1. The fundamental concepts of
Business excellence...

2. Leadership
Excellence is visionary and inspirational leadership, coupled
with clear directions & constancy of purpose.

3. Continuous improvement & Innovation
Excellence is challenging the status quo and effecting change by
using learning to create innovation and improvement opportunities.

4. Customer Focus
Excellence is creating sustainable customer value and exceeding
their expectations.

5. Results Orientation
Excellence is achieving results that delight all
the organization's stakeholders.

6. Inspiring high performance
Excellence is maximizing the contribution of employees
through their development and involvement.

7. Partnership Development
Excellence is developing and maintaining value-adding
partnerships with all the stakeholders.

8. Measures
of
business
excellence

9. Measures of
business
excellence
The organization must measure all the functions through
quantifiable measures of excellence. To facilitate this assessment,
sample measures of excellence for various functions are given on
the following slides.

10. 1. Marketing
Product Strategy
• Sales growth rate
• Market share
• Relative market share
• Breadth of product lines & market
coverage
• Rate of successful new product
introductions
Distribution strategy
• Distribution and sales force
productivity
• Distribution cost per channel
• Customer service levels

11. Marketing…contd
Price strategy
• Price sensitivity
• Pricing of marketing mix
Promotion and advertising
strategy
• Brand acceptance
• Product segmentation
• Marketing intelligence - Ability
to anticipate customer needs
and detect changes in the
marketing trends

12. Marketing…contd
Others
• Accuracy of forecast
assumptions.
• Number of incorrect order
entries.
• Overstocked field supplies.
• Contract errors.
• Late deliveries.
• Customer complaints.
• Warranty cost as a
percentage of sales.

13. 2. Purchase
• Premium freight cost/ demurrage charges.
• Down - time because of parts shortages.
• Number of Off specification parts used to keep
line going.
• Cycle time from start of purchase request until
items in house.
• Excess inventory.
• Percentage of purchased material rejected on
receipt.

14. 3. Manufacturing
• Yield per ton of raw materials.
• Percentage of parts scrapped.
• Percentage of parts reworked.
• Percentage of parts accepted on concession.
• Percentage of final product graded as seconds.
• Production per man / machine
• Percent of production capacity in use
• Average setup time

15. 4. Product engineering
• Number of engineering changes per
document.
• Number of errors found during design review.
• Number of errors found in design evaluation
test.
• Percentage of time over- run compared to
planned time for development.
• Percentage of cost over - run over estimated
cost of development.
• Number of tooling redesign after trial
production.

16. 5. Quality Assurance
• Percentage of lots rejected due to
errors.
• Percentage of products having defects
detected by customers.
• Number of engineering changes that
should have been detected in design
review.
• Errors in inspection / test reports.
• Cycle time to get corrective actions.
• Percentage of appraisal cost compared
to production cost.

17. 6. Product reliability
• Mean time to failure
• Failure rate
• Probability of failure occurrence
during given time interval
• Probability of failure non-
occurrence during given time
interval
• Mean life time
• Mean time to first generate
overhaul
• Mean time to repair

18. 7. Accounting
• Percentage of late payments.
• Time to respond to customer
request for information.
• Billing errors.
• Incorrect accounting entries.
• Payroll errors.
• Errors in cost estimates.

19. 8. Financial
measures
• Cost of quality as a percentage of sales
• Profit before interest and financial
charges
• Profit before and after tax
• Growth in profits over last year
• Return on assets
• Return on capital employed
• Return on sales

20. 9. Employee related
• Employee satisfaction
• Awards presented
• Internal promotions
• Turnover
• Safety and health
• Suggestions received and
implemented