The Deming Prize Process at FPL

Article

Amon, Vicki N.; Mogollon-Seemer, Maria T.   (1990, ASQC)   Florida Power & Light Company, Juno Beach, FL

Annual Quality Congress, San Francisco, CA    Vol. 44    No. 0
QICID: 9421    May 1990    pp. 10-15
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Article Abstract

The Deming Prize is awarded by the Union of Japanese Scientists and Engineers (JUSE) to companies that successfully apply Total Quality Control (TQC) based on Statistical Quality Control (SQC). Companies that apply for the Deming Prize experience an acceleration of TQC implementation, which results in a quantum leap in quality improvement.

In 1986, the Deming Prize committee established the Deming Application Prize for Overseas Companies, which opened competition for the Deming Prize to companies outside of Japan. To date, Florida Power & Light Company (FPL) is the only overseas company to apply for and receive this prize.

The first step of the Deming Prize process requires companies to submit an application, which includes an outline of the company and a short summary of its TQC efforts. If the application is accepted by the Deming Prize committee, the company then prepares and submits extensive documentation of its TQC efforts, known as the Description of Quality Control Practices. After reviewing this documentation the committee informs the applying company if it is eligible to stand for the on-site examination.

The on-site examination consists of three parts: Schedule A, Schedule B and the Executive Session. Schedule A is the company-initiated portion of the examination, during which unit executives provide an outline of their organization and an introduction of their approach to TQC. The purpose is to better acquaint the examiners with the way the company's business is conducted and the overall effects of TQC. Schedule B is the examiner-initiated portion of the examination. It may include a rive minute overview presentation by each department under examination, followed by questions from the examiners and the general session. The Executive Session consists of interviews with the company's top executives to validate that TQC is truly the way the company is managed.With the commitment of FPL's top officers, the company began.its quality improvement efforts in 1981. FPL's TQC effort, known as QIP, is a never ending Journey based on the principles of customer satisfaction, plan-do-check-act, management by fact and respect for people. It is driven by three components - Policy Deployment, Quality-In-Daily- Work and Quality Improvement Teams - all supported by education and training. It is FPL's answer to the challenges and complexities of the current business environment.

FPL passed some major milestones on route to winning the Deming Prize. In November 1988, the company submitted its application and in January 1989 its Descriptions of QIP. Key FPL executives met with the examiners in April to provide an overview of the company and discuss the specifics of the on-site examination. Corporate-wide reviews and examination rehearsals were conducted In the months preceding the examination. Finally, the examination was conducted, and FPL was notified in October that it had won the Demlng Prize.

The Deming Prize process was a major milestone for FPL in its pursuit of Total Quality. By continuing its focus on quality improvement, the company plans to achieve even greater advancements in the future.

Keywords

Quality management (QM)


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