Bharat Heavy Electricals Limited, PS Bharat Heavy Electricals Limited, PS-- NR, NOIDA NR, NOIDA

Business Excellence Management

1 Basic Concepts of Excellence
Bharat Heavy Electricals Limited, PS Bharat Heavy Electricals Limited, PS-- NR, NOIDA NR, NOIDA
Functions of management
Retainment: To maintain levels of Retainment: To maintain levels of
performance already achieved
Improvement (Incremental): Improve Improvement (Incremental): Improve
levels of performance achieved in the
past past
Breakthrough (Quantum jump):
I ti i i t Innovation in improvement
2 Basic Concepts of Excellence
Bharat Heavy Electricals Limited, PS Bharat Heavy Electricals Limited, PS-- NR, NOIDA NR, NOIDA
Total Quality Management - Dimensions
Total : Balancing and Satisfying
needs of all Stake Holders
Quality : Sustained Customer Focus y
Management : Continuous Improvement g p
with Fact and Data based
decisions in a Planned &
Systematic way
3 Basic Concepts of Excellence
Systematic way
Bharat Heavy Electricals Limited, PS Bharat Heavy Electricals Limited, PS-- NR, NOIDA NR, NOIDA
TQM - real meaning
What we aspire to be What we aspire to be
What we have achieved
What are the gaps
What needs to be done
4 Basic Concepts of Excellence
Bharat Heavy Electricals Limited, PS Bharat Heavy Electricals Limited, PS-- NR, NOIDA NR, NOIDA
TQM - Means

Improvement

Improvements over
Improvement Improvement
C i Continuous Improvement
To achieve Excellence
5 Basic Concepts of Excellence
To achieve Excellence
Bharat Heavy Electricals Limited, PS Bharat Heavy Electricals Limited, PS-- NR, NOIDA NR, NOIDA
Improvement or Excellence of What?
Customer Satisfaction
People Satisfaction
Business Results
i i l

