EFQM Criteria

Total Quality: Customer and People, Cost, Time, Place, Regulations, Suppliers and other Partners, Process.

TQ: Horizontal function, All employees and management levels, Supply chain and customer chain, Other partners, Learning and innovation, Change.

Why the EFQM Excellence Model? 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

1. Leadership: What is leadership? Who are the leaders? What do the leaders do? How do you put Leadership into practice? - Establish a Vision and Mission, Instil Values, Communication, Communication, Communication, Act as “agents of change”/ How do you review and improve Leadership?

2. Strategy: How do you know who your Stakeholders are and their expectations of your organisation? What information, from what sources, do you use to help inform your future direction? How do you develop, review and update your plans for the future? How do you deploy your plans for the future throughout the organisation? How are your plans for the future communicated and implemented?

3. People: Why People? Who are your people? What do People mean to your organisation? How do you manage, develop and involve People in your organisation? Plan, manage and improve your People resources. Develop your People’s knowledge and competencies. Involve and Empower your People. Communicate with your people. Reward, recognise and care for your People. How do you review and improve your People management?

4. Partnerships and Resources: What do we mean by Partnerships? How do I decide who could be a good Partner and supplier for me? What about my current Suppliers? Where do they fit? What are the benefits? - The management of Finances to secure sustained success, The management of Buildings, Equipment and Material in a sustainable way, The management of Technology to support the delivery strategy, The management of Information and Knowledge to support effective decision making

5. Processes, Products, Services: Process, Product and Services in Excellent organisations. What do we mean by Processes? How do I identify my Key Processes? - Building a Process Model of the Organisation, The Process Model and Process Mapping Tools, The Role of Measurement in Process thinking. How do you Manage and Review your Processes?

6. Customer Results: Why are Customer Results Important? Definition of a Customer and Customer Results, Lagging and Leading Indicators Explained, Beyond Customer Satisfaction. What are you Measuring and Reporting? Perception Measures, Performance Indicators, Range of Results (Scope and Segmentation), Setting Targets, Trends, Use of Benchmark Data

7. People Results: Why are People Results Important? How do you Measure and Report People Results? Choosing the right measures, Perception Measures, Performance Measures, The Path to Excellent Results. Communicating and Acting on your People Results?

8. Society Results Why are Society Results Important? Definition of Society, Producing Tangible Results, A Culture of Non-Measurement, Perception Measures, Performance Indicators, Achieving Excellent Society Results. How are you communicating the Results?

9. Key Results: Begin with the End in Mind / The Significance of Results, Definition of a Key Performance Result, Achieving “Excellent” Key Performance Results / Building a Culture of Measurement and Results: Data Collecting, Reporting and Communicating, Employee Involvement and Empowerment, Role of Leaders and Managers, Training for Measurement, Results and Improvement, The Improvement Process.

1. About Quality

There is not a universal definition of quality. People view quality in relation to different criteria based on their individual roles in the organization (the product value chain) or in life.

Quality is a function: A set of tasks to be performed by individuals in their particular job that contributes to the mission or purpose of an organization. Quality is a process: A set of steps, procedures, or policies that defined how a function is to be performed and what results are expected. Quality is an ideology: A set of values or beliefs that guide you in achieving your goals and the organization in the establishment of its mission.

Manufacturing quality – “small Q”

Managing for quality in all organization’s processes – “big Q”

Quality must begin at a personal level (and that means you). Quality will become rooted in the culture of an organization if it is firstly internalized at the personal level. Personal quality is an essential ingredient to make quality happen in the workplace. Meaning for quality at a personal level (you), from three perspectives: way of thinking: personal values and beliefs, way of being: behaviors, attitudes, way of doing: actions/ positions, decisions.

An organization that is committed to quality must apply it at three levels: the organizational level; the process level; and the performer level.

Managing for quality at the organizational level: goal setting, problem solving, performance appraisal, incentive compensation, non-financial rewards, resource allocation, etc.

Managing for quality at the performer level: accuracy, completeness, innovation, timeless, cost, etc.

2. Quality perspectives

Judgmental/ Transcedent Perspective - Quality is synonymous with superiority or excellence; Product-Based Perspective - Quality is a set of measurable attributes of product; User-Based Perspective - Quality is defined as fitness for intended use, or how well the product performs its intended function; Value-Based Perspective - Quality is defined through the relationship of both usefulness or satisfaction to price; Manufacturing-Based Perspective - Quality is conformance to specifications.

