TQM Model of Elements-Deployment Table

Developed from Quality Award and its Application

Tsukuba University examination degree thesis

(Doctor)

2004

Kozo Koura

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Contents Page

Chapter 1 Background of Researches and its Purpose 1 1.1 Purpose of Thesis and Composition 1 1.2 Background of this Thesis: Development of TQM in Japan 3 Chapter 2 Deming Prize and its Influence 8 2.1 Transition Status of Deming Prize and Japan Quality Medal Recipient 8 2.2 Motive of TQM Introduction, Purpose of Promotion, and

Content of Promotion Activities 9 2.2.1 Motive of TQM Introduction 10 2.2.2 Purpose of TQM Promotion 13 2.2.3 Content of Activities of TQM Promotion 15 2.3 Tangible Effects and Intangible Effects of TQM Activities 18 2.3.1 Tangible Effects of TQM Activities 18 2.3.2 Intangible Effects of TQM Activities 21 2.4 Multi Time Recipient Companies 23 2.5 Social Influence Process of Deming Prize 26 2.5.1 Social Influence of QC Circle Activities 26 2.5.2 Social Influence of Group-wide Quality Management (GWQM) 32 2.5.3 Construction of Social System around TQM 52 2.5.4 Various Activities supported for TQM 55 2.6 Consideration 56 Chapter 3 Quality Awards in each Country and its Social Influence 61 3.1 Propagation of Quality Award 61 3.1.1 TQM Activities Verification Visit Status to Japan from each Country 61 3.1.2 Propagation of Quality Award to each Country 62 3.1.3 Type of National Quality Awards in each Country 64 3.2 Foundation of Malcolm Baldrige National Quality Award 66 3.2.1 Malcolm Baldrige National Quality Improvement Act in 1987 66 3.2.2 Origin of referring as TQM and Malcolm Baldrige National Quality Award 69 3.3 Foundation of European Quality Award 69 3.3.1 European Foundation for Quality Management (EFQM) 69 3.3.2 Purpose of Establishment of European Quality Award 71 3.3.3 Quality Status in Europe Nations 71

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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 Chapter 4 Development of Comparison Methodology of Quality Award 96 4.1 Purpose and Methodology of Research 96 4.1.1 Purpose of Research 96 4.1.2 Research Methodology 97 4.2 Previous Research 98 4.2.1 Research in U.S.A. and Europe 98 4.2.2 Research in Japan 103 4.3 Qualitative Comparison among Malcolm Baldrige National Quality Award,

European Quality Award, Japan Quality Award, and Deming Prize 105 4.3.1 General Description 105 4.3.2 Comparison of Criteria 106 4.3.3 Management on Awarding Operation 115 4.4 TQM Element in Quality Award Criteria Item and ISO 9001 119 4.4.1 Development of Comparison Research Method 119 4.4.2 Step of Development of TQM Quality Award Element Comparison Matrix 121 4.4.3 Comparison of each award by TQM Quality Award Element

Comparison Matrix (synthesis) 133 4.5 Conclusion and Residual Problems 139 Chapter 5 Comparison between Criteria of each Quality Award 145 5.1 Purpose of Research 145 5.2 Structuring of TQM Quality Award Element Comparison Matrix 146 5.3 Factor Extraction of Quality Awards and ISO 9001 146 5.3.1 Extraction and Rotation of Factor by Principal Factor Analysis 146 5.3.2 Interpretation of Factors after Rotation 148 5.4 Study of Analysis Result 151 5.4.1 Factor Structure of each Award 151

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5.4.2 Common Factor and Individual Factor 161 5.5 Conclusion 164 Chapter 6 Time-Series Revision Change of Criteria of

Malcolm Baldrige National Quality Award 169 6.1 Purpose of Research 169 6.2 Research Method 169 6.3 Research Process and Result 170 6.3.1 Qualitative Time-Series Comparison Analysis 170 6.3.2 Time-Series Comparison Analysis by Factor Models 174 6.4 Consideration and Conclusion 183 Chapter 7 Proposal for TQM Introduction, Promotion and

Implementation Process 189 7.1 Introduction and Promotion of TQM in Enterprise and

Development of TQM in Japan 189 7.1.1 Case Study: Vision management of AISIN Co., Ltd. 190 7.1.2 Summary of AISIN Co. Ltd Case Study. 199 7.2 Process of Introduction, Promotion, Development, and Advancement of TQM 199 7.3 ISO 9000, ISO 14000, and Quality Award 205 7.4 Management at which TQM aims 208

Chapter 8 Cross-Functional Management and Cross-Management Factor 214 8.1 Cross-Management Factor 214 8.2 What is Cross-Functional Management? 214 8.2.1 Definition of Cross-Functional Management 214 8.2.2 Necessity of Cross-Functional Management 215 8.2.3 Concept of Cross-Functional Management 215 8.3 Cross-Functional Management Organization 219 8.3.1 Cross-Functional Management Committee 219 8.3.2 Role and Duty of Cross-Functional Management Committee 226 8.3.3 Operation of Cross-Functional Management Committee 226 8.3.4 Cross-Functional Management Working Team 226 8.3.5 Secretariats 227 8.4 Implementation of Cross-Functional Management 227 8.4.1 Preconditions 227

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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 Chapter 9 Conclusion and Proposal of New Quality Award 255 9.1 Summary of Comparison of Quality Awards 255 9.2 Future Stand for Quality Award 255 9.2.1 For Malcolm Baldrige National Quality Award 255 9.2.2 For European Quality Award 259 9.2.3 For Deming Prize 260 9.2.4 Quality Awards for Future 263

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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

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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

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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

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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

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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 Attached table: Factor Loading of each Quality Award 167, 168 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 Attached Table: MBNQA Criteria Item and Principal Component Structure

(1997-2003 and 2001 former) 188 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

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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

Appendix A Table of Countries enacted, studying and concern to NQA Appendix B List of NQAs in Asia Appendix C List of NQAs in North and South America Appendix D List of NQAs in Europe Appendix E TQM Quality Award Element Comparison Matrix

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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

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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.

This academic dissertation is structured as follows.

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 3, the detailed study for processing of international development of the Quality Award that is the main research objectives of this thesis. 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.

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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. 1.2 Background of this thesis: Development of TQM in Japan

It looks back on the developing process of TQM in our country in this chapter according to Koura [1] before the research on the TQM element starts. (A) "Investigation and research age of Quality Control" (1946-49)

80% or more became ruins as for the industrial installation of Japan of the defeat this time in 1945, and there were only ten-odd % of the level at prewar days industrial output. You may say that only "Diligent person and the brain" was left in Japan where resource doesn't exist, Koyanagi [2] (author postscript). Japanese Standards Association (JSA at the following) was established by the enactment of Industrial Standardization Law in 1945 and Union of Japanese Scientists and Engineers (JUSE at the following) in 1946, and became the mother's body of the quality control promotion of our country. Chairman of JUSE, Mr. Ichiro Ishikawa (First Chairman, Japan Federation of Economic Organizations) organized the team organized by scholars and experience experts for the revival of Japanese industry in 1948, planned an overseas technological investigation (USA), budgeted for the investigation research expense from Economic Stabilization Agency in the same year, and decided the introduction of "Quality Control" as a result of the investigation. JUSE began for a Quality Control Seminar (Basic Quality Control Course) in 1949. Afterwards, QCRG (Quality Control Research Group) organized by the lecturers of this seminar endeavored in the Quality Control development of Japan. In "Statement of starting" of the first number of "Quality Control" (present "Quality Management") magazine in March, 1950, Mr. Ichiro Ishikawa described, "For ‘Condition it should be’ to the future of our country economic industry for rebuilding of ‘Peaceful Country’, ‘Cultured Country’, and ‘Democratic Country’: It is emphasized to make the product of our country can stand competition with dignified manner in the global market" (sentence omission)(Ishikawa [3]) and the vision of Quality Control of Japan had been shown here by. (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

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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. (C) "Total Quality Control (TQC) age" (1960-69)

The Quality Control Magazine edited under Special Issues “QC implemented by all member” campaign for one year in 1960, and "TQC" of Dr. Armand V. Feigembaum was accepted, and TQC has spread to Japanese domestic production industry. This content developed into following Japanese Quality Control (Japanese TQC). That is, the concept of the Control Item is introduced from Dr. Juran's "General Management" lecture, and it has developed into the “Management Item Table” according to the assigned position, the Flag System Method by Komatsu Co. and the Policy Management by Bridge Stone Tire Co. afterwards. Moreover, such as “Initial Flow Process Management in R&D” and "Ten QC Principles of Vendee-Vender Relation" were completed by the new product development oriented and the Quality Assurance Systems was established, and these ideas developed for the efficiency improvement of the management under the management system establishment of Quality (Q), Cost/Profit (C), and Quantity/ Delivery Date (D), that is, the Cross-Functional Management concept. These "Policy Management" and "Cross-Functional Management" are routinized as the basic management system assuming. On the other hand, Quality Control Circle (QC Circle) was born in 1962, and structured as the base of "Management of respect Humanity", and " QC 7 Tools" and "Problem Solving QC Story" were developed as the tools of process management activities. The 1st Quality Control Symposium (as QCS) was took up a theme "Introduction, promotion, and established of the Quality Control" under discussion in June 1965. QCS has the role of responding the problem on the Quality Control of Japan in the age, discussing and discovering the directionality by the Industry and Academy Study Cooperation. "Six feature items of TQC of Japan" was discussed and announced in QCS aiming at holding the International Conference on Quality Control in 1969 (ICQC '69 TOKYO). The Japan Quality Medal (called as JQM) was created to commemorate the first ICQC ’69,and to maintain and upgrade the spirit of the conference long into future. With the purpose of further developing the world of quality control, the Japan Quality Medal was established by a fund from surplus conference revenues. (D) "Age of establishment of TQC" (1970-79)

Japanese Society for Quality Control (JSQC) was founded in 1970 and also the

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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. (E) "Age of leap and development of TQC" (1980-89)

In this age (1) The reverse-export of Japanese TQC started. (2) The diversification and the upgrade of the customer demand advanced and

"Attractive Quality" was advocated in 1984. (3) The Sensibility Quality is handled at the same time. (4) The role of Policy Management and Daily Management is enhanced and clarified,

and the management strategy problem was recognized as top management concerns.

(5) Group-wide Quality Control (GWQC) has developed, too. (6) Moreover, TQC can be introduced not only by manufacturing sector even by the

service sectors. (7) The Quality Control of software is developed. (8) "Social Quality” course was issued by Quality Control Magazine, May 1986. (9) Moreover, the internationalization of the Deming Prize Application Prize was

decided in 1984, and Florida Electric Power & Light Ltd., U.S.A became the first recipient enterprises as an overseas enterprise in 1989.

(10) The ICQC '87 Tokyo was held in 1987, and "Ten specific feature items of Japanese TQC" was announced, and Japanese TQC was called “Company-wide Quality Control (CWQC)”.

The propagation of Quality Award (that is a whole of this research theme) were

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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.

(F) Age of "Internationalization of TQC and restructuring to TQM" (1990-99)

Uniting with TQM came to be thought by the introduction's of ISO9000 Quality System/14000 Environmental Management System into Japanese enterprise becoming active in this age, "TQM Declaration" was done in QCS in 1997, "The synthesis ‘Quality’ Management of the 21st century" was advocated, and "Stake-holder Relationship Management" of the stockholder, the customer, the employee, the society, and the environment, etc. came to be thought. Moreover, the systematization of TQM was proposed and the Total Quality in the wide sense was defined. The Strategic Policy Management's being advocated on the other hand, it came to be raised Global Quality Management (GLQM) with internationalization of TQM, and global competitiveness and TQM (Japan-U.S.A comparison) were researched. Stagnation has progressed to Japanese economy with burst of the economic bubble. The concern for the Quality Control decreases, a serious quality issue and the enterprise ethics problem occur, it extends to the quality of the product, the quality of service, the quality of business, the quality of management as a social industrial infrastructure of Japan, misgivings to the quality of the society extend to the furthermore, and even the sense of crisis comes to be had by the competitiveness edge of Japanese industry. "Hakone Declaration: the plan of the Japan Organization for Quality Innovation (JOQI) establishment" was adopted in QCS in December 1999. "Guideline of the Deming Application Prize" was revised in the same year. (G) "Age of TQM revolution" (2000-)

"Recognition of TQM Achievement" for a former stage of a continuous promotion to the Deming Prize was founded in 2000, as "Japan Organization for Quality Innovation (called as JOQI)" was established in the form of tie-up with Japanese Society for Quality Control under the participation of five organizations related to quality based on "Hakone Declaration" in 1999 on May 23, 2001, and the activity to the Reconstruction of Japanese Management Model started. And, it learnt to the revival of the USA and the Japan evolution of TQM started. A basic matter and the evaluation criteria (point system) were revised as for the Deming Prize Guide in 2002. "Quality Control" magazine also renewed the name as "Quality Management" magazine and the top aspect, new management like corporate governance, value managements, Balanced Scorecards, and Customer Value Managements, etc as the new trend of quality management uniting with TQM began to be researched. "Asian Quality Network" was formed as the quality control research and promotion organization in Asian 10 country

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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. (H) " To New age"

The Quality Control in Japan has been passing for achievement of the vision, by proposal of Mr. Ichiro Ishikawa, founder and chairman of the Japan Federation of Economic Organizations, to wipe-off the disgrace of a Japanese product of as "Cheap and Bad" historically famed. And, it came to export the product of "Good and Right Price" to the world and it came to be called the economic powerful country today. Hereafter, there should be contructing for a new vision in "21 centuries of the age of the quality" of Dr. Juran mentioned [4]. The eighth general chairman of Federation of Economic Organizations, Mr. Shoichiro Toyoda 's lecture is fortunately disseminated for construction for " Japan: Country trusted and respected by the world" in the future. (Toyoda [5]) It is necessary to advance this direction as a vision in the 21st century of the establishment of “Japan: Country founding on Quality".

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.

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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.

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.,

　No. of Deming Prize and Japan Quality Medal recipientsenterprises

0

50

100

150

200

250

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995

Fiscal Year

Sum

of

Win

nin

g Ente

rprise

s

Sum No.：Japan Quality Medal recipients

2000

①① ①

①

　①

①①

①

　　　②①

①①①

①

Established Demingprize

Set S &M

SetDiv.

EstablishedJQM

SetPlant

Bigin to applicationfor OverseasCompany

Stop S & Mand Div.Prize

9

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. 2.2 Motive of TQM Introduction, Purpose of Promotion, and Contents of Promotion

Activities The number of the Deming Prize and JQM recipient companies are counted 193

companies from 1951 to 1999. And the number of Deming Prize enterprises (The Application Prize, the Small and Medium-sized Enterprise Prize, the Quality Control Award for Operation Division, and Business Units are included) is 178 included four

10

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. 2.2.1 Motive of TQM Introduction

The motives of the TQM introduction are possible devided into 3 types (Table 2.1).

A: Quality Consciousness Type (management modernization and rationalization) B: Crisis Consciousness Type (forecasting and overcoming of management crisis) C: Vision Type (management vision challenge)

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

11

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.

1950's 1960's 1970's 1980's 1990* Total33 16 36 54 39 178

1 Frequent occurrence ofquality problems 6 2 11 23 18 602 Market competitionintensification and marketenvironmental change 9 4 9 20 19 963 Liberalization of trade 1 8 3 1 134 Oil crisis 15 26 1 425 Structual Conversion (Coal,shipbuilding, textiles, informationservice, and bubble) 3 2 10 3 186 Appreciation of the yen/tradefriction 8 10 187 Global competitiveness 2 28 Retirement and death offounder 1 1 21 Insufficient recognition ofimportance of TQM/scientificmanagement 27 11 10 17 21 832 Weak capability of newproduct and new technologicaldevelopment. 1 6 8 21 11 473 Weakness in cooperationbetween divisions andintegrated management system . 9 5 17 22 534 Correspondence delay todiversification and advancementof market needs 8 30 18 565 Respect of humanity andhuman resouces development 1 12 16 20 491 Achievement of new business,overseas production, and globalquality 2 6 4 7 7 262 Priori preparation for marketand technological innovation 1 8 3 123 Achievement of long-termplan and management vision 15 24 39

The table of Noriaki Kano and Kozo Koura(1991) "Development of Quality Control Seen throughCompanies Awardwed the Deming Prize", Report of Statistical Application Research, Vol.37,No.1-2,1990-1991, pp.79-109, JUSE be revised in 1995. * 1990 year is data

　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　

Table 2.1 Motive of TQM introduction in Deming Prize recipient enterprise

1 CrisisConsciou

snessType

2 QualityConsciou

snesstype

3 Visiontype

Remarks

Year

No. ofMotive of

12

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

13

(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. 2.2.2 Purpose of TQM Promotion

Table 2.2 is showning another transitions status change for "Purpose of the TQM Promotion" of the Deming Prize recipient company.

The purpose was enumerated by concrete purpose separately by "Management Purpose", "Purpose by Business Element Aspect", "Division Purpose", "Attitude and Technique Purpose", and "Employee and Social Contribution Purpose".

Most of practical/detail objectives are as showing, when you show there is a lot of each classification and concrete a purpose.

Management Purpose: Performance improvement by upgrading of company

constitution Purpose by Business Element Aspect: Establishment of quality improvement/quality

assurance system Division Purpose: Strengthening of plan/development capability of new product and

new technology Attitude and Technique Purpose: Establishment and improvement of integrated

management system Employee and Social Contribution Purpose: Respect humanity and human resources

development

14

1950's 1960's 1970's 1980's 1990* Total33 16 36 54 39 178

1 Improvement of performanceby improvement of compnyconstitution 2 8 28 51 26 1152 Establishment and challenge ofmanagement vision and businessstrategy 7 26 24 573 Establishment of GWQM 3 1 9 6 191 Establishment of qualityimprovement/quality assurancesystem set up 13 13 34 53 29 1422 Cost reduction, profitimprovement, and establishmentof cost and profit managementsystem 5 8 20 29 12 743 Establishment of production(amount and delivery date)management system 1 3 10 21 9 444 Establishment of safety andenvironmental managementsystem 3 5 2 101 Strengthening ofproject/development power ofnew product and new technology 4 4 17 41 15 812 Strengthening of sales power 1 4 16 2 233 Enhancement andstrengthening of subcontractand supplyer management 1 2 2 54 Strengthening of productmaintenance and qualityassurance 2 3 51 Use of scientific managementidea and technique 28 9 9 15 8 692 Enhancement andstrengthening of integratedmanagement management 9 8 14 35 20 861 Establishment of cooperativesystem by all member 1 7 22 20 2 522 Rispect for humanity andhuman resource development 14 34 24 72

3 Contribution to local society 1 4 5

Table 2.2 Purpose of TQM Promotion in Deming Prize recipient enterprise　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　

5 Socialcontribution

and employeepurpose

RemarksThe table of Noriaki Kano and Kozo Koura(1991) "Development of Quality Control Seen throughCompanies 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.

1Managem

entpurpose

2 Purposeby

businesselementaspect

3 Divisionpurpose

4 Posture andtechniquepurpose

YearNo. of

Purpose of promotion

15

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. 2.2.3 Content of Activities of TQM Promotion Table 2.3 is another transitions at the age of the content of the activities of the TQM Promotion. Kano and Koura [1] calls these "Vehicle (Vehicle for Promotion) of the promotion".

The content of the activity divides roughly, and is divided with organization and

16

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.

Organization: TQM promotion committee and TQM promotion headquarters Method of promotion: TQM education, Standardization, QC circle, Policy Management,

and Cross-Functional Management, QM diagnosis All company goal accomplishment activities: Quality assurance and cost and profit

management

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.

17

1950's 1960's 1970's 1980's 1990*** Total

33 16 36 54 39 1781 TQM promotioncommittee 32 13 28 51 36 1602 TQM promotionheadquarters 30 16 35 54 39 1741 TQM education andtraining 26 16 34 49 27 1522 Standardization 22 13 19 45 22 1213 Quality Circle 10 34 53 22 1194 Policy Management** 10 32 53 37 1325 Cross-FunctionalManagement 11 32 54 34 1306 TQM diagnosis * 4 13 22 52 37 1281 TQM long-term plan 7 7 7 22 13 552 Vision managementand business strategy 1 8 25 19 533 Quality assurance 9 15 34 52 39 1494 Cost and profitmanagement 5 10 21 51 36 1235 Production (quantityand delivery date)management 4 12 40 35 916 Safety andenvironmentalmanagement 2 14 15 317 Human resoourcesdevelopment 5 6 22 33 668 Informationmanagement 2 9 119 Social contribution 2 21 Management andimprovement ofprocess and 29 3 2 4 4 422 New product andnew technologicaldevelopment 2 5 10 32 24 733 Receiving and salesmanagement 2 7 23 15 474 development ofsubcontract andcooperation trader 3 9 13 5 305 Cooperation withoverseas companies 1 2 1 4

The table of Noriaki Kano and Kozo Koura(1991) "Development of Quality Control Seenthrough Companies Awarded the Deming Prize", Report of Statistical ApplicationResarch, Vol.37, No.1-2,1990-1991, pp.79-109, JUSE be revised in 1995. * The auditand the q

Table 2.3 TQM Promotion Activities in Deming Prize recipient enterprise　　　　　　　　　　　　　　　　　　　　　　　　　　　

3Accomplishment of

a goalthree allcompanyactivities

4Activitiesaccording

todivision

1Organizatio

n

2 Methodof

promotions

Remarks

Content of activities

YearNo. of co.

18

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.

２．３ Tangible Effects and Intangible Effects of TQM Activities 2.3.1 Tangible Effects of TQM Activities

Table 2.4 is Tangible effects of the TQM activities and Table 2.5. "Criteria for Tangible effects evaluation in deming Prize recipient company" in which the recipient companies hung out.

The Tangible effect is divided roughly. Management side: Growth Rate, Profitability Rate, Productivity Rate, and Stability Management element aspect: Quality, Cost, Quantity and Delivery Date, Safety and

Environment, Human Resources, and Social Contribution Division activity: Development Capability and Marketing Capability, and Information Is divided.

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.

19

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.

Year1950's 1960's 1970's 1980's 1990* Total

No. of co.33 16 36 54 39 178

1 9 21 46 30 107

5 7 15 37 25 89

1 5 25 20 19 70

4 5 1 101 In-process defects andprocess control 22 6 15 19 18 80

2 Final product inspection 11 1 2 13 8 35

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

1 Cost reduction 10 5 8 21 14 58

2 Rationalization 4 4 3 7 18

1 Production quantity 4 2 5 14 6 31

2 Inventory 3 2 7 4 8 24

3 Delivery date 3 5 17 12 37

4 Safety 1 Safety and environment 1 6 14 5 265 Humanresources 1Human resource development 2 14 40 28 84

6 Social 1 Social contribution 1 1

6 18 35 24 83

1 1 7 2 11

3 3

4 General 8 81 Self-evaluation point

Remarks

Noriaki Kano and Kozo Koura(1991) "Development of Quality Control seen throughCompanies 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.

3 Productivity

1 Development capability

2 Marketing capability

3 Informationization

1 Quality

1Managementaspect

3Divisionactivities aspect

Tangible effect

3 Amountand

deliverydate

2Manager

ialelementaspects

Table 2.4 Tangible Effects of TQM Activities in Deming Prize recipient enterprises

1 Growth rate

2 Profitability rate

4 Stability

2 Cost

20

Table 2.5 Criteria for Tangible Effects Evaluation in Deming Prize recipient enterprise

21

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. 2.3.2 Intangible Effecsts of TQM Activities

Table 2.6 is number transitions at the age in intangible effects of the TQM activities.

The intangible effect that the company achieved as results of the TQC promotion should be accumulated as a property of the enterprise, develop in addition by TQM continuous promotion afterwards, and be valued from an established meaning as corporate culture. An intangible effect is divided roughly into six on management side, quality assurance side, attitude and technique side, human side, social contribution, and employee side. The social contribution and the employee side are concepts being paid attention to in modern viewpoint corresponding to social satisfaction and employee's satisfaction.

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.

22

1950 1960 1970 1980 1990** Total

33 16 36 54 39 1781 Promotion of improvement ofcompany constitution 3 12 39 15 692 Establishment of management vision 10 15 253 Clarification and thoroughness incompany's policy 6 10 16 33 16 814 Establishment of company-widecooperative system 3 11 27 48 20 1095 Clarification of responsibility andauthority 4 2 6 12 7 316 Smooth cooperation between divisions 1 5 22 37 15 807 Enhancement of GWQM 2 3 11 2 181 Establishment of quality assurancesystem 1 3 10 16 13 432 Transfer customer and in-houseinformation smoothly 3 2 12 19 8 443 Respect of opinion of other standpointand subsequent process 3 1 7 24 13 484 Improvement of confidence ofcustomer 1 4 10 5 205 Quality leadership 2 5 9 1 176 Accumulation and improvement oftechnology 3 1 3 10 4 211 Spread of idea and technique of QC 16 6 21 18 14 752 Promotion of standardization 9 4 5 4 1 233 Understand importance of data 2 2 15 14 2 354 From the result oriented to theprocess oriented 3 15 20 10 481 Improvement of quality consciousness 5 8 20 37 14 832 Improvement of cost cosciousness 5 7 8 7 273 Improvement of problem andimprovement consciousness 2 2 15 27 17 634 Improvement of problem-solvingbilit

2 2 15 29 15 635 Improvement of self management 4 17 20 10 516 Improvement of morale 4 18 12 14 487 Human resources development 1 8 11 9 29

5 Socialcontribution

1Responsibility and contribution tocustomer and society 1 1 5 1 81 Making the joyful quality of workinglif

1 3 13 7 242 Improvement of employee's welfare 1 1 1 1 1 53 Build up of labor relations excellent 2 1 1 4

Table 2.6 Intangible Effects of TQM Activities in Deming Prize recipients enterprises

6 Employeewelfare

Remarks

Noriaki Kano and Kozo Koura(1991) "Development of Quality Control seen throoughCompanies Awarded the Deming Prize" and Report of Statistical Application Research,Vol. 37, 1990-1991, pp. 79-109, JUSE be revised in 1995. * are included the ma

AgeIntangible effect No. of co.

1Management

aspect

2 Qualityassurance

aspect

3 Attitudeand

technologyaspect

4 Humanaspect

23

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. 2.4 Multi Time Recipient Companies

The effect that excelled from another in an intangible effect and a lot of companies had achieved was "Establishment of all company cooperative relationship”. All recipient enterprises actually challenge the Deming Prize, experience all company cooperative relationship establishment of participation, experience a sense of mastery, and come to have confidence, and the approach on the way of work afterwards changes.

24

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

25

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)

Small and Medium Company Prize Application Prize Shinwa Industry 1982 1989 (AISIN Shinwa*) AISIN Light Metals 1983 1988 Hoyo Seiki 1985 1990 (AISIN Hoyo*) Opeation Business Unit Application Prize Sekisui Chemical 1975 (Tokyo factory) 1979 (all companies) Japan Steel Works 1979 (Hiroshima factory) 1983 (all companies)

Application Prize Japan Quality Medal Fuji Steel/ Yahata Steel 1951 1975 (Nippon Steel Corporation**) NEC Corporation 1952 1973 Komatsu Manufacturing 1964 1981 (Komatsu*) Toyota Motor1965 1970 Toyota Auto Body 1970 1980 AISIN Seiki 1972 1977,1990 *** AISIN Warner 1977 1982,1991*(AISIN AW) Takenaka Corporaion 1979 1992 Takaoka Industry 1980 1985 (AISIN Takaoka*) AISIN Chemical 1987 1992 AISIN Light Metals 1988 1994

Application Prize Operation Business Unit Nissan Motor 1959 1992 (Oppama Plant) * Name change after it wins, ** Two companies merge in 1969 *** Win Japan Quality Medale again.

26

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.

2.5. Social Influence Process of Deming Prize

It is necessary to clarify the process to obtaining material and the intangible effects introduces by Chapter 2 paragraph 3 by the influence of the Deming Prize winning. The following four points are thought as this process.

(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. 2.5.1 Social Influence of QC Circle Activities (A) Birth and nationwide spread of QC Circle activities

The QC Circle activity starts in 1951 the movement of the issue and Workshp QC Study Meeting of the quality control text for the foreman, is held panel discussion sub-section of "Duty of the forman in QA" of the 11th QC Conference in November 1961, and the demand of "Magazine for the Forman" requested. The editolial committee started the issue of the sister magazine of "Quality Control" while the recognition of importance of the Quality Control in the workshop rose and "Genba-To-QC" magazine were started in April, 1962. The edit chairman and the late Professor Dr. Kaoru Ishikawa (professor of The University of Tokyo and president of Musashi Institute of Technology afterwards at that time) calls, "Let's make a small group named ‘QC Circle’ in each workshop (Genba), study eachother around 'Genba and QC' magazine, and advance the QC activities of the workshop". { General Principle of the QC Circle (1970)[4], How to operate QC Circle Activities [5](1997)} that starts from naming of the group "QC Circle".

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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.

Unit: No. of QC Circle registration (10,000 circles), No. of QC Circle members (100,000 peoples), No. of QC Circle Conventions holding (10 times), No. of QC Circle Convention participants (10,000 peoples), and papers numbers (100)

Fig. 2.2 No. of QCC registrations, Members, QCC Convensions, Participants, Presentations

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.

No. of QCC registration, Members, QCC Conventions(QCCC), Participants, Presentation

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

1962

1966

1970

1974

1978

1982

1986

1990

1994

1998

2002

Fiscal Year

Num

ber

(x 1

00)

No. of Circle

Number of QCmembersNo. of QCC

No. of participantsto QCCNo. of Pesentationat QCC

28

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. (B) Dr. Juran and QC Circle activity

The 14th quality circle rally is held by sponsoring the Kanto branch at the Daiichi Insurance Hall in Tokyo on Wednesday, April 20, 1966, and Dr. Juran who participated in this and sign to Q Flag as follow,

“The QC Circle Concept is on the Road to World Quality Leadership.”

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.

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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. (C) Participation method and QC Circle

Various participation methods of Zero Defects (ZD) movement (United States), Scanlon plan (United States), Stakhanovism, Saratov method (Soviet Union), DORO: Dobra Robota = good work (Poland), and the proposal system, etc. developed in 1960's. The comparison between these activity and QC Circle becomes as Table 2.8, etc. (Koura [8]).

