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BUSINESS EXCELLENCE

BUSINESS EXCELLENCE. - using the European Foundation for Quality Management (EFQM) self-assessment process. 1940’s & 50’s heavily inspection oriented first quality system standards Demming - SPC & Quality Award 1960’s & 70’s SPC tried, but rarely maintained

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BUSINESS EXCELLENCE

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  1. BUSINESS EXCELLENCE - using the European Foundation for Quality Management (EFQM) self-assessment process © 2002 Systex Services

  2. 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 Background? FROM INSPECTION TO ‘BUSINESS EXCELLENCE’ © 2002 Systex Services

  3. Policy and strategy (80) Leadership (100) Quality system and processes (140) People satisfaction (90) Business results (150) People management (90) Customer satisfaction (200) Resources (90) Impact on society (60) Enablers Results 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: ALL BUSINESS AREAS -- RESULTS ORIENTED © 2002 Systex Services

  4. 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 © 2002 Systex Services

  5. Repeat process annually Business Excellence Process Conduct Self Assessment Review analysis of results Select areas for improvement Identify specific actions Review effect on results Monitor progress of actions © 2002 Systex Services

  6. 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 © 2002 Systex Services

  7. Assessment Criteria • Nine sections • ‘Results’: • Customer Satisfaction • People Satisfaction • Impact on Society • Business Results • ‘Enablers’: • Leadership • Strategy & Planning • People Management • Resources • Processes © 2002 Systex Services

  8. Scoring Criteria • D - Not started • C - Some progress • B - Considerable progress • A - Fully achieved © 2002 Systex Services

  9. Self-assessment & Action Plan Agenda © 2002 Systex Services

  10. 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. Example © 2002 Systex Services

  11. 2. Policy & Strategy Question Example 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 DECIDE: ‘STRENGTHS’ ‘OPPORTUNITIES’ SCORE (A, B, C or D) © 2002 Systex Services

  12. Scoring © 2002 Systex Services

  13. Develop Action Plan • Identify major opportunities • Prioritise / agree key actions • Identify responsibilities / teams • Develop action plan / schedule • Review progress routinely © 2002 Systex Services

  14. 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 EARLY OPPORTUNITIES OFFER FAST RETURNS © 2002 Systex Services

  15. What Are The Benefits? • 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 © 2002 Systex Services

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