TQM Model of Elements-Deployment Table Developed from Quality ...

TQM Model of Elements-Deployment Table
Developed from Quality Award and its Application
Tsukuba University examination degree thesis
(Doctor)
2004
Kozo Koura

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
6

and the region in November of the same year and "Activity that improved the quality as
the factories of the world" started. Moreover, ICQCC 2003-Tokyo was held in October
2003.
(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.
7

Chapter 2 Deming Prize and its Influence
In this chapter, it clarifies that the Deming Prize that is a typical quality award of
Japan played the role in the promotion of TQM development based on the search report
to the Deming Application Prize awarded companies by Kano and Koura [1], Koura [2],
and Koura [4].
2.1. Transition status of Deming Prize and Japan Quality Medal recipients
The transition status of application and numbers of recipients enterprises of the
Deming Prize and the Japan Quality Medal (JQM from now on and abbreviation) in
1950 - 1999 shown in Fig. 2.1. The figure in circle is a number of JQM recipients in Fig.
2.1.
Sum of Winning Enterprises
250
200
150
100
50
Establishe
d Deming
prize
No. of Deming Prize and Japan Quality Medal recipients
enterprises
Sum
No.:Japan Quality Medal recipients
Set S &
M
Set
Div.
Set
Plant
Established
JQM
①
0
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995
Note: It is omitted Kyushu Cloth Company in this statistics because it was differed
from the application prize in fiscal year 1952 as under a commendation status
citation.
Fig. 2.1 No. of Deming Prizes, and Japan Quality Medal recipients enterprise
transition graphs
The total numbers recognized until 2002 was 205 companies as 188 Deming Prize
companies and 17 JQM companies, and which are counted by 3.6 a year on a total
average only in the Deming Prize, 5.2 companies in 1980 age and 4.3 companies in 1990
age. The overseas recipient enterprise was one U.S.A’s company in 1989 by
internationalization of the Deming Prize in 1986. The Florida Power & Light Co., Ltd.
was in success first, U.S.A, Philips Taiwan Ltd. in 1991, AT&T Power Systems Ltd.,
8
① ①
①
Fiscal Year
Bigin to application
for Overseas
Company
① ①①
①
①
②
①①
①
①
Stop S & M
and Div.
Prize
2000

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
9

overseas companies and except 15 JQM companies (After the Deming Prize is won,
enterprise can apply after five years).
The motive of TQM introduction (Table 2.1) and the purpose of promotion (Table
2.2) and the content of promotion activity (Table 2.3) of these companies were shown.
Each table was separately divided at the age in 1950's every ten years. However, 1990
year is data for 1991-1999 years. These data is the one having been extracted it from the
Deming Prize recipient Report Lecture Summary (Deming Prize Committee, JUSE).
As for the development of TQM in Japan, the contribution of the Deming Prize and
the JQM recipient company was very large. Also the Cooperation between Industrial,
Aacademic, Governmental Sector described in Para 2.5.3 is additionally great
contribution. The companies that aims at the Deming Prize and the JQM have
demonstrated its own originality and developed its idea and technique in addition of
learning the idea and the technique of TQM that was researched and developed till then
from the exchange with senior company that has already won the Deming Prize and the
TQM guidance lecturer.
Next, it is explained that what purpose, and what activity were done in the TQM
promotion process by each enterprises. Please agree to use commingly QC and TQC
terminology, etc. depending on the age in sentences though the title was assumed to be
TQM.
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
10

Motive of
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.
1 Crisis
Consciou
sness
Type
2 Quality
Consciou
sness
type
3 Vision
type
Remarks
Table 2.1 Motive of TQM introduction in Deming Prize recipient enterprise
Year
No. of
1950's 1960's 1970's 1980's 1990* Total
33 16 36 54 39 178
1 Frequent occurrence of
quality problems 6 2 11 23 18 60
2 Market competition
intensification and market
environmental change 9 4 9 20 19 96
3 Liberalization of trade 1 8 3 1 13
4 Oil crisis 15 26 1 42
5 Structual Conversion (Coal,
shipbuilding, textiles, information
service, and bubble) 3 2 10 3 18
6 Appreciation of the yen/trade
friction 8 10 18
7 Global competitiveness 2 2
8 Retirement and death of
founder 1 1 2
1 Insufficient recognition of
importance of TQM/scientific
management 27 11 10 17 21 83
2 Weak capability of new
product and new technological
development. 1 6 8 21 11 47
3 Weakness in cooperation
between divisions and
integrated management system . 9 5 17 22 53
4 Correspondence delay to
diversification and advancement
of market needs 8 30 18 56
5 Respect of humanity and
human resouces development 1 12 16 20 49
1 Achievement of new business,
overseas production, and global
quality 2 6 4 7 7 26
2 Priori preparation for market
and technological innovation 1 8 3 12
3 Achievement of long-term
plan and management vision 15 24 39
The table of Noriaki Kano and Kozo Koura(1991) "Development of Quality Control Seen through
Companies 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
11

In 1960, manufacturing industries were facing and busy with how to license with
new technology and how to reinforce with that the productive capacity, and the concern
for TQC were weakened. However, how to deal with the liberalization of the trade and
capital market, there were Komatsu (1964 Deming Prize recipient was shown later) and
Toyota Motor Co., Ltd. (1965) and Bridgestone Tire Co., Ltd. (1968), etc. as an
enterprise that had recognized the necessity of TQC, and it was called the age of "The
establishment of TQC base".
When entering 1970's, "It needs to foster strong company constitution against the
recession" was shouted to deal with Dollar Shock (1971) and the First Oil Crisis (1973),
market quality competition were intensified more and more, and the concern to TQC to
fight for new product and new technological development power shortage had risen.
In 1980, the enterprise that economical conditions were recognized for needs of
effort to the recovery after Second Oil Crisis (1978) (The trade balance sheet had fallen
from 24.6 billion dollars in 1978 to 1.8 billion dollars in 1979) and as for the enterprise it
was recognized delay of the correspondence to the diversification and upgrading
concerns of market trend, new product and new technological development power
shortage, and weakness of departmental cooperation and system of integrated
management increases in 1980's. Eventually TQC introduction needs were became the
most active as described in Chapter 2. Paragraph 1. There were Sekisui Chemical Co.,
Ltd. (1979) and Fuji Xerox (1980) in the enterprise of which the introduction motive
these. In addition, there are Asumo (1988) and Fuji Iron Works (1988) in the enterprise
that the trade friction became a motive. Moreover, the companies that appreciation of
the yen becames a motive were JUKI (1981), Japan Steel Works (1983), Nippon Carbon
(1985), AISIN Chemical Worker (1987), Asumo (1988), AISIN Shinwa Co., Ltd. (1989),
Hoko Industry (1989), and it continues to AISIN Hoyo Co., Ltd. (1990) and Amada
Wasino (1990) in 1990's.
In 1970-1980's, "How to forecast and overcome of the management crisis" was seen
as major active motive were seen. It could be said, 1980 year of 1970's was
"Breakthrough age by TQC". However, the sprout of the internationalization (overseas
production and achievement of international quality) was seen in the latter half of
1970's and there was an company group by which a strong intention of the management
person "Challenge to the management vision" of taking the action on the market and
the technical innovation in advance became a motive in the latter half of 1980's. In a
typical example, Tokai Kasei Industry (1975), Pentel (1976), AISIN AW Co., Ltd. (1977),
Tyuetsu Alloy Casting (1978), Kyushu NEC Corporation (1979) of for "Achievement of
an international quality" and Nihon Zeon (1985), Komany (1985), Hazama-gumi (1986),
AISIN Chemicals (1987), Daihen (1987), AISIN Light Metals (1988), Amada Wasino
12

(1990), AISAN INDUSTRY (1992), and Nissan Motor Co. Oppama factory (1992: Those
days were SQC ages though Nissan Motor Co. was winning the Deming Prize in 1959,
then, it challenged again.) for "Take in advance of the action on the market and the
technical innovation". There are Toyota Industries Corporation (1986), Aichi Steel
Works (1987), Daihen (1987), Itoki Kosakusyo (1989), Amada Wasino (1990), Aisan
Industry (1992), Jatoco (1992), Toppan Printing Co., Electronics Division Kyushu
factory (1992), Maeda Works (1994), and NT Techno (1994), etc. for "The long-range
management planning is insufficient”.
In the first half of 1990’s, the sharp appreciation of the yen advances to burst of the
economic bubble (1991) and the information technology innovation had happening.
Therefore, the motive of the TQC introduction was made variegated for implementing
necessity, too. Moreover, it is thought that the reason what the company to have
enumerated the development of human resources and respect humanity increased since
1980's was the enterprise that had the global view aiming at the 21st century, needed
creative human resources, and aimed at long-term "Human-development" in the
employee's satisfaction increased.
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
13

Purpose of promotion
1
Managem
ent
purpose
2 Purpose
by
business
element
aspect
3 Division
purpose
4 Posture and
technique
purpose
5 Social
contribution
and employee
purpose
Remarks
Table 2.2 Purpose of TQM Promotion in Deming Prize recipient enterprise
Year
No. of
1950's 1960's 1970's 1980's 1990* Total
33 16 36 54 39 178
1 Improvement of performance
by improvement of compny
constitution 2 8 28 51 26 115
2 Establishment and challenge of
management vision and business
strategy 7 26 24 57
3 Establishment of GWQM 3 1 9 6 19
1 Establishment of quality
improvement/quality assurance
system set up 13 13 34 53 29 142
2 Cost reduction, profit
improvement, and establishment
of cost and profit management
system 5 8 20 29 12 74
3 Establishment of production
(amount and delivery date)
management system 1 3 10 21 9 44
4 Establishment of safety and
environmental management
system 3 5 2 10
1 Strengthening of
project/development power of
new product and new technology 4 4 17 41 15 81
2 Strengthening of sales power 1 4 16 2 23
3 Enhancement and
strengthening of subcontract
and supplyer management 1 2 2 5
4 Strengthening of product
maintenance and quality
assurance 2 3 5
1 Use of scientific management
idea and technique 28 9 9 15 8 69
2 Enhancement and
strengthening of integrated
management management 9 8 14 35 20 86
1 Establishment of cooperative
system by all member 1 7 22 20 2 52
2 Rispect for humanity and
human resource development 14 34 24 72
3 Contribution to local society 1 4 5
The table of Noriaki Kano and Kozo Koura(1991) "Development of Quality Control Seen through
Companies Award the Deming Prize", Report of Statistical Application Research, Vol.37, No.1-
2,1990-1991, pp.79-109, JUSE is revised in 1995. * 1990 year is data of 1991-1999.
14

The establishment of quality improvement/quality assurance system was consistently
a lot of purposes, it is to forecast naturally, that exists to be most in all items. In what
increases from 1970's, there are an achievement improvement by improvement of
company constitution and project/development power strengthening of a new product
and a new technology, and the cost reduction and profit improvement, the
establishment of cost and profit management system, the establishment and production
(Quantity and Delivery Date) management system and the establishment of every
members participative cooperation system though it is next mark. The establishment
and challenge of the management vision and management strategy, the establishment
and improvement of integrated management system, and the respect humanity and
human resources development increased rapidly in 1980's.
When observing like this, the purpose of the TQC promotion started by the
establishment of quality improvement/quality assurance system and the use of the
scientific management technique and the idea and the establishment of the system of
integrated management and completeness in 1950's. The purposes were added such as
improvement of achievement by company constitution improvement, cost reduction,
profit improvement, establishment of cost and profit management system,
establishment of every member participation and cooperation system, and then, the
birth age on TQC enter in 1960’s. When it entered in 1970’s, the establishment of
production (Quantity and Delivery Date) management system, strengthening of project
development/strengthen of product and technology, respect for humanity and human
resources development, were added as purpose. The age of 1980’s was called the TQC
boom, and it was taken up by the above-mentioned each item aiming, and the
conversion from "TQC of the defense" to "TQC of the attack" that the establishment and
challenge of the management vision and the business strategy, and strengthening the
business power was emphasized in addition, and it rushed into the age of the leap and
development of TQC. Moreover, GWQC (Group-wide QC) came to be promoted in this
age. TQC entered the age of internationalization in 1990's, and the contribution to the
local society came to be attached to importance. It is thought that it began to be
recognized as company quality issue like display of positive business attitude to aim at
social contribution of enterprise that became a problem until that time, and to respect
like the establishment of safety and the system of environmental protection that began
to be taken up from 1980's.
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
15

method of promotion, and all company target accomplishment activities and activities
according to divisions. If the item that 100 companies or more adopted in each
classification item is enumerated, it becomes the following.
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.
16

Content of activities
1
Organizatio
n
2 Method
of
promotion
s
3
Accompli
shment of
a goal
three all
company
activities
4
Activities
according
to
division
Remarks
Table 2.3 TQM Promotion Activities in Deming Prize recipient enterprise
Year
No. of co.
1950's 1960's 1970's 1980's 1990*** Total
33 16 36 54 39 178
1 TQM promotion
committee 32 13 28 51 36 160
2 TQM promotion
headquarters 30 16 35 54 39 174
1 TQM education and
training 26 16 34 49 27 152
2 Standardization 22 13 19 45 22 121
3 Quality Circle 10 34 53 22 119
4 Policy Management
** 10 32 53 37 132
5 Cross-Functional
Management 11 32 54 34 130
6 TQM diagnosis * 4 13 22 52 37 128
1 TQM long-term plan 7 7 7 22 13 55
2 Vision management
and business strategy 1 8 25 19 53
3 Quality assurance 9 15 34 52 39 149
4 Cost and profit
management 5 10 21 51 36 123
5 Production (quantity
and delivery date)
management 4 12 40 35 91
6 Safety and
environmental
management 2 14 15 31
7 Human resoources
development 5 6 22 33 66
8 Information
management 2 9 11
9 Social contribution 2 2
1 Management and
improvement of
process and 29 3 2 4 4 42
2 New product and
new technological
development 2 5 10 32 24 73
3 Receiving and sales
management 2 7 23 15 47
4 development of
subcontract and
cooperation trader 3 9 13 5 30
5 Cooperation with
overseas companies 1 2 1 4
The table of Noriaki Kano and Kozo Koura(1991) "Development of Quality Control Seen
through Companies Awarded the Deming Prize", Report of Statistical Application
Resarch, Vol.37, No.1-2,1990-1991, pp.79-109, JUSE be revised in 1995. * The audit
and the q
17

A new product and new technological development were valued more and more as an
emphasis activity according to the division after 1980's while the as Vision Management,
Business Strategy, TQM long-term plan as the part, and all company target
accomplishment activities of the human resoouces development and safety and
environmental management came to be deployed, and recieving and sales management,
the promotions of the subcontract and cooperation company, and GWQC came to be
taken up. It is thought that the above-mentioned all items are promoted overall in
1990's, and cooperation with overseas company and information management are being
recognized.
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.
18

Table 2.4 Tangible Effects of TQM Activities in Deming Prize recipient enterprises
Year
1950's 1960's 1970's 1980's 1990* Total
Tangible effect
No. of co.
33 16 36 54 39 178
1Manag
ement
aspect
1 Growth rate
2 Profitability rate
3 Productivity
1
5
1
9
7
5
21
15
25
46
37
20
30
25
19
107
89
70
4 Stability
4 5 1 10
1 In-process defects and
process control 22 6 15 19 18 80
2 Final product inspection 11 1 2 13 8 35
1 Quality
3 User demerit decrease 8 9 26 42 26 111
4 User merit increase 3 6 16 16 41
2
Manager
ial
element
aspects
2 Cost
3 Amount
and
delivery
5 Market competition
1 Cost reduction
2 Rationalization
1 Production quantity
2 Inventory
10
4
3
1
5
4
2
2
12
8
4
5
7
17
21
3
14
4
9
14
7
6
8
39
58
18
31
24
date 3 Delivery date 3 5 17 12 37
4 Safety 1 Safety and environment 1 6 14 5 26
5 Human
resources 1Human resource development 2 14 40 28 84
6 Social 1 Social contribution 1 1
3
Division
activitie
1 Development capability
2 Marketing capability
6
1
18
1
35
7
24
2
83
11
s aspect 3 Informationization
3 3
4 General 1 Self-evaluation point
8 8
Noriaki Kano and Kozo Koura(1991) "Development of Quality Control seen through
Remarks
Companies Awarded the Deming Prize" and Report of Statistical Application Research, Vol.
37, No.1-2,1990-1991, pp. 79-109, JUSE.be revised in 1995.
Moreover, the effect of Quality (Q), Cost (C), and Quantity and Delivery Date (D) in the
management element aspect is natural. On the other hand, it is the feature recently
that priority is given to Development Capability as the indispensable company
capability in the market competition staked one's survival, and the rise of the concern
on valuing the Sales Capability and Environmental side in addition. Moreover, the
Human Resources Development is thought from valuing "Human Resouces
Development toward the 21st century" as one of the company base construction as
explained in the motive of the TQM introduction.
19

Table 2.5 Criteria for Tangible Effects Evaluation in Deming Prize recipient enterprise
20

The company evaluation technique based on the idea and the technique of the
self-assessment that the MBNQA and the EQA adopt in recent years might be
developed, and the company that gives the self-evaluation has gone out.
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.
21

Table 2.6 Intangible Effects of TQM Activities in Deming Prize recipients enterprises
Age
1950 1960 1970 1980 1990** Total
Intangible effect No. of co.
1 Promotion of improvement of
33 16 36 54 39 178
company constitution 3 12 39 15 69
2 Establishment of management vision
3 Clarification and thoroughness in
10 15 25
1 company's policy 6 10 16 33 16 81
Management 4 Establishment of company-wide
aspect cooperative system
5 Clarification of responsibility and
3 11 27 48 20 109
authority 4 2 6 12 7 31
6 Smooth cooperation between divisions 1 5 22 37 15 80
7 Enhancement of GWQM
1 Establishment of quality assurance
2 3 11 2 18
system
2 Transfer customer and in-house
1 3 10 16 13 43
information smoothly 3 2 12 19 8 44
2 Quality 3 Respect of opinion of other standpoint
assurance and subsequent process 3 1 7 24 13 48
aspect 4 Improvement of confidence of
customer 1 4 10 5 20
5 Quality leadership
6 Accumulation and improvement of
2 5 9 1 17
technology 3 1 3 10 4 21
3 Attitude
and
technology
aspect
1 Spread of idea and technique of QC
2 Promotion of standardization
3 Understand importance of data
4 From the result oriented to the
process oriented
16
9
2
6
4
2
3
21
5
15
15
18
4
14
20
14
1
2
10
75
23
35
48
1 Improvement of quality consciousness 5 8 20 37 14 83
2 Improvement of cost cosciousness
3 Improvement of problem and
5 7 8 7 27
4 Human
aspect
improvement consciousness
4 Improvement of problem-solving
5
bilit
Improvement of self management
2
2
2
2
4
15
15
17
27
29
20
17
15
10
63
63
51
6 Improvement of morale 4 18 12 14 48
7 Human resources development 1 8 11 9 29
5 Social 1Responsibility and contribution to
contribution customer and society 1 1 5 1 8
6 Employee
welfare
1 Making the joyful quality of working
2
lif
Improvement of employee's welfare
3 Build up of labor relations excellent
1
1
1
2
3
1
1
13
1
7
1
1
24
5
4
Remarks
Noriaki Kano and Kozo Koura(1991) "Development of Quality Control seen throough
Companies 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
22

About the Quality Assurance aspect, employee's attitude named the esteem of the
opinion of other party's standpoint and succeeding-process activated in-house
communications like "The Succeeding-process is customer", it led to making smoothly
and the speed-up of the customer and the in-house information transmission, and as a
result the establishment of the Quality Assurance System was promoted. These results
led to the establishment of Quality Leadership and the improvement of confidence of
customer and the accumulation and improvement of technology of Japan from 1980's.
About Attitude and Technique aspect, the idea and technique of QC spread to all
employees and the acquisition of experience of the scientific management and the
system thinking promotes the Process Focus (Cause System Focus) recognition, that is,
from the result emphasis principle to the process emphasis principle. The
understanding of the importance of the data of the process and the data of the result
was deepened, and the enterprise posture in which a good result was standardized and
dvanced to the Daily Management, a bad result was advanced to the improvement
activity (Refer to Human aspect) was formed.
About Human aspect, it is a problem of man's consciousness and ability. All employees
improved the Quality Consciousness (Mind to think the quality to be important) here,
and the problem consciousness and improvement consciousness of the business were
improved, and it came to be thought "The problem existed in infinity", and achieved the
result of improvement of the problem-solving ability based on the QC story by the
improvement activity that used the QC technique (It is included in the spread of the
idea and the technique of QC). And, it is thought that the Self-Control ability is
acquired in the environment of independent esteem, it becomes like "It is not said from
others but proceed voluntarily", it leads in the improvement of morale, and it led to the
human resources development. It is thought that the effect of these human aspects is
steadily solved the problem facing a new problem, and is peeled off and connected with
the ability to new problem discovery willingly. The effect of a Human aspect was
connected with “To build a happy bright workshp which is meaningful to work in” of the
effect on the Employee Welfare aspect. Moreover, the responsibility and the contribution
to the consumer and the society are being recognized as a tendency to suggest the effect
concerning a human aspect of the future in 1980's.
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.
23

It is actually feeling of all employees when this wins. However, inexperienced people for
the Deming Prize challenge newly join a company when the number of employees who
have the actually feeling decreases as the annual is passed or the experience and
actually feeling in the position and the employment title when the Deming Prize
experienced person also challenges the Deming Prize by the promotion from the section
chief to the director etc. cannot be used directly, and an intangible effect of the TQM
promotion will be made hackneyed gradually. The meaning of automatic generation of
the JQM of applicant qualification to the company that passed five years after winning
the Deming Prize as correspondence to this human obsolescence exists. Because both
prizes are fiscal year prizes, application is possible even by degrees how many. In that
sense, the multi time recipient enterprise of Table 2.7 is valuable assuming that the
practice example of obstructing the human obsolescence in an intangible effect of
exactly obtaining it because of all company activity is shown. This table is a typical
example until the first half of 1990's.
The feature in the effect according to the multi time recipient comany is brought
together in the following six points.
(1) The effort for the multi time winning presses a great improvement of the quality
control level.
(2) The quality control system that reaches at the level of one respondent by the last
winning is improved to a precise, advanced system in addition, with the
originality.
(3) An environmental change is taken in advance, and the system making of the market
aim, the customer satisfaction aim, and the source aim is done.
(4) The quality improvement that aims at internationalization and world No. 1 is
promoted.
(5) Growth remarkable like 1.8 times the sales increase in 1.3 times employee increase
of AISIN Kako Co. and 1.7 times the sales increases in 1.2 times employee
increase of AISIN Light Metals Co. when you see the company that won the
application prize after the small and medium-sized company prize is won.
It will be understood to accomplish it in five years that required it the second
winning.
(6) The TQC promotion is used as a tool for the strategic management, and the vision
management has been achieved.
These effects become the physical strength making and the endurance making of
the company, and recovery when the following economy develops and rise up it even at
the recession and burst of the economic bubble become early. The profitability recovery
of 13 multi time recipient companies at the time of the economic recovery can be
guessed from the recession period after oil crises to this for one year according to the
24

average of manufacturing because it was early.
Table 2.7 Multi Time recipients enterprise list in Deming Prize recipient enterprise
(Small and Medium Company Prize → Application Prize, Operation Business Unit
→ Application Prize, Deming Application Prize → Japanese Quality Medal)
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.
25

In addition, there is an company group to which the winning activity of a wide
group that describes it later as the enterprise in the group does apply continually to the
Deming Prize and JQM like Toyota Motor and AISIN Co., Ltd., etc. is promoted, too.
Actually, there is a group where tacit consent that only the company won to the Deming
Prize like the AISIN Co., Ltd. group can apply the words preceding the title generally
disregarded in cataloging of "AISIN" exists, too.
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".
26

Number (x 100)
The event such as convention are held respectively by nine branches of Hokkaido,
Tohoku, Kanto, Tokai, Hokuriku, Kinki, Chyugoku, Shikoku, Kyushu, and Okinawa
besides the QC Circle Headquarters being set up after it starts in 1962.
The activities situation of 40 years in the past is as shown in Fig. 2.2.
45.00
40.00
35.00
30.00
25.00
20.00
15.00
10.00
5.00
0.00
No. of QCC registration, Members, QCC Conventions
(QCCC), Participants, Presentation
1962
1966
1970
1974
1978
1982
1986
1990
1994
1998
2002
Fiscal Year
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.
27
No. of Circle
Number of QC
members
No. of QCC
No. of participants
to QCC
No. of Pesentation
at QCC