Work is organized and has been executed by the Taylor principle in Europe and America (especially, United States) at the time of beginning of 1960's. As for the Taylor, there was a difference extremely between engineer at that time and worker's abilities, educational extent of the worker was also low, and it reached the conclusion said that even the foreman technical knowledge was insufficient to decide it concerning the process and the work method. In Scientific Management Theory, it proposed the division of labor theory, that is, "Separation between Plan and Work" and, "Engineer made the Operation Standard, and the worker defended the Operation Standard". This method improved the work efficiency, and was a method in which the mistake is few. However, this caused "Sense of alienation", and it became a loss of "Worth (Joy) of Work" and "Quality Conciousness" for worked in the Modern Industrialization Society. This came in the place where today's Behavioral Scientist that started from "Human Relationship Theory" discussed it. The concept of "The worker does the repetition work that the head is not used as well as the machine" is basically the contradiction to the human nature and the educational extent of worker improves, and the one by having become very small "Difference between engineer and worker's knowledge and technological abilities" that was Taylor's precondition.

Japan started in an age yet not established of the history of the Scientific

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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. It is thought that it flowered in QC Circle activities as a link in the chain of TQC.

Dr. Juran described this that the difference of the knowledge ability of both (engineer and worker) decreased on this day of the 21st century and such an idea was old (obsolescence of Taylor Principle) and explained, "One more than the motivation theory" (Koura, Hattori, Fukai [9], and Juran [6]).

(D) Fundamental of the QC Circle

The QC Circle Koryo - Fundamental of QC Circle - in November 1970, the Basis of the QC Circle activity management in October 1971 was published and the idea and management method became clear. Both books are translated into the each country word including English and spreaded. The countries that have introduced QC Circle are 72 countries. 1400 people participated in International Convention on QC Circles, Tokyo, 2003 held at Keio Plaza Hotel, Shinjuku, in Tokyo, from 22 countries in the world that centered on Asia on October 7-10, 2003.

Item Motivatin of another country QC Circle

Quality failureIt depends on worker's fault,indifference, and Go-slow strike.

The cause of the defect is understoodonly after analyzed appropriately in each

Training ofanalyticaltechnique

The worker is engaged in theduty decided at all time.

The worker have to be training about theusage of an analytical technique.

Manager's ideaIt doesn't like sparing of thetime of the worker somewhat tothe quality issue.

It includes it in the analysis at workinghours.

Leadership

It is suitable for the solution ofthe problem understandingwithout training thatdemonstrates the leadership forthe problem solving in the

It is trained so that the worker and thecircle member may demonstrate theleadership for the problem solving.

Table 2.8 Comparison of Motivation between another and QC Circle (Juran)

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Next, when you introduce "Fundamental of the QC Circle" (QC Circle Headquarters [5])

Fundamental of the QC Circle What is the QC Circle?

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.

This small group

voluntarily perform on its managements, utilize the idea and the technique etc. of QC, demonstrate creativity, attempt self-development and mutual development,

carries on the activities.

This activity aim at the QC Circle member's ability improvement and self-actualization, building the brightly, vitality filled, and happy bright workshop, contribution to society and improvement of customer satisfaction.

The management person and the manager,

for making this activities contribute to the improvement of company constitution and the development of the company, locates it as an important activities of the human development and the workshop activation, voluntarily practice all company activities such as TQM and guid and support by the aim of respect humanity and every member participation.

Basic Idea of QC Circle Activities

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.

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. 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.

The followings are referring companies:

Vehicle Toyota group (12 companies) DENSO group (5 companies) AISIN group (13 companies) Hino group (7 companies) Nissan Motor group (2 companies 3 plants)

Industrial machine Komatsu group (6 companies) Electric NEC group (8 companies)

Total (53 companies 3 plants)

In addition, the following stated enterprises were splendidly supporting and encourageing for their TQM implementation program; Takenaka Corporation (Deming Prize in 1979 and JQM recipient in 1992), Maeda Construction Industry Co., Ltd. (Deming Prize in 1989 and JQM recipient in 1995), and Kansai Electric Power Company (Deming Prize recipient in 1984), were supporing for their cooperating companies TQM implementation and Fuji Xerox (Deming Prize recipient in 1980) played a pioneer role of the TQM promotion as a member of the Xerox group.

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Table 2.9 Example of GWQM enterprise group in Deming Prize recipient enterprise

34

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.

(B) Reason for GWQM Introduction It was recognized for their definite back story for GWQM Introduction needs, (1) TQM is a powerful weapon (Toyota [15]) in the improvement of company

constitution. (2) So far being to guarantee own product quality for customer, regardkess either

own and syppliers product, it is absolutely necessary for assemblers to have to implement TQM for assuring not only supplier product/part or material, but own product, sales, and services. (Oura [16], Yamada [17], and Fuji, Yoshikawa, Harada [18]).

(3) To proceed for Quality Improvement and Total Cost Reduction, it is highly necessary for close collaboration between own TQM and their TQM. (Oura [16], Yamada [17], Fuji, Yoshikawa, Harada [18]).

(C) Type of GWQM

It is classified into 3 types of implementing by industries, depending on. (1) Component suppliers: Toyota Motor and Komatsu are belonged to this

category. (2) Related enterprise (Including branch company and tie-up company): AISIN,

Hino Motors, and NEC. (3) Various kinds of cooperating enterprises related with product and service

works: Takenaka Komuten and Kansai Electric Power Company.

(D) GWQM implementation processing (1) Their fundamental requirment

It is processing through following status sequences. (a) Dissemination of policy for GWQM by Top Management (b) Structuring of GWQM implementation ortganization (including Joint

collabpration and cooperation system with suppliers and dealers such as cooperation association and dealer association)

(c) Education and training system for group members company

35

(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.

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Table 2.10 Main Quality Awards that Xerox group had won

1980 Fuji Xerox, Japan, Deming Prize

1984 Rank Xerox U.K., Mitcheldean British Quality Award

1986 Rank Xerox U.K., Welwyn Garden City British Quality Award

1987 Rank Xerox France, French Government Citation

1989 Xerox Canada Inc., National Quality Award

1989 Rank Xerox U.K., British Standards Institute Mark of Quality

1989 Xerox Corp. (U.S.), Malcolm Baldrige National Quality Award

1990 Rank Xerox Netherlands, Netherlands Quality Award

1990 Rank Xerox Australia, Australian National Quality Award

1990 Rank Xerox Mexico, Mexican National Quality Award

1992 Rank Xerox Limited, European Quality Award

1992 Rank Xerox Ireland, Irish Quality Association Quality Mark

1992 Rank Xerox Belgium, National Quality Award

1992 Rank Xerox Hong Kong, Hong Kong Management

Association Quality Award

1992 Xerox de Columbia, Columbia Quality Award

1993 Xerox do Brazil, Brazilian Quality Award

1993 Rank Xerox Denmark, Danish Quality award

1993 Rank Xerox Ltd,. Qimpro Platinum Standard Award for TQM

1994 Rank Xerox Norway, Norwegian Quality Award

1994 Rank Xerox Portugal, Portuguese Quality Award

1994 Xerox de Argentina, Argetine National Quality Award

1995 Xerox de Uruguay, Uruguay Natonal Quality Award

1995 Rank Xerox Scotland, Scotland Business Excellece Quality Award

1996 Rank Xerox Middle East/Africa, Dubai Quality Award

1997 Xerox Business Service, Malcolm Baldrige National Quality Award

ox Maryland Virginia, CBU Gold Medallion U.S. Senate Productivity and Quality

Award for the State of Virginia

1999 Servetique Network Service France, European Quality Award

1999 The First Centeral Sales Headquarters Fuji Xerox, Japan Quality Award

28 companies in total

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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]).

(E) Education and training (1) Objectives of education and training

Every enterprise has their own policy and objectives for education and training respectively as part of TQM promotion. Fig. 2.3 is a typical example in Toyota Motor (The source: From the TOYOTA MOTOR CORPORATION offer material).

Fig. 2.3 Education Purpose of Toyota Motor Co. Ltd.

(2) Education by Hierarchy Every enterprise emphasized the TQM education to members company. The courses were covered from Top Management to foreman and group leader, and the education of Top Management is especially focussed (Table 2.11) (Table 2.12) (The source: From the TOYOTA MOTOR CORPORATION offer material) (Table 2.13) (Oura [16]).

These education courses were divided into In-house and External education and training program which external one relied on JUSE, JSA, Central Quality Control Association (CQCA), and the Production Science Association (PSA), etc. sponsored an

Master

Business accomplishment

Set Education Course

Practice Improvement

and Control

Ability

Self-multivationg Study or Case Study Presentation Meeting

Study

38

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.

Table 2.11 Company-wide Educational System Common Education Professinal Educations

Engineer Technician Engineer Technician & Cleark & Cleark Functional & Hierarchical training * QC education ･ Theme management training * Toyota Production System

(Director and general manager) * Standard work & improvement

･ General manager & SL training * Electronics education

,･Management lecture meeting * Each country word education

(Vice-chief class is indispensability)

The QC education & problem

solving education to all

members of new employee &

shop chief – foreman class

are executed. ･Education of New Employee

Domestic Foreign countries Various education to shop 1. Various education of distributor

* Business manager staff *Sales charge and manager

* Mechanic education to service * Mechanic instructor education

reception desk 2. Employee of overseas production

* QC education etc factory etc.

Because every TQM promoting and implementing enterprise in Japan have been following through same processes to learn by such baptized instructors in house who were capable to teach in house education and training at QC Basic

Employee

Parties

39

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.

Table 2.12 QC Education Courses in Toyota Motor

For Course Name Kinds of Course

In-house Dispatch

Course outside

Director special course ◯ Directors Senior management course ◯

Directors training meeting ◯ Manager Reliability Manager course ◎

Section ChiefQC Circle training of Manager & Chief ◯

SQC special staff course ◯ SQC advanced course ◎ Sensory Evaluation seminar ◯ Reliability seminar special course ◯

Engineer Reliability Professional course ◎ Multivariate analysis method ◎ special course Design of experiment method seminar ◯ Design of experiment method ◎ special course QC Basic course ◯ SQC Basic course ◎ SQC Introduction course for ◯ new employee

Supervisor QC Circle Facilitator course ◎ Problem Solving Instructor course ◎

Tchnician (Educational course of department) ◯ Remarks ◎: participates from the Toyota group.

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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. ) (3) Problem solving practice training

“All Toyota SQC Study and Training Guidance” in Toyota Motor was organized for fostering of key personel at each workshop who can practically be instructing Quality Control concept at each workshop in 1966. The members were selected from staff in 12 companies that were QM Liaison Group and assigned to three sections as "Design and evaluation", "Process design", and "Process control" under monthly session (Table 2.14) (The source: From the TOYOTA MOTOR CORPORATION offer material). In addition case, Fuji Xerox has installed "Southeast Asian trainee supporting system" since 1977 (Akiba 19).

(4) QM Conference and QC Circle Convention Most of QM and QC Circle activities implementing companies have organized

for encouragement and recognition of employee and middle managers, following type of assembly were organized by annual or semi-annual program.

All xxx QM Conference (section chiefs and managers) All xxx QC Circle Convention

(F) Quality Control Award in-group enterprise To encourage the TQM promotion and implementation of a related company,

each company enacts the xxx Quality Control Award. If one example is enumerated, it is as shown in the Table 2.15.

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Table 2.14 Three Sub-meetings and its Objectives

Training of how to calculate

Reliability and Optimum design elements concerning design and evaluation.

Training of Production Engineering

for Process Design.

Training of Maintenance, improvement of process, and inspection

Table 2.15 Quality Control Award of GWQM enterprise group

*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.

Name/Year Toyota QC Award 1970-1994 Komatsu QC Award 1976-1995 Takenaka QC Award 1984-1994 Fuji Xerox QC Award 1985-1995

Type: * 1 QC Award Excellent Prize QC Award Excellent prize Excellent prize Superior prize QC Award Quality Recognition Factory

No. of recipient companies 43

11 84 6 20 4 2 7

No. of group companies Kyohokai 245 Eihokai 78 Total 323 Midorikai, Komatsu Object companies 93 ＊ 2 Takewakai 1394 Kyoeikai 133

Design and evaluation Sub-section

Process design sub-section

Process control sub-section

12 QM Manager meeting with member companies

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(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]).

(H) Application of Deming Prize and JQM It was observed that Group-wide Quality Award recipient in each group member

company were eventually challenging to Deming Prize and JQM applicatication. Such cases were observed in the Toyota group (from the Toyota prize to Deming Prize), AISAN Industry (1992 from 1970), Toyoda Gosei (1985 from 1971), and the Tokai Rika Electric Machine (1978 from 1976).

In the AISIN group concern, after AISIN Co., Ltd. and AISIN AW Co., Ltd. were recognized as recipient, late Mr. Minoru Toyota Honored Counselor (Deming Prize Individual Prize recipient in 1983) proposed "Let’s challenge for improving to the management level of Deming Prize recipient", and 6 companies top management were responding for TQM implementation under close preparation of scenario for processing. And then, JQM recipient became supporter for guidance recently, the TQM implementation proguram in small and medium-sized company began, and finally AW Industry (1994) and Koritsu Industry (1994) were hornored for Deming Prize recipient company.

In Komatsu, each plant were supporting for guidance of their member company of Komatsu Midori Association, then, the Deming Prize does apply according to the classification of each cooperation company.

43

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

(I) Effectiveness and something consideration on promotion

(1) Effectivnesses The effectiveness for their constitution improvement in cooperation companys though TQM were observed as same as other improvement schievement, but as for effectivenesses by Group-wide TQM promotion are as followed;

(a) It comes to be able to mutual communication were expedite and rapid by a common terminology and conciousness improvement.

(b) Human relationship throughout entire group is improved and eventually it is possible to improve with cooperation of other company of group that is now "Heading the new 21st century under all one's energy demonstrating of all xxx. "

(c) Total Quality improvement and Total Cost reduction project can proceed by group-wide efforts.

(d) Close cooperation by the network between individual enterprises are now possible to expedite for the speed of planning, development, production, sales, and service organization contact improves, and the group-wide activities that agility and mobility overflows brilliantly is expected by the development of information technology.

(2) Something cosideration on promotion (a) It is necessary for parent company and cooperation company to proceed on

self-evaluate based on "10 principles of vendee-vender relation of QC". (b) Parent company is necessary,

① The parents company show the example of the TQM promotion. ② Deepen understanding and communications of top management in group

company. ③ Do not become pressing TQM, and do promote it as best suits tailored to

constitution of the group company. ④ Clarify own purpose, objectives, goal, and the policy of the TQM

introduction. ⑤ Do not attach, do not part, and bear an independent improvement and the

ability improvement of the group Company in mind. (c) Group companies is necessary, ① Top management must have understanding and zeal of TQM and

promote. ② Establish, and implement TQM promotion plan suitable for its own the

realities.

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③Proceed to organize TQM promotion and implementing organization according to the constitution.

④Use their support of parents company and cooperation association, etc.

(J) Group management and GWQM of Toyota group The KEIRETSU of Toyota group has long historical tradition. When Motomachi

factory complete on 1959, concentration of the quality and amount stable supplying parts supplier was demanded around the factory in order to keep reduction of inventories effects by JIT it was promoted before. And then the Technical Guidance Policy for Special subcontracting factory under “Autoparts Control Bylaw” declared by Mr. Kiitiro Toyoda on February 1940 was similar to “Instruction of Improvement of Management and Technology, Financial Support for subcontracting factory” in “Subcontractor Certification System” of the Commerce and Industry Ministry in 1941, and this idea was considered the policy of Level Up of an affiliated factory to be raised the level until JIT is enabled and was effective (Negishi [23]). In addition to their policy, TQC introduction in Toyota would be effective for JIT processing on (Nemoto [18]). While being implementing JIT in Toyota, various strategy management such as M&A exercise and new age "KEIRETSU" construction were done corresponding to the change in the business environment flow (Nihon Keizai Shinbun [25], [26]). However, the Group Management concept didn't change. It becomes management philosophy of Toyota, and the KEIRETSU criticism of the United States also countered for. (Nihon Keizai Shinbun [27], [28]). There is a history flowed to the basis that had made an effort to the construction of Toyota Production System (TPS) with both of Toyota and Kyoho Association (Toyota Suppliers Association) member enterprise since Motomachi factory completion, and the construction of the cross promotion of neither mutual development and nor mutual exchange through TQM are forgotten in the backing. The way of GWQM program of the Toyota group is similar in the USA. On the other hand, Toyota that aims to achieve “Best Procurement in the World” is maintaining the affiliate in the meaning "Both are firmly lied with for achieving Coexistence and Co-prosperity " now. However, it can be asserted, "There is no fact of business relationship have only been with the manufacturer of affiliated company while being shared the stocks by each other".

Fig. 2.4 are "Division of labor structure chart of the car production" issued by JAMA (Japan Automobile Manufacturers Association) Report in 1991 [29], and which are explained affiliated structure of Japan Car Industry is shown. According this report, “A” company was produced 30% in-house and 70% suppliers, and

For in-house production: 2nd sub – contractors; 500 – 600 For suppliers : 1st sub – contractors; 156

: 2rd sub- contractors; 2000 – 3000 For both : 3rd sub- contractors; 7000 – 10000

45

For raw material : 200 – 300 This is, 9800 – 14000 enterprizes are participated for accompany in a group.

Fig. 2.4 JAMA Report "Division Structure Chart of Car Production” ("Small and medium-sized company white paper" 1991 year version)

Finished car manufacturer

(In-house mfg. rate is 31%)

Assembly Part

Materials

manufacturer:

200-300

companies

First goods assembly

Capital A Cooperation Company of A

38 companies 118 companies

Functional component, inside and

exterior parts,

Machining and press work

Secondarily assembly processing

2000-3000 companies

Press work, platings, cutting, screws, and

casts, and forged parts.

Secondary part

processing, Plant

equipment

500-600 companies

Same left, tools,

jig, metal mold,

Secondary less part processing manufacturers

7000-10000 companies

46

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

47

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.

Support

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)

Overseas parts manufacturer They are also delivering to other offer manufacturers that numbers are unknown: Only TMM is about 300 companies.

Cooperation companies: Kyouhou association: 190 companies of manufacturer related to components Eihou association: 66 companies of manufacturer related to equipment

Toyota group Toyoda Industries, Aichi Steel Works, Toyota Machine Works, Toyota Auto Body, AISIN*, DENSO*, Toyota Spinning & Weaving, Kanto Auto Works, Toyota Gosei. Associated company Hino Motors*, Daihatsu, Total: 14 companies.

Toyota Motor Corp.

TSSC** USA

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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. (K) KEIRETSU and GWQM

Burt & Doyle [30] describes the affiliate as follows. 『The Japanese type KEIRETSU system has two elements, the horizontal and vertical. The horizontal receives a sharp criticism from the United States business and political leaders and disturbs the application of a present, American Antitrust Law. Vertical contains an important principle, for instance, “Design-to-Cost" (It is called Design-In) and the many are an applicable one even in the United States business environment. However, is done by the existing weak point as for it. 』

Though the comparison table of both was shown in Table 2.16.

(1) It is recognized that difference is cause by basic philosophy between the KEIRETSU and GWQM.

The vendor and it cooperation company in GWQM based on "10 Principles of the Vendee–Vender Relation of QC ". It is established their objectives are basically contribution to improvement of weak point of company and its constitution that are heading to achieve common objective - Customer

49

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]).

Table 2.16 Comparison between KEIRETSU and GWQM KEIRETSU Comparison Item

Vertical Horizontal GWQM

Parent and child relation Or Relativity relation.

Parts processing and production of final product. Offering investment and capital. Furnishing Techincal guidance. Despatching of director.

Techincal tie-up. Joint development. Ordering of parts of product. Establishment of joint venture company.

Quality Assurance for CS. QM guidance and education and training in enterprise. QM Diagnosis and Enterprise Evaluation system. XX Company Quality Award. QM Conference, QC Circle Convention and Exchange meeting of the entire group.

Situation It is always done. Each time when necessary.

It is always routinized.

Style Relation that is ruled the small and medium-sized enterprise by big enterprise.

It is not clearly to rule or not to rule.

Equal level between purchaser and seller (Vendee-Vender) relation. Brother enterprise. Sharing of common business philosophy and way of thinking.

Merit Cheaper cost. Absorption of New technology. Steady relationship.

Technology improvement and complement by tie-up. Shared Scale merit.

Improvement of Quality Assurance. Cost reduction. Improvement of company constitution.

That is, GWQM is processing on for customer satisfaction under common objectives by enterprise group with TQM and where each company TQM that are mutually collaborating and supporting under equal and same level situations. GWQM is organizing to follow for ”Win-Win” concept each other in business relationship, utilizing “Design-to-Cost” concept for new product

50

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]).

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(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)

In addition, the Vision Management (Management by Vision) is observed in other document (Vision Management Case Study Committee, JSQC [33]). Moreover, if being interesting in the details of “AISIN group management”, the book by the counselor of this company, Mr. Kiyoshi Ito [34] will be available for your reference very much.

(2) It is highly recommended to folow “10 Principles of Vendee-Vender relation of QC” for GWQM implementation.

(3) It is highly necessary for parent company to organize supporting organization for collaboration companies and physical action to support until they could be proceeding independence TQM activities, and further to have then advance for each group-wide QC Award and puresuade to challenge and receive for Deming Prize.

Under the same token, cooperate companies in America and Europe are recommended to challenge either MBNQA or EQA as mentioned before. For instance, Xerox affiliates have been counted 28 companies of each country quality award recipients all over the world.

(4) The support service by leading company and senior company, that is, the continuous operation of education and training, QM guidance, QM Conference, QC Circle Convention, and company evaluation system will foster the cooperation company. It is preferable to promote TQM that these programs are expanded even to the small and medium-sized company with business relationship further and promoted thick layer of TQM in the industrial world.

(5) KEIRETSU and GWQM It is analized for KEIRETSU system as structured by vertical and horizontal, however the horizontal receives the criticism as violention to application side of

52

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.

2.5.3 Construction of Social System around TQM

A social system around TQM in Japan is as follows. (A) Social system related to TQM (Fig. 2.6)

The main group related to TQM in Japan: now. (1) Japanese Society for Quality Control (JSQC; establishment in April 1971) (2) Japanese Standards Association (JSA; establishment in December 1945) (3) Japan Productivity Center for Socio-Economic Development (JPC-SED)

(4) Central QC Association (CQCA: established in April 1971) (5) Union of Japanese Scientists and Engineers (JUSE; establishment in May 1946) (6) Japan Management Association (7) Japanese Plant Maintenance Association (8) Japan Production Science Association (Establishment in October 1968)

The organization mentioned in the above have been functioning under the core organization QCRG suggestion with sacrificing effort by physical implementing various professional and operational group organization as shown in Fig. 2.6.

The Japanese quality control concept implementation has been disseminated under a core body of QCRG guidance with professional operational organization mentioned in the above, and industrial enterprise, university, governmental organization supporting and overseas guidance.

53

Fig. 2.6 Social Systems around TQM

54

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.

(B) Social contribution by TQM diagnostic system

The expert QC instructors supported for Deming Prize application preparation at each recipient industries, and further continually mutual edification between instructors and engineers in recipient industries, and/or some companies were organized such mutual study relationship with other interesting companies. As for expeditions, QC Conference (present Quality Forum) have socially been contributing for such interesting chance offering. Further, as for technical interchanging scheme in industrial sectors concerns, similar technical interchanging of supporting scheme by friendship collaboration were observed at the time of official examination for JIS (Japan Industrial Standardization) qualification application, for Excellent Standardized Plant Qualification Application and for Exellent QC on Industrial Housing-Construction Industry recognition application. (C) Rearing of Successor

Every Quality based professional organizations (JUSE, JSA, and CQCA etc) have organized periodic seminars, symposiums, and conferences that members of QCRG and young engineer had a chance to interchange, discuss of debate under intention of successor education, and also to contribute for mutual learning between expert members.

(D) Expansion of area and thickness of QC population

The National QC Circle organization are structured by a Head Quarters and 9 Branches offices, which are responsible for not only QC Circle activity propagation and expansion, but intercommunication and mutual development between industries and QC staffs of company were encouraged and challenged for further development. Under such circumstances, while QC Circle activity have been progressed, their contribution for people building andrearing of human resources were basically cause of joint work of industry, academic and government coordination.

(E) Deming Prize recipient

In retrospect on TQC implementing history for last 50 teras, while heading for “Quality Innovation” concept after the World War II, one of company groups was practicing TQC into processing as a leader among Japanese Industries, whidh was recognized as one of Deming Prize Prize recipient company (JQM is included). As before mentioned in the preceding chapter, the Deming Prize recipients were beginning

55

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.

Professor Kogure prepared "Deming Prize recipient company list chart by

Industries and by fiscal year", and mentioned as follows (Kogure [35]). “The influence of Deming Prize were surprisingly great effects in Japanese

Industry, while enthusiastically implementing TQC concept into production processes, they were established one of major goal to be recognized for ‘The Deming Prize recipient’ under exerting themselves to the utmost objectives. ----- and which implementin industries were strarted at Chemical, Pharmaceutical, and Steel Industry like in Device Industries at first, then to Electric, Electronics, Communication, Machining Conponent factories and Assembling Industries, further expanding to Car Industries and their related companies , and lately are extended to Construction and Service Industries, now.“ (author summary).

In addition, the JQM is established for commemoration of the first International Conference on Quality Control (ICQC), Tokyo on October 1969 to encourage for "Upgrading of the TQC implementing level at Deming Prize recipient industries" to attain to such higher level. Evry industries are necessary effort firstly for Deming Prize application for 3 to 5 years after TQC implementation, and another 3-5 years for Deming Prize challenging, then next 5 years (3 years, now) for JQM, such as 8-10 years long hard endeavor would be necessary to be recognized. As for remarks, these awards are recognized fortheir achievement by annual performance that they can apply as many as they wish in every year. For instance, AISIN Co., Ltd was recognized the first Deming Prize in 1972, and JQM in 1977, then 13 years later again challenged to JQM and recognized in 1990. The social system in Japan have been sustaining sound and stable function for long time since 1951 that TQC in Japan would be following the track of quality level of the top of the TQC execution at the Deming Prize level (JQM is included) to the utmost.

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.

2.5.4 Various Activities supported for TQM Promotion

As shown in Fig. 2.7, various supporting activities of nation-wide TQC Implentation were proposed and executed by joint work of industry, academy and government. Among of the above, QCRG was a focal organization for Quality Control

56

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].

57

Fig. 2.7. Various Activities of promoting TQM

58

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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.

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36. J.M. Juran: Up-coming century of Quality, Quality Progress, August 1994, pp.29-37. (Keynote Address, ASQ 48th AQC, May 24, 1994).

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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. Research subject 1: Propagation of quality award in the world

(1) Was the “Deming Prize” an origin of Quality Award? (2) How was “Quality Award” propagated? (3) How were TQM reflected into criteria item of the Quality Award?

Research subject 2: Quality award in USA (1) Why did USA enact the Malcolm Baldrige National Quality Award? (2) What did each State Quality Award enactment mean in USA? (3) Why they were propagated into North and South America, Europe and Asia?

Research subject 3: Quality award in European Contries (1) Why did European Foundation for Quality Management enact European

Quality Award? (2) What did the propagation of the Quality Award to each country in Europe mean?

Research subject 4: Social influence by Quality Award (1) What kinds of influences were observed in each recipient companies? (2) What kinds of social and economical influences were observed in each country by

Quality Award establishment?

3.1 Propagation of Quality Awards 3.1.1 TQM Activities Verification Visit Status to Japan from each Country

Product made-in-Japan were begun to be recognized on their quality excellence in 1970s, which were eventually contributing for rapid increasing on export and the active trade balance (Kano & Koura [1]), which were trigger for re-recognition of importance of TQM.

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

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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.

Table 3.1 JUSE Visit Situation from each country

Annual

No. of

countries

Group &

individual

No. of

total people Annual

No. of

countries

Group &

individual

No. of

total people

1979 13 33 255 1991 44 136 1167

1980 25 78 375 1992 48 150 1044

1981 28 134 648 1993 40 87 760

1982 48 163 932 1994 38 72 576

1983 48 154 932 1995 42 68 1204

1984 46 176 980 1996 57 48 863

1985 50 169 1246 1997 70 29 730

1986 49 147 847 1998 62 38 482

1987 46 159 787 1999 49 38 293

1988 46 183 1216 2000 18 16 356

1989 35 160 1250 2001 40 20 290

1990 38 127 1468

Remarks

Asia: 35 and South and North America: 22 and Oceania: 4 and Europe: 28 and Africa:

26 and 115 in total countries

3.1.2 Propagation of Quality Awards to each Country

As for quality award concern, they were classified into two kinds of issues by Government issues and Piblic issues. According to the papers of Jonson [2], Hromi [3], and Data published by Japan Business Management Quality Council, as shown Table 3.2, 18 countries of 65 countries (including EQA) are issued their criteria for awarding as of 2003 information, it could be established as such, but it were not available at the time of studying. Figure 3.1 is showing a route of the Quality Award propagation in the world-wide level. It could be assumed that USA would be recognized for value and

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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,

Israel, Japan, Lithuania, Malaysia, Philipines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand

16 (1)

Oceania Australia, Fiji, New Zealand 3 North & South America America, Argentina, Brazil, Canada, Chile,

Colombia, Ecuador, Havana, Mexico, Peru, Puerto Rico, Uruguay

12

Europe EQA, Austria, Belgium, Croatia, Czech Republic, 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

31

Africa Nigeria, Mauritius, South Africa 3 Total sum 65

Note) The country that was the underline is a country that obtained evaluation criteria.

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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]).

3.1.3 Type of Nationa Quality Awards in each Country

Quality awareness concept have been is spreading over all countries, and a lot of countries have already been installed their own Quality Award in South America,

Fig. 3.1 Propagation Route of Quality Award in the World

EQA propagated to all Europe and Africa.

MBNQA propagated to north and soouth America, and Oceania.

DP became the motive to enact MBNQA (1987).

MBNQA became the Motive to found the EFQM (1988) and to establish EQA (1991).

MBNQA became the model of establishment JQA (1995).

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Fig. 3.2 Type of National Quality Award

Table 3.3 Classification Table of Quality Award Types (it overlaps exist)

Region Japan American European Asia

(except Japan)

Oceania

Japan Quality M

edalrol

Dem

ing Prize

Enterprise

Quality

Aaward

Japan Quality Aw

ard

Malcom Boldorige

National Quality

Award

State or regional

quality award

48 prizes in 36

Enterprise Quality

Award (Ford etc.)

