, isn't the Quality Award at "National
commendation" level necessary as being also in the proposal of the 1997 MBNQA
Investigation Team Report in above-mentioned Japan Productivity Center for
Socio-Economic Development? The institution of "National Quality Award" is expected
as a link in the chain of the big politics that activates the root of "People's Civilization
Power" as described later.
274
organize Interntional Evaluation Examination Committee and to establish for
Evaluation Criteria, to have recommendation excellent enterprises from among quality
award recipient enterprise in each country by authorized organization, and to examine,
evaluate and commend for Gold Award, Silver Award.
As for such a proposal initiating activity, how about Union of Japanese Science
and Engineers (JUSE) will contact with National Institute of Standard and Technology
(NIST), European Foundation for Quality Management (EFQM), International
Academy for Quality (IAQ), and American Society for Quality (ASQ), and European
Organization for Quality (EOQ) etc. for discussion on foundation international network
establishment? The world is changing into borderless society year and year that is it
possible to organize the International Promotion Committee in the following proposal?
『The following four exists as a phenomenon of the advanced country type decline.
275
And, this relates to the civilization factor "Great historical consciousness" for recovery
through clever Civilization created by human being at its basis, and the following
precedents are shown as a success example of tying to the reproduction.
(1) Powerful political structure of the fifth Republic of De Gaulle who changes the
fourth Republic in France completely
(2) Reformation of Great Britain by Thatcher
(3) President Reagan Revolution of the USA
“‘Big Politics” that activates one to change the root of people's thought and values
sense and philosophies completely and “People's Civilization Power” more than
managing on social and political system as mere “Structural Reformation” is
indispensable for the reproduction from the decline.』
There was "Foundation of the Malcolm Baldrige National Quality Award" in the one
though Reagan Administration enforced four policies (Tax Reduction, Deregulation,
Fiscal Expenditure, and Quality Award) from "Young report" for American economic
activation having been submitted by the President Industrial Competitiveness
Conference. It was passed in Congress like above-mentioned Para. 3.2.1, the enactment
on the 20th August 1987 and execution was announced officially on January 25 1988.
President Reagan placed his great expectation and greeted it in the ceremony as
follows (Mikata [14]).
"The strengthening the concern to quality and customer and the improvement of
managements which the Malcolm Baldrige National Quality Award promotes is the one
that becomes the mainspring of growth, employment, and prosperity in all the
societies."
The effort that the USA had put on the spread of Application Guide and the Self
Assessment of the enterprise of the MBNQA was the one not seen in the Deming Prize.
Quality Renaissannce came, and the Quality Culture was formed. And, to have
contributed to activation of an American enterprise and the national economy is to be
known well.
276
corporation model of industrial and acdemic sectors has been founded by the
cooperation of the enterprise, people from academic background, and societies of the
quality control field in such a direction, in 2001. The report was announced with great
expectations in the restructuring activity of a Japanese management in March 2004.
"The 21st century is Century of Quality" as described by Dr. J. M. Juran [15], and
it is absolutely necessary to work on country-making as " Japan: Country founding on
Quality", based on solid realization of "Japan: Country trusted and respected by the
world " proposed by Mr. Shoichiro Toyoda, the eighth generation chairman, Japan
Federation of Economic Organizations, as emphasized at the very beginning.
277
Reference
1. Masao Nemoto, Kozo Koura: Japanese Society for Quality Control, GLQM Case Study
Committee Final Report, Chapter 5 "Quality Award in each country" pp.106-142
and appendix, April 1998
2. Paul D. Kresky: Baldrige + Prescription? An Added Advantage,The Eleventh
International Conference of the Israel Society for Quality, Jerusalem, Proceedings,
pp.578-580, November, 1996
3. Yoshikazu Tsuda: The “Reaison d' etre" of Quality Prize ― How Prize Jury Makes
Defference from Self-Assessment, 40thEOQ Congress, Berlin, Germany
Proceedidngs, Vol.1, pp.161-166, September, 1996
4. Gabor Andrea: " The Man Who Discovered Quality", p. 278; Random House Inc.
1994
5. Dr. Deming Library:"Deming Paper", U.S.A. Library of Congress
6. Ditto
7. Hitoshi Kume: Management by Quality, p.44, JUSE Publishers, April 1993
8. Dr. W. E. Deming: Elementary Principles of The Statistical Control of Quality, p.10,
JUSE, June 1952
9. Kaoru Ishikawa, Translated by David J. Lu: What is Total Quality Control? The
Japanese Way, pp. 112-113, Prentice-Hall, Inc., 1985
10. Katsuya Hosotani, Eiichi Irino: Various prizes and the features concerning
management "Introduction, each prize of management, and the feature", Quality
Control, Vol.45, No.10, pp.7-16, October 1994
11. Japan Productivity Center for Socio-Economic Development: "VI Proposal to
business administrator and leader of various circles of Japan "Customer Focus
System Management/ Dramatic Management Paradigm Revolution in United
States” - Threat of Acceleration of Quality Journey, the 1997 Malcolm Baldrige
National Quality Award Investigation Team Report, pp.16-18, May 1997
12. Avigdor Zonnenshain, Ph.D.: International Quality Chain, ASQC's 50th Annual
Quality Congress, Proceedings pp.133-137, May 13-15, 1996
13. Terumasa Nakanishi: "Economy classroom: Learning to economic history, and
Reproduction from advanced country type decline", Nihon Keizai Shimbun issue
August 15 2003.
14. Morinobu Mikata: Impact of Malcolm Baldrige Award, p.74, Nikkan Kogyo Shimbun
Co., August 1995
15. J.M. Juran: The Upcoming Century of Quality, Quality Progress,Vol.27, No.8,
pp.29-37, August 1994
278
Aknowledgment
The research of the Quality Award in each country was started in "GLQM Case
Study Committee" of JSQC (1995-1999). However, the research of "TQM Element as the
function" that applied the idea of the Business Function Development of QFD began
because there was an insufficient point in an academic research. In that case, we want
to express my gratitude to former Professor Yoji Akao, Asahi University, Faculty of
Business Administration, Department of Information Management, who got the point
from an academic viewpoint.
Moreover, I want to express my gratitude to Professor Tadashi Yoshizawa Teikyo
University, Faculty of Economics, Department of Environmental Business, (former
professor of Tsukuba University) who is a joint writer of the thesis in Chapter 4 and
Chapter 5.
279
for receiving the material offer from the organization and the person related to the
university in several countries.
Thank you very much to Professor Hiroe Tsbaki, Professor Noboru Ogura,
Assistant Professor Chizuru Nishio of the Graduate School of Business Sciences, the
Universsity of Tsukuba, and Professor Tadashi Yoshizawa of the Teikyo University who
guided when this thesis is completed for the end it.
I sincerely pray for the repose of Dr. W. Edwards Deming’s Soul with thanks.
280