Pakistan Quality Award

(A road map towards betterment of Pakistani organizations)
Submitted To: Dr. Muhammad Usman Awan
Module: “Quality Tools & Techniques”
Submitted By: Omer Iqbal
MS TQM 17-53

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Introduction
To succeed in today’s more competitive business arena, any business ought to have customer
oriented, i.e. quality based marketing, operational and financial strategies. Quality standards
can be of significant help in achieving the objectives associated with such strategies since they
clearly define the contractual, functional and technical requirements for all quality activities
that will ensure that a product, process, service, or system is fit for its intended purpose.
There have been many recent developments in research for TQM standards or frameworks
against which organizations may be assessed or measure themselves. Several national and
regional quality awards have been established to promote quality and serve as models of TQM.
Three of the most famous and now widely used frameworks for TQM are the Deming
Application Prize (DP), the Malcolm Baldrige National Quality Award (MB), and the
European Quality Award (EQA). They have been established to promote quality and serve as
models for TQM by offering a continually changing blueprint for organizational self-analysis,
by providing motivation for continuous improvement, and by focusing attention on the strategic
implications of quality. Furthermore, other important issues such as competitive benchmarking
have gained increasing interest, partly owing to the growing numbers of companies of all sizes
interested in these awards.
Some of the main barriers to using the awards to improve include the significant resources
required to write a written application/report, fear of fits in with a company’s current planning
and improvement efforts, and a lack of commitment to use assessment results to improve.
Winners of these awards have, however, reported that their implementation of TQM has not
only improved quality and has led to improvements in market share, sales, profits and employee
morale, but also provided them with the competitive internal mechanism necessary to face
unusual quality standards requirements.
Quality awards as quantitative monitoring tools
The establishment of comprehensive sets of criteria to evaluate award applicants has provided
businesses with a consistent set of standards by which they can evaluate and monitor quality
performance. One such example is the quality measurement index (QMI). It represents a
survey-guided approach to organizational quality improvement and is based on the examination
criteria used by the Malcolm Baldrige Award.

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Major Quality Awards
1.0 The Deming Prize
The Deming Prize was the first to be established back in 1951. It was set up by the Union of
Japanese Scientists and Engineers to commemorate Dr Deming’s contribution to Japanese
industry and to promote further the continued development of quality control in Japan. The
Deming Prize has a total of five categories, namely: the Deming Prize for Individuals (DPI);
the Deming Application Prize (DP); the Deming Application Prize for Small Companies
(DAPSC); the Deming Application Prize for Divisions (DAPD); and the Quality Control
Award for Factories (QCAF). Non-Japanese companies have been allowed to apply for and
receive the DP since 1984. However, those categories of DP which are open to overseas
companies do not include the DPI and the QCAF.
The aim of the examination is to find out how well a company implements total quality control
(TQC) by assessing its quality assurance policies and activities, the implementation of
company-wide quality control (CWQC) practices, and the results achieved (quality
improvement, productivity improvement, cost reduction, expanded sales, increased profits,
etc.) through application of statistical techniques and quality circles.
The DP is given to companies that have achieved distinctive performance through the
application of CWQC. The company’s performance on the application of CWQC is evaluated
through two examinations, the document examination and the on-site examination.
Examination / Criteria Points of Deming Prize
The examination results are scored. Each of the ten examination items carries ten points:
1. Policies
2. The organization and its operations
3. Education and dissemination
4. Information gathering, communications and utilization
5. Analysis
6. Standardization
7. Control/management
8. Quality assurance
9. Effects
10. Future plans

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2.0 EFQM Excellence Model
Regardless of sector, size, structure or maturity, organisations need to establish an appropriate
management framework to be successful. The EFQM Excellence Model is a practical, non-
prescriptive framework that enables organisations to:
• Assess where they are on the path to excellence; helping them to understand their key
strengths and potential gaps in relation to their stated Vision and Mission.
• Provide a common vocabulary and way of thinking about the organisation that
facilitates the effective communication of ideas, both within and outside the
organisation.
• Integrate existing and planned initiatives, removing duplication and identifying gaps.
• Provide a basic structure for the organisation’s management system.
Whilst there are numerous management tools and techniques commonly used, the EFQM
Excellence Model provides a holistic view of the organisation and it can be used to determine
how these different methods fit together and complement each other. The Model can therefore
be used in conjunction with any number of these tools, based on the needs and function of the
organisation, as an overarching framework for developing sustainable excellence.
All organisations strive to be successful, some fail, some achieve periods of success but
ultimately fade from view, and a few achieve sustainable success, gaining deserved respect and
admiration.
The Criteria of EFQM