Each country Quality

Award (6 countries)

European

Quality

Award

Quality

Award in

Each

country

of

Europe

Each country

quality

award

Asia 11

Oceania 2

13 countries

(except Hong

Kong)

Quality

Award

Deming

Prize Malcom Boldorige National

Quality Award

European

Quality

Award

MBNQA,

originality,

ISO9000

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

Type

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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.

In Apendix A, "Country already instituted for National Quality Award, under studying status, and interesting countries status table" are prepared. It is covered for Official Name, Year of Institued, Category, Criteria at present, or other related information available, through which it is also identified that some countries are interested in for National Quality Award scheme, and hope for technical assistance including Africa. About the category, it has been understood as follows, Rank: Most Excellence award, Excellence award Enterprise: Large Enterprise, Small & Medium Sized Enterprise, Subsidiary Company,

Related companies, and individual Industrial classification: Manufacturing, Service, Education, Health Care, Public, and

Government . Appendix A: Table of Countries enact, study, and concern to NQA

Further, preparing for a table of criteria item in countries where criteria are announced as followd;

Appendix B: List of NQAs in Asia Appendix C: List of NQAs in North and South America Appendix D: List of NQAs in Europe Those appended it as reference. 3.2 Foundation of Malcolm Baldrige National Quality Award 3.2.1 Malcolm Baldridge National Quality Improvement Act in 1987

The Malcolm Boldrige National Quality Award was enacted by President Reagan's signature as Civil Law 100-107 on August 20, 1987. The intention of the foundation of the Malcolm Boldrige National Quality Award is specified in the minutes of Congress, and it is the following to have made the main part. (The source: From the NIST; National Quality Program offer material)

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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

To amend the Stevenson-Wydler Technology Innovation Act 1980 to establish the Malcolm Baldrige National Quality Award, with the objective of encourageing American business and other organizations to practice effective quality control in the provision of their goods and services.

Be it enact by the Senate and House of Representatives of the United States of America in Congress assembled. SECTION 1. SHORT TITLE. This Act may be citec as the “Malcom Baldrige National Quality Improvement Act of 1987". SEC. 2. FINDING AND PURPOSE.

(a) FINDINGS.- The Congress finds and declares that- (1) The leadership of the United States in product and process quality has

been challenged strongly (and sometimes successfully) by foreign competition, and our Nation’s productivity growth has improved less than our competitors two decades;

(2) American business and industry are beginning to understand that poor quality costs companies as much as 20 percent of sales revenues nationally, and that improved quality of goods and services goes hand in hand with improved productivity, lower costs, and increased profitability;

(3) Strategic planning for quality and quality improvement programs, through acommitment to excellence in manufacturing and services, are becoming more and more essential to the well-being of our Nation’s economy and our ability to compet effectively in the global marketplace;

(4) Impeoved management understanding of the factory floor, worker involvment in quality, and greater emphasis on statistical process control can lead to dramatic improvement in the cost and quality of manufactured products;

(5) the concept of quality improvement is directly applicable to small companies as well as large, to service industries as well as manufacturing, and to the public sector as well as private enterprise;

(6) in order to be successful, quality improvement programs must be

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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.

SEC. 3. ESTABLISHMENT OF THE MALCOLM BALDRIGE NATIONAL QUALITY

AWARD PROGRAM (a) IN GENERAL. – The Stevenson – Wydler Technology Innvation Act of 1980 (15 U.S.C. 3701 et seq.) is amended by redesignating sections 16, 17, and 18 as sections 17, 18, and 19, respectively, and by inserting after section 15 the following new section:

"SEC. 16 MALCOLM BALDRIGE NATIONAL QUALITY AWARD" “(a) ESTABLISHMENT. - There is hereby established the Malclm Baldrige National Quality Award, which shall be evidenced by a medal bearing the inscriptions ‘Malcolm Baldrige National Quality Award’ and ‘The Quest for Excellence’. The medal shall be of such design and materials and bear such additional inscriptions as the Secretary may prescribe. (henceforth omission) “(b) MAKING and PRESENTATION OF AWARD. “(c) CATEGORIES IN WHICH AWARD MAY BE GIVEN. “(ｄ)CRITERIA FOR QULIFICATION. “(e) INFORMATION

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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]) 3.3 Foundation of European Quality Award ３．３．１ European Foundation for Quality Management (EFQM) (A) Details of European Foundation Quality Management Establishment

The idea of the business administrator organization in Western Europe arose in the meeting concerning the quality of European Committee (EC) chairman Dororl and Philips Managing Board, the business administrator in following Western Europe corresponding to Mr. van der Klugt of Philips's president calling gathered in Brussels on

70

September 15, 1988, and the quality management foundation establishment draft book was signed in chairman Dororl attendance in June, 1987 (EFQM [8], Tsuda [9]).

Funding Members (14 companies): British Telecom (telegraph and telephone, United Kingdom)

Robert Bosch GmbH (auto parts, consumer electronic, Germany) Bul S. A. (computer, France) Ciba-Geigy AG (chemistry, medicine, Switzerland) Dassault Aviation (military aircraft manufacturing, France) AB Electrolux (consumer electronics, Sweden) Fiat Auto S. p. A. (car, Italy)

KLM-Royal Dutch Airline (airlift, Netherlands) Nestle AG (food, Switzerland)

Philips Electronics N. V. (consumer electronics, Netherlands) Ing. C. Olivetti & C. S. p. A. (business machine, Italy) Renault (car, France)

Sulzer (weaving machine, Switzerland) Volkswagen AG (car, Germany).

(B) Outline of European Foundation Quality Management Establishment

Outlines of the establishment of EFQM are the following one according to “Letter of Intent” (EFQM [8]):

(1) A European enterprise is exposed to the threat in an international market in

the quality of product, the price, and service. (2) It is necessary to be tucked in the culture and the value standard of a European

industrial society through the development of an inclusive quality strategy intended for all industries and educational systems of Europe is developed and this execution is necessary for victory to these threat.

(3) Six features of quality strategy (a) Excel in the management, operation, and all in the process of the

administration. (b) Creation of corporate culture to execute continuous improvement by all

phases of business (c) Certain establishment of understanding that quality improvement increase

the price competitiveness and improves the earnings constitution of enterprise.

(d) Establishment of better relation between customer and vendor (e) Achievement of participation of all employees

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(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.

3.3.2 Purpose of Establishment of European Quality Award

The outline of establishment of the EQA depends for Roy Peacock/EFQM (The source: From 40th EOQ Congress material) is the following: (1) Inauguration in October, 1991 (2) EC, EFQM, and EOQ cooperate. (3) The first recipient: October, 1992 (4) Purpose 1) The concern for the TQM activities is concentrated with the dramatic measure.

2) The more SPUR of quality improvement of the individual and the enterprise are offered.

3) The possible results in all phase of the organizational operation are announced.

(5) Method 1) The recognition of the EQA form of the world level is acquired.

2) The highest result of the quality of the peopleand the organization in Western Europe is commended.

3) Information on the quality program is spreaded and a superior model is created.

3.3.3 Quality Status in European Countries

European countries have traditionally been proud of their craftsmanship that Quality Control and Quality Assurance and further TQM were not paid specific attention to understand and implement, which status are shown in Table 3.4 (Miyauchi [16], [17]).

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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;

(1) Lack of top management commitments, support, and involvement (2) Lack of quality policy, quality plan, and quality control (3) Insufficient employees education and training (4) Necessity for continual quality improvement plan and future visualized vision

Table 3.4 Main Forces of Quality Activity and Quality Award enactment situation

in Europe Country Inspection,

examination Quality Control

Quality Assurance

Total Quality Management

Quality 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)

It is assumed that while discussing for necessity of TQM introduction through problem analysis, such installtion of EFQM and EQA scheme could be recognized and initiated.

3.4 Foundation of Japan Quality Award 3.4.1 Start of Japan Quality Award

A private research group by the person in charge of CS (Customer Satisfaction) of the enterprise of several companies started at the early autumn of 1993 in Japan

73

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]). 3.4.2 Purpose of Japan Quality Award

It is preparing for the purpose that its own management is self-reviewing and promoting for identifying for reforming by use of the Management Quality Award and Evaluation Criteria book, a social contribution etc. as to reinforce by sharing the concept of the MBNQA and the EQA to match the level of the criteria to an international level to catch up to the level of other country. It is considered to make the distribution point 1000 full marks. And it is administrated by the Management Quality Council (Japan Productivity Center for Socio-Economic Development [18], [19]).

As the advantage of the introduction as the centeral activities of "Management

Quality Improvement Program", explain as follows;

(1) To create management constitution that gives birth to a superior achievement. (2) To clarify important improvement area on the management. (3) To verify effectiveness of the management. (4) To be able to improve self-innovation ability by the continuous improvement. (5) To be upgraded for consistency and effect of various improvement activities. 3.5 Development and Social Influence by Quality Award in each Country 3.5.1 Malcolm Baldrige National Quality Award(MBNQA) (A) Status of MBNQA recipients

Fig. 3.3 is shown for 15 years recipients status MBNQA based on the offer data of Quality Program and NIST (National Institute of Standards and Technology).

It is explained further as 871 companies (average 58.1 companies per year) were applied, 183 companies were qualified (average 12.2 companies per year), and 51 companies were recipients (average 3.4 companies per year). Moreover, MBNQA Criteria have been distributed about 1.86 million in 15 years (average 0.12 million copies per year) and the heighest score was 0.24 million copies in 1991. It is said that Web Site is a main distribution mechanism and there are download of 80,000 per month recently.

74

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

Such development might be power of the industrial policy promotion by the leadership of President.

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

MBNQA Application, Recipients, State Award/RegionalAward Application transition

0

20

40

60

80

100

120

1988

1990

1992

1994

1996

1998

2000

2002

Fiscal Year

No. of

Com

panie

s

Application

Recipients

Recipients total

State Award,Regional Award

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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.

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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.

(B) Influence in MBNQA recipient enterprise It is expained for survey findings on MBNQA recipient enterprise achieveing performance by surveying, (1) "Why Apply?" MBNQA (NIST [21])

(a) Common Stock Comparison Study Shows a Correlation between the Use of the Baldrige Criteria and Imperoved Stock Market Performance 24 publicly traded: 1988-1998 Baldrige Award Recipients / S&P 500 = 3.8-to-1 Six publicly traded: 1988-1998 Whole company award Recipients / S&P 500 = 4.8-to-1

70 publicly traded: 1990-1998 site-visited applicants / S&P 500 = 2.0-to-1 14 publicly traded: 1990-1998 whole company site-visited applicants / S&P

500 = 2.2-to-1 (b) The Criteria Focus on Result.

Comparison graph between “Baldrige Recipients Outperform and the Standard & Poor 's 500 (S&P 500)”, by ‘Return on Investment’

(c) Customer Satisfaction. Ritz-Carlton Hotel Cmpany L.L.C. (1992 and 1999 Baldrige Award Recipient - Service) reported that 75% of its customers would not use a competitor regardless of the offer.

(d) Globalization. The Baldrige philosophies of customer focus global partnerships, strategic planning, policy deployment, and locally empowered employees are essential

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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

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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.

(2) “How Do People Use the Baldrige Award Criteria?”

Karen Bemoski and Brad Strathon who are the editor of ‘Quality Progress’ reported the following investigation reports (Bemoski [22]).

The copis of the MBNQA Criterias were distributed one million every seven years from 1987, and, 546 companies applied. Where have more than 999,000 copies gone? Quality Progress sent a questionnaire to 3000 personel selected at random in 1992 to 1995 and got answer back from 840 personel.

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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 analysis results are as follows. 21.7% personel had used it at last once per week in the past 12 months though 18.4% of those who answered did not use the Criteria. In general

(a) The criteria are being used primarily to obtain information on how to achieve business excellence.

(b) The criteria’s usefulness, overall, has met or exceeded users’ expectations. (c) Not observe any limitation nor boundary for use of the criteria, and Top

management are using several times within a year. through which it is understood that knowledge accumulation level are upward by criteria studying from all over the USA.

(3) The Criteria: A Looking Glass to Americans’ Understanding of Quality. Case study of “Evaluation Criteria”: Category 7 “Business Result (allocated 450

points out of Total 1000 points" was reported by Best [23]. The following examples are explained from plain graphical charts.

(a) ADAC Laboratories (1996 Baldrige Award Recipient - Manufacturing) is a manufacturer of Medical Technology Equipment. ADAC have shortened for their service cycle time (SCT) of the nuclear medicine equipment from 50 hours in 1990 to about 15 hours by winning in 1996, and also status of Customer Satisfaction Measures were improved from 70% level in 1992 to 90% level in 1996. As for On-time Delivery Performance (%) was also improved to the world class level of more than 95% for 1992-1996. A lot of about five points are industry-leading as Service Ratings in each item all items of Overall service, Speed by phone, Competence of personnel, Attitude of personnel, Troubleshooting by phone, Availability of parts, Address needs, and Preventive Maintenance.

(b) Costomer Customer Research Inc. (CRI, 1996 Baldrige Award Recipient) improved on Employee Training Hours (average hours per year) from 60 hours or more in 1990 to the level of 140 hours during 1994-1995. Moreover, the Employee Satisfaction Rating (% Responding favorably – Statement: I am satisfied with the training opportunities offered at CRI.) were improved from 40% or more in 1990 to about 80% in 1995.

The above-mentioned are justifying how the MBNQA evaluation criteria are effective

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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)”.

① Focus on the most critical business results. ② Note the meaning of the four key requirements from the Scoring Guidelines for

effective reporting of results data: Performance levels that are reported on a meaningful measurement scale Trends to show directions of results and rates of change Comparisons to show how results compare with those of other,

appropriately selected organizations Breadth and importance of results to show that all important results are

included and segmented, ③ Include trend data covering actual periods for tracking trends. ④ Use compact format - graphs and tables. ⑤ Integrate results into the body of the text. ⑥ Refer to the Scoring Guidelines.

(4) Check Out This Baldrige Winner

Ms. Susn E. Daniels, Associate editor of Quality Progress, [24] issued for suvey reports about the activities situation and the result of Clark American (2001 Baldrige Award Recipient – Manufacturing) in 2001 and used to check the MBNQA Criteria.

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.

When the main reform is indicated,

① Developing a First in Service (FIS) business strategy as the core of Clarke’s

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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.

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(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" The economic evaluation of the Baldrige National Quality Program is carried on by

the following methods based on above formula.

(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.

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(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.

3.5.2 European Quality Award (EQA) (A) Status of Recipient for European Quality Award

As shown in Fig. 3.4, there are four level of recognition available to Applicants for the European Quality Award.

(1) European Quality Award

For the best company among Prize recipient in each of the following categories: (a) Large Business and Business Units (b) Operational Unit of Companies (c) Public Sector Organizations (d) Small and Medium-sized Enterprises in two categories:

① Independent

② Subsidiaties of larger organizations. European Quality Award Prize is presented annually to organization juged to be the best of the Prze winners in each categories.

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EQA Recipients Transition

0

10

20

30

40

50

60

70

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Fiscal Year

Sum

of W

inners 97 Differentiaton

of SME

98 Defferentiationof Public Sector

99 defferentiation ofOperational Unit

Fig. 3.4 EQA recipients status

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.

(2) European Qualty Award Prize Prize are presented to the organizations that demonstrate excellence in the management of quality s their fundamental process for continuous improvement and contributing to satisfy for expectation of customer, employee, and stakeholder. Each year one or more prize are presented in eavh of the categories mentiond above.

Large Business A: 9 P: 26 (Business Units is included) Operational Units A: 1 P: 1 SME (independent) A: 5 P: 8

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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.

(B) Influence in recipients of European Quality Award

(1) General atatement " EFQM: European Quality Award, Information for Applicants – 2002" [26] has

issued each recipientindustries experiences for encouragement to on-coming industries under the subject of "Benefits of Applying", "Benefits of Winning", and "Sharing of good practices" in Chapter 4. “Why you should apply for The European Quality Award?"

The activities where the social influence of European Quality Award is suggested from among is picked up from three points of the content of (a) Benefits of Applying ① Sharpen the focus of your organization and its improvement activities ② Foster team – working to a tight schedule provides people with a clear aim and

adds an exciting challenge to life at work ③ Heigh awareness of Qrganizational Excellence and the part Quality

Management has to play in its achievement

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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.

(2) Hungary, Typical example of implementation “EQA”

Dr. Pál Molnár, Executive President, European Organisaton for Quality, Hungarian National Committee [27] contributed "Hungary’s Journey To Business Excellence" to Quality Progress in 2003.

The situation of Hungary is described as one of example among of various countries in each country of EU (European Union) and found the National Quality Award of the home country though the influence of the European Quality Award success.

GDP went up 3.8% 2001 and was forecast 3.2% 2002 for Hungary. Moreover, the industrial production has uncreased every year since 1999, including 18.6% growth for

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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

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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. (C) Consideration concerning influence of Europien Quality Award

It is insufficient for investigation related with EQA discription influence into their social activity yet that hereby present some scratch surfaced observation. (1) The EQA foundation can be recognized as an effective scheme to rear of Quality

awareness fostering in European Continent and EC as intention EFQM creation objective and purpose.

(2) Each countries invoved are proceeding on encouraging for quality-mind awareness bsed own coutry’s National Quality Award establishment, and further are recognized for heading to attain to level of EQA through structuring of social system with progressive and continual TQM implementing program.

(3) Each recipients industries are trying to organize their own synergy team to share with the best practices within local area, or structured with parent company and affiliated companies as experienced in Japan industry as Group-wide Quality Management).

(4) FQM are supporting for not only cooperating with, but also to collaboreating to the above mentioned activities.

3.5.3 Japan Quality Award (JQA)

(A) Japan Quality Award recipients The Japan Quality Award recipients are 15 companies, consisted with 7 large

enterprises, 3 Services setors companies, and 5 Small and medium-sized companies on 2003 since 1996, which deail are stated in Table 3.5.

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Table 3.5 Japan Quality Award recipient enterprises

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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. .

(B) Expansion of Japan Quality Awards in Japan

Since 1998, JQA began to spread to various district in Japan, and today’s status is as Table 3.6, that is Regional Award 11, Regional Council 15, Regional Research Society 13, and Approach of the Administration 11 of present as. (The Mnagement Quality Council material: "Invitation to the Management Quality Improvement Program."). (C) Consideration of influence of Japan Quality Award

The investigation of a social/economic influenceare not conduced yet, that based the above mentiond information,

(1) JQA is greatly contributing to the improvement of social recognition to the

management quality. (2) Achievement of business management quality improvement activities for CS

management is physically demonstrated for customer satisfaction upgrading and achievement of excellent performance by recipient performance achievement.

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(3) It could be expected to advance on through enthusiastic dessemination with the spread effort of the Management Quality Council in the future.

3.6 Consideration summarized

It is summarized for the subjects are specified for main studying at first chapter, based on the document accessed. Research subject 1: Propagation of Quality Award in the world

(1) Was “Deming Prize” an origin of Quality Award? It is found their issue was in order of the Deming Prize in 1951, the Malcolm Baldrige National Quality Award in 1987, the European Quality Award in 1991, that the Deming Prize was a starting point of the each country quality award in the world.

(2) How was Quality Award propagated? The Malcolm Baldrige National Quality Award is trigger for propagation to South and North America, Asia, and Oceania, etc., and the European Quality Award is propagated to the entire Europe and Africa.

(3) How was TQM reflected in criteria item of the Quality Award? TQM have been developed for USA-wise practices based on Japanese-way TQC/ CWQC further in USA, and disseminated into whole country, and Malcolm Baldrige National Quality Award was recognized to be the best model of TQM. The purpose of European Quality Award is “The concern for

No. Regional Award Regional CouncilRegional Reseach

SocietyApproach of theAdministration

1 Iwate Prefecture Iwate Prefecture Hokkaido Iwate Prefecture2 Aizu Wakamatsu Akita Prefecture Gunma Prefecture Takizawason3 Tochigi Prefecture Miyagi Prefecture Kanagawa Prefecture Ibaragi Prefecture4 Ibaragi Prefecture Aizu Wakamatsu Centrall part district Mitaka City5 Chiba Prefecture Tochigi Prefecture East part of Shizuoka Yokohama City6 Itabashi Ibaragi Prefecture Hokuriku Mie Prefecture7 Niigata Prefecture Saitama Prefecture Toyama Prefecture Matsusaka City8 Fukui Prefecture Chiba Prefecture Tottori Prefecture Gifu Prefecture9 Mie Prefecture Niigata Prefecture Shikoku Fukui Prefecture10 Hyogo Prefecture Fukui Prefecture Kochi Prefecture Sabae City11 Nagasaki Prefecture Mie Prefecture Saga Prefecture Kobe City12 Kansai Kagoshima Prefecture Kochi Prefecture13 China Okinawa Prefecture14 Kyushu15 Nagasaki Prefecture

Total 11 15 13 11

Table 3.6 Management Quality Awards spreading to Japan various places (2003. )

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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.

Research subject 2: Quality Award in United States of America (1) Why did USA enact the Malcolm Baldrige National Quality Award?

The quality was high-lighted for major cause of the stagnation of American Products and Industrial Power in 1970s, and it was legislated into law as the measures for strengthening their international competitiveness on quality.

(2) What did the each of State Award enactment mean in USA? The flow of the quality awareness of the USA were reflected in a traditional spirit of "Grass Roots Activities of Democracy", and it became the enactment of State Awards or the Regional Awards by Citizen Power as appearance of the quality reinforced activities.

(3) Why they were propagated to North and South America, Europe, and Asia. It could be triggered by recognition of drastic USA recovery in Economy status, and Quality Powers in market, and were world-spread accelerating needs of Quality appreciation in all over the world market, then propagated as the above-mentioned.

Research subject 3: Quality Award in Europe (1) Why did European Foundation for Quality Management enact the European

Quality Award? EFQM was founded the aim of recovery of stagnation of Europe economical condition and internatioal competitiveness, then the European Quality Award was established under cooperation of EC and EOQ.

(2) What does the propagation of the Quality Award to each countries of Europe mean?

An international trend of the Quality Appreciation was futher expanded with European Quality Award enactment and led to the Quality Award enactment of each country in Europe.

Research subject 4: Social influence by Quality Award (1) What kinds of influences were observed in each recipient enterprise of the

Quality Award? The application to Quality Award brought the tangible and the intangible effects into enterprise, and competitiveness in international market was developed.

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(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. As for JQA concerns, it is contributing for dissemination of idea of business management quality awareness into Japan society, that dissemination related to JQA activates became not only regional award enactment but also council and research association activities in local area. Especially, administrative offices in regional and local offices are expanding on a nationwide scale, now.

As for Deming Pize concerns, it is contributing for improvement of made-in

Japan product quality, international competitiveness, and brought the world-wide people recognition to the importance of quality awareness.

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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

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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

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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. 4.1 Purpose and Methodology for Research 4.1.1 Purpose of Research

The purpose of this research is firstly to qualitative comparison between MBNQA, EQA, JQA, Deming Prize and ISO 9001:2000, to identify TQM element from each award criteria item and to arrange “Quality Award TQM Element Deplyment Table” by QFD, to isolate their common and non-common elements by classification system consideration and to prepare for Systematic Deployment Table of TQM element (this is called as “TQM Elements Deployment Table”) by KJ Method and QFD which TQM element of each award criteria item is included overall. TQM Element Deployment Table is assumed to be a common standard (It is said the anchor). The comparison matrix table of the TQM Elements Deployment Table and each Quality Award TQM Elements Deployment Table (It is called as “TQM Quality Award Element Comparison Matrix”) is arranged to compare characteristics of each award in Factor Structures, and to prepare for the characteristic comparisons of each Quality Award in Chapter 5 by Principal Factor Analysis.

The reason to select four Quality Awards and ISO 9001:2000 as a research target is as follows. While explaining, four Quality Award and ISO 9001:2000 are bridged to simply as "Award" or “each award” only.

The MBNQA was constituted as National Quality Award by President Reagan's

Policy by the resolution of the United States Diet, based on the research results of overall studyimg and examining of Deming Prize by United States industrial group and scholars in 1987. This award motivated EQA establishment and further was adopted in North and South America Continental countries and Asian countries as a model of National Quality Award with worldwide influences (NIST [2], [3]).

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

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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”.

Moreover, the ISO 9001,2000 is referring the object of comparison in my studying

based on their value of international standard for quality system evaluation and popularity in worldwide (Japanese Standards Association [8]).

In this chapter, it is established the following stated Research Subjects in assumption,

“Major components of Business Management elements are consisted of TQM elements”, because it is an age when TQM concept is expanding as one of Business Management Elements is considering Management Quality Element (TQM committee [9] and Imai, Akao, Koura [10] and NIST [2], [3]).

Research subject 1: Where is located the difference between Awards? Research subject 2: Is it possible to consolidate TQM elements of each Award into

synthesis and systematization form? 4.1.2 Research Methodology

As for verifying each subjects mentiond in the abobes, it is developed for new method for comparing and identifying their distinguishing features.

As for Research subject 1, to perform preceeding survey, in Para 4.2, to compare their Qualitative Comparison by each Quality Award in Para 4.3, and as for Research subject 2, to prepare for isolation of TQM Element and preparation of identifying their TQM Element and systematizing into each Quality Award TQM Element Deployment Table (individual) and TQM Element Deployment Table (synthesis) by QFD and KJ mentod, and for TQM Quality Award Element Comparison Matrix (individual and synthesis) from combination of TQM Element Deployment Table and each Quality

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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. 4.2 Previous Research 4.2.1 Research in USA and Europe

It is to introduce for major previous research, and insert author's opinion by reports; (A) Bush & Dooley [11] compared Deming Prize and MBNQA in 1989, and pointed as

follows. (1) Criteria pagr of MBNQA is 23page, but Deming Prize checklist is 1 page. About

the difference on page quantity concernes, it is caused mainly by: MBNQA is designed for non-dispersion consideration for interpretation of criteria and difference of analysis method between judges, however, Deming Prize concern, it is request for Total Quality Control (CWQC: Company-wide Quality Control) implementation with necessary of program and activity depending on applicant company’s specific distinguished speciality and requesting for continuous improvement implementation after recognized.

(2) Chapter 1 "Policy" and 10 "Future Plan" of the Deming Prize are equivalent of of MBNQA Chapter 3 "Strategic Quality Plannig".

(3) The statistical method is not referred in the MBNQA, but Deming Prize is emphasized for steady use of statistical method at the all stage.

(4) As for the respect of customer recognition for product and service and quality reflected is rather same level, but MBNQA is higher weight on it than Deming Prize.

(5) The minimum levels of recognition level are determined as for both Awards, but as Deming Prize concern, every applicant be satisfied with the level of minimum requirement are recognized as recipient, and in case of lower than the requirement, which company will be carried over to next year. However. MBNQA has a competitive concept in every category (Manufacturing, service, and small and medium-sized enterprise, and today also education and health care), and only the highest 2 Applicants are awarded for the Award. In case, several companies are qualified, but only two of top level are recognized by competitive concept.

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(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.

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(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

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local society to international relationship)", and "Quality of Enterprise Constitution" in 1992. (Imai, Akao, Koura [10])].

The consideration of development of quality concept in technology transfer process

of Quality Award of this thesis is important. (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

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Table, 4.1 Emphasis point % comparison table of MBNQA, EQA, CQA, AQA,

and Deming Prize

MBNQA EQA CQA AQA Deming Prize Business Customer Organizational People: 20% Policy(Hoshin): Results: 45% Satisfaction: Performanc: 10% 20% 24% Leadership: Business Customer Quality Organization:

11% Results: 15% Focus: 17% Process: 20% 10% Human Process: 14% People Customer Information: Resource Focus: 17% Focus: 18% 10% Focus: 10% Process Leadership: Process Leadership: Standardization: Management: 10% Management: 14% 10% 10% 17% Customer & People Leadership: Organizational Human Resource: Market Management: 10% Performance: 10% Focus: 8% 9% 12% Information Resources: Planning: Information & Quality Assurance:& Analysis: 9% 10% Analysis: 8% 10% 8% Strategic Policy & Supplier Strategy, Policy Maintenance: Planning: Strategy: Focus: 5% & planning: 8% 10% 8% 8%

Impact on Improvement: Society]: 6% 10%

Effects: 10%

Future Plan: 10%

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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]. 4.2.2 Research in Japan (A) Nemoto and Koura [19] presented a studying final report pertaining to “Chapter 5, Quality Award in every countries” under the final Report of the JSQC･GLQM Case Study Committee at JSQC the 26th Annual Conference in 1996.

It was tracing while propagating technology the Deming Prize to MBNQA and further deploying to EQA, International Quality Award covering Worldwide Level are expedited for creation and enacting environment, and explaining for specific feature (process type and hierarchy type) of 3 National Quality Awards, and basic concept defference and operation status, and finally introduced International Quality Award creation scheme (refer to Chapter 9, 9.4).

(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

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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)

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(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.

4.3 Qualitative Comparison between Malcom Baldrige National Quality Aeard,

Eyropean Quality Award, Japan Quality Award, and Deming Prize 4.3.1 General Description

The Deming Prize, MBNQA, and EQA have been recognized for International Quality Standard Creation all over the world, as mentioned in Quality Management Continuum by Nakhai & Nevews [13].

The Deming Prize has changed and advanced Japanese business management to have implement "Application of the Statistical Quality Control" with innovative Quality Assurance, Policy Management, Cross-Functional Management, and QC Circle Activities etc. according to the enactment fiscal year advances.

The MBNQA was developed as USA Industrial Recovery Policy by the purpose to strengthen for international competitiveness in the market, and be recognized as effective methodology of TQM concept. The principle was aimed for "Creative Activities for Customer Satisfaction", and instructed for quality data be collected and analysed, results be measurable index with numerical vlue, nd be established for the standard.

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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. 4.3.2 Comparison of Criteria (1) Outline

Table 4.2 is prepared for "Criteria Comparison table on MBNQA, EQA, JQA, and Deming Prize" and Table 4.3 is for "Weight Comparison Table of the Criterias items".

(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.

Kind of Award Enabler system Result systemMBNQA 6 Categories:550

points1 Category: 450

pointsEQA 5 Categories: 50% 4 Category: 50%JQA 7 Categories: 550

points1 Category: 450

pointsDeming Prize 16 Categories:

(100%)

Table 4.3 Weight comparison table of Criteria item

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Table, 4.2 Comparison Table of Criteria of MBNQA, EQA, JQA, and Deming Prize

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(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

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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.”

