6. The Challenge of the Deming Prize
1949-
(1) Why the Deming Prize?
- 1959
- In addition to the need for recovery from the damage caused by Typhoon Isewan, the liberalization of trade necessitated a thorough strengthening of the company's constitution. President Hayashi resolved to rally the company's entire strength by taking on the challenge of the Deming Prize, the pinnacle of quality control.
The year 1959 marked the 10th anniversary of the company's founding, and there was a growing momentum to improve the company's constitution in anticipation of trade liberalization. Then, in September of the same year, Typhoon Isewan struck, causing enormous damage to our company. The immediate priority was swift recovery, but this disaster also underscored the need for a thorough strengthening of the company’s constitution to prepare for future leaps forward. It had become an unavoidable necessity.
It was a time for all employees to return to the passionate resolve of the founding days and to collectively mobilize our total strength. For this, an effective strategy was needed. To unite the entire company’s effort, it was essential to set a high and ambitious goal. President Torao Hayashi made the decision: to realize this through the challenge of the Deming Prize. However, this was indeed a “challenge” in every sense of the word.
- Deep DiveTrade Liberalization and Quality
- Regarding the challenge of the Deming Prize, President Hayashi remarked as follows:
“If American-made automobiles are imported due to trade liberalization, will domestic automobile manufacturers be able to survive? In such a scenario, what will happen to our company? Reflecting on our past experiences with sales promotion, it seems that competing on price alone is not the key; rather, competing on quality is crucial. This approach will not only ensure our company's survival but also support the strength of Japan's automobile industry.”
“To address and overcome the challenges posed by trade liberalization, I was convinced that the best method was to establish and thoroughly implement a company-wide QC (Quality Control) system involving everyone. We received guidance from external expert instructors, and not only did the executives and senior staff participate in seminars and training sessions, but so did section chiefs and team leaders. Moreover, we have instructed every single worker to perform their tasks with a QC mindset.”
The Deming Prize is a prestigious award, representing the highest level of quality control in Japan. At that time, only about 20 top-tier companies had already received this award, and in the automotive industry, only an automaker was planning to apply. The Deming Prize is divided into three categories: the Deming Prize, the Deming Application Prize, and the Deming Application Prize for Small Companies. Our company aimed for the Deming Application Prize.
The Deming Application Prize prioritizes providing products that satisfy customers as its primary objective of quality control and evaluates how the company’s operations are conducted using statistical methods. Winning the prestigious Deming Prize would be an excellent opportunity to significantly enhance our company’s credibility in society.
Reference：Overview of Deming Prize