TQM BHel

Bharat Heavy Electricals Limited, PSBharat Heavy Electricals Limited, PS-- NR, NOIDANR, NOIDA

Business Excellence Management

1Basic Concepts of Excellence


Functions of management

• Retainment: To maintain levels ofRetainment: To maintain levels of performance already achieved

• Improvement (Incremental): Improve• Improvement (Incremental): Improve levels of performance achieved in the pastpast

• Breakthrough (Quantum jump): I ti i i tInnovation in improvement



Total Quality Management - Dimensions

Total : Balancing and Satisfyingneeds of all Stake Holders

Quality : Sustained Customer Focusy

Management: Continuous Improvementg pwith Fact and Data baseddecisions in a Planned &Systematic way


Systematic way


TQM - real meaning

• What we aspire to be• What we aspire to be

• What we have achieved

• What are the gaps

• What needs to be done



TQM - Means

Improvement

Improvements overImprovementImprovement

C iContinuous ImprovementTo achieve Excellence


To achieve Excellence


Improvement or Excellence of What?

¨ Customer Satisfaction

¨ People Satisfaction

¨ Business Resultsi i l

§ Non financial§ Financial§

Impact on Society¨



The Models



Recognition of Excellence

• Deming Prize (Japan); First prize:1951 • Malcolm Baldridge award (USA); First

award:1987• European Excellence award (Europe);

First award:1992First award:1992• CII-EXIM Award for Business Excellence

(India);Institutionalised:1994; First award:(India);Institutionalised:1994; First award: 1997(Hewlett Packard India)





EFQM Model for Business Excellence

3. People90 Points

ance7. People Results

90 Points

Enablers Results

2. Policy & Strategy80 Points

roce

sses

0 Po

ints

6. Customer Results200 Points

erfo

rmer

ma

Res

ults

0 Po

ints

eade

rshi

p0

Poin

ts

4.Partnerships andResources90 Points

5.Pr 14

0

8. Society Results60 Points 9.

Key

Pe R

150

1. L

e10

Enablers 500 points(50%)

Results 500 points(50%)

Innovation & Learning

Excellent Results with respect to Performance,Customers, People, and Society are achieved throughLeadership driving Policy & Strategy People


Leadership driving Policy & Strategy, People,Partnerships & Resources, and Processes.


EFQM Model - EnablersEnablers are Concerned with “HOW”Organisation achieves desired ‘Results’Organisation achieves desired ResultsInformation is required on :

Excellence of Approach (to enablers)

D l t (I l t ti ) fDeployment (Implementation) of Approach

Vertically through all LevelsVertically through all LevelsHorizontally through all Areas and Activities

Assessment & Review (Improvement) of


Assessment & Review (Improvement) of approach


EFQM Model - Results

Results are Concerned with “WHAT”the Organisation has Achieved and is Achieving

Data is required on :Organisation’s Actual PerformanceOrganisation’s Own TargetsPerformance of CompetitorsPerformance of External Organisations



Enablers: Structure of criteria1e1d

1c

1. Leadership

c1b

1ap

Areas to address/ BulletAreas to address/ Bullet points (suggestive)

5e5.

Processes5d5c5b5a


Processes


EFQM Model 2003 - The criterion partsQ pEnablers Criterion Parts1. Leadership 52. Policy & Strategy 43. People 54 Partnerships & Resources 54. Partnerships & Resources 5

5. Processes 5 24

Results 086 Customer Results 2

32

6. Customer Results 27. People Results 28. Society Results 2


8 Soc ety esu ts9. Key Performance Results 2


EnablersEnablers-- Criteria for Marking Criteria for Marking gg1. How Sound is the approach (Procedure/ Process) to address the Model requirement?

2. Is the Approach Implemented in all areas- product and functional areas?

3. Any Measures are there to see whether Approach is giving the desired Results?

4. Are Improvements being brought about in the Approach- or the working continues to be the same over th ?the years?

5.Are there any learnings from internal/ external failures d A l i f h i i


and successes. Any learnings from other organisations to improve the processes or products or services


ResultsResults-- Criteria for markingCriteria for markingTrends: Positive/ sustained good performanceperformance

Targets: achieved and are appropriateC i (BENCHMARKING) ithComparison (BENCHMARKING): with external organisations and compare well with “industry average” or “best in class”with industry average or best in classCauses: results are caused by approach

Indications that Negative Trends and thoseIndications that Negative Trends and those not meeting targets are understood



ResultsResults-- Criteria for markingCriteria for markingScope:

Extent to which the Results cover allrelevant areas of the Company (products,market, customers etc.)