As referring to the above, Customer Satisfaction Philosophy has been locted as the fundamental mandatory principles for TQC implementating program. Every recipients of Deming Prizehad traditionally and consistently implemented a confident theory of “Quality First” or “Quality Supremacy” into their business management creed under “Customer Satisfactiion” is achievable by Quality.

(3) In the MBNQA, Customer Satisfaction was emphasized. The same concept of Customer Satisfaction is also recognized in USA, as Levitt

[24] has stated "The Seller moves by the purchaser's inducement, and the result of the effort of seller's marketing becomes a product". Armstrong Cotorar [25] was also back-lining as "Begin to produce a profit by creating customer satisfaction" of the United States in marketing. However, most of American Top Management concern was concentrating to economic outcome, and insiting short-term profit focus until 1970s. After drastic TV presentation of “If JapanCan, Why Can't We?" (National Broadcasting Co. June. 1980), US industry had changed with quality focus at the following after 1980s. It was taken up as an emphasis of criteria of the MBNQA, and since high-lighting and recognition of "Customer Satisfaction" in "Made in America" (1989) of the MIT report in 1987, this is more closed up.

It should be commending for the UA intelligence to seriously recognize the degree of such high importance to pick-up for customer satisfaction and to push forward as the Key Word.

(4) Framework Every national program prepare a framework to have applicants easy

understand and follow, which are called so many, but here is consolidated as under “Framework”.

MBNQA, EQA, and JQA have been prepared for processing scquence figure by numbers of criteria as “input criterias → process criterias → output criterias” for rather easy guidance to the applicants. The Deming Prize is not indicated for sequential numbering process, but simply explaining for Major processing frame- work only.

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.

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Fig. 4.1 2003 Baldrige Criteria for Performance Excellence Framework: A System Perspective

Fig. 4.2 2002 EFQM Excellence Model

Organizational Profile:

Environment, Relationship, and Changes

1

Leadership (120)

2

Strategic

Planning (85)

3

Customer and

Market Focus (85)

5

Human Resoource

Focus (85) 7

Business

Results (450)6

Process

Management (85)

4 Mesurement, Analysis, and Knowledge Management (90)

Leader

ship

(10%)

People (9%)

Policy &

Strategy (8%)

Partnership

& Resources (9%)

Process

(14%)

People

Results (9%)

Customer

Results (20%)

Society

Results (6%)

Key

Performance

Results

(15%)

ENABLER RESULTS

INNOVATION AND LEARNING

111

Fig. 4.3 Framework of 2001 JQA Criteria

Fig. 4.5 Distribution Points of Fundamental Items in 2002 Deming Prize Criteria

Organization profile

3. Understanding and correspondence of customer and market (110)

(Directionality

and Impellent)

(Business system) (Target and

Result)

1. Leadership and

Decision-making (120)

2. Social Responsibility

in Management. (50)

7. Information Management (60)

4. Decision & Deployment of

Strategy (60)

5 Ability Improvement of

Individual & Organization (100)

6. Value Creation Process (100)

8. Result of

Activities

(400)

(Information Base)

1. Company's Basic Principles and

its Dployment (20 points)

Quality Center System 50 points

2. New Product

Development &

Reform of

Business

(20 points)

3. Management and

Improvement of

Commodity Quality and

Quality of Business

(20 points)

4.Maintenance of Management System(10 points)

5.Collection,

Analysis of

Quality

Information,

and use of IT

(15 points)

6. Human

Ability

Development

(15 points)

112

Fig. 4.4 View Points of examination in 2001 Deming Prize

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.

(10) Contribution to Achievement of Company Objectives

(b)Excellent (a) Continuous Achieving (c) Effects and

Relationship * of Company Objectives Future Plan

Providing with Goods and Service with High Customer Satisfaction

Aspect of "Customer"

Pursuit of "Quality"

(9) Organization Power (Core Technology, Speed, Vitalities)

Systematic Activities that manages All Company’s Organization of Effectively & Efficiently

(1)Top management' Leadership, Vision and Strategies

Management System (management, improvement, and reform)

(2) Management System in TQM **

(3) Quality Assurance System

(4) Business Element Management System ***

Enhancement of the Main Management Base

(5) Human Resourse Development (6) Use of Information

Basic Idea and Technique

(7) Idea and Sense of Values of TQM (8) Scientific Technique

Aim

of TQM

Fram

ework of TQ

M

113

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]).

(E) Criteria Item and specific Feature

As shown in Table 4.2 "Comparison Table of Criterias of MBNQA, EQA, JQA, and Deming Prize", and Table 4.3 "Weight Comparison Table of Criteria Item", it is to be identified for their specific features;

(1) Differences (a) Wide differences observed in MBNQA, EQA, and JQA are that detail back

ground story of concept, explanation about the idea and the point of criteria items and summarized high-light instruction, but Deming Prize is not coverd as such instruction.

(b) A Customer Satisfaction Item is classified as the first rank classification of MBNQA, EQA and JQA, but Deming Prize is in the second layer.

(c) The Deming Prize is fully covering for full implementation of TQM concept, definition of value, TQM management system, scientific methods, or cross-business element management etc. that has been developing in Japan.

(d) Though MBNQA, EQA, and JQA have a common item as results of the business and a result of the corporate activities, Deming Prize have enumerated relationship, mission achievement, and continuous securing of profit as contribution to achievement of company objectives.

(e) EQA have consideration to ISO 9000 and Deming Prize to ISO 9000/14000. (MBNQA Criteria put and revised for these in 2003.)

(f) EQA enpfasized for consideration on global environment protection, quality of life, and Deming Prize emphasized environmental management, safety and hygienes, and working environment.

(g) EQA is transferring some technical methodology such as from Japan: Cross-Functional Management and Continuous Improvement USA: Bench Marking, Best Practice, and Business Process Re-engeering.

(h) Deming Prize is specified for "Organization Power (Core Technology, Speed, and Vitality)", which is not observed by the others. It could be deliberately specified for rapid recovering from international copetiveness weakness.

(2) Common clauses (a) Top Leadership and Strategy are common important items.

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(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.

(F) Weight of Criteria Item The evaluation scoring of MBNQA and JQA are 1000 points full marks in the

criteria item and EQA is up to 100% Weighing System organized. Deming Prize system is accumulated up to the evaluation points of examiners reviewed the distribution to the examination item of the features activities 5 points, Topmanagement Body 100 points and all company 100 points, and then 50% the weight of the Topmanagement Body shows the importance of the leadership.

If it is classified their evaluation frame work by EQA concept that are structured as these distribution points is distributed according to thinking by Enablers (driving system) to be "Characteristic that became a success factor" and Results (result system) to be "Characteristic in which the result was shown", the weight is expressed as Process and Result by idea of Cause and Effect Diagram in the Table 4.3.

Each national Award are allocated some score of points to each item, that it could be evaluated their importance depending on allocation higher points. MBNQA and EQA are equally allocated points to the both results nd process categories. However JQA and Deming Prize are shifted to more process oriented allocation than results, JQA allocate

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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”. 4.3.3 Management on Awarding Operation

It is covered for operation management of MBNQA, JQA, and Deming Prize, but EQA is not covered in detail by insufficient information. (A) Malcolm Baldrige National Quality Award

(1) The president present the award to the recipients in the latter half of every year and the commemorative conference be organized in the nest year. For instance, in 1998,the recipients conference was organized under “Quest for Excellence Ⅹ , Conference” in fiscal year 1997 done on February 8-11, 1998, the presentation of recipients is announced, the relational videotapes and the technical booklet etc. are sold, and exchanging and communicating between felated enterprises, which is similar to Deming Prize presentation meeting.

(2) The MBNQA is considered for next higher rankof challenging level, that the next of State and Local Award.

(3) Handbook for Board Examiners (NIST [28]) is fully prepared for examiners.. The most important matter is established about following items.

(a) Code for Ethical Standards (b) Disclosure of Conflict of Interest

(c) Reimbursement of Expenses (4) The Board of Examiners is composed with Examiners 200-225 (325), those Senior

Examiners 50-70(60) and Judges 9(9) who are selected from the following field. (Parentheses number was data in 1998)

(a) Industry and service organizations (b) Education and health care organizations (c) Professional and trade organizations (d) Government agencies (e) Other non-profit groups (5) Cost: The calculation standard of the application qualification recognition cost, the

application expense, and cost related to the site visit examination are shown in detail. (Table 4.4)

(6) The judge are recruited every year, and is selected by the ability, qualification, performance, and commendation. The pamphlet “Seeking Examiners for 1998" and "Seeking Applicants for the Board of Examiners" are issued, and the Clause of “Becoming An Examiner (Selection)” in it are explained as follow.

116

Table 4.4 Comparison of Expensecost related to Examination of MBNQA and Deming

Prizes,

117

(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.

(B) European Quality Award

(1) Each country in EU have established own National Quality Award that European Quality Award is situated as high ranking award. For instance, the BRISA Co. the joint venture company of Bridgestone Tire in Turkey, was recognized the first recipient enterprises of Turkish Quality Award in 1993, and won the EQA in 1996. And moreover, the Burton-Apta Co. in Hungary was recognized the first recipient enterprise of Hungarian National Quality Award in 1999 and won the EQA in 2000.

(2) European Business Excellence (EFQM) Forum is held in every year. For example of Forum 2004 in Berlin, Germany, Welcom Reception was had at the first day evening, the Award Ceremony and Dinner were organized at the second day evening after prenary session. And, for third days, the prenary session on main theme and the parallel sessions on topics related main theme were assembled.

(3) The guidance book on the self-assessment is published, and the Asessar Education is executed.

(C) Japan Quality Award

(1) The Management Quality Council was organized in 1996. (2) The Bench-Marking Promotion Conference was organized in 1996.

118

(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.)

(D) Deming Prize and Japan Quality Medal

(1) It is recognized that the guidance lecturers contribution are great for introduction, promotion and implementation of TQM before recognition, and processing after being awarded, further continuing to promote follow-up action by the examination report recommendation.

(2) As for cost concerns: It is briefly explained for diagnosis expense, diagnosis report preparation expense, transportation, hotel charge, and administrative expense,

119

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 1: TQM Functional Analysis and Function Deployment of TQM TQM Function of each Award is analysed and deployed by using Function Deployment technique of QFD (Quality Function Deployment) based on “Forward to Systematization of TQC” (Imai, Akao, Koura [10]) and “TQM: Management of Total Quality for 21st Century” (TQM Committee [9]).

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

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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.

(1) It must be an adequate expression of TQM Element to be understood by worldwide level.

(2) It must be value enough to be guidline to establish TQM. Step 3: Compariing and Verifying of Element of each Quality Award

TQM Element Deployment of each Award Preparation of common standard by grouping of of TQM element of each Award by KJ method Preparation of TQM Elements Deployment Table (anchor)

Preparation of TQM Quality Award Element Comparison Matrix (Matrix of TQM Elements Deployment Table with each Award TQM Element Depoymen Table) as follows. (Table 4.5) These matrixes are compared and verified by Multivariate Analysis.

Table 4.5 Structure Model of TQM Quality Award Element Comparison Matrix

Each Award TQM Element Deployment Table Matrix Table MBNQA EQA JQA Deming Prize ISO 9000

TQM Element Deployment Table (anckor)

TQM Quality Award Element Deployment Table id constructed a matrix of TQM Element Deployment Table with Each Award TQM Element Deployment Table. Relation Degree Numericl Value = Criteria Points of Each Award ×Strength of relation between Each Award TQM Element and TQM Element Note: AHP calculation ofthis importance degreewas not used.

Step 4: It is necessary to confirm from the result of comparison and verification. (1) Is this method and program newly designed? (2) Is this method feasible? (3) Is TQM Element compatible enough with comparison research on feature of

each Award as common standard (ancker)? (4) What is the achieved result?

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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.

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Step 1: Prepare Criteria Element Deployment Table of

Each Quality Award

Step 4: Collect 2nd level elements

(128)

3rd level TQM Element

Deployment Table (180)

Step 2 to Step 3

Conversion of 4th level Criteria

Element to TQM Element

(Number is TQM Element number)

4th level Quality Award TQM Element Deployment Tables

Step 5: KJ Method Grouping

Step 6-1: Prepare TQM Quality Award Elements Comparison Matrix (Individual)

Step 7: TQM Quality Award Element Comparison Matrix (Synthesis).

Each Award TQM Element is summed up to 1st level from 4th level.

Step 6-2: Put in Strength of Relation in each cell of each Matrix and calculate

Relation Degree.

MBNQA

(91)

EQA

(380)

JQA

(142)

D-P

(101)

ISO

9000

(264)

This Matrix size is composed by

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)

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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.

Table4.7 Number of Critera Elements extracted from each Award

It is a table, 4.6 each prize or the extracted numbers of examination elements. 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”

Name 1st 2nd 3rd 4th 5th Remarks MBNQA 7 19 29 494 EQA 9 32 180 JQA 8 20 65 142 706 Deming Prize 17 31 56 126 407 6th 29(partially) ISO 9001 5 23 81 264

1st 2nd 3rd 4th1.1.1.1 Values of organizations is focused.1.1.1.2 Business Results of organizations is focused.1.1.1.3 Value for stake-holders is created.1.1.1.4 Balance between indicators is focused.1.1.1.5 Leaderships system is made.1.1.1.6 Leadership indicator is settled on.1.1.1.7 Leadership indicator is transmitted.

1Leadership

1.1Leadership oforganization

1.1.1seniormanagements'leadershipindicators

Table 4.6　MBNQA Criteria Element Deployment Table (part)

124

(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 4.9 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)

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

Name Criteria Element TQM Element

3rd 4th 3rd 4th above 5th

MBNQA 494 29 509 EQA 180 43 327 53(partially) JQA 65 142 65 142 706 Deming Prize 65 126 56 126 407, 6th 29 (partially)ISO 9001 81 264 81 264

4th Criteria Eelements T Q M Element1.1.1.1 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 thoroughly1.1.1.8 Leadership indicator is deployed. Policy is deployed.

Table 4.8 MBNQA Criteria Element vs. TQM Element Table (part)

125

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

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

Name 1st 2nd 3rd 4th 5th 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

1st 2nd 3rd 4th 5th

1.1.1.1.1 Values of organizations is focussed.1.1.1.1.2 Business results of organizations is focussed1.1.1.1.3 Value for stake-holders is created.1.1.1.1.4 Balance of policies is focussed.1.1.1.1.5 Leadership system is made.1.1.1.1.6 Policy Management system is established. 1.1.1.1.7 Policies are settled on.1.1.1.1.8 Policies are transmitted.1.1.1.1.9 Policies are known throughly.1.1.1.1.10 Policies are deployed.

Table 4.10 MBNQA TQM Elements Deployment Table (part)

1Leadership

isestablished.

1.1Leadership of

organization is

established.

1.1.1Senior

managements'

leadershipindicators

areestablished

.

1.1.1.1Corporateprinciples

andpolicies

areestablishe

d anddeployed.

126

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). Step 6: To prepare TQM Quality Award Elements Comparison Matrix (individual) by

arranging of TQM Element Deployment Table (synthesis) with each Quality Award TQM Element Deployment Table.

First of all, the evaluation point of Criteria of each award is distributed to elements in TQM Element Deployment Table (individual) of each Quality Award. The evaluation points was distributed to each TQM Element of it (the 3rd) by the Proportional allotment that the total must become 1000 points as well as the MBNQA, because each award except ISO 9001 has each evaluation point. The 1000 points were distributed to each TQM element of ISO 9001 under equal-evaluation points. Next, 3rd level element evaluation points are also equally distributed to 4th level elements, and the distribution point was rounded to two digits below the decimal to keep the accuracy of the calculation thereafter.

127

１．１ The idea of Total "Quality" is understood.

１．２ D.1.1 Shows understands and zeal to

TQM

1 Management Total "Quality" shows

understanding and zeal.

2 Leadership is established.

2.1 Leadership is

demonstrated. 2.2 The relationship to the

stake-holder is valued.

Social relationship is valued.

DT. 5 Social responsibility of

organization is accomplished.

M.1.2 Public responsibility and citizens

J.1.2 social responsibility and

enterprise ethics are

accomplished.

Costomer relationship is valued.

E.3.1 Relationship of customer, partner,

and social representative is valued.

D.1.1 Leadership of top is

demonstrated.

E.1.1 Development of mission,

vision, and value of leadership and

role models of the corporate culture

are established.

J.1.1 Ssystem of demonstrating

leadership is established.

M.1.1 Leadership of

organization is established.

Employee relationship is valued.

Business connection relationship is

valued.

Stockholder relationship is valued.

Fig. 4.7 KJ Method Grouping of Second TQM Element Item of each Award (part)

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.

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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

1st 2nd1.1 Idea of Total "Quality" is understood.1.2　Understanding and zeal to TQM is shown2.1 Leadership is demonstrated.2.2Relationship to the stake-holder is focussed.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.

3.2 Vision, mission, values, policy, and strategy are deployed4.1 Customer and market are understood.4.2 Knowledge of customer and market is used.4.3 Response to customer and market is improved.4.4 Customer and market satisfaction are clarified.4.5 Customer-relationship is maintained and improved.5.1 Human resoources is developed.5.2 Information is used.6.1 Management system is established.6.2 Quality assurance system is established.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.7.1　Iidea and values of TQM are understood.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.8.4 Business connections relationship is improved.8.5 Stockholder relationship is improved.8.6 Mission of organization is achieved.8.7 Profit is continuously secured.9.1 Feature of TQM activities of company is put out.9.2 Ahead of the time TQM is investigated and developed.

8 Achievement level of purpose and target ofthe organization is measured and evaluated.

9 Concept, methodology, and technology ofTQM are investigated and developed.

4 Satisfaction of customer and market areaimed at.

5 Management base is enhanced.

6 Management system process is enhanced.

7 Basic idea and technique of TQM areunderstood and used.

Table 4.12 TQM Elements Deployment Table (synthesis) in Steps 5

1 Understanding and zeal to Total "Quality" isshown.

2 Leadership is established.

3 Policy and plan are planned and deployed.

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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).

This matrix table is presented for indicating the relationship between As for this matrix is thought to become a tool that quantitatively analyzes the

feature of each Quality Award, the one that the Relationship Index of the each Quality Award TQM Element are quantitatively shown by overall TQM Elements Deployment Table which TQM elements of each Award is included as a common standard. Moreover, TQM Quality Award Element Comparison Matrix consolidated from the 3rd to the 2nd and from the 2nd to the 1st can be made by the idea of the same consolidating as the above-mentioned. Step 7: To prepar TQM Quality Award Element Comparison Matrix (synthesis) by

integrating of each TQM Quality Awrd Element Comparison Matrix (individual). As mentioned in the preceding step, each Quality Award TQM Element Deployment

Table (Top side) of TQM Quality Award Element Comparison Matrix (individual) is consolidated from 3rd level into 1st level and is further put together in one holizontal matrix form, which is called TQM Quality Award Element Comparison Matrix (synthesis). This matrix is organized by bertical: TQM Element (3rd level) by 180, and horizontal: Quality Award TQM Element 1st level) (MBNQA is 7, EQA is 9, JQA is 8 and Deming Prize is 17, and ISO is 5) in total 46 elements are corresponding each other,

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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.

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1rst 2nd1.1 Top's role and mission are recognized.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.2.4 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.3.3 Customer-relationship is constructed.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.4.3 Customer and sales information are used.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.5.3 Business management is carried out.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.6.2 Quality Assurance is carried out.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.7.2 Information system is used.8.1 Basis of human resources development is established.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.9.3 Mission of organization is achieved.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.10.3 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. 11.4　TQM is promoted and operated.11.5 Cross-Business Element Management is carried out.11.6　Group-wide Quality Management is carried out.

Table 4.13 New TQM Elements Deployment Tables　(synthesis)

1 Top's role and the mission areestablished.

2 Management plan system is established.

3 Response system for customer isestablished.

4 Product and service offer process areestablished.

5 Business management system isestablished.

6 Quality and environmental system areestablished.

7 Information system is established.

8 Human resources is developed.

9 Mission and business results oforganization are improved.

10 Social relationship is established.

11 TQM is promoted.

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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)

Table 4.14 TQM Quality Awad Element Comparison Matrix (sybthesis)

(Upper part in left)

1st 2nd 3rd

1Leadership

isestablishe

d.

2Strategicplan is

established.

3Market

andcustomer

isfocussed.

4Informationis analyzed.

5Human

resourcesis

focussed.

6Process

managementis

established.

7BusinessRresult ismeasured

andevaluated.

1.1.1 Top's role and mission are understood. 312.00 0.00 0.00 0.00 0.00 0.00 0.001.1.2 Top's responsibility and authority isunderstood.

312.00 0.00 0.00 0.00 0.00 0.00 0.00

1.2.1 Vision, mission and values of enterprisesare developed.

222.00 60.00 0.00 0.00 0.00 0.00 0.00

1.2.2 Premedical Achieveing System of missionof organizations is consolidated.

240.00 27.00 0.00 35.70 0.00 120.00 360.00

1.2.3 High quality organization of sense ofexistences is achieved.

96.00 27.00 0.00 21.42 0.00 0.00 0.00

2.1.1 Changes in enterpise environments isforecasted and responced.

48.00 168.00 0.00 0.00 0.00 0.00 120.00

2.1.2 Science and technologies advance isforecasted and responced.

48.00 168.00 0.00 0.00 25.00 49.08 120.00

2.2.1 System of leadership demonstrating isestablished.

144.00 60.00 0.00 149.94 0.00 0.00 0.00

2.2.2 Management system is designedsystematicaly and managed.

144.00 30.00 0.00 0.00 21.00 120.00 240.00

2.2.3 Corporate cultures are developed. 96.00 60.00 0.00 0.00 127.00 0.00 0.002.2.4 Policy Managements are encouraged. 240.00 255.00 0.00 149.94 0.00 0.00 120.00

2.2.5 Company-wide goal achievement systemis established.

144.00 168.00 0.00 0.00 21.00 0.00 120.00

2.3.1 Policy and strategy of enterprises aredeveloped.

48.00 60.00 0.00 0.00 0.00 0.00 120.00

2.3.2 Vision mission, value, policy, and strategyare established.

96.00 171.00 0.00 0.00 0.00 0.00 120.00

2.3.3 Quality policy and strategy are established 48.00 171.00 0.00 0.00 0.00 0.00 120.00

2.4.1 Vision, mission, values of organizations isdeclared.

96.00 168.00 0.00 0.00 0.00 0.00 120.00

2.4.2 Policy and strategy of organizations aredeclared.

96.00 168.00 0.00 0.00 0.00 0.00 120.00

2.5.1 Policies and strategies are deployed. 96.00 168.00 0.00 0.00 0.00 0.00 120.002.5.2 Policies and strategies are transmittedand implemented.

96.00 168.00 0.00 0.00 0.00 0.00 120.00

2.5.3 Policy management organization isestablished and managed.

96.00 60.00 0.00 21.42 21.00 0.00 120.00

2.6.1 Reasonable profit in long-term aspect issecured.

48.00 27.00 0.00 64.26 0.00 0.00 307.50

2.6.2 Constitution that obtains profitscontinuously is made.

48.00 27.00 0.00 64.26 0.00 0.00 307.50

TQM Element Deployment Tablex Malcolm Baldrige National Quality Award

1Top's roleand missionareestablished.

2Managementplan systemisestablished.

2.3 Policy andstrategy areestablished.

2.4 Policy andstrategy aredeclared.

2.5 Policy andstrategy aredeployed.

2.6 Long-termprofit isensured.

1.1 Top's roleand mission arerecognized.

1.2 Top's roleand missionareencouraged.

2.1 Businessenvironment isforecast.

2.2Managementplan systemisconstructed.

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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

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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.

(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

Quality AwardMBNQA EQA JQA

DemingPrize

ISO 9001

1 Top's role and mission are established. 1833 1859 3909 5142 35172 Management plan system is established. 6858 6041 11625 7690 58373 Response system for customer is established. 9993 15976 14518 5262 89224 Product and service offer process are established. 7307 13957 16561 6660 107235 Business management system is established. 6437 3207 5651 4650 26286 Quality and environmental system are established. 5561 8010 14873 5449 148707 Information system is established. 1705 2346 3466 2095 11238 Human resource is developed. 10306 11360 9348 11699 25179 Mission and business result of organization are improved. 12660 6695 8002 5031 207310 Social relationship is established. 8227 7408 10751 4020 354211 TQM is promoted. 1543 6256 1045 8464 777

Table 4.15 TQM Quality Award Element Comparison Matrix (Relation Degree consolidating Table)

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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 (2) Features of European Quality Award

"3 Response system for customers is established" (15976) was ranked at top position, and "4 Products and service offer processes are established" (13957), "8 Human resources development" (11360), and "11 TQM is promoted" (6256) become next mark from Relation Degree of the Table 4.15. It is only this Award that took the high score by the element "11 TQM is promoted" excluding the Deming Prize. This is one of the evidences of the spread of the idea of TQM from the Deming Prize to the EFQM model.

The EQA is structured by process be started from Cause system (called as Enabler) to Result system (called as Result) with Feedback system (Innovation and Learning). Moreover, as for the management cycle it is established “RADER Logic” which is, Results (determine results required) → Approach (plan and develop approaches) → Deploy (deploy approach) → Assessment and Review (assess & review approaches and their deployment), and presented “Ring Matrix grading style scoring” by RADAR to implement self-assessment.

In addition, emphasizing what the leader should develop culture, mission, vision, and value in "1a Leaders develop the mission, vision and values and are role models of a culture of Excellence" of "1 Leadership" suggests the synthesis of top’s role and function. EQA glossary is explaining for culture, ethics, mission, vision, values, and stakeholder's (customer, partner, employee, stockholder, owner, government, and regulator are included), etc.

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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.

(3) Features of Japan Quality Award

It is top in five elements, saying that "2 Management Plan System is established" (11625), "4 Products and Service offer Processes are established" (16561), "6 Qualities and Environmental Systems are established" (14873), "7 Information System is established" (3466), and "10 Social Relationship is established" (10751), and four elements, saying that "1 Top’s role and mission are established " (3909), "3 Response System for customers is established" (14518), "5 Business Management System is established" (5651), and "9 Mission and Rresults of Organization are improved" (8002) becomes next mark from Relation Degree of the Table 4.15, as a result, high evaluation point are possessed overall, and the low rank element doesn't exist. "9 Mission and Results of Organization are improved" is ranked next to MBNQA, which is evidence of the assumption that JQA is following MBNQA program and Relation Degree distribution is relatively similar to EQA and ISO 9000.

Though the compositions such as "Criteria", "Glossarial explanation", and "Points in evaluation guideline" of JQA are similar to MBNQA, following stated revision are brand new concept such as; the content of "Organization Profile" of MBNQA is structured by four items such as "Recognition concerning on Organization, Recognition on Competition, Recognition on Revolution and Information on Organization" as a content, "2 Social responsibility in managements" is upgrade into be 1st level item and to have named the “Process Management” of MBNQA is renamed "6 Value Creation Processes". In addition, the JQA is emphasized "8.3.1 Quality in Product, Service, and Process", "8.3.2 Quality of Customer-Relationship", "8.3.3 Quality with Business Partner", and "Result of Qquality" as a “8.3 Result of Process”, and appears in showing of the Relationshp Inex of TQM element "4 Products and Service offer Processes are established" (16561) as the top in each Awards. Moreover, 400 points are given to "8

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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.

EQA is described such terminology as follows;

(a) Ethics: The universal morals which the organization adopts and abides by. (b) Mission: A statement that describes the purpose or “raison d'etre” of

organization. It describes why the business or the function exists. (c) Vision: A statement that describes how the organization wish to be in the

future. (d) Values: The understandings and expectations that describe how organization’s

people behave and upon which all business relationships are based on (e.g. trust, support and truth).

(d) Culture: The total range of behaviours, ethics and values which are transmitted, practiced and reinforced by members of organization.

On the other hand, it is as follows in the JQA.

(f) Enterprise ethics: The Basic code of conduct is shown that the enterprise itself acts as a member in the society, and in order to be admitted as a valuable member.

(g) Management vision: In a company, a business unit or a specific group, the sense of values or the purpose of activity that all members should share is shown and the basic idea of the corporate activity is shown. It is the one that the significance of existence was shown to the customer, the employee, the business partner, the stockholder, and the society, etc. as the most basic commitment (promised thing) though the name is different according to the company and the business unit.

(h) Value proposition: Show to the customer and show something in original values clearly. That is, the value proposal is meant. It is necessary to show the trait of the product and service, the relations for the customer, and images of the organization clearly to offer original values. It is possible not only to differentiate with the competitor by such a clear proposal but also the relation to the customer is strengthened.

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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.

(4) Feature of Deming Prize.

Relationship Index of Table 4.15, “1 Top’s role and mission are established” (5142), “8 Human resources is developed” (11699) and “11 TQM is promoted” (8464) are top, and “2 Management plan system is established” (7690) next mark, and three elements as “3 Response system for customer is established” (5262), “4 Product and service offer process is established” (6660) and “6 Quality and environmental system is established” (5449) become the lowest.

The Deming Prize professes clearly a philosophy of TQM (Total Quality Management).

The examination system of Deming Prize is not structured by Conformity Evaluation method against the preestablished and detailed “Evaluation Standard” but examinating by outlined "Criterion" for rating the evaluation points and the evaluation axis (effectiveness, consistency, continuance, and thoroughness). "Criterion" is divided into "Fundamental Items (category of F)", "Specialty of Activities (category of S)" and "Top’s Role and its demonstrating (category of T)". The point to take up the top managment separately is important.

There is a document " Examination Viewpoints" besides "Criterion" in the Deming Prize, and the examination is referred to. In this research, it is judged it is more preferable in the comparison with other Award, and has extracted the Quality Award TQM Element chiefly based on " Examination Viewpoints".