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.
28

After 1966, Dr. Juran for five years lectured on QC Circle, and was written
repeating the continent in all parts of the world repeatedly at each visit.
For instance, the keynote address concerning reliability that is the schedule is
suddenly discontinued and it is switched to the lecture on QC Circle in conferring on
EOQC: European Organization for Quality Control (now, EOQ: European Organization
for Quality) held in Stockholm, Sweden in June 1966. The special session was held by
the panelist of the late Prof. Kaoru Ishikawa, University of Tokyo, the late Mr.
Masumasa Imaizumi, Vice Chief of Engineering Department, Nippon Kokan Co., the
late Mr. Heizo Nambo, Chief of Central Committee of Quality Control, Nippon Kayaku
Co., and the Chief of the 3rd. Overseas QC Study Team, and Mr. Hiroomi Hayashida,
Manager of QA Department, Toyota Motor Co. and Vice chief of the 3r. Overseas QC
Study Team attended on that time and carried as the style of answer by Japan side form
question of floor side of about 80 persons of 30 countries by the chairperson of Dr. Juran.
(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
29

Management Theory and the IE introduction shallowly the introduction of Quality
Control and existed in the people in the climate where the solution to such a problem
was found.
That is,
(1) Educational extent must be high, and the assimilation power must be strong.
(2) It must be must loved working, proud of work, and there must be a nature that
is pleased with work.
(3) Have a groupism idea.
(4) The relation between the enterprise and the employee must be close.
(5) It must be the same language and it must be the same race.
These conditions are a nationwide introductions and promotions of the quality
control by needs of the quality revolution of Japan after the war.
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]).
Table 2.8 Comparison of Motivation between another and QC Circle (Juran)
Item Motivatin of another country QC Circle
Quality failure
It depends on worker's fault, The cause of the defect is understood
indifference, and Go-slow strike. only after analyzed appropriately in each
Training of
analytical
technique
The worker is engaged in the
duty decided at all time.
The worker have to be training about the
usage of an analytical technique.
Manager's idea
It doesn't like sparing of the
time of the worker somewhat to
the quality issue.
It is suitable for the solution of
It includes it in the analysis at working
hours.
the problem understanding It is trained so that the worker and the
Leadership without training that
circle member may demonstrate the
demonstrates the leadership for
the problem solving in the
leadership for the problem solving.
(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.
30

Next, when you introduce "Fundamental of the QC Circle" (QC Circle Headquarters [5])
What is the QC Circle?
Fundamental of 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.
31

. 2.5.2 Social Influence of Groups-wide Quality Management (GWQM)
It is considered GWQM program as followed by Koura [10].
(A) What is the GWQM?
Group-wide Quality Management: GWQM is the TQM executed in the company
group including a parent’s company and a related enterprise (related companies, tie-up
company, cooperation enterprise, sales companies, and overseas subsidiary).
The origin of this concept was traced back to the Training Program of the
“Materials and Purchase Quality Control education” on 1950s, and which need were
futher discussion at both of 10th Quality Control Convention in 1950, the 4th Quality
Control Symposium in 1966 and finaly publishing of "10 Principles of Vendee-Vender
Relation of QC" (Ishikawa, Mizuno, Asaka [11] Ishikawan [12] [13]) were expediting for
physical implementation. Komatu Co.Ltd. [14] announced the 1983 Quality Month Text
"TQC by Group-wide QC - from CWQC (company-wide quality control) to group-wide
QC -" in 1983, and then was recognized with in industries.
Table 2.9 is extracted data for GWQM (picked up by auther’s interpretation as
GWQM) among of reports on Deming Prize and JQM recipient company reports. * Mark
means recognized as Small and Medium-sized Industries categories, but which
integrated with Application prize section after 1995 that they are now counted under
Application Prize recipient.
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.
32

Table 2.9 Example of GWQM enterprise group in Deming Prize recipient enterprise
33

As shown in Table 2.9, Toyota Group industries status were remarkably
overwhelming as many as 37 companies (70%) out of 53. This was not only Toyota Motor
himself but also Toyota’s main fundamaantal industries such as DENSO, AISIN, and
Hino Motors were actively supporting to own subsidiaries TQM implementation.
Moreover, they were not satisfied for own present status, but always persuading to
challenge for next higher level of prize, like from the Deming Prize Application prize to
JQM or Small and Medium-sized enterprise prize to the Application prize. It was
recognized that they have been challenging for betterment based on Continuous
Improvement awareness.
(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
34

(d) Guidance system for group members company
(e) Establishment for evaluation system and recognition with evaluation
criteria with referring Deming Prize, JQM, and JQA, etc.
(f) Installation of mutual information interchanging system by way of IT
(2) Organization and management
(a) Establishment for organization and operation within group (Komatsu [14],
Oura [16])
① Senior Manager Informal Social Meeting and Top Management Exchange
Meeting (mutual exchange between presidents)
② Establishnebt of GWQM Secretary Meeting (to discuss project promotion
and corrective action for problem, and the management in the future of
GWQM Program/ once a month.)
③ Liason TQM Committee between cooperation companies (example:
Komatsu Midori Association TQM committee)
④ Various Liason Meetings with company in leading company and group
member companies (Quality Management Technical Committee and QC
Circle Liason Meeting, etc.)
(b) Establishment of organization and operation in leading company (Komatsu
[14], Oura [16])
① Establishment of TQM promotion committee
② Establishment of Xxx (parents company name) Quality Management
prize committee (A leading company commends TQM promotion
excellent company in the group every year. )
③ Establishment of Liason Division to company in group (Purchase
Management Division, Engineering Division and Consulting Division,
etc.)
(c) TQM implementation under one world-wide group
In the Xerox group, it encourages it as the Xerox company in each country
such as Xerox (U.S.A.), Rank Xerox (UK), and Fuji Xerox (Japan) be
challenging to own country Quality Award under vision
"Leadership-Through Quality" (Akiba [13]) (Table 2.10) (The source: From
the Fuji Xerox Co., Ltd. offer material). Its main back ground for
persuasion on such challenging were based on confronting with Xrox in
U.S.A. were facing with sluggish performance from 1970’s later portion to
1980’s, that the Fuji Xrox was implementing TQC in 1976 and recognized
as recipient of Deming Prize 1980.
35

Table 2.10 Main Quality Awards that Xerox group had won
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
36

Fuji Xerox had organized a Mid-term Policy Management Conference to
link in ‘Policy Management’ with person in charge of Southeast Asian
sales companies etc. Also, at time of Fuji Xerox Asia-Pacific Ltd.
establishment in 1991, the QC Circle Convention was organized for
participation of OPCOs representative (nine countries in total: South
Korea, Taiwan, Thailand, the Philippines, Indonesia, Australia, New
Zealand, Singapore, and Malaysian) from 1992 by once a year, as a
regional representative management company, and the victory circle was
recognized for being present at NWW (New Work Way) forum that Fuji
Xerox holds as local delegates (Nihon Keizai Shimbun [20]).
(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).
Set
Education
Course
Master
Practice Improvement
and
Ability
Control
Business accomplishment
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
37
Study
Self-multivationg Study
or Case Study
Presentation Meeting

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.
Employee
Parties
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
38

course and Foreman course, all of an in-house course of every year are
enforceable by themseves. In addition of the above, further continual in-house
courses, fresh man courses for TQC ability development and register every
employee's promotions and raise by TQC education, are expenditing for
prevention of obsolescence of TQC implementatin by continual in-house
education, and total human resources development is carried out by combining
with the necessary professional education and the culture course, etc.
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.
39

Table 2.13 Educational Course of group enterprises (example of Komatsu)
Course name Object person Lecture-time Lecturer Frequency
Top management course: KTMC Director 11 hrs:1.5days outside 1/2 years
Section chief of Related co. course Ssection chief 28h:3days in-house 12/year
: KMC(B) *
Basic course of related co. QC staff 119h/12days in-house 2/year
: KBC(B) *
Instructor training course Candidate 26h:3days in-house 2/year
: QCIT of instructor /outside
Multivariate analysis Manager 32h:4days in-house 4/year
method course: KNV and staff
Design of Experiment needed 32h:4days in-house 2/year
method course :KDE . a special
Reliability management course technique 36h:4days in-house 3/year
: KRM
(*: special course, besides it is executed jointly with our company. )
(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.
40

12 QM Manager
meeting with
member companies
Name/Year
Toyota
QC Award
1970-1994
Komatsu
QC Award
1976-1995
Takenaka
QC Award
1984-1994
Fuji Xerox
QC Award
1985-1995
Table 2.14 Three Sub-meetings and its Objectives
Design and evaluation
Sub-section
Process design
sub-section
Process control
sub-section
41
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
inspection
of process, and
Table 2.15 Quality Control Award of GWQM enterprise group
Type: * 1
QC Award
Excellent Prize
QC Award
Excellent prize
Excellent prize
Superior prize
QC Award
Quality Recognition
Factory
No. of recipient
companies
84
6
20
4
2
7
*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.
43
11
No. of group
companies
Kyohokai 245
Eihokai 78
Total 323
Midorikai, Komatsu
Object companies 93
* 2
Takewakai 1394
Kyoeikai 133

(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.
42

After Maeda Construction Industry Co., Ltd was recognized as recipient of Deming
Prize in 1989 and JQM in 1995, Fujimi Technology Laboratory (1998) and Miyama
Industry (1999) of the collaborating companies were recognized for Deming Prize
(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.
43

③ Proceed 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
44

For raw material : 200 – 300
This is, 9800 – 14000 enterprizes are participated for accompany in a group.
Finished car manufacturer
(In-house mfg. rate is 31%)
Assembly Part
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 less part processing manufacturers
7000-10000 companies
Fig. 2.4 JAMA Report "Division Structure Chart of Car Production”
("Small and medium-sized company white paper" 1991 year version)
45
Materials
manufacturer:
200-300
companies
Secondary part
processing, Plant
equipment
500-600 companies
Same left, tools,
jig, metal mold,

Grancing over such status report, while most of enterprises are identified by “xx
company” showning for one of “KEIRETSU” company but they are physically managing
their own company under GWQM which are needlessly to say company independenet
different dimension (fundamentals) though such a structure is used, isolating from any
spelling by financial or human support. GWQM could be called as “Consensus
Management (management by mutual agreement)” philosophy as the enterprise group
activities to proceed for attainment of self–sustaining independent management and
Coexistence and Coprosperity with “Common Business Philosophy” and “Common TQM
implementation methodology” by combining Group member awareness based on
“Quality Chain”.
For instance, 13 AISIN group companies have steadily been organized “President
Assembly” with president to jointly manage company business of "Vision Management",
"Quality Supremacy", and "TQM Diagnosis" as a common management method. The
Quality Chain here is indicated for the system with which function of each stage of
marketing research, product planning, design, trial manufacturing, production
preparation, purchase, manufacturing, inspection, sales, and service is seamless
(without seam: refer Chapter 8) connected by the Quality Assurance activities based on
the Quality Conciousness. And, the cooperation between every personel regardless
in-house and outside person, organization, and company related to this system
eventually gives birth to Customer Satisfaction (CS) through the product and service.
Toyota group is structured in another different form such as shown Fig. 2.5 because
its structure is established by GWQM.
TQM transition process from big enterprise to middle and small corporation by the
GWQM activities is thought as follows: Toyoda has 14 companies within so-called
Toyota group that are world-wide level functional product company such as DENSO and
AISIN and finished car assembler such as Hino Motors, Ltd., and Daihatsu Kogyo Co.,
Ltd. Their group had established own affiliate company cooperation organization call as
Kyoho Association (206 companies, 2004) and Eiho Association (123 companies, 2004)
(Increase further in future). On the other hand, the foreign parts manufacturer is a
hugeness system by which only TMM has about 300 companies.
Further, not only DENSO (Deming Prize recipient in 1961) that became the pioneer
of the TQM introduction in the Toyota group but other whole companies were Deming
Prize recipient and Toyota itself, Toyota Auto Body, and AISIN, were JQM recipient
enterprise. And, DENSO, AISIN, and Hino Motors had pusuaded own
affiliatedcompany for challenging and recognized as recipient by both Deming Prize and
JQM-recipient companies. The above-mentioned are an active part of the breakthrough
46

and innovation age of Japan with TQM implementation between 1965 and 1980. And
then, the Japan car enters the age that has worldwide competitiveness. In such a
structure, in addition, there is an order to the small and medium-sized enterprise
respectively of the Toyota group and the cooperation companies. That is, the structure of
GWQM concept implementation were spreading into new sector (outside of present
structure) as shown Fig. 2.5. And, to expedite for GWQM implementation not only
Toyota group but in affiliated whole company Quality Committee for TQM
implementation and were deployed into third level subcontractors at present.
Overseas
manufacturer
parts
They are also delivering
to other offer
manufacturers that
numbers are unknown:
Only TMM is about 300
companies.
Support
TSSC**
USA
Toyota
Motor
Corp.
Remarks
* GWQM is composed of each company.
** TSSC: Toyota Supplier Support Center
Fig. 2.5 Structure of GWQM in Toyota Motor (As of 1994.)
(Source. TOYOTA MOTOR CORPORATION offered material)
47
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.
Cooperation companies:
Kyouhou association: 190
companies of manufacturer
related to components
Eihou association: 66
companies of manufacturer
related to equipment

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
48

Comparison Item
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
Vertical Horizontal
Parent and child Parts processing and Techincal tie-up.
relation
production of final Joint development.
Or
product.
Ordering of parts of
Relativity relation. Offering investment product.
and capital.
Establishment of
Furnishing Techincal joint venture
guidance.
company.
Despatching
director.
of
Situation It is always done. Each time when
necessary.
Style Relation that is ruled
the small and
medium-sized
enterprise
enterprise.
by big
Merit Cheaper cost.
Absorption
technology.
of New
Steady relationship.
49
It is not clearly to
rule or not to rule.
Technology
improvement and
complement by
tie-up.
Shared Scale merit.
GWQM
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.
It is always routinized.
Equal level between
purchaser and seller
(Vendee-Vender) relation.
Brother enterprise.
Sharing of common business
philosophy
thinking.
and way of
Improvement
Assurance.
Cost reduction.
of Quality
Improvement
constitution.
of company
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

planning stage, and be opened the door for supporting on quallty, cost,
technology, and physical distribution to enterprise at level of international
conpetitiveness industries. Under TQM methodology, GWQM is one of business
management methodology that leader industries be assisting for process at
umbrella companies and processing for mutual development between brother
companies and eventually be accomplished for expediting improvement of each
company constitution and achievement of Co-existenceand Co-prosperity.
(2) In the AISIN group, there is no boss in the enterprise in the group and all
companies are equal. The name is called as "All AISIN" and the member
companies are called as "Brother Company" in the reason.
(3) If the improvement of company constitution support is requested from the
supplier, the chance is given regardless where located in Japan or foreign
country.
For instance, TSSC was established in September 1992, and began the
support service as already described. In addition, the object of the Toyota QC
Award was expanded to the United States manufacturer in January 1993, and
it was made to become independent as earnings division in May 2002 (Nihon
Keizai Shimbun [28]).
(4) Best Procurement in the World
If only quality, price, technology, and physical distribution, etc. qualified for
competitiveness, Toyota will procure for component/part from worle-wide
manufacturer. This process is now in common sence under internet age, it is
wondering on suppliers qualification program on quality evaluation.
(5) It is encouraged for every subcontractors to be independence through self-help
effort, that is, a new product development are extended, and product sales total
to parent company be 50% less than.
As for tipical example was reported, AISIN AW had developed new
technological oriented AT for FF, which contributed to parent company
development by the new product development in advance prior it. AISIN AW
caught flow of making to Miniaturization and FF trend and forseen necessity
of small-type FF need in market for vehicle utilization, and established the
AW-Z project (Z mean it in there was no back) at the risk of the future of
company, and finally developed and installed the four-speed AT for first FF
car in the world. In addition, AW-Y was acknowledged as for AT for FF with
world highest level of universal installation characteristics and advanced
level of new technology implementation and delivered to assembler faced the
line-off, and attained to the position of world-wide strategic merchandise
(Nayatani, Moroto, and Nakamura [32]).
50

(L) Consideration
It is summarized for GWQM activities as follow.
(1) It is important to build mutual trustworththiness and round-table
meeting between Top management of parent company and Top
management of collaborating company, and to install a comfabulation
chance for concluding on common group-wide philosophy and confirming
consensus of group.
It is as follows that includes creed and vision etc. of the enterprise as the one if it
illustrates it.
Toyota group TOYOTA 2005 VISION: Harmonious Growth
All AISIN group Business Philosophy: Quality supremacy
Xerox group Vision: Leadership-Through Quality
NEC group Business Philosophy: C&C (Computers & Communication)
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
51

the Antitrust Law of the USA, but the vertical is recognized as a category of
strategy, and the KEIRETSU of Toyota is thought the vertical type though a
little characteristic difference is admitted. The specific reason is justified by
“Design-to-Cost” that is enforceable in view of the management side.
Accordingly, GWQM is the quality mind group corporate activities for
improvement focused function that is originated from different angle to
KEIRETSU but it has enough characteristics and performance for supplement
to KEIRETSU effectively.
(6) As for future direction of Qualiy Management, it could be heading to GLQM
corresponding to the progress of the globalization of industrial development of
each company. International companies are constructed their own plant in
forein countries under obligation of ISO 9000, ISO 14000, and QS 9000, etc.
that global concept would be necessary to disseminate for uniform quality
creation in any countries.
(7) Corresponding to rapid advancement of the information technology, e-business
or Virtual Enterprises/shop concepts are beginig to pick up as topic now. The
E-commerce are further developed into BtoB (business to business), BtoC
(business to consumer), and Intranet, too that GWQM itself are necessary also
to reform into product by product, or project by project and cooperation between
enterprises of global network.
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.
52

Fig. 2.6 Social Systems around TQM
53

These social systems were planned and excuted through nation-wide quality control
promotion and wide-spreading industrial standardization into various industries during
50 years long history with ceaseless hard working in Japan.
(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
54

to increase since 1970, which were reflecting for one of counter action to survive, by way
of company constitution improvement under sever economical environment fluctuation
suffering from Trading Freedom, Dollar Shock and Oil-shock.
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
55

concept dessemination and rearing Quality Control leader, then each supporting
organization were physically assisting for every industries implementation with
Government support under joint cooperation activities. Under such situation, various
education, dissemination, research, social diagnosis system and international
interchangeing and liaison activity were continually and effectively structuring with
annual or semi-annual periodic convention or conferences.
Today, the core member of QCRG have been passed out, Professors Shigeru Mizuno,
Dr. Kaoru Ishikawa, and Professor Masao Kigure and Professor Tetsuichi Asaka has
retired, it is an time to welcome new leader for new age and for future.
2.6. Consideration
In this capter, it is conclued that the motive for TQC introduction and
implementation were triggered by rapid change of social environment such as market
and trading status were deeply related with Japanese economical development, and
TQC implementation were recognized not only for tangible effectiveness creation on
quality, cost, quantity (amount), delivery date, and human related contribution, but also
for business performance improvement. It is not confirmed for direct contribution
process to Japanese Economy by TQC, but quantatively summarized as contribution to
Product qualiry improvement, growth of QC Circle activity and growth of GWQM that
the following are conclued.
(1) It is not confirmed for immediate degree of relationship between TQC and
Japanese Economical management and economical indexes yet, but it might be
some degree depending on QC Circle activities status, and some impact of
GWQM.
(2) If only number of Deming Prize and JQM recipient are one of contribution index
for Rapid Recovery after the War II, Japanese industries which have
contributed for productivity and company’s constitution improvement through
quality appreciated business management by mainly production industries (in
these days including Construction and Service industries) were to ranked as the
best contributors fot their effors through physical implementation of Deming
Prize and JQM application under GWQM system with faithful TQC
implementation.
(3) Not only structuring of Social system based on TQM concept , but effective
functioning of joint cooperating oraganization between industry, academy and
Government for TQM implementaion.
Thus, the disgrace of notorious made-in-Japan product as "Cheap and bad" had
wiped out, and Japanese product achieved a fame of "Better and reasonable price"
product exporting, by way of"Quality Revolution" mentioned Dr. Juran [36].
56

Fig. 2.7. Various Activities of promoting TQM
57

Reference
1. Noriaki Kano and Kozo Koura: Development of Quality Control Seen Through
Companies Awarded the Deming Prize, Report of Statistical Application Research,
JUSE, pp.79-105, 1990-91, December, 1991
2. The Kozo Koura: The history of TQC and the consideration - Toward TQM - , Asahi
Business Review, (1) Vol. 10, No. 1, pp. 39-55, June 1995. (2) Vol. 10, No. 2 pp. 21-39,
Dec. 1995. (3) Vol. 11, No. 1, pp.131-147, June 1996. (4) Vol. 11, No. 2, pp. 85-98,
December 1996.
3. Yoji Akao: Feature "It is thought the TQM Declaration(2)" – “thought to be TQM
declaration", Quality Control, Vol.40, No.2, pp.6-9, February 1998.
4. The QC Circle Headquarters Ed.: QC Circle Koryo – Fundamental of QC Circle -, p.5,
Union of Japanese Science and Engineers, November 1970, revised in May 1996.
5. The QC Circle Headquarters Ed.: How to operate QC Circle Activities, p.4, Union of
Japanese Science and Engineers, July 1997.
6. J.M. Juran: QC Circle Phenomenon, Industrial Quality Control, Vol.23, No.7, 1967.
7. J.M. Juran: QC Circle that fosters creativity of worker, Genba-to-QC, No.75,
pp.64-67, 1969.
8. Kozo Koura: QC Circle Activities – Workshop Revolution by participation of all
members - p.112, Sogo Rodo Kenkyusyo, July 1970.
9. Kozo Koura, Hideaki Hattori, and Hiroyuki Fukai: Investigation and Research
concerning QC Circle and Respect for humanity, Institute of Industry & Information,
Asahi University, Report, No.10, pp.101-138, February 2003.
10. Kozo Koura: Investigation and Research on Group-wide Quality Management, Asahi
Business Review, Vol. 15, No. 2, pp.31-52, March2001.
11. Kaoru Ishikawa, Shigeru Mizuno, and Tetsuichi Asaka Ed.: The 4th QC Symposium,
"Problem of Vendee-Vendor Relation", pp. 189-203, June 1967.
12. Kaoru Ishikawa: Group Wide Quality Control - Necessary Condition for Success
and Survival; Journal for Quality and Participation, Vol.11/1, pp.4-6, 1988
13. Kaoru, Ishikawa: Ten Principles for Vendee - Vendor Relation from the Stand point
of Quality Control; “The Control and Assurance of Quality". ASQC. “Procurement
Quality Control". V-V Technical Committee, October 1969.
14. Komatsu Ltd.: Quality Month Text, No. 150, TQC by the group wide- From the
company wide to group wide TQC"-, the Committee of the Quality Month, October
1983.
15. Minoru Toyota: Group-wide TQC in Aisin Seiki Co., Ltd., Quality Control, Vol.35,
No.8, pp.14-18, August 1984.
16. Makoto Oura: Group-wide QC in Komatsu Ltd., Quality Control, Vol.39, No.2,
pp.30-35, February 1986.
17. Tetsuo Yamada: TQC promotion, development toward cooperation company in
58

Takenaka Corporation, Quality Control, Vol.35, No.8, pp.28-33, August 1984.
18. Yosaku To, Yuichiro Yoshikawa and Minoru Harada: QC Activities case by
cooperation with customer, Quality Control, Vol.39, No.2, pp.22-29, February 1986.
19. Kojiro Akiba, Takamitu Ishikawa: Group-wide QC in Fuji Xerox, Quality Control,
Vol.39, No.2, pp.36-41, February 1986.
20. Issue on August 9, 1995, Nihon Keizai Shimbun: "Research of Fuji Xerox (2)-
Coporative Community by Fate"
21. Toshiyuki Uchida: Spread and thoroughness in QC to cooperation enterprises -
Activities that centers on Komatsu Quality Control Award -, Quality Control, Vol.31,
November, extra edition number, pp.303-307, Noember 1980.
22. Koji Tamura: Improvement of Enterprise Evaluating Method for Level Improvement
of Cooperation Enterprise, Quality Control, Vol.33, No.8, pp.84-92, August 1982.
23. Hideyuki Negishi: KEIRETSU and the part procurement policy in Toyota Motor,
Keiei Kodo, Vol.9, No.3, pp. 21-29, March 1994.
24. Masao Nemoto: Quality side of the Toyota Production System - Research of System
Chart for New Pupil -, the 19th Annual Conference Special Lecture Summary
Material, Japanese Society for Quality Control, October 1989.
25. Issue on October 3 2000, Nikkei Industrial News, "Verification: Toyota; Group
management steadily strengthen, M & A, Inside Reorganization, Rearrangement of
Role, and Concentration of Full Power.
26. Issue on October 4 2000, Nikkei Industrial News, "Verification: Toyota; Group
management steadily strengthen, Construction of “KEIRETSU” of New age,
Redistribution of resource by avoiding Repetition.
27. Issue on March 5 1992, Nikkei Industrial News, “Landing stand Toyota- attempt to
reviewing Shape of Centripetal Force by wishing into New Idea.
28. Issue on October 17 1991, Nihon Keizai Shimbun evening newspaper,
"Counterargument toward Criticism of KEIRETSU of Japan - president Toyoda"
29. Japan Automobile Manufacturers Association: "Japanese Car and Parts Industry"
JAMA (Japan Automobile Manufacturers Association) Report, No.42, p.2,1991.
30. David N. Burt, Michael F. Doyle: The American Keiretsu- A Strategic Weapon for
Global Competitiveness -, pp.44, Book Press Inc. 1993
31. Masanori Kuno, Nariyasu Yamada: 1995 Graduation thesis "Investigation
concerning Group-wide QM and KEIRETSU", pp.9-20, March 1996, Asahi
University.
32. Yoshinobu Nayatani, Schuzo Moroto, Taizo Nakamura: Development of Creative and
Attrctive Commodity, pp142-147, JUSE Publishers, July 1997.
33. Vision Management in TQM Case Study Committee: Vision Management
Guideline, Japanese Society for Quality Control, September 2001.
34.Kiyoshi Ito: Attractive Enterprise-making by TQM, JUSE Publishers, June 1996.
35.Masao Kigure: TQC of Japan, JUSE Publishers, pp. 27, June 1988.
59

36. J.M. Juran: Up-coming century of Quality, Quality Progress, August 1994,
pp.29-37. (Keynote Address, ASQ 48th AQC, May 24, 1994).
60

Chapter 3 Quality Award in each Country and its Ssocial Influence
This chapter is summarized that stated subjects of researches for
inter-relationship of their Quality Award enactments process, and their social
influences of implementation in the each countres, through studying on each country
report issued.
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
61

and individual visited to JUSE from abroad were, as shown in Table 3.1, their visits to
JUSE were rapidly increased by group and individual from various countries in 1980s,
and it was observed the peak for visit in 1990, then gradually decreased after 1995. The
country of each visitor were reached 115 countries (59.9% of the world of 192 countries)
during such period. The country disoatched to Japan more than 100 times or more were
counted as 466 from USA, 153 from Brazil, 108 from Mexico of American Continent, and
169 from France, and 111 from United Kingdom of Europe, and 307 from South Korea,
139 from China, 128 from Taiwan, 127 from India of Asia. These survey tour would be
contributed not only for motive and information on introduction of the MBNQA in
U.S.A., EQA in Europe and other quality awards in each country, but for TQM
implementation.
No. of
Table 3.1 JUSE Visit Situation from each country
Group &
No. of
Annual countries individual total people Annual countries individual 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
62
No. of
Group &
No. of
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

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
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
Africa Nigeria, Mauritius, South Africa 3
Total sum 65
Note) The country that was the underline is a country that obtained evaluation criteria.
63
12
31

EQA propagated
to all Europe
and Africa.
DP became the
motive to enact
MBNQA (1987).
MBNQA became the
model of establishment
JQA (1995).
Fig. 3.1 Propagation Route of Quality Award in the World
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,
64
MBNQA
propagated to
north and soouth
America, and
Oceania.
MBNQA became
the Motive to
found the EFQM
(1988) and to
establish EQA
(1991).

