Quality awards

Kalevi Aaltonen, Aalto University

QUALITY AWARDS
EFQM Excellence Award
Malcolm Baldrige National Quality Award
Japan Quality Award
Excellence Finland

Deming Prize
EFQM – European Foundation for Quality Management
EFQM Model (http://www.efqm.org/)
EFQM Excellence Award Winner 2015

BMW AG Werk Regensburg - Award Winner

With a workforce of approximately 9,000 people, BMW’s Regensburg
plant produces around 1,100 cars per day. Besides its high
flexibility and mastery of a large range of variants, this EFQM
Excellence Award Winner’s outstanding efficiency becomes
particularly apparent in its great launch expertise. The Jury
recognised consistent top level performance and good practices
amongst all the Fundamental Concepts of Excellence, including many
specific role-model practices. BMW Regensburg are persistently
pursuing Excellence
What is Excellence?

In order to be excellent, organisations cannot

focus their efforts in just one area.

They have to optimise the use and effectiveness

of all of their resources within the overall
organisation.
What is Excellence?
Every day new opportunities, new processes or new tools
& techniques appear, supporting the organisation’s
development.

The Balanced Score Card (BSC) provides a framework

for monitoring KPIs, ISO9001 secures a robust Quality
Management System, ISO26000 provides guidance for
Corporate Social Responsibility (CSR), Lean helps
eliminate waste and streamline processes…
What is Excellence?

But how effectively do these different approaches

fit together? Wouldn’t it be great to have one tool
to help ensure the components of our
Management System are working together to
optimise performance?
What is Excellence?
EFQM Excellence Model offers a holistic view of
the organisation, highlighting its strengths and
opportunities to improve. Used as a
benchmarking tool, the Model will show how an
organisation compares to its competitors and
other leading organisations. Used as a
management tool, it will help set the performance
and competency objectives of the organisation…
How do you define Excellence?

Excellent Organisations achieve and

sustain outstanding levels of
performance that meet or exceed the
expectations of all their stakeholders.
Who does the organisation work for?
Fundamental concepts
The Fundamental Concepts of Excellence
• Adding Value for Customers
• Creating a Sustainable Future
• Developing Organisational Capability
• Harnessing Creativity & Innovation
• Leading with Vision, Inspiration & Integrity
• Managing with Agility
• Succeeding through the Talent of People
• Sustaining Outstanding Results
Adding Value for Customers
Excellent organisations consistently add value for
customers by understanding, anticipating and fulfilling
needs, expectations and opportunities.

Creating a Sustainable Future

Excellent organisations have a positive impact on the
world around them by enhancing their performance whilst
simultaneously advancing the economic, environmental
and social conditions within the communities they touch.
Developing Organisational Capability
Excellent organisations enhance their capabilities by
effectively managing change within and beyond the
organisational boundaries.

Harnessing Creativity & Innovation

Excellent organisations generate increased value and
levels of performance through continual improvement and
systematic innovation by harnessing the creativity of their
stakeholders.
Leading with Vision, Inspiration & Integrity
Excellent organisations have leaders who shape the
future and make it happen, acting as role models for its
values and ethics.

Managing with Agility

Excellent organisations are widely recognised for their
ability to identify and respond effectively and efficiently to
opportunities and threats.
Succeeding through the Talent of People
Excellent organisations value their people and create a
culture of empowerment for the achievement of both
organisational and personal goals.

Sustaining Outstanding Results

Excellent organisations achieve sustained outstanding
results that meet both the short and long term needs of all
their stakeholders, within the context of their operating
environment.
EFQM model criteria

Enablers Results
Enablers
Enablers
Leadership
Strategy
People
Partnerships & Resources
Processes, Products & Services
Leadership

Excellent organisations have leaders who shape the future and

make it happen, acting as role models for its values and ethics
and inspiring trust at all times.

They are flexible, enabling the organisation to anticipate and

reach in a timely manner to ensure the on-going success of the
organisation.
Strategy

Excellent organisations implement their Mission and Vision by

developing a stakeholder focused strategy. Policies, plans,
objectives and processes are developed and deployed to deliver
the strategy.
People

Excellent organisations value their people and create a culture

that allows the mutually beneficial achievement of organisational
and personal goals.