Non financial

Financial

Impact on Society
6 Basic Concepts of Excellence
Bharat Heavy Electricals Limited, PS Bharat Heavy Electricals Limited, PS-- NR, NOIDA NR, NOIDA
The Models
7 Basic Concepts of Excellence
Bharat Heavy Electricals Limited, PS Bharat Heavy Electricals Limited, PS-- NR, NOIDA NR, NOIDA
Recognition of Excellence
Deming Prize (J apan); First prize:1951
Malcolm Baldridge award (USA); First
award:1987
European Excellence award (Europe);
First award:1992 First award:1992
CII-EXIM Award for Business Excellence
(India);Institutionalised:1994; First award: (India);Institutionalised:1994; First award:
1997(Hewlett Packard India)
8 Basic Concepts of Excellence
Bharat Heavy Electricals Limited, PS Bharat Heavy Electricals Limited, PS-- NR, NOIDA NR, NOIDA
9 Basic Concepts of Excellence
Bharat Heavy Electricals Limited, PS Bharat Heavy Electricals Limited, PS-- NR, NOIDA NR, NOIDA
EFQM Model for Business Excellence
3. People
90 Points
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e 7. People Results
90 Points
Enablers
Results
2. Policy & Strategy
80 Points
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6. Customer Results
200 Points
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4.Partnerships and
Resources
90 Points
5
.
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8. Society Results
60 Points
9
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Enablers 500 points
(50%)
Results 500 points
(50%)
Innovation & Learning
Excellent Results with respect to Performance,
Customers, People, and Society are achieved through
Leadership driving Policy & Strategy People
10 Basic Concepts of Excellence
Leadership driving Policy & Strategy, People,
Partnerships & Resources, and Processes.
Bharat Heavy Electricals Limited, PS Bharat Heavy Electricals Limited, PS-- NR, NOIDA NR, NOIDA
EFQM Model - Enablers
Enablers are Concerned with HOW
Organisation achieves desired Results Organisation achieves desired Results
Information is required on :
Excellence of Approach (to enablers)
D l t (I l t ti ) f Deployment (Implementation) of
Approach
Vertically through all Levels Vertically through all Levels
Horizontally through all Areas and Activities
Assessment & Review (Improvement) of
11 Basic Concepts of Excellence
Assessment & Review (Improvement) of
approach
Bharat Heavy Electricals Limited, PS Bharat Heavy Electricals Limited, PS-- NR, NOIDA NR, NOIDA
EFQM Model - Results
Results are Concerned with WHAT
the Organisation has Achieved and is
Achieving
Data is required on :
Organisations Actual Performance
Organisations Own Targets
Performance of Competitors
Performance of External Organisations
12 Basic Concepts of Excellence
Bharat Heavy Electricals Limited, PS Bharat Heavy Electricals Limited, PS-- NR, NOIDA NR, NOIDA
Enablers: Structure of criteria
1e
1d
1c
1.
Leadership
c
1b
1a
p
Areas to address/ Bullet Areas to address/ Bullet
points (suggestive)
5e
5.
Processes
5d
5c
5b
5a
13 Basic Concepts of Excellence
Processes
Bharat Heavy Electricals Limited, PS Bharat Heavy Electricals Limited, PS-- NR, NOIDA NR, NOIDA
EFQM Model 2003 - The criterion parts Q p
Enablers Criterion Parts
1. Leadership 5
2. Policy & Strategy 4
3. People 5
4 Partnerships &Resources 5 4. Partnerships & Resources 5
5. Processes 5 24
Results 08
6 Customer Results 2
32
6. Customer Results 2
7. People Results 2
8. Society Results 2
14 Basic Concepts of Excellence
8 Soc ety esu ts
9. Key Performance Results 2
Bharat Heavy Electricals Limited, PS Bharat Heavy Electricals Limited, PS-- NR, NOIDA NR, NOIDA
Enablers Enablers- - Criteria for Marking Criteria for Marking gg
1. How Sound is the approach (Procedure/ Process) to
address the Model requirement?
2. Is the Approach Implemented in all areas- product and
functional areas?
3. Any Measures are there to see whether Approach is
giving the desired Results?
4. Are Improvements being brought about in the
Approach- or the working continues to be the same over
th ? the years?
5.Are there any learnings from internal/ external failures
d A l i f h i i
15 Basic Concepts of Excellence
and successes. Any learnings from other organisations
to improve the processes or products or services
Bharat Heavy Electricals Limited, PS Bharat Heavy Electricals Limited, PS-- NR, NOIDA NR, NOIDA
Results Results- - Criteria for marking Criteria for marking
Trends: Positive/ sustained good
performance performance
Targets: achieved and are appropriate
C i (BENCHMARKING) ith Comparison (BENCHMARKING): with
external organisations and compare well
with industry average or best in class with industry average or best in class
Causes: results are caused by approach
Indications that Negative Trends and those Indications that Negative Trends and those
not meeting targets are understood
16 Basic Concepts of Excellence
Bharat Heavy Electricals Limited, PS Bharat Heavy Electricals Limited, PS-- NR, NOIDA NR, NOIDA
Results Results- - Criteria for marking Criteria for marking
Scope:
Extent to which the Results cover all
relevant areas of the Company (products,
market, customers etc.)
Extent to which a full range of Results Extent to which a full range of Results,
relevant to the criterion are presented
Results are appropriately segmented
(product wise, market/ business sector,
17 Basic Concepts of Excellence
employee cadre, etc)
Bharat Heavy Electricals Limited, PS Bharat Heavy Electricals Limited, PS-- NR, NOIDA NR, NOIDA
What Can I Do as an What Can I Do as an
Individual for Business
Excellence (TQM)
18 Basic Concepts of Excellence
Bharat Heavy Electricals Limited, PS Bharat Heavy Electricals Limited, PS-- NR, NOIDA NR, NOIDA
My Role:
Remember Vision, Mission and Values evolved at
Corporate level- They should guide our thoughts and Corporate level- They should guide our thoughts and
actions.
Get awareness on the Balanced Score Card of your y
area- It translates Vision and Mission into Objectives
and defines targets for these.
Know CRITICAL SUCCESS FACTORS (CSFs) for the
unit. They are prioritized factors to realize the long term
objectives Work for improvement in Key processes objectives. Work for improvement in Key processes
and Measures for CSFs in your area.
5S- is the Foundation for Business Excellence; Keep
19 Basic Concepts of Excellence
; p
your work place, machines and equipment clean
Fundamental Concepts of Excellence
EFQM Model for Business Excellence
3. People
90 Points
a
n
c
e 7. People Results
90 Points
Enablers
Results
2. Policy & Strategy
80 Points
r
o
c
e
s
s
e
s
0

P
o
i
n
t
s
6. Customer Results
200 Points
e
r
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s
0

P
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0

P
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i
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t
s
4.Partnerships and
Resources
90 Points
5
.
P
r
1
4
0
8. Society Results
60 Points
9
.

K
e
y

P
e
R
1
5
0
1
.