Region Japan American European Asia
(except Japan)
Quality Award
Type
Deming Prize
Enterprise
Quality
Aaward
Japan Quality Medalrol
Japan Quality Award
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)
Deming
Prize Malcom Boldorige National
Quality Award
Fig. 3.2 Type of National Quality Award
Table 3.3 Classification Table of Quality Award Types (it overlaps exist)
65
European
Quality
Award
Quality
Award in
Each
country
of
Europe
European
Quality
Award
Oceania
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
Each country
quality
award
Asia 11
Oceania 2
13 countries
(except Hong
Kong)
MBNQA,
originality,
ISO9000

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)
66

One Handredth Congress of the United States of America
AT THE FIRST SESSIONN
Begun and held at the City of Washington on Tuesday, the sixth day of January 6,
One thousand nine hundred and eighty-seven.
An Act
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
67

management-led and customer-oriented require fundamantal changes in
the way companies and agencies do business;
(7) Several major industrial nations have successfully coupled rigorous
private sector quality audits with national awards giving special
recognition to those enterprises the audits identify as the very best; and
(8) A national quality award program of this kind in the United States would
help improve quality and productivity by-
(A) helping to stimulate American companies to improve quality and
productivity for the pride of recognition while obtaining a competitive
edge through increased profits
(B) recognizing the achievement of those companies which improve
the quality of their goods and services and providing an example to
others,
(C) establishing guidelines and criteria that can be used by business,
indutrial, governmental, and other organizations in evaluating their
own quality improvement efforts, and
(D) providing specific guidance for other American organizations that
wish to learn how to manage for high quality by making available to
change their cultures and achieve eminence.
(b) PUPOSE. – It is the purpose of this Act to provide for the establishment and
conduct of a national quality improvement program under which (1) wards are given to
selected companies and other organizatins in the United States that practice effective
quality management and as a result makesignificant improvements in the quality of
their goods and services, and (2) information is disseminated about the successful
strategies and programs.
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
69

September 15, 1988, and the quality management foundation establishment draft book
was signed in chairman Dororl attendance in June, 1987 (EFQM [8], Tsuda [9]).
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, Quality Quality Total Quality Quality
examination Control Assurance Management Award
Belgium ** ** *** ** ○
Denmark * ** *** *** ○
France *** **** **** ** ○
Germany * * ** **** ○
Greece * * * *
Ireland ** *** *** ** ○
Luxembourg * * * *
Netherlands * * *** **** ○
Portugal **** **** *** * ○
Spain **** **** *** * ○
United Kingdam ** ** **** ** ○
Note) Each introductory condition of deepness is somewhat shown about *. The author
added the column of the quality award.
(Brendan Barker Edit: Quality Promotion In Europe. dependence)
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
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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.
73

No. of Companies
120
100
80
60
40
20
0
MBNQA Application, Recipients, State Award/Regional
Award Application transition
1988
1990
1992
1994
1996
1998
2000
2002
Fiscal Year
Unit: Number of State Award and Regional Award applications that is numerical of
MBNQA application, numerical of recipient, and totaled recipient (number of
enterprises)(ten enterprises)
Fig. 3.3 MBNQA recipient enterprise number transition graph
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."
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Application
Recipients
Recipients total
State Award,
Regional Award
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 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.
83

Sum of Winners
70
60
50
40
30
20
10
0
EQA Recipients
Transition
97 Differentiaton
of SME
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Fiscal Year
84
98 Defferentiation
of Public Sector
Fig. 3.4 EQA recipients status
99 defferentiation of
Operational Unit
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

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
85

④ Create a succinct decription of the organization in terms of its activities, ways of
working and results (the Submission Document). This will be valuable in
communication, promotion and training contexts
⑤ Provide you with an opportunity to learn from the good practices of others
⑦ The most significant benefit is the feedback report that is prepared by a team of
independent Assessor – senior managers and experts from across Europe. The
feedback report provides key messages at an overall and criterion level. Lists of
strengths and areas for improvement for each of the sub – criteria addressed in
your application are also provided. The Assessor’s scoring prifile is also given and
there is a comparison with the other organisatoons applying for the Award.
Finally, the Senior Assessor will be available to attend a meeting at your
premises to discuss the content of the feedback report.
(b) Benefits of Winning
① The opportunity to use the logo of the European Quality Award winner, Prize
winner or finalist in corporate literature will clearly establishe the winners as
members of the most successful group of organisations in Europe.
② This should inevitably lead to the emergence of new and more satisfied
customers, fresh challenges and new opportunities for the organisaton.
(c) Sharing good practices
① Award winners, Prize winners and Finalits are expected to share their
experiences and practices at conference and seminar organized by EFQM and its
partners.
② As European role models, Award winners will also be required to make a
version of their successful sbmission avaiabel for all Applicants and Assessors in
their category and could also be included in "Excellent One (EFQM comrehensive
interactive on line learning platform via the Internet)"
③ Each Prize winner will also be asked to document a number of good practices
identified by their Assessor team. They will be incuded in Ecellence One.
③ High scoring Applicants will also be approached by EFQM to include identified
good practices in the EFQM good practice database.
(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
86

2000. The unemployment hovered around 5.6% to 5.7% in 2001 and 2002.
When you show a typical enterprise case
(a) Burton-Apta Refractory Manufacturing Ltd.
Burton-Apta’s 230 employees make refractory ceramic products and complete
systems used in kilns that produce other ceramics. The company has worked to
improve the operational quality of its systems and processes since the eary ’70 and
initiated its operative quality regulaton system in 1976. The emphasis was on the
connection between quality control (of production and product) and technological
development.
The idea of TQM was brought into Hungary by a former professor of Tsukuba
University and MIT guest professor Shoji Shiba (Note: Depend on the request of a
Hungarian Industrial Ministry) in 1986. The Burton-Apta Co. introduced the idea,
won International Institute for Applied System Analysis (IIASA) Shiba-Award in
1993, and acquired ISO 9001 certification. It won a first Hungarian National Quality
Award in the mid-sized business category at 1997 beginning of the year, the European
Quality Award finalist in 1998, the European Quality Prize in 1999 and finally it won
the European Quality Award in 2000. As a result, the production loss decreases and
the market share is rising though an economic depression. The manager in this
company completes new QMS (Quality Management System) now, and is performing
the role of the best practice spread in all Hungary. Moreover, the influence of the
Burton-Apta reaches other enterprises in the region, and gives the environment a
special emphasis.
(b) Herend Porcelain Manufacturing Ltd.
The QMS based on ISO 9001 introduced in 1987 and registration was achieved in
1995, and the development of the TQM system that integrates ISO 14000 and British
Standard Institute’s BS 8000, the safety management system, and other QMS is
carrid out in addition. The failure cost was decreased more than an increase of the
prevention cost, activated the development activities, and strengthened the market
position as a result. The first IIASA Shiba Awarde and the first Hungarian National
Quality Award were won in 1996, and it became a winning of enterprise
ecology-business awards in 1999 and 2001.
(c) Pick Meat Co.
The idea, the tool, and the technique of the quality were widely used after it had
established it in 1986, the Bronze Medal at the 1900 World Expo in Paris, a certificate
of merit at the 1935 World Expo in Brussels, the Hungarian National Quality Award
in1999 and recognition for excellence by the EFQM in 2001 and 2002. Moreover, the
execution of calling GMP (Good Manufacturing Practices), GHP (Good Hygiene
Practices), HACCP (Hazard Analysis and Critical Control Point), and QCCP (Quality
Analysis and Critical Control Point) was decided, ISO9001 was registered in 1995,
and the system was later improved and audited to ISO 9001: 2000. Crystal Crown
87

Award was won at the international festival held in Birmingham, Alabama, USA in
2001. There are the synergy teams made up of parent company and affiliate
companies.
(d) Westel Mobile Telecommunication Co.
Founded fewer than 10 years ago, Westel Nobile Telecomunications Co. Ltd., the
leading provider of 1700 people or more's Hungarian wireless communication service
enterprise now. The use of the Malcolm Baldrige National Quality Award criteria began
under the guidance of the United States’s consultant in 1994, and it became the
Hungary’s first telecom provider to achieve ISO9001 certification in 1995. 25 managers
participated in the EFQM self - assessment criteria in 1996, the improvement plan of
each division was made, and it executed it in the business scheme. It became the first
Hungarian National Quality Award winning enterprise in the Hungary service sector of
the same year. This was followed by the European Marshall Award for business
achievement in 1998 and the Hungarian Innovation Award in 1999. EQA Prize were
won in 1999 and ISO14000 cetification came in 2001.
(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.
88

Table 3.5 Japan Quality Award recipient enterprises
89

The social influence of JQA is summarized by analysis of awarding justification by
KJ-method as “Analysis of business performance improving trend ar the recipients”
(from the Management Quality Council Report).
Typical excellent company are proceeding on self-conclusion and high efficient,
agile management style based on own prominent business creed and CS management to
challenge for change of sever market and customer needs and conforming with rapid
technical innovtion age in severe industry environment, amid depression of
international economy, collapse of bubble economy etc, as for rapid change and low key
of social economical condition.
Each company are started for kicked off of Customer Value Creation and business
quality improvemen activities and self-moteve and giving birth to Joy of Work activites
under sharing a vision with customer, partner and employees, and strong leadership of
Top Management.
As for its strategy concerns, deployment for heavy awareness on Customer Value
Creation, foreseeable technical strategy, environment full protection strategy, and
concentrating and structuring of cooperation system for business process improving
activities on customer reception service, information co-possetion program beyond
company organization and structure boundary by IT, structuring of human resources
fostering, studying program, and open and challenggble quick respondable tacit
organizational climeate, and obtaining higher customer satisfaction level, customer
retention and market share expansion, improving recognition of high market evaluation
by excellent performance achievement, then the enterprise success model with further
development of these results by continuous assessment is shown. .
(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.
90

Table 3.6 Management Quality Awards spreading to Japan various places (2003. )
No. Regional Award Regional Council
(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
91
Regional Reseach
Society
Approach of the
Administration
1 Iwate Prefecture Iwate Prefecture Hokkaido Iwate Prefecture
2 Aizu Wakamatsu Akita Prefecture Gunma Prefecture Takizawason
3 Tochigi Prefecture Miyagi Prefecture Kanagawa Prefecture Ibaragi Prefecture
4 Ibaragi Prefecture Aizu Wakamatsu Centrall part district Mitaka City
5 Chiba Prefecture Tochigi Prefecture East part of Shizuoka Yokohama City
6 Itabashi Ibaragi Prefecture Hokuriku Mie Prefecture
7 Niigata Prefecture Saitama Prefecture Toyama Prefecture Matsusaka City
8 Fukui Prefecture Chiba Prefecture Tottori Prefecture Gifu Prefecture
9 Mie Prefecture Niigata Prefecture Shikoku Fukui Prefecture
10 Hyogo Prefecture Fukui Prefecture Kochi Prefecture Sabae City
11 Nagasaki Prefecture Mie Prefecture Saga Prefecture Kobe City
12 Kansai Kagoshima Prefecture Kochi Prefecture
13 China Okinawa Prefecture
14 Kyushu
15 Nagasaki Prefecture
Total 11 15 13 11

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.
92

(2) What kinds of social economical influence were observed in each country by
Quality Award establishment?
The Quality Award was created the flow of the worldwide attention of
“Quality Awareness” not only just by each country but also by global people.
As recognizing of the prosperity of the USA in 1990s, the MBNQA have been
contributed to the recovery of US economy by improvement of international
competitiveness of American Products and the enterprise. The operation
expense of the Malcolm Baldrige Quality Program from 1998 to 2000 is $1.19
million, and the economical effectiveness $24.65 billion (under modest
estimation), and the social investment effect rate is counted as 207 times.
As for EQA concerns, its social and the economic influence of the EQA are not
surveyed yet, it is recognized for EQA benefit such as to recommend for
business excellence model to industry, and identify and recognize for
recipient industries as glorious EQA Recipient by logo, and study program
through home-page progrum was enabled in European industrial world.
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.
93

Reference
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94

17. Ichiro Miyauchi: Circumstances concerning quality in European nations (2),
ENGINEERS, No.565, pp.1-5, November 1995
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No.2, pp.55-64, February 2003
95

Chapter 4 Development of Comparison Methodology of Quality Award
As for mentioned in the previous Chapter 3, the Quality Awards in each country are
developed to evaluates the best practice of TQM implementation in each country
concerted efforts now, and it is possible to contribute to systematic understanding of
basic philosophy and objectives on TQM implementation through comparison of the
criterias. In this chapter, it is proposed the criterias comparison method developed by
Koura and Yoshizawa [1]. The proposal method in this chapter can be applied to not
only the comparison of National Quality Awards related to TQM but also the
comparison of more general criteria.
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
96

national features (EFQM [4], [5]).
The JQA were established for purpose of revolution and creation of international
competitive edge by improvement of business management quality in Japan after the
model of the MBNQA in 1995. It is necessary to compare fortheir value and contribution
with the Deming Prize internationally and domestically as a quality award in Japan
(Japan Quality Award committee [6]).
The Deming Prize became the mainspring of the Quality Revolution in Japan after
the Foundation in 1951, and also under reviewing from technology propagation, it was
recognized for uprising and spreading for quality awareness into worldwide level and
expediting for MBNQA establishment in USA (Deming Prize committee [7]). The
Deming Prize is consited of “Deming Prize for Individual”. “Deming Application prize”
“Quality Control Award for Operations and Business Unit”, and my study is based on
Deming Prize to industrial organization but just abridged as “Deming Prize”.
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
97

Award TQM Element Deployment Table is used in Para 4.4.
Then TQM Quality Award Element Comparison Matrix (synsethis) is proceeding to
Cluster Analysis for reconstructing of TQM Element Deployment Table (synthesis).
This reconstructive table is used as common standard (It is said anchor) that becomes
basic for the comparison between the system of a lot of awards and TQM model. The
final TQM Quality Award Element Comparison Matrix of 180×46 is combined each
Quality Award TQM Elements Deployment Table with TQM Elements Deployment
Table (synthesis) that composes the result of the Cluster Analysis again.
At this stage, it is concluded for result from studying and refered for problem
remained.
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.
98

(6) As for the period from the application to recognition, the Deming Prize is one year
and the MBNQA is six months (Remark: However, Deming Prize is that physically
May 31 is the deadline of application presentation and announcement of recipient
and Deming Ceremony are November that it is also six months).
(7) Regarding for these discussion, Mr. Reimann (NIST, Quality Program, Associate
Director) [12] was supplemented as follows;
(a) The MBNQA is more appreciated TQM or the Total Quality concept.
(b) Target Community is covering broader sectors as manufacturing, service,
government, hospital, and school.
(c) The MBNQA is heading for performance orient evaluation, and appreciating
results than Deming Prize evaluation. As for organization or methodology
concerns, it is depending on industries options as non-restrictist and just
request for evidence of their innovation atatus and adaption effectiveness.
(d) The examiner team of the MBNQA selects the examination committee member
among professional people in industrial sector and university every year. And,
those members have not any experiences of guidance relations with potential
applicant organization like Deming Prize. This is reason that a specific
technique is not encouraged like above-mentioned Performance Orientation at
all.
(e) The MBNQA was designed for not emphasizing on qualification evaluation, but
for competitive based evaluation, because a competitive oriented system are
more encouraging to apply by the best model in every industries. The Deming
Prize evaluation is soley depending on JUSE Counsellor's (Note: Academic
society and public professional experts) interpretations for the criteria.
It is understood that the Deming Prize emphasize TQM and use of the statistical
method and the MBNQA emphasize Total Quality with competitive concept.
(B) Nakhai & Neves [13] presented the paper that the Deming Prize, the MBNQA, and
the EQA call under Quality Management Continuum, and compared their award
criteria and application categories, based on their fundamental value creation
concept and their Quality Management concept as follows in 1994.
(1) The Deming Prize is defined "The prize is given to the enterprise to which it is
recognized that the Total Quality Control based on the Statistical Quality Control
was surely executed, and seems to be continued it in the future". Evaluation
characteristics are specified quality assurance activities, quality performance, and
elimination of failure, but not for human resources development, customer
satisfaction, influence to society and business performance evaluation categories. It
is requested to be paying attention on cost, productivity, delivery date, safety, and
environmental consideration, but not in MBNQA and EQA.
99

(2) MBNQA is recognized their requirement is “To promote quality awareness,
understand the requirement for quality excellence,and share information and
benefits about auccessful quality strategies”, that are highly recognized as nucleate
sence of value are equivalent to TQM doctorines by experts. The business
management decision sources such as quality data collection and analysis, and effort
of quality improvement are not concentrating for failure elimination but need to
establish creative activity related with influences of customer satisfaction rate. It is
necessary to establish the standard for performance achievement be numerically
measurable and evaluable.
(3) As for EQA, the rationale is that “Customer satisfation, people satisfaction and
impact on society – results, are achieved through leadership driving policy and
strategy, people management, resoouces, and processes – enablers – ultimately
leading to excellence in business results”. EQA criteria are similar to MBNQA
criteria (guidance ability, employee management, policy and strategy, resource,
process, and customer satisfaction rate) and three EQA criteria (people satisfaction
rate, influence on the society, and result of the management) have been introduced
as new elements. Especially, impact on society criteria focuses such as charity:
involvment in the community’s education, sports, and leisure: the effect of
emploument instability: energy conservation and ecology, are not addressed in other
two Award (MBNQA and Deming Prize). EQA criteria seem to extend to the central
concepts of TQM.
As a result, the comparison table of three award is shown as a Quality
Management Continuum through 1951 → 1987 → 1992, and these three awards are
characterized as: Deming Prize is "Quality Control", MBNQA is " Management Quality",
and EQA is " Enterprise Quality as the Citizens” while the establishment fiscal year
passed in. As for definition of “quality” concerns, Deming Prize is defined as
“Conformance to Specification”.
[Note: " Conformance to Specification" was mistaken, at the time of this paper
publication in 1994, the promotion of TQC was emphasized, and Total Quality was
already defined as broader meaning of under TQC implementation. For instance, NEC
Corporation were defined Quality for Quality Operation in 1972, by President of NEC,
Dr. Koji Kobayashi, as "7 Q“ such as "Q of Management", "Q of Product and Service", "Q
of Environment (from workshop to global environment) ", "Q of Rrelationship with Local
Society (including International Relationship)", "Q of Human Behavior", "Q of
Performance Achievement", and "Q of Corporate Image" was adovocated by president
(Nomura, Kobayashi, Taguchi, Tsukasa, Idemitsu [14]). Further TQC Systematization
Research Committee defined as totalized quality be classified as "Quality of
Management", "Quality of Product and Service", "Quality of Operation and Business",
"Quality of Environment (From workshop to global environment)", "Quality of Human
Being", "Quality of Information", "Quality of Performance", "Quality of Society (From
100

local society to international relationship)", and "Quality of Enterprise Constitution" in
1992. (Imai, Akao, Koura [10])].
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
101

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%
102
Effects: 10%
Future Plan:
10%

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
103

method. This system are structured as shown in the following;
Ⅰ Basic chapter
(A) Quality Management Theory:
(1) Definition of Quality Management (2) Total Quality (3) Viewpoint of
quality (4) Policy Management (5) Daily Management (6)
ManagementForm Theory (7) Human Resources Theory
(B) Quality Assurance Theory:
(1) Quality Theory (2) Assuaance Theory
(C) Management Theory:
(1) Management Basic Theory (2) Organization Theory (3) System
Theory
(D) Technique Theory:
(1) Type of Objective and Problem (2) Objective and Problem Solving
Method (3) Statistical Method (4) Non-Statistical Method
Ⅱ Execution Chapter
(A) Introduction and Promotion of TQC:
(1) Role and Policy of Management person (2) step of TQC Introduction,
Promotion, Development, and Advancement
(B) Organization and Management of TQC:
(1) Human Affairs, Organization, and Operation of Quality
Management (2) Education and training, and Spread of Quality
Management
(C) Quality Assurance and Management:
(1) Investigation stage (2) Project, Research, Development stage (3)
Production stage (4) Sales and Service stage
(D) QC Diagnosis:
(1) Effect Measurement of Quality Management (2) QM diagnosis of
(in-house and outside the company)
(E) The Expansion of TQC:
(1) Manufacturing Industry to Service Industry (2) Group-wide QC and
Quality Assurance by all xxx and (3) QC of foreign countries
advancement enterprise (4) Computer Aided QC and (5) QC of Software
Ⅲ Technology related to Management Engineering
(A) IE (Industrial Engineering)
(B) OR (Operations Research)
(C) Marketing
(D) VE (Value Engineering)
(E) Economy engineering
(F) Productive maintenance (PM, TPM: Total PM)
(G) CIM (Computer Integrated Manufacturing)
104

