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TQM TRAINING MATERIAL

QUALITY DEPARTMENT
POWER SECTOR SOUTHERN REGION
CHENNAI - 600 035

CONTENTS
Sl.
DESCRIPTION
No.
01 Introduction

PAGE
No.
02

02

BHEL Approach towards TQM

08

03

CII Model

10

04

Exhibits

40

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INTRODUCTION
Organisations Culture
The Organisations culture is basically divided into three
categories as follows;

Jungle Culture (fear or controlled culture)


Zoo Culture (free or uncontrolled culture)
Circus Culture (systematic or trained culture)

A) Jungle Culture:
In Jungle, all the animals start the day with planning how
to get a prey and how to avoid being a prey for others.
These conditions create high fear complex and conscious
movement, trying to maintain safe distance from one
another.
In some Organisation this fear (jungle) culture is followed
which creates a great barrier to any incremental or break
through improvements.
B) Zoo Culture:
In Zoo, all the animals are caged and are in no hurry to
getting their food as the same is taken care of and there
is no fear of being a prey for others.
In some Organisation, such fear free culture is followed
with highly defined boundaries of operation. Such culture
normally is very rigid and greatly reduces scope for
improvements and growth.

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C) Circus Culture :
The total operation of the Circus Culture is well
disciplined, planned and trained to be systematic,
integrated, innovative and synchronised. Also it always
aims at continuous innovative improvement in all their
functional areas to achieve the satisfaction of all stake
holders. In few Organisation such culture is being
followed which gives freedom for continuous
improvements, benefiting all employees, customer,
supplier, society and all stake holders.
Every organisation is now striving to achieve basic
cultural change mostly towards circus culture to achieve
TQM through continuous improvement.
Quality Management is broadly divided into two
categories;
1.
2.

Standard based Quality Management


People based Quality Management

Standard Based Quality Management


Standard based Quality Management mainly focuses on
developing quality system in line with the applicable
national/ international standards, covering the entire
functions and operations of the organisation. Such
Quality systems clearly indicate the responsibility and
authority of individuals/ teams of the Organisation. By
implementing this Quality system, the organisation
achieves fixed and standardised operating systems in
their total functional areas.

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The effectiveness of the implementation of the Quality


system is assessed through internal/external quality
audits. In addition Quality audit also aims at improving
quality system, through corrective and preventive
measures within the framework of the standards and
Quality system. Standard based Quality Management
has the following critical limitations:
Development of Quality system is directly linked with
standards (E.g.ISO 9000 series)
Any major change or improvement in the Quality
system is mainly based on change in standard
Once the Quality system is established and set, there
is no much scope for improvement
To cite an example in PSSR, during the initiation of
obtaining ISO 9002 accreditation in 1993, the Quality
systems were developed in line with the ISO 9002
standard of 1987 revision status. This first established
Quality system was in use till the standard was revised in
the year 1994. The quality system was then fully revised
in line with the revised ISO standard and is being
followed till date. Hence, standard based quality
management is considered as the first step for
continuous improvement or TQM approach.
People Based Quality management
People based quality management mainly focuses on
making people to recognise that quality is essential for

Individual development
Organisation development
Customer delight
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Stake Holders satisfaction

The success of People based Quality management is


directly related to:
1. Top management involvement, drive and support
including formulating vision, Policy, strategy etc.
2. Involvement of all people (employees) in aiming at
continuous improvement
3. Understanding and satisfying the needs and
expectations of customer, suppliers and employees
4. Effective utilisation of all resources
5. Controlling and upgrading all processes and
technologies
6. Linking the effect of the above directly to
customer/employees satisfaction, benefit to society
and organisation business results.
To achieve the above through structural approach, a
number of models have been developed by various
international institution/organisations. The following are a
few internationally recognised TQM models.
1.Demings Model

2.Malcolm Baldridge Model


American

Adopted by Japanese
Organisations
-

Adopted

by

Organisations
3.EFQM Model

Adopted by European
Organisations

The models not only guide the organisation towards Total


Quality Management approach but also help to evaluate
the implementation status, improvement achieved and its
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real effect on their business results focusing customer,


employees,
supplier
and
stakeholders.
These
internationally accepted models guide all types of
organisations to achieve structured approach in
continuous improvement through TQM.
TQM is centered on the principles of Customer focus,
continuous improvement, defect prevention rather than
detection and recognition that responsibility for quality is
shared by all of us. Further, the organisations approach,
functions and technologies are to support these four
principles.
Definition of Total Quality Management (TQM)
Management approach of an organisation centered on
Quality, based on the perception of all its members are
aiming at long term success, through customer
satisfaction and benefits to all members of the
organisation and to society.
TQM has the following dimension
Total

Satisfy all stake holders

Quality

Sustained customer focus

Management

Continuous improvement with


fact and data based decisions
in a planned way

The main tool for continuous improvement


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According to the Quality Gurus, the continuous


improvement can be achieved only through PDCA
Cycle.

