Industrial Excellence Award UK 2016
Application Form
Academic Partners
About the Award
Since 1995, the Industrial Excellence Award (IEA) competition benchmarks Management Quality for
European competitiveness in the industrial and service sectors. This competition focuses on Strategy
Deployment, that is, how organizations align distributed activities and knowledge to achieve common
strategic goals. For further information, please visit our website: http://uk.industrial-excellence-award.eu.
All European business units using industrial techniques for their products or services are encouraged
to take part in this survey. The business units (BUs) must be headquartered in a West European
country. Sister plants in Eastern Europe are also encouraged to apply. This can include high-volume
production or customized project business. The participation is free of charge. Business units with
multiple sites should provide an overview of their supply chain network, specify the role of each
operating unit and report their performance. Lead plants may be followed up by a visit. We recommend
that your answers are to the point and rather brief. You may add supporting material in an appendix.
All responses to this IEA Application Form will be kept confidential. An international jury of operations
management professors from our academic partners INSEAD, WHU, CJBS, HEC, IESE, IMD, Koç,
RSM, SDA Bocconi and TU/e will determine the finalists for the 2016 Industrial Excellence Award.
Finalists will receive a site visit of both academics from the participating business schools and
representatives of our media partners. Each participant will receive personalized feedback as a
suggestion for further improvement.
A national champion and a select number of laureates in each country will be chosen by the jury. An
overall champion will be selected during a management conference in the fall of 2016 and receive the
“Industrial Excellence Award Europe”. Our media partners will report on the competition and the events
in the spring of 2016.
How to apply?
Please submit your application pack consisting of the following documents to the appropriate country
contact below by April 30st, 2016.
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Completed application form
Scorecard of key KPIs
Flow chart of your supply chain and a footprint of your global production network OR a flow
chart of your service profit chain
Sustainability report
Basic organizational chart
Contact UK
Prof. Jane Davies, University of Cambridge, Cambridge Judge Business School, Trumpington Street,
Cambridge CB2 1AG, United Kingdom, j.davies@jbs.cam.ac.uk, +44.(0)1223.339651
Company Information (please complete)
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Company
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Business unit representative
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Business unit
______________________________________
Position
______________________________________
Website
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Telephone
______________________________________
Address
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Fax
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Address (continued)
______________________________________
E-Mail
IEA 2016
© 2015 INSEAD, WHU, CJBS, HEC, IESE, IMD, Koç, RSM, SDA Bocconi, TU/e
1.
Instructions
The Management Quality framework developed by Loch et al. (2003) serves as basis for the evaluation and feedback of the IEA. A
fundamental part of this framework is the Process Model as depicted below. It identifies five fundamental processes of a typical
industrial unit offering both products and / or value-added services to customers.
Management Quality is defined as a coherent system of strategy setting and deployment, delegation, participation, performance
measurement, communication and employee development. Integration, above all, serves as strategy alignment of bottom-up
initiatives. Goal is the tapping of creativity of frontline employees and the swift execution of strategic projects. Excellent
manufacturing and service firms achieve high output growth and superior customer satisfaction by applying Management Quality to
all of their core processes simultaneously.
The IEA application form clusters questions regarding these five core processes into four different sections. These sections
modularize the form and help to accommodate different types of business units (e.g., pure manufacturing unit without value-added
services, pure service unit without manufacturing processes, or “hybrid” manufacturing unit offering both products and services).
Before proceeding, please select your type of organization in the following table and find instructions on how to respond to the
following sections:
2.
Type of Business Unit
Instructions
Manufacturing
with value-added services
Please fill out all sections of the IEA Application
Form.
Manufacturing
without value-added services
Please skip section 3.2.
Services
without manufacturing activities
Please skip section 3.1.
Business Model
Business Unit Strategy
Succinctly (in 100 words or less) summarize the goals of your Business Unit.
What products and / or services - as seen by the customer - do you offer?
Who are your customers? What are your customer segments?
IEA 2016
© 2015 INSEAD, WHU, CJBS, HEC, IESE, IMD, Koç, RSM, SDA Bocconi, TU/e
What are the core activities that you master to deliver products and services (see 2.1.2)?
What is it that differentiates your business unit from your competitors as viewed by the customer?
