6. The Challenge of the Deming Prize
1949-
(3) Significance of the Award
- 1961
- Through the hard work and dedication of all employees, the company was honored with the Deming Prize in 1961. The true significance of this achievement lay in the collective realization of the importance of quality, fostered through shared challenges and efforts.
After nearly two years of rigorous preparation, the day of the examination finally arrived. The evaluations began at the Tokyo office on August 19, 1961, followed by a three-day assessment at the headquarters starting on September 18, and concluded with the final evaluation at the Osaka office on September 27.
Reference：Deming Prize Examiners
Reference：Our Company's Reporters and Report Themes
Following the completion of the examinations, even before knowing the results, President Torao Hayashi addressed all employees via an internal broadcast, expressing gratitude for their tremendous efforts. He continued with the following remarks:
“After explaining various aspects and receiving questions, observations, and criticisms, I realized that the true significance of the examination is not merely to win the Deming Prize. More importantly, it is about understanding how 5,000 employees comprehend quality control and recognizing the areas where we need to focus our efforts. At the conclusion, I told the examiners: ‘Our work is directly connected to human lives. If an automobile has an accident, it can result in the loss of life. Therefore, it is our responsibility to create products that are trustworthy and safe for anyone to use. Our goal in quality control is to earn the trust of our customers that products from Nippondenso are reliable.”
- Deep DiveWhat We Gained from the Deming Prize Challenge
- During the process of challenging for the Deming Prize, the understanding and application of statistical methods became widespread throughout the company, leading to significant advancements in management techniques. However, the benefits extended beyond just technical improvements. A shared understanding was cultivated among employees that it is crucial to accurately grasp the quality demanded by consumers and produce it in the most economical manner. Additionally, the importance of executing tasks through close teamwork across all levels and departments, rather than making decisions solely from the perspective of one's own department, became deeply ingrained among all employees.
On October 7, at the Deming Prize Committee meeting held in Tokyo, it was decided that our company would be awarded the “Deming Application Prize.” The award ceremony for the 1961 Deming Prize took place on November 7 during the Quality Control Conference held in Tokyo.
- Deep DiveReasons for Our Company’s Award
- “Nippondenso, as a specialized manufacturer of automotive electrical components, produces an extraordinarily vast array of parts. Despite this complexity, the company has made significant strides in standardizing operations. Effective management is achieved through Nippondenso's unique Initial-Stage Production Quality Control and Process Capability Studies. For outsourced products, a line inspection system is implemented, and in terms of technical research, the company consistently and reliably produces new products, yielding significant results. Although there are some areas for improvement—such as overly rigid regulations and procedural documents, as well as a somewhat immature use of statistical methods—the company is fully deserving of the Deming Application Prize.”
To commemorate this achievement, a monument was erected in front of the main gate in October 1962. This act symbolized our commitment to making QC the cornerstone of our management. Furthermore, to use this award as a springboard towards becoming a global company, we established the slogan “DENSO Quality First.” We have cherished and upheld this slogan and the values it represents to this day.
- Deep DiveSubsequent Developments in QC
- Following the receipt of the Deming Prize, our company introduced QC Circle activities in 1964. In 1973, we launched the “Let's Make 100% Good Products” campaign, followed by the “Global DENSO: TQC for Everyone” campaign in 1983. Further evolving our quality initiatives, in 1989 we started the “Global DENSO: 100% Customer Satisfaction” campaign. Through these efforts, our company has continuously evolved its quality control activities to adapt to changing business environments, transitioning from QC (Quality Control) to TQC (Total Quality Control), and finally to TQM (Total Quality Management). These initiatives have supported our business growth to this day.