qms program towards 5-star organization thru business excellence
TRANSCRIPT
QMS Program Towards 5-Star Organization thru Business Excellence Framework (BEF)5 November 2014
Contents
1. Objective2. Background3. Current Situation4. Goals5. Closing the Performance Gap6. Conclusion7. Recommendation
1. Objective
• To improve the achievement level of business management system and processes as measured with Business Excellence Framework.
2. Background • Transformasi ke Arah
Organisasi 5 Bintang was initially launched in January 2011 during Annual Budget and Business Plan for FY2011/12 at Country Height Resort, Kajang.
• Phases of transformation established with strategic goals to be achieved during the 7 years.
2. Background
2. Background• In 2011, TNB had impose a
requirement for all of their vendors under vendor development program (VDP) to subscribe to Business Excellence Framework (BEF).
• BEF is a tool to guide companies manage and review their business excellence affairs and linking that to business performance.
• BEF is standard solution for companies to assess their TQM practices.
• Adopted the Malcolm Baldridge Criteria for Performance Excellence (USA) by MPC to establish BEF (Malaysia).
Business Excellence Framework
2. Background
Leadersh
ip
Planning
Information
Customers
People
Proce
ss
Result
0
10
20
30
40
50
60
Score % by Category Year 2012 and Year 2013 Assessment
2012 2013
Category
%
12.0%-4.4%
5.5%
3.7%
-8.3%
-2.2% 16.0%
BE Assessment Score 2012
BE Assessment Result 2013
445 [PRACTITIONER]
511 [PRACTITIONER]
Colour Band
Score Excellent
800 ~ 1000 Excellent
700 ~ 799 Best in Class
600 ~ 699 Good Practice Achiever
400 ~ 599 Practitioner
200 ~ 399 System Implementer
0 ~ 199 Initial Adopter
Significant IncreaseSignificant reduce
Current SituationRe
sults
Lead
ersh
ip
Peop
le
Info
rmati
on
Cust
omer
s
Proc
ess
Plan
ning
0
50
100
150
200
250
300
350
400
450
500
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
30.5
46.6
61.4
71.6
81.6
90.8
100.0Pareto BE Assessment Gap 2013
Gap Cumulative %
Category
Gap
Scor
e
Perc
enta
ge, %
• Based on Pareto analysis, improvement focused areas will be:
i. Leadershipii. Peopleiii. Informationiv. Customers
• ‘Results’ is outcome in nature, therefore improvement initiatives done on the above 4 categories will directly impact the results.
Current SituationMaximum Percentage
Score4.1 LEADERSHIPA. Senior Leadership 90 53%
60 39%
TOTAL 150 47%71
Score Your Assessment
48B. Governance and Societal Responsibility 23
Breakdown Result of BE Assessment
Maximum PercentageScore
4.2 PLANNINGA. Strategy Development 35 46%B. Strategy Deployment 55 52%
TOTAL 90 50%
Your Assessment Score
1629
45
Maximum PercentageScore
4.3 INFORMATIONA. Management of Information and Knowledge 90 44%
TOTAL 90 44%40
40
Your Assessment Score
Focus Area #1
Focus Area #3
Current SituationMaximum Percentage
Score4.4 CUSTOMERSA. Voice of Customer 40 46%B. Customer Engagement 70 61%
TOTAL 110 56%
Your Assessment Score
1843
61
Maximum PercentageScore
4.5 PEOPLEA. Human Resource Planning 25 39%B. Employee Involvement 30 44%C. Education, Learning and Development 30 33%D. Employee Well-Being and Morale 20 46%E. Benefits and Appraisal System 15 39%
TOTAL 120 40%
96
48
10
Score
10
Your Assessment
13
Maximum PercentageScore
4.6 PROCESSA. Work Processes 20 58%B. Process Management and Improvement 30 53%C. Supplier and Partnering Processes 40 43%
TOTAL 90 50%
Score
12
Your Assessment
16
45
17
Focus Area #2
Focus Area #4
Current SituationMaximum Percentage
Score4.7 RESULTSA. Customer 85 58%B. Financial and Market 95 67%C. People 85 50%D. Processes 85 54%
TOTAL 350 58%
63
46
201
43
Score
50
Your Assessment
Color Scoring:Your percentage scores are highlighted in one of these three colors:
Exceeded practices set in BEF 80%Meeting certain BEF practices but requires improvement 50%Require significant improvement 0%
Range Between100%79%49%
Current SituationSME COMPETITIVENESS RATING FOR ENHANCEMENT (SCORE) Result 2013
Current Situation
Eligibility Criteria
• Must publicly traded on the American Stock Exchange, New York Stock Exchange or Nasdaq National Market.