(H) CCM (Computer Communiation Network)
(I) System Engineering
(J) Creativity Engineering
(K) Behavior Science
(L) OD (Organizational Development)
(M) CI (Corporate Identity)
(N) SIS (Strategic Information System) etc.
This report is organized for the core structure on this research program and became
the one to give birth to the idea of the TQM Function Development.
(E) The foregoing research result is summarized as follows, and relates to originality
and utility of research done by this chapter.
(1) So far various papers for comparison program between MBNQA snd EQA,
MBNQA and Deming Prize or some others and compare of only two kinds were
observed so many, however multi-kinds of National Quality Awards be
synthetically compared and evaluated is only known as Vokurka etc. [16].
(2) It is not found any other papers that TQM Elements located as common standard
(called as anchor) by mutually comparing, synthesis and systematization with
TQM Element in each National Quality Award Criteria.
(3) A concept that Quality itself is interpreted to broader scope of definition is
justified through this research, which the author has been insisting.
(4) A studying under TQC Systematization Research Committee on Imai, Akao, and
Koura [10] constructed for foundation of this research to structure TQM Elements
into the totalizing and systematizing scheme.
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.
105

The EQA was further expanded the concept, and introduced the element such as
"Employee satisfaction rate, Influence on the society (corporate citizen, qualify of life,
environment and resource preservation, and social contribution), and Results of the
management".
And the JQA, in addition of MBNQA requirement, requested "Human Resources
Development, and Learning Environment" and "Management Responsibility".
Deming Prize was revised in 1999 and 2002 as “Stakeholder Relationships
(customer, employee, society, traders, stockholder)”, requirement for TQM Management
System (Daily Management, Policy Management), Business Element Management
System (Quality, Cost, Delivery date, and Safety), Management for TQM concept and
Value of TQM were contained with feature and evaluation points in criteria,
additionally.
Business Management is shifting to TQM concept as for focal points of business
excution by expanding and upgrading of TQM requirement, and indicating for direction
of worldwide Quality Standard. When summarizing the above, it could be concluded
Criteria itself is also progressing and advancing with time-transition.
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".
Table 4.3 Weight comparison table of Criteria item
Kind of Award Enabler system Result system
MBNQA 6 Categories:550 1 Category: 450
points
points
EQA 5 Categories: 50% 4 Category: 50%
JQA 7 Categories: 550 1 Category: 450
points
points
Deming Prize 16 Categories:
(100%)
(2) Title
The JQA and Deming Prize were independently established by private
organizations though MBNQA was instituted by law in the country, and EQA was
founded by EFQM received the support of EU. The Deming Prize was established by
commemoration of Dr. Deming friendship and contribution that was crowned his name
for appreciation. However, it is not so much powerful to inherit his name in local
destrict as of USA, SQA or LAA. However JQA concerns, it is observed some kinds of
Quality Award establishment program by prefecture base. MBNQA is so famous to
crown on his name of Secretary of Department of Commerce for his contribution, but
EQA and JQA are just follow by country or union of countries.
106

Table, 4.2 Comparison Table of Criteria of MBNQA, EQA, JQA, and Deming Prize
107

(C) Objectives
(1) Exept Deming Prize, others are placed the objective for Customer Satisfaction.
The objectives in USA and Europen countries are strongly stated for customer
satisfaction, business excellence and international competitiveness
strengthening. Two Japanese Awards do not emphasize for international
competitiveness so much, but stressed for Process appreciation concept by
Deming Prize and JQA. It is based on the concept “The better process (better
management process), the better result (better business excellent)” or "The good
result (business excellence) arises from a good process (good management
process)", which is more penetrated into Japanese mind. Customer Satisfaction is
strongly insisted on every award except Deming Prize.
(2) The Deming Prize has been paying for more customer satisfaction attainment by
industrial organization contribution.
The Deming Prize has never been nelected for customer satisfaction, but it is
clear adversely and consistently according to execution of whole criteria of Prize
and TQC (TQM) by asking "Customer Satisfaction", Akao [23].
Moreover, historical experiences were revealed the following statement.
(a) DR. Walter A. Shewhart (1931) wrote a sentence in the preface of "Economic
Control of Quality of Manufactured Product".
“Broadly speaking, the object of industry is to set up economic ways and means
of satisfying human wants and in so doing to reduce everything possible to
routines requiring a minimum amount of human effort. (Shewhart, 1931,
preface)”
(b) Also TQC, it has well-known story that “TQC" was introduced into his book by Dr.
A.V.Feigenbaum, and which term was imported and developed by Japanese
concept, and which story are already mentioned in Chapter 2, and describes TQC
in the book "Total Quality Control" as follows as "Definition of TQC".
“Total quality control is an effective system for integrating the
quality-development, quality-maintenance, and quality -improvement efforts of
the various groups in an organization so as to enable production and service at
the most economical levels which allow for full customer satisfaction. (A.V.
Feigenbaum (1961): Total Quality Control-Engineering and Management-, p.12)”
(c) The late Dr. Kaoru Ishikawa who was the quality leader in Japan mentioned
under popular expression as:
“Quality Control consists of developing, designing, producing, marketing, and
servicing products and services with optimum cost-effectiveness and usefulness,
which customers will purchase with satisfaction.”
(d) In addition, "Akao Award" was established to praise for Dr. Yoji Akao’s effort on
creation of QFD (Quality Function Deployment), by QFD Institute, USA in 1996,
and at the time of inaugurationceremony, his contribution to QFD was stated as
108

Dedicated Words on glass shield presented to Dr. Akao as follows;
“We dedicate the award in your honor to recognize those who have learned from
you the value of customer satisfaction.”
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 framework
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.
109

1
Leadership (120)
Leader
ship
(10%)
Organizational Profile:
Environment, Relationship, and Changes
2
Strategic
Planning (85)
3
Customer and
Market Focus (85)
Fig. 4.1 2003 Baldrige Criteria for Performance Excellence Framework:
A System Perspective
Fig. 4.2 2002 EFQM Excellence Model
110
5
Human Resoource
Focus (85)
6
Process
Management (85)
4
Mesurement, Analysis, and Knowledge Management (90)
ENABLER RESULTS
People (9%)
Policy &
Strategy (8%)
Partnership
& Resources (9%)
Process
(14%)
INNOVATION AND LEARNING
People
Results (9%)
Customer
Results (20%)
Society
Results (6%)
7
Business
Results (450)
Key
Performance
Results
(15%)

(Directionality
and Impellent)
1. Leadership and
Decision-making (120)
2. Social Responsibility
in Management. (50)
5.Collection,
Analysis of
Quality
Information,
and use of IT
(15 points)
Organization profile
3. Understanding and correspondence of customer and market (110)
(Business system) (Target and
Result)
4. Decision & Deployment of
Strategy (60)
5 Ability Improvement of
8. Result of
Activities
Individual & Organization (100)
(400)
6. Value Creation Process (100)
7. Information Management (60)
(Information Base)
Fig. 4.3 Framework of 2001 JQA Criteria
1. Company's Basic Principles and
its Dployment (20 points)
2. New Product
Development &
Reform of
Business
(20 points)
Quality Center System 50 points
Fig. 4.5 Distribution Points of Fundamental Items in 2002 Deming Prize Criteria
111
3. Management and
Improvement of
Commodity Quality and
Quality of Business
(20 points)
4.Maintenance of Management System(10 points)
6. Human
Ability
Development
(15 points)

Aim of TQM Framework of TQM
(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
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.
Fig. 4.4 View Points of examination in 2001 Deming Prize
112
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

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
114

700 points to “process” and 300points to “results”, although JQA is following MBNQA
concept. Deming Prize is not announced for weighting numbers, but judging from the
report of examiners summarization regarding number of secondary evaluation elements,
process oriented could be counted as 87% of process related and results ws 13% in 2001,
and process ws up to 100% in 2002. Based on this information, it is assumed that
Japanese two awards are still apreciating for “Process Focus Concept”.
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.
115

Table 4.4 Comparison of Expensecost related to Examination of MBNQA and Deming
Prizes,
116

(a) Expertise in business, education, or health care management, process, and
results
(b) Knowledge of quality practices and improvement strategies
(c) Length, breadth, and types of experience
(d) Written and verbal communication skills
(e) Leadership and interpersonal skills
(f) Education and training
(g) Achievements and recognition
(7) The Examiners Education is carried out every year.
“Becoming An Examiner (Training)” in “Seeking Examiners for 1998" and
"Seeking Applicants for the Board of Examiners" are specified for
(a) The Criteria and Scoring System
(b) The three stages of the review process including independent review, consensus
review, and site visits
(c) The Code of Ethical Standards
(8) The Criteria books are keeping to issue 124,000 in averages, every year. (The
homepage is established recently.)
(9) ASQ (American Society for Quality) is completely cooperating with Awarding
management and publication etc.
(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.
117

(3) The assessment process is that the Qualification Confirmation Format is
submitted to the Japan Quality Award Committee and after received recognition,
the Japan Management Quality Award Application is sent to the Administration.
After the three stages examination of Individual Examination and Conference
Examinations and On-site Examinations, the evaluation report is submitted to
the Committee and sent to the applicant organization after that.
(4) Various functional service and events are organized. In 1997, Recipient
Enterprises Research Meeting, Facilitator Communication Conference and
Examiner Training Course were held.
(5) The Japan Quality Award Reporting (JQA) Conference of the commendation
enterprise of the previous year recognition, for two days course is held on
February every year. The commemoration speech by recipient enterprise in the
morning, panel-discussion session and speeches of representatives of recipients
are presented, further continued on the Speech, and Disscussion Session by each
criteri item and finished after celebration party on the first day. Then the
previous speechs and discussion session are continued on. Moreover, the
networking (under free participation and informal assembly) inserted between
the speech and discussion session. It is generally speaking, similar to the Quest
for Excellenc of the MBNQA event.
(6) The Branch office of Japan Productivity Center for Socio-Economic Development
in USA is stationed and collected USA information and reported to Japanese
headquarter.
(7) MBNQA Investigation Team "USAs Management Quality Circumstances
Investigation Team" have been to USA since 1995. The members participated to
“The USA Management Quality Circumstance Investigation Team” 33 people and
“The Top Missions” were 12 people, and “The International Investigation Team”
were 15 members, that in total 60 delegation team members were dispatched on
February 1998. In additon, 27 members selected from recipient enterprise all
NEC were participated independently.
(8) JQA administrative status is Managing Members: 16 Companies, Regular
Member: 100 Companies and 104 organizations, and Associate Member: 63
companies and 64 organizations. (From JQAC Monthly Report Vol.10, 1997.8.)
(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,
118

etc.
(3) The Award Presentation Ceremony is organized at " Forum for Business Senior
Management on Quality Management" during “Quality Month” in November
every year, and is followed by "Best Practice for Quality Management”
presentation by Top Management of each recipient enterprise on next day.
(4) The application to Deming Prize is opened to overseas enterprise.
(5) There is no limitation in the number of application enterprises, and the number of
recipient enterprises if it is more than evaluation criteria level.
(6) It is possible to reevaluate for the level of improvement by TQM Diagnosis after 3
years later of awarding.
(7) The JQM application qualification can be obtain automatically in three years.
(8) It is established “Recognition of TQM Achievement” to recognize level of TQM
implementation status to challenge the Deming Prize in the future.
(9) It is a feature that the layer of the talent of TQM that includes the judge is thick
though thought that the promotion mother's body is small and weak compared
with other awards. However, it is thought the aspect that will be strengthened in
the future because the number of TQM guidance lecturers who can become judges
is thought to be few.
4.4 TQM Element in Quality Award Criteria Item and ISO 9001
4.4.1 Development of Comparative Research Method
In this chapter, it is sudy to develop for common standard (anchor) to be used for
feature comparisons of each award was researched. The basic design can be described in
the following steps. The Criterias are used MBNQA 2002, EQA 2002, JQA 2001, Deming
Prize 2001, and ISO 9000: 2000.
Step 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
119

Functional analysis of Deming Prize Criteria item → extracting Criteria
element → converting into TQM Element
Functional analysis of ISO 9000 Requirement item → extracting of Require
element → converting into TQM Element
These results are synthesized to establish ideal TQM Element systematization
for serving the following purposes.
(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
Matrix
Each Award TQM Element Deployment Table
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?
120

4.4.2 Step of Development of TQM Quality Award Element Comparison Matrix
It is a quite indispensable requirement to compare Quality Awrds each other by
objective and comparable standard or methodology. Accordingly this research are to
propose for preparation of TQM Elements Deployment Table and TQM Quality Award
Element Comparison Matrix which processes will be followd by Fig. 4.6:
Step 1: To extract every Criteria element of each Award and bring it together in the
deployment table.
Step 2: To further sort out TQM Element corresponding to third criteria elements or
lower level by each Quality Award.
Step 3: To prepare TQM Element Deployment Table (individual) by each Quality
Award.
Step 4: To prepare for sets of second level TQM Elements from Deployment Table in
step 3.
Step 5: To systematize second level TQM Elements and prepare for TQM Element
Deployment Table (synthesis) by KJ method grouping.
Step 6: To prepare TQM Quality Award Element Comparison Matrix (individual) by
arranging of TQM Element Deployment Table (synthesis) with each Quality
Award TQM Element Deployment Table.
Step 7: To prepare TQM Quality Award Element Comparison Matrix (synthesis) by
integrating of each TQM Quality Award Element Comparison Matrix
(individual).
Step 8: To restructure for the previous TQM Element Deployment Table (synthesis)
by Cluster Analysis using matrix (synthesis) of step 7 again.
Step 9: To prepare new TQM Quality Award Element Comparison Matrix (individual
and synthesis) by TQM Element Deployment Table (synthesis) that is
restructured again.
Hereafter this new TQM Quality Award Element Comparison Matrix is call as “TQM
Quality Award Element Comparison Matrix”.
It has never been performed such synthesis nor systematization of TQM Element
in each Quality Award under such detailed processing scheme in previous research. The
steps will be explained for more detailed explanation as follows. As for deployment table
with layers structure, it is explained like (the 3rd by parenthese, what kind of data
sammarization). Also as for deployment table concern, if it is preparing only by
individual Award, it is explained as (each Award), for summarized every Award table is
shown by (synthesis), so is the same indication on Matrix table structure too.
121

Step 2 to Step 3
Conversion of 4 th level Criteria
Element to TQM Element
(Number is TQM Element number)
Step 4: Collect 2 nd level elements
(128)
Step 5: KJ Method Grouping
3 rd level TQM Element
Deployment Table (180)
This Matrix size is composed by
180 × (7 + 9 + 8 + 17 + 5 = 46).
Step 1: Prepare Criteria Element Deployment Table of
Each Quality Award
MBNQA
(91)
4 th level Quality Award TQM Element Deployment Tables
Step 6-1: Prepare TQM Quality Award Elements Comparison Matrix (Individual)
Step 6-2: Put in Strength of Relation in each cell of each Matrix and calculate
Relation Degree.
Step 7: TQM Quality Award Element Comparison Matrix (Synthesis).
Each Award TQM Element is summed up to 1 st level from 4 th level.
Step 8: TQM Element Deployment Table is composed again by the Cluster Analysis using the Matrix of Step 7.
122
EQA
(380)
JQA
(142)
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)
D-P
(101)
ISO
9000
(264)

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.
Table 4.6 MBNQA Criteria Element Deployment Table (part)
1st 2nd 3rd 4th
1Leaders 1.1Leader 1.1.1 1.1.1.1 Values of organizations is focused.
hip ship of senior 1.1.1.2 Business Results of organizations is focused.
organizati managem 1.1.1.3 Value for stake-holders is created.
on ents' 1.1.1.4 Balance between indicators is focused.
leadership 1.1.1.5 Leaderships system is made.
indicators 1.1.1.6 Leadership indicator is settled on.
1.1.1.7 Leadership indicator is transmitted.
Table4.7 Number of Critera Elements extracted from each Award
Name 1 st 2 nd 3 rd 4 th 5th Remarks
MBNQA 7 19 29 494
EQA 9 32 180
JQA 8 20 65 142 706
Deming It is Prize a table, 4.6 17 each prize 31 or the extracted 56 numbers 126 of examination 407 elements. 6th 29(partially)
ISO 9001 5 23 81 264
Step 2: To further sort out TQM Element corresponding to third Criteria elements or
lower level by each Quality Award.
Next, TQM Element located at 3rd and 4th criteria elements are converted into the
TQM Element, that are counter part of Quality Award criteria elements (At this stage,
it is not structured as hierarchy form yet). And TQM Element Table is prepared
corresponding to Quality Award Criteria Element. In this case, it is to investigate for
any requirement for additional TQM Element insertion to conform with recent TQM
model view-points by Criteria Element referring to “Guidline of the Deming Prize”
123

(Deming Prize Committee [7]), “Management of Total ‘Quality’ the TQM to 21 century”
(TQM committee [9]), and “Toward Systematization of TQC” (Imai, Akao, Koura [10])
and finalized to suppliment some amoount of elements. For instance, "Policy
Management System is established" are supplemented besides of "System of leadership
is established" as TQM Element such as shown in Tables 4.8, corresponding to Table 4.6,
which are specified in 4th level criteria of MBNQA Criteria elements "1.1.1.5 System of
leaderships is established".
Table 4.8 MBNQA Criteria Element vs. TQM Element Table (part)
4th Criteria Eelements T Q M Element
1.1.1.1 Values of organizations is focussed. Values of organization is focussed.
1.1.1.2 Business results of organizations is focussed. Business Results of organization is focussed.
1.1.1.3 Value for stake-holders is created. Value for the stake-holder is created.
1.1.1.4 Balance between indicators is focussed. Balance of policy is focussed.
1.1.1.5 Leadership System is made. Leadership System is made.
Policy Management system is established.
1.1.1.6 Leadership indicator is settled on. Policy is settled on.
1.1.1.7 Leadership indicator is transmitted. Policy is transmitted.
Policy is known thoroughly
1.1.1.8 Leadership indicator is deployed. Policy is deployed.
Table 4.9 is explained how status of TQM Elements are changed from Quality
Award criteria element number. At this step, it is some amount of adjustment be
conducted to balance withless variation between 3rd and 4th levels number of items. At
this step, it is rather to identify and extract TQM Element as many as possible by using
criteria item of each Quality Award as a source of conception than.than to confirm what
kinds of elements while studying criteria elements for each Quality Award.
Table 4.9 Number of TQM Elements extracted from each Award (for 3rd or 4th)
Name Criteria Element TQM Element
3 rd 4 th 3 rd 4 th above 5 th
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
Thus “One statement has one meaning” principle are exercising for interpreting
every criteria under TQM concept and then transforming to TQM Element, Quality
Award TQM Element Deployment Table with minute TQM Elements is prepared
124

through adding words and phrases which extract a potential TQM element in each
Quality Award as much as possible and at the same time, are preventing from
“interpretation error” by adopting “One statement has one meaning” principle.
Step 3: To prepare for TQM Element Deployment Table (individual) by each Quality
Award.
TQM Element of each Quality Award is classifying, hierarchized by KJ Meathod
Grouping, deployment table is prepared, and this is called as TQM Elements
Deployment Table of each award. Then, 1st and 2nd levels TQM Elements were prepared
referring to the 1st and 2nd levels Criteria Element of each award, and these and
grouped labels (the 2nd or the 3rd) were adjusted as Table 4.10, and TQM Elements
Deployment Table of each award with the number of elements such as Tables 4.11 was
prepared.
Table 4.10 MBNQA TQM Elements Deployment Table (part)
1st 2nd 3rd 4th 5th
1 1.1Leaders 1.1.1
Leadership hip of Senior
is organizatio manageme
established. n is nts'
established. leadership
indicators
are
established
.
1.1.1.1 1.1.1.1.1 Values of organizations is focussed.
Corporate 1.1.1.1.2 Business results of organizations is focussed
principles 1.1.1.1.3 Value for stake-holders is created.
and 1.1.1.1.4 Balance of policies is focussed.
policies 1.1.1.1.5 Leadership system is made.
are 1.1.1.1.6 Policy Management system is established.
establishe 1.1.1.1.7 Policies are settled on.
d and 1.1.1.1.8 Policies are transmitted.
deployed.
1.1.1.1.9 Policies are known throughly.
1.1.1.1.10 Policies are deployed.
Table 4.11 Number of Elements in TQM Elements Deployment Table of each Award
Name 1 st 2 nd 3 rd 4 th 5 th
MBNQA 7 18 29 91 519
EQA 9 32 97 380
JQA 8 23 65 142 706
Deming Prize 17 32 56 101 457
ISO 9001 5 23 81 264
For instance, though the 1st, the 2nd and 3rd levels element with the MBNQA is
interpreted Criteria element as to TQM element, 4th element are increased by grouping
of them into 91 elements, and 5th elements become 519 by adding up by TQM elements
to 4th level 509 elements before grouping (Note: though 2nd level numbers 18 of elements
125

of MBNQA by Table 4.8 decrease elements number 19 of secondary Criteria item of
Table 4.7 on having deleted the Criteria item concerning the organization profile).
The TQM Element Deployment Table according to Quality Award by subdivided and
hierarchized Quality Award Element is no example in previous research, and is used for
comparison research after this.
Step 4: To preparate for sets of 2nd level TQM Elements from Deployment Table in step 3
The 1st level and 2nd level small TQM Element Deployment of each quality award
is taken out from each Quality Award TQM Element Deployment Table preparated at
previous step, and 2nd layer elements are made to gather. 128 elements were collected at
this step.
Step 5: To systematize 2nd level TQM Elements and prepare for TQM Element
Deployment Table (synthesis) by KJ Meathod Grouping.
The element of 128 collected at step 4 by KJ Meathod Grouping as Fig. 4.7 is
classified more, it deployed by 3rd level, and TQM Element Deployment Table (synthesis
and the 3rd) is prepared further. Then, the item of "Relationship Management"
including the element "The idea of Total ‘Quality’ was understood" and "The
relationship to the stake-holder is focused" was added from "Deming Prize: TQM
definition, explanation, and viewpoints of the examination" (Deming Prize Committee
[7]), and the element "The law and regulations were esteemed" was added from ISO
9001 [8]. And then, the contents of classified type TQC system (Imai, Akao, Koura [10])
and “TQM Model” of Yoshizawa [29] are added, moreover, the content of the secondary
element under preparing was subdivided in addition, and finally, it become 1st element:
9, 2nd element: 32 and 3rd: 180. The secondary element of the Deployment Table is
shown in the Table 4.12. This Deployment Table is restructured at step 8, but until step
7, thisis called as TQM Element Deplyment Table (synthesis).
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.
126

2.1 Leadership is
demonstrated.
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.
1 Management Total "Quality" shows
understanding and zeal.
1.1 The idea of Total "Quality" is understood.
1.2 D.1.1 Shows understands and zeal to
TQM
2 Leadership is established.
127
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.
Employee relationship is valued.
Business connection relationship is
valued.
Stockholder relationship is valued.
Note: M (MBNQA), E (EQA), J (JQA), D (Deming Prize), and the figure are TQM element No. of the
Criteria element. The TQM element is written in Post-it card, the group is enlarged further by grouping the
card which the meaning is near, and the label that represents the entire content is made.
Fig. 4.7 KJ Method Grouping of Second TQM Element Item of each Award (part)

