DEMING PRIZE

What it takes for focused improvement?

TARUN KSG
VISHAL AGGARWAL
SAURABH THADANI
SRIKANTH KONDURI
VARUN JOSHI
VIDU RASTOGI

OM-1 Term-2 Project

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Agenda
The Deming Prize
TQM
Indian award winners
TATA STEEL
M & M FES
NEI LTD.

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The Deming Prize

The purpose of the Deming Prize was to recognize those who
excelled in quality control and as a way of driving quality
control
Deming Prize was established in 1951
Dr. W. E. Deming was one of the worlds leaders of Quality
management
It was also established to thank Dr. Deming for his
accomplishments and impact in the Japanese industry

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Deming Award - Categories

Deming Prize

Deming Prize
for
Individuals

Deming
Application
Prize

Quality Control
Award
For Factories

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Application Process
Consult with the
Deming Prize
Committee

Document
Examination

Complete &
submit
application form

PASSES

Submission of QC
practices & Description
of Business activities

Eligible for
on-site
examination

F
A
I
L
S

Examiner sends the

applicant their
findings

On-Site Exam. &

the decision of
the winners is
made by the
Board of Directors

Televised
Announcement

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WEIGHTAGE

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The Deming Prize - FOCUS

Management policies and their deployment regarding quality
management

20
20

Maintenance and improvement of product and operational

qualities

10

Establishment of systems for managing quality, quantity,

delivery, costs, safety, environment, etc.

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15

New product development/or work process innovation

Collection and analysis of quality information and utilization of

information technology

Human resources development

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TQM New Focus

1900s

1940s

1960s

Inspection

Statistical Sampling

Organizational quality focus

1980s Customer driven quality

beyond

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Examination Viewpoints
Effective
Implementation
of TQM &
Quality of
Products,
Services

No Unnecessary
rules &
regulations.
Concentrate on
TQM for
effectiveness

Using TQM
rather than
fancy statistical
methods will
fetch more
points

Production/NonProduction parts
looked at same
way, does use
TQM & no waste
of Time &
effort?

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DEMING PRIZE- Indian winners

2001

Worlds 7th largest steel

company, annual crude
steel capacity of 31
tonnes

3rd largest tractor

company in the world,
operating in 20 countries

Manufactures
Automotive & Industrial
friction materials

2002

2003

2005

3rd largest two wheeler

manufacturer & 1st to
launch 50cc moped in
India

Leader in producing
brake linings, discpads,
railway brake blocks in
India

2008

2010
Supplies ball bearings
to Hero Honda ,Bajaj
Auto, Maruti
&Hindustan Motors

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DEMING APPLICATION PRIZE 2008

TATA STEEL

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Tata Steel
First integrated steel company in the world, outside of Japan, to
win the Deming Application Prize
World's 6th largest & 2nd most geographically diversified steel
producer, with operations in 24 countries
In year 2001-2002 as per the World Steel Dynamics, Tata Steel
became the lowest cost producer of steel in the whole world
Won the 2008 Deming prize for achieving distinctive
performance improvements through the application of TQM

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Tata Steels journey towards Deming Prize

Prior to 1990, the company was primarily inward looking, not

affected much with the happenings beyond Indian economy
With globalization the company had to think 'out of the box'.
It needed to redefine the business elements (4 Ms & 4Ps),
vision, strategies, management tool and techniques etc
Adopted the Total Quality Management (TQM) philosophy as a
part of Competitive Strategy in late 1989.
It started putting massive effort on education & training on
TQM.

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Journey Continues
ISO 9001,9002 certification of various manufacturing & service
units
Process Improvements through Quality Improvement Projects
(QIP's), Value Engineering Projects and SPCs
Quality Circles for employee involvement and improvement
Adopted the J N Tata Quality Award Model based on Malcolm
Baldrige Model for its various divisions in the company in 1992
Benchmarking and BPR complemented the TQM efforts at Tata
Steel in terms of continuous improvement
Balanced Score Card integrated with TQM strategy in 1998

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Aspire
VISION 2007 in May 2002 - becoming an EVA positive company and
also sustaining and improving EVA year on year
An integrated improvement program named ASPIRE, acronym for
Aspirational Initiatives to Retain Excellence, was launched as a
vehicle to achieve this goal
It not only focusing on tools & techniques but also on the power of
mind. Philosophy evolves around self confidence & desire to excel
Includes improvement tools like Suggestion Management, Six
Sigma, TPM, Knowledge Management, TOC and some others related
to TQM principles of Daily Management, Policy Management,
Problem solving and Task achieving

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In 2005, conducted a TQM diagnosis along with the JUSE team.

The TQM diagnosis gave them deeper understanding and clarity
on their approach to quality: what areas should be addressed,
who should get involved in what activities, etc.
They specifically looked at:

Strategic aspects or policy management: relooking at the

balanced score card, looking at areas needed to change the
business, etc
Daily management: managing the day-to-day operations,
ensuring that they are stable, looking for incremental
improvements, etc
People involvement: involving people in thinking about
improvement activities such as quality circles, suggestion
management, knowledge manthan, etc.

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Why they won?

The Deming Application Prize was awarded to Tata due to the recognition and
accomplishments as follows.
First, Tata links business strategy and TQM closely in a cooperative manner,
focusing on quality. By using TQM as a tool to achieve the strategy, Tata has
enjoyed positive effect on improving the quality of product/service, enhancing
brand value, and increasing production volume.
Second, Tata has successfully implemented various projects, in order to
correspond with a rapid growth of Indian industry, such as the construction of new
shaft furnace, called the H-furnace, and enlargement of facilities for quantitative
expansion.
Third, plentiful efforts seen in the improvement activities, mainly by small group
activities, to enhance problem solving capability.