• Maintain daily trading volume of more than 100,00 shares during 25 consecutive trading days
• Minimum reported price of more than $5 per share during 25 day period.
• Minimum market capitalization of more than $100 million during 25 day period
Rating Characteristic
0 – 2 Star
• Very basic with manual / semi-automated processes
3 Star • High level of automation• Able to implement quality
system• Undertakes product and
process improvements• Intellectual Property
registered• Ready for export
compliance certification
4 Star • Fully automated• Invest in process / product
improvements• Most likely exporting• With certification for
export
5 Star • Good branding / packaging• Currently exports with
compliance to export requirements
Ministry Of Tourism MalaysiaTourism Industry Licensing System
No. Criteria Weightage %
1 Qualitative and Aesthetic Requirement
10
2 Common Area 20
3 Bedroom Requirement 20
4 Services 25
5 Safety Standard and Hygiene
10
6 Staff 15
Star Marks
9 – 10
7 – 8
5 – 6
3 – 4
1 – 2
Definition of 5 Star Organization
Current Situation
?
Goals
Leadersh
ip
Planning
Information
Customers
People
Proce
ssResu
lt0
10
20
30
40
50
60
70
80
90
100
BE Assessment Score
Category
%
Target October 2015
Target October 2016
By October 2015:• Increase the Leadership
Category score from 47% to more than 70%
• Increase the People Category score from 40% to more than 70%
• Increase the Information Category score from 44% to more than 70%
By October 2016:• Increase the Customer
Category score from 56% to more than 80%
• Increase the Process Category score from 50% to more than 80%
• Increase the Result Category Score from58% to more than 80%
Total BE Assessment Score
604 [GOOD PRACTICE
ACHIEVER]
Total BE Assessment Score
737 [BEST IN CLASS]
Closing the Performance Gap
Monthly Sales met or exceed target for 9 consecutive
months
Product export outside Malaysia
Minimum Average Contribution Margin 30%
New/Improved product launched
every 3 years
Min 40 % of employees are highly engaged
5S is second nature to all employees
Business processes improvement
driven by Employees’ idea
Knowledge and information are shared and at
fingertips
Internal and External Customer
expectation rigorously heard
Define 5-Star Organization – Matrix’s Way (proposal)
Closing the Performance GapTQM 2 Years Plan
PHAS
E 2:
Cu
stom
er, P
roce
ss, R
esul
tPH
ASE
1: L
eade
rshi
p, P
eopl
e, In
form
ation
Nov ‘14 ~ Apr ‘15 May ‘15 ~ Oct ‘15 Nov ‘15 ~ Apr ‘16 May ‘16 ~ Oct ‘16
• Improve Internal and External Communication
• Strengthen Policy Management System
• 5S Awareness• Senior Management Style
and Involvement effectiveness evaluation mechanism
• Systematic measurement and evaluation system for vision, mission and values understanding among employee
• Competency Matrix for all Employees
• Innovative & Creative Circle (ICC)• Employee engagement
measurement• Visual management• Education and Training Curriculum
for all levels. • Evaluation results of OJT and OFF-
JT.• Management Based on Facts• Employee Suggestion Scheme (My
Idea)• Standard 5S
• Voice of Customer (VOC)• Customer Complaint Trending• Value Stream Mapping• Kaizen Events• Supplier Quality Assurance
Manual
• PFMEA• QFD• Advance 5S• Process Control Plan• Advance Product and Quality
Plan (APQP)• Cost of Poor Quality
• Strategic Supplier Management
Closing the Performance GapNo. Initiatives/Programs Lead Support N D J F M A M J J A S O