ACT
CHECK

PLAN
DO

That is, PLAN your activities first, then DO (execute),


CHECK (look for corrections, if any) and then ACT (after
taking corrective action)

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BHEL s APPROACH TOWARDS TQM


The top management of BHEL initiated TQM movement
during 1994 and decided to follow the EFQM model
adopted by Confederation of Indian Industry (CII) titled
The CII Model for Total Quality Management. This
model is being widely adopted by a number of
Organisations in India.
The following three models are well recognised for
purposes of award in India.
1. Rajiv Gandhi National Quality Award - by Govt. of
India
2. Golden Peacock award - by Institute of Directors
3. CII Exim award for business excellence - by CII
Out of the above three models, the CII model alone
provides guidelines for self-assessment by the
organisation itself as well as assessment by CII for award
purpose.
In BHEL the first self assessment based on CII model
was done during Nov. 1995, by the trained TQ Assessors
under the guidance of EFQM expert from UK and CII
experts. Subsequently, two self assessments during Nov.
96 and Sept. 97, were done under the guidance of CII
experts. TQ self assessment is being conducted every
year in the month of September.
TQM Approach through CII Model
This model provides a generic frame work of criteria that
can be adopted by any Organisation. The basic nine
main criteria of this model is divided into 33 sub-criteria.
These 33 sub-criterias are further split into no. of bullet
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points to detail out the sub/main criteria requirements.


The following are the basic two steps to be followed by
an organisation to achieve continuous improvement or
TQM approach through well defined structured model.
1. Understand the principles and requirement of the
model by every employee
2. Align/tune the activities, functions and operations of
the organisation with the principles and requirements
of the model.
In any organisation, the success of TQM approach mainly
depends on
1.
2.
3.
4.
5.

Top managements faith and belief


Top managements support
Top managements encouragement
Top managements involvement
Top managements initiative

Hence the percentage of success in TQM approach is


directly proportional to involvement/ approach of Top
management.
Matching the
approach

TQM

model

with

Organisations

Every Organisation develops its own system, style and


approach to manage their business operations. Such
system, style and approach, if followed for a long period
without change, become common practices of their
business operation. Once the common practices start
dominating the organisations operation, it leads to little
scope for any change through commonsense approach
for improvement. Hence it is necessary for the
organisation to formulate a structured approach to
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ensure continuous improvement in all their operations. To


achieve this, the organisations approach and practices
are to be perfectly aligned and blended with all the
requirements detailed in the TQM model adopted. To
achieve this, the first step is to understand the
requirements of the model at all levels.
CII MODEL FOR TQM
In order to undertake Self Assessment, an underlying
framework is necessary for which BEHL has selected the
CII model for TQM. Although each organisation is unique,
this model provides a generic framework of criteria that
can be applied widely to any organisation or component
part of organisation. This model is mainly based on the
following.
Customer Satisfaction, people (Employee) satisfaction
and Impact on Society are achieved through
Leadership Driving
Policy and Strategy, People Management, Resources
and processes leading ultimately to excellence in
Business Results

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CII Millennium Model for Excellence


Enablers

Results

2. Policy & Strategy


80 points
4. Partnerships and
Resources 90 points

7. People Results
90 points

6. Customer Results
200 points
8. Society Results
60 points

9. Key Performance
Results 150 Points

5. Processes 140 Points

1. Leadership 100 Points

3. People
90 points

Innovation & Learning

Enablers 500 Points


(50 %)

Results 500 Points


(50 %)

Excellent Results with respect to Performance, Customers, People,


and Society are achieved through Leadership driving Policy &
Strategy, People, Partnerships & Resources, and Processes. The
customer results has the highest points.. viz 200
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Each of the nine elements shown in the model is a


criterion that can be used to assess the organisations
progress towards business excellence. The model is
basically divided into two major categories as ;
Enablers
Results
The Enablers criteria are concerned with how the
Organisation approaches each of the criterion parts. The
organisation has to provide information required on the
excellence of the approach used and the extent of
deployment of the approach vertically through all levels of
the organisation and horizontally to all areas and
activities.
The Results criteria are concerned with what the
Organisation has achieved and is achieving.
SELF ASSESSMENT
What is Self Assessment?
Self Assessment is a comprehensive systematic and
regular review of an organisations activities and results
referred against a model.
The self assessment process allows the organisation to
discuss clearly its strengths and areas in which
improvements can be made and culminates in planned
improvement actions which are then monitored for
progress.