Table 4.12 TQM Elements Deployment Table (synthesis) in Steps 5
1st 2nd
1 Understanding and zeal to Total "Quality" is 1.1 Idea of Total "Quality" is understood.
shown.
1.2 Understanding and zeal to TQM is shown
2.1 Leadership is demonstrated.
2.2Relationship to the stake-holder is focussed.
2 Leadership is established.
2.3 Organization power is strengthened.
2.4 In-house environmental making is done.
2.5 Law and regulations are esteemed.
3.1 Vision mission, values, policy, and the strategy are established.
3 Policy and plan are planned and deployed.
3.2 Vision, mission, values, policy, and strategy are deployed
4.1 Customer and market are understood.
4.2 Knowledge of customer and market is used.
4 Satisfaction of customer and market are
4.3 Response to customer and market is improved.
aimed at.
4.4 Customer and market satisfaction are clarified.
4.5 Customer-relationship is maintained and improved.
5.1 Human resoources is developed.
5 Management base is enhanced.
5.2 Information is used.
6.1 Management system is established.
6.2 Quality assurance system is established.
6 Management system process is enhanced. 6.3 Cross-Business-Element Management is established.
6.4 Group-wide Quality Management is established.
6.5 Fiscal resources and asset management are established.
7 Basic idea and technique of TQM are 7.1 Iidea and values of TQM are understood.
understood and used.
7.2 Scientific technique is understood and used.
8.1 Customer-relationship is improved.
8.2 People relationship is improved.
8.3 Social relationship is improved.
8 Achievement level of purpose and target of
8.4 Business connections relationship is improved.
the organization is measured and evaluated.
8.5 Stockholder relationship is improved.
8.6 Mission of organization is achieved.
8.7 Profit is continuously secured.
9 Concept, methodology, and technology of 9.1 Feature of TQM activities of company is put out.
TQM are investigated and developed. 9.2 Ahead of the time TQM is investigated and developed.
Next step is, To prepare for Matrix, the vertical (left side) cplumn are pccupoed by
TQM Element Deployment Table (synthesis and 3rd level) and Horizontal (top side)
column are dispointed by Each Award TQM Element Deployment Table (individual and
4th level) as shown Table 4.14, and each cell are used to identify for the both elements
rlationship. If a cell is not recognized any relationship, keep on blank, and the time of
caluculation, they are counted as “Zero”, then depending on their strength of
relationship, marked as 1 (Weak), 2 (Norml), and 3 (Strong). These strength of
relationship are called “Relation Degree”.
Then, the above correspondence matrix are prepared by 4th level elements for each
ward that these elements are nessary to consolidate up to 3rd level elements, and 3rd level correspondence Matrix table between TQM Element Deployment Table (synthesis
128

and 3rd) and each Quality Award TQM Element Deployment Table (individual and 3rd) is
prepared, and it is called TQM Quality Award Element Comparison Matrix (individual).
This Mtrix table is structured by Vertical (Left side, name of line) columnare occupied
by TQM Element Deployment Table (synthesis) as common anckor for each Award and
Holizontal (Top side, name of row) occupied by Quality Award TQM Element
Deployment Table (individual).
The strength of Relation Degree is inserted into each cells and the summarizing
caluculation for the relationsip index is explained in next formula.
Relationsip Index between the 3rd elements of TQM Elements Deployment Table
(synthesis) and the 3rd elemenst of each Award TQM Elements Deployment Table
(individual)
= ∑ {(Relation Degree with the 3rd level elements of TQM Elements Deployment
Table (synthesis) and the 4th level elements of each Award TQM Elements Deployment
Tables (individual))
✕ (Evaluation Distribution points of the 4th level elements of each Award TQM
Elements Deployment Tables (individual)) }
Note: ∑ (sigma) means, it is to calculate for whole element in cell of 4th level
element included in 3rd level element of each each Award TQM Elements Deployment
Table (individual).
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,
129

that this matrix is organized by 180 × 46 elements structures. Moreover, the
Relatinship Index has totaled to 1st level element from distribution evaluation point of
3rd level of each Quality Award TQM Element
Step 8: To restructure for the previous TQM Elements Deployment Table (synthesis) by
Cluster Analysis using matrix of step 7 again.
A structure of TQM Element Deployment Table (synthesis) as shown in Table 4.12
is examined by Cluster Analysis while using of JUSE – STA soft of K-means method by
treating with data of TQM Quality Award Element Comparason Matrix (synthesis)
prepared in step 7 as multivaluate data is used.
The purpose of the analysis is in improving objectivity of the TQM Element
Deployment Table, grouping by using Cluster Analysis which is one of Numerical
Classification method and in addition of the study to the result, because the fault of
analysis person subjectivity is entered as smells by all means in the study of step 7.
The cluster analysis does carrying out five time consecutive trial tests while Cluster
Numbers is selected from 8 to 12, and the appropriate one is thought the 11 clusters
finally. During the test, 10 crusters are rather large grouping range that it is afraid
to contain other heterogeneous elements, on the other hand, if 12 clusters, it is shown
too small for clustering that 11 was selected.
Next, it is to identify for 11 clusters to be included, and 2nd level elements is renewed
by grouping of 3rd levlel elements, thus TQM Elements are restructured. While
processing through, the first grouping element by KJ method was (1st levelwas9, 2nd level was 32 and 3rd level was 180) is now 1st level is 11, 2nd level is 48 though the
number of 3rd level elements did not change, which are shown by Table 4.13 (which is
shown till 2nd level only) comparing with Table 4.12, the followings are improved.
(1) "7. Information system is established" and "8. Human Resources is developed" were
extracted and confirmed their critiality.
(2) "10 Social relationship is established" and "11 TQM is promoted" related elements
that are dispersed in various first element was extracted to the element as each one
element.
(3) The content expression becomes almost similar to the technical term used in each
Quality Award terminology that it is systematically, internationally and
comprehensibly.
(4) It was possible to whole elemen are classified by two parts, one is "(1-10) Elements
that related to the content of the TQM implementation", and the other is " (11)
Element that related to TQM promotion". This shows the possibility that the
promotion is included in the model in TQM. Moreover, it can be considered that it
illustrated it by modulating the operations that should be advanced in the TQM
Execution Division (line usually) and the TQM Promotion Division in the enterprise
like parts when the second elements or less are seen.
130

Table 4.13 New TQM Elements Deployment Tables (synthesis)
1rst 2nd
1 Top's role and the mission are 1.1 Top's role and mission are recognized.
established.
1.2 Top's role and mission are carried out.
2.1 Business environment is forecast.
2.2 Management plan system is constructed.
2.3 Policy and strategy are established.
2 Management plan system is established.
2.4 Policy and strategy are declared.
2.5 Policy and the strategy are deployed.
2.6 Long-term profit is ensured.
3.1 Response method for customer is established.
3.2 Quality of response for customer is understood and evaluated.
3 Response system for customer is
3.3 Customer-relationship is constructed.
established.
3.4 Customer-relationship system is managed.
3.5 Customer-relationship is improved.
4.1 Feature, value, and importance of product and service are confirmed.
4.2 Customer and market are surveyed.
4 Product and service offer process are
4.3 Customer and sales information are used.
established.
4.4 Customer response system is established.
4.5 Customer satisfaction degree is improved.
5.1 Quality of business and environment is understood.
5.2 Business connections is focussed.
5 Business management system is 5.3 Business management is carried out.
established.
5.4 Fiscal resources and asset management are established.
5.5 Group-wide Quality Management process is established.
5.6 Corresponds to local society is done appropriately.
6.1 Quality, environmental regulations, and standard are esteemed.
6 Quality and environmental system are 6.2 Quality Assurance is carried out.
established.
6.3 Quantity, delivery date, and cost management are carried out.
6.4 Managing and improving of process are carried out.
7.1 Information system is constructed.
7 Information system is established.
7.2 Information system is used.
8.1 Basis of human resources development is established.
8 Human resources is developed. 8.2 Education and training environment are established.
8.3 Results of human resources development are improved.
9.1 Quality of management is focussed.
9.2 Management Review is carried out.
9 Mission and business results of
9.3 Mission of organization is achieved.
organization are improved.
9.4 Stockholder relationship is improved.
9.5 Business results are improved.
10.1 Quality of social relationship is understood.
10.2 Society related regulations is esteemed.
10 Social relationship is established.
10.3 Social responsibility is fulfiled.
10.4 Corporate images are improved.
11.1 Understanding and leadership of TQM are had.
11.2 Feature in TQM of own company is had.
11.3 TQM vision, policy, and strategy are settled on.
11 TQM is promoted.
11.4 TQM is promoted and operated.
11.5 Cross-Business Element Management is carried out.
11.6 Group-wide Quality Management is carried out.
131

Table 4.13 is named "TQM Elements Deployment Table (“Synthesis" or might be
omitted)" at the following.
Step 9: To prepare new TQM Quality Award Element Comparison Matrix (individual
and synthesis) by using TQM Elements Deployment Table (synthesis) that is
restrucerd again. (Example illustration: Table 4.14)
Table 4.14 TQM Quality Awad Element Comparison Matrix (sybthesis)
(Upper part in left)
TQM Element Deployment Tablex Malcolm Baldrige National Quality Award
1 2 3 4 5 6 7
Leadership Strategic Market Information Human Process Business
is plan is and is analyzed. resources management Rresult is
establishe establishe customer
is is measured
d. d. is
focussed. established. and
1st 2nd 3rd
focussed.
evaluated.
1.1 Top's role 1.1.1 Top's role and mission are understood. 312.00 0.00 0.00 0.00 0.00 0.00 0.00
1
and mission are 1.1.2 Top's responsibility and authority is
recognized. understood.
312.00 0.00 0.00 0.00 0.00 0.00 0.00
Top's role
and mission
are
established.
1.2 Top's role
and mission
are
encouraged.
1.2.1 Vision, mission and values of enterprises
are developed.
1.2.2 Premedical Achieveing System of mission
of organizations is consolidated.
1.2.3 High quality organization of sense of
existences is achieved.
222.00
240.00
96.00
60.00
27.00
27.00
0.00
0.00
0.00
0.00
35.70
21.42
0.00
0.00
0.00
0.00
120.00
0.00
0.00
360.00
0.00
2.1 Business
environment is
forecast.
2.1.1 Changes in enterpise environments is
forecasted and responced.
2.1.2 Science and technologies advance is
forecasted and responced.
48.00
48.00
168.00
168.00
0.00
0.00
0.00
0.00
0.00
25.00
0.00
49.08
120.00
120.00
2.2
Management
plan system
is
constructed.
2.2.1 System of leadership demonstrating is
established.
2.2.2 Management system is designed
systematicaly and managed.
2.2.3 Corporate cultures are developed.
2.2.4 Policy Managements are encouraged.
2.2.5 Company-wide goal achievement system
is established.
144.00
144.00
96.00
240.00
144.00
60.00
30.00
60.00
255.00
168.00
0.00
0.00
0.00
0.00
0.00
149.94
0.00
0.00
149.94
0.00
0.00
21.00
127.00
0.00
21.00
0.00
120.00
0.00
0.00
0.00
0.00
240.00
0.00
120.00
120.00
2
Management
plan system
is
established.
2.3 Policy and
strategy are
established.
2.4 Policy and
strategy are
declared.
2.3.1 Policy and strategy of enterprises are
developed.
2.3.2 Vision mission, value, policy, and strategy
are established.
2.3.3 Quality policy and strategy are established
2.4.1 Vision, mission, values of organizations is
declared.
2.4.2 Policy and strategy of organizations are
declared.
48.00
96.00
48.00
96.00
96.00
60.00
171.00
171.00
168.00
168.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
120.00
120.00
120.00
120.00
120.00
2.5.1 Policies and strategies are deployed. 96.00 168.00 0.00 0.00 0.00 0.00 120.00
2.5 Policy and 2.5.2 Policies and strategies are transmitted
strategy are and implemented.
96.00 168.00 0.00 0.00 0.00 0.00 120.00
deployed. 2.5.3 Policy management organization is
established and managed.
96.00 60.00 0.00 21.42 21.00 0.00 120.00
2.6 Long-term
profit is
ensured.
2.6.1 Reasonable profit in long-term aspect is
secured.
2.6.2 Constitution that obtains profits
continuously is made.
48.00
48.00
27.00
27.00
0.00
0.00
64.26
64.26
0.00
0.00
0.00
0.00
307.50
307.50
132

The result of TQM Elements Deployment Table (synthesis) restructered again by
using the data of TQM Quality Award Element Comparison Matrix was inserted into
TQM Quality Award Element Comparison Matrix made in step 6 and step 7, and the
array of the TQM element was rearranged. A part of the above-mentioned result is
shown in the Table 4.13. This TQM Quality Award Eelement Comparison Matrix is a
table of vertical table side of left 180 ✕ holizontal tableside on top 46. Various analyses
are possible in the future by the application of the multivariate analysis technique by
using this. The TQM Quality Award Element Comparison Matrix when the first TQM
Elements Deployment Table is consolidated in the item is shown as an appendix. The
first element of each Award can be read though the matrix is transposed for the
convenience of the display.
According to the above-mentioned step, each table in each step is made as follows.
(1) Criteria Element Deployment Table according to each Quality Award
(2) TQM Elements Deployment Table according to each Quality Award
(3) TQM Elements Deployment Table (synthesis)
(4) TQM Quality Award Element Comparison Matrix (individual)
(5) TQM Quality Award Element Comparison Matrix (synthesis)
The common standard (It was said the anchor) and quantitative data for the
comparison was prepared for scientific analysis while the past analysis research were
just mutual qualitative comparisons based on arrangement of mere criteria item and
evaluation point to different category. These steps can be applied more widely as a
methodology of the comparison research.
4.4.3 Comparison of Each Award by TQM Quality Award Element Comparison Matrix
(synthesis)
(A) Comparison by consolidating table of TQM Quality Award Element Comparison
Matrix (synthesis)
As shown in Table 4.1, small table that TQM Quality Award Element Comparison
Matrix summarizated among 1st level of TQM Element of vertical column of left line and
holizontal column of top row summarized each award unit is shown. The calculation of
consolidating only summarized up the Relationship Index of each Award in cell that
corresponded.
Which TQM Element understands whether is valued according to Quality Award if
Table 4.15 is looked vertically (line) according to the Award. Moreover, which Quality
Award understands whether is valued relatively if it is looled holizontally (row)
according to TQM Elemen vertically (line). (This is explained in etail later at (C)).
That is, even if Relation Index of each Award are holizontally compared and the
133

anking is done, rough of the feature and the difference of each Award can be judged.
For instance, ISO 9001 is next mark only "6 Qualities and environmental systems are
established" (14870), and lot of TQM elements are lower than the others. This is
evidence that ISO 9001 does not intend to cover the entire TQM as to be International
Standard on Quality System Standard.
Table 4.15 TQM Quality Award Element Comparison Matrix (Relation Degree consolidating Table)
Quality Award
MBNQA EQA JQA
Deming
Prize
ISO 9001
1 Top's role and mission are established. 1833 1859 3909 5142 3517
2 Management plan system is established. 6858 6041 11625 7690 5837
3 Response system for customer is established. 9993 15976 14518 5262 8922
4 Product and service offer process are established. 7307 13957 16561 6660 10723
5 Business management system is established. 6437 3207 5651 4650 2628
6 Quality and environmental system are established. 5561 8010 14873 5449 14870
7 Information system is established. 1705 2346 3466 2095 1123
8 Human resource is developed. 10306 11360 9348 11699 2517
9 Mission and business result of organization are improved. 12660 6695 8002 5031 2073
10 Social relationship is established. 8227 7408 10751 4020 3542
11 TQM is promoted. 1543 6256 1045 8464 777
(B) Comparison between TQM Elements of each Award from TQM Elements
Deployment Table (synthesis)
It became the first: 11 elements and the 2nd: 48 elements and the 3rd: 180
elements though each item of TQM Element Deployment Table (synthesis) is composed
by word being added TQM expression to common word of each Award at unification and
systematization as Step 4.4.2. When the content was seen, Element 1 to Element 10
that corresponded to "TQM execution element" that was the content of the TQM
execution and Element 11 that corresponded to "TQM promotion element" that was the
content of the TQM promotion was plainly divided. As a result, a common term of each
Award was used in the term, and it became an array of international TQM Element to
which the composition was similar in the order of the criteria item of each Award.
Moreover, "TQM promotion element" is low relation degree excluding EQA other than
the Deming Prize in view of the evaluation point though it is natural that "TQM
execution element" exists together in each Award. The TQM Quality Award Element
Comparison Matrix composed of here is expected that further comparisons of each
quality award become possible by using it as multivariate data to say naturally mutual
comparison by the numerical value of the relation degree.
(C) Clarification of feature and character of each Award by TQM Element mutual
comparison
(1) Features of Malcolm Baldrige National Quality Award.
When comparing each Award by holizontal observation of Relationship Index from
134

the data of summerlized in Table 4.15, "5 Business management system is established"
(6437), and "9 Mission and Result of organization are improved" (12660) are ranked at
the top position, and "8 Human Resources development" (10306) are 3rd position among
each Award (numer is taken in the cell of Table 4.15). Then detail analysis by the
Appendix Table (P 143) are further corresponding justified that the above mentiond two
TQM Elements 5 and 9 is supported by high score of 1st level TQM Element of MBNQA,
that is, "7 Business Result is measured and evaluated" of MBNQA (“5” to 3283 and “9”
to 9218) and "5 Human Resource is ocused" of MBNQA (“8” to 3319).
It is noteworthy to take up “Successor development program" in details of element
"5.1 Work System" of the subordinate position of the "5 Human Resource is focused".
Moreover, the result oriented idea of MBNQA clearly appears as it is giving 450 points
in "7 Business Resultis measured and evaluated" in 1000 points and “ 9 Mission result
of organization are improved" of TQM Element is proven to be top in the evaluation
point between each Award. On the other hand, "1 Leadership" of the MBNQA
corresponds to it though the low rank "1 Ttop’s role and mission is established " of TQM
Element (1833).
In the MBNQA, there are not vision, mission and value though there are
benchmark, cycle time, and stakeholder (customer, employee, stockholder, local society
or speciality person group) and a strategic target, etc. in the explained terms
(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.
135

There is neither "3 Customers and Market Focus" nor "4 Information and analysis"
that exists in the MBNQA, but “4 Measurement, Analysis, and Knowledge
Management” in MBNQA 2003 correspond to “4e Information and Kowledge are
managed” in EQA 1999, and “4.a External partnership are managed”, "4.b Finances are
managed", and "4.c Buildings, equipment and materials are managed" of "4
Partnerships and resources” in EQA are not emphasized in other Award. The first item
of the result system includes four items of "6 CustomerResults", "7 People Results", "8
Society Results", and "9 Key Performance Results", and moreover, the EQA gives 5.0
points of 10.0 point as a whole-inside, and is the highest in each Award though the
evaluation of the result is 1 item of "7 Business Results" (450 points) in the MBNQA. In
addition, it is given including the illustration that "a Perception Measures" and "b
Performance Indicators" are detailed in those each items. These indices are concrete,
and there are as many as 136 elements (about 36%) numeric indices in 327 elements of
the fourth level.
(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
136

Result of Activities" of the JQA corresponding to "7 Business Results" (450 points) in
MBNQA.
On the other hand, a new one for a Japanese enterprise like as Enterprise Ethics,
Management Vision, Corporate Governance, Shared Service, Crossing Organizational
Team, Value Proposition, Fair Process, Bbenchmarking, Cash Flow, BPR, EVA, and
ROA and ROE, etc. is taken up in "Glossarial explanation" in 2001 Criteria.
It was EQA and JQA that it was especially comparable on the term for ethics, mission,
vision, value, and culture, etc. among these.
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.
137

Comparing the both, it is shown that the idea of the vision, the mission, and the value
is not clear as a current state of Japan, though it is interpreted that the vision of the
JQA has the meaning that contains the ethics and the mission of the EQA and it has s a
point not clear. Moreover, the Value Proposition is interpreted in Japan “To offer
Customer Value desired” and it is not used in the meaning like the EQA. However, it
can be said that these points are evidences for the JQA to start approaching the EQA
while making the MBNQA a model.
(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
138

Deming Prize correspond to "6.1 Key process", "6.2 New business process and support
process", and "6.3 Cooperation with business partner" of "6 Value creation processes" of
the JQA.
In the Deming Prize, the TQM diagnosis of the Deming Prize Committee becomes a
Key issue though the self-assessment is encouraged and evaluation item is available in
the other three Awards. Moreover, there is especially no glossarial explanation, and the
definition of TQM is given as a text and an explanation.
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,
139

ut the coparison possibility can be improved through these elements (such as TQM
Element Deplyment Tabele in this research) be suitably standardized, when TQM
Quality Award Element Comparason Matrix is used as Multivariate Analysis data.
(2) The step used in this chapter is not only coparing the Quality Award treated here but
also it could be feasible enough for general methodology on the comparisons between
the various quality management and self-evaluation system, etc.
It is the feature for this method to deploy TQM Element in various Quality
Awards while applying a consept of the business function deployment by QFD. The
problem that executes the influence and the Sensitivity Analysis by the difference of
the method has been left because there are other methods of weight putting like the
Conversion Method in QFD (Akao [30]), too.
(3) The TQM Elements Deployment Table (synthesis) can be prepared and 1st and 2nd levels element are structured systematically by cluster analysis.
That is, classifying it into ten elements concerning the content of the TQM
Implementations and one element concerning the TQM Promotion became clear.
Moreover, ten elements concerning the content of the TQM Implementations are easy
to display under the order of arranging the PDCA structure, and be easy to be
understood with international and terminology definition.
(4) The difference and the feature of the criteria item of each quality award are
summarized collectively, the quality concept expanded while becoming MBNQA, EQA
and JQA from the Deming Prize, and the development of the concept as not only the
Customert Relationship but also Environmental Relationship, Social Relationship,
are able to be confirmed.
The problem in the future is wished whether to be the meaning as the management
system though it is observed the high correlation of JQA and ISO 9001 in Table 4.14
by view of the TQM Elements Deployment Table item.
(5) Following respects are important though qualitative each other coparison between
the feature and the character of each Quality Award were executed.
(a) It is necessary to identify for concept and systematic relations between creed,
ethics, mission, vision, values, and culture.
What has clarified it by this research is that the EQA specified "1a Leaders
develop the mission, vision and values and are role models of a culture of
Excellence" to the first essential of the leadership of top management. And, it is
shown that the ethics and the value are foundation that develops the corporate
culture, saying that "1.a 2 developming and role modeling ethics and values
which support the creation of the organization’s culture". It is conclued from
such an idea that values mean the value in the enterprise organization such as
employees as internal value or inhouse value if values of the customer and the
stockholder, etc. are assumed to be external value. It can be said that this will
suggest the change concerning the purpose and the principle of the
140

management in the idea.
(b) TQM in the future should emphasize the use of Cross-Business-Element
Management and GWQM (Group-wide Quality Management) (Ito [31])
according to without in the other three Award from the viewpoint of the TQM
promotion and execution.
There are Cross-Functional Management (Kurogane [32]), Strategic
Business Unit: SBU (Mochimoto [33]) and Project Management (Ishihara
[34]) according to as Cross-Organizational Mangement, and these
management and business system correspond to the Cross-Functional Team
etc., and the system corresponding to the supplier and partner relationship is
two as the above-mentioned in TQM
(c) The research is necessary for the idea of relationship emphasized in the Deming
Prize because there is neither concept of Relationship Management nor proof of
the theory in each Quality Awsrd though part exists by the other three Awards.
(d) It is thought to extract, to compose, to reference and to use a systematic model of
the management index and the control index from each Quality Award, because it
is thought useful for the enterprise to refer to the management index and the
control index in the management system at which the excellent Quality Award in
the world aims.
Not only the management index but also the setting of the control item of each
position is important, and Dr. Juran [35] described "If a control subject is
worthless, the whole control procedure built around that control subject is
likewise worthless" in "Choosing the Control Subject".
(e) As for the Coporate Social Responsibility (CSR), how as the content to take it up
is different though the score (weight) in each Award is practically the same. The
EQA is the most detailed and is concrete as the contribution to regional society.
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141

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142

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1964
143

Attached Table: TQM Quality Award Element Comparison Matrix
(transportation version)
144

Chapter 5 Comparison between Criterias of each Quality Award
This chapter is to identify TQM Quality Award Element Comparison Matrix
(synthesis) data developed in Chapter 4, and Criterias of each Quality Award are
quantitatively compared by using the Multivariate Analysis, and the feature is clarified.
The content of this chapter is based on Koura and Yoshizawa [1].
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
145

y 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
146

a whole, and the Accumulation Contribution Rates up to the 11th were 0.681. The one
with a small contribution rate to the variable remained in 10, and there was a factor
with a difficult interpretation in 12 though the number with 7, 8, 9, 10, 11, and 12 are
variously examined as the number of factors.
Table 5.1 First Level TQM Conversion Element of Each Award Criteria Item
Quality Award
Criteria Item
MB 1 Leadership is established.
MB 2 Strategic plan is established.
Malcolm Baldrige MB 3 Market and customeris is focussed.
National Quality MB 4 Information is analyzed.
Award MB 5 Human resources is focussed.
NB 6 Process management is established.
MB 7 Business result is measured and evaluated.
EQ 1 Leadership is established.
EQ 2 Policy and strategy are established.
EQ 3 People management is established.
European Quality
EQ 4 Partnership and resource control are established.
Award
EQ 5 Process is established.
EQ 6 Customer Results are improved.
EQ 7 People Results are imploved.
EQ 8 Society Results are imploved.
EQ 9 Key Performance Results are improved.
JQ 1 Leadership and decision making are established.
JQ 2 Social responsibility in management is accomplished.
JQ 3 Customer and market are understanded and responced.
Japan Quality Award
JQ 4 Strategy is settled on and deployed.
JQ 5 Ability of individual and organization are improved.
JQ 6 Value creation process is established.
JQ 7 Information management is established.
JQ 8 Results of activities are declared.
DF 1 Management policy is established and deployed.
DF 2 Product development and business are reformed.
DF 3 Quality of product and business is controlled and improved.
Foundation
DF 4 Management system such as QDCSE is maintained.
DF 5 Information analysis and IT are used.
DF 6 Human Ability is developed.
DS 1 Feature of TQM is created.
DS 2 Vision, strategy, and leadership are demonstrated.
Deming
Feature DS 3 Customer value is created.
Pize
(Speciality) DS 4 Performance of organization is improved greatly.
DS 5 Management base of organization is established.
DS 6 Others.
DT 1 Understanding and zeal to TQM are shown.
DT 2 Top has leadership, vision, strategy, policy, and discernment to environmental change.
Topmanage
DT 3 Organization power (core technology, speed, energies) is maintained and strengthened.
ment
DT 4 Human resources is improved.
DT 5 Social responsibility of organization is accomplished.
ISO 1 Basis of quality management system is established.
ISO 2 Management responsibility is clarified.
ISO 9001 ISO 3 Resource management is established.
ISO 4 Product realization process is established.
ISO 5 Basis of measurement, analysis, and improvement is established.
147