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The EFQM Excellence Model represented in the diagram above is a non-prescriptive
framework based on nine criteria. Five of these are ‘Enablers’ and four are ‘Results’. The
‘Enabler’ criteria cover what an organisation does and how it does it. The ‘Results’ criteria
cover what an organisation achieves. ‘Results’ are caused by ‘Enablers’ and ‘Enablers’ are
improved using feedback from ‘Results’.
The arrows emphasise the dynamic nature of the Model, showing learning, creativity and
innovation helping to improve the Enablers that in turn lead to improved Results. Each of the
nine criteria has a definition, which explains the high-level meaning of that criterion.
3.0 Malcolm Baldridge National Quality Award
The Criteria of MB is the basis for conducting organizational self-assessments, for making
Awards, and for giving feedback to applicants. In addition, the Criteria have three important
roles in strengthening U.S. competitiveness:
• To help improve organizational performance practices, capabilities, and results
• Tto facilitate communication and sharing of best practices information among U.S.
organizations of all types
• To serve as a working tool for understanding and managing performance and for
guiding organizational planning and opportunities for learning
The Criteria is designed to help organizations use an integrated approach to organizational
performance management that results in the following:
• Delivery of ever-improving value to customers and stakeholders, contributing to
organizational sustainability
• Improvement of overall organizational effectiveness and capabilities
• Organizational and personal learning
Criteria for Performance Excellence Framework
The Core Values and Concepts are embodied in seven Categories, as follows:
1. Leadership
2. Strategic Planning

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3. Customer and Market Focus
4. Measurement, Analysis and Knowledge Management
5. Human Resource Focus
6. Process Management
7. Results

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Pakistan Quality Award (PQA)
“Theoretical Framework of Pakistan Quality Award”
The Pakistan Quality award will provide a framework to empower the organization no matter
which type and the size of the organization is.
The framework of this model will also be helpful that how organizations in Pakistan achieve
their goals, improve results, and become more competitive by aligning the plans, processes,
decisions, people, actions, and results.
From the helpofthis model,the management system, the processes andthe results maybe improved and
ultimatelycompanywill have more financial gains.
There are nine different elements which are extracted from the excellence models i.e. EFQM
(EQA), Malcolm Baldridge National Quality Award (MB) and The Deming Prize (DP). These
elements cover all the aspects which must be considered in the improvement of the
organizations.
Leadership
Engagement of
People
Relationship
Management
Process
(Products,services)
People
Results
Customer
Results
Corporate Social
Responsibility
Outcomes
Monitoring, Measurement, Analysis and Knowledge Management

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The elements which constituted the framework are as follows:
1. Leadership
2. Engagement of People
3. Relationship Management
4. Process
5. Monitoring, measurement, analysis and knowledge management
6. People Results
7. Customer Results
8. Corporate Social Responsibility
9. Outcome
1. Leadership
The Leadership category examines howorganization’s senior leaders’ personal actions guide
and sustain in organization. Also examined the are your organization’s governance system
and its legal, ethical, and societal responsibilities and supports its key communities.
Organizational vision should set the context for strategic objectives and action plans. A
sustainable organization is capable of addressing current business needs and possesses the
agility and strategic management to prepare successfully for its future business, market, and
operating environment. Both external and internal factors are considered. In this context, the
concept of innovation includes both technological and organizational innovation to help the
organization succeed in the future. A sustainable organization also ensures a safe and secure
environment for the workforce and other key stakeholders. An organization’s contributions
to environmental, social, and economic systems beyond those of its workforce and
immediate stakeholders are considered in its societal responsibilities. A focus on action
considers the strategy, the workforce, the work systems, and the assets of organization. It
includes taking intelligent risks and implementing innovations and ongoing improvements
in productivity that may be achieved through eliminating waste or reducing cycle time; it
might use techniques such as Six Sigma and Lean. It also includes the actions to accomplish
organization’s strategic objectives.

