Research the three well-known awards (Baldridge Award, European Quality Award, Deming Prize) given annually to recognize quality. Pick one of the awards and one of the main evaluation criteria. Compare and Contrast this evaluation criterion for Apple and Microsoft. How would these two organizations score on this quality dimension? How would you suggest improving the quality related to this criterion based on the material that is covered in this section?
The Deming Prize that is given to organizations, has exerted an immeasurable influence directly and indirectly on the development of quality control/management in Japan. Applicant organizations and divisions of companies sought after new approaches to quality management that met the needs of their business environment and challenged for the Deming Prize. Those organizations developed effective quality management methods, established the structures for implementation and put the methods into practice.
There is no easy success at this time of constant change. No organization can expect to build excellent quality management systems just by solving problems given by others. They need to think on their own, set lofty goals and drive themselves to challenge for achieving those goals. For these organizations that introduce and implement TQM in this manner, the Deming Prize aims to be used as a tool for improving and transforming their business management.
It’s apparent that Apple did not implement Dr. Deming’s steps or any of his fourteen points in a textbook fashion; however, it serves as a good example for focusing on quality first in today’s technology industry. It has gained the same result as Dr. Deming’s expectation for any organization’s remodeling process. Moreover, Steve Jobs had his strategies for TQM and excellence which closely mirror those of Dr. Deming’s. Even though he may not have been speaking of “quality” in the textbook sense of TQM, the result of those who listen to his words is the same.
Generally there are many similarities among these three awards based on the categories on which the award is given. But there are some differences. One special evaluation criteria of Deming prize is that it focuses on continuous improvement, quality management through statistical practices more compared to the other two awards. These criteria are widely used by Apple and Microsoft.
Microsoft uses several key ratios to track efficiency of their development and quality assurance processes. The two widely used ratios are Defect Leakage Rate (DLR) and the Defect Rejection Rate (DRR) (Exhibit 4) At an overall level, for every defect in the system at the 3 a quality level (i.e. 3 defects per 1000 lines of code [LOC]). on an average 37.5% defects get leaked into production. It is therefore clear that early detection and resolution of defects is critical for Microsoft to keep its costs low. Therefore it is important that the company makes the right tradeoff between Costs and Quality (COQ) during the software development process (Exhibit 5).
Apple also uses many quality control practises and along with that there main focus is on serving customers and driving business excellence which is a main evaluation criteria of Baldridge award. Even Microsoft focuses on customer satisfaction but Apple is quite vocal about it