They develop the capabilities of their people and promote

fairness and equality.

They care for, communicate, reward and recognise, in a way that

motivates people, builds commitment and enables them to use
their skills and knowledge for the benefit of the organisation.
Partnerships & Resources

Excellent organisations plan and manage external partnerships,

suppliers and internal resources in order to support their
strategy, policies and the effective operation of processes.

They ensure that they effectively manage their environmental

and societal impact.
Processes, Products & Services

Excellent organisations design, manage and improve processes,

products and services to generate increasing value for
customers and other stakeholders.
Leadership

Excellent organisations have leaders who shape the future and

make it happen, acting as role models for its values and ethics
and inspiring trust at all times.

They are flexible, enabling the organisation to anticipate and

reach in a timely manner to ensure the on-going success of the
organisation.
Results
Results
Customer Results
People Results
Society Results
Business Results
Customer results

Excellent organisations achieve and sustain outstanding results

that meet or exceed the need and expectations of their
customers.
People results

Excellent organisations achieve and sustain outstanding results

that meet or exceed the need and expectations of their people.
Society results

Excellent organisations achieve and sustain outstanding results

that meet or exceed the need and expectations of relevant
stakeholders within society.
Business results

Excellent organisations achieve and sustain outstanding results

that meet or exceed the need and expectations of their business
stakeholders.
RADAR
Results =R
Approaches =A
Deploy =D
Assess and Refine = AR
Structured approach to questioning the
performance of an organisation

The RADAR logic is a dynamic assessment

framework and powerful management tool
that provides a structured approach to
questioning the performance of an
organisation.
Determine the Results it is aiming to achieve as part of its strategy
o What are we trying to achieve?

Plan and develop an integrated set of sound Approaches to deliver the

required results both now and in the future
o How do we try to achieve this?

Deploy the approaches in a systematic way to ensure implementation

o How / Where / When was this implemented?

Assess and Refine the deployed approaches based on monitoring and

analysis of the results achieved and ongoing learning activities.
o How do we measure whether it is working?
o What have we learning and what improvements can be made?
Implementing the EFQM Model
Malcolm Baldrige National Quality Award
The Malcolm Baldrige National
Quality Improvement Act of 1987
1. The leadership of the United States in product and
process quality has been challenged strongly (and
sometimes successfully) by foreign competition, and
our Nation's productivity growth has improved less
than our competitors' over the last two decades.

2. American business and industry are beginning to

understand that poor quality costs companies as
much as 20 percent of sales revenues nationally and
that improved quality of goods and services goes
hand in hand with improved productivity, lower costs,
and increased profitability.

3. Strategic planning for quality and quality

improvement programs, through a commitment to
excellence in manufacturing and services, are
becoming more and more essential to the well-being
of our Nation's economy and our ability to compete
effectively in the global marketplace.
4. Improved management understanding of the factory
floor, worker involvement in quality, and greater
emphasis on statistical process control can lead to
dramatic improvements in the cost and quality of
manufactured products.

5. The concept of quality improvement is directly

applicable to small companies as well as large, to
service industries as well as manufacturing, and to
the public sector as well as private enterprise.

6. In order to be successful, quality improvement

programs must be management-led and customer-
oriented, and this may require fundamental changes
in the way companies and agencies do business.
7. Several major industrial nations have successfully
coupled rigorous private-sector quality audits with
national awards giving special recognition to those
enterprises the audits identify as the very best
8. A national quality award program of this kind in the United States
would help improve quality and productivity by:

a. Helping to stimulate American companies to improve quality

and productivity for the pride of recognition while obtaining a
competitive edge through increased profits;

b. Recognizing the achievements of those companies that

improve the quality of their goods and services and providing an
example to others;

c. Establishing guidelines and criteria that can be used by

business, industrial, governmental, and other organizations in
evaluating their own quality improvement efforts; and

d. Providing specific guidance for other American organizations

that wish to learn how to manage for high quality by making available
detailed information on how winning organizations were able to
change their cultures and achieve eminence."
 The Malcolm Baldrige National Quality Improvement Act of 1987

