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Key Learning:

Total Quality Management

European Foundation for Quality Management

Malcolm Baldrige Quality Award

Deming Prize 2

Total Quality (TQ) (1)

A people-focused management system that:

• aims at continual increase in customer

satisfaction at continually lower real cost;

• aims to meet customer’s requirements at

the expected time and the right place, and

• aims to obey applicable regulations.

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Total Quality (2)

TQ approach refers to the following:

• It works horizontally across functions

and departments;

•It involves all employees, top to bottom;

•It extends backward and forward to include the

supply chain and the customer chain;

•It stresses learning and adaptation to continual

change as keys to organizational success

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Total Quality Management

Total quality management or TQM is an integrative philosophy of management for continuously improving the quality of products/ services and processes

TQM is based on the premise that the quality of products and processes is the responsibility of everyone involved with the creation or consumption of the products or services offered by an organization, requiring the involvement of management, workforce, suppliers, and customers, to meet or exceed customer expectations.

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EFQM Excellence Model (1)

The EFQM Excellence Model was

introduced at the beginning of 1992 as the

framework for organizational self-assessment

and as the basis for judging entrants to the

European Quality Award

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EFQM Excellence Model (2)

A tool for Self-Assessment

A way to Benchmark with

other organisations

A guide to identify areas for Improvement

The basis for a common Vocabulary

and a way of thinking

A Structure for the organisation's

management system

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Concepts of Excellence (1)

Achieving Balanced Results

Excellent organisations meet their Mission and

progress towards their Vision through planning

and achieving a balanced set of results that

meet both the short and long term needs of their

stakeholders and, where relevant, exceed them.

Focus is on developing the key set of results

required to monitor progress against the

vision, mission and strategy, enabling leaders

to make effective and timely decisions.

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Concepts of Excellence (2)

Leading with Vision, Inspiration and Integrity

Excellent organisations have leaders who

shape the future and make it happen, acting

as role models for its values and ethics.

The focus is on the ability of leaders to adapt,

react and gain the commitment of all

stakeholders to ensure the ongoing success

of the organisation. 9

Concepts of Excellence (3)

Adding Value for Customers

Excellent organisations know that customers

are their primary reason for being and strive

to innovate and create value for them by

understanding and anticipating their needs

and expectations.

Focus is on clearly defining and

communicating the value proposition and

actively engaging customers in the product

and service design processes. 10

Concepts of Excellence (4)

Managing by Processes

Excellent organisations are managed through

structured and strategically aligned processes

using fact-based decision making to create

balanced and sustained results.

The focus is on how the processes are

designed to deliver the strategy, with end to

end management beyond the “classic”

boundaries of the organisation. 11

Concepts of Excellence (5)

Succeeding through People

Excellent organisations value their people and

create a culture of empowerment for the

balanced achievement of organisational and

personal goals.

The focus is on creating a balance between

the strategic needs of the organisation and

the personal expectations and aspirations

of the people to gain their commitment and

engagement. 12

Concepts of Excellence (6)

Nurturing Creativity and Innovation

Excellent organisations generate increased

value and levels of performance through

continual and systematic innovation by

harnessing the creativity of their stakeholders.

The concept recognises the need to develop

and engage with networks and the need to

engage all stakeholders as potential sources

of creativity and innovation. 13

Concepts of Excellence (7)

Building Parnerships

Excellent organisations seek, develop and

maintain trusting relationships with various

partners to ensure mutual success (with

customers, society, key suppliers, educational

bodies or Non-Governmental Organisations).

The concept includes partnerships beyond

the supply chain and recognises that these

should be based on sustainable mutual

benefits to succeed. 14

Concepts of Excellence (8)

Taking Responsibility for a Sustainable Future

Excellent organisations embed within their culture

an ethical mindset, clear values and the highest

standards for organisational behaviour, all of

which enable them to strive for economic, social

and ecological sustainability.

The concept focuses on actively taking

responsibility for the organisation’s

conduct and activities and managing it’s

impact on the wider community.

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Levels of Excellence (1)

Committed to Excellence, which

demonstrates that an organization has

started out and passed the first hurdle

of commitment

The emphasis is on helping organizations

understand their current level of performance

and to establish improvement priorities 16

Levels of Excellence (2)

Recognized for Excellence, which indicates

a well-managed organization on the way to

advanced organizational excellence

This level offers applicants the benefits of a

structured approach to identify organizational

strengths and areas for improvement

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Levels of Excellence (3)

European Quality Award Level, at Finalist, Prize winner or Award Winner itself, which designates organizations that aspire to achieve European best or world-class levels

Europe’s most prestigious Award for organizational excellence

It is the top Level of the EFQM Levels of Excellence

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RADAR

The management methodology, which defines the

learning cycle necessary for effective change

management, and provides a scoring framework

for evaluating the consistency between

organisational activities and objectives.

The acronym ‘RADAR’ stands for: Results,

Approach, Deployment, Assessment and Refinement.