" T.1 Understanding and zeal to TQM", "T.3 Organization power (core technology, speed, vitality)", " F.2 Management system in TQM", " F.4 Business elemental management system", "Quality circle activity" in " F.5.3 Respect humanity" of " F.5 Human resources development", " F.7 Idea and sense of values of TQM", "F.8 Scientific Methodology", and " S Feature of TQM (something plus)" are features that other Award do not have though it can be said it is natural. Moreover, "F.10.1-10.5 Relationships (customer, employee, society, business connection, and stockholder)" and " F.10.6 Achievement of the mission of the organization" and " F.10.7 Continuous secure of profit" are emphasized in " F.10 Contribution to achievement of the company objectives " and the assurance evaluation in the future will be added to the evaluation at the time of the examination as " Evaluation of TQM Continual assurance". It is thought that "4 Quality assurance system"and "5 Cross-Business-elemental management system" of the

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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.

4.5 Conclusions and Residual Problems

It is summarized that verification result for established research subject at the beginning of this chapter and residual problem are as follow; 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,

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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

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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.

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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

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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

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Attached Table: TQM Quality Award Element Comparison Matrix (transportation version)

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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]. 5.1 Purpose of Research

The past comparison researchs on each Award made the contrast of announced Criteria compared or the one to locate other Award based on seven major categories of the MBNQA, as for the common standard (It is said the anchor) that became the base, was insufficient for the comparison of system of a lot of Award and the TQM model from the early research result of Para. 4.2.

Then, the overall TQM Elements Deployment Table used for comparison as a common anchor according to the procedure described by Para. 4.4 is prepared. It was organized matrix table as vertical (line side of left) is ssigned TQM Element Deployment Table and holizontal (row side of top) is each Quality Award 1st level elements, and each crossing cell are individually evaluate their Relation Degree (Relation Strength) by quantitative points. Then, this Relation Degree and Distribution Evaluation Points (name at the following) of each Quality Award are multiplied each other, which is accumulated for numerical multivariate data (as “Relationship Index” in cell of TQM Qualitity Award Element Comparison Matrix). Now to study further, this qualitative and subjective TQM Element Deployment Table are evaluated by objective and statistical stand-points, these TQM Elements are restructuring by Cluster Analysis, and finally 180× 46 TQM Element Quality Award Element Comparison Matrix (synthesis) is prepared.

In this chapter, after this matrix data is analysed by the Principal Factor Analysis (Yanai [2]), factor structure of each Award is clarified, and the feature of each Award is clarified from the difference of the factor structure. Quality Award Criteria is used not only for the examination for recognition but also the self-assessment at the management level of the organization and the ideal way is confirmed, and the directionality is referred to it. Moreover, the Quality Award Criteria is as always changeable. Then, it is expected this research will contribute for the development of TQM in the future through identifying inherent or potential factor structure that exists inside each Award by the comparative study approach.

Based on the above, the following stated research subjects were established; Research subject 1: Is it possible to mutually compare between each Quality Award by

synthesis and systematized TQM Elements? Research subject 2: Is it possible for identification of each features and characteristics

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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.

5.2. Struturing of TQM Quality Award Element Comparison Matrix

TQM Quality Award Element Comparison Matrix Ttable (Fig. 4.13 and Fig. 4.14) that is made in Chaprter 4, TQM Elements Deployment Table that 180 items of their is deployed as “Case” is in vertical (line, table side of left)[, each TQM Elenent Table of the criteria of MBNQA, the EQA, the JQA, the Deming Prize and the ISO 9001 are in holizontal (row, table side on top) as “Variance”, the product of ” Relation degree” and “Distribution Evaluation Ppoint” in forth level items of each Quality Award TQM Element Deployment Table such as “Relationship Index” is calculated, weighted, and the table of total 46 items of 7 iems (MBNQA), 9 items (EQA), 8 items (JQA), 17 items (Deming Prize), and 5 items (ISO 9001) by first level of major items of four Quality Awards that is summurlized is shown in Table 5.1. Moreover, they are 17 items as a whole because the Criteria item divides into three of Foundation item, feature of TQM item, and Topmanagement item about the Deming Prize.

"TQM Quality Award Element Comparison Matrix" used as multivariate data is

appended as Appendix E. 5.3. Factor Extraction of in Quality Award and ISO 9001 5.3.1 Extraction and Rotation of Factors by Principal Factor Analysises

There was not a case that had to be excluded especially as specific didpersed value, and either it was tried to extract a common, potential factor by using Factor Analysis Software (JUSE/ Stat Works) though the data for the comparison prepared in the process explained by Para 5.2 was examined closely by basic statistic and the multivariate relation chart, etc. However, the rotation was done by the Normal Vari-max Method using the Principal Factor Analysis in this thesis. The Principal Factor Analysis used here does the Eigenvalue resolution by using the one that the corner element of the Correlation Coefficient Matrix between variables was replaced as departure matrix by the square of the Multiple Correlation Coefficient between all other variables of the corresponding variable and requests the factor. The factor at that time is called Principal Factor, and the situation of the Eigenvalue is seen, the number of factors is decided, and it rotates. The situation of the Eigenvalue decreased gradually as

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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.

Criteria ItemMB 1 Leadership is established.MB 2 Strategic plan is established.MB 3 Market and customeris is focussed.MB 4 Information is analyzed.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.EQ 4 Partnership and resource control are established.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.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.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.DS 3 Customer value is created.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.DT 3 Organization power (core technology, speed, energies) is maintained and strengthened.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 3 Resource management is established.ISO 4 Product realization process is established.ISO 5 Basis of measurement, analysis, and improvement is established.

ISO 9001

Foundation

Feature(Speciality)

Topmanagement

DemingPize

Quality AwardTable 5.1 First Level TQM Conversion Element of Each Award Criteria Item

Japan Quality Award

Malcolm BaldrigeNational Quality

Award

European QualityAward

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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)

Square sum of 1.249 3.280 1.440 2.353 2.875 3.662 Factor Loading 2.595 2.300 5.405 2.549 3.617 Contributory Ratio 0.027 0.071 0.031 0.051 0.063 0.080

0.056 0.050 0.118 0.055 0.079

5.3.2 Interpretation of Factors after Rotation

The following names were applied by the following interpretations from meaning of the correlation relation with the factor and each variable though the Factor Loading after it rotated was shown the attached table because it was a lot of that the variable was 46.

･Factor 1: Partner factor

The correlation is high with EQ4 (Partnership and the resource control are established), and the correlation is a little high with EQ9 (Key performance results are improved) and EQ2 (Policy and strategy are established) in the variable. It can be interpreted as the factor in which the mutual trust of the establishment of the partnership with the customer etc. tries to improve and tie to results though this factor is peculiar to the EQA.

･Factor 2: Social Responsibility factor The correlation is high with JQ2 (Social responsibility in the management is

accomplished) and EQ8 (Social results are improved) in the variable. This factor can interpret as the element that shows the responsibility to the society and the stockholder, and shows one side of the leadership.

･Factor 3: Cross-Management factor

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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

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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.

Each factor name Requirement explanationCrieria item No. of

each Award

1 Partner factorEstablishment and mutual trust of partnershipwith customer

EQ2､EQ4､EQ9

2 Social Responsibility factorResponsibility to society and stockholder. Apart of leadership

EQ8､JQ2

3 Cross-Management factorQ.C.D.S.E.. etc. Cross-OrganizationalManagement (Cross-Business-ElementManagement)

DF2､DF4

4 Leader Philosophy factorTop philosophy, Zeal of TQM promotion.relation to Leadership

DT1､DS1

5 Strategic Plan factor Plan, decision, and deployment of strategy MB2､JQ4

6 Customer Market factorCustomer market focus, understanding andresponse. Customer value creation processestablishment

MB3､EQ5､EQ6､JQ3､DS3

7 Revolutionary Innovationfactor

Organization baseof management isestablished, and effectiveness, reproducibilityand reformation of development of theconcept, methodology, and technology of TQMof a head of age

DS4､DS5

8 Information Utilizationfactor

Analysis of information, use of IT andinformation management establishment .

MB4､JQ7､DF5

9 Human ResourcesDevelopment factor

Development, foster of human resources, theability improvement of individual andorganization, and people management

EQ3､JQ5､DF5

10 Management Responsibilityfactor

Clarification of management responsibility,quality management system . It is respectoneside with a different leadership with factor 2and factor 4

ISO1､ISO2

11 Process factor

Establishment of measurement, analysis,product realization and value creation process.Process management. Product qualities andquality of business is controlled and improved

MB6､JQ6､DF3､ISO4､ISO5

Table 5.3 Summary of Each Factor Name

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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.

5.4. Study of Analysis Result 5.4.1 Factor Structure of each Quality Award

It is prepared for relation diagram between the above-mentioned 11 factors and each

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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.

(A) Malcolm Baldrige National Quality Award

About the absolute value of Factor Loading |Factor Loading| ≧ Factor of 0.6: Strategic Plan, Customer Market, Process,

Information Utilization, and Human Resoouces Development |Factor Loading| ≧ Factor of 0.4 or less: Social Responsibility, Management

Responsibility, and Leader Pilosophy |Factor Loading| < Factor of 0.4 or less: Partner, Cross- Management, and

Revolutionary Innovation

Fig. 5.1 Factor Structure of MBNQA

MB1 Leadership is established.

MB2 Strategic plan is established.

MB7 Business result is measured & evaluated.

MB6 Process Management is established.

MB5 Human Resources is focused.

MB4 Information is analyzed.

MB3 Market & Customer is focused.

Cross-Management

Leader Philosophy

Strategic Plan

Customer Market

Revolutionary Innovation

Information Utilization

Human Resources Development

Process

Partner

Management Responsibility

Social Responsibility

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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.

(B) European Quality Award Fig. 5.2 Factor Structure of EQA

EQ1 Leadership is established.

EQ2 Policy & strategy are established.

EQ7 People Results are improved.

EQ6 Customer Results are improved.

EQ4 Partnership & Resource control are established.

EQ3 People Management is established.

EQ8 Society Results are improved.

EQ9 Key Performance Results are improved.

EQ5 Process is established.

Social Rsponsibility

Cross-Management

Leader Philosophy

Strategic Plan

Customer Market

Revolutionary Innovation

Information Utilization

Human Resources Development

Process

Partner

Management Responsibility

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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.

(C) Japan Quality Award

About the absolute value of Factor Loading |Factor Loading| ≧ 0.6: Social Responsibility, Strategic Plan, Customer Market,

Process, Information Utilization, and Human Resourdes Development

|Factor Loading| ≧ 0.4 or less: Management Responsibility and Leader Philosophy. |Factor Loading| < 0.4 or less: Partner, Cross-Management, and Revolutionary

Innovation.

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.

155

Fig. 5.3 Factor Structure of JQA

(D) Deming Prize About the absolute value of the amount of the Factor Loading

Fundamental; |Factor Loading| ≧ 0.6: Process, Cross-Management, Information Utilization, and Human Resources Development

|Factor Loading| ≧ 0.4 or less: Management Responsibility and Strategic Plan.

Feature; |Factor Loading| ≧ 0.6: Leader Philosophy, Ccustomer Market, and Revolutionary Innovation

Topmanagement; |Factor Loading| ≧ 0.6: Social Responsibility, Leader Philosophy, and Human Resources Development

|Factor Loading| ≧ 0.4 or less: Management Responsibility, Strategic Plan, and Partner.

Because Topmanagement are items of top management, other items are omitted.

JQ1 Leadership & decision making are established.

JQ2 Social Responsibility in the management is accomplished.

JQ7 Information management is established.

JQ6 Value creation process is established.

JQ5 Ability of individual & organization is improved

JQ4 Strategy is settled on and deployed.

JQ3 Customer and the market are understood & rresponded.

Social Responsibility

Cross-Management

Reader Philosophy

Strategy Pplan

Customer Market

Revolutionary innovation

Information Utilization

Human Resources Development

Process

Partner

Management Responsibility

JQ8 Result of Activities is declared.

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Fig. 5.4 Factor Structure of Deming Prize

The DF2 product development and

DS1 The feature of TQM is created.

DF6 Human Ability is developed.

DF5 Information analysis & IT are used.

DF4 Management system such as QCDSE is maintained.

DF3 Quality of Product & business controlled & improved.

Cross-Management

Leader philosophy

Strategic Plan

Customer Market

Revolutionary Innovation

Information Utilization

Human resources development

Process

Partner

Management Responsibility

DT1 Understanding & Zeal to TQM are shown.

DS2 Vision, Strategy, & Leadership are demonstrated.

DS3 Customer Value is created.

DS4 Performance of organization is greatly improved.

DS5 Management base of organization is established.

DS6 Others

DT2 Top has Leadership, Vision, Strategy, Policy, &

discemment to environment.

DT3 Organization power (core technology etc.) is

strengthened and enhanced.

DT4 Human Resources is improved.

DT5 Social Responsibiliy of organization is accomplished.

Social responsibility

Leader Philosophy

Strategic Plan

Management responsibility

Human resources development

Partner

Fundamental

Feature (Speciality) Topm

anagement

DF2 Droduct Development & business are reformed.

DF1 Management Policy is established & deployed. Social Responsibility

157

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]).

That is, it is a structure to focus “Continuous Promotion and Revolutional Innovation of TQM” that pursues “Profound is Knowledge that cannot be gotten in the organization necessary to do the organization transformation." according to Delavigine and Robertson” (Takeda [5]). And next, the Human Resources Development is focused in the Fundamental and the Topmanagment, and other factors are distributed to each item of the Fundamental, the Feature, and the Topmanagement respectively. Moreover, it is possible the one to which the above-mentioned idea is appropriate by thing that two factors of the Cross-Management and the Revolutionary Innovation have the strong correlation each other. (E) ISO9001

About the absolute value of Factor Loading |Factor Loading| ≧ 0.6: Management responsibility, Process |Factor Loading| ≧ 0.4 or less: Human resources development.

|Factor Loading| < 0.4 or less: Social responsibility, Leader philosophy, Strategic plan, Partner, Customer market, Cross-Management, Information utilization, Revolution innovation.

Only the Management Responsibility, Process, and Human Resources Development

of original "Quality system requirement" item show the Factor Loading because it is used to compare with each Quality Award.

There are strong correlations in the Management responsibility and Process from the character of the Quality system requirement, and it is clear to establish the basis of the Product Realization Process and the Measurement, Analysis, and Improvement after

158

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.

Fig. 5.5 Factor Structure of ISO 9001

(F) Summary of factor structure analysis When the factor structure of each Award is brought together from the

interpretation result of the factor after Varimax Rotation, it is shown in Table 5.4 and their relationship with each Award Criteria Item is in Ttable 5.5, which table is shown the means of 0.6 : (|Factor Lording| ≧ 0.6), 0.4 : (|Factor Loading| ≧ 0.4 less or more) and * under of table : (just show as related).

ISO1 Basis of quality management system

ISO5 measurement, analysis, and improvement

ISO4 Product realization process is established.

ISO3 Management of the resource is established.

ISO2 management responsibility is clarified.

Social responsibility

Cross-management

Leader philosophy

Strategic plan

Customer market

Revolutionary innovation

Information utilization

Human resources development

Process

Partner

Management responsibility

159

0.6 or more 0.4 or more or less Less than 0.4 or lessStrategic Plan andCustomer Market

Social Responsibility andManagement

Partner and Cross-Management

Process and InformationUtilization

Leader Philosophy Revolutionary Innovation

Human ResourcesDevelopmentSocial Responsibility andPartner

ManagementResponsibility and

Process and Cross-Management

Customer Market andHuman ResourcesDevelopment

Strategic Plan Information Utilizationand RevolutionaryInnovation

Social Responsibility andStrategic Plan

ManagementResponsibility and

Partner and Cross-Management

Customer Market andProcess

Revolutionary Innovation

Information Utilizationand Human ResourcesDevelopmentProcess and Cross-Management

ManagementResponsibility and

Partner

Information Utilizationand Human ResourcesDevelopmentLeader Philosophy andCustomer MarketRevolutionary InnovationSocial Responsibility andLeader Philosophy

ManagementResponsibility and

Human ResourcesDevelopment

Partner

ManagementResponsibility and

Human ResourcesDevelopment

Social Responsibility andLeader PhilosophyStrategic Plan andCustomer Market andCross-ManagementInformation Utilizationand Revolutionary

Customer Market andHuman ResourcesDevelopment

ManagementResponsibility

　

Social Responsibility andProcess

Leader Philosophy Partner and Cross-Management

Information Utilization Revolutionary InnovationStrategic Plan Strategic Plan 　Partner and Cross-Management

Social Responsibility Information Utilization

Revolutionary InnovationOnly by one Awarde

JQA

ISO9001

Four Awards commonness

Three Awardscommonness

Two Awards commonness

Fundamental

Feature(Speciality)

Topmanagement

DemingPrize

Ｔable 5.4　Factor Structure Table of each AwardFactor Loading

MBNQA

EQA

Quality award

160

Table 5.5 Summary of Factor Structure of each Award

161

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. (B) Individual factor

The Partner factor of the EQA and the Cross-Management factor and the Revolutionary Innovation factor of the Deming Prize are not shown no something with a strong correlation in the other three Awards, that it could be thought peculiar factors to these Awards.

(1) EQA: Partner factor It has a strong correlation to “EQ4 Partner and Resource Control are

established”, and a weak correlation to "EQ2 Policy and Strategy are established", " EQ9 Key Performance Results are improved”.

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Table 5.6 Common factor and Factor Loading

163

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.

(2) Deming Prize: Cross-Management factor It has a strong correlation in " DF4 Management system of the Quality, Cost,

Delivery Date, Safety, Environment etc." and it has a weak correlation to “DF2 Product Development and Business are reformed”. These contents are the Cross-Business-Element Management, making efficiency by business reformation, and Cross- Business-Element gets the important position.

(3) Deming Prize: Revolutionary Innovation factor

It has a strong correlation "DS2 Vision, Strategy, and Leadership", “DS4 Performance of Organization is improved greatly”, " DS5 Management Base of Organization is established" and " DS6 Others" and it has the correlation to "DS3 Customer Value is created" is weak correlation.

These contents are covering; To display for leadership with collaborated vision and value, To realize for excellent enterprise on business management strategy, To innovate and improve prganization, To contrive for system of unique quality creation and quality improvement, To develop for quality assuring supply chain management (SCM) system, To develop for oversea procurement, production and logistic system based on

quality and delivery assurance (quantity and time), To develop and innovate quality system on environment protection,

conservation of natural resources and and energy, operation safety and product safety,

To develop for process innovation program like concurrent engineering, To develop on plan, develop, research, technology system for excellt new

product (product and service) and develop on drastic new product development lead time,

To develop quality processing innovation like concurrent engineering, To develop for feasible quality control methodology for new technology

creation by up-grading of technology and core compitence, To develop human capability strengthen system for improvement people

satisfaction, To structure for excellent quality management system based on ful IT

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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.

Research subject 1: Is it possible to mutually compare between each Quality Award

by synthesis and systematized TQM Elements? Factor structures by the Principal Factor Analysis is able to be compared by preparing the TQM Elements Deployment Table as an anchor.

Research subject 2: Is it possible for identification of each features and characteristics by mutual compaison of each Quality Award?

It is thought and each Award can be multiprongly compared each other as the above-mentioned, and it is effective also to the overall consideration.

It will be explained the result obtained as follows. (A) The factor structure of each Quality Award will tell that

MBNQA is focused on "Management Quality", EQA is focused on "Enterprise Quality as the citizens", JQA is focusd on "Management Quality plus Society Responsibility", Deming Prize is focused on "Continuous Promotion and Revolutionary Innovation of TQM", ISO 9000 is focused on “Quality System”.

(B) Common Factors for all Awards Management Responsibility, Social Responsibility, Leader Philosophy, Strategic

Plan, Customer Market, Pprocess, Information Utilization, and Human Resources Development; 8 factors are listed up.

(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.

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(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.

166

Reference 1. Kozo Koura, Tadashi Yoshizawa: Comparison Analysis of Ffactor Structure in the

World Class Quality Award – Using the Deployment Table of TQM Elements as an anchor -, Journal of the Japanese Society for Quality Control, Quality, Vol.33, No.2, pp.86-96, April 2003.

2. Haruo Yanai: Multivariate Data analysis method, p.132, Asakura Bookstore, December 1994

3. Behnam Nakhai & Joao S. Neves: “Deming, Baldrige, European Quality Awards, The quality management continuum", Quality Progress, Vol.27, No.4, pp.33?37, April 1994

4. W. Edwards Deming: The New Economics for Industry, Government, Education, Second Edition, pp.92-115, Massachusetts Institute of Technology, Center for Advanced Educational Services.First printing, 1994. Fifth printing, September 1999

5. K.Delavigine and J.Robertson: Deming’s Profound Change, Prentice-Hall, 1994. 6. J. M. Juran: The Upcoming Century of Quality, Quality Progress, pp.29-37, August

1994 7. Junichi Jidou, Yozo Ito, Mikio Iwase, Mamoru Ohashi, Katsuya Hosotani, Takanori

Yoneyama, Takeshi Nakajyo: Modulated Self-Evaluation, Diagnostics of TQM, Jornal of the Japanese Society for Quality Control, Quality, Vol.30, No.4, pp.121-127, October 2000

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Attached Table: Factor Loading of each Award

No. Award Variable identifier

2Social

Responsibilityfactor

10ManagementRresponsibilit

y factor

4Leader

Philosophyfactor

5Strategic

Plan factor

1 MB1 Leadership is established. 0.566 0.352 -0.395 -0.262

2 MB2 Strategic plan is established. 0.022 -0.013 0.153 -0.826

3 MB3 Customer market is focused. 0.058 0.032 -0.009 -0.002

4 MB4 Information is analyzed. 0.054 -0.016 0.112 -0.164

5 MB5 Human resources is focused. -0.003 -0.074 -0.062 0.016

6 MB6 Process management is established. 0.080 0.024 0.003 0.011

7 MB7 Business result is measured and evaluated. 0.514 0.035 0.086 -0.243

8 EQ1 Leadership is established. 0.393 0.405 -0.433 -0.131

9 EQ2 Policy and strategy are established. -0.080 0.115 -0.006 -0.391

10 EQ3 People management is established. -0.051 -0.024 -0.027 0.036

11 EQ4 Partnership and resource control are established. -0.013 -0.039 0.016 -0.010

12 EQ5 Process is established. -0.195 0.004 0.060 0.043

13 EQ6 Customer results are improved. 0.086 -0.055 0.222 0.074

14 EQ7 People results are improved. 0.078 0.001 0.073 -0.024

15 EQ8 Society results are improved. 0.746 -0.049 0.085 0.079

16 EQ9 Key performance results are improved. 0.214 0.210 0.220 -0.147

17 JQ1 Leadership and decision making are established. 0.389 0.400 -0.403 -0.478

18 JQ2 Social responsibility in the management is accomplished. 0.820 0.215 -0.101 0.012

19 JQ3 Customer and market are understood and responced. -0.068 0.099 0.101 0.056

20 JQ4 Strategy is settled on and deployed. 0.011 0.169 0.035 -0.860

21 JQ5 Ability of individual and organization are improved. 0.003 -0.041 -0.083 -0.068

22 JQ6 Value creation process is established. -0.032 -0.060 0.009 0.089

23 JQ7 Information management is established. -0.017 0.027 0.088 -0.085

24 JQ8 Result of activities is declared. 0.387 0.056 0.036 -0.018

25 DF1 Management policy is established and deployed. 0.080 0.552 -0.181 -0.542

26 DF2 Product development and business are reformed. -0.208 -0.092 0.051 -0.005

27 DF3 Quality of product and business is controlled and improved. -0.128 -0.061 -0.166 0.007

28 DF4 Management system such as QDCSE is maintained. -0.030 0.132 0.167 0.114

29 DF5 Information analysis and IT are used. -0.168 -0.045 -0.052 0.125

30 DF6 Human ability is developed. -0.074 -0.122 -0.053 0.038

31 DS1 Feature of TQM is created. -0.025 0.055 -0.795 0.034

32 DS2 Vision, strategy, and leadership are demonstrated. 0.109 0.274 -0.242 -0.311

33 DS3 Customer value is created. -0.259 -0.072 0.087 0.075

34 DS4 Performance of organization is improved greatly. -0.162 0.047 -0.061 0.076

35 DS5 Management base of organization is established. -0.230 -0.081 -0.143 0.065

36 DS6 Others. 0.163 -0.187 -0.029 0.129

37 DT1 Understanding and zeal to TQM are shown. 0.043 0.044 -0.801 0.117

38 DT2 Top has leadership, vision, strategy, policy, and discernment in enviro 0.189 0.528 -0.121 -0.496

39 DT3 Organization power (core technology, speed, and vitality) is maintained and strengthened. -0.103 -0.071 -0.139 0.002

40 DT4 Himan resources is improved. -0.060 -0.081 -0.003 0.012

41 DT5 Social responsibility of organization is accomplished. 0.669 0.336 -0.109 -0.071

42 ISO1 Basis of quality management system is established. 0.174 0.618 -0.043 0.040

43 ISO2 Management responsibility is clarified. 0.167 0.724 -0.006 -0.245

44 ISO3 Resource management is established. -0.140 0.217 0.175 0.163

45 ISO4 Product realization process is established. -0.146 0.123 0.255 0.085

46 ISO5 Basis of measurement, analysis, and improvement is established. -0.030 0.285 0.207 0.151

Square sum 3.280 2.549 2.353 2.875

Contributpry rate 0.071 0.055 0.051 0.063

ISO

MBNQA

EQA

JQA

Deming Prize

168

1Partnerfactor

6Customer

Market factor

11Processfactor

3Cross-

Managementfactor

8InformationUtilization

factor

9Human

ResourcesDevelopment

factor

7Revolutionary

Innovationfactor

Common levelResidualVariance

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

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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. 6.1 Purpose of Research

The purpose of this research is to identify for effectiveness of Principal Factor Analysis that is defined the feasibility of the TQM Element Deployment Table an anchor by comparing between time-series-revisional changes of MBNQA Ccriteria. Each Quality Awardhave periodically, or if necessary, been reviewed and revised for the criteria, after it enacted. For instance, the MBNQA has been executed every 2 years since 1987. Accordingly the passage of the revision is identified through the time-series change is compared by the factor model in each year. The Criteria book that can be obtained in Japan now for 7 critecia in 1988, 1989, 1997, 1999, 2001, 2003, that added the Criteria in 2001(former) used further in Chapter 4 and Chapter 5 for the comparison confirmation could study the time series change between them. 6.2 Research Method

Though the research method will step on the procedure in Chapter 4 and Chapter 5, the 3rd level 181 elements of the TQM Elements Deployment Table (anchor) are replaced by 48 elements in 2nd level by using simple calculation method and in case of elements in MBNQA TQM Element Deployment Table in 2001, 86 elements in 4th level are replaced by 29 elements in 3rd level and TQM Quality Award Element Deployment Table becomes the matrix of 48×29. The Relationship Index of the matrix of 48×233 elements as total (in 1988 =42, 1989 =44, 1997 =30, 1999 =27, 2001 =29, 2003 =32, 2001 (former) =29) is calculated. The final matrix used for Principal Factor Analysis for the time series comparison is used 48×49 (the first item =7×7 of the each year). The steps are briefly explained. 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

170

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.

6.3 Research Process and Result 6.3.1 Qualitative Time-Series Comparison Analysis

The Criteria Eelement Deployment Tables (to 3rd level element) by Time-Series Revision Status of Criteria Item in each year weres prepared and was brought together in "MBNQA Criteria Item Time-Series Comparison Ttable (Table 6.1).

Then qualitative time series comparison analysis was done by mutual comparisons of content of this comparison table.

When it is described the outline as follows, (1) Leadersahip: It was not reviced till 2001, but "Organizational Governance" and

"Ethical Behavior" were added in 2003

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(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.

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Table 6.1 MBNQA Criteria Item Ttime-Series Comparison Table

173

Table 6.1 MBNQA Criteria Item Time-Series Comparison Table (.continued)

174

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. 6.3.2 Time-Series Comparison Analysis by Factor Models (A) Comparison by Years

To have general differences between 1997, 1999, 2001, and 2003, Element of TQM Element Deployment Table (48 elements) and 2001 (oled) used for Quality Award Comparison at chapter 4 and 5, the above mentioned 5 years data are converted into matrix by 48× (7×5) = 48×35 (Relationship Index obtained at each cell by 118 elements at 3rd level in MBNQA TQM Element Deployment Table and 48 element in TQM Element Deployment Table by each year), and analysed by Principal Factor Analysis Method.

The result is, (1) Most Correlation Coefficient matrix are more than 0.9 in every year except only

2001 (former) put in the comparison which is shown 0.5. This situation would probably be caused by coming with differnce level data, that is, the level of the Criteria item is 3rd level element of this time and 2001 (former) is 181 elements as 4th level element in TQM Elements Deployment Tables.

(2) The number of factors is consicered as 3 factors from the Eigenvalue of Correlation Matrix. (Table 6.2)

Table 6.2 Eigenvalue table of Correlation Coefficient Matrix of MBNQA

No. Eigenvalue Contributory Rate Cumulative Contribution Ratio

Factor Name

1 4.221 0.844 0.844 Management 2 0.658 0.132 0.976 Product and sevice

process 3 0.085 0.017 0.993 Relationshp 4 0.021 0.004 0.997 5 0.014 0.003 1.000 (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

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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.

(B) Application of Principal Component Analysis (1) Selection of analysis method

The matrix of Table side ☓ Table top of 48☓233 and 49☓49 for the time series comparison by the Principal Factor Analysis Method is prepared and analized, but the Correlation Coefficient Matrix fall the rank falling (omission). The reason is in the cause that there are a lot of 0 and no quite effective data in the element of the matrix. Moreover, because the number of rows was able to be used up to 256 rows, the Principal Component Analysis Method was adopted, and the matrix of 48☓49 was prepared and used.

(2) Extraction and interpretation of Principal Component

The Cumulative Contribution Ratio becomes 7.53% by 5 Principal Components as the Table 6.3 after the results of studies of the number of Principal Component by the Eigenvalue.

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.

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Table 6.3 Contribution Ratio of Eigenvalue of Principal Component of MBNQA

No. Eigenvalue Contibution Rate Cumulative Contribution Rate1 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

Principal Component 1: "Management System Element" is named because it had the

score of 1.0 or more in wide-ranging element such as , “2 Mmanagement plan system is established”, “3 Response system for customers is established”, “4 Products and service offer processes are established”, “6 Quality and Environmental system is established”, “8 Human resources is developed”, “9 Mission and business result of organizations are improved”.

Principal Component 2: "Element of Mission and Result of Organization" is interpreted, because it was a very high score such as “9.2 Manegement review is encouraged (3.3 points)”, “9.5 Businesses result is improved (2.6 points)”.

