1

Key Learning:



Total Quality Management

European Foundation for Quality Management

Malcolm Baldrige Quality Award

Deming Prize









2
Total Quality (TQ) (1)




A people-focused management system that:



aims at continual increase in customer
satisfaction at continually lower real cost;


aims to meet customers requirements at
the expected time and the right place, and


aims to obey applicable regulations.







3
Total Quality (2)




TQ approach refers to the following:



It works horizontally across functions
and departments;

It involves all employees, top to bottom;


It extends backward and forward to include the
supply chain and the customer chain;

It stresses learning and adaptation to continual
change as keys to organizational success

4
Total Quality Management




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

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



5
EFQM Excellence Model (1)





The EFQM Excellence Model was
introduced at the beginning of 1992 as the
framework for organizational self-assessment
and as the basis for judging entrants to the
European Quality Award


















6
EFQM Excellence Model (2)



A tool for Self-Assessment
A way to Benchmark with
other organisations
A guide to identify areas for Improvement
The basis for a common Vocabulary
and a way of thinking
A Structure for the organisation's
management system






7
Concepts of Excellence (1)



Achieving Balanced Results

Excellent organisations meet their Mission and
progress towards their Vision through planning
and achieving a balanced set of results that
meet both the short and long term needs of their
stakeholders and, where relevant, exceed them.

Focus is on developing the key set of results
required to monitor progress against the
vision, mission and strategy, enabling leaders
to make effective and timely decisions.




8
Concepts of Excellence (2)



Leading with Vision, Inspiration and Integrity

Excellent organisations have leaders who
shape the future and make it happen, acting
as role models for its values and ethics.

The focus is on the ability of leaders to adapt,
react and gain the commitment of all
stakeholders to ensure the ongoing success
of the organisation.








9
Concepts of Excellence (3)



Adding Value for Customers

Excellent organisations know that customers
are their primary reason for being and strive
to innovate and create value for them by
understanding and anticipating their needs
and expectations.

Focus is on clearly defining and
communicating the value proposition and
actively engaging customers in the product
and service design processes.


10
Concepts of Excellence (4)



Managing by Processes

Excellent organisations are managed through
structured and strategically aligned processes
using fact-based decision making to create
balanced and sustained results.

The focus is on how the processes are
designed to deliver the strategy, with end to
end management beyond the classic
boundaries of the organisation.





11
Concepts of Excellence (5)



Succeeding through People

Excellent organisations value their people and
create a culture of empowerment for the
balanced achievement of organisational and
personal goals.

The focus is on creating a balance between
the strategic needs of the organisation and
the personal expectations and aspirations
of the people to gain their commitment and
engagement.


12
Concepts of Excellence (6)



Nurturing Creativity and Innovation

Excellent organisations generate increased
value and levels of performance through
continual and systematic innovation by
harnessing the creativity of their stakeholders.

The concept recognises the need to develop
and engage with networks and the need to
engage all stakeholders as potential sources
of creativity and innovation.





13
Concepts of Excellence (7)



Building Parnerships

Excellent organisations seek, develop and
maintain trusting relationships with various
partners to ensure mutual success (with
customers, society, key suppliers, educational
bodies or Non-Governmental Organisations).

The concept includes partnerships beyond
the supply chain and recognises that these
should be based on sustainable mutual
benefits to succeed.


14
Concepts of Excellence (8)



Taking Responsibility for a Sustainable Future

Excellent organisations embed within their culture
an ethical mindset, clear values and the highest
standards for organisational behaviour, all of
which enable them to strive for economic, social
and ecological sustainability.

The concept focuses on actively taking
responsibility for the organisations
conduct and activities and managing its
impact on the wider community.




15
Levels of Excellence (1)



Committed to Excellence, which
demonstrates that an organization has
started out and passed the first hurdle
of commitment

The emphasis is on helping organizations
understand their current level of performance
and to establish improvement priorities









16
Levels of Excellence (2)



Recognized for Excellence, which indicates
a well-managed organization on the way to
advanced organizational excellence

This level offers applicants the benefits of a
structured approach to identify organizational
strengths and areas for improvement












17
Levels of Excellence (3)



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

Europes most prestigious Award
for organizational excellence
It is the top Level of the EFQM Levels
of Excellence









18
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.









19
EFQM Excellence Model Criteria




ENABLERS RESULTS




People People Results

10% 10%

Leadership Strategy
Processes,
Customer


Products,
Key Results

10% 10% Results

Services

15%


15%


10%




Partnerships Society Results

&Resources 10%

10%





NIG EARNL NDA OIN T NINOVA


20
1. Leadership






Develop the mission, vision, values and ethics
and act as role models

Define, monitor, review and drive the improvement
of the organisations management system and
performance.