Business Unit Data
Business Unit specific measures
Measure
2 years ago
Current year
Target in 2 years
a. Sales Revenue (currency:_______)
b. Total assets
c. EBITDA
d. Market share (%)
Specify the market:
e. Customer satisfaction (% giving
highest marks)
f. Customer retention (% of clients with
repeat business)
g. Number of employees in BU:
full time:
contract employees:
How do you measure your BU’s performance? Attach a KPI scorecard and identify the 3 most important
KPIs for current strategy below, define them (dimension) and show how they have evolved.
Measure (in descending order)
2 years ago
Current year
Target in 2 years
a.
b.
c.
Sustainability
What key projects did you carry out in the last two years to improve the ecological sustainability of your
products and services, production and service processes respectively? How large was the investment?
Products and services
Production and service processes
What key projects did you carry out in the last two years to improve your social responsibility?
How do you measure your BU’s progress for sustainability? Please indicate no more than 3 of your most
important KPIs, define them (dimension) and show how they have evolved.
Measure (in descending order)
2 years ago
Current year
Target in 2 years
a.
b.
c.
3.
Core Processes
Supply Chain Management (skip if service company)
Please list the steps of your key production process and indicate how much inventory / capacity you keep
(refer to a representative product line).
What important activities have you outsourced to suppliers or partners?
What projects have you conducted to improve supply chain efficiency across firm boundaries (e.g., with
suppliers or channels)? How do you measure the success of these projects?
IEA 2016
© 2015 INSEAD, WHU, CJBS, HEC, IESE, IMD, Koç, RSM, SDA Bocconi, TU/e
Please indicate the following KPIs for your main product.
Measure
2 years ago
Current year
Target in 2 years
a. On-time delivery rate (% of units
delivered)
b. Average customer order to delivery
(OTD) lead time (in days) for
- standardized products
- customized products
c. Average time for value added
operations (in % of OTD lead time)
d. Order-to-cash-cycle (in days)
e. Inventory turns (per year)
f. Complaint ratio (# per million units
delivered)
g. Internal defects (# per million units)
h. Capability to change output volume
within a week (output in %)
i. Annual output volume (in units)
j. Number of suppliers
How do you measure your supply chain performance? Please indicate no more than 3 of your most
important KPIs, define them (dimension) and show how they have evolved.
Measure (in descending order)
2 years ago
Current year
Target in 2 years
a.
b.
c.
Service Operations Management (skip if manufacturing company)
Please list the steps of your key service process - including back office and customer-facing activities and indicate how much capacity you keep (refer to a representative service).
What important activities have you outsourced to suppliers or partners?
What projects have you conducted to improve your service delivery performance (e.g., with suppliers or
channels)? How do you measure the success of these projects?
How complementary are your services and products? What is the role that services play for your
competitiveness / for your business? (if applicable)
Service Performance Measurement
Measure
a. Revenue from services (in % of
overall revenue)
b. Employees in services
IEA 2016
2 years ago
Current year
Target in 2 years
© 2015 INSEAD, WHU, CJBS, HEC, IESE, IMD, Koç, RSM, SDA Bocconi, TU/e
Please indicate the following KPIs for your main service.
Measure
2 years ago
Current year
Target in 2 years
a. On-time delivery rate (% of units
delivered)
b. Average customer order to delivery
(OTD) lead time (in days) for
- standardized service
- customized service
c. Average time for value added
operations (in % of OTD lead time)
d. Order-to-cash-cycle (in days)
e. Cost of sales (per year)
f. Complaint ratio (# per million units
delivered)
g. Internal defects (# per million units)
h. Capability to change output volume
within a week (output in %)
i. Annual output volume (in units)
j. Number of suppliers
How do you measure service performance? Please indicate no more than 3 most important KPIs, define
them (dimension) and show how they have evolved.
Measure (in descending order)
2 years ago
Current year
Target in 2 years
a.
b.
c.
New Technology, Products / Services & Process Development (NTPSPD) Process
NTPSPD Performance Measurement
Measure
2 years ago
Current year
Target in 2 years
a. Revenue of new products / services
(in % of overall revenue)
b. Define new products / services:
introduced within the last ___ years
c. Total annual budget invested in new
technologies, products / services &
processes
d. Number of projects per year
What key projects did you carry out in the last two years that involved the deployment of new technology?