A typical manufacturing system includes:

Marketing and sales

Product design and engineering

Purchasing and receiving

Production planning and scheduling

Manufacturing am assembly

Industrial engineering and process design

Finished goods inspection and testing

Packaging shipping, and warehousing

Installation and service

Finance and accounting

Legal services

Critics: Excellence is abstract and subjective, and standards of excellence may vary considerably among individuals; Quality is assumed to be related to price: the higher the price, the higher the quality; A product need not be cheap to be consider a quality product by consumers; The assessment of product attributes may vary considerable among individuals. The products may be fitted for use, but they have to serve different needs and different groups of customers, hence meet different quality standards; Even the products are fit for intended use, the tastes vary among individuals. Incentives are payments to customers to compensate for lower quality; Competition demands that businesses seek to satisfy consumers’ needs at lower prices. Specifications are meaningless, if they do not reflect attributes that are deemed important to the consumer.

1. Marketing and sales – responsibilities for quality: Determining the needs and expectations of consumers; Learning the products and product features that consumers want; Knowing the prices that consumers are willing to pay; Effective market research and active solicitation of customer feedback; Obtain feedback on product performance.

2. Product design and engineering – responsibilities for quality: Develop technical specifications for products and production processes to meet the requirements determined by the marketing function; Develop design tolerances that will assure successful product performance; Conduct measurements to determine process variations from existing specifications; Good design prevent manufacturing defects and service errors; Under-engineered vs. over-engineered products will not meet customer needs/ may not find a profitable market.

3a. Purchasing – responsibilities for quality: Select quality-conscious suppliers; Focus on low-cost procurement and timeliness of deliveries; Ensure the purchase orders clearly define the quality requirements specified by product design; Maintain a clear focus on the quality of purchased goods; Establish long-term supplier relationships based on trust; Provide quality-improvement training to suppliers; Inform suppliers on any problems encountered with their goods.

3b. Receiving – responsibilities for quality: Ensure that the delivered items are of the quality specified by the purchase contract; Use various inspection and testing policies.

4. Production planning and scheduling – responsibilities for quality: Specify long-term and short-term production requirements for filing customer orders and meeting anticipated demand; Assure correct materials, tools and equipment at the proper time and in the proper places in order to maintaining a smooth flow of production; Assure good process technology.

5. Manufacturing and assembly – responsibilities for quality: Ensure that the product is made correctly/ monitor the manufacturing process; Ensure in-line process control (use of statistics); At each production step collect and evaluate performance data; Detect deviations from the process immediately and make necessary adjustments; Make every effort is necessary to identify the causes of defects and eliminate them.

6. Industrial engineering and process design – responsibilities for quality: Develop realistic specifications for products; Select appropriate technologies, equipment, and work methods for producing quality products; Design facilities and arranging equipment to achieve a smooth production flow and reduce opportunities for product damage.

7. Finished goods inspection and testing – responsibilities for quality: Evaluate the overall quality of manufacturing; Discover and help to resolve production problems that may arise; Ensure that no defective items reach the consumer.

8. Packaging, shipping, and warehousing – responsibilities for quality: Ensure accurate labeling - coding and expiration dating of products; Assure that products are not damaged in transit.

9. Installation and service – responsibilities for quality: Ensure adequate instructions for proper installation and operation; Ensure after-the-sale service, specify standards for customer service similar to the dimensions and tolerances prescribed for manufactured goods.

10. Finance and accounting – responsibilities for quality: Obtain funds, control their use, analyze investment opportunities, and ensure that the firm operates cost-effectively and profitably; Authorize sufficient budgeting for equipment, training, other quality assurance activities; Determine costs of poor quality and opportunities to reducing them; Based on accounting data, identify areas for quality improvement: invoice accuracy, time needed to process invoices, time needed to pay bills, etc.

11. Legal services – responsibilities for quality: Guarantee that the firm complies with laws and regulations regarding product labeling, packaging, safety, and transportation; Design its warranties properly; Satisfy its contractual requirements; Have procedures and documentation in place in the event of liability claims.

Two key components of service system quality: Q of human contact: communication, courteousness, delivery time, information etc. /Information technology: computing, communication, data processing, other various means of converting data into useful information that leads to improved quality and productivity.