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Self assessment is a process which


Enables fast, accurate and meaningful measurements
of quality, strength and weakness
Helps track progress over a period of time
Establishes base line for benchmarking
Fosters understanding of own business processes
What are the benefits of Self Assessment
A Vigorous and structured approach to business
improvement
An assessment based on facts and not individual
perception
A means to achieve consistency of direction and
consensus on what needs to be done through every
one in the organisation sharing the same conceptual
base
A means to educate people in the organisation on
how to apply, in a meaningful way, the principles of
TQM
A means to integrate various quality initiatives into
normal business operations
A powerful diagnostic tool
An objective assessment against a set of criteria
which has become widely accepted
A means of measuring process over time through
periodic self assessment
Process induced improvement activity focused where
it is most needed.
A methodology for application at all levels ranging
from individual business units up to the organisation
as a whole
A means to create enthusiasm amongst the people
within the organisation and give fresh impetus to their
pursuit of business excellence
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Opportunities to promote and share excellent


approaches within different areas of the organisation
or as a wider scale with other organisations of a
similar or diverse nature
Opportunities to recognise both progress and
outstanding levels of achievement through internal
awards
A link between what the organisation needs to
achieve and how it puts in place strategies and
processes to deliver its objectives
A means to bench mark internally as well as against
other organisation.
To summarise, the process offers the organisation an
opportunity to learn
About the organisations strength and Areas For
Improvement (AFIs)
About what TQ means when applied to own
organisation
About how far down the Quality road the organisation
has traveled
How much further the organisation has to travel and
how it compares with others.
What to do after Self Assessment
1. The organisation shall formulate methodology to
prioritise AFIs for achieving continuous improvement
2. Identify individual/team with authority, responsibility
and completion target for each AFI/continuous
improvement projects
3. Achieve incremental or break through improvement
on AFI/ projects
4. Strengthening strength further
5. Periodic review of TQM implementation status
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6. Continue the operation every year.


What is Position Report.
The position report is:
A mirror or photograph reflecting the total operation,
function and activities of the organisation.
Detailing all the requirements stated in the model
adopted
Covering the operations of an organisation for the
specified period (for BHEL one year)
Indicating the past data (min.5 years) showing both
positive and negative trends of various business
results and continuous improvement
Visibly showing the growth of the organisation year
after year
Showing the comparison with
1. Achievement with respect to own targets
2. Achievement with respect to competitors
performance
3. Achievement with respect to best in class
organisation
A powerful tool for reflecting the organisations
growth.

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CII Model details:


Criterion 1
Leadership
Definition
Excellent Leaders develop and facilitate the achievement
of the mission and vision. They develop organizational
values and systems required for sustainable success and
implement these via their actions and behaviours. During
periods of change they retain a constancy of purpose.
Where required, such leaders are able to change the
direction of the organization and inspire others to follow.
1a
Leaders develop the mission, vision, values
and ethics and are role models of a culture of
Excellence
They may include
developing the organisations mission, vision and
cultutre;
developing and role modeling values, ethics and
public responsibilities that support the culture;
reviewing and improving the effectiveness of
personal leadership behaviours;
being actively involved in improvement activities;
stimulating
and
encouraging
empowerment,
creativity and innovation, e.g. by changing the
organisations structure, funding learning and
improvement activities;
encouraging, supporting and acting upon the findings
of learning activities;
prioritizing improvement activities;
stimulating and encouraging collaboration within the
organisation.
1b
Leaders are personally involved in ensuring
the
organisations
management
system
is developed, implemented and continuously
improved
This may include
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aligning the organisations structure to support


delivery of its policy and strategy;
ensuring a system for managing processes is
developed and implemented;
establishing clear ownership of processes;.
ensuring a process for the development, deployment
and updating of policy and strategy is developed and
implemented.
ensuring a process for the effective governance of
the organization is developed and implemented.
ensuring a process for the measurement, review and
improvement of key results is developed and
implemented.
ensuring a process, or processes, for stimulating,
identifying,
planning
and
implementing
improvements to enabling approaches, e.g. through
creativity innovation and learning activities, is
developed and implemented.
1c
Leaders are involved with customers, partners
and representatives of society.
This may include:
meeting, understanding and responding to needs and
expectations;
establishing and participating in partnerships;
establishing and participating in joint improvement
activity;
recognising individuals and teams of stakeholders for
their contribution to the business, for loyalty etc;
participating in professional bodies, conferences and
seminars, particularly promoting and supporting
excellence;
Promoting, supporting and engaging in activities that
aim to improve the environment and the organisations
contribution to society with the view to respecting the
rights and interests of future generations.
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1d

Leaders reinforce a culture of excellence with


the organisation's people
This may include:
personally communicating the organisations mission,
vision, values, policy and strategy, plans, objectives
and targets to people;
being accessible, actively listening inspiring, uniting
and responding to people;
helping and supporting people to achieve their plans,
objectives and targets;
motivating and enabling people to participate in
improvement activity;
recognising both team and individual efforts, at all
levels within the organisation, in a timely and
appropriate manner.
promoting and encouraging equal opportunities and
diversity.
1e
Leaders identify and champion organisational
change
This may include:
understanding the internal and external drivers of
change for the organisation;
identifying and selecting changes that need to be
made within the organisation, to the organisation
model and in its external relationships;
leading the development of change plans;
securing investment, resources and support for
change;
managing the delivery and risks of the overall portfolio
of change programmes;
ensuring the effective delivery of change and
managing stakeholders
communicating changes and the reasons for them to
the organisation's people and other stakeholders;
supporting and enabling people to manage change;
measuring and reviewing the effectiveness of changes
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and sharing the knowledge gained.