Of new products / services? Of new processes?
How do you measure your NTPSPD process performance? Please indicate no more than 3 of your most
important KPIs and define them (dimension) and show how they have evolved.
Measure (in descending order)
2 years ago
Current year
Target in 2 years
a.
b.
c.
What key NTPSPD activities are managed within your business unit? If some key NTPSPD activities are
done elsewhere in the company’s network or by external partners, why do you not do them?
What management process(es) do you use for NTPSPD (e.g., stage gate process, waterfall process,
formalized project management)? Describe briefly.
What key initiatives did you carry out to improve NTPSPD process performance?
IEA 2016
© 2015 INSEAD, WHU, CJBS, HEC, IESE, IMD, Koç, RSM, SDA Bocconi, TU/e
Mobilization of Employees
Can you summarize a strategic project that was initiated i) by top management, ii) by middle management,
and iii) by the shop floor?
What fraction of strategic projects originated from ideas of top management?
What are the three main topics discussed with the workers’ council in the past 12 months?
How do you motivate employees to contribute to improvements?
Measurement of employee participation
Measure
2 years ago
Current year
Target in 2 years
a. Employees that directly contributed to
improvement projects (in %)
b. Share of bottom up productivity
improvements (in %)
c. Days of training per employee / year
d. Absenteeism due to illness (in % of
overall days, i.e., 365)
e. Annual productivity improvement (in %)
f. Define productivity measure in 3.4.5.e
What fraction of productivity improvements results from:
____________ % Shop floor reorganization
____________ % Technology change
____________ % Economies of scale
____________ % Product mix changes (e.g., SKU rationalization)
____________ % Product changes
____________ % Other, specify:
How do you train your employees and who do you develop in order to be able to fulfil management
positions? What fraction of middle level managers were recruited internally?
How do you set strategic goals and select key strategic projects? (Explain briefly who is involved.)
IEA 2016
© 2015 INSEAD, WHU, CJBS, HEC, IESE, IMD, Koç, RSM, SDA Bocconi, TU/e
Industrial Excellence –
Management Quality in Manufacturing
Loch, C. H., Van der Heyden, L., Van Wassenhove, L. N., INSEAD,
Fontainebleau, France; Huchzermeier, A., WHU – Otto Beisheim School of
Management, Vallendar, Germany; Escalle, C., Deutsche Telekom France,
Paris, France
Springer Verlag, Heidelberg
2003, 248 pages, 70 images
ISBN 3-540-00254-5
What does excellent manufacturing management mean? Management texts to date have emphasized
that it is, above methods such as SPC or TQM, a matter of "intangibles" and "culture". This book takes
the myth out of management excellence; it can be learned and practiced: 1. Manage the four core
processes, strategy formulation and deployment, product innovation, process development, and the
supply chain, and 2. Pay attention to the seven dimensions of management quality, direction setting,
integration, delegation, communication, participation, measurement, and employee development. Thus,
we argue that an excellent manufacturing manager can move to a plant in a different industry and
become, after an appropriate time to learn its specific technologies, an excellent manufacturing manager
there as well. This book explains management quality and demonstrates how it is implemented, with nine
plant tours through world-class factories from different industries.
Management Quality and Competitiveness –
Lessons from the Industrial Excellence Award
Loch, C. H., Chick, S. E., INSEAD, Fontainebleau, France; Huchzermeier, A.,
WHU – Otto Beisheim School of Management, Vallendar, Germany
Springer Verlag, Heidelberg
2008, 156 pages, 38 images
ISBN 978-3-540-79183-6
This book showcases examples of excellent manufacturing companies who have succeeded in creating
value and job growth in Western Europe. The examples show managers of industrial firms how a clearly
articulated strategic position can be combined with excellent execution to achieve competitiveness in
Europe, in spite of the usually cited disadvantage of high labor costs and rigidity. Not every company is
alike — strategic positions differ, and the means of execution differ, but what is common is a clear plan
together with mobilization of all employees to apply their abilities in supporting this common plan. The
book is indispensable reading for all managers that are interested in improving competitiveness.
IEA 2016
© 2015 INSEAD, WHU, CJBS, HEC, IESE, IMD, Koç, RSM, SDA Bocconi, TU/e