Transcript EFQM - INFOBALT

BUSINESS
EXCELLENCE
- using the European Foundation for
Quality Management (EFQM) selfassessment process
© 2002 Systex Services
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Background?
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1940’s & 50’s
– heavily inspection oriented
– first quality system standards
– Demming - SPC & Quality Award
•
1960’s & 70’s
– SPC tried, but rarely maintained
– National Quality Standards
developed
– Quality Circles copied in West
– Dr Juran - ‘Improvement Process’
– ‘Total Quality Management’
heralded
•
1980’s
– Ford Q101 promotes SPC
– ISO 9000 international standards
– Baldridge Quality Award in USA
– National Quality Awards launched
1990’s
– SPC easier with software
– European Quality Award launched
– MBNQA & EFQM criteria offered
for self assessment development:
• ‘best practices’ criteria
• comparative process for all
FROM INSPECTION TO ‘BUSINESS EXCELLENCE’
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What is Business Excellence?
• A self assessment process for selecting the right strategies
to achieve optimum business performance with the
minimum of energy and cost
• Uses the nine EFQM Business Excellence Model criteria
and 1000 point allocation:
Policy and
strategy (80)
Leadership
(100)
People
management
(90)
People
satisfaction (90)
Quality system
and processes
(140)
Customer
satisfaction (200)
Resources
(90)
Business results
(150)
Impact on
society (60)
Enablers
Results
ALL BUSINESS AREAS -- RESULTS ORIENTED
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Who Needs Business Excellence?
• Progressive companies desiring to:
– define strategies beyond ISO 9000
– identify strengths / opportunities
– focus priorities
– involve all areas of the business
– establish common vision / goal for ‘best practices’
– drive continuous improvement
– improve business results
PROCESS FOR IMPROVING RESULTS
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Business Excellence Process
Conduct Self
Assessment
Review
analysis of
results
Select areas
for
improvement
Identify
specific
actions
Repeat
process
annually
Review effect
on results
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Monitor
progress of
actions
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Assessment Approach
• A total of 50 questions to draw out the criteria
• Facilitator explains questions and the applicable criteria
• Assessors individually decide for each question:
– business ‘strengths’
– business ‘opportunities for improvement’
– score
• Assessors each read out ‘strengths’ & ‘opportunities’
– but not their score at this point
• Assessors show their scores simultaneously
• Team discuss differences and reach consensus
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Assessment Criteria
• Nine sections
• ‘Enablers’:
– Leadership
– Strategy &
Planning
– People
Management
– Resources
– Processes
• ‘Results’:
– Customer
Satisfaction
– People Satisfaction
– Impact on Society
– Business Results
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Scoring Criteria
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D - Not started
C - Some progress
B - Considerable progress
A - Fully achieved
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Self-assessment & Action Plan Agenda
TIME
1:30
2:00
2:30
3:00
3:30
4:00
4:30
5:00
5:30
6:00
DAY 1
ACTIVITY
PREPARATION & TRAINING
TEAM PREVIEW
1. LEADERSHIP
2. PEOPLE MANAGEMENT
BREAK
3. STRATEGY & PLANNING
4. RESOURCE MANAGEMENT
5. PROCESSES
6. CUSTOMER SATISFACTION
CLOSE
DAY 2
TIME
9:00
9:30
10:00
10:30
11:00
11:30
12:00
1:00
2:00
ACTIVITY
7. PEOPLE SATISFACTION
8. IMPACT ON SOCIETY
9. BUSINESS RESULTS
BREAK/SCORING ANALYSIS
FEEDBACK OF RESULTS
PRIORITISATION
LUNCH
ACTION PLANNING
CLOSE
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2. Policy & Strategy Overview
• This section examines how the organisation incorporates
its aims and quality values into its overall strategy and
planning activity.
• It assess whether strategy and planning are based on
reliable facts and data and whether the top level plan is
matched by realistic and achievable plans at the
operational level.
• It also assesses whether the potential for change depends
on more than just the inspiration of the owner/CEO.
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2. Policy & Strategy Question
a) Are the strategic aims
and values (perhaps in
a Mission Statement)
fully supported by
your policies, plans,
goals and allocation of
resources?
• Examples:
– quality policy
– environmental policy
– recruitment policy
– training policy
– development policy
– business plan
– marketing plan
– manpower plan
– plant & equipment plan
– sales goals
– production goals
– utilisation goals
© 2002 Systex Services
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Scoring
Business results
Impact on society
Customer satisfaction
People satisfaction
Score
Available
Processes
Resource
Policy & strategy
People management
Leadership
0
50
100
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150
200
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Develop Action Plan
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Identify major opportunities
Prioritise / agree key actions
Identify responsibilities / teams
Develop action plan / schedule
Review progress routinely
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How Long Will It Take?
• An ongoing process over many
years
• Typical first time scores 250 ~
350 (ISO 9000 level)
• World class levels >750
(Quality Award winners)
• At least 5 years to get from 300
to 750 at 20% annual
improvement rate
• Focused action enables more
dramatic early gains
800
700
600
500
400
300
200
300
100
0
Year 1
800
700
600
500
400
300
200
300
100
0
Year 1
360
Year 2
430
Year 2
432
Year 3
530
Year 3
518
622
746
Year 4
Year 5
Year 6
620
690
746
Year 4
Year 5
Year 6
EARLY OPPORTUNITIES OFFER FAST RETURNS
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What Are The Benefits?
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Clear strategy
Common objectives
Focused areas for improvement
Measures of progress
Knowledge and use of ‘best practices’
Proven formula for world class performance
Culture of improvement beyond control
Improved business results
FOCUS -- BEST PRACTICES -- RESULTS
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