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2. Engagement of People
Competent, empowered and engaged people at all levels throughout the organization are
essential to enhance its capability to create and deliver value. The purpose of this elements
is to manage an organization effectively and efficiently, it is important to involve all people
at all levels and to respect them as individuals. Recognition, empowerment and
enhancement of competence facilitate the engagement of people in achieving the
organization’s quality objectives. This category examines your ability to assess workforce
capability and capacity needs and build a workforce environment conducive to high
performance. This category also examines how an organization engages, manages, and
develops workforce to utilize its full potential in alignment within the organization’s overall
mission, strategy, and action plans.
“Engagement of People” refers to the people actively involved in accomplishing the work of
your organization. It includes your organization’s permanent, temporary, and part-time
personnel, as well as any contract employees supervised by your organization. It includes
team leaders, supervisors, and managers at all levels.
“Engagement of People” refers to the organization’s ability to accomplish its work processes
through the knowledge, skills, abilities, and competencies of its people. Capability may
include the ability to build and sustain relationships with your customers; innovate and
transition to new technologies; develop new products, services, and work processes; and
meet changing business, market, and regulatory demands.
“Engagement of People” refers to your organization’s ability to ensure sufficient staffing
levels to accomplish its work processes and successfully deliver products to the customers,
including the ability to meet seasonal or varying demand levels.
The characteristics of high-performance work environments, in which people do their
utmost for the benefit of their customers and for the success of the organization, are key to
understanding an engaged workforce.
Compensation, recognition, and related reward and incentive practices include promotions
and bonuses that might be based on performance, skills acquired, and other factors. In some
government organizations, compensation systems are set by law or regulation. However,
since recognition can include monetary and nonmonetary, formal and informal, and
individual and group mechanisms, reward and recognition systems do permit flexibility.
Identifying improvement opportunities might draw on the workforce-focused results
presented in item and might involve addressing workforce-related problems based on their

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impact on the organizational results. Organization may have unique considerations relative
to workforce development, learning, and career progression.
3. Relationship Management
For sustained success, an organization manages its relationships with interested parties, such
as suppliers. Interested parties influence the performance of an organization. Sustained success
is more likely to be achieved when the organization manages relationships with all of its
interested parties to optimize their impact on its performance. Relationship management with
its supplier and partner networks is of particular importance
Key benefits of Relationship Management
• Enhanced performance of the organization and its interested parties through responding
to the opportunities and constraints related to each interested party
• Common understanding of goals and values among interested parties
• Increased capability to create value for interested parties by sharing resources and
competence and managing quality-related risks
• A well-managed supply chain that provides a stable flow of goods and services
What actions should be taken for better ‘Relationship’
• Determine relevant interested parties (such as suppliers, partners, customers, investors,
employees, and society as a whole) and their relationship with the organization.
• Determine and prioritize interested party relationships that need to be managed.
• Establish relationships that balance short-term gains
• with long-term considerations.
• Pool and share information, expertise and resources with relevant interested parties.
• Measure performance and provide performance feedback to interested parties, as
appropriate, to enhance improvement initiatives.
• Establish collaborative development and improvement activities with suppliers,
partners and other interested parties.
4. Process
Consistent and predictable results are achieved more effectively and efficiently when activities
are understood and managed as interrelated processes that function as a coherent system.

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The entire quality management system and quality culture consists of interrelated processes.
So, there should be clear understanding that how results are produced by this system enables
an organization to optimize the system and its performance
Key benefits of ‘Managing Process’
• Enhanced ability to focus effort on key processes and opportunities for improvement
• Consistent and predictable outcomes through a system of aligned processes
• Optimized performance through effective process management, efficient use of
resources, and reduced cross-functional barriers
• Enabling the organization to provide confidence to interested parties as to its
consistency, effectiveness and efficiency
Actions to be taken for ‘Managing Process’
• Define objectives of the system and processes necessary to achieve them.
• Establish authority, responsibility and accountability for managing processes.
• Understand the organization’s capabilities and determine resource constraints prior to
action.
• Determine process interdependencies and analyse the effect of modifications to
individual processes on the system as a whole.
• Manage processes and their interrelations as a system to achieve the organization’s
quality objectives effectively and efficiently.
• Ensure the necessary information is available to operate and improve the processes and
to monitor, analyse and evaluate the performance of the overall system.
• Manage risks that can affect outputs of the processes and overall outcomes of the
quality management system.
5. Monitoring, Measurement, Analysis and Knowledge Management
The Measurement, Analysis, and Knowledge Management category examines how your
organization selects, gathers, analyzes, manages, and improves its data, information and
knowledge assets and how it manages its information technology. The category also examines
how your organization uses review findings to improve its performance. Performance
measurement is used in fact-based decision making for setting and aligning organizational
directions and resource use at the work unit, key process, departmental, and organizational
levels. Comparative data and information are obtained by benchmarking and by seeking

