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New way to use EFQM business excellence model

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This presentation is about a new way to use business excellence model. It is about integration of business excellence model to continual improvement and for organisational transformation. Based on......

This presentation is about a new way to use business excellence model. It is about integration of business excellence model to continual improvement and for organisational transformation. Based on the paper presented by the author.

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  • 1. New way to use EFQM businessexcellence model for continualimprovement & businesstransformation V 1.3 9-10-2012ByJagadish C.A. (Rao) , Founder of q-MaximAdopted from the paper presented duringMiddle-east International Quality summit 1
  • 2. THIS PRESENTATION DESCRIBES INTEGRATION OFOF BUSINESS EXCELLENCE MODEL TO CONTINUALIMPROVEMENT STRATEGY OF ENTERPRISEAND FOR BUSINESS TRANSFORMATIONADOPTED FROM THE PAPER PRESENTED BY THE AUTHORDURING MIDDLE-EAST INTERNATIONAL QUALITYSUMMIT 2
  • 3. •Business excellence models- what is it, why•EFQM business excellence model details•EFQM traditional approach based on submission• The new integrated continual improvement approach•q-Maxim’s transformational approach•What next?•contacts, background of founder q q-Maxim 3
  • 4. Business Excellence “Quality is never happens by accident” -Juran, Deming, Ichikawa……. (Quality gurus) Business Excellence is a organizational Quality model 4
  • 5. Introduction –Approaches to BusinessExcellence • Several excellence models – Deming (Japan) , MBNQA (US), EFQM (Europe) • Several excellence awards in India : CII- Exim bank Excellence award, Rajiv Gandhi National Quality Award, individual company awards such as Tata group’s TBEM • Most are based on either EFQM or MBNQA award scheme 5
  • 6. Why companies go for BusinessExcellence?• Organization wide integrated quality approach – easy to comprehend• Measurable – excellence score• Under pressure to improve quality due to competitive pressures• Brand building , recognition• Impress - customers, suppliers, other stake holders• Encouragement from corporate management, govt. and industry associations• Number of studies on Excellent companies (EFQM, MBNQA,TQM) have shown significantly better financial performance and stock price compared to peers (see next slide) 6
  • 7. Why companies go forBusiness Excellence?Results of award winning companies 5 years after winning 7
  • 8. •Business excellence models- what is it, why•EFQM business excellence model details•EFQM traditional approach based on submission• The new integrated continual improvement approach•q-Maxim’s transformational approach•What next?•contacts, background of founder q q-Maxim 8
  • 9. EFQM business excellence model• Developed / managed by non-profit European foundation for quality (EFQM) organization• EFQM supported by leading European companies• A quality model, holistic management framework with a strong focus on delivering key results, stimulating innovation, ensuring sustainability and meeting the expectations of stakeholders. (source: EFQM) 9
  • 10. EFQM business excellence modeloverview• 3 integrated components 1. Fundamental concepts of excellence (basic principles) 2. Criteria for organisations 3. The RADAR (powerful tool for measurement)• 8 fundamental concepts• 9 criteria (5 enablers, 4 results), Each criteria has several sub criteria• RADAR based on Deming’s PDCA cycle (next 6 slides on components of EFQM model) 10
  • 11. EFQM business excellence modelfundamental concepts 11
  • 12. EFQM business excellence model5 enabler criteria, 4 results criteriaThe EFQM Excellence Model allows people to understand the cause and effect relationships between what their organisation does, the Enablers, and the Results it achieves. 12
  • 13. EFQM business excellence model Each criteria has several sub criteria such as these 1e 1d 1c 1b 1a 1 Criteria parts Leadership Areas to consider 5e 5d 5c 5b 5 5a Processes, Criteria parts Products, Services Areas to consider 13© 1998 EFQM 11
  • 14. EFQM business excellence model RADAR - measurement / scoring systemWhat is RADAR?Results (R) desired, Plan and develop Approaches (A), Deploy Approaches (DA),Assess and review (AR) 14
  • 15. EFQM business excellence model –RADAR based measurement scoring matrix for Enablers 15
  • 16. EFQM business excellence model –RADAR based measurement scoring matrix for Results 16
  • 17. EFQM business excellence model-excellence score -what does it indicate?• Best in class companies score 500-700 / 1000• Excellence score answer these basic questions: – Are the performance results due to carefully thought out & planned action by management ? (or is it simply fluke?) – To what extent? – Are these sustainable? 17
  • 18. EFQM business excellence model –scores- assessment methodsThree different ways exist in EFQM:1. Submission documents by company (<= ~70 pages) and assessment2. Use of internal documentation3. Management WorkshopNote:1. Assessment done by approved assessors2. Only method #1 used in India 18
  • 19. EFQM business excellence modelEFQM excellence levels Three different levels : 1. award winner for each category (highest category, best in class companies) 2. Recognised for excellence stars rating (R4-E stars) –[could be 3,4,5 stars] 3 =~300 excellence score & so on. (for companies well on the way towards excellence) 3. Committed to excellence - (for beginners) Note: Only type #1 is used in India 19
  • 20. •Business excellence models- what is it, why•EFQM business excellence model details•EFQM traditional approach based on submission• The new integrated continual improvement approach•q-Maxim’s transformational approach•What next?•contacts, background of founder q q-Maxim 20