Criterion 2
Policy and Strategy
Definition
Excellent organisations implement their mission and
vision by developing a stakeholder focused strategy that
takes account of the market and sector in which it
operates. Policies, plans, objectives and processes are
developed and deployed to deliver the strategy.
2a
Policy and strategy are based on the present
and future needs and expectations of
stakeholders
This may include:
gathering and understanding information to define the
markets and market segments the organisation will
operate in both now and in the future;
identifying, understanding and anticipating the needs
and expectations of current and future stakeholders
including customers, employees, partners, society and
shareholders;
identifying,
understanding
and
anticipating
developments in the market place, including
competitor activity.
2b

Policy and strategy are based on information


from performance measurement, research,
learning and external related activities
This may include:
analysing output from internal performance indicators;
analysing output from learning activities;
analysing external image and brand awareness data;
analysing the performance of competitors and best in
class organisations;
analysing data regarding existing / potential partners'
core competencies;
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analysing data for both long term and short term


social, environmental, safety and legal issues;
analysing data on the effects of products and services
throughout their entire life-cycle;
identifying and understanding economic and
demographic indicators;
analysing data to determine the impact of new
technologies and business models on the performance
of the organization.
2c

Policy and strategy are developed, review,


updated
This may include:
developing, reviewing and updating
policy and
strategy consistent with the organisations mission,
vision and values and concepts of excellence;
balancing both short and long term needs and
expectations of stakeholders;
assessing risks and identifying ways of addressing
these risks;
identifying present and future competitive advantage;
identifying core capabilities and needs for
partnerships / alliances to deliver policy and strategy;
reaffirming presence in established markets or
requirement to change market approach;
aligning strategy with those of partners and alliances;
identifying critical success factors;
aligning and continuously developing social and
environmental standards with partners.
evaluating the relevance and effectiveness of policy
and strategy.
2d
Policy and strategy are communicated and
deployed through a framework of key
processes
This may include:
identifying and designing and communicating the
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framework of key processes needed to deliver the


organisations policy and strategy;
communicating policy and strategy to stakeholders
and evaluating the awareness of it;
aligning, prioritising, agreeing, cascading and
communicating plans, objectives and targets as well
as following up achievements;
establishing organisation wide reporting mechanism
to track progress.
Criterion 3
People
Definition
Excellent organisations manage, develop and release
the full potential of their people at an individual, teambased and organisational level. They promote fairness
and equality and involve and empower their people. They
care for, communicate, reward and recognize, in a way
that motivates staff and builds commitment to using their
skills and knowledge for the benefit of the organisation.
3a
People resources are planned, managed and
improved
This may include:
developing human resource policies, strategies and
plans;
involving employees, and their representatives in
developing human resource policies, strategies and
plans;
aligning the human resource plans with policy and
strategy, the organisational structure and the
framework of key processes;
managing recruitment and career development and
succession planning;
promoting and ensuring fairness in all terms of
employment including equal opportunities policies,
strategies and plans;
using people surveys and other forms of employee
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feedback to improve human resource policies,


strategies and plans;
using innovative organisation methodologies to
improve the way of working e.g. restructuring the
supply chain, flexible team working.
3b
Peoples knowledge and competencies are
identified, developed and sustained
This may include:
identifying, classifying and matching peoples
knowledge and competencies with the organisations
needs;
developing and using training and development plans
to help ensure people match the present and future
capability needs of the organisation;
Developing, mentoring and training all people to help
them realize and attain their full potential;
designing and promoting individual, team and
organisational learning opportunities;
developing people through work experience;
developing tem skills;
aligning individual and team objectives with the
organistions targets;
reviewing and updating individual and team objectives;
appraising and helping people improve their
performance.
3c People are involved and empowered
This may include:
encouraging and supporting individual and team
participation in improvement activities;
encouraging and supporting peoples involvement
e.g. through in-house conferences, and community
projects;
providing opportunities that stimulate involvement
and support innovative and creative behaviour;
Training managers to develop and implement
guidelines empowering people to take action;
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encouraging people to work together in teams.