Extent to which a full range of ResultsExtent to which a full range of Results,relevant to the criterion are presented

Results are appropriately segmented(product wise, market/ business sector,


employee cadre, etc)


What Can I Do as anWhat Can I Do as an Individual for Business

Excellence (TQM)



My Role:

Remember Vision, Mission and Values evolved at Corporate level- They should guide our thoughts andCorporate level- They should guide our thoughts and actions.

Get awareness on the Balanced Score Card of your yarea- It translates Vision and Mission into Objectives and defines targets for these.

Know CRITICAL SUCCESS FACTORS (CSFs) for the unit. They are prioritized factors to realize the long term objectives Work for improvement in Key processesobjectives. Work for improvement in Key processesand Measures for CSFs in your area.

5S- is the Foundation for Business Excellence; Keep


; pyour work place, machines and equipment clean

Fundamental Concepts of Excellence

EFQM Model for Business Excellence

3. People90 Points

ance7. People Results

90 Points

Enablers Results

2. Policy & Strategy80 Points

roce

sses

0 Po

ints

6. Customer Results200 Points

erfo

rmer

ma

Res

ults

0 Po

ints

eade

rshi

p0

Poin

ts

4.Partnerships andResources90 Points

5.Pr 14

0

8. Society Results60 Points 9.

Key

Pe R

150

1. L

e10

Enablers 500 points(50%)

Results 500 points(50%)

Innovation & Learning

Excellent Results with respect to Performance,Customers, People, and Society are achieved throughLeadership driving Policy & Strategy PeopleLeadership driving Policy & Strategy, People,Partnerships & Resources, and Processes.

Fundamental Concepts of ExcellenceExcellence

Results Orientation

Customer FocusCorporate SocialResponsibility

Leadership &Constancy of

PurposePartnership Development Purpose

People Development &

Development

Management by Processes and Facts

People Development &Involvement

Continuous Learning,There is no significance intended inthe order of the concepts The list g,

Innovation &Improvement

the order of the concepts. The listis not meant to be exhaustive andthey will change as excellentorganisations develop andimprove.


Results OrientationExcellence is achieving results that delight all the organisation's stakeholdersExcellence is achieving results that delight all the organisation s stakeholders.

Customer FocusExcellence is creating sustainable customer value.

Leadership and Constancy of PurposeExcellence is visionary and inspirational leadership, coupled with constancy of purpose.

Management by Processes and FactsExcellence is managing the organisation through a set of interdependent andinterrelated systems, processes and facts.

People Development and InvolvementExcellence is maximising the contribution of employees through their development and involvementand involvement.


Continuous Learning, Innovation and ImprovementExcellence is challenging the status quo and effecting change by utilising learning to create innovation and improvement opportunities.

Partnership DevelopmentExcellence is developing and maintaining value-adding partnerships.

Corporate Social ResponsibilityExcellence is exceeding the minimum regulatory framework in which the organisation operates and to strive to understand and respond to the expectations of their stakeholdersstakeholders


Results Orientation

The ConceptExcellence is achieving results that delight all the organisation’s stakeholdersstakeholders.

How the Concept is put into practiceIn the fast changing environment that is today’s world, Excellent organisations are agile flexible and responsive as stakeholder needsorganisations are agile, flexible and responsive as stakeholder needsand expectations change, often frequently and quickly. Excellent organisations measure and anticipate the needs and expectations oftheir stakeholders, monitor their experiences and perceptions, and monitor and review the performance of other organisationsmonitor and review the performance of other organisations. Information is gathered from both current and future stakeholders.

This information is used in order to set, implement and review their policies strategies objectives targets measures and plans for the short

P & S to achieve Results

policies, strategies, objectives, targets, measures and plans, for the short, medium and longer term. The information gathered also helps the organisation to develop and achieve a balanced set of stakeholder results.


Customer Focus

The ConceptExcellence is creating sustainable customer value.

How the Concept is put into practiceExcellent organisations know and intimately understand their customers. They understand that customers are the final arbiters of product and service quality. They also understand that customer loyalty, retention and q y y y y,market share gain is maximised through a clear focus on the needs and expectations of both existing and potential customers. They are responsive to those customers’ present needs and expectations. Where appropriate they segment their customers to improve the effectiveness of pp p y g ptheir response. They monitor competitor activity and understand their competitive advantage. They effectively anticipate what customers’ future needs and expectations will be and act now in order to meet and where possible exceed them. They monitor and review the experiences and p y pperceptions of their customers and where things go wrong they respond quickly and effectively. They build and maintain excellent relationships with all their customers.


Leadership and Constancy of Purpose

The ConceptExcellence is visionary and inspirational leadership, coupled with constancy of purpose.