  • 21. Excellence model traditional approachassessment mechanism1. Companies prepare and submit application (max 70 pages )2. Preliminary Scoring by assessors3. Site visit by assessors, final score4. award winner for each category5. all applicants get a assessment report (flow chart in next slide) 21
  • 22. Excellence model traditional approachflow chart-assessment continuous improvement linkage Form a team , appoint criteria owner for each section Ring fence area : Formulate a plan- information Fill information as Form a small team per Performa and dates, milestones gathering , data of writers for each write each area collection section Periodic project Finished Final submittal Status reviews Projects outputs Evaluation by assessors Project charters Raw score by each Meeting to assessor discuss & report: finalize scores, improvement Awards ceremony Final score Site visit -discussions projects notes 22 EVENT / ACTIVITY LEGEND Output / Information
  • 23. EFQM model traditional approach –shortcomings• One company in each category wins – low probability of winning• In most cases winning recognition / award basis as primary purpose• Very few people involved in the exercise• In most cases no action taken based on feedback report• generally low/no linkage to cont. improvement efforts• limited integration with org. strategy/ objectives• Consequently, scores remain static over the years 23
  • 24. •Business excellence models- what is it, why•EFQM business excellence model details•EFQM traditional approach based on submission• The new integrated continual improvement approach•q-Maxim’s transformational approach•What next?•contacts, background of founder q q-Maxim 24
  • 25. New integrated continual improvementapproachfeatures • Roughly based on EFQM’s recognized for excellence (R4E stars) award scheme • Facilitated workshop assessment - no submission • Tight integration with business objectives and cont. improvement • Pre-assessment Implement Strategic quality improvement initiatives before award assessment • Emphasis on Continual improvement rather than winning (flow chart next slide) 25
  • 26. New integrated continual improvementapproachflowchart EFQM workshop Discuss business. context, Understand EFQM model, Do Gap analysis To BE RADAR Results Approaches Objectives,CSF Start strategic Deployment Strategy workshops KPI, Initiatives theme projects Assessment review etc Possible Initiatives Finalize projects based on filtering criteria Project charters Periodic Strategy Finished Periodic project reviews Projects outputs Status reviews EFQM R4E stars EFQM stars rating award application, Completed projects improvement suggestions assessment 26 EVENT / ACTIVITY LEGEND Output / Information
  • 27. New integrated continual improvementapproachsome more detail • Steps in detail – STAGE: A – STAGE: B – STAGE: C – STAGE: D – STAGE: E (details in next 7 slides) 27
  • 28. New integrated continual improvementapproachdetails -stage A: Pre-assessment • Pre-assessment by approved assessors / consultants • Preparation by documents studying , interviews (3-4 days) • Facilitated management workshop assessment with top management (1-2 days) • Agenda: refresher on Business excellence / RADAR, org context, gaps, excellence score 28
  • 29. New integrated continual improvementapproachdetails -stage A: Pre-assessment • Agree on high level strategic theme projects – e.g. management system, process management framework • Suitable team structure • Output Pro-forma : As Is state, To Be state, gaps, list of initiatives (next slide) • Get sponsor Agreement 29
  • 30. New integrated continual improvement approach details -stage A: Pre-assessment Typical pro-forma of the high level project Organizational values are PLANNED, MANAGED AND IMPROVED USING RADAR AS IS/TO BE* (* delete as appropriate) Organizational values are developed………….Activity andPurpose:RADAR RADAR ELEMENT OWNERSHIPATTRIBUTEResults(trended overtime)ApproachDeploymentAssessmentand Review 30
  • 31. New integrated approachstage C: project prioritization • Compile all initiatives companywide • Merge similar ones (e.g. by affinity diagram) • Prioritize as per filtering criteria (examples) • Linkage to strategic goals • Relation to key business processes • Time needed to complete • Resources needed, available • Payback period • Impact on EFQM excellence score • Compile a single org. wide cont. improvement projects list mapped to EFQM model (next slide) 32
  • 32. New integrated continual improvementapproachdetails- stage B : initiatives mapped to EFQM modelexample Enablers Results People Processes , People results Leadership Key results products & Investors in Investors in services people people Strategy Customer results Visioning B Score card B Score card CRM ISO 9001 B Score card Partnerships ISO 14001 Performance & Resources Society results ISO 9001 Lean Dash boards Investors in ISO 9001 Six Sigma ISO 14001 Six Sigma people ERP Kaizen CSR Innovation and Learning © q-Maxim 2012
  • 33. New integrated approachdetails- stage D: Project management • Suitable project management structure • Train people: e.g. EFQM, project management, Quality tools, BSc, domain related trg. etc • Each team has a charter: Business Case, Opportunity Statement, Business Impact, Goal Statement: Success criteria, Project Scope- Boundaries, project plan / milestones, team constitution • Dashboard, individual project tracker (next slide) for monitoring project status • Mechanism to Assist laggards 35
  • 34. New integrated cont. improvement approachdetails -stage D: project tracker Date: Progress Status Progress Track (vs. Plan) Team Lead: Planne % Complete d Team Members: On Target G Behind, can catch up Y Behind, resource or scope change needed R Accomplishments Since Last Update Actions/Activities Planned for Next Month Key Issues Planned Actions to Resolve Issues Need Help? 