In the Principal Component Analysis of the Correlation Coefficient Matrix between
variables to which the Eigenvalue was resolved, Eigenvalues up to the 11th were 1 or
more, and the Accumulation Contribution Ratio was 0.756. Moreover, there was no big
difference as for the Factor Loading. Then, it was assumed that 11 factors whose
Eigenvalue is 1 or more were adopted, and the following analyses were advanced.
First of all, the square sum and the contribution rate of the factor loading of 11 factor
models when Varimax Rotation is done are shown Table 5.2 are shown. The square sum
of Factor Loading of each factor is all 1 or more. Moreover, note that the factor after it
rotates is not arranged in order of the size of the Contribution Ratio.
Table 5.2 Square Sum of Factor Loading and Contribution Ratio of each Factor after
Varimax Rotation
(Upper: Factor 1- Factor 6, lower: Factor 7 – Factor 11)
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
149

correlation with element related to the leadership besides, and it can be interpreted
as a Management Responsibility factor. Different respect of the leadership is
represented with Factor 2 and Factor 4.
･Factor 11: Process factor
The correlation is high with ISO5 (Basis of the measurement, analysis, and
improvement is established), ISO4 (Product realization process is established), and
there are correlations with MB6 (Process management is established), JQ6 (Value
creation process is established), DF3 (Quality of product and business is controlled
and improved), and it is named the Process factor.
The summary of the above-mentioned name of 11 factors was shown in Table 5.3.
Each factor name
Table 5.3 Summary of Each Factor Name
Requirement explanation
Crieria item No. of
each Award
1 Partner factor
Establishment and mutual trust of partnership
with customer
EQ2､EQ4､EQ9
Responsibility to society and stockholder. A
2 Social Responsibility factor
part of leadership
EQ8､JQ2
Q.C.D.S.E.. etc. Cross-Organizational DF2､DF4
3 Cross-Management factor Management (Cross-Business-Element
Management)
4 Leader Philosophy factor
Top philosophy, Zeal of TQM promotion.
relation to Leadership
DT1､DS1
5 Strategic Plan factor Plan, decision, and deployment of strategy MB2､JQ4
Customer market focus, understanding and MB3､EQ5､EQ6､
6 Customer Market factor response. Customer value creation process
establishment
JQ3､DS3
Organization baseof management is DS4､DS5
7 Revolutionary Innovation
factor
established, and effectiveness, reproducibility
and reformation of development of the
concept, methodology, and technology of TQM
of a head of age
8 Information Utilization Analysis of information, use of IT and MB4､JQ7､DF5
factor
information management establishment .
9 Human Resources
Development factor
Development, foster of human resources, the
ability improvement of individual and
organization, and people management
EQ3､JQ5､DF5
Clarification of management responsibility, ISO1､ISO2
10 Management Responsibility quality management system . It is respectone
factor
side with a different leadership with factor 2
and factor 4
Establishment of measurement, analysis, MB6､JQ6､DF3､
11 Process factor
product realization and value creation process. ISO4､ISO5
Process management. Product qualities and
quality of business is controlled and improved
150

The above-mentioned 11 factors can be observed as follows. First of all, though Factor
2 (Social Responsibility factor), Factor 4 (Leader Philosophy factor), and Factor 10
(Management Responsibility factor) are factors that relate to management person's
leadership, Factor 2 is a responsibility to the outside of the organization to the society
and the stockholder and it has the side where the profit as the result of the enterprise
etc. are focused, Factor 10 has responsibility that turns internally as management
person's role in the ISO quality management system, and Factor 4 has the side of the
philosophy and zeal (passion) for implementation to TQM of the management person
with whom responsibility is promoted especially by the Deming Prize. This is thought
that the mission of the EQA to Factor 2 and Factors 4, the vision and ethics to Factor 10,
and the value and culture are corresponding to Factor 4. Moreover, the distribution
evaluation point of the Deming Prize is the Topmanagement 100 points, the
Fundamental 100 points, the feature of TQM 5 points, and the Topmanagement's
occupying the weight of about 50% shows the importance. It can be said that these three
factors will show the importance of the leadership by each dividing and displaying into
three sides as being in the explanation of the above-mentioned.
Though Factor 6 (Customer Market factor), Factor 11 (Process factor), and Factor 3
(Cross-Management factor) relate to the process of the customer value creation and
product development, production, and offer, Factor 6 centers on understanding and
respondence to the customer and market, Factor 11 takes up a Daily Management
process of the customer value creation and the continual improvement, and Factor 3
divides the side where the revolution of the system including QCDS is focused.
Factor 5 (Strategic Plan factor) corresponds to the strategic plan, the policy and
strategy, and the decision and deloyment, and company's basic principles of each Award.
Factor 8 (Information Utilization factor) corresponds to the analysis of information, the
information management and analysis, and IT and Factor 9 (Human Resources
Development factor) corresponds to the human resources focus, the people management,
the people results and the ability improvement of individuals and organization and the
human capability development.
It is specific obsevation that factor 1 (Partner factor) corresponds only to the EQ4
Partnership of EQA, Factor 8 (Information Utilization factor) doesn't have
correspondence by in the EQA. On the other hand, the factor corresponding to the
business results of each Award oppositely corresponds to Factor 2 (Social Responsibility
factor) and Factor 6 (Customer Market factor) are the main, and factor 9 (Human
Resources Development factor), Factor 11 (Process factor), and Factor 7(Revolutionary
Innovation factor) are added to this.
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
151

Quality Award, as shown in Fig. 5.1, 5.2, 5.3, 5.4, and 5.5. In those figures, bold arrow
shows 0.6 or more of the Factor Loading in the absolute value and fine arrow shows that
2nd place below the decimal is rounded off and it has 0.4 or more (0.4 or less and
expression) of Factor Loading.
Though simply considering, it is the consideration of the correspondence of the 1st level element of the criteria item of each Award and each factor, and it is thought more
clear pictures if further continuing on detail analysis to 2nd or 3rd levels elements.
(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
MB1 Leadership is established.
MB2 Strategic plan is established.
MB3 Market & Customer is focused.
MB4 Information is analyzed.
MB5 Human Resources is focused.
MB6 Process Management is established.
MB7 Business result is measured & evaluated.
Fig. 5.1 Factor Structure of MBNQA
152
Social Responsibility
Management Responsibility
Leader Philosophy
Strategic Plan
Partner
Customer Market
Process
Cross-Management
Information Utilization
Human Resources Development
Revolutionary Innovation

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
EQ1 Leadership is established.
EQ2 Policy & strategy are established.
EQ3 People Management is established.
EQ4 Partnership & Resource control are established.
EQ5 Process is established.
EQ6 Customer Results are improved.
EQ7 People Results are improved.
EQ8 Society Results are improved.
EQ9 Key Performance Results are improved.
Fig. 5.2 Factor Structure of EQA
153
Social Rsponsibility
Management Responsibility
Leader Philosophy
Strategic Plan
Partner
Customer Market
Process
Cross-Management
Human Resources Development
Information Utilization
Revolutionary Innovation

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.
154

JQ1 Leadership & decision making are established.
JQ2 Social Responsibility in the management is accomplished.
JQ3 Customer and the market are understood & rresponded.
JQ4 Strategy is settled on and deployed.
JQ5 Ability of individual & organization is improved
JQ6 Value creation process is established.
JQ7 Information management is established.
JQ8 Result of Activities is declared.
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.
155
Social Responsibility
Management Responsibility
Reader Philosophy
Strategy Pplan
Partner
Customer Market
Process
Cross-Management
Information Utilization
Human Resources Development
Revolutionary innovation

Fundamental Feature (Speciality) Topmanagement
DF1 Management Policy is established & deployed.
DF2 Droduct Development & business are reformed.
The DF2 product development and
DF3 Quality of Product & business controlled & improved.
DF4 Management system such as QCDSE is maintained.
DF5 Information analysis & IT are used.
DF6 Human Ability is developed.
DS1 The feature of TQM is created.
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
DT1 Understanding & Zeal to TQM are shown.
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.
Fig. 5.4 Factor Structure of Deming Prize
156
Social Responsibility
Management Responsibility
Leader philosophy
Strategic Plan
Partner
Customer Market
Process
Cross-Management
Information Utilization
Human resources development
Revolutionary Innovation
Social responsibility
Management responsibility
Leader Philosophy
Strategic Plan
Partner
Human resources development

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
157

the Basis of quality management is established, and the management responsibility is
clarified, and then it can be said the “Quality System Structure”. Other factors are very
weak correlations except the Management of Resource corresponds to the Human
Resources Development.
ISO1 Basis of quality management
system
ISO2 management responsibility is
clarified.
ISO3 Management of the resource is
established.
ISO4 Product realization process is
established.
ISO5 measurement, analysis, and
improvement
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).
158
Social responsibility
Management responsibility
Leader philosophy
Strategic plan
Partner
Customer market
Process
Cross-management
Information utilization
Human resources development
Revolutionary innovation

Table 5.4 Factor Structure Table of each Award
Quality award
0.6 or more
Factor Loading
0.4 or more or less Less than 0.4 or less
Strategic Plan and Social Responsibility and Partner and Cross-
Customer Market Management
Management
MBNQA
Process and Information
Utilization
Human Resources
Development
Leader Philosophy Revolutionary Innovation
Social Responsibility and Management
Process and Cross-
EQA
Partner
Customer Market and
Responsibility and
Strategic Plan
Management
Information Utilization
Human Resources
and Revolutionary
Development
Social Responsibility and Management
Innovation
Partner and Cross-
Strategic Plan
Responsibility and Management
Customer Market and
Revolutionary Innovation
JQA Process
Information Utilization
and Human Resources
Development
Process and Cross- Management
Partner
Fundamental
Management
Information Utilization
and Human Resources
Responsibility and
Development
Deming
Prize
Feature
(Speciality)
Leader Philosophy and
Customer Market
Revolutionary Innovation
Social Responsibility and Management
Topmanagem Leader Philosophy Responsibility and
ent Human Resources
Development
Partner
Management
Human Resources Social Responsibility and
Responsibility and Development
Leader Philosophy
Strategic Plan and
ISO9001
Customer Market and
Cross-Management
Information Utilization
and Revolutionary
Customer Market and Management
Four Awards commonness Human Resources Responsibility
Development
Three Awards
commonness
Social Responsibility and
Process
Information Utilization
Leader Philosophy Partner and Cross-
Management
Revolutionary Innovation
Two Awards commonness Strategic Plan Strategic Plan
Partner and Cross- Social Responsibility Information Utilization
Only by one Awarde Management
Revolutionary Innovation
159

Table 5.5 Summary of Factor Structure of each Award
160

5.4.2 Common Factor and Individual factor
(A) Common factor
It is explained for factor stracture of each Quality Award in previous chapter, and it
is recognized a need to consider for “Common Factor Structure” as shown in Table 5.6,
which is to compare and evaluate each Quality Award TQM element (variable) by
contribution ratio and common level. The figure in the table indicates the Factor
Loading.
The strong correlation is seen in the Customer Market and the Human Resources
Development as for four Award common factor, the Management Responsibility follows
this, and the strong correlation is seen in the Social Responsibility, the Process, and the
Information Utilization as for three Award common factor, and the Leader Philosophy
follows this and the strong correlation with Strategic Plan as two Award common factor
and it is thought that this is four Award common factor because the correlation that
follows it have both of them, from Table 5.4 and Table 5.5.
Judging from the above observation, common factors of the factor structure of
Quality Award, 8 factors in Table 5.6 are considered to be the necessary as its contents.
Moreover, the attached table: The factor of Contribution Ratio > 0.07 and Square Sum >
3 are Social Responsibility, Customer Market, Process, and Human Resources
Development, variable was to 21 items by 4 factors from overall consideration of the
Factor Loading. And 10 variable items of Common Level > 0.8 and Residual Variance <
0.2 of correspond to 6 factors from Quality Award TQM Element (variable). The variable
that the Contribution Ratio and Common Level correspond to Factor Loading >0.5 was
shown in Table 5.6. Based on this analysis, it is understood that Contribution Ratio is
responding with good balance condition to each Quality Award and Common Level is
recognizesed no correspondence in MBNQA and that a lot of correspondence are
provided in Deming Prize. It is natural that the one with a high correlation level as for
Leader Philosophy factor (DS1=0.8, DT=0.8) and Information Utilization factor
(MB4=0.8, JQ7=0.7, DF5=0.8) is found if it sees only from the correspondence between
factor and variable.
(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”.
161

Table 5.6 Common factor and Factor Loading
162

If those contents is studied at the 2nd and 3rd level, the element to achieve the
improvement of the Partner performance index by the tie-up of the strategies and
policy like construction of an external partnership, sharing the culture and
knowledges, and collaborative activities of the supply chain improvement etc. is
the Criteria item, and these are quite similar concept of GWQM (Group-wide
Quality Management) in Japan.
(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
163

technology utilization,
To develop for quality system to aquire customer satisfaction in solution
business related.
“Others” concerns,
the excellent features activities in regional social contribution activity,
enterprise ethics, and ovservance of law and regulation are shown in the
3rd and 4th level items (Elements) are covered such requirment in detail.
5.5 Conclusion
The tendency of the quality focus in every country in the world is clear because
National Quality Award is being enacted in 63 countries now, and eventually Total
Quality Management (TQM) is being recognized as a basis of business management.
The following can be said to the research subjectsc set by this chapter opening from
the confirmation of the above-mentioned.
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.
164

(D) If the meaning of the Quality Award is considered from "Continuous Promotion of
TQM and Revolution Innovation Focus structure" of the Deming Prize, the concept
and philosophy of MBNQA are dispersed and established their Quality Award
respectively at each state and the city in USA, and a social system is being structured
that the organization apply to those Quality Award and those recipient organizations
apply MBNQA, and the recipient of MBNQA will rechallenge again in five years after.
The EQA is in the situation in which the quality award recipient organization of each
country in Europe applys to EQA. As for the Deming Prize, a phased system from the
Recognition of TQM Achievement as the former steps to the Deming Prize and to the
Japan Quality Medal as 5 years later was constructed.
" Expected Effects" by encouraging a continuous promotion and implementation are
explained as 10 benefits in "the Deming Prize Application Guide": 1 Stability and
improvement of quality, 2 Improvement of productivity / cost reduction, 3 Expansion
of sales, 4 Improvement of profit, 5 Certain excution of management plan / business
plan, 6 Realization of Top management dream, 7 Quality Control by every member
participation and improvement of company’s constitutions, 8 Encouragement of
control and improvement consciousness and promotion of standardization, 9
Concentration of company-wide energy from lower layers and improvement of morale,
10 Establishment of management systems and total management system.
Moreover, if it thought based on "Revolutionary Innovation" concern, each applicant
companies are requesting for "Shine thing: Something New" by tacit reason at the
time of evaluation stage by judges on every year from the 50 years long experiences of
the Deming Prize. And, Today's TQM technology is firmly established by close joint
work’s result of educational-industrial cooperations, and achieved “Japanese Quality
Revolution” as mentioned by Dr. J. M. Juran (Juran [6]). "Continuous promotion and
implementation of TQM" and "Revolutionary Innovation" are not the exaggerations to
say the life of the Deming Prize.
(E) The self-assessment in Quality Award is the accompanied system of three Quality
Awards except the Deming Prize. In Japan, Jidou [7] and his party have been
studying for such program proposal, and it is possible to use 11 factors of this research
as a module element of the TQM diagnosis.
165

Reference
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
166

Attached Table: Factor Loading of each Award
No. Award Variable identifier
167
2
Social
Responsibility
factor
10
Management
Rresponsibilit
y factor
4
Leader
Philosophy
factor
5
Strategic
Plan factor
1 MB1 Leadership is established. 0.566 0.352 -0.395 -0.262
2
3
M
B
MB2 Strategic plan is established.
MB3 Customer market is focused.
0.022
0.058
-0.013
0.032
0.153
-0.009
-0.826
-0.002
4
5
N
Q
A
MB4 Information is analyzed.
MB5 Human resources is focused.
0.054
-0.003
-0.016
-0.074
0.112
-0.062
-0.164
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 E EQ4 Partnership and resource control are established. -0.013 -0.039 0.016 -0.010
12
13
Q
A
EQ5 Process is established.
EQ6 Customer results are improved.
-0.195
0.086
0.004
-0.055
0.060
0.222
0.043
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
20
J
Q
JQ3 Customer and market are understood and responced.
JQ4 Strategy is settled on and deployed.
-0.068
0.011
0.099
0.169
0.101
0.035
0.056
-0.860
21 A 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
30
D
e
m
DF5 Information analysis and IT are used.
DF6 Human ability is developed.
-0.168
-0.074
-0.045
-0.122
-0.052
-0.053
0.125
0.038
31 i DS1 Feature of TQM is created. -0.025 0.055 -0.795 0.034
32
33
n
g
DS2 Vision, strategy, and leadership are demonstrated.
DS3 Customer value is created.
0.109
-0.259
0.274
-0.072
-0.242
0.087
-0.311
0.075
34 P DS4 Performance of organization is improved greatly. -0.162 0.047 -0.061 0.076
35
36
r
i
z
DS5 Management base of organization is established.
DS6 Others.
-0.230
0.163
-0.081
-0.187
-0.143
-0.029
0.065
0.129
37 e
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 I ISO2 Management responsibility is clarified. 0.167 0.724 -0.006 -0.245
44
45
S
O
ISO3 Resource management is established.
ISO4 Product realization process is established.
-0.140
-0.146
0.217
0.123
0.175
0.255
0.163
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

1
Partner
factor
6
Customer
Market factor
11
Process
factor
3
Cross-
Management
factor
8
Information
Utilization
factor
168
9
Human
Resources
Development
factor
7
Revolutionary
Innovation Common level
factor
Residual
Variance
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

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
169

Criteria Element into each crossing cells in “Time-Series Comparison
Matrix”.
➀ Strength decision for relationship will be done by the prodedure in Chapter 4
and be recommending to refer to Quality Award TQM Element Matrix in
2001.
➁ Relastion Degree (Strength of relation) of vertical column “TQM Element” is
compared further by cell for degree of enumeration insertion from holizontal
colomn of each year and the correspondence of the strength judgment of
Relation Degee is checked.
Step 4: To culculate for Relationsip Index of Time-Series Comparison Matrix by
Relationship Index = Relation Degree × Evaluation Distribution Point
Step 5: To prepare for The Time-Series Comparison Matrix with Relationship Index
summed up by only 1st level elements (from48×233 to 48×49) by every year, as
Simple Time-Series Comparison Matrix.
Step 6: To calculat Principal Factor Analysis on Simple Time-Series Comparison Matrix
Step 7: To analyze the Factor Structures
Step 8: To evaluate and to conclude for analysis result
The analysis of the factor structure by the above Simple Calculation Method should
consider following respects.
(1) It is not clear for any influence in factor analysis result by simple calculation
method.
(2) It refers to "Relation Degree" after the model of 2001 MBNQA use as standard.
(3) As for the number of Structural Factors concern, it is forecast under 11 factors. That
is, though 11 factors was decided in Chapter 5 provided Partner factor of EQA,
Cross-Management factor and Revolutionary Innovation factor of Deming Prize but
Factor Loading of these factors is small because MBNQA single model. However, it
is possible that corporate governance and ethics action to the MBNQA peculiar, etc.
appear.
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
170

(2) Strategic Planning: "Human Resources Plans" was specified in 1997, but deleted in
1999 and no more specified any change afterwards.
(3) Customer and Market Focus: It was not any Criteria item in 1988, and 1989, and
was added in 1997, and not revised any afterward.
(4) Information and Analysis: It was specified in detail Category by 7 items till 2nd level
in 1988, but after 1989, they were decreased a just several items. In 1997,
and"Selection and use of information and data" and "Selection and use of
compartive information and data" were specified but lost after 1999. Moreover, it
was simplified to "Measurement of organizational performance" and "Analysis of
organizational performance" in 1999, these were lumped together to
"Measurement and analysis of organizational performance" in 2001, in addition,
"Information management" was added. And, this became "Information and
knowledge management" in 2003.
(5) Human Resources Management: "System of personnel rating, motivation, and
recognition" and "Unique and innovative approach concerning human resource
use" were issued in 1988, then "Recognition to employee" and "Quality of working
environment" were revised in 1989. "Human resource development and
management" in 1997 became "Human resources focus" after 1999. "Work
Systems" has been used continuously after 1997 and then though there was
"Compensation and recognition" in the 3rd level item of "Work Systems" in 1997,
"Employee performance management system" and "Hiring and career
progression" were revised in "Work Systems" in 2003. Moreover, it became
"Employee learning and motivation" in 2003 and "Motivation and career
development" was added to the 3rd level item, though "Employee education and
training and development" in 1997 did not change by 2001.
(6) Though "Quality assurance of product and service" was specified in 1988 and 1989,
they were revised "Process management" in 1997 and continued, in
addition, ”Management of supplier and partonering process”, and then "Supplier
and partnering process" in 1999 joined and it continued and it became "Support
process" in 2001. These two items were integrated into "Value creation process"
and "Support process" in 2003.
(7) Though "Result of the quality assurance concerning product and service" and
"Customer satisfaction degree" are in 1988, and "Results of quality" and
"Customer satisfaction degree" are in 1989, these becomes "Business results" in
1997, and "Supplier and partner results" in its 2nd level item, though it continued
by 1999 but these were lost from 2001. And " Product and service Results " and
"Public responsibility and citizenship results" were added from 2001, and these 2
items became second items, and independent of " Product and service results"
and "Governance and social responsibility results" in 2003.
171

Table 6.1 MBNQA Criteria Item Ttime-Series Comparison Table
172

Table 6.1 MBNQA Criteria Item Time-Series Comparison Table (.continued)
173

It is summarized that the criteria item are staying as 7 without any changing, at
the beginning stage shich were mostly high-lighted on “Quality Assurance” and
“Customer Satisfaction” in 1988 and 1999, then were recognized for “Management
Quality” since 1997 and were continuing for this concept till 1999. Then it began to
change in 2001, and is recognized for fundamentalshifting in 1st level and 2nd leve items
in 2003.
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
174

on the plus side, “9.2 Management Review is implemented”, “9.5
Businesses Results is improved”, and on the minus side, “4.5
Customer Satisfaction Degree is improved”.
Factor 2: It is named "Product and service process factor", because the TQM
element existed that on the plus side, “3.3 Customer-relationships are
constructed”, “2.6 Long term profit is ensured”, and on the minus side,
“5.5 the GWQM process is established”, “6.1 Qualities, Environmental
regulations, and standards are focused”.
Factor 3: It was named "Relationship factor" because the TQM element exist that
on the plus side, “3.3 Customer-relationships is constructed”, and on
the minus side, the elements such as the customer, employee, and
stockholder are concentrated, as “6.1 Qualities and Environmental
regulations are focused”, “6.4 Processes Management and
Improvement are proceeded”, “8.1 Basis of Human Resources
Developments is established”, “9.4 Stockholders-relationship is
improved”
.
(4) Accumurateive Contributiion Ratio is 0.976, caluculated by Factor 1, Factor 2,
among of 3 factors that Factor model could be explained by these 2
fctors.
(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.
175

Table 6.3 Contribution Ratio of Eigenvalue of Principal Component of MBNQA
No. Eigenvalue Contibution Rate Cumulative Contribution Rate
1 12.915 0.264 0.264
2 7.753 0.158 0.422
3 6.320 0.129 0.551
4 5.457 0.111 0.662
5 4.433 0.090 0.753
6 3.861 0.079 0.831
7 1.690 0.034 0.866
8 1.114 0.023 0.889
9 0.811 0.017 0.905
10 0.719 0.015 0.920
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
176