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competitive comparisons. “Benchmarking” refers to identifying processes and results that
represent best practices and performance for similar activities, inside or outside the
organization’s industry. Competitive comparisons relate the organization’s performance to that
of competitors and other organizations providing similar products and services. Organizational
performance reviews should be informed by organizational performance measurement and by
performance measures reported throughout your Criteria item responses, and they should be
guided by the strategic objectives and action plans.
6. People Results
Excellent organisations achieve and sustain outstanding results that meet or exceed the needs
and expectations
of their people.
In practice, we find that excellent organisations:
• Use a set of perception measures and related performance indicators to determine the
successful deployment of their strategy and supporting policies, based on the needs and
expectations of their people.
• Set clear targets for key people results based on the needs and expectations of their
people, in line with their chosen strategy.
• Segment results to understand the experience, needs and expectations of specific groups
of people within their organisation.
• Demonstrate positive or sustained good people results over at least 3 years.
• Clearly understand the underlying reasons for and drivers of observed trends and the
impact these results will have on other performance indicators and related outcomes.
• Have confidence in their future performance and results based on their understanding
of the cause and effect relationships established.
• Understand how the key people results compare to similar organisations, and use this
data, where relevant, for target setting.
PERCEPTIONS
These are the people’s perception of the organisation. These may be obtained from a number
of sources, including surveys, focus groups, interviews and structured appraisals. These
perceptions should give a clear understanding of the effectiveness, from the people’s

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perspective, of the deployment and outcomes of the organisation’s people strategy and
supporting policies and processes.
MEASURES COULD INCLUDE PERCEPTIONS OF:
❖ Satisfaction, involvement and engagement
❖ Motivation and empowerment
❖ Leadership and management
❖ Competency and performance management
❖ Training and career development
❖ Effective communications
❖ Working conditions
PERFORMANCE INDICATORS
These are the internal measures used by the organisation in order to monitor, understand,
predict and improve the performance of the organisation’s people and to predict their impact
on perceptions.
These indicators should give a clear understanding of the deployment and impact of the
organisation’s people strategy and supporting policies and processes.
MEASURES COULD INCLUDE PERFORMANCE INDICATORS ON:
❖ Involvement and engagement activities
❖ Competency and performance management activities
❖ Leadership performance
❖ Training and career development activities
❖ Internal communications
7. Customer Results
This Item examines your organization’s customer-focused performance results, with the aim
of demonstrating how well your organization has been satisfying your customers and has
developed loyalty, repeat business, and positive referrals, as appropriate.
This element focuses on all relevant data to determine and help predict your organization’s
performance as viewed by your customers. Relevant data and information include customer

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satisfaction and dissatisfaction; retention, gains, and losses of customers and customer
accounts; customer
complaints, complaint management, effective complaint resolution, and warranty claims;
customer-perceived value based on quality and price; customer assessment of access
and ease of use (including courtesy in-service interactions); and awards, ratings, and
recognition from customers and iindependent rating organizations.
Moreover, this element places an emphasis on customer-focused results that go beyond
satisfaction measurements because loyalty, repeat business, and longer-term customer
relationships are better indicators and measures of future success in the marketplace and of
organizational sustainability.
Excellent organisations achieve and sustain outstanding results that meet or exceed the needs
and expectations of their customers.
In practice, we find that excellent organisations:
• Use a set of perception measures and related performance indicators to determine the
successful deployment of their strategy and supporting policies, based on the needs and
expectations of their customers.
• Set clear targets for the key customer results based on the needs and expectations of
their customers, in line with their chosen strategy.
• Segment results to understand the experience, needs and expectations of specific
customer groups.
• Demonstrate positive or sustained good customer results over at least 3 years.
• Clearly understand the underlying reasons and drivers of observed trends and the
impact these results will have on other performance indicators, perceptions and related
outcomes.
• Have confidence in their future performance and results based on their understanding
of the cause and effect relationships established.
• Understand how their key customer results compare to similar organisations and use
this data, where relevant, for target setting.
PERCEPTIONS
The following are the customers’ perceptions of the organisation. These may be obtained from
a number of sources, including surveys, focus groups, ratings, compliments and complaints.
These perceptions should give a clear understanding of the effectiveness, from the customers’