  • 35. New integrated cont. improvement approachdetails -stage E: final assessment • Workshop based assessment • Done by approved panel of assessors • two step process : 1. Data compilation, interviews 2. Facilitated management workshop assessment • Output : Score in each area, stars rating (optional), improvement notes 37
  • 36. New integrated cont. improvementapproachadvantages / benefits • Top management involvement & Involvement of People at all stages • No writing of time consuming submission document • Holistic continual improvement approach incorporating strategy, business objectives, EFQM model and EFQM fundamental concepts • Business excellence incorporated in daily working 38
  • 37. New integrated cont. improvementapproachadvantages / benefits • Emphasis on improvement rather than winning award • Can also be used for business transformation • Internationally recognized R4E stars rating (optional) • Brand building • Implemented in several companies 39
  • 38. New integrated cont. improvement approachadvantages / benefits • New concept - convincing hurdles • Top management hands on involvement is a must at least in initial stages • Significant resource requirements in terms of time, finance, training, software, etc 40
  • 39. •Business excellence models- what is it, why•EFQM business excellence model details•EFQM traditional approach based on submission• The new integrated continual improvement approach•q-Maxim’s transformational approach•What next?•contacts, background of founder q q-Maxim 41
  • 40. q-Maxim’s transformational approachoverview • The EFQM integrated continual improvement approach explained in the previous slides also forms the basis for q-Maxim’s 2 stage transformational approach (flow chart in next slide ) 42
  • 41. q-Maxin’s2 stage transformational framework Discuss with Study Assessment & people at all gap analysis information levels, look at based on evidence q-Maxim’s Begin individual proprietary initiatives e.g. Methodology Taguchi DOE for based on EFEM yield & Lean improvement Discuss, Prioritize HOA Report : OFI based 1. Strong pointsOrganization wide OFI list on set 2. OFI, suggestions id#, effort estimate, responsibility criteria resources, timelines confidential 43
  • 42. •Business excellence models- what is it, why•EFQM business excellence model details•EFQM traditional approach based on submission• The new integrated continual improvement approach•q-Maxim’s transformational approach•What next?•contacts, background of founder q-Maxim 44
  • 43. QUESTIONS?DOUBTS?WHAT NEXT?WOULD YOU LIKE TO DISCUSS FURTHER TO BEGINTRANSFORMATIONAL JOURNEY?CONTACT US FOR DETAILS(DETAILS NEXT PAGE) 45
  • 44. Contacts:Need clarifications OR more detailed information OR preliminary freeassessment OR run similar program in your company? q-Maxim Jagadish C.A. (Rao) (profile next slide) Founder, President jagadish.chandra@qmaxim.com qmaxim001@gmail.com +91 9538328704 +91 80 2693 1804 Visit us at : qmaxim.in blog: qmaxim.wordpress.comNote : Contents of this presentation, concepts, data, style are proprietary & confidential in nature and mustnot be shared with third parties
  • 45. Profile of Jagadish C.A., Founder of q-Maxim• B.Tech (Metallurgical Engg., NIT-K,Surathkal, India, 1st class distinction)• ASQ (American society for quality) certified Six sigma Black belt• ASQ certified Manager of Org. Excellence/ Quality• Certified EFQM assessor extensive experience assessing companies, fashioning transformational roadmap & implementing EFQM model• Juran QI facilitator, Cert. adv. Industrial experimentation, Analytics• ISO 9001:2008,14001,QS-9000 (TS 16949) lead auditor• ~30 years experience in Manufacturing and transactional fields, 5.5 years as management consultant• Rich experience in Quality, process management, R +D, Technology, Cost reduction, Management consultancy. Extensive experience in using advanced methodologies for problem solving and optimization• Extensive exposure/ knowledge of heavy process oriented manufacturing – Aluminium cast house, Steel, Welding, casting, foundry, Metallurgy, etc• Widely travelled – India, north America, Europe, M.E. 47