Principal Component 3: "Information System Element" is assumed, because it was a high score such as “7.1 Information system is constructed (2.4 points)”, “7.2 Information system is used (2.3 points)”.

Principal Component 4: "Human Resources Development Element" is interpreted, because it was a high score such as “8.1 Basis of human resources development is established (2.8 points)”, “8.2 Eeducation and training environments are established (2.3 points)”, “8.3 Result of human resources developments is improved (2.2 points)”.

Principal Component 5: "Product and service process element" is named, because it was a high score such as “6.2 quality assurance is encouraged (2.8 points)”, “6.4 Mmanaging and improving of processesis encouraged (2.3 points)”.

(3) Study of analysis result

The relation between the above-mentioned 5 elements and the Time Series

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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. (a) Criteria in 1988

Fig. 6.1 Component Structure of MBNQA 1988

About the absolute value of the Factor Loading |Ffactor Loading| ≧ 0.6: Leadership, Quality assurance of product and service,

Result of quality assurance of products and services, Customer satisfaction degree

1 Leadership

2 Information and

3 Quality of strategic plan

4 Use of human resources

5 Quality assurance of product and service

6 Result of quality assurance

of products and services

7 Customer satisfaction degree

Management system

Mission and result of organization

Information system

Human resources development

Product and service process

178

|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. (b) Criteria in 1989

Fig. 6.2 Component Structure of MBNQA 1989

About the absolute value of Factor Loading |Factor Loading| ≧ 0.6: Human use (2), Quality assurance of product and service,

1 Leadership

2 Information and analysis

3 Strategic quality plan plan is developed

5 Quality assurance of product and service

6 Results of quality

4 Human use

7 Customer satisfaction degree

Management system

Mission and result of organization

Information system

Human resources development

Product and service process

179

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. (c) Ctiteria in 1997

Fig. 6.3 Component Structure of MBNQA 1997

About the absolute value of Factor Loading |Factor Loading|≧ 0.6: Leadership, Customer and market focus, Human resooources

development and management, Process management, Business

1 Leadership

2 Strategic planning

3 Customer and market focus

4 Information and analysis

5 Human resources development and management

6Process management

7Result of active conduct of

Mission and result of organization

Management system

Product and service process

Information system

Human resources development

180

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.

(d) Criteria in 1999

Fig. 6.4 Component Structure of MBNQA 1999

About the absolute value of Factor Loading

|Factor Loading| ≧ 0.6: Leadership, Customer and market focus, Human resources focus, Process management,

|Factor Loading| ≧ 0.4 or less: Leadership, Strategic planning (2), Information and

1 Leadership

2 Strategic planning

3 Customer and market focus

4 Information and analysis

5 Human resources focus

6 Proses manegemant

7 Business results

Management system

Mission and result of organization

Information system

Human resources development

Product and service process

181

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.

(e) Criteria in 2001 About the absolute value of Factor Loading |Factor Loading| ≧ 0.6: Leadership, Customer and market focus, Human resources

focus, Process management |Factor Loading| ≧ 0.4 or less: Leadership, Strategy development (2), Information

and analysis (3), Human resources focus, Businesss results (2) |Factor Loading| < 0.4 or less: Leadership (3), Strategy development (3), Customer and

market focus (4), Information and analysis (2), Human resources focus (3), Process management (4), Businesss results (3), 22 in total.

Fig. 6.5 Component Structure of MBMQA 2001

1 Leadership

2 Strategic development

3 Customer and market focus

4 Information and analysis

5 Human resources focus

6 Process management

7 Business results

Management system

Mission and result of organization

Information system

Human resources development

Product and service process

182

(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.

Figure 6.6 Component Structure of MBNQA 2003 (g) Fiscal year 2001(former)

About the absolute value of Factor Loading |Factor Loading| ≧ 0.6: Leadership is established, Human resources is focused,

Process management is established, Business results is measured and evaluated.

|Factor Loading| ≧ 0.4 or less: Strategic plan is established, Customer and market

1 Leadership

2 Strategic planning

3 Customer and market focus

4 Measurement, analysis, and

knowledge management

5 Human resources focus

6 Process management

7 Business results

Management system

Mission and result of organization

Information system

Human resources development

Product and service process

183

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.

Fig. 6.7 Component Structure of MBMQA 2001 (former) 6.4 Consideration and Conclusion “A quality concept in a country could be understood by its development of National Quality Award Criteria.”

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).

1 Leadership is established.

2 Strategic plan is established.

3 Customer and market are focused.

4 Information is analyzed.

5 Human resources is focused.

6 Process management is established.

7 Business results are measured and evaluated.

Management system

Mission and result of organization

Information system

Human resources development

Product and service process

184

1Principal

Component

2Principal

Component

3Principal

Component

4Principal

Component

5Principal

Component

Managementsystem

Mission andresult of

organization

Informationsystem

Humanresources

development

Productand service

process

1 Leadership 0.6 0.4

2 Information and analysis 0.4

3 Quality of strategic plan

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

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

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

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

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

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

4 Information is analyzed. 0.4

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

2001(former)

Table 6.4 Summary of MBNQA Criteria Item and Principal Component Structure

Year Criteria Item

1997

1999

2001

2003

1988

1989

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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.

The summary of the comparison of Time-Series of Principal Component Structure

to Table 6.4 is displayed by 0.6 for |Factor Load| ≧ 0.6 and 0.4 for |Factor Loading| ≧ 0.4 or less.

When you easily consider this result

(A) And, the Criteria item of each year has shown the correspondence of 0.6 or 0.4 of each Principal Component 1 to 5 as for the Criteria item from1988 to 2003 and 2001 (former). And, it is thought that the MBNQA has the same structure, that is, "Management Quality Focus Structure" in corresponding with a lot of Criteria items in each year as for "Management system" component.

(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,

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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”.

187

For example, tranceformation on “Social Responsibility” is shown as Table 6.5,

Table 6.5 Comparison between Criteria “Social Responsibility” in 1988-2005

Year Leadership Business Resuts 1988 1.5 Responsibility to the Public ---- 1989 1.4 Responsibility to Society ---- 1997 1.2 Company Responsibility

and Citizenship ----

1999 1.2 Public Responsibility and Citizenship

----

2001 1.2 Public Responsibility and Citizenship

7.4.6 Public Responsibility and Citizenship Results

2003 1.2 Social Responsibility 7.6 Governance and Social Responsibility Results

2005 1.2 Governance and Social Responsibility

7.6 Leadership and Social Responsibility Results

Note: Criteria in 2005 is added.

Reference document

1. Kozo Koura, Tadashi Yoshizawa: Comparative Analysis of Factor Structure in the World Class Quality Award – Using the Deployment Table of TQM Elements as an Anchor -, Jpurnal of the Japanese Society for Quality Control, Quality, Vol.33, No.2, pp.86 0 96, April 2003.

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1Principalingredient

2Principalingredient

3Principalingredient

4Principalingredient

5Principalingredient

Managementsystem

Mission andresult of

organization

Informationsystem

Humanresoources

development

Product andserviceprocess

1 Leadership -0.648 -0.505 0.157 -0.276 0.0722 Information and analysis 0.391 0.038 -0.501 0.212 -0.3613 Quality of strategic plan -0.377 -0.324 -0.379 0.058 0.4724 Use of human resources -0.294 0.587 0.163 0.593 -0.0725 Quality assurance of producs and service 0.746 -0.138 0.065 0.319 0.3046 Result of quality assurance of products and services 0.619 -0.156 0.107 0.278 0.4287 Customer satisfaction degree 0.801 -0.195 0.223 0.231 -0.0421 Leadership -0.557 -0.256 0.366 -0.372 -0.0732 Information and analysis 0.076 0.003 -0.587 0.061 -0.3463 Strategic quality plan development -0.472 -0.506 -0.348 0.218 0.2394 Human resoources use -0.23 0.641 0.173 0.643 0.0685 Quality assurance of product and service 0.459 0.028 -0.083 0.195 0.6586 Result of quality 0.565 -0.047 0.161 0.192 0.6057 Customer satisfaction degree 0.62 -0.158 0.21 0.149 -0.3941 Leadership -0.684 -0.323 0.484 0.042 -0.0292 Strategic plannig -0.598 -0.356 -0.239 0.516 0.1953 Customer and market focus 0.696 -0.224 0.253 0.173 -0.4274 Information and analysis 0.072 -0.505 -0.559 0.48 -0.1175 Human resources development and management -0.317 0.685 0.243 0.55 -0.0766 Process management 0.72 -0.027 0.124 0.122 0.5317 Business results 0.071 -0.606 0.564 0.237 -0.0181 Leadership -0.705 -0.467 0.42 -0.012 0.0162 Strategic planning -0.593 -0.381 -0.27 0.469 0.2123 Customer and market focus 0.669 -0.239 0.239 0.171 -0.4274 Information and analysis 0.05 -0.491 -0.549 0.453 -0.1065 Human resources focus -0.291 0.673 0.229 0.554 -0.1146 Process management 0.743 -0.026 0.121 0.111 0.5077 Business results 0.002 -0.55 0.592 0.287 -0.0441 Leadership -0.658 -0.476 0.443 -0.01 0.0332 Strategic planning -0.598 -0.377 -0.268 0.455 0.2253 Customer and market focus 0.681 -0.225 0.26 0.16 -0.4334 Information and analysis 0.154 -0.49 -0.537 0.475 -0.1765 Human resources focus -0.322 0.688 0.236 0.532 -0.0866 Process management 0.76 -0.022 0.126 0.086 0.4267 Business results -0.007 -0.533 0.581 0.277 01 Leadership -0.616 -0.454 0.504 -0.079 -0.0252 Strategic plannig -0.621 -0.329 -0.274 0.4 0.2323 Customer and market focus 0.681 -0.225 0.26 0.16 -0.4334 Measurement, analysis, and knowledge management 0.212 -0.498 -0.519 0.467 -0.2795 Human resources focus -0.326 0.687 0.239 0.537 -0.0886 Process management 0.841 0.03 0.041 -0.002 0.2717 Business results 0.041 -0.537 0.633 0.191 0.0061 Leadership is established. -0.606 0.036 0.369 -0.16 0.0122 Strategic plan is established. -0.451 -0.202 -0.028 0.318 0.2443 Customer and market is focused. 0.52 -0.287 0.221 0.208 -0.3734 Information is analyzed. -0.038 -0.228 -0.457 0.208 -0.3515 Human resources is focused. -0.333 0.614 0.209 0.575 -0.066 Process management is established. 0.387 0.079 0.186 0.069 0.6467 Business results is measured and evaluated. 0.032 -0.248 0.621 0.428 -0.122

Attached Table MBNQA Criteria Item and Principal Component Structure(1988/1989,1997-2003,2001 former)

1988

1989

1997

FiscalYear

Variable identifier

1999

2001

2003

2001(former)

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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

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management" for the future and "Quality Company" as a direction of the future.

Therefore, there is a reason to propose the introduction and the promotion of TQM to the enterprise because there must be TQM implementing company in the enterprise that have the steady growth even if at such social, economic tempestuous period like today. It is because the company constitution is improved and the agile and mobility overflowed management as for the enterprise to which TQM is introduced, promoted, developed, and advanced never-ending continuously. 7.1.1 Case Study: Vision management of AISIN Co., Ltd.

AISIN is typical auto parts manufacturer that belongs to the Toyota group established by amalgamating of Aichi Industry Ltd. and Shinkawa Industry Ltd. in August 1965. The TQM activities passage for about 33 years of this company is as shown in Table 7.1. When outlining it hereafter according to the step (However, the expression in the TQC age of the content is the state as it is) Step 0: Motive and Trigger (1965-1968) Aichi Industrial Ltd. and Shinkawa Industrial Ltd. amalgamated and it aimed at "International Competitiveness Strengthening". The two companies before it amalgamated existed respectively the business philosophy and the system of Quality Control with a different nuance, and became pressing needs doing the improvement of compny constitution smoothly in order to unite each potential rapidly, to move in the same business philosophy, and to enhance international competitiveness, and launched out QC introduction providing the basic philosophy of "Quality Supremacy". Step 1 Preparation for TQC Introduction (1968-1970)

Though the union of business philosophy advances, and the result of the amalgamation has been raised at last by the QC introduction, because it is high growth and motorization age on the other hand, establishment of QC system centering around factory division and urgent necessary of swift installation of new product development system are obliged. In addition, president declaration “Introduction of TQC” was announce in April 1970 being obliged by necessary of sloughing off QC (in factory) to TQC (in entire company) and use of technique in business for its aims of overall management efficiency improvement and establishment for abroad production facilities and overseas advance (penetrate) base following with division system execution.

Step 2 Construction of TQC Promotion System (1970-1971)

May 1970: Execution of company-wide audit September 1970: Issuance of V50 (Vision for “Showa” 50, andlater change into “V

50” by Christian era) (Vision for 1975)

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Fig. 7.1 Development of TQM in Japan and Introduction, Promotion and Implementation of TQM in enterprise

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Table 7.1 Progress of Management and TQM Activities in AISIN Co., Ltd.

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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. Step 3: Establishment of Division Management System (1971) Step 4: Establishment of Total Management System (1972)

May 1971: Execution of company-wide audit At this moment, the intention of the 1972 Deming Prize candidacy was shown.

And, three projects as pilors of Quality Assurance, Cost Management, and Affair Management by leaders of director were kicked-off and company-wide deployment was began (Introduction of Cross-Functional Management), and concentrated on foundation establishment of 50V Accomplishment.

In December 1971, 50V Project Committee was established to strengthen for 3 Projects excution, and Total Management System with high mobility were proceeded on with compani-wide all member participation. The Deming Prize application was decleared by the president annual beginning speech at the Annual New Year Greeting in 1972, and at same time, it would be the final year for total finishing of foundation establishment of 50V achievement.

The Deming Prize was recognized in 1972 by result of company-wide of TQC activities.

It was praised to express V50 = V75 and to have begun the Vision Management (Management by Vision), and, to open an industrial park as the prevention of environmental safety, beautification, and environmental pollution, and to have opened a unique field to employee's public welfare facilities though the activities were natural the establishment of the Quality Assurance System and the development of New Product and New Technology.

It is an age when the round-up of yen by United States New Economic Policy (dollar shock: Nixon Shock) in August 1971 and the market demand for the zero defect product by the consumer principle had risen meanwhile, and the inflation had grown in severity further in addition, though "Corresponding to high growth" grew up between the current steps 1 and step 4. And, V75 was reviewed, and new V75 was settled on. It was "Achievement of the international enterprise constitution is realized by emphasis to the new product development, widening market share, and saving man-power (mechanization) in production process." Step 5: Enhancement and strengthening of Total Management System (establishment

of independence TQC) (1973-1985) The first term: 1973-1977, Challenge to crisis

The oil crisis in end of 1973 caused production reduction, and unprecedented

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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.

Latter term: 1981-1985, V85 “Aims at Unshakable Enterpize Constitution”.

This age was proceeded as follows. (1) Promotion of business activities according to commodity (2) Establshment of technology of new field commodity

On the other hand, in the age when TPM that had been introduced in 1979 was

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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. And also by All AISIN group concerns. 1982: AISIN Warner Ltd. was recognized for JQM 1982: AISIN Chemical Co., Ltd. was recognaized Deming Prize Small and

Medium-sized Company Prize. 1983: AISIN Light Metals Co., Ltd. was recognized Deming Prize Small and

Medium-sized Company Prize. 1985: Hoyo Seiki Co. Ltd. was recognized Deming Prize Small and Medium-sized

Company Prize. As an individual 1983: Mr. Minoru Toyota, Chairman of AISIN Co., Ltd. was recognized Deming

Prize Individual Prize. Step 6: 1986-1992, Establishment of Strategic TQM System

V90 Long Term Goal was freezed and 140 Operation (Construction of Company Constitution be able to bear even if 1 $ = Y 140) was deployed by short-term because it was expected crisis coming by many reson of profit pressure factor of mony order exchange losses and variaton of sales price etc. though V90 “Enterprise Constitution throughout World” had been proceeded.

Three functions Division System of Market, Development, and Production was established to strengthen the commodity planning function for "Attractive Commodity" creation, it had "Constitution Revolution Study Committee" in addition, and the emphasis of activities was followed under top management initiation in 1987. As a result, it was possible to overcom the Yen appreciation problem, and to be foreseeable to future deployment. Eventualy, new V95 set up tentatively with establishing mid-point objective as V92 and new start was begun aiming at this.

V92 is assumed to be "Aim at the global enterprize to be welcom by the world", and the emphasis measure were as followed: (1) Introduction and deployment for total commodity strategy (2) Establishment domestic and foreign system consolidation for globalization

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

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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.

On the other hand, in the AISIN group 1987: AISIN Chemical Co., Ltd. Ltd. was recognized Deming Prize. 1988: AISIN Light Metals Co., Ltd. was recognized Deming Prize. 1990: AISIN Hoyo Co., Ltd. was recognized Japan Quality Medal. Both of these companies develop from the Small and Medium-sized Company Prize

to the Application Prize (learge company), and there is company to which the company name have been changed as AISIN xx Co., Ltd., too. TQC of All AISIN has progressed more and more.

In addition, followed companies had advanced. 1991: Shinei Industrial Co. Ltd. was recognized Deming Prize. 1991: AISIN AW Co., Ltd. was recognized Japan Quality Medal (second times).

Step 7: Establishment of Vision Management System

V95 was deployed as a fundamental concept (1) Pursuits of High Quality Life

(2) Construction of Global Network and deployed as follows;

(a) To create newer charms through total commodity strategy deployment. (b) To deploy management activities based on global view, to display integrated

power as All AISIN spirit, and to solidify for management foundation. (c) To rear human resources with creative and excutive ability, and to fostera

specific AISIN Culture of “Quality Suprimacy”, recognized as the enterprise of “Attractive Enterprise”.

“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

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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.

“SCOPE 21” mean as follows, (1) Shape Up (To change a way of work). (2) COst Reduction (To change product) (3) Personal Evolution (To change person's conciousness and action). (4) 21 (21st century).

These three activities achieved the result of ordinary profit 26% increase though sales turnover was a 5% decrease in balance sheet of 1994, and "Mad up the constitution that can improve the profitability even if sales decreases."

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

Step 8: 1993-1995, Establishment of Global QM System

The 21st century vision-making was started for aiming the direction of growth and development forward the future while business was sluggish of a long term, and this was brought together by the top down centering on president Mr. Shiro Toyoda who had assumed the position in June 1995 through the Directors Study Committee (Directors GD) of two times.

Society in 21st Century will be faced with the maximum revolution period of the enterpise environment as follows,

(1) Society that invents creative value (2) Society globally opened (3) Society that focus dweller (4) Society with more knowledge and information

And AISIN Co., Ltd. is located "Global Enterprize that creates the Future". (a) Creation of new value (b) Steady growth in international cooperation and competition (c) Symbiosis with society and nature (d) Respect of individual creativity and spontaneity

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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

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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). 7.1.2 Summary of AISIN Co., Ltd. Case Study

Chairman of AISIN Co., Ltd. Mr. Kiyoshi Ito [4] is describing as follows though it took a general view of the history of the TQM introduction, the promotion, development, and advancement for 33 years from 1965 to 1998 above.

『The fundamental principle of ALL AISIN Group Management is

(A) Basis of Group Management It is established under self-managing independent management, from

Group-wid assembly to All AISIN which is not to pursue frofit, but all equally treated under Holon concept without any boss.

(B) Common Concept of Management (1) Basic philosophy: “Quality Supremacy" (2) Vision management (Management by Vision) (3) Improvement and strengthening of enterprise constitution by TQM (4) Cooperative activities as AII AISIN

Cooperation activities through various meetin body of management planning, technology, development, sales, and production functions as top of 9 Companies Round Table Meeting.』

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.

7.2 Process of Introduction, Promotion, Development, and Advancement of TQM

"Fig. 7.2: Process of introduction, promotion, development, and advancement of

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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.

Next, it explains in detail by steps. Step 0: Motive and Trigger In the enterprise, it could be found various motives to introduce of TQM is determined. When enumerating it, (1) A severe economic emvironment like the recession etc. is forecast and overcome. (2) TQM introduction by competitive enterprise (3) Recommendation by parent enterprise (4) Recognition for necessity of breakthrough of its company by top management. (5) Establishment of successor system (6) Establishment of vision management

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Fig. 7.2 Process of Introduction, Promotion, Development, and Advncement of TQM (illustration)

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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. Step 1 Preparation of TQM Inroduction (1) In-house consensus-creation (2) Execution of president TQM examination (3) The president's TQM introduction declaration

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. Step 2 Construction of TQM Promotion System (1) Establishment of TQM promotion organization

The TQM promotion department and all companies TQM promotion committee are often established as a promotion organization. The president usually assumes the chairman position of TQM promotion committee. Because the TQM promotion department general manager's choosing a suitable person controls the success or failure afterwards, it is important. It is the essential factors of appropriate person who has popularity and the site experience, has cooperation and politics in a good meaning, judges by the fact and draw conclusion, and has not narrow-mindedness but a constant effort type.

(2) Development and declaration of mid/long term TQM promotion plan TQM Promotion Plan is prepared for mid/long term plan and annual plan by TQM Promotion Committee and disseminated to each organization through TQM Department and monthly schedule is prepared and excuted by excuting division.

(3) Education and dissemination of TQM

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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.

Step 3: Establishment of Division Management System (1) Introduction of Policy Management

(2) Promotion of business improvement activities (3) Establishment of quality assurance system at production stages (4) Continuous execution of President TQM Diagnosis (execution every year

thereafter)

Step 4: Establishment of Total Management System (1) Promotion of Policy Management and Daily Management (2) Enhancement and strengthening of Standardization (3) Establishment of quality assurance system at sales and service stage (4) Establishment of quality assurance system at project planning and development

stage (5) Introduction of Cross-Business-Element Management

Ceoss-Business-Element Management (Cross-Functional Management or Cross-business elemental management) though cost, delivery date, production, safety, environment and human resouces, now is nessary to consider for

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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. It is possible to aply Deming Prize at this step.

Step 5: Enhancement and strengthening of Total Management System (1) Enhancement of quality assurance system by project development of new field

commodity (2) Enhancement and strengthening of Policy Management (3) Enhancement and strengthening of Cross-Business-Element Management (4) Introduction of Relationship Management

(Note) Relationship Management: Management that measure, considers and evaluate for good or badness relations of "Excellent Relationship" between customer, employee, society, bisiness relation, and stockholder (reference to 4.3.2 Comparison of Criterias: (4) framework, Fig. 4.4 View points of examination in 2001 Deming Application Prize)

(5) Introduction of Product Management and Project Management etc. (6) Introduction of GWQM (Group-Wide Quality Management) (7) Introduction of Cross-Business-Element Management Diagnosis It is possible to start own TQM at this step.

Step 6: Establishment of Strategic TQM System (1) Establishment of quality assurance system by commodity classification at project

planning and development stages (2) Establishment of Total Commodity Strategic System (3) Expansion to GLQM (Global Quality Management) It is possible to apply to JQM after 5 years of Deming Prize recipient.

Step 7: Establishment of Vision Managements System (1) Introduction of Vision Management (2) Clarificating of creed, ethics, vision, mission, and value (3) Fostering for corporate culture (4) Structuring for Vision and Strategy Draft Discussion System of by Directors GD (5) Establishment of Vision Management System

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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".

It is recommended to receive the TQM diagnosis by the Deming Prize committee in the meaning that receives the third party evaluation at the stage of Step 3, and challenge the recognition of TQM achievement. And it is preferable to try the challenge to the Deming Prize in Step 4. However, it is need to note that the feature (It is called the shine thing and something plus) in which the advantage of new system or technology is invented by the enterprise not formal is asked. Also in Step 3, if the original TQM of enterprise added to it and executes with the feature, and a remarkable result has been achieved, the challenge seems worth. It is recommended to challenge the Japan Quality Medal and the Japan Quality Award if becoming Step 6 or Step 7. 7.3 ISO 9000, ISO 14000, and Quality Award

ISO 9000 and quality award seen from factor structure is consicerated as follows. The step in an objective, social valuation of business enterprise by the third party

is put for the enterprise promotes TQM in the process of the introduction, the promotion, development, and advancement of TQM.

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.

206

Fig. 7.3 The Evolution of Strategic Quality Management

207

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,

Stage 1. Operational Quality: "Product Quality" and "Quality of Production Process". Stage 2. Formalized Quality: “Acquisition of ISO 9000” and “Formalized Quality

System”. Stage 3. Strategic Quality Management: In the developmental stage three phases are

recognizable: the control and management of the process quality; strategic benchmarking and quality awards, and diagnostic self-assessment, particularly stimulated by the spread of quality awards.

In general, the standard is specified for minimum requirement to be achieved that

it must not be satisfied with the level of ISO 9000, as for the enterprise concern. Under such circumstances, TQM is, needless to say, to accomplish further higher level of quality system, and physically have been advanced as such to date. Therefor, Quality Award must be contributing for Customer Satisfaction by more aggressive quality system improvement.

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.

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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]).

What is the Vision Management: Vision is imagination with creativity of management, and a compass that

appropriates light to every employee's heart and mind one person one, and becomes the mainspring of the independent and creativity demonstrating.

Therefore, it is the one to indicate the future direction of management innovation, to support a basic judgment in the management innovation indicator and execution, to be called the source of demonstrating personality of the all organization members.

The development of the vision is not merely looking future from the present, but insteadly looking from the future to present for realization of the dream and the plan for the future on now. That is, it is a process of the management innovation that will set up a hypothesis in the future and verifies it. There are corporate principles (creed) in the foundation. It is necessary to reconsider corporate philosophy (creed) in the revolution period of the society and the economic framework like today, because Corporate Philosophy (Crees) should express for identity of company’s Raison Detre.

The structure of Fig. 7.4 has the concept of management and the development step of the Vision Management.

(1) Concept of management

Management of Policy: Change managements are said such as study, review and revision, etc. of the mid/long-term management plan and the annual policy based on analysis and reflection of environmental change correspondence and achievement in fiscal year.

Management by Policy: The management based on the policy of the activity that leads to setting, deployment, execution and evaluation of plan is said.

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Fig. 7.4 Vision Management System

The future

Strategy assessment

Corporate principles

Basic idea of vision

Business identity

Corporate vision

Long-term numerical goal

Definition of business purpose, target, domain

Strategy gap analysis

Comprehensive evaluation of strategic analysis result

Long strategic plan setting

(Basic strategy and basic target)

Long-term strategy

Project

Long and mid-term plan (division,

product, cross-functional)

Long/ mid-term, integrated management plan making

Establishing of annual policy and plan

Execution of annual policy and plan

Check on execution result

Mission, Value

Setting of business attitude

A type action

Setting of code of conduct

S Type action

: print mach (Ajustment)

Reexamine hypothesis

Change strategy

Developm

ent of Vision D

evelopment of Strategy

Annual Policy M

anagement

Managem

ent of Policy M

anagement by Policy

Managem

ent for Policy

210

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.

(2) Deployment step

Because "Annual policy management" for Yoji Akao edited "Practical use of Policy Management" (Japanese Standards Association) and "Strategy development" for Yoshinori Iizuka supervision and Hiroshi Osada written "Strategic Policy Management” have already been published and the step of the vision development is shown in Table 7.2 here.

The use of "Management strstegy office", "Management planning department", and "Directors GD (GD: Group Discussion) or Directors Study Meeting and Directors Training Meeting" is effective to the responsible organization of the vision development. That is, the training camp on about the 2 night 3 days stay is organized, and taking up the several subjects of management problem for the future, discussing thoroughly about the problem in the future and the forecast in the future by the sub-section meeting style, and “the existing condition of own company of the previous of 10 - 20 years" is pursued by participation of all directors. The result of making present its own "Condition it should be" an embodiment from the appearance in the future is settled on, and the president as chairman brings together and the vision is settled on to an integrated discussion. This is not the decision-making organization but a method of all members' obtaining the consensus, recognizing the management problem, and establishing the vision in the Vision Development Stage of Vision Management System.

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Table 7.2 Step of Vision Development Step Execution matter Charge division Consideration matter 1 Study of the current developing process

of corporate principles, business culture, corporate culture, and enterprise

The top Management Planning Division

Decision of the top Grasp of its own current state, intention, problem, and constitution

2 Study and the recognition of change in economy, market trend, etc. in the world and enterpise environment (Economic environment, social image and sense of values: Society, customer, business relation, and employee, etc.)

Directors Study Meeting

3 Study of innovation of significance of existence and business area of enterprise

Directors Study Meeting

4 New conception and assumption of "State of existence" and "Condition it want to be" in the future

Directors Study Meeting

5 Establishing of fundamental plan of vision ① Significance of existence of

enterprise ② Enterprise principle ③ Corporate domain ④ Business objective

Directors Study Meeting Assistance Management planning Division

It brings it together in the top down type.

6 Decision of corporate vision Decision of each vision mission value ① Corporate principles ② Business identity ③ Business structural vision ④ Management function vision ⑤ Social contribution vision ⑥ Environmental contribution vision ⑦ Long-term numerical target

Directors Study Meeting Assistance Management Planning Division

Declaration of the top Commitment of infiltration plan to in-house It is preferable simultaneously to make the mission and the value with the vision.

7

Decision of plan of long-term strategy Management Planning Division Each division

212

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 society

Think about business principle

Think about tomorrow

Think about today

Think about existence

Conformity of justice

Respect of purpose

Dream of organization

Mission of organization

Existence of organization

Morality standard

Management standard

Criteria Attitude (action) standard

Value standard

Human race universal

Enteprise original

Transcending age

Fatal problem Social relatiionship

Identifcation between right and wrong

Keeping of Consistency

Receiving inspiration

Customer identification

Respect acquisition

(in these days it is mentioned for enterprise ethics that it is shown as)

213

Reference document

1. Kozo Koura: Introduction, Promotion, Development, and Advancement of TQM in the Companies awarded the Deming Application Prize and the Japan Quality Control Medal, 39th EOQ Annual Congress, Lausanne, Switzerland, Proceedings, Vol.2, pp.83-88, June, 1995

2. Kozo Koura: History of TQC and its consideration (4) - For TQM -, Asahi Business Review, Asahi University, Academy of Business Administration, Vol. 11, No. 2, pp.85-98, December, 1996.

