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 Approaches Deploy Assess and Refine = R = A = D = 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 customeroriented, 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) 15.8.2016 Professor Kalevi Aaltonen Aalto University 77