Business Excellence assessment
Comparison of different
assessment methodologies
© The Delos Partnership 2003
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Many sources
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EFQM - Europe : 1992
Baldridge Award - USA
Deming Award – Japan : 1951
20 keys
Class “A” Operational Excellence
Delos Partnership
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EFQM
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
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EFQM - Scope
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EFQM – Key criteria
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9.
Leadership – Excellent leaders develop and facilitate the achievement
of the mission and vision
Policy and Strategy – develop a stakeholder focused strategy. Policies
developed to deliver strategy
People – manage,develop and release the full potential of people
Partnerships and resources – plan and manage external partnerships,
suppliers and internal resources
Processes – Design and improve processes to fully satisfy and
generate value for customers and stakeholders
Customer Results – Measure and achieve outstanding results with
respect to customers
People Results – Measure and achieve outstanding results with respect
to their people
Society Results – Measure and achieve outstanding results with respect
to society.
Key Performance Results - The measures are key results defined by the
organisation and agreed in their policy and strategy.
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EFQM - observations
1.
2.
3.
4.
Can be used in all business sectors
High level criteria
Total Quality Management focus
Does not critique quality of Vision or
mission
5. Does not provide detailed guidance on
best practise
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Baldridge Award
1. Started in 1988
2. Designed for Manufacturing and
Service
3. President of USA presents at special
ceremony in Washington
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Baldridge Award - scope
Organisational Profile:
Environment, Relationships and Challenges
2. Strategic
Planning
5. Human
Resource Focus
7. Business
Results
1. Leadership
3. Customer
And
Market Focus
6. Process
Management
4 Measurement,Analysis and Knowledge Management
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Baldridge – key criteria
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Leadership – deployment of values, and measurement of performance
and Social responsibility. Vision and mission communicated
Strategic Planning – Process and means of deployment
Customer and Market Focus – Knowledge of customers and building
relationships with customers
Measurement, and Analysis and Knowledge Management –
Performance measurement and alignment of measures and
management of information
Human Resource Focus – Compensation and rewards leading to High
Performance, encouragement of motivation and employee wellbeing
Process Management – Value creation process [customer management
etc.] and supporting process development [finance, legal etc]
Business Results – review of customer-focused, product and service,
financial and market, human resource, organisational effectiveness and
social responsibility results
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Baldridge - observations
1. Focus on Performance Measures and
results
2. Detailed supporting questions
3. Total Quality Management pedigree
4. Applies to Manufacturing,Service
Education and Heath Care sectors
5. More strategic than tactical in
approach
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Deming Award
1. Developed by the Japanese Union of
Scientists and Engineers in 1951
2. Focussed on Total Quality
management
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Deming Award - Scope
Management
Policies and
Their deployment
Information
Analysis
And IT
New Product
Development,
work process
innovation
Maintenance
And
Improvement
Human
Resource
Development
Management
system
Core
Quality system
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Deming – key criteria
1.
2.
3.
4.
5.
6.
Management Policies and their deployment : customer
driven strategies deployed through the organisation
New Product development and process innovation ;
active development for customer satisfaction
Maintenance and improvement of product and
operational qualities : excellent process and continuous
improvement
Establishment of systems for quality
Collection and analysis of quality information : uses IT to
get useful information
Human Resources development; education and training
planned for people
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20 keys
1. Developed by Iwao Kobayashi in
Japan
2. Focus on application of Lean thinking
to workspace [manufacturing and
office]
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20 keys – main criteria
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7.
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9.
10.
Cleaning and Organising
Rationalising the system
Improvement Team Activities
Reducing inventory
Quick changeover technology
Manufacturing Value analysis
Zero Monitor Manufacturing
Coupled Manufacturing
Maintaining Equipment
Time Control and commitment
11.
12.
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15.
16.
17.
18.
19.
Quality Assurance system
Developing your suppliers
Eliminating Waste
Empowering workers
Skill Versatility and Training
Production Scheduling
Efficiency Control
Using Information systems
Conserving Energy and
materials
20. Leading Site and technology
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20 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
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Class “A” Operational
Excellence
1. 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
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Class “A” – key criteria
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3.
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5.
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Strategy
Vision and Mission
Creation of Strategy
Goal Deployment
People and Teams
Culture
Trust
Education and Training
Continuous Improvement
Total Quality
Customer/Supplier Partnerships
Focus on Customer
New Product Development
Meeting Customer Requirements
Partnership with suppliers
Planning and Control
Excellence in all planning and execution processes
Data Accuracy
Performance measures
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Class “A” Observation
1.
2.
3.
4.
5.
6.
Comprehensive Review of company
Combines Quality, Lean and Planning and Control
Focussed on Manufacturing companies
Highly detailed supporting questionnaire
A collection of ideas and philosophies, rather than a
holistic structure
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]
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Delos Business Model
Vision
Strategy
Prioritisation
Demand
Supply
Innovation
Support
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Delos Assessment criteria
1.