3d
People and the organisation have a dialogue
This may include:
identifying communication needs;
developing communications policies, strategies and
plans based on communications needs;
developing and using top down, bottom up and
horizontal communication channels;
identifying and ensuring opportunities to share best
practice and knowledge.
3e People are rewarded, recognized and cared for
This may include:
aligning remuneration, redeployment, redundancy
and other terms of employment with policy and
strategy;
recognising people in order to promote and sustain
their involvement and empowerment;
promoting awareness and involvement in health,
safety, environment and issues on social
responsibility.
setting the levels of benefits, e.g. pension plan, health
care, child care;
recognising and taking account of diversity and
different cultural backgrounds promoting social and
cultural activities;
providing resources and services that meet legal
essentials and in some cases, exceed these
requirements.
Criterion 4
Partnerships and Resources
Definition
Excellent organisations plan and manage external
partnerships, suppliers and internal resources in order to
support policy and strategy and the effective operation of
processes. During planning and whilst managing
partnerships and resources they balance the current and
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future needs of the organisation, the community and the


environment.
4a
External partnerships are managed
This may include:
identifying key organisation and community
partnership opportunities in line with policy and
strategy and the organisations mission;
structuring partnership and supplier relationships to
create and maximise value;
forming supply chain partnerships that add value to
customers;
Identifying and leveraging core competencies of
partners and supporting mutual development;
ensuring cultural compatibility and the sharing of
knowledge with partner organisations;
generating and supporting innovative and creative
thinking through the use of partnerships;
creating synergy in working together to improve
processes and add value to the customer/supplier
chain.
4b
Finances are managed
This may include:
developing and implementing financial strategies
and processes for using financial resources in
support of overall policy and strategy;
designing the financial planning and reporting to
cascade the financial stack holders expectations
throughout the organisation;
establishing reporting mechanisms;
evaluating investment in and divestment of both
tangible and non-tangible assets;
using financial mechanisms and parameters to
ensure an efficient and effective resourcing
structure;
developing and introducing methodologies for
managing risks to financial resources to all
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appropriate levels in the organisation;


establishing and implementing core governance
processes at all appropriate levels in the
organisation.
4c
Buildings, equipment and materials are
managed
This may include:
developing a strategy for managing buildings,
equipment and materials that supports the
organisations policy and strategy;
managing the maintenance and utilisation of assets
to improve total life cycle performance;
managing the security of assets;
measuring and managing any adverse effects of the
organisations assets on the community and
employees (including ergonomics, health and
safety);
utilising resources in an environmentally sound
manner throughout the entire life cycle of a product;
optimising material inventories;
optimising consumption of utilities;
reducing and recycling waste;
minimising any adverse global impact of products,
production processes and services.
4d
Technology is managed
This may include:
developing a strategy for managing technology that
supports the organisations policy and strategy;
Identifying and evaluating alternative and emerging
technologies in the light of their impact on business
and the society;
managing the technology portfolio including the
identification and replacement of out dated
technology;
exploiting existing technology;
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developing innovative and environmentally friendly


technology (i.e. conserving energy and resources,
minimization of waste and emissions, encouraging
recycling and re-use);
using information and communication technologies
to support and improve the effective operation of the
organisation;
using technology to support improvement.
4e Information and knowledge are managed
This may include:
developing a strategy for managing information and
knowledge that supports the organisations policy
and strategy;
identifying the organisations information and
knowledge requirements;
Collecting, structuring and managing information
and knowledge in support of policy and strategy ;
providing appropriate access, for both internal and
external users, to relevant information and
knowledge;
using information technology to support internal
communication and information and knowledge
management;
assuring and improving information validity, integrity
and security;
cultivating, developing and protecting unique
intellectual property in order to maximise customer
value;
seeking to acquire, increase and use knowledge
effectively;
generating innovative and creative thinking within
the organisation through the use of relevant
information and knowledge resources.

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Criterion 5
Processes
Definition
Excellent organisations design, manage and improves
processes in order to fully satisfy, and generate
increasing value for, customers and other stakeholders.
5a
Processes are systematically designed and
managed
This may include:
designing the organisations processes, including
those key processes needed to deliver policy and
strategy;
Identifying process stake holders and managing
interface issues inside the organisation and with
external partners for the effective management of
end-to-end processes;
establishing the process management system;
applying systems standards covering for example,
quality management systems, environmental
systems, occupational health and safety systems in
process management;
implementing process indicators and setting
performance targets;
reviewing the effectiveness of the process
framework in delivering the organisations policy and
strategy.
5b
Processes are improved, as needed, using
innovation in order to fully satisfy and
generate increasing value for customer and
other stakeholders.
This may include:
identifying and prioritising opportunities for
improvement, and other changes, both incremental
and breakthrough;
using performance and perception results and
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information from learning activities to set priorities