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What they themselves say

The process of working for and winning the coveted Deming

Application Prize in 2008 has been a humbling and enlightening
experience for Tata Steel.
Humbling, because it helped Tata Steel pinpoint
inconsistencies in its approach of managing its business based on
logical principles that are often camouflaged during the good
times and surface only during a crisis.
Enlightening, because the same process has helped Tata Steel
focus on its strengths in areas that are most critical to its
business.
- B Muthuraman, managing director,
Tata Steel.

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DEMING APPLICATION PRIZE 2003

MAHINDRA & MAHINDRA FES

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M&M: The Road to TQM

Mahindra Tractors bagged the Deming Prize in 2003
In 1997, M & M Tractors decided to become the world's largest
tractor manufacturer by 2007 and targeted to acquire the
coveted Prize by 2003
The TQM journey was in three phases:
1. Introduction phase: 1990-94
2. Promotion phase: 1995-99
3. Development phase: from 2000 onwards

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Introduction phase (1990-94)

The first phase objectives were

(a) improving manufacturing quality through process control

(b) improving the quality of bought out components, and
(c) increasing productivity and reduce the cost of poor quality

Initiatives:
Statistical process control (SPC)
Business process reengineering (BPR) in manufacturing
Promotion Phase (1995-1999)
The focus was standardisation and improvement of all operations.

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Development Phase (2000-2003)

Initiatives:
Enhanced use of Deming Prize Guidelines.
Systematic use of tools like Quality Function
Deployment (QFD), Design Reviews, DFMEAs, PFMEAs,
CAE and SPC
Use of advanced statistical tools like DOE and Six
Sigma.
Establishment of Mahindra Sales System (MSS) for
improving Channel Capability, alongside DOE and Six
Sigma.
100% involvement of all employees in improvement
teams.

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Consolidation Phase (2004 +)

1. Implementation of JQM guidelines:
. Strengthening Kaizen culture & Policy Deployment.
2. Strengthen Unique Activities:
. Strengthening - New Product Development process.
. Introduction of Lean manufacturing and TPM .
. 2-way Communication with the Suppliers and Employees (Reach
Out and Khula Manch) and Dealers (Dealer Direct).
3. Mahindra Quality Works developed by MIQ

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Benefits derived from TQM

The benefits derived over the years can be summed up as follows:

(a) reduction in rework

(b) reduction in rejection at suppliers' end as well
(c) improvement in field quality
(d) increased productivity, customer satisfaction,
employee involvement in continuous improvement
(e) introduction of new models 15 models in three years.

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TQM at M & M Zaheerabad Unit

Energy Consumption Trends:

Energy Cost as % of manufacturing cost

Specific electrical energy consumption in

kWh/ eq. vehicle

Equivalent vehicles produced

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SHE Management

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Pawan Goenkas Message

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SHE Implementation

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Kaizen Continuous Improvement

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DEMING APPLICATION PRIZE 2010

NBC BEARINGS

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NEI Ltd.

Part of the 150 year old, multibillion dollar C.K. Birla group
Supplies ball bearings to all major
two-wheeler makers in India,
including Hero Honda and Bajaj
Auto, as well as car-makers like
Maruti and Hindustan Motors
Manufactures nearly 4.6 Million
Bearings per month in over 500
different sizes ranging from 6 mm
bore to 1300 mm outer diameter

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Award recognition of excellence

NEI is the only Indian company & Bearing manufacturer ever

to be declared winner of Deming Application Prize in 2010
It is a result of NEIs continuous focus of employees and
partners on quality and reliability with effort towards systems
improvements
The TQM journey started way back in year 1995 when NEI was
certified with ISO-9001. This was followed by QS-9000 in year
2000, TS-16949 in year 2003, Association of American Railroads
(AAR) certification AARM-1003 for railway bearings in year
2005 and the TPM Excellence Award in year 2008

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Tangible Benefits (fetched TPM award in 2008)

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Tangible Benefits (fetched Deming Prize in 2010)

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POSITIVE EFFECTS
Quality Stabilization and Improvement
Productivity Improvement / Cost Reduction
Higher Sales and higher profits
Customer delight & enhanced market
share/margins
Realization of Top Management's Dreams including
Business Plans
TQM by Total Participation and Improvement of
the Organizational Culture.

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THANK YOU

Quality is quite a lady! The more we understand her, the more we

need to learn about her

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Bibliography:

March 2008 Newsletter of TPM Club India

http://www.tpmclubindia.org/pdf/march08_newsletter.pdf
Times of India Newspaper AD
http://epaper.timesofindia.com/Repository/TOIM/2010/11/10/TOIM_2010_11_10_1.pdf
April 2009 Special Issue of TPM Club India - CII
http://www.tpmclubindia.org/april-09.pdf
Newspaper Articles
http://m.economictimes.com/PDAET/articleshow/6735845.cms
http://www.thehindubusinessline.com/2010/10/14/stories/2010101452401900.htm
JUSE home page
www.juse.or.jp/e/deming/
The W. Edwards Deming Institute
www.deming.org
http://www.tqmi.com/demingprize.asp
tata steel annual report 2008-09
tata steel homepage
http://tatasteel.com/
tata steel aspire homepage
http://aspire.tatasteel.com/
www.miq.in/mahindra-quality-way
www.mahindra.com/enewsletter/issue2%202009/html/quality.html
Progress @TPM The Newsletter from TPM Club of India
Newsletter: Mahindra & Mahindra Zaheerabad Unit
M & M Ltd: Automotive Sector by U.S.Joshi, Dy. General Manager(Power Planning, Energy Management
Mahindra Sustainability Review, 2009-10

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