2.
3.
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5.
6.
7.
8.
9.
10.
11.
Vision – quality and demonstration of leadership
Strategy – existence and quality
Integrated Enterprise Planning – Existence and quality of tolling
business planning process
Customer Relationship management – quality of relationship with
customers
Supplier Relationship Management – quality of relationship with
suppliers
Innovation – quality of process for introducing and management of
all innovation
Performance Measurement – modern performance measurement
Data Accuracy – 98 % plus Data Accuracy
Continuous Improvement – Proper application of Total Quality, and
Lean philosophies across the business
People – Culture and style
Supporting Processes – IT HR and Finance
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Delos 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
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Philosophical 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
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Philosophical 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
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Scope 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
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Scope 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
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Delos Partnership Limited
Our Approach
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Delos Delta Model
ROCE
Model
Business
Model
Managing
The
changes
= change
Change
Model
OVERCOMING
OBSTACLES
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Delos ROCE model
ROCE
Profit
Sales
Material
Capital
Costs
Labour
Fixed
Overhead
Projects
Stocks
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Current
Creditors
Debtors
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Delos Business Model
Vision
Strategy
Prioritisation
Demand
Supply
Innovation
Support
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Delos Change Journey
Understand
A
S
S
E
S
S
Mobilise
Design
Communicate
Review
EDUCATION
STRATEGY & DESIGN
DEFINE & MEASURE BENEFITS
ORGANISATION
SYSTEMS
A
S
S
E
S
S
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People, Process and Technology
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.
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
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Delos Change Process
Our experience enables change to
• Organisations
• Systems
• Processes
• Philosophies
• People
Applied to hundreds of companies
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Delos Change Journey
Understand
Mobilise
Design
Communicate
• Steering Committee
Business
Assessment
A
S
S
E
S
S
Review
•Project Leader
•Assessment of current position •Project Team
•Initial Education programme
•Identify critical priorities for change
•Resources required to implement the change
• Top Management Overview
• Middle Management Overview
• Implementation Workshop
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Delos Change Journey
Understand
Mobilise
FINANCIALS
SENIOR
TEAM REVIEW
Design
Communicate
BUDGETS
Review
PRIORITISATION PROCESS
SUPPLY CHAIN
LINKS
STAGEGATE
A
S
S
E
S
S
I
N
FORECASTING
N
O
V
A
PROJECT
T MANAGEMENT
I
O
N
Integrated
Enterprise
Planning
ORDER
C
U MANAGEMENT
S
T
O
CUSTOMER
M
SERVICE
E
R
S
SALES
MANAGEMENT
S
MASTER
U SCHEDULING
P
P
L
I
E PURCHASING
PROCESS
R
S
•Set up the project/programme organisation
•Begin to communicate the planned changes
•Workshops support development of outline
policies, procedures, and organisation
• Integrated Enterprise
Planning
• Sales Forecasting and
Demand Management
• Supply Chain Techniques
© The
Delos Partnership 2003
• Programme
Management
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Delos Change Journey
Understand
A
S
S
E
S
S
Mobilise
Design
Communicate
Review
Master Scheduling
Course
Integrated
Performance
Measurement
Annual
Operating
Plan
Sales and
Operations Planning
Master Production
Schedule
Supplier
Manufacturing
Schedule
Schedule
• Integrated Performance
Measurement
• Lean and Agile Management
• Supplier Relationship
Management
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• Customer©Relationship
Management
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Delos Change Journey
Understand
A
S
S
E
S
S
Mobilise
Design
Communicate
Master Scheduling
Course
Review
Demand Manager
Annua
l
Operat
Sales
and
Master Production
ing Planning
Operations
Supplier
Manufacturing
Schedule
Plan
Schedule Schedule
Master Scheduler
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Delos Change Journey
Understand
Mobilise
Design
Communicate
Review
Business
Assessment
A
S
S
E
S
S
•Sustain the changes made
•Ensure maximum possible benefits
•Assessment to identify “next wave”
of change
© The Delos Partnership 2003
A
S
S
E
S
S
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Proposal 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
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Joint Improvement
ROCE
Profit
Sales
ROCE
Capital
Costs
Material Labour Overhead Projects
Profit
Fixed
Current
Stocks
Creditors
Sales
Debtors
Costs
Material Labour Overhead Projects
Supply Base
Understand
A
S
S
E
S
S
Mobilise
Capital
Fixed
Current
Stocks
Creditors
Debtors
Airbus
Design
Communicate
Review
EDUCATION
STRATEGY & DESIGN
DEFINE & MEASURE BENEFITS
© TheORGANISATION
Delos Partnership 2003
SYSTEMS
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A
S
S
E
S
S