and targets for improvement and improved methods
of operation;
stimulating and bringing to bear the creative and
innovative talents of employees, customers and
partners
in
incremental
and
breakthrough
improvements, .
discovering and using new process designs,
operating philosophies and enabling technology;
establishing appropriate methods for implementing
change;
piloting and controlling the implementation of new or
changed processes;
communicating process changes to all appropriate
stakeholders;
ensuring people are trained to operate new or
changed processes prior to implementation;
ensuring process changes achieve predicted results.
5c Products and Services are designed and
developed based on customer needs and
expectations
This may include:
using market research, customer surveys and other
forms of feedback to determine customer current
needs and expectations for products and services;
anticipating and identifying improvements aimed at
enhancing products and services in line with
customers and other stakeholders, future needs
and expectations;
designing and developing new products and
services together with customers and partners that
add value for the customers;
understanding and anticipating the impact and
potential of new technologies on products and
services;
developing new products and services for both the
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current established market and to gain access to


other markets;
using creativity, innovation and key competencies of
both internal people and external partners to design
and develop competitive products and services;
5d
Products and Services are produced, delivered
and serviced
This may include:
producing or acquiring products and services in line
with designs and developments;
marketing, communicating the value proposition, and
selling products and services to existing and potential
customers;
delivering products and services to customers;
servicing products and services, including recycling
where appropriate.
5e
Customer relationships are managed and
enhanced
This may include:
determining and meeting customers day to day
contract requirements;
handling feedback received from day to day
contacts including complaints;
proactive involvement with customers in order to
discuss and address their needs, expectations and
concerns;
following up on sales, servicing and other contacts
in order to determine levels of satisfaction with
products, services and other customer sales and
servicing processes;
seeking to maintain creativity and innovation in the
customer sales and servicing relationship;
establishing partnerships with customers which add
value to the supply chain;
using regular surveys, other forms of structured data
gathering and data gathered during day to day
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customer contacts in order to determine and


enhance customer relationship satisfaction levels;
advising customers on the responsible use of
products.
Criterion 6
Customer Results
Definition
What excellent organisations comprehensively measure
and achieve outstanding results with respect to their
customers.

6a

Perception Measures

These measures are of the customers perceptions of the


organisation (obtained, for example, from customer
surveys, focus groups, vendor ratings, compliments and
complaints).
Depending on the purpose of the organisation, customer
perception measures may include those relating to:
Image:
accessibility;
communication;
transparency;
flexibility;
pro-active behaviour;
responsiveness
Products and services:
quality:
value;
reliability;
design innovation;
delivery;
environmental profile.
Sales and after sales support:
capabilities and behaviour of employees;
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advice and support;


customer literature and technical documentation;
handling complaints;
product training;
response time;
technical support;
warranty and guarantee provisions.
Loyalty:
intention to repurchase;
willingness to produce other products and services
from the organisation;
willingness to recommend the organisation.
6b
Performance Indicators
These measures are the internal ones used by the
organisation in order to monitor, understand, predict and
improve the performance of the organisation and to
predict perceptions of its external customers.
Depending on the purpose of the organisation examples
of measures that may be made include:
Image:
number of customer accolades and nomination for
awards;
press coverage;
Products and services;
competitiveness;
defect, error and rejection rates;
Seals of approval, environmental labels;
guarantee provisions and warranty provisions;
complaints;
logistic indicators;
product life cycle;
innovation in design;
time to market.
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Sales and after sales support


demand for training;
handling of complaints;
response rates
Loyalty:
duration of relationship;
effective recommendations;
frequency/value of orders;
lifetime value;
numbers of complaints and compliments
new and/or lost business;
customer retention.
Criterion 7
People Results
Definition
Excellent organisations comprehensively measure and
achieve outstanding results with respect to their people
7a
Perception Measures
These measures are of the peoples perception of the
organisation (obtained, for example, from surveys, focus
groups, interviews, structured appraisals).
Depending on the purpose of the organisation examples
of measures that may be made include:
Motivation
career development;
communication;
empowerment;
equal opportunities;
involvement;
leadership;
opportunity to learn and achieve;
recognition;
target setting and appraisal;
the organisations values, mission, vision, policy and
strategy;
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training and development.


Satisfaction
organisations administration;
employment conditions;
facilities and services;
health and safety conditions;
job security;
pay and benefits;
peer relationships;
the management of change;
the organisations environmental policy and impact;
the organisations role in the community and society;
working environment.
7b
Performance Indicators
These measures are the internal ones used by the
organisation in order to monitor, understand, predict and
improve the performance of the organisations people
and to predict their perceptions.
Depending on the purpose of the organisation examples
of measures that may be made include:
Achievements:
competency requirements versus competencies
available;
productivity;
success rates of training and development to meet
objectives.
external awards and recognition.
Motivation and involvement:
involvement in improvement teams;
involvement in suggestion schemes;
levels of training and development;
measurable benefits of team work;
recognition of individuals and teams;
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response rates to people surveys.


