1 © The Delos Partnership 2003 Business Excellence assessment Comparison of different assessment methodologies

1 © The Delos Partnership 2003

Business Excellence assessmentBusiness Excellence assessment

Comparison of different assessment methodologies


Many sourcesMany sources

1. EFQM - Europe : 1992

2. Baldridge Award - USA

3. Deming Award – Japan : 1951

4. 20 keys

5. Class “A” Operational Excellence

6. Delos Partnership


EFQMEFQM

1. European Foundation for Quality founded in 1988 to “rival” Baldridge and Deming

2. 1992 developed Model for Business Excellence

3. Provides Annual awards for companies in Manufacturing and Service Sectors


EFQM - ScopeEFQM - Scope


EFQM – Key criteriaEFQM – Key criteria

1. Leadership – Excellent leaders develop and facilitate the achievement of the mission and vision

2. Policy and Strategy – develop a stakeholder focused strategy. Policies developed to deliver strategy

3. People – manage,develop and release the full potential of people4. Partnerships and resources – plan and manage external partnerships,

suppliers and internal resources5. Processes – Design and improve processes to fully satisfy and generate

value for customers and stakeholders6. Customer Results – Measure and achieve outstanding results with

respect to customers7. People Results – Measure and achieve outstanding results with respect

to their people8. Society Results – Measure and achieve outstanding results with respect

to society.9. Key Performance Results - The measures are key results defined by the

organisation and agreed in their policy and strategy.


EFQM - observationsEFQM - observations

1. Can be used in all business sectors

2. High level criteria

3. Total Quality Management focus

4. Does not critique quality of Vision or mission

5. Does not provide detailed guidance on best practise


Baldridge AwardBaldridge Award

1. Started in 1988

2. Designed for Manufacturing and Service

3. President of USA presents at special ceremony in Washington


Baldridge Award - scopeBaldridge Award - scope

Organisational Profile:Environment, Relationships and Challenges

Organisational Profile:Environment, Relationships and Challenges

2. Strategic Planning

5. Human Resource Focus

1. Leadership

3. CustomerAnd

Market Focus

6. ProcessManagement

7. BusinessResults

4 Measurement,Analysis and Knowledge Management


Baldridge – key criteriaBaldridge – key criteria

1 Leadership – deployment of values, and measurement of performance and Social responsibility. Vision and mission communicated

2 Strategic Planning – Process and means of deployment

3 Customer and Market Focus – Knowledge of customers and building relationships with customers

4 Measurement, and Analysis and Knowledge Management – Performance measurement and alignment of measures and management of information

5 Human Resource Focus – Compensation and rewards leading to High Performance, encouragement of motivation and employee wellbeing

6 Process Management – Value creation process [customer management etc.] and supporting process development [finance, legal etc]

7 Business Results – review of customer-focused, product and service, financial and market, human resource, organisational effectiveness and social responsibility results


Baldridge - observations Baldridge - observations

1. Focus on Performance Measures and results

2. Detailed supporting questions3. Total Quality Management pedigree4. Applies to Manufacturing,Service

Education and Heath Care sectors5. More strategic than tactical in

approach


Deming AwardDeming Award

1. Developed by the Japanese Union of Scientists and Engineers in 1951

2. Focussed on Total Quality management

12 © The Delos Partnership 2003Core Quality system

Deming Award - ScopeDeming Award - Scope

ManagementPolicies and

Their deployment

ManagementPolicies and

Their deployment

New Product Development, work process

innovation

New Product Development, work process

innovation

MaintenanceAnd

Improvement

MaintenanceAnd

Improvement

HumanResource

Development

HumanResource

Development

InformationAnalysisAnd IT

InformationAnalysisAnd IT

Management system

Management system


Deming – key criteriaDeming – key criteria

1. Management Policies and their deployment : customer driven strategies deployed through the organisation

2. New Product development and process innovation ; active development for customer satisfaction

3. Maintenance and improvement of product and operational qualities : excellent process and continuous improvement

4. Establishment of systems for quality

5. Collection and analysis of quality information : uses IT to get useful information

6. Human Resources development; education and training planned for people


20 keys20 keys

1. Developed by Iwao Kobayashi in Japan

2. Focus on application of Lean thinking to workspace [manufacturing and office]


20 keys – main criteria20 keys – main criteria

1. Cleaning and Organising

2. Rationalising the system

3. Improvement Team Activities

4. Reducing inventory

5. Quick changeover technology

6. Manufacturing Value analysis

7. Zero Monitor Manufacturing

8. Coupled Manufacturing

9. Maintaining Equipment

10. Time Control and commitment

11. Quality Assurance system

12. Developing your suppliers

13. Eliminating Waste

14. Empowering workers

15. Skill Versatility and Training

16. Production Scheduling

17. Efficiency Control

18. Using Information systems

19. Conserving Energy and materials

20. Leading Site and technology


20 keys - observations20 keys - observations

1. Wide ranging questions

2. Describes stages of excellence [ 5 stages for each criteria, and hence 100 points]

3. Covers Factory and office

4. Balance in favour of Lean and Total Quality


Class “A” Operational Class “A” Operational ExcellenceExcellence1. Developed by Oliver Wight in the USA

around 1988

2. Series of questions divided into 5 chapters• Strategy• People and Teams• Continuous Improvement• New Product Development• Planning and Control