3. Kozo Koura: Genealogy of the vision management in TQM (completion) - Chapter 4, From strategic policy management to the vision management – Asahi Business Review, Asahi University, Academy of Business Administration, Vol. 14, No. 2, pp.39-61, December, 1999.

4. Kiyoshi Ito: TQC promotion of ALL AISIN, the 25th QS Conference Proceedings, pp.245-248, Japanese Standards Association, May, 1991 of Orlishin

5. Yoji Akao and Kozo Koura: Quality Month Text No.277, "Basis of TQM and development in the future" Quality Monthh Committee, pp. 57-63, October 1998.

6. Yoshinori Iizuka: ISO 9000, TQC restructuring, JUSE Publishers, October, 1995 7. Maria Gisella Conca: A Strategic Approach to the Use of Self-assessment and

Benchmarking, 40th Annual EOQ-Congress, Berlin, Germany, Proceedings, Vol.2, pp.41-52, September, 1996

8. Tadashi Yoshizawa, Kozo Koura: Part 7; Environmental Management and TQM, Chapter 1, Basic Concept of TQM and Environmental Management, Yoichi Kaya supervision, Tadashi Yoshizawa, ISO 14000 Environmental Management Handbook, pp.997-1013, Japanese Standards Association, September, 1999

9. Kozo Koura: Environmental Management and TQM; Norihiro Jidai edited: Asahi University, Industrial Information Laboratory, Vol. 3, "Global Environment and Corporate Activities", pp.57-88, Seibundo, October 1998.

20. Masao Syukuya, Kozo Koura, Yusuke It, Naoki Tanaka, Yasutaka Kato: Investigation and Research on Integration of ISO 9000/14000/ Responcible Care and TQM - As Dainippon Ink And Chemicals, Industry Ltd., Kashima factory - the 61st Research Conference, Research Announcement Summary, pp.21-24, May, 1999.

11. Vision Management in TQM Case Study Committee: Vision Management Guideline, Vision Management in TQM Case Study Committee final report, pp.6-22, pp.39-45, Japanese Society for Quality Control, September, 2003

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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”.

8.1 Cross-Management Factor

The Cross-Management Factor is a feature only of the Deming Prize though it is mentioned in Chapter 5. The feature is in "Cross-Functional Management (It is being called Cross-Business Elemental Management now)" that the Deming Prize recipient enterprise advanced (Koura [1], [2], [3]).

This chapter sets the following three research subjects, and investigates the activitis of Deming Prize recipient enterprises.

Research subject 1: Why did Cross-Functional Management composed the

Cross-Management Factor is bone as the feature only of Deming Prize?

Research subject 2: What kind of management is Cross-Functional Management? Research subject 3: What are the effects of Cross-Functional Managements?

8.2 What is Cross-Functional Management? 8.2.1 Difinition of Cross-Functional Management

It is explained the difinition of Cross-Functional Management first of all. "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.

215

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]).

And, the Cross-Functional Management was introduced by suggestion of the TQC

guidance lecturer in April 1962, and it was declared for president policy "The management system of cross-functional is consolidated" in 1963 (1965 Deming Prize Recipient Report Lecture Summary [6]).

8.2.3 Concept of Cross-Functional Management

The matrix type organization will be constructed by Cross-Functional Management (Horizontal Management) is knit with matching for current Division Management (Vartical Management) because the Cross-Functional Management is division crossing management concerning the important management function. Late Dr. Kaoru Ishikawa is explaining, "In the fiber study, if it is only a WARP the one like the shop curtain (Noren in Japanese), it is started to weaved together (Fully deploy into each division) with the WOOF by it and calls the CLOTH (organization, which means evry organization are fully achieved the deployed objectives)” (Ishikawa [7]). (Note: auther explanation is put in parenthese) It can be called, "Enterprise without the seam (Seamless Enterprize)" by starting the

216

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.

Fig. 8.1 is "Concept Chart of Function s under Company-wide Deployment" of

Toyota Motor. It was thought in Toyota Motor that it was a bottom cause for delay of the new car development and the quality complaint etc. due to the cooperation between those each division was not enough when each division business from the product project to sales was seen as one big process in the above-mentioned in 1962. The quality assurance and the cost management centered, the human resources management and the clerical management as the service offered function were taken up in it, and the Cross-Functional Management as the top management was located by general planning function in order to strengthen the cooperation between these divisions. The function to take by development afterwards has been revised depending on business environment and situations, and extends to the present though this fundamental structure concept has never been changed. (Fig. 8.2) The selection criteria of these various functions is the following two.

(1) Each function is not equal important, and either not going parallel. (2) The auxiriary function is changeable based on the necessity of the business

environment and the enterprise though a main function doesn't change.

The above mentioned processing is as follows. Every director were seated as stuff function to the President, who were assigned to

each functions co-sharing responsibility with plural directors appointed by the President, and were excuting on audit, coordination, and recommendation, etc. for the

217

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.

Human Resources & Administrative Management, etc.

Geneal Planning

Product

Project

Product

Design

Production

Preparation Purchase

Production

(include inspection)

Sales

(office and service)

Affiliates

Organization

Product

Project

Product

Design

Production

Preparation

Purchase

Production

(include

inspection)

Sales

(shop,

service)

General Planning

Customer Sales Mass

Production

Production

Preparation

Design &

Trial

Experiment

Project (Process)

(Quality) (Project) (Maintenance) (Quality Assurance Regultion)

(Improvement) (Quality Project Registration)

Fig. 8.1 Concept Chart of Functions under Company-wid Deployment (Toyota Motor, 1962)

Division

Function

QA

Cost Mgt.

Cost M

agt/

Adm

inistrative

Mgt.

Hum

an

Resources M

gt.

Quality

Assurance

218

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.

Product

Planning

Product

Design

Production

Preparation

Purchase Manufacturing Sales

Technology

Project,

Product

Project

Design, Trial

Experiment

Production

Planning,

Production

Engineering

Purchasing

Management,

Purchase

Head Office,

Motomachi

Plant

Overseas

Operation,

Business

Quality Cost Human

Resources,

Administrative

Commodity

Project

Production Procurement Sales Overseas

Project

Housing

Industry

General

Planning

Cross-Functional M

anagement

Division Management

: Large relation : Relation : Little relation

Fig. 8.2 Cross-Functional Management Organization in Toyota (1989) (Suzuki [12])

219

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”. 8.3 Cross-Functional Management Organization 8.3.1 Cross-Functional Management Committee

At the time of implementing Cross-Functional Management as an enterprise, there is an organization in one that the top management concretely shows. The Cross-Functional Management sets up the committee with authorities of policy, coordination, and diagnosis, etc. about the management critical item (Quality, Cost/ Profit, and Quantity/ Delivery Date, just abbreviate as Q, C, D). They are in general organized as a lower organization of the TQC promotion committee to advance it by the TQC promotion process. When classifying it according to the scale and the management style of the enterprise, it is divided as follows,

(A) Simple organization: Small and medium-sized enterprise (B) Ordinary organization (C) Highly developed organization The following illustrated organization chart was quoted from the Deming Prize recipient report lecture summary of each company.

(A) Simple organization It is a case which the Cross-Functional Management is managed by the TQM

promotion committee (Fig. 8.3). Three departmental meetings (Quality Assurance, Cost Management, and Sales)

are had and have been managed by TQM Promotion Committee though Uchino Construction Company is a companies of the capital about 150 million yen and about 150 employees. It is told that company with less than 10 directors is better to handle

220

cross-functionaly with TQM by board of directors.

(B) Ordinary organization

In Hazama-gumi Construction enterprise, both of headquarter and branches have three function committees of Quality Assurance, Order Management and Profit Management as the lower organization of TQM promotion committee, and, in addition, the headquarters has two function committee of Procurment Management and Technology Development Management with the necessities to control under consolidated and concentrated policy as the headquarters function. It was shown in figure and 8.4 (a).

It is recognized that there are a lot of enterprises with the Cross-Functional

Management Committee as lower organization of the TQM Promotion Committee.

President

TQM Promotion Committee

Fig. 8.3 Simple Organization: 1985 Deming Prize SME Prize Recipient

(Uchino Construction Ccompany)

Board of

Directors

Cost

Management

Department

Quality

Assurance

Department

Sales

Department

Construction

Department

Sales

Department

TQM Promotion

Room

221

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.)

Board of Directors

President

Branch-office

General manager

TQM promotion central committee

Cross-Functional Management

Xx Headquarters

TQM

Prom

otion

Com

mittee

Xx Branch TQM Promotion Committee

Cross-Functional Management

Standardization

Com

mittee

Suggestion

System C

om.

Hazama-gumi (construction

industry):

1986 Deming Prize Prize recipient

Pattern: Shimizu Construction,

Kajima Corporation, Fuji Electric

Co., Ltd. Matsumoto factory

Fig. 8.4 (a) Ordinary organization

Managing

Committee Trchnological

Developm

ent Com

m.

Subcontruct M

gt,

Com

m.

Profit Mgt. C

omm

.

Sales Mgt. C

omm

.

Quality

Assurance

comm

..

Standardization Com

.

Suggestion System

Com

.

Quality

Assurance

Com

mittee

Sales Managem

ent

Com

mittee

Profit Managem

ent

Com

mittee

222

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. (C) Highly Developed Organization

This organization form is established in Toyota Motor, and applied to a Toyota

Board of

Managing

Directors

President

Vice President

TQM promotion committee

Cross-Functional Committee

Instruction

and report

Warking Team (CFT)*

Function Center

Liason Assembly

Cordination

& Advice

Problem

propose

Instruction

Research Laboratory

Departm

ent

Sales and

Service

Departm

ent

Developm

ent and

Manufacturing

division

Managem

ent

Departm

ent

Komatsu (industrial machine)

1981 Japanese Quality Medal

recipient

Pattern: Japan Steel Works

*CFT: Cross-Functional Team

Fig. 8.4 (b) Ordinary Organization

Industrial M

achin

Business

Function

Com

mittee

Profit m

anagement

Function Com

mittee

Am

ount M

anagement

Function Com

mittee

Quality

Assurance

Function Com

mittee

222

223

(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.

General Conference and Function Conference are located as lower organization of the management committee, and in this case, each Function Conference was composed of related director, and takes charge of “Plan” chiefly. If any critcal problem is observed, during operation under “Plan”, Functional Conference is responsible for solution, too, though each division according to the Processing Step takes charge of “Do”.

Also, at each Processing-Steps, own Process-Step Conference organized with responsible directors and senior management are conducted “Check” for evaluation and coordination on their assigned each function’s target item and implementation status and the deployment process assurance status. In addition, the business meeting is presided by each specific function responsible director and every department level responsible management are called for check and coordination of deployment of the company-wide cross-functional policy in deployment process.

Under the Business Division System, Cross-Functional Management organization

should think as an example in which the Functional Decentralization System is combined with the Federal Decentralization System without limiting it to a Functional Decentralization System alone that is the opinion of P. F. Drucker.

In the example of Fig. 8.5 (b) Toyot Cotporation (Automatic Loom Works) Ltd., the Function Conference as all company conference body was organized under immediate control under board of managing directors as the management conference, and nine functions (Quality, Cost, Production Engineering, Purchase, Human Resouces, Education, Safety Hygiene, Information System, and TQM Promotion) were provided.

The chairman was the charge of director of headquarters and all division managers are member, and they had responsible for establishement of the target of each function and the confirmation of the achievement situation, and integrated coordinations, supports to the operation division and interchanging information. To respond for these decisions in each Division, it was organaized by each own conference on Quality, Cost, and TQM promotion and safety and health committee. On the other hand, the Business Conference were organized by development, production, and sales meeting by President presiding, and each division level were also established three Management Conferences (Development, Production, and Sales and Profit).

224

Fig.8.5 (a) Highly Developed Organization

225

Fig. 8.5 (b) Highly Developed Organization

226

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 8.3.3 Operation of Cross-Functional Management Committee

It is explained for major operational concerns; (1) The chairman is assigned to executive director or managing director of function

charge and the committee member is directors with responsibility on function related as few as possible, not necessary to cover to all organization member related. It is sometime better to have another director not directly related but have enough intelligence. The secretary is assigned one of director who is directly reporting to this executive director, and secretary office is located at the function charge division (superintendence division).

(2) Accordingly, directors in cross-function in charge (committee member) are selected among division directors in charge as plural number, and division director in charge takes charge of plural functions.

(3) It is assumed a regular organization (formal character), connects directly with the top management zone like the board of managing directors and the Business Management Conference, etc., and the substantial decision authority is given.

(4) This organization has the role of “Plan” and “Check”, and “Do” is executed by Division Nanagement and line organization.

(5) As for physical operation or excuting phase, depending upon circustance, it is organized Joint Function Committee and Expansion Function Committee by the problem on the management side, moreover, it is organized specially for project team and working group or special committee (Professional or Temporary) as lower organization under Committee for responding on problem solution.

8.3.4 Cross-Functional Management Working Team

The physical execution matter on the promotion is advanced in the line organization or the Cross-Functional Management Working Team so that the

227

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 Implementation of Cross-Functional Management The method of introduction and promotion of the Cross-Functional Management

are summaries of the point of the important concept and how to implement it according to the investigation and research of a lot of enterprise cases such as Toyota Motor, Komatsu, Toyota Auto Body Co., Ltd., Toyoda Corporation (Automatic Loom Works), Ltd., JUKI, Kose, and Japan Steel Works.

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.

8.4.2 Fundamental concept

Because the Cross-Functional Management is an activity built into vertical management (Division Management) as holizontal management, it is activity that recognizes the necessity and importance of cooperation between divisions to the division organization members that is accustomed to vertical thinking. Then, the following and basic concepts should agree in all companies.

228

(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.

8.4.3 Implementation Procedure by Policy Management System

The Cross-Functional Management is implemented through Policy Management System. The step of the implementation procedure is described as follows. (1) To establish for company-wide fundamental objectives (2) To establish for cross-functional target and the means (execution matter) in the

Cross-Functional Management Committee and the Cross-Functional Division for accomplishment of basic objectives.

(3) To allocate cross-functional target and means in to line division target and execution matter and integrated adjustments (print match).

(4) To establish for line division target and inplementation matter in Cross-Functional Management.

(5) To deploy target and execution matter to each part, section, and unit in charge. At this stage, Cross-Functional Management working team is organized and target and implementation matter of project are established.

(6) To set up Management Items and targets in the hierarchical each position of (1) - (5) at the same time of target deployment

(7) To implement cross-functional target and implementation matter put in during line division policy deployment

(8) To evaluates achievement situation of company-wide cross-functional target and executing situation of implementation matter after consodated summerization of executed process performance, and then feed back it to the next year planning by Cross-Functional Division.

(9) To conduct periodic cross-functional diagnosis of cross-functional target and implementation matter in each line department under company-wide standpoint once or more a year, to check Cross-Functional Management System, and to take necessary action by each Cross-Functional Committee.

8.4.4 Procedure of Cross-Functional Management Deployment

The Cross-Functional Management Committee subsystem develops

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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]).

As for the Preceding Process, it is understood “by what (control item)” to be assured to the Succeeding Process “with what (control object)” from this figure.

(2) When is necessary, "Condition it should be" about target function (for instance, Quality Assurance) is identified by using Business Function Deployment of QFD (Quality Function Deployment).

(3) Isolation of problem on system by management system chart (example of Fig. 8.7 Quality Assurance System Chart)

(4) Preparation of Cross-Functional Management Activities Table (example of Table 8.1 Quality Assurances)

Table 8.1 Quality Assurance Activities Table (example of Toyota Motor) (Aoki [5]) Step

(Process) Assurance

Item Work of

AssurancePerson in

charge Assurance

Division For

Assurance

Main Relation

Reguration

Remarks

Fig. 8.6 Clarification of Processes (Control Object) D

esign

Production

Preparation

Manufacturing

Inspection

Sales

Service

Qualiy of

Plannig

Quality of

Design

Quality of

Manufacturing

Quality of

Shipping

Quality

of Sales

Quality of

Marketing

(Management

Objectives)

(Control

Purpose)

Qualiy

Objectives

Quality

Standard

Inspection

Acceptance Level

Quality of

certified

Level

Customer

Satisfaction

Project

230

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.

Table 8.2 Content Item of Cross-Functional Management Activities Table 5W1H Quality Assurance Activities Cross-Functional Activities Where Step (Process) Process (Step) What Assurance Characteristics Function Item How Operation of Quality Assurance Cross-Functional Operation Who Person in charge Quality Assurance Person in charge Function When Division of Quality Assurance Division of Function Why Main related Regulation Main related Regulation

(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

The one obtained by the above-mentioned deploymenet activities as follows, (a) Business Function Deployment Table of “Condition it should be” (b) Cross-Functional Management Regulation (example: Quality Assurance

Regulation) (c) Cross-Functional Management System Chart (example: Fig. 8.7 Quality

Assurance System Chart) (d) Cross-Functional Management Activities Table (example: Quality Assurance

Activities Table) And these are called “4 points set of Cross-Functional Management”.

However, these are just only built up for basic main structures that further more detail deployment action are necessary to have operational unit shop/office participate to make these activities at the end of the enterprise structure.

That is, if the example is taken in Quality Assurance, the system and the frame of Quality Assurance are decided by Quality Assurance Regulations and Quality Assurance System Chart, and the content of function job is clarified by Quality Assurance Activities Table even as for each division, each position, and every induvidual person's job. These are built into the work manual like the Operation Standard and the Clerical Work Standard etc., and the employee performs the activities in "Daily Management".

231

Organization Function Quality Assurance Activities Quality Information Regulation related

Board of Managing

Directors.

New Product

Committee.

Decision of Policy.

Collection of

Information.

Decision of Project.

Market Research

Regulation.

New Product

Development

Regulation.

Research and

Development

Deapartment.

Industrialization

Committee.

Decision of Research

Theme.

Research and

Development.

Industrialization.

Research and

Development

Regulation.

Quality Assurance

Regulation.

Purchase.

Examination and

Inspection.

Manufacturing.

Quality Assurance.

Materials.

Purchase.

Acceptance

Inspection.

Manufacturing.

Process Control.

Productive

Maintenance.

Process Capability

Study.

Intermediate

Inspection.

Delivery Inspection.

Purchase

Mangement

Regulation.

Standard and

Specification

Regulation.

Control Chart

Regulation.

Inspection

Regulation.

Factory

Experiment

Regulation.

Sales.

Branch and Office.

Engineering

Service.

Board of managing

Directors.

Warehouse.

Quality Public

Relation.

Receive Order.

Shipping.

After Service.

Complaint

Treatment.

Product Liability

Measures.

Market Research.

TQM Diagnosis.

Sales and Service

Regulation.

Complaint

Handling

Regulation.

Product Liability

Regulation.

TQM Diagnosis

Regulation.

Fig. 8.7 Quality Assurance System Chart (illustration)

Society

Consumer

Quality Planning

Quality Design

Quality Trial

Process Design

Quality

Manufacturing

Quality

Inspection

Quality

Sales

Quality

Service

Consumer

Society

Basic Research Information

Quality Planning

Information

Quality Design

Information

Manufacturing

Information

Sales and

Service

Information

Market

Information

Qualty Survey

TQM

Diagnosis

232

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. 8.5 Cross-Functional Management, Division Management, Product Management, and

Policy Management and Daily Management 8.5.1 Outline

There is task force organization like project team, task force, QC team, and matrix organization like product manager, SBU management, product management besides Cross-Functional Management, as a method of doing holizontal cooperated play in TQM. Those examples are shown in Table 8.3.

In general, the problem of the cooperation between divisions is solved in project team and QC team as nonstationary organization, and its result is standardized, and put in to Division Management and Daily Management. However, the Cross-Functional Management is born to solve the problem over between company-wide divisions that can not be covered and remained beyond these organizational capability even if the problem of Q･C･D are independently handled by each function charge division, (JSQC, 16th Symposium [15]). Moreover, SBU Management is born because the cooperation between divisions is necessary and important also in the product and the market development as strategic problem (Mochimoto [16]). The Division Management is management accomplished with the basic structure of the management as vertical organization of position classification organization.

In TQM, the management by usual organization of position classification

233

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.

Table 8.3 Conparison of Horizontal Management Organization [16[, [19]

Type Name Explantion Regularity

Organization

Nonstationary

Organization

Task Force

Organization

Project Team

Task Force

QC Team

Group is assembled by person with suitable ability

for it in order to specific problem like R&D,

production, business and quality issue, etc. is solved

intensively and efficiently.

QC Team is

set up regular

sometime.

Matrix

Organization

Organization that individual in division organization

like R&D department play as a project member of

horizontal, oblique not only vertical affiliate.

Product

Manager

Organization that attempt all plan and ajustment of

necessary to growth and profitability of product from

development, production and afterservece of product.

Cross-Functional

Management

Holizontal organization, to achieve functional

improvement of management system for

management efficiency improvement.

Matrix

Organization

SBU

Management

Holizontal organization, to connect directly and

organize horizontally division responsibility in

according to individual product group in marketing

division (headquartr sales) and production division

(number local factories) in Division System.

It is called Strategic Business Unit.

8.5.2 Cross-Functional Management

"The Cross-Functional Management is a management activity that plans company-wide cross-functional target and sets, executes as Policy Management and Daily Management activities of line department, checks its activities results overall, and takes the action for the management efficiency improvement " (Ito [17]).

Each Cross-Functional Committee is organized with top management as chairman and members as related director and manager in charge and the charge

234

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.

8.5.3 Product Management (Strategic Business Unit Management)

Product Management: SBU (Strategic Business Unit) Management is "Matrix systematic management to which product concerned proper problem is treated by division manager concerned (SBU Chief) command in each product project" (JSQC Policy Management Case Study Committee [18]). Because the activity becomes a center in continuous daily operation for project, the point to need the person in charge of working full-time as a rule is different from the Cross-Functional Management.

8.5.4 Project Management

"Business handled as enterprise project in distinction from regular business" (1) New business creation project

(2) New product, new technology, and new maket development project (3) Large-scale purchase (plant order etc.) project (4) Large-scale investment project

(5) Emphatic business improvement project (6) Reaponding to environmental change project

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]).

8.5.5 Relqation between Division Management, Cross-Functional Management, Product

Management, and Policy Management and Daily Managment It is preferable that the system improvement in the Cross-Functional

Management is proceeding by the Policy Management. In that case, the cross-functional policy is established prior to division policy, then based on this, further built into the division policy, and it is executed as described in "Para. 8.4.3 Excutive Procedure by Policy Management System". The result of improvement is standardized, and the Job Description is made and the cross-functional business is accomplished in the Daily Management. The relation described above was shown in Table 8.4. ◎ is to mean it is

235

deeply related, and ○ is related in the table.

Table 8.4 Relations between Division Management, Cross-Functional Management, Product Management, Policy Management, Daily Management

Managment Policy Management Daily Management Relation

Division Management

Executive

Cross-Functional Managment

Product Management

Plan and Diagnosis

Plan and Cordination

Relation mean from Cross-Functional Management to Division Management and SBU Management.

8.6 Effects of Cross-Functional Management The effects are shown as follows.

(1) Cross-Functional decision-making and executions of quality assurance, cost and profit management, and quantity and the delivery date management, etc. become prompt, and company-wide management is smooth and activated.

(2) Cross-Functional Management consciousness is disseminated into the end, comunication between divisions is improved, and human relationship is improved.

(3) The number of department and section need not be so increased because examines the problem by cross-functional view.

(4) It becomes easy for the Bottom Up proposal from the hierarchy below manager. (5) The director becomes to behave as one of executive. It comes to cooperate and

support mutually by not the division profit representative but company-wide broad view and flexible consideration. This leads also to the human resources development such as manager similarly.

8.7 Note on Cross-Functional Management Promotion 8.7.1 Fundamental Principles Fundamental principles are shown as follows.

(1) It is necessary to excute the introduction and promotion of the Cross-Functional Management in the long-term plan.

(2) After Division Management gets on the right track, the introduction of the Cross-Functional Management is advanced.

(3) Cross-Functional Management is implemented how to advance it corresponding to the enterprise scale.

236

(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.

8.7.2 Role of Top Management

(1) The top management deeply understands the necessity and the importance of the Cross-Functional Management, and supports for introduction, promotion and implementation positively.

(2) It is necessary that top management business allotment and decision-making mechanism are cross-functionally as much as possible.

(3) The business operations are necessary to consider it. 8.7.3 Cross-Functional Management Committee (Akao [20])

(1) The Cross-Functional Management committee is authority, and close to highest decision-making organization.

(2) The committee composes only of the director. The professional expert or all related division personel need not be put. It is organized with the decimal (About five people).

(3) Cross-Functional Management Committee is an organization that takes charge of not excution but Plan and Check.

(4) Operation of Cross-Functional Management Committee is excuted flexibly. (5) The member of committee thinks about the one in company-wide management

view though becomes conception of person representing interests of division easily. Moreover, do not confuse with Cross-Functional subject to division subject.

8.7.4 How to implement Cross-Functional Management

(1) The long-term objectives is established, and advanced it in Policy Management system.

(2) There should not be so many cross-functional divisions. The independence of each function strengthens and it interferes each other if it is too many.

(3) The function division is systems design approach, and the consideration of present organization assumes the deferment, and is considered purely the function for achievement of enterprise objectives and organized company-widely.

(4) It is “total Mechanism". The study of company-wide level do not become an excessive management mechanism under concept on “ total mechnism” at the planning stage.

(5) Each function is defined the objective and the evaluation method of the result is established. Each process division is established the Management Item by the concept of "Quality Assurance to the Succeeding Process".

237

(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.

8.7.5 Secretariat Office

(1) There are a lot of long-term problems in the Cross-Functional Management. Therefore, because the clarification and the preparation for committee member's needs become careless, the tenacious and good perseverance assistance of secretariat is necessary.

(2) The initiative of the problem solving is a responsibility of the secretariat that is the function charge division. Obtaining the consensus of the execution division about the content of theme and plan, giving various informations to contribute to independent planning of each division and adjusting and supporting to prevent the unbridgeable gulf between realities it are important.

(3) Ssecretariat understands the intention and orientation of top management and chairman, and collects and consolidates all problems and all data without omission in the audit, diagnosis, and committee activities. In that case, the contradiction phenomenon concerning the delivery date management and the quality of content of information to each division is payed attention. When arranging and analyzing of information, to summarize in the report picking up the problem with new creative idea and additional value (Noda, Tetsuhashi [21]).

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

238

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. 8.7.7 Correspondence to stiffening of Organization and Management by Clarification

of Responsibility between Divisions (1) The cross-functional problem is corresponded to the change in the age and suited

to the environment. (2) There is the concept of "Feed back to Preceding Process, and Succeeding Process is

customer and Quality Assurances to Succeeding Process", and the attitude when the function business is batontouched is emphasized.

(3) Posture in which the wall of division each other is broken, it overlaps, and the function business is accomplished is necessary. Dr. Nishibori had mentioned as shown in Fig. 8.8, this concept was called “Reaching Out” (Aoki [22], Nishibori [23]).

When it is bad

- When it is good

Overlap

Fig. 8.8 Reaching Out

Mr. A Mr. B

Mr. A Mr. B

239

(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.

8.8 Analysis of Cross-Functional Management execution condition in Deming Prize

Recipient This analysis brought mainly together (Koura [24], [25]).

8.8.1 Purpose of Investigations and Researches The Cross-Functional Management was developed and introduced in Komatsu

and Toyota Motor in 1960's. The purpose of the investigation and research can be put from the content of the “Deming Application Prize Recipient Report Lecture Summary” in 1960 - 1990.

(1) Introduction, promotion situation of Cross-Functional Management, kind of function

selected and status of the implementation. (2) Comparison between problems before Cross-Functional Management is introduced

and effects after it introduced. 8.8.2 Method of Investigation and Research

The presence of the introduction and the execution of the Cross-Functional Management was investigated by the following judging standards by "Deming Prize Application Prize Recipient Report Lecture Summary" (Kano & Koura [26], [27]). (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.

8.8.3 Analysis on Cross-Functional Management Introduction and Excution Enterprise (A) Transition of ratio of Cross-Functional Management introduction and execution

enterprise according to fiscal year The ratio of Cross-Functional Management implementation enterprise to

Recipients every each age becomes as Fig. 8.9, etc. The Cross-Functional Management was not still developed at the period until the birth of TQC in 1950's.

240

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.

And, a lot of enterprises execute it as said the enterprise to which three management of Quality (Q), Cost/profit (C), Quantity/Delivery Date (D) that are main functions areexcuted 67% the first half of 1960’s, 71% the later half, 87% of the first half of 1970’s, 73% of the later half, and 71% of the first half of 1980’s and 57% of later half to Cross-Functional Management excution enterprise. Therefore, only “Quality: Quality Assurance” become the remainder part.

1990's

First half Later half First half Later half First half Later half First half Later half Only in 1991

No. of recipient 18 16 6 9 9 21 25 31 4* 139No. of execution 0 0 4 9 9 20 25 31 4* 102% of execution 0% % 100% 100% 100% 95% 100% 100% 100%

% of QCDfunction

0% 0% 100% 71% 87% 77% 71% 57% 60%

(Recipient Enterprises 102 in total 139: 1960-1990) Fig. 8.9 Cross-Functional Management execution condition in Deming Prize Recipient

1980'sTotalAge

1950's 1960's 1970's

% of QCD function

0% 0%

100%

87%77%

71%

57% 60%

71%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Firsthalf

Laterhalf

Firsthalf

Laterhalf

Firsthalf

Laterhalf

Firsthalf

Laterhalf

Onlyin

1991

1950's 1960's 1970's 1980's 1990's

% of QCDfunction

241

(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).

The execution rate % is as follows. Main function: Quality Assurance (97.1), Profit and Cost Management (71.4),

Quantity and Delivery Ddate Management (56.2), Human Resources

Division Function Name of similar functionNumber ofenterprise

Executionrate

Qualityassurance

Quality control and quality improvement 102 97.1

Costmanagement

Profit management, cost reduction,expense control

75 71.4

Quantitymanagement

Production quantity management, deliverydate management, productionmanagement, work term management,construction synthesis management*, workoffice management

59 56.2

Humanresources

managementHuman resources development, morale 11 10.5

New productdevelopment

New product control, precedencydevelopment, technological development,research and development management,product management

32 30.5

Retailmanagement

Order receiving activity management,business activity management

27 25.7

Purchasecontrol

Subcontract management, suppliermanagement, cooperation trader promotion

17 16.2

Safety controlComplaint prevention management, safetyand health management

15 14.3

Environmentalprotection

Antipollution policy and measures 8 7.6

Equipmentcontrol

Equipment QA, TPM, facility management,equipment development, equipmentmaintenance

6 5.7

Informationmanagement

Clerical management, information system 3 2.8

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 theconstruction industry, and it used first in The Shimizu Construction (1983) and

Table 8.5 Execution Rate of each Function in Deming Prize Recipient (1960 - 1990)

Mainfunction

Supportfunction

Number of Deming Prize recipient enterprises

242

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)

Moreover, the change according to fiscal year is as shown in Table 8.6.