Changes of MBNQA Criteria item is shown by expressing in figure such as Fig. 6.1
(1988), Fig. 6.2 (1989), Fig. 6.3 (1997), Fig. 6.4 (1999), Fig. 6.5 (2001), Fig. 6.6 (2003),
and Fig. 6.7 (2001: former). A Bold arrow shows the amount of 0.6 or more of the
Factor Loading in the absolute value and it is shown by a thin arrow has the Factor
Loading of 0.4 or more (0.4 or less and expression) that 2nd place below the decimal
is rounded off. The data sheet of "MBNQA Criteria item and Principal Component
Structure" was put on the attached table.
It is briefly explaining for relationship in 1st level element of MBNQA Criteria item
of each year and each component mentioned in the above.
(a) Criteria in 1988
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
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
177
Management system
Mission and result of
organization
Information system
Human resources
development
Product and service
process

|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

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
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
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
179
Management
system
Mission and result
of organization
Information system
Human resources
development
Product and service
process

esults
|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

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.
1 Leadership
2 Strategic development
3 Customer and market focus
4 Information and analysis
5 Human resources focus
6 Process management
7 Business results
Fig. 6.5 Component Structure of MBMQA 2001
181
Management
system
Mission and result of
organization
Information system
Human resources
development
Product and service
process

(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.
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
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
182
Management system
Mission and result of
organization
Information system
Human resources
development
Product and service
process

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.
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.
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).
183
Management system
Mission and result of
organization
Information system
Human resources
development
Product and service
process

2001
(former)
Table 6.4 Summary of MBNQA Criteria Item and Principal Component Structure
Year Criteria Item
1988
1989
1997
1999
2001
2003
184
1
Principal
Component
2
Principal
Component
3
Principal
Component
Management
Mission and
result of Information
system organizatio
n
system
4
Principal
Component
Human
resources
development
5
Principal
Component
Product
and 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

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,
185

2001 former), “Meassurement, analysis, and kowledge ,amagement” (2003),
“Business results” (1997,1999, 2001). It is thought as for "Information and analysis"
corresponding to each year, "Business results" is common. And the items concerning.
"Strategic planning", "Customer and market", "Human resources", and "Process"
relations are < 0.4 or less or correspondences 1.
(4) Principal Component 4 "Human resources development": There are
correspondence to |Factor Loading|≧0.6; “Human resources use” (1989), ≧0.4;
"Strategic planning" (1997, 1999, 2001, 2003), “Human resources use” (1988),
“Human resources development and management” (1997), “Human resources focus”
(1999,2001, 2003, 2001 former), "Information and analysis" (1997, 1999, 2001),
"Measurement, analysis, and knowledge management" (2003). It is thought as for
"Human resources" correspond to a related item in each year. "Leadership",
"Customer and market", "Process", and "Business results" are < 0.4 or less. The
reason for correspondence with the item related to "Information and analysis" is
that is related to the use of knowledge resources.
(5) Principal Component 5 "Product and service process": There are correspondence to
|Factor Loading|≧0.6; “Quality assurance of product and service” (1989), “Result of
quality” (1989), “Process management is established” (2001 former), ≧0.4; “Quality
of strategic plan” (1988), “Result of quality assurance of products and services”
(1988), “Customer satisfaction degree” (1989), “Customer and market focus” (1997,
1999, 2001, 2003), “Process management” (1997, 1999, 2001). The items except
“Customer and market focus” are < 0.4 or less in 2003, and “Process management is
established” (2003) is consolidated only in two items "Value creation process" and
"Support process", and it is thought the influence of the lost of direct correspondence
Criteria item of independent 3rd level item like "Management of product and service
process" (1997), " Product and service process" (1999, 2001).
When considering the above by collective evaluation, thouth the Criteria item
composition frame did not change, “Quality assurance” in 1988 and 1989 changed to
“Management quality” focus, the Criteria items in 1997-2001 had some common feature
of Criteria item content, and also “Organizational governance” “Ethical behavior” are
included into “Leadership”, and “Information and analysis” become to emphasize
knowledge management as “Measurement, analysis and knowledge management”, the
content of "Process management" is consolidated in "Value creation process" and
"Support process", and then the deepening as the emphasis of "Governance and Social
Responsibility Results" etc. has happened in the content of "Business results" in 2003.
That is, it is thought that Facter Structure is transferring from “Management
Quality” in Chapter 5 to “Management Quality Focus Citizenship”.
186

For example, tranceformation on “Social Responsibility” is shown as Table 6.5,
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 7.4.6 Public Responsibility and
Citizenship
Citizenship Results
2003 1.2 Social Responsibility 7.6 Governance and Social Responsibility
Results
2005 1.2 Governance and Social 7.6 Leadership and Social Responsibility
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.
187
----

Fiscal
Year
1988
1989
1997
1999
2001
2003
2001
(former)
Attached Table MBNQA Criteria Item and Principal Component Structure(1988/1989,1997-2003,2001 former)
Variable identifier
188
1
Principal
ingredient
Management
system
2
Principal
ingredient
Mission and
result of
organization
3
Principal
ingredient
Information
system
4
Principal
ingredient
5
Principal
ingredient
Human Product and
resoources service
development process
1 Leadership -0.648 -0.505 0.157 -0.276 0.072
2 Information and analysis 0.391 0.038 -0.501 0.212 -0.361
3 Quality of strategic plan -0.377 -0.324 -0.379 0.058 0.472
4 Use of human resources -0.294 0.587 0.163 0.593 -0.072
5 Quality assurance of producs and service 0.746 -0.138 0.065 0.319 0.304
6 Result of quality assurance of products and services 0.619 -0.156 0.107 0.278 0.428
7 Customer satisfaction degree 0.801 -0.195 0.223 0.231 -0.042
1 Leadership -0.557 -0.256 0.366 -0.372 -0.073
2 Information and analysis 0.076 0.003 -0.587 0.061 -0.346
3 Strategic quality plan development -0.472 -0.506 -0.348 0.218 0.239
4 Human resoources use -0.23 0.641 0.173 0.643 0.068
5 Quality assurance of product and service 0.459 0.028 -0.083 0.195 0.658
6 Result of quality 0.565 -0.047 0.161 0.192 0.605
7 Customer satisfaction degree 0.62 -0.158 0.21 0.149 -0.394
1 Leadership -0.684 -0.323 0.484 0.042 -0.029
2 Strategic plannig -0.598 -0.356 -0.239 0.516 0.195
3 Customer and market focus 0.696 -0.224 0.253 0.173 -0.427
4 Information and analysis 0.072 -0.505 -0.559 0.48 -0.117
5 Human resources development and management -0.317 0.685 0.243 0.55 -0.076
6 Process management 0.72 -0.027 0.124 0.122 0.531
7 Business results 0.071 -0.606 0.564 0.237 -0.018
1 Leadership -0.705 -0.467 0.42 -0.012 0.016
2 Strategic planning -0.593 -0.381 -0.27 0.469 0.212
3 Customer and market focus 0.669 -0.239 0.239 0.171 -0.427
4 Information and analysis 0.05 -0.491 -0.549 0.453 -0.106
5 Human resources focus -0.291 0.673 0.229 0.554 -0.114
6 Process management 0.743 -0.026 0.121 0.111 0.507
7 Business results 0.002 -0.55 0.592 0.287 -0.044
1 Leadership -0.658 -0.476 0.443 -0.01 0.033
2 Strategic planning -0.598 -0.377 -0.268 0.455 0.225
3 Customer and market focus 0.681 -0.225 0.26 0.16 -0.433
4 Information and analysis 0.154 -0.49 -0.537 0.475 -0.176
5 Human resources focus -0.322 0.688 0.236 0.532 -0.086
6 Process management 0.76 -0.022 0.126 0.086 0.426
7 Business results -0.007 -0.533 0.581 0.277 0
1 Leadership -0.616 -0.454 0.504 -0.079 -0.025
2 Strategic plannig -0.621 -0.329 -0.274 0.4 0.232
3 Customer and market focus 0.681 -0.225 0.26 0.16 -0.433
4 Measurement, analysis, and knowledge management 0.212 -0.498 -0.519 0.467 -0.279
5 Human resources focus -0.326 0.687 0.239 0.537 -0.088
6 Process management 0.841 0.03 0.041 -0.002 0.271
7 Business results 0.041 -0.537 0.633 0.191 0.006
1 Leadership is established. -0.606 0.036 0.369 -0.16 0.012
2 Strategic plan is established. -0.451 -0.202 -0.028 0.318 0.244
3 Customer and market is focused. 0.52 -0.287 0.221 0.208 -0.373
4 Information is analyzed. -0.038 -0.228 -0.457 0.208 -0.351
5 Human resources is focused. -0.333 0.614 0.209 0.575 -0.06
6 Process management is established. 0.387 0.079 0.186 0.069 0.646
7 Business results is measured and evaluated. 0.032 -0.248 0.621 0.428 -0.122

Chapter 7 Proposal for TQM Introduction, Promotion and Implementation
TQM introduction, promotion and implementation of in the enterprise have been
contributing for improvement of management quqlity level. This chapter will propose
for standardized TQM introduction, promotion and implementation processes based on
business management that are justifying with Quality Award 11 Structural Factors in
Chaper 5, based on studying for TQM deploying history in Japan, and TQM Activities
and developing status in AISIN Co. Group (Koura [1]).
The main scheme is to study and identify for corresponding factors with “Status of
improvement on management quality level by TQM introduction, promotion and
implementation”, and Award Criteria Elements specified in Quality Award (example:
Deming Prize), then to isolate their common processing factors that are structured by 11
factors.
7.1 Introduction and promotion of TQM in enterprise and development of TQM in Japan
The cooperation between Industry, Government, and Academy sectors has
proceeded in the challenging process of the Deming Prize recipient enterprise during
about 50 years after 1950 as described in Chapter 1, and, meanwhile, various kinds of
management techniques were developed. Fig. 7.1(upper Column) is shown its process.
When the footprint of the enterprise that is recognized by the Deming Prize and growed
up steadily after prize is traced back, "Process of introduction, promotion, development,
and advancement of TQM" like this figure (lower Colomn) is found some common
observation to the content of the how to advance never-ending continuous TQM acheme
program. Such an example of the enterprise is found in TQM promotion process of
AISIN Co., Ltd. in Table 7.1 and contribution to the quality improvement is found in
"2.4: Multi time recipient enterprise", in "2.5: Social influence process of the Deming
Prize”, and TQM promotion of a related enterprise by GWQM as “2.5.2: Social influence
of Group-wide Quality Management (GWQM)” in Chapter 2.
The following are observed based on investigation and research result (Koura [2], [3]).
(1) As for the TQM promotion, great advancement of management level is
recognized in advancing process from the Deming Prize to JQM.
(2) It gradually becomes an adaptation to environment and external focus and the
TQM promotion at the management strategy level is recognized though the
object of the improvement of compny constitution is an internal system
construction, and efficiency improvement in the first step of the TQM
promotion.
(3) It contributes to the Crisis-management being possible to correspond to an
unexpected situation promptly when the system of the TQM promotion has
established it.
(4) It is recognized that recent program are tending to adoptation of "Vision
189

management" for the future and "Quality Company" as a direction of the future.
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)
190

Fig. 7.1 Development of TQM in Japan and Introduction, Promotion and
Implementation of TQM in enterprise
191

Table 7.1 Progress of Management and TQM Activities in AISIN Co., Ltd.
192

During Step 0 to Step 2 stage, "Management Creed: Quality Supremacy" and
"Vision for 5 years" was established for "Harmonization in human-being and unifiation
of thinking" and a clear orienting was done.
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
193

Cost-up. The Construction of Constitution for which the profit can be secured even when
corresponding to prices up and decreasing production was necessary.
Therefore, the company policy in 1974/ 1975 was "Effective use of management
resources (person, material, and money) and Costs Down through effective daily work".
Management foundation that can correspond under the low growth was established
and financial constitution was converted from borrowed capital dependence type to
proprietorship capital type thus. Cross-Functional Audit Systems were introduced
under two pillar of V80 "Contribution to the Society" and "Qualitative Improvement" in
1976, and the establishment of Total Management System to aim at qualitative
enhancement was advanced.
Then, the Japan Quality Medal was presented on November 1977 by the following
mentioned jestification as TQC activities during next 5 years were remarkably
recognized their effects on comparing with Deming Prize recipient in 1972.
(1) Added value productivity are improved 2 times
(2) Remarkable reduction of market complaint cost
(3) Success on product planning to conform with customer demands as
high-lighting as sales point
(4) Leader of patent notification number in competive industry.
Middle term: 1978-1980, Aims at full conversion from Quantity oriented to Quality
Priority.
The improvement activities of company constitution for the V80 achievement
that reflected "Examination Commenting Document" was advanced after JQM had been
presented and was able to be established company constitution that V80 target was able
to be achieved by moving up one year. That is, it was an age that advanced the
establishment of “Identificatiion of present business fundamental management
elements”, “Establishment of overseas production and sales system”, and
“Establishment of quality assurance system to built quality into product at design
phase” was processing through. Moreover, it was age that TQC of All AISIN (Group
Wide QC) was stepped forward by one step with the Deming Prize recipent of AISIN
Warner Ltd. in 1977 and Deming Prize recipient of Takaoka Industrial Ltd. in 1980.
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
194

deployed, it is obtained effects as followed.
1982: PM excellent business shop prize recipient
1985: PM excellent business shop prize special prize recipient
As an integrated effect
(1) Quality and productivity have improved greatly.
(2) Z product was created by establishment of new technology related to energy etc.
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
195

improving steadily by promoting deployment that matched the vectors between
directors and divisions of all companies of “For commodity composition to an attractive
commodity development” and the prospect of achieving V92 was assured, and, in
addition, came to advance aiming at
V95 "It is a crowned excellent enterprise in the world"
as target.
It is shone to the honor of the JQM recipient again in 1991 in the above-mentioned
result.
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
196

domestically-based companies' cavitation phenomenon, and achievement of V95 was
rather hard to accomplish. Accordinly it was auto-industrial structure change was
forcasted, and company-wide company constitution innovation activities “SCOP 21”
was deployed under long-term view.
“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
197

It was decided to achieve the above 4 points.
And, "CHARGE" was hung as energy and an action disciplines of one employee one
to revolute the current state.
The place in which it means it as follows,
Creative : in creative
Harmonious : in cooperative
Active : in active
Responsible : with responsible
Global : in worldwide view.
Energetic : with zeal and vitality
And after 1994, the Deming Prize and the Japan Quality Medal recipient
enterprise of AISIN groupthe were as follows,
1995: Toyo Precision Machine Co. Ltd. was recognized Deming Prize.
1996: AISIN Sinei Co., Ltd. was recognized Deming Prize.
1997: AISIN Machin Industry Co., Ltd. was recognized Deming Prize.
1998: AISIN A･W Precision Co., Ltd. was recognized Deming Prize.
.
Step 9: 1995-, Enterprise-creating toward future that is trusted and respected in world
Japan New Paper, “Nikkei Indutrial News” issued on October 30, 2003, reported
column “Special survey report on Major Executive Management, by mutual voting”;
“by Respectful Enterprise” and “Respectful Executive Management” in first page.
Under the “Enterprise” voting, Toyota Motor was voted as the first place in company
devision. Moreover, Toyota Motor is enumerated as "Respectful Company" that the
United States enterprise thinks by Mr. James MacNar, Chairman of board, and CEO,
Minnesota Mining & Mfg. (3M) in USA. And it was evaluated as "Respectful
company" and"Tough company", etc by the each top such as General Motor (GM), Ford
Motor, Volkswagens (VW), BMWs, Porsche, and Renault also in "Hear it from top of
Europe and America major car makers" of column of page 18 issues on October 31,
2003.
Those contents were introduced in the first page on 7 series reports as "Toyota
Way: Incomplete Revelations".
In the article of the 1st. Mr. Cho, President of Toyota described, to aim at
"Respectful Company" as for the global enterprise, and stated "Respect for All People
(Existence respected from people and region in the world)" in the creed that carved for
"Global Vision" (announcement in the spring of 2002) as an appearance from 2020 to
2030.
And in the article of the 6th on November 11, it is reported "Strong unity between
affiliated enterprises and Toyota Motor supported by the weight of the history would ot
198

e 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
199

TQM (illustration)" as a common standard was prepared from Passage of TQM
activities of process of TQM development of Japan and AISIN Co., Ltd. and the
footprint of the Deming prize recipient enterprises and proposed reference of the
introduction and the promotion of TQM in the enterprise. This step may try the vision
management from the beginning rather than order by the one to show the level. It is
thought that it becomes reference of Self Assessment in the stage of the advancement
of its own TQM at the level such as Fig. 7.2.
The step of the introduction and the promotion was brought together as follows,
and it related it to 11 factors of Chapter 5 (Yoji Akao, Kozo Koura [5]).
Step 0: Motive and trigger (Leader philosophy)
Step 1: Preparation for TQM Introduction (Leader philosophy and management
responsibility)
Step 2: Construction of TQM Promotion System (Management responsibility and
human resources development)
Step 3: Establishment of Division Management System (Customer market and
process)
Step 4: Establishment of Total Management System (Customer and market,
cross-management, and information utilization)
Step 5: Enhancement and strengthening of Total Management System (Social
responsibility and partner)
Sstep 6: Establishment of Strategic TQM Systems (Strategic plan)
Step 7: Establishment of Vision Management System (Revolutionary innovation)
Step 8: Establishment of Global QM System (Revolutionary innovation)
Step 9: Enterprise-creating toward futur that is trusted and respected in the world
Note: It is necessary to introduce Revolutionary Innovation factor gradually
depending on degree of advancement after Step 4.
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
200

Fig. 7.2 Process of Introduction, Promotion, Development, and Advncement of TQM
(illustration)
201

Because TQM is company-wide activities, the president's decision is finally and
absolutely necessary. The presentation of the other companies case that succeeds by
TQM which invite its top managements, the senior management forum for the quality
management or the quality forums which are presenting for the case-study of other
companies or quality management case study with success, and the quality
management seminar for directors and the quality management seminar for
department manager and section chief course in this is necessary to participate in. It is
important to be understood by a familiar director at first and to form a top consensus.
Advancing the improvement activities to get over this recession enters easily most
because the quality control is disseminated in most manufacturing companies by the
spread of ISO etc. in some shape. In order to concentrate the vector in company, it is also
good to introduce the Policy Management first of all. Or, first introducing the quality
control aiming at the acquisition of the ISO 9000/14000 attestation, and shifting to
TQM in addition are also effective. Because the service relation industries are advanced
in the USA, the research of its case might be also effective.
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
202

The educations are organized by hierarchy (Operator, foreman, technical staff,
clerical staff, middle-management, ection chief, senior management, and the
director, etc.) by in-house or outside, for TQM concept, implementationnd each
responsibility to be shared in daily routine work. Depending on curriculum, some
are dispatched to the external seminar of the outside education facilities.
(4) Execution of TQM problem solving meeting at workshop
During problem solving in workshops, it is effective that the problem solving and
the subject achievement of workshop by the QC story (Problem Solving type and
Subject Achievement type) are advanced for the guidance of the TQM experts and
professional people in the case that it is recognized some sort of difficulties to solve
workshop problem, because it is the learning TQM steps from Step 2 to Step 5
though it is better to be advanced by own yourselves.
(5) Introduction of Daily Management
(6) Promotion of Standardization
(7) Introduction of QC Circle activities
(8) Shift to President TQM Diagnosis (President TQM Audit)
It is preferable to strengthen the basis of TQM System by the ISO 9000/ 14000
Certificatin etc. at this stage. QS 9000 (quality specification by big three) might be
also important requirement for exporting to USA in the enterprise related to auto
parts. Moreover, it is possible to apply the Recognition of TQM Achievement prior to
the Deming Prize application.
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
203

information management (IT; information technology) etc.
(6) Introduction of Division Manager TQM Diagnosis
It is a time to fully structure of TQM System, and also integration with ISO
9000/ 14000 would be necessary to consider.
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
204

Step 8: Establishment of Global QM System
(1) Establishment for Human and Environment friendly TQM
(2) Creation of Quality of Life oriented TQM
(3) Eatblishment TQM with global network
(4) Establishment of TQM with Glocalization (Globalization+Localization concept)
Step 9: “For the future”, “To build enterprise that is trusted and respected in the world”
It is said that the 21st century is called “the Quality Century”. After Second
World War, Japan had been struggling to wipe-out sloppy quality “Cheap and Bad”
notoriety that it had been necessary to be recognized as quality excellency of Japanese
product by world-widely, and then finally the quality have been beginning to be
accepted as “Good and Right Price” from the world on today, but again it is need to
struggle again how to sustain "Japan: Country founding on Quality " and stepping to
start on a journey to the future under the vision of "Enterprise trusted and respected in
the world". This is called "Quality Journy of Japanese Enterprise".
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.
205

Fig. 7.3 The Evolution of Strategic Quality Management
206

The Quality Award is a greatly more wide-ranging management system than ISO
9000 if it sees from the factor structure analysis clarified in Chapter 5. It can be said
that the target that should be achieved is the same and it is in the relation of the inside
and outside (both side) means as Iizuka [6] advocates it, because ISO 9000 is a quality
system demand under the buyer's standpoint, and TQM aims at the establishment of
the quality system for attainment of Customer Satisfaction: CS and Customer Delight:
CD under the producer, on the other hand. Moreover, ISO 14000 is thought to be a
requirement of management system eatablishment based on the environmental quality,
and there is a lot of point to supplement the former standard. Therefore, it is no wonder
to present various papers for studying on integration of the both standards not only in
Japan but also in main each country like the paper of the ASQ Annual Conference etc.
Fig. 7.3 is the one paper presented at the EOQ Annual Congress that is explaining for
ISO 9000 is assumed to be one - step of the TQM achievement and the level of TQM is
put at the EQA level (Gisella Connca [7]).
That is,
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.
207

7.4 Management at which TQM aims
When "Management at which TQM aims" at present is illustrated,
(1) Establishment of TQM systems with every members participation
(2) Implementation of concept of management and management by quality,
customer satisfaction, and environmental protection
(3) Establishment of management system (Daily Management, Policy
Management, and Cross-Business-Element Management)
(4) Establishment of Vision Management System
And it is became "Enterprise that is trusted and respected in the world".
Because these concept, system and how to advance it touched in the current each
chapter or next chapter, it is explained "Vision management management system" (Fig.
7.4) corresponding to the globalization age here (Vision Management in TQM Case
Study Committee [11]).
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.
208

Management for Policy
Management of Policy Management by Policy
Strategy gap analysis
Long-term strategy
Project
The future
Corporate principles
Business identity
Basic idea of vision
Corporate vision
Long-term numerical goal
Definition of business purpose, target, domain
Strategy assessment
Comprehensive evaluation of strategic analysis result
Long strategic plan setting
(Basic strategy and basic target)
Fig. 7.4 Vision Management System
209
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
: print mach (Ajustment)
Mission, Value
Setting of business attitude
Setting of code of conduct
Reexamine hypothesis
Change strategy
S Type action
A type action
Development of Vision Development of Strategy Annual Policy Management

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.
210

Table 7.2 Step of Vision Development
Step Execution matter Charge division Consideration matter
1 Study of the current developing process The top
Decision of the top
of corporate principles, business culture, Management Grasp of its own
corporate culture, and enterprise Planning
current state, intention,
Division
problem,
constitution
and
2 Study and the recognition of change in Directors Study
economy, market trend, etc. in the world
and enterpise environment (Economic
environment, social image and sense of
Meeting
values: Society, customer, business
relation, and employee, etc.)
3 Study of innovation of significance of
existence
enterprise
and business area of
4 New conception and assumption of
"State of existence" and "Condition it
want to be" in the future
211
Directors Study
Meeting
Directors Study
Meeting
5 Establishing of fundamental plan of Directors Study
vision
Meeting
① Significance of existence of Assistance
enterprise
Management
② Enterprise principle
planning
③ Corporate domain
④ Business objective
Division
6 Decision of corporate vision
Directors Study
Decision of each vision mission value Meeting
① Corporate principles
Assistance
② Business identity
Management
③ Business structural vision
Planning
④ Management function vision
⑤ Social contribution vision
⑥ Environmental contribution vision
⑦ Long-term numerical target
Division
7 Decision of plan of long-term strategy Management
Planning
Division
Each division
It brings it together in
the top down type.
Declaration of the top
Commitment of
infiltration
in-house
plan to
It is preferable
simultaneously to make
the mission and the
value with the vision.