Satisfaction:
absenteeism and sickness levels;
accident levels;
grievances;
recruitment trends;
staff turnover and loyalty;
strikes;
use of organisation provided facilities and benefits;
services provided to the organisations people;
accuracy of personnel administration;
communication effectiveness;
speed of response to enquiries;
training evaluation.
Criterion 8
Society Results
Definition
Excellent organisations comprehensively measure and
achieve outstanding results with respect to society.
8a
Perception Measures
These measures are of the societys perception of the
organisation (obtained, for example, from surveys,
reports, press articles, public meetings, public
representatives, governmental authorities). Some of the
measures contained in the guidance for perception
measures may be applicable to performance indicators
and vice versa.
Depending on the purpose of the organisation examples
of measures that may be made include:
Image:
responsiveness to contracts;
as an employer;
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as a responsible member of the community.


Performance as a responsible citizen:
disclosures of information relevant to the community;
equal opportunities practices;
impact on local regional, national and global
economies;
relationships with relevant authorities;
either behaviour.
Involvement in the communities where it operates:
involvement in education and training;
involvement of community bodies in relevant
activities;
support for medical and welfare provision;
support for sport and leisure;
voluntary work and philanthropy.
Reduction and prevention of nuisance and harm from
its operations and/or throughout the lifecycle of its
products and services;
health risks and accidents;
noise and odour
hazards (safety)
pollution and toxic emission.
analysis of the supply chain;
environmental performance evaluation/lifecycle
evaluation.
Reporting on activities to assist in the preservation
and sustainability of resources:
choice of transport;
ecological impact;
reduction and elimination of waste and packaging;
substitution of raw materials or other inputs;
usage of utilities e.g. gases, water, electricity; new
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recycled materials.
recycling.
8b
Performance Indicators
These measures are the internal ones used by the
organisation in order to monitor, understand, predict and
improve the performance of the organisation and to
predict perceptions of society.
Depending on the purpose of the organisation examples
of measures that may be made include:
Handling changes in employment levels;
Dealings with authorities on issues such as:
certification;
clearances
import/export
planning;
product release.
Accolades and awards received.
Exchange of information in relation to social
responsibility good practices, auditing and social
reporting.
Criterion 9
Key Performance Results
Definition
Excellent organisations comprehensively measure and
achieve outstanding results with respect to the key
elements of their policy and strategy.
9a
Key Performance Outcomes
These measures are key results defined by the
organisation and agreed in their policy and strategies.
Depending on the purpose and objectives of the
organisation some of the measures contained in the
guidance for key performance outcomes may be
applicable to key performance indicators and vice versa:
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Financial outcomes may include


market related and general data (sales, share price,
dividends etc.);
profitability (gross margins, earnings per share,
earnings before interest and tax, contribution margin
etc.);
investment and asset related information (return on
invested capital, return on net assets, return on
capital employed etc.);
budgetary performance (performance against
organisation or unit budgets).
Non-financial outcomes including:
market share;
time to market;
success rates;
volumes;
process performance
9b
Key performance Indicators
These measures are the operational ones used in order
to monitor, understand the processes and predict and
improve the organisations likely key performance
outcomes.
Depending on the progress and objectives of the
organisations and its processes, they may include:
Financial
cash flow;
depreciation;
maintenance costs;
project costs;
credit ratings;
Non-Financial:
processes (performance; assessments; innovations;
cycle times);
external resources including partnerships (supplier
performance: supplier price; number and value
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added of partnerships; number and value added of


joint improvements with partners);
Buildings, equipment and materials: (defect rates;
inventory turnover; utilization);
Technology: (innovation rate; value of intellectual
property; patterns; royalties):
Information and knowledge: (accessibility; integrity;
value of intellectual capital):
Number and value added of partnerships:
Number and value added of innovative products and
services solutions generated by partners.

CUSTOMER SATISFACTION

Customer satisfaction scores are leading


indicators of organisational prosperity, often
picking up problems before financial indicators
can
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There is a direct correlation between customer


satisfaction and employee morale
Retraining a customer/ employee is a highly
profitable strategy

CUSTOMER CATEGORY

Delighted customers
Dis-satisfied customers
Satisfied customers
Indifferent customers
Lost customers
Non customers

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We have yet to acknowledge, it is People who will make


the difference and their satisfaction is the key to Success.
A Paradigm shift is needed to deal with Human Resource
Management.

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FUNCTION OF MANAGEMENT

Retainment . To maintain Quality


level of already
achieved
Improvement ..

Improve quality level


more than that of
achieved

Breakthrough ..