Engage with external stakeholders

Reinforce a culture of excellence with
the organisations people

Ensure that the organisation is flexible and
manages change effectively

21
2. Strategy



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

Is based on understanding internal performance
and capabilities

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

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



22
3. People



People plans support the organisations strategy

Peoples knowledge and capabilities are developed

People are aligned, involved and empowered

People communicate effectively throughout
the organisation

People are rewarded, recognised and cared for













23
4. Partnerships and Resources



Partners and suppliers are managed for
sustainable benefit
Finances are managed to secure sustained success

Buildings, equipment, materials and natural
resources are managed in a sustainable way
Technology is managed to support the delivery
of strategy
Information and knowledge are managed to
support effective decision making and to build the
organisational capability







24
5. Processes, Products, Services





Processes are designed and managed to
optimise stakeholder value

Products and Services are developed to
create optimum value for customers

Products and Services are effectively promoted
and marketed

Products and Services are produced, delivered
and managed

Customer relationships are managed and enhanced



25
6. Customer Results





Comprehensively measure and achieve
outstanding results with respect to
organizations customers
Perception Measures
Reputation and image
Product and service value
Product and service delivery
Customer service, relationship and support
Customer loyalty and engagement






26
6. Customer Results (continued)




Comprehensively measure and achieve
outstanding results with respect to
organizations customers
Performance Indicators
Products and services delivery
Customer service, relationships and support
Complaints and compliments
External recognition









27
7. People Results





Comprehensively measure and achieve
outstanding results with respect to
organizations people
Perception Measures

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

Performance Indicators

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











28
8. Society Results





Comprehensively measure and
achieve outstanding results with respect
to society

Perception Measures

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

Performance Indicators

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














29
9. Key Results





Comprehensively measure and achieve
outstanding results with respect to the key
elements of organizations policy and strategy
Key Performance Outcomes

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

Key Performance Indicators

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












30
2012 EFQM Excellence Awards (listed

alphabetically)



BMW Plant Regensburg EFQM Prize Winner
Bosch Tecnologie Diesel e Sistemi Frenanti S.p.A. EFQM Prize
Winner
Coca-Cola Icecek A.S.Ankara Plant EFQM Prize Winner
JSC Medicina EFQM Prize Winner
pom+Consulting EFQM Prize Winner AG
Robert Bosch GmbH Bamberg Plant EFQM Excellence Award
& Prize Winner
VAMED-KMB EFQM Prize Winner
B. Braun Avitum Hungary EFQM Finalist
Dzierzoniow Town Hall EFQM Finalist
Hospital Galdakao-Usansolo Ospitalea (Osakidetza) EFQM
Finalist
Mutualia EFQM Finalist
Nilufer Municipality EFQM Finalist
Wakefield and District Housing(WDH) EFQM Finalist

31
National Quality Award




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

2001: SC OLTCHIM SA Rm Vlcea, SC
Contor ZENNER Romnia SA
2002: SC CASIAL SA Deva
2003: Societatea Comercial Filiala de Distribuie
i Furnizare a Energiei Electrice ELECTRICA
Banat SA; SC ROMAQUA GROUP SA Borsec, SC
SEARCH CORPORATION SRL
2004: BCR
2005: INSTITUTUL NATIONAL DE MEDICINA
AERONAUTICA SI SPATIALA (INMAS)
2006:CN TRANSELECTRICA SA - Bucuresti
2007 & 2008: no winners

32
International Quality Awards




The Malcolm Baldridge National Quality
Award, 1987, USA


The Deming Prize, 1951, Japan

Canadian Awards for Business Excellence

Australian Business Excellence Award, 1988



33
Malcolm Baldridge National Quality

Award Criteria



Leadership
Strategic planning
Customer focus
Measurement, analysis, and knowledge
management
Workforce focus
Operations focus
Results




34
Malcolm Baldridge National Quality

Award Sectors



Education
Health care
Manufacturing
Non-profit/ Government
Service
Small business












35
Deming Prize Criteria




Management policies and their
deployment regarding quality management
New product development and/or work
process innovation
Maintenance and improvement of product
and operational qualities
Establishment of systems for managing quality,
quantity, delivery, costs, safety, environment, etc
Collection and analysis of quality information
and utilization of information technology
Human resources development




36