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EFQM Excellence Model Criteria

ENABLERS RESULTS

People People Results

10% 10%

Leadership Strategy Processes,

Customer

Products, Key Results

10% 10% Results

Services

15%

15%

10%

Partnerships Society Results

&Resources 10%

10%

NIG EARNL NDA OIN T NINOVA

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1. Leadership

Develop the mission, vision, values and ethics

and act as role models

Define, monitor, review and drive the improvement

of the organisation’s management system and

performance.

Engage with external stakeholders

Reinforce a culture of excellence with

the organisation’s people

Ensure that the organisation is flexible and

manages change effectively 21

2. Strategy

Is based on understanding the needs and expectations of both stakeholders and the external environment

Is based on understanding internal performance and capabilities

Strategy and supporting policies are developed, reviewed and updated to ensure economic, societal and ecological sustainability

Strategy and supporting policies are communicated and deployed through plans, processes and objectives

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3. People

People plans support the organisation’s strategy

People’s knowledge and capabilities are developed

People are aligned, involved and empowered

People communicate effectively throughout

the organisation

People are rewarded, recognised and cared for

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4. Partnerships and Resources

Partners and suppliers are managed for sustainable benefit

Finances are managed to secure sustained success

Buildings, equipment, materials and natural resources are managed in a sustainable way

Technology is managed to support the delivery of strategy

Information and knowledge are managed to support effective decision making and to build the organisational capability

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5. Processes, Products, Services

Processes are designed and managed to

optimise stakeholder value

Products and Services are developed to

create optimum value for customers

Products and Services are effectively promoted

and marketed

Products and Services are produced, delivered

and managed

Customer relationships are managed and enhanced

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6. Customer Results

Comprehensively measure and achieve

outstanding results with respect to

organization’s customers

Perception Measures

Reputation and image

Product and service value

Product and service delivery

Customer service, relationship and support

Customer loyalty and engagement 26

6. Customer Results (continued)

Comprehensively measure and achieve

outstanding results with respect to

organization’s customers

Performance Indicators

Products and services delivery

Customer service, relationships and support

Complaints and compliments

External recognition

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7. People Results

Comprehensively measure and achieve

outstanding results with respect to

organization’s people

Perception Measures

.....................................

Performance Indicators

..................................

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8. Society Results

Comprehensively measure and

achieveoutstanding results with respect

to society

Perception Measures

.....................................

Performance Indicators

..................................

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9. Key Results

Comprehensively measure and achieve

outstanding results with respect to the key

elements of organization’s policy and strategy

Key Performance Outcomes

...............................................

Key Performance Indicators

............................................... 30

2012 EFQM Excellence Awards (listed alphabetically)

BMW Plant Regensburg EFQM Prize Winner

Bosch Tecnologie Diesel e Sistemi Frenanti S.p.A. EFQM Prize

Winner

Coca-Cola Icecek A.S.Ankara Plant EFQM Prize Winner

JSC “Medicina” EFQM Prize Winner

pom+Consulting EFQM Prize Winner AG

Robert Bosch GmbH Bamberg Plant EFQM Excellence Award

& Prize Winner

VAMED-KMB EFQM Prize Winner

B. Braun Avitum Hungary EFQM Finalist

Dzierzoniow Town Hall EFQM Finalist

Hospital Galdakao-Usansolo Ospitalea (Osakidetza) EFQM

Finalist

Mutualia EFQM Finalist

Nilufer Municipality EFQM Finalist

Wakefield and District Housing(WDH) EFQM Finalist 31

National Quality Award

Juran Quality Award - http://www.fundatia-juran.ro/

2001: SC OLTCHIM SA Rm Vâlcea, SC Contor ZENNER România SA

2002: SC CASIAL SA Deva 2003: Societatea Comercială Filiala de Distribuţie

şi Furnizare a Energiei Electrice –ELECTRICA Banat SA; SC ROMAQUA GROUP SA Borsec, SC SEARCH CORPORATION SRL

2004: BCR

2005: INSTITUTUL NATIONAL DE MEDICINA AERONAUTICA SI SPATIALA (INMAS)

2006:CN TRANSELECTRICA SA - Bucuresti

2007 & 2008: no winners 32

International Quality Awards

The Malcolm Baldridge National Quality

Award, 1987, USA

The Deming Prize, 1951, Japan

Canadian Awards for Business Excellence

Australian Business Excellence Award, 1988

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Malcolm Baldridge National Quality

Award – Criteria

Leadership

Strategic planning

Customer focus

Measurement, analysis, and knowledge

management

Workforce focus

Operations focus

Results

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Malcolm Baldridge National Quality

Award – Sectors

Education

Health care

Manufacturing

Non-profit/ Government

Service

Small business 35

Deming Prize – Criteria

Management policies and their deployment regarding quality management

New product development and/or work process innovation

Maintenance and improvement of product and operational qualities

Establishment of systems for managing quality, quantity, delivery, costs, safety, environment, etc

Collection and analysis of quality information and utilization of information technology

Human resources development 36