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perspective, of the deployment and outcomes of the organisation’s customer strategy,
supporting policies and processes.
MEASURES COULD INCLUDE PERCEPTIONS OF:
❖ Reputation and image
❖ Product and service value
❖ Product and service delivery
❖ Customer service, relationship and support
❖ Customer loyalty and engagement
PERFORMANCE INDICATORS
These are the internal measures used by the organisation in order to monitor, understand,
predict and improve the performance of the organisation and to predict their impact on the
perceptions of its customers. These indicators should give a clear understanding of
the deployment and impact of the organisation’s customer strategy, supporting policies and
processes.
❖ Product and service delivery
❖ Customer service, relationships and support
❖ Complaints handling
❖ Involvement of customers and partners in the design of products, processes, etc.
8. Corporate Social Responsibility
An organization’s leaders should stress responsibilities to the public, ethical behavior, and the
need to practice good citizenship.
Leaders should be role models for your organization in focusing on ethics and protection of
public health, safety, and the environment. Protection of health, safety, and the environment
includes your organization’s operations, as well as the life cycles of your products and services.
Also, organizations should emphasize resource conservation and waste reduction at the source.
Planning should anticipate adverse impacts from production, distribution, transportation,

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use, and disposal of your products. Effective planning should prevent problems, provide for a
forthright response if problems occur, and make available information and support needed to
maintain public awareness, safety, and confidence.
For many organizations, the product or service design stage is critical from the point of view
of public responsibility. Design decisions impact your production processes and often the
content of municipal and industrial waste. Effective design strategies should anticipate growing
environmental concerns and responsibilities.
Organizations should not only meet all local, state, and federal laws and regulatory
requirements, but they should treat these and related requirements as opportunities for
improvement “beyond mere compliance.” Organizations should stress ethical behavior in all
stakeholder transactions and interactions. Highly ethical conduct should be a requirement of
and should be monitored by the organization’s governance body.
Practicing good citizenship refers to leadership and support — within the limits of an
organization’s resources—of publicly important purposes. Such purposes might include
improving education and health care in your community, pursuing environmental excellence,
practicing resource conservation, performing community service, improving industry and
business practices, and sharing non-proprietary information.
Leadership as a corporate citizen also entails influencing other organizations, private and
public, to partner for these purposes.
9. Outcomes
The Results Category provides a results’ focus that encompasses your objective evaluation and
your customers’ evaluation of your organization’s products and services, your overall financial
and market performance, your human resource results, your leadership system and social
responsibility results, and results of all key processes and process improvement activities.
Through this focus, the Criteria’s purpose superior value of offerings as viewed by your
customers and the marketplace; superior organizational performance as reflected in your
operational, human resource, legal, ethical, and financial indicators; and organizational and
personal learning are maintained.
Product and Service Outcomes
This element examines your organization’s key product and service outcomes, with the aim
of delivering product and service quality that leads to customer satisfaction, loyalty,

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and positive referral. Moreover, this element places emphasis on measures of product and
service performance that serve as indicators of customers’ views and decisions relative to
future interactions and relationships.
Product and service measures appropriate for inclusion might be based on the following:
internal quality measurements, field performance of products, defect levels, service errors,
response times, and data collected from your customers by other organizations on ease of use
or other attributes, as well as customer surveys on product and service performance.
The correlation between product and service performance and customer indicators is a critical
management tool with multiple uses:
1. Defining and focusing on key quality and customer requirements;
2. Identifying product and service differentiators in the marketplace;
3. Determining cause-effect relationships between your product and service attributes
and evidence of customer satisfaction and loyalty, as well as positive referrals. The
correlation might reveal emerging or changing market segments, the changing
importance of requirements, or even the potential obsolescence of product or service
offerings.
OUTCOME MEASURES COULD INCLUDE:
❖ Financial outcomes
❖ Business stakeholder perceptions
❖ Performance against budget
❖ Volume of key products or services delivered
❖ Key process outcomes
❖ Financial indicators
❖ Project costs
❖ Key process performance indicators
❖ Partner and supplier performance
❖ Technology, information and knowledge
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