International competition
Improvement of the productivity
The Malcolm Baldrige National Quality Improvement Act of 1987

Bad quality cuts revenues 20 %

 The Malcolm Baldrige National Quality Improvement Act of 1987

Quality management
Quality improvement programes
The Malcolm Baldrige National Quality Improvement Act of 1987

Understanding the processes

Workers are responsible for
quality
Statistical Process Control
 The Malcolm Baldrige National Quality Improvement Act of 1987

Small companies – big corporations

Services - production
Public administration – private companies
The Malcolm Baldrige National Quality Improvement Act of 1987

Management commitment
Customer satisfaction
 The Malcolm Baldrige National Quality Improvement Act of 1987

Award for the best performance

 The Malcolm Baldrige National Quality Improvement Act of 1987

National quality award program:

Encourages to improve quality and

productivity
Rewards the best companies – example
Instructs for quality development
Offers guidance and good practices
Strategy

Customers

Measurement, Analysis, and Knowledge Management

Workforce

Operations

Results
EXCELLENCE

FINLAND
Award and certificate
Three stage assessment: mapping – assessment - final

Three stage assessment:

mapping – assessment – final

Evaluation report

Workshop

Based on EFQM Excellence model

Winners of the Finnish quality award

 1992 Nokia Mobile Phones

 1993 Rautaruukki, Raahen terästehdas
 1995 Gasum Oy
 1997 Valmet Oyj, Järvenpään yksiköt
 1998 Enso Publication Papers Oy Ltd
 1999 Valtra Oy Ab
 2000 Laminating Papers Oy
 2001 Stora Enso Oyj Oulun tehdas
 2002 Ei voittajaa
 2003 Stora Enso Inkerois Oy
 2004 Anttila Oy
 2005 TNT Suomi
 2006 Ei voittajaa
 2007 Stora Enso Oyj, Metsä
 2008 Etelä-Karjalan Osuuskauppa
 2009 Viking Line Abp
 2010 Veikkaus Oy
Winners of the Finnish quality award

 2011 Canon Oy
 2012 Metsä Fibre Oy
 2013 Ei voittajaa
 2014 Fujitsu Finland Oy
 2015 Ei voittajaa
Valtra quality award winner in 1999
Valtra quality award winner in 1999
Valtra quality award winner in 1999

”Why Valtra earned Finnish

quality award?”
 Why Valtra earned the quality award

1. CUSTOMER FOCUS (birth clinic)

2. EXELLENT FINANCIAL RESULT
3. COMMITMENT OF PERSONNEL
4. MANAGEMENT AND LEADERSHIP
 Why Valtra earned the quality award
(jury opinion)

Operation and competitiveness

development were based on:

 Customer orientation
 Continuous improvement
 Skillful, participative and enthusiastic
personnel
 Customer order based production
 Production integrated product development,
marketing and service
 Diverse customer feedback
 Utilization of feedback in strategy work and
in core process development
 Leadership and openness in management
 Persevering development
 Good results
 Significant market position
VALTRA T-model
 2008 winners:
Southern Carelia retail co-operative
Helsinki city library
Fujitsu Finland Oy winner in 2014
EFQM evaluation weights

1. Leadership %
2. Strategy %
3. People %
4. Partnership & Resources %
5. Processes, Products and Services %
6. Customer results %
7. People results %
8. Society results %
9. Business results %
EFQM evaluation weights

1. Leadership 10 %
2. Strategy 8%
3. People 9%
4. Partnership & Resources 9%
5. Processes, Products and Services 14 %
6. Customer results 20 %
7. People results 9%
8. Society results 6%
9. Business results 15 %
LESSONS TO LEARN:
 every country has the national quality award
 European Foundation for Quality Management
(EFQM) model helps to improve the performance of the
company
 First ISO 9001 quality standard in action and then
apply quality award criterion to support continuous
quality system development
 External quality audit beats internal quality belief
 Good results in quality award competition bolsters
up the company image and customer relations

Vita, si scias uti, longa est , Seneca

(Life, if well lived, is long enough)
 Acta est fabula.
Plaudite!
(Play is over. Applaud!)
(emperor Augustus)

© Professor Kalevi Aaltonen

15.8.2016 Aalto University 77