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. However, 6 functions (Quality Assurance, Profit and Cost Management, Quantity

and Delivery Date Management, New Product Development, Sales Management, and Safety and Healthcare Management) were analyzed by this report.

(C) Problem when introducing it

The problem when introducing it arranged 928 total sum and these are classified by Affinity Diagram method and Tree Diagram method, and divided problems into 96 items. Because Common and Quality Assurance, especially "Cooperation between divisions is bad" appear at each function division, Table 8.7 are the insertions in "Common" as a total sum.

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.

The main problem in them is showed in Table 8.9.

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.

243

Table 8.6 Transition Table of each Functional Division by age

244

Table 8.7 Problems before Introduction of Cross-Functional Managment

245

Table 8.8 Problems before Introduction of Cross-Functional Managment

246

(D) Effects after introduces it The effects after it introduced it was classified into 1084 of a total sum under

99 categories. Because commonness and quality assurance, especially "Cooperation between divisions strengthens" appeared at each function division, Table 8.10 is put in "Common" as a total sum. Table 8.11 is 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.

And, the main effect in them was shown in Table 8.12.

Division StepCommon Cooperation between divisions is weak. 30

GeneralAll company quality assurance system corresponding to the marketand the customer needs is incomplete.

17

ProjectGrasp of demanded quality, collection of market quality information isinsufficient .

25

Design/ trial Outflow of problem of design and experimental stage to post-process 16Production Outflow of problem of production preparation stage to post-process 20

There are a lot of defective in processes. 22Defective unprevention and recorrance prevention activity that holdsfactor system is insufficient.

20

Quality assurance is an inspection oriented principle. 18Built-in quality in process is weak. 16There are a lot of complaints and a quality troubles. 26There are a lot of emergency measures, and claim management'scorrespondence is slow.

16

Management system Cost project is insufficient. 14

Improvement activityScientific all company profits and cost improvement activities areinsufficient.

14

Production planprocess organization

Lloss by the process complication increases. 11

Stock Amount of stock increases. 11

Project power andtechnology

Advanced technology shortage corresponding to new field 17

Product strategy andinformation gathering

Search, collection, and report of product planning information likemarket, customer, and technology, etc. are insufficient.

15

Development periodand prior study

Outflow of problem of project and development stage to post-processby insufficiencyof prior measures

15

Use of informationCollection, analysis, and use of market and customer information areinsufficient.

13

Business posture Mid/long-term business strategy is lacked. 11

Safety healthcare management activity and system are insufficient. 6

There are a lot of industrial injuries. 4

RemarksThe figure of each column is a problem number. Because the cooperation between divisionsappeared at each division, they are put in "Common".

Safety/healthcare

management

Problem

Cost/ profitmanagement

Amount/delivery datemanagement

New productdevelopment

Retailmanagement

Table 8.9 Main Problem before Introduction of Cross-Functional Management (1960-1990), 102 companies

Manufacturing

Sales service

Qualityassurance

247

If the effects of the above-mentioned Cross-Functional Management are brought together, it is thought as follows. (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.

Division StepCommon Cooperation between divisions was strengthened. 53

Idea and consideration of market in, quality first and quality assurance 30Quality assurance system was maintained. 25Mutual trust with customer has become strong. 15Improvement of product quality and strengthening ofquality leadership 15Standardization concerning quality assurance has advanced. 15

Design makingfor trial

purposesTrouble numbe decrease in post-process by design factor 18

Purchase andsubcontract

Decrease of delivery inspection failure rate (defective rate) 22

Decrease of defective in process and defective loss 37Maintenance of process control system 15Decrease of complaint and customer trouble 45Improvement of customer satisfaction degree 15

Managementconsideration

Improvement of management and improvement consideration of profitand cost

16

Improvementactivity

Profit and cost improvement activity are persisted and have beenactivated.

14

Sales andamount of

stockStock amount decrease and running out of stock rate decrease 18

Productivity Improvement of productivity 17Expansion of new product and improvement of new product sales 37Increase in new product development number 25

Achievement Increase in sales, number of products, and number of customers 24Businessposture

It came to be able to do sales activity of data/process oriented. 9

Safety healthcare accident none 4Strengthening of safety and healthcare management system 3

Remarks

Qualityassurance

Profit/costmanagement

Amount anddelivery

datemanagementNew productdevelopment

Table 8.12 Main Effects after Introduction of Cross-Functional Management (1960-1990) 102 companiesEffect

The figure of each column is an effect number. Because the cooperation between divisionsappeared at each division, they are put in "Commonness".

General

Manufacturing

Sales service

Achievement

Managementfor safety

Retailmanagement

248

Table 8.10 Effects after Introduction of Cross-Functional Management

249

Table 8.11 Effects after Introduction of Cross-Functional Management

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(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.

As a problem in the enterprise of Japan are as follows. (1) The vertical management (management by the method of the command and the

instruction in the line structure) is predominant. Therefore, communications and cooperation between divisions (horizontal type relation) is insufficient, and the horizontal type management is weak and not effective to company-wide problem solving.

(2) For instance, neither the role nor the business allotment of each division for the function like Quality Assurance are clearly and authorized.

(3) "It is necessary to build effective and efficient management system to cooperate between divisions as the tailored smart and fine looking CLOTH with a vertical function like the WAEP and the horizontal function like the WOOF, and to strengthen organizational constitution." for this reason.

Here is the fact how the Toyota Motor stands based on, nothing but Cross-Functional Management concept recognition, and was especially introduced in 1963.

To enumerate results of this investigation and research,

(1) The Cross-Functional Management is the most powerful Business Management technology for the business management efficiency and management level improvement to achieve a higher customer satisfaction degree level by TQM promotion excution at each enterprise.

(2) The necessity and inevitability of Cross-Functional Management will happen, because Cross-Functonal Management problem always exists by the change of enterpise environment and the advancement of technology.

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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.

Based on the above-mentioned consideration, it could be summarized for research subjects of this chapter opening.

Research subject 1: Why did Cross-Functional Management composed the Cross-Management Factor is born as the feature only of Deming Prize?

Mr. Eiji Toyoda, vice president of Toyota Motor Co. introduced the “Cross-Functional Management” under QC Lecturer's guidance at that time of the new product developing competition in high growth period with higher motorization age of Japan. Then, it was introduced and used as the coordinated tool between divisions for the management efficiency improvement in Deming Prize recipient enterprise afterwards.

Research subject 2: What kind of management is Cross-Functional Management?

Because it was the staff management (holizontal management) to the line management (vertical management) as explained in this chapter, and it came to be later called as "Cross-Organizational Management" or "Cross-Departmental management" because management that crossed the division organization.

Research subject 3: What are the effects of the Cross-Functional Management?

It is thought that "Director behave like director" as the maximum effect though speed-up of decision making, strengthening cooperation between divisions, improvement of human relation, and bottom-up proposal, etc. are given as explained in this chapter.

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Reference

1. Kozo Koura: Development of cross-functional management in Japan, Total Quality Management, Carfax Publishing Company, Vol.2, No.1, pp.17-27, 1991

2. Kozo Koura: An analysis of Deming Prize Winners-The Importance of Cross-functional Management in Improving of the Corporate Health and Character, EOQ'93 World Quallity Congress, Helsinki, Finland, Proceedings, Vol.2, pp.32-37, June, 1993

3. Kenji Kurogane edit: "Practical Use of Cross-Functional Management "; Kozo Koura: Chapter 3, How to advance it and note of Cross-Functional Management, pp.33-60, Japanese Standards Association, March 1998

4. Shin Miura, Noriaki Kano, Yoshikazu Tsuda, Yasuo Ohashi: TQC glossary, pp.315, 316, Japanese Standards Association, January 1985

5. Shigeru Aoki: Cross-Functional Management as Top Management (1) - The Concept and Practice of Management in Toyota Motor Co., Ltd. -, Quality Control, Vol.32, No.2, pp.92-98, February 1981.

6. Toyota Motor: Passage TQC promotion (chronology), Deming Prize recipient report lecture summary, pp.12/13, 1965

7. Kaoru Ishikawa, translated by David J. Lu: What is Total Quality Control? The Japanese Way, pp.113-118, Prentice-Hall, Inc., 1985.

8. Taylor, F.W.: Scientic Management, Harper & Brother Publishers, New York and London, 1947

9. Eiichi Furukawa, Susumu Takamiya edit : Modern Management, Yuhikaku, 1964 10. Drucker, P. E.: Practice of Management, William Heiman Ltd. London,1955 21. Takaharu Mizuno: Cross-Functional Management, Quality, Journal of JSQC, Vol.9,

No.4, 25-30, October 1979 22. Hisao Suzuki: Progressing the company policy of Toyota Motor, JSQC, 32th

Symposium Announcement Summary Ccollection, pp.5-8, March 1989 13. Takaharu Mizuno: Cross-Functional Management, Standardization and Quality

Control, Vol.31, No.5, pp.1-9, February 1978 14. Kenji Kurogane edit: Practical Use of Cross-Functional Management, pp.141-156,

Japanese Standards Association, January 1985 15. The 16th JSQC Symposium: Panel Round-table Discussion "Operation of

Cross-Functional Management", Quality, Vol.14, No.4, pp.53-62, October 1984 16. Tosshiyuki Mochimoto: Product Management (SBU Management), Cross-Functional

Management, Quality, Vol.14, No.4, pp.9-14, October 1984 17. Kiyoshi Ito: TQM Promotion of ALL AISIN, the 25th QS Conference Report

Ccollection, pp.245-248, May 1991 18 Japanese Society for Quality Control, Policy Management Case Study Committee:

Guidance of Policy Management management, pp.156-161, December 1989

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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,

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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

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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]). 9.1 Summary of Comparison between Quality Awards

As shown Table 9. 1, one of the subjects of this thesis, the comparison analysis between Quality Award in each country is summarized.

The criteria item in the table was MBNQA: 2003 and EQA: 2002 and JQA: 2001 and Deming Prizes: 2003 were shown. The step and the expenses of the examination were omitted. The effects of JQA didn’t investgated enough. 9.2 Future stand for Quality Award 9.2.1 For Malcolm Baldrige National Quality Award

Kresky [2] presented a paper under "Baldrige+Prescription=An Added Advantage" at the 11th International Conference of the Israel Society for Quality, November 19-21,1996, which was summarized as follows.

" 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.

Moreover, Baldrige National Quality Program: Criteria for Performance Excellence announced for important revision in 2003 (Harry S. Hertz, Director: Baldrige National Quality Program 2003 Changes, Criteria for Performance Excellence; Quest for Excellence and Post Meeting Power Point material).

Those are enumerated as follows.

『(A) It's the System (1) Run the Business Change the Business (2) Evidennce-Based Management.

(3) Knowledge Managemet are added in Category 4 as Measurement, Analysis, and Knowledge Management

256

Table 9.1 Summary of Comarison Analysis of Quality Awards

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(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 (C) Knowledge Management (1) Knowledge Assets (a) Accumulated intellectual resources of orgnization and employees (b) Takes many forms, e.g., idea, learnings, skills (2) Organizational Profile (a) Available sources of competive and comparative information

(3) Category 4 Measurement, Analysis, and Knowledge Management (a) Manage organizational knowledge for: employees, customer and suppliers, best

practices (D) Process Management (Business) (1) Value Creation

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(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 (E) Process Management (Education and Health Care) (1) Category 6 Process Management (Education and Health Care)

(a) Two items: Learning-Centered/Health Care Processes and Support Processes (b) Parallel Structure (c) Think about Student Success/Health Promotion and Support Care (d) Accreditating Is Mandatory; Excellence is a Voluntary Journey

(F) All Criteria Item Updated (1) All in Question Format

(2) Related Question Grouped to Guide Understanding (3) Do Not Require Separate Responces

(G) Basic, Overall, and Multiple Requirements』

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.

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(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).

9.2.2 For European Quality Award

Mr. Peter Docwra, EFQM, Mnager, and Model Promotion & Awards seen in London propose Fig. 9.1 with the ideal way as "Fundamental Belief of the industriall need to align with the belifs of organization" in the idea of EQA criteria to the author's question on the respect though it was described to do clear definitions like culture, ethics, mission, and value, etc. putting the corporate citizen into the criteria as feature of the EQA in this research.

Traditional Managemnt Process (ISO) Customer People Society Cultural

Aim of EQ prize Belief System Ethics

Fig. 9.1 Logic of EQA and Ethics Peter Docwara, 2001

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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. If it is thought at international view, such deepen and progress is thought as a basic philosophy of the Quality Award in the future.

9.2.3 For Deming Prize

It is recognized that Self-Assessment is quite active based on the criteria of the Quality Award in Europe and America. There are a lot of related papaers were presented in the annual conference on ASQ and EOQ. As for relation with this observation, Tsuda [3] is “The ‘Raison d'être’ of Quality Prize. - How Prize Jury Makes Difference from Self – Assessment” was announced on the 40th EOQ Congress in Berlin, on 10th - 12th in September of 1996.

This paper was a full of significance while explaining the practical processing details of examination by experience as one of Judge on the Deming Prize, not only for the examination itself, but before and after the examination for improvement by the Deming Prize under very basic conception of the joint collaboration with Industry and Acadmic professionals.

His coment is summarized as follows.

『(A) The Deming Prize examination itself have been processing through mutual discussion between the applicants industry and the judges to invent for the fundamental techniques such as Policy Management, President Quality Diagnosis, Cross-Business Element Management (Cross-Functional Management) for Quality, Cost and Profit, Quantity and Delivery Date, and Customer Delight, QC Ccircle, and Daily Managements, etc. techniques of today's TQM have been developed during about half a century through collaboration with Industry and Academic professionals.

(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.

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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).

And, the judge makes "Examination report". The content are as follows of 2 points.

(1) Each item of the evaluation checklist for further development of the applicant enterprise is examined. It is noticed point, comment, proposal, and comprehensive evaluation to TQM.

(2) In addition, detailed comment and practical proposal to each division for further improvement advancement

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.

The above-mentioned step is dialectical of "Proposition", "Contrast", "Synthesis", and an anti-positive combination.

(C) How does the examination create value?

How does the Deming Prize examination creates the difference with the Self-Assessment?

They adopt eyes of the third party who has not only useful knowledge and the experience to the industrial world that the applicant enterprise has managed but also advanced knowledge and abilities of TQM and are uniting of two examinations like the evaluation of the TQM execution and the evaluation of the effectiveness of the company, etc.

When you describe two points of the difference (1) Leadership

The leadership is examined by the effectiveness of the creation of breakthrough under desirable leadership of TQM on the business management in the Deming Prize though is sometimes measured by intensity of presennce of a traditional attitude in the self-assessment. (Table 9.2)

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Table 9.2 Comparison of Leaderships between Traditional and TQM Leadership as traditional value Desirable Leadership as TQM

Push Teach Speech, Statement Flexible

Guide Inquie Show by behavior Steady, Consistent

(2) Customer satisfaction In most cases, customer satisfaction is evaluated by the following two

standards in the self-assessment. (a) Whether the enterprise has a certain measurement standard of customer

satisfaction or the data that can be some use to in-house it can be considered as data of customer satisfaction or not?

(b) What points in evaluation did the enterprise achieve in those measurement standards?

The selection of this measurement standard is different according to a relative business position with the customer. However, the importance of customer satisfaction is not in the evaluated numerical value but "It is in the process where method is obtained through the deeper understanding of the customer and score are improved." The success is proven by decrease of complaint, and improvement in customer royalty and sales turnover ratio.

The comparison with the value of the self-assessment and TQM is shown as Table 9.3, when studying like this.

Table 9.3 Difference of Value between Self-Assessments and TQM Value of Self-Assessment Value of TQM

Exssist measure Level of achievment Know customer’s delight

Appropriate measure Method for uproading score Depth of understanding customer Effects of understanding customer in business performance

(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

263

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.』

The above is a valuable paper analyzing difference between self-assessment and

Deming prize examination. 9.2.4 Quality Awards for Future (A) The overall consideration

When MBNQA, EQA, JQA and Deming Prize is considered by their specific feature, it is necessary to consider that most of all Solectron Corporation were recognized as recipient in 1991 and 1997, 2 times for MBNQA in USA and further such muti-time recipients industries will be challengable more, though character and management of awards is described since now.

That is, if it is thought that multi time recipient enterprise have continuous promotion of TQM after first recipient, it is necessary to consider that Deming Prize has the Recognition of TQM Achievement and muti time recipient enterprises, and then the JQM be able to acquires the application qualification after 5 years of Deming Prize recipient. Then, it is a comparison research result that it targets not made of It is considered about two awards tgat MBNQA to be executed until 15 years of 2002 and to collect the information investigation comparatively and Deming Prize + JQM, because EQA is investigatd not enough until now yet, and the JQA has recognized only the recipient enterprise until 9 year. (B) Character of award

When comparing the two Quality Awards, the most remarkable identification is that the MBNQA is enacted by the Law in the country and is managing by Governmental Institute which potent influences are spreaded into establishment of State Awad and the City (Local) Award that are useful for the formation of Quality Culture under the national policy in the USA. However, the Deming Prize was established under serious recognition of necessary for renovation of Japanese Industry by a private organization, JUSE. Accordingly, Deming Prize +JQM is to aim at the improvement of compny constitution and learning of TQM by recognizing "Problem on the improvement of compny constitution" as an enterprise. Therefore, the spread of a latter prize doesn't have the spread power of state award establishment like USA. However, there is a strong point in the point of having obtained the achievment results

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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. (C) Evaluation Criteria

Deming Prize + JQM is not specified as direct expression though MBNQA is stated forward aiming at "Customer satisfaction". However, there has been difference of the point of a social appeal though Deming Prize + JQM doesn't apply essential superiority or inferiority easily in the point that the TQM promotion aimed at "Customer satisfaction" as shown in the above-mentioned.

Moreover, the MBNQA is lucid and comprehensible for applicant enterprises with the distribution point 1000 points in seven criteria items of the emphasis item on the management. That is, the point of "Where they stand and what to do, how much should they do?" is easy to understand, and works easily on the applicant enterprise.

For the Deming Prize concern, the criterion (Fundamental matter, feature, and role of topmanagment and its demonstrating) was shown as for the Guide Bbook of the Deming Prize in 2002 and the evaluation method became clear, too. The Deming Prize criterion is universally expressed and achieves the applicant enterprise to the level in the technique or the management better than the execution level of previous recipient enterprise about "Something New" the every fiscal year by "Activity with the feature". There are effectiveness, consistency, thoroughness, and “Continuance” in the evaluation axis to the evaluation matter and the enterprise is examined, and moreover, if there will not be posture of continuously promoting TQM during the future, there is tacit consent of not reaching the acceptable level, and JQM is required higher level of business management than the Deming Prize. The feature of having stimulated the development of the advanced management technique that it described later can have been done.

However, businesses people might not understand easily the framework of the Deming Prize introduces by 4.3.2 (4) because it has not the frameworks that apply the PDCA cycle of Input-Output-Feedback like other three awards. Then, the framework (tentative plan) such as Fig. 9.2 was made.

(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.

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Fig. 9.2 Framework of Deming Prize Criterion

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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.

The biggest differnce observed in MBNQA is none of guidance for preparation of

Award application by guidance lecturers, but only Self-Assessment and direct physical examination, which system are rather simple and easy to the applicant enterprise without any development own TQM methodology fit-in own product and customer demand, but just done to study the TQM technique voluntarily agreeing with its company, and to develop the new management technique for Bench-Marking level program (for instance, Bench Marking of the Xerox Co.). This concept development was originated under the scheme of how to improve quality level and international conpetitiveness of industry that urgent approach has to proceed on the formura (Self –Assessment and Award Criteria).

It might be above-mentioned point, the MBNQA be "Medical Examination", and

Deming Prize + JQM be a reason said, it is "Physical Fitness Test". 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.

Andrea [4] said this respect is as follows. 『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

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recipient in 1990).

It is thought that "Goodness" for the above-mentioned Self-Assessment by independent esteem of the enterprise and the enterprise side of the award recipient is expressed in this. That is, it is revealed the both parties are insisting own dignity for own technology privilege protection and proprietary and at the same time afraid of infringement. It is one of warning to the examiners that knowledge obtained during examination session would be wiped off once getting out of the room, that the rule of such knowledge examiners. Moreover, the point to specify the confidentiality of information in MBNQA "Judge committee manual" is a good point.

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

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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).

Above mention is summarized as follows,

(1) To create new TQM methodology by guidance meeting with guidance lectures organized before and after Quality Award Examination.

(2) To build a studying chance by President QM Diagnosis, not only for Top management himself, but also for attending directors and managers.

(3) To recogniz that Quality Award is not objectives, but also one mile-stone on improvement process of management level.

9.2.5 Meaning of Deming Prize Existence

The meaning of the existence is considered to be the following one though the Deming Prize is the one founded in commemoration of Dr. Deming's friendship and contribution to Japanese industry in June 1951. (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.

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(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.

『In memory of Ichiro Ishikawa By W. Edwards Deming 10 November 1970 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.

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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]). 『13 June 1955 The beautiful lacquered smoking set, for cigarettes and matches, pleases us very much. You were very kind to send it. We are very proud of our Japanese articles, and we are especially to have some Japanese lacquered ware from a good friend. I hope that you may come to this country again. As you know, I may go to Japan again at the end of November of this 1955. I shall do my best to help Japanese industry. With our thanx and kindest thought I remain Sincerely yours,』

Dr. W. E. Deming, his devotion on educational activity to management in USA from 1980 to his sorrowful pass-way, which had already displaying “in Japan first” with his confident passion to Statistical Techniques and Quality Control under “I shall do my best to help Japanese Industry." could be display by another passion for saving the United States Industries at the age 80 years old, as "I shall do my best to help American Idustry".

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

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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]). (1) Pre-examination: Guidance by guidance lecturer (Instructive studying courses,

Guidance Meeting and supporting for TQM President Diagnosis, etc. while sessioning on TQM President Diagnosis, other directors can familiar with way of Q and A technique by watching.)

(2) Aft-examinaton: Supporting for improvement continuing based on "Examination Report" and continual Guidance Meeting.

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]. Philosophy: Management of respect humanity Manageing Organization: TQM Promotion Committee, TQM Promotion Division, and

Company-wide Cooperative System Management Technique: Management Item, Policy Management, Daily Management,

Cross-Functional Management, TQM President Diagnosis, Strategic Policy Management, QC Circle (Quality Circle), and Vision Management

Quality Control Technique: QC 7 Tools, Management 7 Tools, QC Process Table, Process Capability Investigation, Quality Assurance System Table, Kano Method, Taguchi Method, QFD, Cost Project Planning, 7 Tools for Commodity Planning, Use of Statistical Method, Simultaneous Multi Design, Proceeding Integration Development, Initial Production Flow Management, and Hierarchizing Software Design

Education: Education System by Hierarchylevel (Consistent Educational System from top management zone to worker)

It is necessary to encourage various technique developments with Environmental

Management, TQM for globalization age, and the Information Technology and TQM, etc. as an agenda in the future. These are roles of the Cooperation between Industrial, Academic, and Governmental Sectors to support the Deming Prize Examination

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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. (D) Quality Control is democracy in industry.

Dr. W. E. Deming mentioned as “Democracy in Industry one might say", in the book of “Elementary Principles of The Statistical Control of Quality" (Deming [8]) though this word even is described to the Deming Eight Days Course.

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. 9.2.6 Relation between ISO9000 and TQM

It has been said, "ISO 9000 is not commendation but a certificationan" by difference between ISO 9000 and TQM implementation scheme but because BIG THREE in the USA procceed QS 9000 by combination of TQM and ISO and recommend to parts supplier for implementation, it might be necessary to consider for such concept for TQM innovation stepping, which are already mentioned in Para. 7.3 that is not only Japan but also worldwide trend to reconsider. 9.3 Enactment of National Quality Award in Japan 9.3.1 Domestic Movements

The one typically taken up with each award concerning business management in Japan according to investigation of Hosotani and Irino [10] are as follows.

(1) TQM: Deming Prize and Japan Quality Medal (2) PM･TPM(Total Productive Maintenance) Special Award (3) IE: TP(Total Productivity) Promotion Special Award (4) VE: Miles Award Enterprise Award These are reported their feature and detail comparison analysis.

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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-. 『Ⅳ. Proposal to business administrator and leader of various circles of Japan (1) The JQA is promoted to a national commendation, and try to expand more to have

more population. (2) A top management behavior by leadership is absolutely indispensable to succeed in

the management quality activity. (3) The ultimate methodology of the management quality activity is the human

resources development. (4) It aims at the JQA that surpasses the MBNQA. (5) Establishment at early stage of professional research laboratories of Bench

Marking in Japan (6) Promotion of management quality activity by cooperation of Japan and Asian

countries』

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". 9.3.2 Institution of National Quality Awards

As mention in Chapter 3, the reason for the enactment of the MBNQA by "Minutes of the American Congress", it is recognized that the enactment of the MBNQA were supported not only the movements of the industrial field and individual enterprise but also the leaders of American Quality Control Field, such as Dr. W. Edwards Deming, Dr. Joseph M. Juran, Dr. Armand V. Feigembaum, Mr. Philips B. Crosby, and Mr.

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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. 9.4 Enactment of International Quality Award 9.4.1 Movement in Foreign Countries

At the 50th ASQ Annual Qualty Conference, the paper as "Quality Chain" from Israel (Zonnenshain [12]) was presented. This was proposed that USA had to act as a leader, to advance TQM in a common worldwide direction, to advocate Global Quality Award enactment in that. In addition, he mentioned for organizing of international relationship through ISO program as their standard, and further to mutually exchnge Quality Ambassador each other.

The speaker, Dr. Avidor Zonnenshain is Director Quality and Excellence Center, Israel and past chairman of the World Quality Council (WQC). This WQC established in 1996, and has the 28 organizations of each country and 14 individuals totals 42 members, which were assembled several-time meetings of a year in each country and extends to the present. Moreover, this WQC had Grobal Network of Quality Award Organization (GNQAO) of the Quality Award Organization in each countries, and aimed at the information exchange. Recently, this activity is not active though “Coordinate a world quality award process" was taken up in the project. Moreover, it seems to be interested in a new National Quality Award in each country by NIST (National Institute of Standard and Technology, USA: Malcolm Baldrige National Quality Award Program) and to investigate (inward mail to the author).

NIST invited participant representatives (National Quality Award Organization in the country) from the foreign country as a special guest at the lunch time of the conference, and had an international session and the network session after it ends, and aimed at exchanging as for Quest for Excellence Conference of Malcolm Baldrige National Quality Award, in February, 1998,. 9.4.2 Proposal for International Quality Award

It is a good time to consider for such International Quality Award installation proposal under the worldwide recognition consensus on Quality Consciousness by TQM, ISO, Lean System and each countries’ own Natiional Quality Award Enactment by national level of sharp recognition on Quality Consciousnes. For instance, it is firstly, to

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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?

(1) To be seated by committee members by Quality related academic organization and

society, and professional organization and society in each country etc. that make IAQ the top are made a constituent member.

(2) To organize own domestic committee in each country, and to examine and coordinate domestic opinion and to propose, as own countrys’ representative.

(3) To be received the international support such as ISO and the United Nations, and the domestic support such as the government, industrial worlds, and economic organizations. That is, to be delegate as the representative of each coountry’s authorization, and be supported by every field quality related government and private organization.

(4) To be responsible for international and national cooperation, collaboration and liaison for quality management in technology, techique, tools, and methods, etc. That is, International Quality Award, the problem that should promote internationally jointly, and international human resources and information are exchanged as a handled agenda field.

9.5 “Japan: Country founding on Quality” About Quality Award to contribute for restructuring of Japanese management,

Nakanishi [13] is describing "Reproduction from the advanced country type decline" as follows. When summarizing it.

『The following four exists as a phenomenon of the advanced country type decline.

The first: Decrease in birthrate The second: Financial framework is extremely stringent. The third: Coming of "Season of reformation theory" caused by haste to "Decline" The fourth: Confusion on “values sense”

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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.

As Nakanishi mentioned, it might be caused for Japanese decline of today also in

"Civilization Historical View", but whatever it is, some healthy enterprise in Japan have been continuing on the healthy management under such a situation as same as in USA.

As describing in Chapter 1, "Japan Organization for Quality Innovation" as the

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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.

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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

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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. And, when I make this thesis,

I got various informations on the Malcolm Baldrige National Quality Award from Dr. Harry S. Hertz, Director for Quality Program, NIST introduced by former ASQ Chairman, the late Mr. Willam A. Golomski.

And, the presentation of study permission of Dr. W. Edwards Deming document and Doctor's books in the United States National Congress Library was undertaken from Mrs. Diana Deming Cahill, President of the Deming Institute.

The documents related to the European Quality Award were presented from EFQM Brussels Representative Office. And the idea of the ethics culture etc. of the European Quality Award was discussed and confirmed with Mr. Peter Docwra, EFQM, Manager, and Model Promotion & Awards introduced from Professor Jens J. Dahlgaard, Linköping University, Sweden each other.

In addition, I got a valuable opinion in the standpoint of the management person to whom TQC was promoted from the late Mr. Masao Nemoto, former chairman of Toyotagosei Co. Ltd. in "Quality Award in each country".

Moreover, support from lecturer Yasuharu Sano, Department of Information Management, Lecturer Kei Inayoshi, Department of Business Administration, Fuculty of Business Administration, Asahi University, about the operation of Excel was undertaken.

The ISO 9001 book was presented from Mr. Jyun Nakaizumi, former Chief of Educational and Training Section, Japanese Standards Association.

And, support from Mr. Naoyuki Yanagimoto, the Japan Quality Award Promotion Department, the Japan Productivity Center for Soco-Economic Development, and the Deming Prize Committee Secretariat, Union of Japanese Scientists and Engineers was undertaken.

Additionally, I want to express our gratitude a lot by no enumeration of the name here

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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.