Innovation of
Improvement

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WHY IMPROVE AND MANAGE PROCESSES


Root cause for

Competitive advantage

Vehicle for

Strategy Implementation

Enables

Achievement of Customer needs


Satisfaction and financial goals

Enhances

Performance of individuals
(as good as processes allow it to be )

Frequently

Not documented
Not Understood
Not Managed
Not Improved

CRITICAL PROCESSES
* Make or Break the Business
* Consume the most of the Business Resourcing
* Deliver Fundamental Value to the Customer(s)
ESCAPE: METHODS TO STREAMLINE PROCESS
Eliminate
Simplify
Combine

Automate

Parallel path -

Eliminating the suspect steps


Simply the individual step
Merge two or more steps into a
single step
Automation to make it faster, better
and cheaper
Execute two or more steps at the
same time
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GUIDELINES FOR STREAMLING PROCESS

1.

Avoid documents

2.

change sequence

3.

Eliminate duplicate tasks

4.

Justify each review/inspection

5.

Reduce Rework

6.

Reduce In-Process Inventory

7.

Avoid Responsibility hand-offs

8.

Build in Flexibility (Optional Paths)

9.

Reduce the distance between people


(customers, suppliers) who must
exchange information

10.

Multi skilling (doing several steps)

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IMPACT OF ORGANISATIONAL CHANGE


Type /
Characteristic

Incremental

Design

Transformation

Redesign

Reengineerin
g

Focus

Tasks

Critical
Processes

Critical
Processes

Processes
+ Systems

Action

Solve
Problem
s

Remove
Complexity

Create New
Process

Create
New
Organisatio
n

Returns

1-10%

10-50%

>50%

Success

95%

80%

30%

Who

Service
provider
Statistic
s Many

Upper
Managemen
t
Clean sheet
of paper

Owner &
Executive

Tools

Middle
Managemen
t
Flow chart
Many

Financial
Many

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BUSINESS EXCELLENCE AWARD CRITERIA


SCORE
700+
600-700
500-600
400-500
300-400
-300

STATUS
- Genuine World Class
- Excellent approaches leading to
excellent results
- Amongst outstanding companies
- Potential for World Class
- Doing the right things
- Potential for becoming outstanding
company
- Competently managed
- Quality initiatives have taken roots
- Leading to good results
- Many activities (Enablers)
- Doing things right
- Loose linkages with Results
- Several quality initiatives started
- Lacking focus on results

SUCCESS FACTORS FOR IMPROVEMENT

Shared vision
Top
management
involvement
Focus
Processes
Empowerment
Learn
Patience

commitment

and

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PROBLEMS AND HURDLES TO OVERCOME


IN IMPROVEMENT ACTIVITIES

- Management commitment
- No quick fix
- Investment :
-

Time,

Money &

Effort

- Benchmarking and deployment


- Being a role model
- Resistance to change

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INDIVIDUAL
LEADERSHIP
SKILLS
Ability to choose
what you want to
do and maintain
the focus, energy,
discipline, and
enthusiasm to
consistently
complete the
required tasks
Making
continual
learning
a
personal Habit
Being
proactive
Solving
problems
Networking
Working
for
WIN-WIN
Agreements.

BUSINESS
LEADERSHIP
SKILLS
Ability to choose
the right avenue
for business
success
selecting the
right
business
creating a
distinct
competitive
advantage
(finding a
Niche)
promoting
and
marketing
Making
Business
transitions

EXECUTIVE
LEADERSHIP
SKILLS
Ability to
effectively
support a whole
organisation in
fulfilling its
mission and
meeting its
goals.
Defining and
Articulating
Meaningful
purpose
Assembling
the right
people (and
other
resources)
Providing
Direction,
support and
structure
Defining and
Teaching
roles
Managing
the executive
work
processes

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TEAM
LEADERSHIP
SKILLS
Ability to help
make
those
around
you
successfully
contribute to the
larger organisation
or business
Chartering for
success
Designing
good meeting
agendas
Resolving
Issues
Removing
Barriers
Communicatin
g for improved
Performance

PROCESS
LEADERSHIP
SKILLS
Ability to design
or
find,
and
effectively
use
the best-known
methods
available
to
accomplish your
work
Planning
work
Controlling
work
Improving
work
Benchmarkin
g best known
methods
Reengineering
Business
processes

PERFORMANC
E LEADERSHIP
SKILLS
Ability to become
the best in a
chosen area of
performance
(i.e., becoming
and sustaining
world
class
status)
understanding
and satisfying
customer
needs
measuring
results
Reviewing
and analysing
performance
Verifying
status with
comparative
data
Identifying
improvement
opportunities.

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A TRUE STORY OF TOM IMPLEMENTATION


There is a story about four people named
Everybody, somebody, anybody and Nobody
They have identified an important improvement
project to be done.
Everybody was sure that somebody would do it.
Anybody could have done it, but nobody did it.
Somebody got angry because it was everybodys
job.
Everybody thought that anybody could do it,
But nobody realised that everybody would not do it.
It ended up that everybody blamed somebody, when
actually nobody accused anybody.
Everybody should be always dependent on
somebody to see that nobody takes anybody for
granted.
MORAL OF THIS STORY
Total Quality Management is everybodys job.

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