Business Excellence Models
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Transcript of Business Excellence Models
1
Key Learning:
Total Quality Management
European Foundation for Quality Management
Malcolm Baldrige Quality Award
Deming Prize 2
Total Quality (TQ) (1)
A people-focused management system that:
• aims at continual increase in customer
satisfaction at continually lower real cost;
• aims to meet customer’s requirements at
the expected time and the right place, and
• aims to obey applicable regulations.
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Total Quality (2)
TQ approach refers to the following:
• It works horizontally across functions
and departments;
•It involves all employees, top to bottom;
•It extends backward and forward to include the
supply chain and the customer chain;
•It stresses learning and adaptation to continual
change as keys to organizational success
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Total Quality Management
Total quality management or TQM is an integrative philosophy of management for continuously improving the quality of products/ services and processes
TQM is based on the premise that the quality of products and processes is the responsibility of everyone involved with the creation or consumption of the products or services offered by an organization, requiring the involvement of management, workforce, suppliers, and customers, to meet or exceed customer expectations.
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EFQM Excellence Model (1)
The EFQM Excellence Model was
introduced at the beginning of 1992 as the
framework for organizational self-assessment
and as the basis for judging entrants to the
European Quality Award
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EFQM Excellence Model (2)
A tool for Self-Assessment
A way to Benchmark with
other organisations
A guide to identify areas for Improvement
The basis for a common Vocabulary
and a way of thinking
A Structure for the organisation's
management system
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Concepts of Excellence (1)
Achieving Balanced Results
Excellent organisations meet their Mission and
progress towards their Vision through planning
and achieving a balanced set of results that
meet both the short and long term needs of their
stakeholders and, where relevant, exceed them.
Focus is on developing the key set of results
required to monitor progress against the
vision, mission and strategy, enabling leaders
to make effective and timely decisions.
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Concepts of Excellence (2)
Leading with Vision, Inspiration and Integrity
Excellent organisations have leaders who
shape the future and make it happen, acting
as role models for its values and ethics.
The focus is on the ability of leaders to adapt,
react and gain the commitment of all
stakeholders to ensure the ongoing success
of the organisation. 9
Concepts of Excellence (3)
Adding Value for Customers
Excellent organisations know that customers
are their primary reason for being and strive
to innovate and create value for them by
understanding and anticipating their needs
and expectations.
Focus is on clearly defining and
communicating the value proposition and
actively engaging customers in the product
and service design processes. 10
Concepts of Excellence (4)
Managing by Processes
Excellent organisations are managed through
structured and strategically aligned processes
using fact-based decision making to create
balanced and sustained results.
The focus is on how the processes are
designed to deliver the strategy, with end to
end management beyond the “classic”
boundaries of the organisation. 11
Concepts of Excellence (5)
Succeeding through People
Excellent organisations value their people and
create a culture of empowerment for the
balanced achievement of organisational and
personal goals.
The focus is on creating a balance between
the strategic needs of the organisation and
the personal expectations and aspirations
of the people to gain their commitment and
engagement. 12
Concepts of Excellence (6)
Nurturing Creativity and Innovation
Excellent organisations generate increased
value and levels of performance through
continual and systematic innovation by
harnessing the creativity of their stakeholders.
The concept recognises the need to develop
and engage with networks and the need to
engage all stakeholders as potential sources
of creativity and innovation. 13
Concepts of Excellence (7)
Building Parnerships
Excellent organisations seek, develop and
maintain trusting relationships with various
partners to ensure mutual success (with
customers, society, key suppliers, educational
bodies or Non-Governmental Organisations).
The concept includes partnerships beyond
the supply chain and recognises that these
should be based on sustainable mutual
benefits to succeed. 14
Concepts of Excellence (8)
Taking Responsibility for a Sustainable Future
Excellent organisations embed within their culture
an ethical mindset, clear values and the highest
standards for organisational behaviour, all of
which enable them to strive for economic, social
and ecological sustainability.
The concept focuses on actively taking
responsibility for the organisation’s
conduct and activities and managing it’s
impact on the wider community.
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Levels of Excellence (1)
Committed to Excellence, which
demonstrates that an organization has
started out and passed the first hurdle
of commitment
The emphasis is on helping organizations
understand their current level of performance
and to establish improvement priorities 16
Levels of Excellence (2)
Recognized for Excellence, which indicates
a well-managed organization on the way to
advanced organizational excellence
This level offers applicants the benefits of a
structured approach to identify organizational
strengths and areas for improvement
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Levels of Excellence (3)
European Quality Award Level, at Finalist, Prize winner or Award Winner itself, which designates organizations that aspire to achieve European best or world-class levels
Europe’s most prestigious Award for organizational excellence
It is the top Level of the EFQM Levels of Excellence
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RADAR
The management methodology, which defines the
learning cycle necessary for effective change
management, and provides a scoring framework
for evaluating the consistency between
organisational activities and objectives.
The acronym ‘RADAR’ stands for: Results,
Approach, Deployment, Assessment and Refinement.