3. Focussed on Manufacturing Companies


Class “A” – key criteriaClass “A” – key criteria

1. Strategy• Vision and Mission• Creation of Strategy• Goal Deployment

2. People and Teams• Culture• Trust• Education and Training

3. Continuous Improvement• Total Quality• Customer/Supplier Partnerships• Focus on Customer

4. New Product Development• Meeting Customer Requirements• Partnership with suppliers

5. Planning and Control• Excellence in all planning and execution processes• Data Accuracy• Performance measures


Class “A” ObservationClass “A” Observation

1. Comprehensive Review of company

2. Combines Quality, Lean and Planning and Control

3. Focussed on Manufacturing companies

4. Highly detailed supporting questionnaire

5. A collection of ideas and philosophies, rather than a holistic structure

6. Does not show distinction between process and non-process issues [New Product is a process, and should not be separated out from Planning and control processes]


Delos Business ModelDelos Business Model

DemandDemandDemandDemand SupplySupplySupplySupply

VisionVisionVisionVision

PrioritisationPrioritisationPrioritisationPrioritisation

SupportSupportSupportSupport

InnovationInnovationInnovationInnovation

StrategyStrategyStrategyStrategy


Delos Assessment criteriaDelos Assessment criteria

1. Vision – quality and demonstration of leadership2. Strategy – existence and quality3. Integrated Enterprise Planning – Existence and quality of tolling

business planning process 4. Customer Relationship management – quality of relationship with

customers5. Supplier Relationship Management – quality of relationship with

suppliers6. Innovation – quality of process for introducing and management of all

innovation7. Performance Measurement – modern performance measurement8. Data Accuracy – 98 % plus Data Accuracy9. Continuous Improvement – Proper application of Total Quality, and

Lean philosophies across the business10. People – Culture and style11. Supporting Processes – IT HR and Finance


Delos Assessment criteriaDelos Assessment criteria

1. Extensive and incorporates the major part of other Business Excellence criteria

2. Allows progression from basic [bronze] to excellent [Platinum]

3. Describes 5 stages of development

4. Not too detailed

5. Applies to operational environments, but could easily be applied to service environments


Philosophical differencesPhilosophical differences

Business Excellence has been based on “competing” philosophies

• MRP II – planning founded in 1978 by Oliver Wight in USA; computer developments in 1956 started this

• Total Quality now Six Sigma in effect founded by Deming in 1951

• Just in Time now largely lean started with the Toyota Production system in 1960’s


Philosophical ComparisonPhilosophical Comparison

Planning Processes

[MRP II]

Total Quality

[TQM/Six Sigma]

Lean

[JIT]

Baldridge Medium Strong Medium

EFQM Weak Strong Medium

Deming Medium Strong Medium

20 keys Weak Medium Strong

Class “A” Strong Medium Medium

Delos Strong Strong Strong


Scope of auditScope of audit

All Business Excellence audits cover the following areas :– Leadership and direction around Vision and Mission– Quality of processes – Customer, Supplier,

Innovation and internal supporting processes– Commitment to Continuous Improvement– Performance Measurement and results for business– People and Culture– Relationship with the outside world –

society,environment


Scope ComparisonScope Comparison

Vision,

Mission,

Leadership

Processes Continuous

Process

Improvement

Measures People Social Environment

Baldridge Strong Customer only

Weak Strong Strong Strong

EFQM Strong Strong Medium Strong Strong Strong

Deming Medium Strong on Quality

Strong on Quality

Medium Medium Weak

20 keys Medium Strong on Lean

Strong Medium Medium Weak

Class “A” Medium Strong on planning

Medium Medium Medium Weak

Delos Strong Strong Strong Strong Strong Weak


Delos Partnership LimitedDelos Partnership Limited

Our Approach


Delos Delta ModelDelos Delta Model

OVERCOMINGOVERCOMINGOBSTACLESOBSTACLES

OVERCOMINGOVERCOMINGOBSTACLESOBSTACLES

DDEE

LLIIVV

EERR

SS

DDEE

LLIIVV

EERR

SS

IINN

TTEE

GGRR

AATT

EEDD

IINN

TTEE

GGRR

AATT

EEDD

ManagingManagingThe The

changeschanges

ManagingManagingThe The

changeschanges

ROCEROCEModelModel

ROCEROCEModelModel

BusinessBusinessModelModel

BusinessBusinessModelModel

ChangeChangeModelModel

ChangeChangeModelModel

= change


Delos Delos ROCEROCE model model

ROCEROCE

ProfitProfit CapitalCapital

SalesSales CostsCosts

MaterialMaterial LabourLabour OverheadOverhead

FixedFixed CurrentCurrent

StocksStocks CreditorsCreditors DebtorsDebtorsProjectsProjects


Delos Business ModelDelos Business Model

DemandDemandDemandDemand SupplySupplySupplySupply

VisionVisionVisionVision

PrioritisationPrioritisationPrioritisationPrioritisation

SupportSupportSupportSupport

InnovationInnovationInnovationInnovation

StrategyStrategyStrategyStrategy


Delos Change JourneyDelos Change Journey

MobiliseMobilise DesignDesign CommunicateCommunicate ReviewReviewUnderstandUnderstand

AASSSSEESSSS

AASSSSEESSSS

EDUCATIONSTRATEGY & DESIGN

DEFINE & MEASURE BENEFITS

ORGANISATIONSYSTEMS


Successful Change projects successfully manage the interactions of culture, processes and technology. Failure to do so results in a new approach which is not sustainable for the business in the future.