Quality problems in health care: Avoidable errors: injuries during the course of treatment / Underutilization of services: lack of necessary care or effective interventions / Overuse of services: services that are unnecessary, increase costs, endanger health /Variation of services: regional variations, small-area variations. // Quality in Education: Faculty and staff development and work-life enrichment / Assessment of student learning outcomes / Undergraduate education / Graduate education / Student services / Administrative processes / Technology / Understand students and stakeholder needs / Measuring effectiveness / Planning continuous improvement / Building collaborative relationships.

3.Quality

Quality means fitness for use. Quality Trilogy: Q planning – Q control – Q improvement

Deming 14 points for management: 1."Create constancy of purpose towards improvement". Replace short-term reaction with long-term planning. 2."Adopt the new philosophy". The implication is that management should actually adopt his philosophy, rather than expect the workforce to do so.3."Cease dependence on inspection". If variation is reduced, there is no need to inspect manufactured items for defects, because there won't be any. 4."Move towards a single supplier for any one item." Multiple suppliers mean variation between feedstocks. 5."Improve constantly and forever". Constantly strive to reduce variation. 6."Institute training on the job". If people are inadequately trained, they will not all work the same way, and this will introduce variation. 7."Institute leadership". Deming makes a distinction between leadership and mere supervision. The latter is quota- and target-based. 8."Drive out fear". Deming sees management by fear as counter- productive in the long term, because it prevents workers from acting in the organisation's best interests. 9."Break down barriers between departments". Another idea central to TQM is the concept of the 'internal customer', that each department serves not the management, but the other departments that use its outputs.10."Eliminate slogans". Another central TQM idea is that it's not people who make most mistakes - it's the process they are working within. Harassing the workforce without improving the processes they use is counter-productive. 11."Eliminate management by objectives". Production targets encourage the delivery of poor-quality goods.12."Remove barriers to pride of workmanship". Many of the other problems outlined reduce worker satisfaction. 13."Institute education and self-improvement". 14."The transformation is everyone's job".

Seven Deadly Diseases of Management: Lack of constancy of purpose to plan product and service that will have a market and keep the company in business, and provide jobs; Emphasis on short-term profits: short-term thinking; Lack of personal review systems, or evaluation of performance, merit rating, annual review; Mobility of management; Use of visible figures only for management, with little or no consideration of figures that are unknown; Excessive medical costs; Excessive costs of liability.

Deming’s Chain reaction: Improve quality - Costs decrease because of less rework, fewer mistakes, fewer delay, and better use of time and resources - Productivity improves - Capture the market with better quality and lower price - Stay in business - Provide jobs and more jobs - Return on investments.

Crosby: Quality means conformance to specifications: “Zero defects”, which means “doing right the first time” and any time, if possible; “Quality is free”, and non-quality does cost within organization.

Feigenbaum: Total Quality Control - Theory of 9Ms: Markets; Money; Management; Men and women; Motivation; Materials; Machines and mechanization; Modern information methods; Mounting product requirements.

Ishikawa: Cause and Effect Diagram or “Fishbone Diagram”; Company Wide Quality Control (CWQC), the Japanese version for Total Quality Control.

TOTAL QUALITY: A people-focused management system that:

- aims at continual increase in customer satisfaction at continuallylower real cost;

- aims to meet customer’s requirements at theexpected time and the right place, and

- aims to obey applicable regulations.

TQ in practice means:

• Find out what customers really want and design goods and services to meet these needs;

• Learn how to provide this output as efficiently as possible by eliminating both time and cost;

• Continue to enhance the process by looking for improvements.

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.

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.

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.

Concepts of excellence: 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. 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. 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. 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. 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. 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. 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. 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.

Levels of excellence: 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. 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. 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.

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.

Enablers, Results // Innovation and learning Leadership - Key results

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.

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.

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.

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.

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.

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. Performance Indicators: Products and services delivery, Customer service, relationships and support, Complaints and compliments, External recognition.

People results: Comprehensively measure and achieve outstanding results with respect to organization’s people Perception Measures: Performance Indicators:

Society results: Comprehensively measure and achieve outstanding results with respect to society

Key results: Comprehensively measure and achieve outstanding results with respect to the key elements of organization’s policy and strategy.