L
e
1
0
Enablers 500 points
(50%)
Results 500 points
(50%)
Innovation & Learning
Excellent Results with respect to Performance,
Customers, People, and Society are achieved through
Leadership driving Policy & Strategy People Leadership driving Policy & Strategy, People,
Partnerships & Resources, and Processes.
Fundamental Concepts of
Excellence Excellence
Results Orientation
Customer Focus
Corporate Social
Responsibility
Leadership &
Constancy of
Purpose
Partnership
Development
Purpose
People Development &
Development
Management by
Processes and Facts
People Development &
Involvement
Continuous Learning,
There is no significance intended in
the order of the concepts The list
g,
Innovation &
Improvement
the order of the concepts. The list
is not meant to be exhaustive and
they will change as excellent
organisations develop and
improve.
Fundamental Concepts of
Excellence Excellence
Results Orientation
Excellence is achieving results that delight all the organisation's stakeholders Excellence is achieving results that delight all the organisations stakeholders.
Customer Focus
Excellence is creating sustainable customer value.
Leadership and Constancy of Purpose
Excellence is visionary and inspirational leadership, coupled with constancy of purpose.
Management by Processes and Facts
Excellence is managing the organisation through a set of interdependent and
interrelated systems, processes and facts.
People Development and Involvement
Excellence is maximising the contribution of employees through their development
and involvement and involvement.
Fundamental Concepts of
Excellence Excellence
Continuous Learning, Innovation and Improvement
Excellence is challenging the status quo and effecting change by utilising learning to
create innovation and improvement opportunities.
Partnership Development
Excellence is developing and maintaining value-adding partnerships.
Corporate Social Responsibility
Excellence is exceeding the minimum regulatory framework in which the organisation
operates and to strive to understand and respond to the expectations of their
stakeholders stakeholders
Fundamental Concepts of
Excellence Excellence
Results Orientation
The Concept
Excellence is achieving results that delight all the organisations
stakeholders stakeholders.
How the Concept is put into practice
In the fast changing environment that is todays world, Excellent
organisations are agile flexible and responsive as stakeholder needs organisations are agile, flexible and responsive as stakeholder needs
and expectations change, often frequently and quickly. Excellent
organisations measure and anticipate the needs and expectations of
their stakeholders, monitor their experiences and perceptions, and
monitor and review the performance of other organisations monitor and review the performance of other organisations.
Information is gathered from both current and future stakeholders.
This information is used in order to set, implement and review their
policies strategies objectives targets measures and plans for the short
P & S to
achieve
Results
policies, strategies, objectives, targets, measures and plans, for the short,
medium and longer term. The information gathered also helps the
organisation to develop and achieve a balanced set of stakeholder
results.
Fundamental Concepts of
Excellence Excellence
Customer Focus
The Concept
Excellence is creating sustainable customer value.
How the Concept is put into practice
Excellent organisations know and intimately understand their customers.
They understand that customers are the final arbiters of product and
service quality. They also understand that customer loyalty, retention and q y y y y,
market share gain is maximised through a clear focus on the needs and
expectations of both existing and potential customers. They are
responsive to those customers present needs and expectations. Where
appropriate they segment their customers to improve the effectiveness of pp p y g p
their response. They monitor competitor activity and understand their
competitive advantage. They effectively anticipate what customers future
needs and expectations will be and act now in order to meet and where
possible exceed them. They monitor and review the experiences and p y p
perceptions of their customers and where things go wrong they respond
quickly and effectively. They build and maintain excellent relationships with
all their customers.
Fundamental Concepts of
Excellence Excellence
Leadership and Constancy of Purpose
The Concept
Excellence is visionary and inspirational leadership, coupled with
constancy of purpose.
How the Concept is put into practice
Excellent organisations have leaders who set and communicate a clear
direction for their organisation. In doing so they unite and motivate other leaders
to inspire their people. They establish values, ethics, culture and a governance
structure for the organisation that provides a unique identity and attractiveness
to stakeholders. Leaders at all levels within these organisations constantly drive
and inspire others towards excellence and in so doing display both role model
behaviour and performance. They lead by example, recognising their
stakeholders and working with them on joint improvement activity. During times
of turbulence they display a constancy of purpose and steadiness that
inspires the confidence and commitment of their stakeholders. At the same
time they demonstrate the capability to adapt and realign the direction of their
organisation in the light of a fast moving and constantly changing external
environment, and in so doing carry their people with them.
Fundamental Concepts of
Excellence Excellence
Management by Processes and Facts
The Concept
Excellence is managing the organisation through a set of interdependent and
interrelated systems, processes and facts.
How the Concept is put into practice
Excellent organisations have an effective management system based upon, and
designed to deliver, the needs and expectations of all stakeholders. The systematic
