Introduction
Quality of the produced goods or provided services is a primary concern for both, consumers and manufacturers. Quality is a complex notion that comprises the quality of manufacturing processes, service organizations, competitive advantages of products, etc. (Evans & Lindsay, 2014). Various business excellence models help to assess the performance of companies and encourage their further development. Deming Prize and Malcom Baldrige National Quality Award (MBNQA) are among those projects that stimulate performance excellence.
Deming Prize vs MBNQA
Deming Prize is among the most significant awards on Total Quality Management (“Deming Prize,” n.d.). Established in 1951 by the Japanese Union of Scientists and Engineers, it has been positively influencing the Japanese economy since then and became an international award. MBNQA is the highest award in the United States given to the most recognized companies for performance excellence (“Improve performance and get world-class results,” 2017).
Deming Prize is awarded in three categories such as a person, the Deming Application Prizes, and the Quality Control Award for the factory. The Deming Application prizes are awarded both to private and public organizations that comprise “small enterprises, divisions of large corporations, and overseas companies” (“Deming Prize,” n.d., para. 6). In its turn, MBNQA is awarded in six categories such as “manufacturing, service, small business, education, health care, and nonprofit” (“Improve performance and get world-class results,” 2017, para. 6). Both awards have similar categories, but the division of MBNQA is more specific and related to the field of activity.
The similarity of the Deming Prize and MBNQA is in the fact that they both emphasize quality. The difference is that MBNQA considers quality to be customer-driven while Deming Prize treats quality as defined by manufacturers. Thus, MBNQA concentrates on quality and customer satisfaction compared to statistical quality control, which is a primary concern of the Deming Prize. In other words, it can be stated that MBNQA applies an approach to quality of management while the Deming Prize is more interested in the management of quality. For MBNQA, information management is significant, while the Deming Prize is not heavily concerned with this issue.
MBNQA is more oriented towards the result rather than the process. The Deming Prize, on the contrary, is focused on the process. To apply for MBNQA, a company should submit two packages of documents, an Eligibility Certification and an Award Application (“Improve performance and get world-class results,” 2017). Applicants for the Denning Prize should provide an application form and a set of submittal documents that include documents that “explain the applicant organization’s outline, the applicant’s organizational chart (including the number of employees), other supplemental materials for an explanation, functional roles and responsibilities of the applicant organization,” etc. (The Deming Prize Committee Union, 2015, para. 7). On the whole, the packages of documents for both awards are similar.
However, the evaluation criteria for the Deming Prize and MBNQA are different. The Deming Prize provides points for such evaluation items as management policies and their use, new product development, human resources development, etc. (The Deming Prize Committee Union, 2015). MBNQA assesses leadership, strategy, customers, knowledge management, workforce, operations, and results of the applicants (“Baldrige criteria commentary,” 2017).
Finally, MBNQA can be awarded to American companies only, while any company from all over the world can receive the Deming Prize in case it meets the criteria. Moreover, MBNQA can be won by two companies in each category while the Deming Prize does not have such limits and can be won by every company following the standard.
Business Excellence Model for UAE-Based Organizations
The United Arad Emirates has a rapidly developing economy that can be further stimulated through business excellence models. According to Vision 2021 (n.d.), the UAE is becoming “the economic, touristic and commercial capital for more than two billion people by transitioning to a knowledge-based economy, promoting innovation and research and development, strengthening the regulatory framework for key sectors, and encouraging high value-adding sectors” (para. 1).
Consequently, the business excellence model used in the Deming Prize can be more suitable for this country. Since this award already has international experience, it is more suitable for the abroad implementation. Malcom Baldrige National Quality Award can be not so efficient in the conditions of the UAE due to its focus on the US companies and their specific features.
Moreover, the Deming Prize has a positive impact in many aspects such as stabilization and improvement of quality, improvement of productivity resulting in cost reduction, the increase of sales and, as a result, increased profits, and efficient implementation of business plans. On the whole, the introduction of the Deming model can be useful for the economy of the UAE. However, some alterations of the model can be necessary to refer to the national peculiarities and economic environment.
References
Baldrige criteria commentary. (2017). Web.
Deming Prize. (n.d.). Web.
The Deming Prize Committee Union of Japanese Scientists and Engineers. (2015). The application guide for the Deming Grand Prize. Web.
Evans, J., & Lindsay, W. (2014). Managing for quality and performance excellence (9th ed.). Mason, OH: Cengage Learning.
Improve performance and get world-class results. (2017). Web.
Vision 2021. (n.d.). The global economy will witness significant economic changes in the coming years and the UAE Vision 2021 National Agenda aims for the UAE to be at its heart. Web.