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EFQM& Lean: Together in Harmony


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EFQM& Lean: Together in Harmony

  1. 1. Lean and the EFQM Excellence Model are 2 complementary tools. In the followingpresentation you’ll find a description of both tools and an overview of how they worktogether.
  2. 2.  Return on investment1. Shareholders  Optimise profitability  Sustainable financial growth  Value-adding products & services2. Customers  Excellent service Clearly defined long-term strategy The right Partners & Suppliers Robust internal processes Leaders who inspire trust  Opportunities to develop & grow3. People  Work / life balance  Pride in Organisation  Brand reputation4. Society  Ethical behaviour  Transparent communication    
  3. 3. In sum, we work for all these stakeholders. Of course, we can’t deliver everything thateveryone wants all at the time. We need a dialogue, we need to prioritise, we need tocontinuously evolve. The EFQM Excellence Model is a framework organisationsimplement to drive continuous improvement, bringing together all the components ofyour management system (i.e. leadership, HR, Sustainability and customer results).Through assessments against the EFQM Model, you focus on what really matters, onwhat really is driving results. You will identify opportunities to grow and you’ll makesure to make the best strategic decisions. Finally, our framework is holistic. The Modelworks as an embralla that covers a number of tools (such as ISO, balancedscorecard, etc.) to ensure that all initiatives don’t operate on a stand-alone basis, butrather interlinked or parallel towards the same goal.
  4. 4. Lean is widely used as an approach for improving process performance and enhancingthe value added to the customer and other stakeholders, not just in manufacturingbut increasingly in the services sector.Lean is a practice that considers the expenditure of resources for any goal other thanthe creation of value for the end customer to be wasteful, and thus a target forelimination. Working from the perspective of the customer who consumes a productor service, "value" is defined as any action or process that a customer would be willingto pay for.
  5. 5. The EFQM Model and Lean have a common background in Total Quality Management: People centric: Not only are customers a primary consideration, but everyone connected with the organisation is a part of the equation. Long term view: TQM is a long term process. It can take up to 5 years to fully convert a company to TQM methodology. Every year the mission statement is reviewed and revised. Customer focus: An organisation needs to satisfy external but also internal customer needs (providing information, quickly responding to questions, creating surveys, etc.) Performance oriented: Focus on proactive problem solving and continuous improvement. Continuous improvement: TQM is mainly concerned with continuous improvement in all work, from high level strategic planning and decision- making, to detailed execution of work elements on the shop floor.
  6. 6. Where the EFQM Excellence Model is used to determine a company’s strategicdirection or to assess the success of the current strategy implementation; Lean isused to structure the development and the delivery of the improvements highlightedwithin an EFQM assessment. Lean works best with direction and vision, somethingthat the EFQM model helps to provide. Identifying performance gaps & EFQM opportunities to improve Lean Structuring the delivery of improvements
  7. 7. Cause EffectLeadership People Processes, People Results Key Results Products& Understanding it’s Services Aligning peopleTo be agile through about people: measures andchanges engagement and lean/strategic goals empowerment Balance short- and long-term resultsManagement’ssupport to people’s Strategy Customer Resultsproactivity (middle Aligning lean goalsmanagement’s and to strategic Customer oriented Business orientedsupervisors buy in) objectives improvement improvement measures measures Business focus Not limiting toCommunication and kaizen events nor toChange management lean six sigma one- Society Results Partnership & of-a-time projects ResourcesLean leadership/management Learn Improve Change Top management’s commitment
  8. 8. Avenue des Olympiades, 21140 Brussels, BelgiumT: +32 2 775 3511@: info@efqm.orgwww.efqm.orgWe’d like to thank Prof. Vittorio Cesarotti, from the Universita degli Studi diRoma, for his valuable contributions to this document.
  9. 9. EFQM is committed to help organisations drive improvement through the use of theEFQM Excellence Model, a comprehensive management framework used by over30 000 organisations in Europe. For the last 20 years, we manage the development ofthis Model, incorporating the experiences and learning from these organisations toensure it reflects reality.To help you implement our Model, we provide training, assessment tools andrecognition. But our real talent comes from gathering good practices and integratingthose within our portfolio. EFQM, a not-for-profit membership Foundation, aims toshare what works, through case studies, online seminars, working groups, conferencesand thematic events. We nurture a network of world-class organisations and theirleaders who share our passion for business excellence.We believe that the EFQM Model is a common framework that helps us all to improveour businesses. Sharing our member’s enthusiasm, their motivation and the resultsthey achieve; that is what we work for at EFQM.
  10. 10. The EFQM User GuideUsing Lean within the EFQMFrameworkAvailable free for members onour Knowledge Base.