How the Concept is put into practiceExcellent organisations have leaders who set and communicate a clear direction for their organisation. In doing so they unite and motivate other leaders to inspire their people. They establish values, ethics, culture and a governance structure for the organisation that provides a unique identity and attractiveness to stakeholders. Leaders at all levels within these organisations constantly drive and inspire others towards excellence and in so doing display both role model behaviour and performance. They lead by example, recognising their stakeholders and working with them on joint improvement activity. During times of turbulence they display a constancy of purpose and steadiness that inspires the confidence and commitment of their stakeholders. At the same time they demonstrate the capability to adapt and realign the direction of their organisation in the light of a fast moving and constantly changing external environment, and in so doing carry their people with them.


Management by Processes and Facts

The ConceptExcellence is managing the organisation through a set of interdependent and interrelated systems, processes and facts.

How the Concept is put into practiceExcellent organisations have an effective management system based upon, and designed to deliver, the needs and expectations of all stakeholders. The systematic implementation of the policies, strategies, objectives and plans of the organisation are enabled and assured through a clear and integrated set of processes. These processes are effectively deployed, managed and improved on a day to-day basis.Decisions are based on factually reliable information relating to current and projected performance, process and systems capability, stakeholder needs, expectations and experiences, and the performance of other organisations, including, where appropriate, that of competitors. Risks are identified based on sound performance measures and effectively managed. The organisation is governed in a highly professional manner, meeting and exceeding all corporate external requirements. Appropriate prevention measures are identified and implemented inspiring and maintaining high levels of confidence with stakeholders.


People Development and Involvement

The ConceptExcellence is maximising the contribution of employees through their development and involvementdevelopment and involvement.

How the Concept is put into practiceExcellent organisations identify and understand the competencies needed, both now and in the future in order to implement the organisation’s policies strategies objectives andin the future, in order to implement the organisation s policies, strategies, objectives and plans. They recruit and develop their people to match these competencies and actively and positively support them throughout. Personal development is promoted and supportedallowing people to realise and unlock their full potential. They prepare people to meetand adapt to the changes required of them both in terms of operational changes andand adapt to the changes required of them both in terms of operational changes andpersonal capabilities. They recognise the increasing importance of the intellectual capital of their people and use their knowledge for the benefit of the organisation. They seek to care, reward and recognise their people in a way that builds their commitment and encourages their loyalty to the organisation They maximise the potential and the activeencourages their loyalty to the organisation. They maximise the potential and the active involvement of their people through shared values and a culture of trust, openness and empowerment. They utilise that involvement to generate and implement ideas for improvement.


Continuous Learning, Innovation and Improvement

The ConceptExcellence is challenging the status quo and effecting change by utilising learning to create innovation and improvement opportunities.g

How the Concept is put into practiceExcellent organisations continuously learn, both from their own activities and performance and from that of others. They rigorously benchmark, both internallyperformance and from that of others. They rigorously benchmark, both internally and externally. They capture and share the knowledge of their people in order to maximise learning across and within the organisation. There is an openness to accept and use ideas from all stakeholders. People are encouraged to look beyond today and today’s capabilities. They are careful to guard their intellectualbeyond today and today s capabilities. They are careful to guard their intellectual property and to exploit it for commercial gain, where appropriate. Their people constantly challenge the status quo and seek opportunities for continuous innovation and improvement that add value.


Partnership DevelopmentPartnership Development

The ConceptExcellence is developing and maintaining value adding partnerships.How the Concept is put into practice

Excellent organisations recognise that in the constantly changing and increasingly demanding world of today success may depend on the partnerships they develop. g y y p p p y pThey seek out, and develop, partnerships with other organisations. These partnerships enable them to deliver enhanced value to their stakeholdersthrough optimising core competencies. These partnerships may be with customers, society, suppliers or even competitors and are based on clearly y pp p yidentified mutual benefit. Partners’ work together to achieve shared goals, supporting one another with expertise, resources and knowledge and build a sustainable relationship based on mutual trust, respect and openness.


Corporate Social Responsibility

The ConceptExcellence is exceeding the minimum regulatory framework in which the organisation operates and to strive to understand and respond to theexpectations of their stakeholders in societyexpectations of their stakeholders in society.

How the Concept is put into practiceExcellent organisations adopt a highly ethical approach by being transparent and

t bl t th i t k h ld f th i f iblaccountable to their stakeholders for their performance as a responsible organisation. They give consideration to, and actively promote, social responsibility and ecological sustainability both now and for the future. The organisation’s Corporate Social Responsibility is expressed in the values and i t t d ithi th i ti Th h d i l i t k h ldintegrated within the organisation. Through open and inclusive stakeholder engagement, they meet and exceed the expectations and regulations of the local and, where appropriate, the global community. As well as managing risk, they seek out and promote opportunities to work on mutually beneficial projects with

i t i i i d i t i i hi h l l f fid ith t k h ld Thsociety inspiring and maintaining high levels of confidence with stakeholders They are aware of the organisation’s impact on both the current and future community taking care to minimise any adverse impact.



Documents

TQM BHel