When settling on by 2005 visions, AISIN Co., Ltd. holds the Directors Study
Meeting, and management vision "Global Enterprise for creating the future" was
brought together from “Corporate existense value" "Business Scope/ Boundary" and
"Business strategy and deployment" were sketched, and, in addition, "Future
world-wide economy and market trend" and "Shift of the sense of values in the society",
etc.
Then as for Vision, it is preferable to assign the mission for motivation to the
vision and unifying the corporate existense value in addition. And, the development of
the long-term numerical target based on this vision is advanced at the strategy
development stage. That is, after the purpose, the target, and the domain of each
business of the enterprise are defined, a strategic gap analysis and a strategic
assessment are done, and a basic strategy and a basic target are settled on in the long
strategic management plan after the comprehensive evaluation of the strategic analysis
result, the long strategic project and the business strategy are deployed.
The hierarchy of management strategy is devided as follows,
(a) Corporate strategy: Globalization, Group-wide, and structual conversion, etc.
(b) Business strategy: New product strategy, product diversification, and product
differentiation, etc.
(c) Cross-functional strategy: Sales strategy, development strategy, production
strategy, information warfare abbreviation, and personnel strategy, etc.
The role of the enterprise Ethics, Phirosophy (Business Philosophy), Vision, Mission
and Value is shown in Table 7.3 here.
Role of table, 7.3 Enterprise Ethics, Philosophy, Vision, Mission, and Vvalue
Ethics Pilosophy Vision Mission Value
Think about Think about Think about Think about Think about
society
business
principle
tomorrow today
existence
Conformity of Respect of Dream of Mission of Existence of
justice
purpose organization organization organization
Morality Management Criteria Attitude Value standard
standard standard
(action)
standard
Human race Enteprise Transcending Fatal problem Social
universal original age
relatiionship
Identifcation Keeping of Receiving Customer Respect
between right Consistency inspiration identification acquisition
and wrong
(in these days it is mentioned for enterprise ethics that it is shown as)
212

Reference document
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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
213

Chapter 8 Cross-Functional Management and Cross-Management Factor
In this chapter, it is to clarify the feature and the effect of Cross-Organizational
Management activities (Cross-Functional Management activities or Cross-Business
Elemental Management) of Japan by Cross-Management Factor that is the original
structure factor of Deming Prize clarified in Chapter 5 based on Koura [1], that is used
for such as “DF 2 Product development and the business are reformed” and “DF 4 QCDS
management system”.
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.
214

8.2.2 Necessity of Cross-Functional Management
Japan of 1960's entered the high-growth of Japanese economy, it became a
motorization age in the Auto industry, and the new car development competition
started.
Mr. Eiji Toyoda who was the vice president at that time talked as follows though
Toyota Motor introduced TQC in 1961.
『The first real full-fledged passenger car ”Crown” in Japan was put in the
market at the beginning of 1955 and recognized and extreme popularity was
accepted in the market and Toyota had expanded rapidly. But it was revealed
various problems at that time, it is said what it happenned. The improvement of
the quality has not advanced with balances to the improvement of efficiency
though the number of employees is twice, and production increases seven times.
The quality competition between enterprises of same industry has become
violent at the same time.
Then,
First, it was identified that top management was needed to issue own
commitment on Quality Objectives, and to desseminate throuout every
employees.
Second, it is necessary to organize the system being attempted for functional
cooperation between divisions (It came to be called, "Cooperation
between divisions" after) 』(Aoki [5]).
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
215

Cross-Functional Management being combined with Division Management according to
the by such an idea.
Though Toyota Motor researched “Functional Forman” by F.W. Taylor (Taylor [8]) in
USA, and "Technological function", "Commercial function", "Financial function",
"Maintenance function", "Accounting function", and "Controlling function" of 6 kinds of
business functions by H. Fayol (Furukawa [9]) in France etc. about function, and finally
based on "Practice of Management" of P. F. Drucker (Drucker [10]), his “Federal
Decentralization” and “Functional Decentralization” concept were adopted as “Line and
Staff” organizing structure, which were recognizing as Auto Industry were rather than
hard to organize Division System for only one product fabrication situation.(Mizuno
[11]). Then, the developed system was the one "The business allotment and the
objectives of each function are assigned to various line activities based on the function
division".
Toyota Motor assumed 13 functions in April 1962, 21 functions in May 1963 (Aoki
[5]), 6 functions in May 1974, and 10 functions in June 1989, (An General Planning is
included)(Suzuki [12]) repeating the trial and error for 30 years at the following.
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
216

esponsible 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.
Affiliates
Organization
Sales
(office and service)
Production
(include inspection)
Geneal Planning
Purchase
Product
Project
Product
Design
Production
Preparation
Human Resources & Administrative Management, etc.
(Process)
Project
QA
Cost Mgt.
Design &
Trial
Experiment
General Planning
Production
Preparation
217
Product
Project
Product
Design
Production
Preparation
Purchase
Production
(include
inspection)
Sales
(shop,
service)
Mass
Production
Sales
Customer
(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
Assurance
Quality
Cost Magt/
Function
Mgt.
Administrative
Resources Mgt.
Human

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.
General
Planning
Quality
Cost
Human
Resources,
Administrative
Commodity
Project
Production
Procurement
Sales
Overseas
Project
Housing
Industry
Product
Planning
Technology
Project,
Product
Project
Product
Design
Design, Trial
Experiment
Production
Preparation
Production
Planning,
Production
Engineering
218
Purchase Manufacturing Sales
Purchasing
Management,
Purchase
Division Management
Head Office,
Motomachi
Plant
: Large relation : Relation : Little relation
Overseas
Operation,
Business
Fig. 8.2 Cross-Functional Management Organization in Toyota (1989) (Suzuki [12])
Cross-Functional Management

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
219

cross-functionaly with TQM by board of directors.
Board of
Directors
President
Construction
Department
(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.
220
Cost
Management
Department
TQM Promotion Committee
Sales
Department
Quality
Assurance
Department
TQM Promotion
Room
Fig. 8.3 Simple Organization: 1985 Deming Prize SME Prize Recipient
(Uchino Construction Ccompany)
Sales
Department

Board of Directors
Managing
Committee
President
Committee
Branch-office
General manager
TQM Promotion
Xx Headquarters
Hazama-gumi
industry):
(construction
1986 Deming Prize Prize recipient
Pattern: Shimizu Construction,
Kajima Corporation, Fuji Electric
Co., Ltd. Matsumoto factory
comm..
TQM promotion central committee
Cross-Functional Management
Xx Branch TQM Promotion Committee
Cross-Functional Management
Committee
Quality Assurance
Quality Assurance
Sales Mgt. Comm.
Committee
Fig. 8.4 (a) Ordinary organization
In addition, Komatsu has the Function Center Liason Meeting and working team (Fig.
8.4 (b)).
For instance, the Quality Assurance Function Committee is composed with directors,
and the discussion theme is submitted after it discusses it enough beforehand in the
Function Center Leason Meeting. The Function Center Liason Meeting is composed
with Function Center (secretariat) and Working Team. (Working Team is thought
Cross-Functional Team: CFT today.)
221
Sales Management
Profit Mgt. Comm.
Committee
Comm.
Profit Management
Subcontruct Mgt,
Development Comm.
Committee
Trchnological
Standardization
Standardization Com.
System Com.
Suggestion
Com.
Suggestion System

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.
Board of
Managing
Directors
Department
Research Laboratory
Department
Sales and Service
President
Vice President
division
Manufacturing
Function Committee
Development and
TQM promotion committee
Quality Assurance
Cross-Functional Committee
(C) Highly Developed Organization
This organization form is established in Toyota Motor, and applied to a Toyota
222
Function Committee
222
Instruction
and report
Warking Team (CFT)*
Department
Amount Management
Management
Function Committee
Profit management
Fig. 8.4 (b) Ordinary Organization
Committee
Business Function
Industrial Machin
Cordination
& Advice
Instruction
Komatsu (industrial machine)
1981 Japanese Quality Medal
recipient
Pattern: Japan Steel Works
*CFT: Cross-Functional Team
propose
Function Center
Liason Assembly
Problem

(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).
223

Fig.8.5 (a) Highly Developed Organization
224

Fig. 8.5 (b) Highly Developed Organization
225

8.3.2 Role and Duty of Cross-Functional Management Committee
The main duty of the Cross-Functional Managment Committee is improvement,
management, establishment of Cross-Functional Management System like Quality,
Cost/ Profit, and Quantity/ Delivery Date, etc., and the problem of accompanying this
also is took up and promoted the improvement.
(1) Improvement and management of Cross-Functional Management System
(2) Discussion on basic policy and organization by Cross-Functions
(3) Plan and promotion of long term and annual plan of Cross-Functional
Management
(4) Promotion of solution of important problem on Cross-Functional Management
(5) Discussion and coordination of cooperative issue with another function
(6) Company-wide horizontal deployment of result on Cross-Functional Management
(7) Plan and execution of Cross-Functional diagnosis
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
226

Cross-Functional Management Committee is excuting chiefly company-wide policy,
coordination, and diagnosis.
Especially, the Cross-Functional Management Working Team is attached
importance recently, and its activity is expected a center role of the Cross-Functional
Management promotion. Because this solves a cross-functional specific problem in a
kind of a project team and QC Team, it is organized with manager and staff of a
related each division. It is called CFT (Cross-Functional Team) in general today.
8.3.5 Secretariats
The TQC promotion committee secretariat usually takes charge of the general
secretariat, and the superintendence division of the function (It is called the
cross-functional division) takes charge of the secretariat like accounting and financial
divisions correspond to secretary of cost and profit management.
In Toyota Motor, the entire secretariat is General Planning Office in Fig. 8.1, and Fig.
8. 2, and is taking charge of the most important business to which this office takes
charge of extraction of the problem function and establishment of new
cross-functional committee.
8.4 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.
227

(1) All mutual agreement is obtained “All company formation is arranged as
system-design by thinking only pure function without prejudicing to current
organization structure”.
(2) The method of evaluating the purpose and the result of each function is
established. It obtains consensus about various activities necessary for target
achievement.
(3) Various activities necessary for existing organizational constitution for target
achievement are allocated. The organization change is done when is necessary.
(4) A top decision making mechanism is renewed to the functional one as much as
possible.
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
228

(Control
Purpose)
Project
(Management
Objectives)
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]).
Qualiy
Objectives
Design
Qualiy of
Plannig
Preparation
Quality of
Design
Production
Quality
Standard
Manufacturing
Fig. 8.6 Clarification of Processes (Control Object)
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 Assurance Work of Person in Division Main
(Process) Item Assurance charge For Relation Remarks
Assurance Assurance Reguration
229
Quality of
Manufacturing
Inspection
Acceptance Level
Inspection
Quality of
Shipping
Sales
Quality of
certified
Level
Quality
of Sales
Customer
Satisfaction
Service
Quality of
Marketing

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".
230

Organization Function Quality Assurance Activities Quality Information Regulation related
Board of Managing
Directors.
New Product
Committee.
Research and
Development
Deapartment.
Industrialization
Committee.
Purchase.
Examination and
Inspection.
Manufacturing.
Quality Assurance.
Sales.
Branch and Office.
Engineering
Service.
Board of managing
Directors.
Decision of Policy.
Collection of
Information.
Decision of Project.
Decision of Research
Theme.
Research and
Development.
Industrialization.
Materials.
Purchase.
Acceptance
Inspection.
Manufacturing.
Process Control.
Productive
Maintenance.
Process Capability
Study.
Intermediate
Inspection.
Delivery Inspection.
Warehouse.
Quality Public
Relation.
Receive Order.
Shipping.
After Service.
Complaint
Treatment.
Product Liability
Measures.
Market Research.
TQM Diagnosis.
Society
Consumer
Quality Planning
Quality Design
Quality Trial
Process Design
Quality
Manufacturing
Quality
Inspection
Quality
Sales
Quality
Service
Consumer
Society
Fig. 8.7 Quality Assurance System Chart (illustration)
231
Qualty Survey
Basic Research Information
TQM Diagnosis
Quality Planning
Information
Quality Design
Information
Manufacturing
Information
Sales and
Service
Information
Market
Information
Market Research
Regulation.
New Product
Development
Regulation.
Research and
Development
Regulation.
Quality Assurance
Regulation.
Purchase
Mangement
Regulation.
Standard and
Specification
Regulation.
Control Chart
Regulation.
Inspection
Regulation.
Factory
Experiment
Regulation.
Sales and Service
Regulation.
Complaint
Handling
Regulation.
Product Liability
Regulation.
TQM Diagnosis
Regulation.

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
232

organization is called “Vertical Management”, and the management by holizontal
organization excuted in cooperation between each division is called "Holizontal
Management" and call "Cross-Departmental Management" or "Cross-Qrganizational
Management" generically here. It divides into three according to the Cross-Functional
Management (Cross-Business Element Management is the development form), SBU
management (SBU: Strategic Business Unit) and Project Management of Table 8.3
(Mochimoto [16], Kogure [19]) in that.
Table 8.3 Conparison of Horizontal Management Organization [16[, [19]
Type Name Explantion Regularity
Task Force
Organization
Matrix
Organization
Project Team
Task Force
QC Team
Matrix
Organization
Product
Manager
Cross-Functional
Management
SBU
Management
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.
Organization that individual in division organization
like R&D department play as a project member of
horizontal, oblique not only vertical affiliate.
Organization that attempt all plan and ajustment of
necessary to growth and profitability of product from
development, production and afterservece of product.
Holizontal organization, to achieve functional
improvement of management system for
management efficiency improvement.
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.
233
Organization
QC Team is
set up regular
sometime.
Nonstationary
Organization
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

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
234

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
Cross-Functional
Managment
Product
Management
235
Executive
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.

(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".
236

(6) In the Cross-Functional Management activity, mutual overlap cooperation (It is
called “Reaching Out”) between divisions to the problem of causing from the fault
of wall between divisions is necessary. (explain after in Para. 8.7.7)
(7) The cross-functional president diagnosis, the committee diagnosis or the check
together of Management Item is executed.
(8) Establish the information system where Cross-Functional Management
information can be collected from each line department as part of the Daily
Management.
8.7.5 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
237

is clarified though the business jobs according to the division is provided by the
Job Description Regulations etc.
(5) The method of the diagnosis and check on the Cross-Functional Management like
the evaluation of the business quality level etc. that Cross-Functional
Management is executed like regulations and standard, and whether the system
acts well is checked etc. has not been established.
"Standardization of Mechanism" is necessary in order to solve these problems,
and therefore, the main relational regulation columns is regulated in the
Cross-Functional Management Activities Table, and the column where the main
relational regulations corresponding to the Cross-Functional Management activity are
specified is installed in the Cross-Functional Management System Chart.
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
Mr. A Mr. B
- When it is good
Mr. A Mr. B
Overlap
Fig. 8.8 Reaching Out
238

(4) The management by “A” type action (Adaptive Action) in "Management of Policy"
of the Strategic Policy Management System is corresponded for environment.
AISIN Co., Ltd. in the preceding chapter assumes vision "Global business that
creates the future" getting over the Doll Shock, Oil Shock, appreciation of the yen,
and collapse of the economic bubble because it has "Vision Management System"
that goes a step beyond the Strategic Policy Management.
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.
239

After 1960's, most of the Deming Prize recipient enterprise introduces
Cross-Functional management and all 100% excute it at each age excluding 95% of
the later half of 1970's.
Age
1950's 1960's 1970's
1980's
1990's
First half Later half First half Later half First half Later half First half Later half Only in 1991
Total
No. of recipient 18 16 6 9 9 21 25 31 4* 139
No. of execution 0 0 4 9 9 20 25 31 4* 102
% of execution 0% % 100% 100% 100% 95% 100% 100% 100%
% of QCD
function
0% 0% 100% 71% 87% 77% 71% 57% 60%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
0% 0%
First
half
Later
half
100%
First
half
% of QCD function
71%
Later
half
87%
First
half
77%
Later
half
Fig. 8.9 Cross-Functional Management execution condition in Deming Prize Recipient
(Recipient Enterprises 102 in total 139: 1960-1990)
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.
71%
240
First
half
57% 60%
Later
half
Only
in
1991
1950's 1960's 1970's 1980's 1990's
% of QCD
function

(B) Classification of Cross-Function
Cross-Ffunction are classified into main function and auxiliary function, which
summarized as shown in Tables 8.5, by categories with excution rate % from 105
companies (1960-1990).
Table 8.5 Execution Rate of each Function in Deming Prize Recipient (1960 - 1990)
Division Function Name of similar function
Number of Execution
enterprise rate
Quality
assurance
Quality control and quality improvement 102 97.1
Cost
management
Profit management, cost reduction,
expense control
Production quantity management, delivery
75 71.4
Main
function
Quantity
management
Human
date management, production
management, work term management,
construction synthesis management*, work
office management
59 56.2
resources
management
Human resources development, morale
New product control, precedency
11 10.5
New product
development
development, technological development,
research and development management,
product management
32 30.5
Retail
management
Order receiving activity management,
business activity management
27 25.7
Support
function
Purchase Subcontract management, supplier
control management, cooperation trader promotion
Complaint prevention management, safety
Safety control
and health management
17
15
16.2
14.3
Environmental
protection
Antipollution policy and measures 8 7.6
Equipment
control
Equipment QA, TPM, facility management,
equipment development, equipment
maintenance
6 5.7
Information
management
Clerical management, information system 3 2.8
Number of Deming Prize recipient enterprises
105 ｰ
*The construction synthesis management was the overall care of works of quality assurance
(Q), cost management (C), term of works management (D), and safety control (S) in the
construction industry, and it used first in The Shimizu Construction (1983) and
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
241

Management (10.5)
Auxiliary function: New Product Development (30.5), Sales Management (25.7),
Purchase Control (16.2), Safety and Healthcare Management (14.3) ､
Environmental Protection (7.6), Equipment Control (5.7), and Information
Management (2.8)
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.
242

Table 8.6 Transition Table of each Functional Division by age
243

Table 8.7 Problems before Introduction of Cross-Functional Managment
244

Table 8.8 Problems before Introduction of Cross-Functional Managment
245

Table 8.9 Main Problem before Introduction of Cross-Functional Management (1960-1990), 102 companies
Division Step
Problem
Common Cooperation between divisions is weak. 30
General
All company quality assurance system corresponding to the market
and the customer needs is incomplete.
17
Project
Grasp of demanded quality, collection of market quality information is
insufficient .
25
Design/ trial Outflow of problem of design and experimental stage to post-process 16
Production Outflow of problem of production preparation stage to post-process 20
Quality
There are a lot of defective in processes. 22
assurance
Manufacturing
Defective unprevention and recorrance prevention activity that holds
factor system is insufficient.
20
Quality assurance is an inspection oriented principle. 18
Built-in quality in process is weak. 16
There are a lot of complaints and a quality troubles. 26
Sales service There are a lot of emergency measures, and claim management's
correspondence is slow.
16
Management system
Cost/ profit
management Improvement activity
Cost project is insufficient.
Scientific all company profits and cost improvement activities are
insufficient.
14
14
Amount/ Production plan
delivery date process organization
Lloss by the process complication increases. 11
management Stock Amount of stock increases. 11
Project power and
technology
Advanced technology shortage corresponding to new field 17
New product Product strategy and
development information gathering
Search, collection, and report of product planning information like
market, customer, and technology, etc. are insufficient.
15
Development period
and prior study
Outflow of problem of project and development stage to post-process
by insufficiencyof prior measures
15
Retail Use of information
management
Business posture
Collection, analysis, and use of market and customer information are
insufficient.
Mid/long-term business strategy is lacked.
13
11
Safety/
healthcare
management
Safety healthcare management activity and system are insufficient.
There are a lot of industrial injuries.
6
4
Remarks
The figure of each column is a problem number. Because the cooperation between divisions
appeared at each division, they are put in "Common".
(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.
246

Table 8.12 Main Effects after Introduction of Cross-Functional Management (1960-1990) 102 companies
Division Step
Effect
Common Cooperation between divisions was strengthened. 53
Idea and consideration of market in, quality first and quality assurance 30
Quality assurance system was maintained. 25
General Mutual trust with customer has become strong. 15
Improvement of product quality and strengthening ofquality leadership 15
Design making
Standardization concerning quality assurance has advanced. 15
Quality for trial Trouble numbe decrease in post-process by design factor 18
assurance purposes
Purchase and
subcontract
Decrease of delivery inspection failure rate (defective rate) 22
Manufacturing
Decrease of defective in process and defective loss
Maintenance of process control system
37
15
Sales service
Decrease of complaint and customer trouble
Improvement of customer satisfaction degree
45
15
Profit/cost
Management
consideration
Improvement of management and improvement consideration of profit
and cost
16
management Improvement
activity
Profit and cost improvement activity are persisted and have been
activated.
14
Amount and Sales and
delivery amount of Stock amount decrease and running out of stock rate decrease 18
date stock
management Productivity Improvement of productivity 17
New product
development
Achievement
Expansion of new product and improvement of new product sales
Increase in new product development number
37
25
Retail
management
Achievement
Business
posture
Increase in sales, number of products, and number of customers
It came to be able to do sales activity of data/process oriented.
24
9
Management
Safety healthcare accident none 4
for safety
Strengthening of safety and healthcare management system 3
Remarks
The figure of each column is an effect number. Because the cooperation between divisions
appeared at each division, they are put in "Commonness".
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.
247

Table 8.10 Effects after Introduction of Cross-Functional Management
248

Table 8.11 Effects after Introduction of Cross-Functional Management
249

(4) It becomes easy for the Bottom up proposal from the hierarchy below managers to
go out.
(5) The director seems to be executives and it comes to cooperate and mutually
support by company-wide broad and flexible view not division profit
representative
8.9 Consideration
In this chapter, the frame of consideration from the investigation and research of
the introduction and promotion and excution situation of Cross-Functional
Management of the Deming Prize recipient was described. It is necessary to become
seem natural in the every employee’s consideration and activity in daily routine work to
achieve customer satisfaction truly. The Cross-Functional Management problem always
exists by the change of the social environment and the advancement of the technology,
and it is necessary to continue the Cross-Functional Management activity.
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.
250

For instance, the relation among ISO 9000/ 14000, Responsible Care, and TQM
activity is integrated by using QFD etc., and the management system with a high
potential perfection was developed (Shikuya, Ito, Tanaka, Kato, Koura [28], Koura
[29], [30], Yoshizawa, Koura [31]).
(3) It is necessary that the Cross-Functional Management concept is considered by not
only management but every employees within own mind and should excute
naturally in the daily work activity under “Do common things in a common way”.
Such a state is called "Learned Skill, Acquired State".
(4) The Cross-Functional Management contributes to the improvement of compny
constitution and the management efficiency improvement of the enterprise.
About this respect, "Administrative Cross-Function Innovation" is proposed that
aimed at "To structure for nimble, mobility overflows brilliantly, flexible and tough
constitution in enterprise" (Ono [32]).
I want to wait the research in the future for consideration faced to the 21st century
from 1990's.
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.
251

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252

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254

Chapter 9 Conclusion and Proposal of new Quality Award
In this academic dissertation, it is to identify that the specific features, and role
Quality Award on TQM of introduction, promotion and excution in Japanese Industries
and to present summury in briefing form. It is to put a conclusion to my thesis, by
proposal for the stand of future Quality Award and installation of an International
Quality Award with Mr. Masao Nemoto (Nemoto, Koura [1]).
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
255

Table 9.1 Summary of Comarison Analysis of Quality Awards
256

(B) Governance and Ethics
(1) Governnance
(a) System of management and controls for stewardship
(b) Owners, directors, CEO
(c) Ensure: accountability, transparency, fair tretment
(d) Trust and effectiveness
(2) Organizational Profile
(a) Governance system, reporting relationship
(3) Category 1 Leadership
(a) Key aspects of governance: management and fiscal accountability, audit
independence, fair treatment
(b) Review performance of senior leaders
(c) Ensure legal and ethical behavior
(d) Processes and measures
(4) Category 2 Strategic Planning
(a) Address social and ethical risks
(5) Category 5 Human Resources Focus
(a) Ethics training
(6) Category 7 Business Results
(a) Governance and social responsibility results: fiscal accountability, ethical
behavior and trust, compliance, support of key communities
(b) To which criteria are you most attentive in your business decision-making?:
① Pragmatic (business consequences) 17%
② Altruistic (impact on other/relationships) 14%
③ Idealistic (values and principles) 60%
④ Individualistic (impact on me) 8%
Ethics Resouce Center, January 2003
(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
257

(a) Processes that benefit customers and business
(b) Involve majority of employees
(c) Generate products, services, and business results
(2) Organizationl Profile
(a) Roleof suppliers and partners
(3) Category 2 Strategic Plannig
(a) Process for sustaining changes
(4) Category 6 Process Management (Business)
(a) Two Items: Value Creation Processes and Support Processes
(b) Parallel Structure
(c) Think about Value Creation
(d) Processes Benefit from Tools for Improvement:
Lean, six sigma, and ISO 9000
(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
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Society
Cultural
Aim of EQ prize Belief System
Ethics
Fig. 9.1 Logic of EQA and Ethics Peter Docwara, 2001

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
262
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
Appropriate measure
Level of achievment
Method for uproading score
Know customer’s delight
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

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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ecipient 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.
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