implementation of the policies, strategies, objectives and plans of the organisation are
enabled and assured through a clear and integrated set of processes. These
processes are effectively deployed, managed and improved on a day to-day basis.
Decisions are based on factually reliable information relating to current and
projected performance, process and systems capability, stakeholder needs,
expectations and experiences, and the performance of other organisations, including,
where appropriate, that of competitors. Risks are identified based on sound
performance measures and effectively managed. The organisation is governed in a
highly professional manner, meeting and exceeding all corporate external requirements.
Appropriate prevention measures are identified and implemented inspiring and
maintaining high levels of confidence with stakeholders.
Fundamental Concepts of
Excellence Excellence
People Development and Involvement
The Concept
Excellence is maximising the contribution of employees through their
development and involvement development and involvement.
How the Concept is put into practice
Excellent organisations identify and understand the competencies needed, both now and
in the future in order to implement the organisations policies strategies objectives and in the future, in order to implement the organisations policies, strategies, objectives and
plans. They recruit and develop their people to match these competencies and actively
and positively support them throughout. Personal development is promoted and supported
allowing people to realise and unlock their full potential. They prepare people to meet
and adapt to the changes required of themboth in terms of operational changes and and adapt to the changes required of them both in terms of operational changes and
personal capabilities. They recognise the increasing importance of the intellectual capital
of their people and use their knowledge for the benefit of the organisation. They seek to
care, reward and recognise their people in a way that builds their commitment and
encourages their loyalty to the organisation They maximise the potential and the active encourages their loyalty to the organisation. They maximise the potential and the active
involvement of their people through shared values and a culture of trust, openness and
empowerment. They utilise that involvement to generate and implement ideas for
improvement.
Fundamental Concepts of
Excellence Excellence
Continuous Learning, Innovation and Improvement
The Concept
Excellence is challenging the status quo and effecting change by utilising
learning to create innovation and improvement opportunities. g
How the Concept is put into practice
Excellent organisations continuously learn, both from their own activities and
performance and from that of others. They rigorously benchmark, both internally performance and from that of others. They rigorously benchmark, both internally
and externally. They capture and share the knowledge of their people in order to
maximise learning across and within the organisation. There is an openness to
accept and use ideas from all stakeholders. People are encouraged to look
beyond today and todays capabilities. They are careful to guard their intellectual beyond today and todays capabilities. They are careful to guard their intellectual
property and to exploit it for commercial gain, where appropriate. Their people
constantly challenge the status quo and seek opportunities for continuous innovation
and improvement that add value.
Fundamental Concepts of
Excellence Excellence
Partnership Development Partnership Development
The Concept
Excellence is developing and maintaining value adding partnerships.
How the Concept is put into practice
Excellent organisations recognise that in the constantly changing and increasingly
demanding world of today success may depend on the partnerships they develop. g y y p p p y p
They seek out, and develop, partnerships with other organisations. These
partnerships enable them to deliver enhanced value to their stakeholders
through optimising core competencies. These partnerships may be with
customers, society, suppliers or even competitors and are based on clearly y pp p y
identified mutual benefit. Partners work together to achieve shared goals,
supporting one another with expertise, resources and knowledge and build a
sustainable relationship based on mutual trust, respect and openness.
Fundamental Concepts of
Excellence Excellence
Corporate Social Responsibility
The Concept
Excellence is exceeding the minimum regulatory framework in which the
organisation operates and to strive to understand and respond to the
expectations of their stakeholders in society expectations of their stakeholders in society.
How the Concept is put into practice
Excellent organisations adopt a highly ethical approach by being transparent and
t bl t th i t k h ld f th i f ibl accountable to their stakeholders for their performance as a responsible
organisation. They give consideration to, and actively promote, social
responsibility and ecological sustainability both now and for the future. The
organisations Corporate Social Responsibility is expressed in the values and
i t t d ithi th i ti Th h d i l i t k h ld integrated within the organisation. Through open and inclusive stakeholder
engagement, they meet and exceed the expectations and regulations of the
local and, where appropriate, the global community. As well as managing risk, they
seek out and promote opportunities to work on mutually beneficial projects with
i t i i i d i t i i hi h l l f fid ith t k h ld Th society inspiring and maintaining high levels of confidence with stakeholders They
are aware of the organisations impact on both the current and future community
taking care to minimise any adverse impact.
Bharat Heavy Electricals Limited, PS Bharat Heavy Electricals Limited, PS-- NR, NOIDA NR, NOIDA
33 Basic Concepts of Excellence