1 5S Audit (Internal) WSM Audit Committee
2 5S Audit (MPC) WSM MAH
3 ICC Launching WSM MAH
4 My Idea Launching WSM MAH
5 Visual Management WSM MAH
6 BE Audit WSM MAH
7 Internal Quality Audit WSM HZA
8 ISO9001 Surveillance Audit (SIRIM) WSM MAH
9 Internal/External Communication System ASK WSM
10 Evaluation of Senior Management Style & Involvement ASK MNH
11 Evaluation of Vision, Mission and Values understanding Among Employees
ASK MNH
12 Improvement of Policy Management System ASK WSM
13 Management Based on Facts ASK WSM
14 Competency Matrix for all Employees MNH NAN
15 Employee Engagement Measurement MNH NAN
16 Education and Training Curriculum MNH NAN
17 Evaluation for OJT and Off-JT MNH NAN
18 Strategic Supplier Management WSM AAS, ASK
BE Initiatives/Program Implementation Schedule Nov ’14 ~ October ‘15
Closing the Performance GapBE Initiatives/Program Implementation Schedule Nov ’15 ~ October ‘16
No. Initiatives/Programs Lead Support N D J F M A M J J A S O
1 5S Audit (Internal) WSM Audit Committee
2 5S Audit (MPC) WSM MAH
3 Voice of Customer BSK ANA, MRR, NHM
4 Customer Complaint Trending WSM ANA, MRR
5 Value Stream Mapping WSM MAH
6 BE Audit WSM MAH
7 Internal Quality Audit WSM HZA
8 ISO9001 Surveillance Audit (SIRIM) WSM MAH
9 Kaizen Events WSM MAH
10 Supplier Quality Assurance Manual WSM AAS, ASK
11 PFMEA WSM MAH
12 QFD BSK MWA, JIS, WSM
13 Advance 5S WSM MAH
14 Process Control Plan WSM MAH
15 APQP WSM HSF, MRR, ANA
16 Cost of Poor Quality WSM ABI, RAR
Closing the Performance GapThe Cooking Book - TQM Handbook
1. CEO2. Manager3. Common Employees4. Policy Management5. Standardization6. Daily Management7. QC Circle8. Problem Solving9. Statistical Method10. Safety Control11. Process Control12. Management of
Facilities and Equipment
13. Measurement Control14. Inspections15. Education and Training16. External Supplier –
Purchasing17. Production Control18. Disposal and Proper
Arrangement19. Cleaning, Cleanliness,
Environment20. Technology
Development and Design Management
21. After Sale Service
Conclusion1. 5-Star Organization characteristic that Matrix Power is pursuing shall
be clearly defined to get every employee engagement and togetherness towards achieving it.
2. The best business excellence performance measurement method is using Business Excellence Framework (BEF) by MPC compared to SCORE Assessment by SME Corp. BEF is more comprehensive i.e. cover the whole spectrum of business activity and supported by TQM handbook. The assessment is rigorous and structured compared to SCORE.
3. Initiatives and programs proposed are based on BEF result assessment score for each category, TQM handbooks and Areas for Improvement highlighted by auditor in their report.
Recommendation1. One senior management shall lead the implementation of initiatives
for the each business excellence category. Proposal as outline below:i. Leadership – En. Ahmad Shafie Bin Kusniii. Information – En. Wan Suffian Bin Wan Mansoriii. People – En. Md. Nadzri Bin Hamzahiv. Process – En. Wan Suffian Bin Wan Mansorv. Planning – En. Ahmad Shafie Bin Kusnivi. Customer – En. Badlee Shah Bin Mohammed Kassim
2. Development of action plan needs to be developed with the support of key stakeholders and process owners. The action planning process should be integrated into strategic planning process to ensure that the actions can be resourced and implemented.