People, Process and Technology

This means that all decisions regarding the programme must take all three elements into consideration. For instance:

• Project organisation – needs buy-in

• Design needs ways of working to be supported by the software

• Implementation needs Education as well training

• Governance needs to make sure IT systems support business strategy


Delos Change ProcessDelos Change Process

Our experience enables change to

• Organisations

• Systems

• Processes

• Philosophies

• People

Applied to hundreds of companies




AASSSSEESSSS

•Assessment of current position•Initial Education programme •Identify critical priorities for change •Resources required to implement the change

Business Assessment

• Top Management Overview

• Middle Management Overview

• Implementation Workshop

• Steering Committee

•Project Leader

•Project Team



• Integrated Enterprise Planning

• Sales Forecasting and Demand Management

• Supply Chain Techniques

• Programme Management

• Integrated Enterprise Planning

• Sales Forecasting and Demand Management

• Supply Chain Techniques

• Programme Management


AASSSSEESSSS

•Set up the project/programme organisation •Begin to communicate the planned changes•Workshops support development of outlinepolicies, procedures, and organisation

Integrated Integrated Enterprise Enterprise PlanningPlanning

SENIORTEAM REVIEW

PRIORITISATION PROCESS

INNOVATION

CUSTOMERS

SUPPLIERSSTAGE-

GATE

PROJECTMANAGEMENT

SUPPLY CHAINLINKS

FORECASTINGORDER

MANAGEMENT

SALES MANAGEMENT

MASTERSCHEDULING

PURCHASINGPROCESS

CUSTOMERSERVICE

BUDGETSFINANCIALS




AASSSSEESSSS

•Task teams develop the ideas into policies,

procedures, systems and jobs.

•Task teams made up of key business staff

•Prepare communication and training

• Integrated Performance Measurement

• Lean and Agile Management

• Supplier Relationship Management

• Customer Relationship Management

• Integrated Performance Measurement

• Lean and Agile Management

• Supplier Relationship Management

• Customer Relationship Management

Integrated Integrated PerformancePerformanceMeasurementMeasurement

Master Scheduling Master Scheduling CourseCourse

Master ProductionMaster ProductionScheduleSchedule

ManufacturingManufacturingScheduleSchedule

SupplierSupplierScheduleSchedule

Annual Annual Operating Operating

PlanPlan

Sales andSales andOperations PlanningOperations Planning




AASSSSEESSSS

Demand Manager

•Roll out n

ew policies, procedures, systems & jobs

through education & communicatio

n

•The final stage of th

is step is “go live” or c

utover

Master Scheduler

Master Scheduling Master Scheduling CourseCourse

Master ProductionMaster ProductionScheduleScheduleManufacturingManufacturing

ScheduleScheduleSupplierSupplierScheduleSchedule

AnnuAnnual al

OperaOperating ting PlanPlan

Sales andSales andOperations PlanningOperations Planning




AASSSSEESSSS

•Sustain the changes made•Ensure maximum possible benefits•Assessment to identify “next wave” of change

AASSSSEESSSS

Business Assessment


Proposal to AirbusProposal to Airbus

• Let us help you develop an assessment and improvement process for your suppliers based around our approach

• We will enable you to provide a common standard across all of your suppliers, and help in process improvement

• Where you want, we will enable your people to develop the capability to assess, manage and deliver fundamental far reaching change in your supply base

• Our aim would be to improve their Profitability and your Profitability simultaneously


AirbusAirbusSupply BaseSupply Base

Joint ImprovementJoint Improvement

ROCEROCE

ProfitProfit

CapitalCapital

SalesSales

CostsCosts

MaterialMaterial

LabourLabour

OverheadOverhead

FixedFixed

CurrentCurrent

StocksStocks

CreditorsCreditors

DebtorsDebtors

ProjectsProjects

ROCEROCE

ProfitProfit

CapitalCapital

SalesSales

CostsCosts

MaterialMaterial

LabourLabour

OverheadOverhead

FixedFixed

CurrentCurrent

StocksStocks

CreditorsCreditors

DebtorsDebtors

ProjectsProjects


AASSSSEESSSS

AASSSSEESSSS

EDUCATION

STRATEGY & DESIGN

DEFINE & MEASURE BENEFITS

ORGANISATION

SYSTEMS

Documents

1 © The Delos Partnership 2003 Business Excellence assessment Comparison of different assessment methodologies