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EFQM Excellence Model Criteria
ENABLERS RESULTS
People People Results
10% 10%
Leadership Strategy Processes,
Customer
Products, Key Results
10% 10% Results
Services
15%
15%
10%
Partnerships Society Results
&Resources 10%
10%
NIG EARNL NDA OIN T NINOVA
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1. Leadership
Develop the mission, vision, values and ethics
and act as role models
Define, monitor, review and drive the improvement
of the organisation’s management system and
performance.
Engage with external stakeholders
Reinforce a culture of excellence with
the organisation’s people
Ensure that the organisation is flexible and
manages change effectively 21
2. Strategy
Is based on understanding the needs and expectations of both stakeholders and the external environment
Is based on understanding internal performance and capabilities
Strategy and supporting policies are developed, reviewed and updated to ensure economic, societal and ecological sustainability
Strategy and supporting policies are communicated and deployed through plans, processes and objectives
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3. People
People plans support the organisation’s strategy
People’s knowledge and capabilities are developed
People are aligned, involved and empowered
People communicate effectively throughout
the organisation
People are rewarded, recognised and cared for
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4. Partnerships and Resources
Partners and suppliers are managed for sustainable benefit
Finances are managed to secure sustained success
Buildings, equipment, materials and natural resources are managed in a sustainable way
Technology is managed to support the delivery of strategy
Information and knowledge are managed to support effective decision making and to build the organisational capability
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5. Processes, Products, Services
Processes are designed and managed to
optimise stakeholder value
Products and Services are developed to
create optimum value for customers
Products and Services are effectively promoted
and marketed
Products and Services are produced, delivered
and managed
Customer relationships are managed and enhanced
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6. Customer Results
Comprehensively measure and achieve
outstanding results with respect to
organization’s customers
Perception Measures
Reputation and image
Product and service value
Product and service delivery
Customer service, relationship and support
Customer loyalty and engagement 26
6. Customer Results (continued)
Comprehensively measure and achieve
outstanding results with respect to
organization’s customers
Performance Indicators
Products and services delivery
Customer service, relationships and support
Complaints and compliments
External recognition
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7. People Results
Comprehensively measure and achieve
outstanding results with respect to
organization’s people
Perception Measures
.....................................
Performance Indicators
..................................
28
8. Society Results
Comprehensively measure and
achieveoutstanding results with respect
to society
Perception Measures
.....................................
Performance Indicators
..................................
29
9. Key Results
Comprehensively measure and achieve
outstanding results with respect to the key
elements of organization’s policy and strategy
Key Performance Outcomes
...............................................
Key Performance Indicators
............................................... 30
2012 EFQM Excellence Awards (listed alphabetically)
BMW Plant Regensburg EFQM Prize Winner
Bosch Tecnologie Diesel e Sistemi Frenanti S.p.A. EFQM Prize
Winner
Coca-Cola Icecek A.S.Ankara Plant EFQM Prize Winner
JSC “Medicina” EFQM Prize Winner
pom+Consulting EFQM Prize Winner AG
Robert Bosch GmbH Bamberg Plant EFQM Excellence Award
& Prize Winner
VAMED-KMB EFQM Prize Winner
B. Braun Avitum Hungary EFQM Finalist
Dzierzoniow Town Hall EFQM Finalist
Hospital Galdakao-Usansolo Ospitalea (Osakidetza) EFQM
Finalist
Mutualia EFQM Finalist
Nilufer Municipality EFQM Finalist
Wakefield and District Housing(WDH) EFQM Finalist 31
National Quality Award
Juran Quality Award - http://www.fundatia-juran.ro/
2001: SC OLTCHIM SA Rm Vâlcea, SC Contor ZENNER România SA
2002: SC CASIAL SA Deva 2003: Societatea Comercială Filiala de Distribuţie
şi Furnizare a Energiei Electrice –ELECTRICA Banat SA; SC ROMAQUA GROUP SA Borsec, SC SEARCH CORPORATION SRL
2004: BCR
2005: INSTITUTUL NATIONAL DE MEDICINA AERONAUTICA SI SPATIALA (INMAS)
2006:CN TRANSELECTRICA SA - Bucuresti
2007 & 2008: no winners 32
International Quality Awards
The Malcolm Baldridge National Quality
Award, 1987, USA
The Deming Prize, 1951, Japan
Canadian Awards for Business Excellence
Australian Business Excellence Award, 1988
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Malcolm Baldridge National Quality
Award – Criteria
Leadership
Strategic planning
Customer focus
Measurement, analysis, and knowledge
management
Workforce focus
Operations focus
Results
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Malcolm Baldridge National Quality
Award – Sectors
Education
Health care
Manufacturing
Non-profit/ Government
Service
Small business 35
Deming Prize – Criteria
Management policies and their deployment regarding quality management
New product development and/or work process innovation
Maintenance and improvement of product and operational qualities
Establishment of systems for managing quality, quantity, delivery, costs, safety, environment, etc
Collection and analysis of quality information and utilization of information technology
Human resources development 36