Malcolum Baldridge BE Model - Training Presentation

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BAL BUSINESS EXCELLENCE

Malcolm Baldrige
Business Excellence Model

Awareness Training

1
BAL Vision and Mission

Vision
To be an organization that continuously achieves economic value by optimizing resources through
operational excellence, enabled by technology and driven by innovation to meet customer
satisfaction to maximize the value of all the stakeholders.

Mission
To be amongst the world’s Top Five new generations Ferrochrome companies: in our
products, in the manner in which we service our clients, in our work ethics, and in our
culture of societal integration

Values
Zero Harm
Providing a safe working environment for our staff and contractors
Integrity
Act according to agreed ethical standards and take responsibility of our actions
Focusing on Core Business
Concentrate on providing key deliverables within our business
Caring for People
Manage our people with the same passion and dedication
Cost Consciousness
Manage our business in the most cost-effective way and continuously explore new competitive practices
Respect
Treat all individuals with dignity and respect
2
BAL History Malcolm Baldrige Model

 The Malcolm Baldrige National Quality Award recognizes U.S.


organizations in the business, health care, education, and nonprofit
sectors for performance excellence.

 The Baldrige Award is the only formal recognition of the performance


excellence of both public and private U.S. organizations given by the
President of the United States.

 It is administered by the Baldrige Performance Excellence Program,


which is based at and managed by the
National Institute of Standards and Technology, an agency of the U.S.
Department of Commerce.

 Up to 18 awards may be given annually across six eligibility categories—


manufacturing, service, small business, education, health care, and
nonprofit. As of 2014,

 105 awards have been presented to 99 organizations (including six


repeat winners)

3
BAL Objectives of Malcolm Baldrige Model

 To collectively embark on a business excellence journey that will


results in
● More satisfied customers
● Happier employees
● Increased sales, profits, and market share
● Long –term survival

 To assess ourselves against various industry best practices and


benchmarks in a objectives manners

 To identify the areas that needs to be strengthened in order to


position our organization for scaling greater heights and enhance
its reputation in the market place

4
BAL Business Excellence
Nacionalna nagrada za kvaliteti Malcolm Baldrige MBNQA

Business Excellence is defined as a high level of


maturity of the company / organization in relation to
managing and achieving results. Truly excellent
organizations with tendency to satisfy owners with things
they are achieving, the way how they are doing that, and
what they can achieve with certainty that the results
obtained will be supported in the future.

Figure 1
BAL Business Excellence
Nacionalna nagrada za kvaliteti Malcolm Baldrige MBNQA

 Business excellence is a way of doing business that


allows organizations to achieve a balanced satisfaction
of stakeholders (eg. Customers, employees, society and
shareholders), thus increasing the likelihood of long-
term success.
 Business excellence has become the strongest mean of
achieving competitive advantage of companies while
total management of quality has become the road that
ensures support of excellent results recognized by many
world companies.
 For realization the most significantly of recognition for
excellence – Quality Award, organization need to prove
that has satisfied some criterions which are defined with
different excellence models.
BAL Business Excellence
Nacionalna nagrada za kvaliteti Malcolm Baldrige MBNQA

 It is based on the following principles:


• Results-oriented
• Focus on customers
• Management and constancy of purpose
• Process control based on facts
• Employee development and involvement, continuous
learning, improvement and innovation
• Development of partnerships and corporate social
responsibility.

 Following these principles, several models have been developed as


a framework of business excellence.
 The most famous are:
1.Japanese model - Deming
2.The European model - EFQM EM
3.American model - the Malcolm Baldrige
BAL Business Excellence
Nacionalna nagrada za kvaliteti Malcolm Baldrige MBNQA

DEMING MODEL
The Deming Prize that is given to organizations, has exerted an
immeasurable influence directly and indirectly on the development of quality
control/management in Japan.

EFQM Model
 European Business Excellence Model was developed by the European
Foundation for Quality Management (EFQM). It is today the strongest
widely accepted model used by many manufacturing and service, large,
medium and small, profit and non-profit sector

Baseline for the development of the European Quality Award is the Baldrige
award. It can be concluded that it is in fact a European variant Baldrige-this
award which has uniqueness in the approach to TQM as an element of
improving business.
BAL Malcolm Malcolm
Baldrige Baldrige
Nacionalna nagrada za kvaliteti MBNQA

 Malcolm Baldrige National Quality Award is a prestigious American


quality award, which has been established in 1987 by Congress as a national
annual award for quality.

 Malcolm Baldrige National Quality Award is one of the world's most recognized
and the most widespread model of business excellence which is a framework
for self-assessment model for many national models of business excellence.
BAL Malcolm Malcolm
Baldrige Baldrige
Nacionalna nagrada za kvaliteti MBNQA

The purpose of this award is :

1. To promote awareness of business excellence as an increasingly


important element of competitiveness.

2. Promote the sharing of information on successful strategies


implemented and the benefits arising from those strategies.
● Few award winning companies -

AT&T Boeing

Motorola IBM

Company
Chemical Xerox
Eastman
BAL Attributes

11
BAL Malcolm Baldrige

12
BAL Why BAL (Integrated ) Business Excellence Model

13
BAL Why BAL (Integrated ) Business Excellence Model

14
BAL Malcolm Baldrige Core Values and Concepts

15
BAL Malcolm Baldrige Concepts

The Baldrige Criteria are built on the following set of interrelated core values and
concepts:
1. Systems perspective
2. Visionary leadership
3. Customer-focused excellence
4. Valuing people
5. Organizational learning and Agility
6. Focus on success
7. Managing for innovation
8. Management by fact
9. Societal responsibility
10. Ethics and transparency
11. Delivering Value and results

Processes
Approach-Deployment Learning Integration (ADLI)
Results
Levels
Trends
Comparison
Integration
Linkages & Improvement

16
BAL Malcolm Baldrige Excellence Criteria

17
BAL Organizational profile
Kriteriji nacionalne nagrade za kvaliteti Malcolm Baldrige MBNQA

 Preface: Organizational Profile is a starting point of


self-assessment and writing applications. Organizational
Profile is a status analysis of the organization, the key
factors affecting the way in which it operates and the key
challenges they face at the same time. Description of the
organization describes the key characteristics of the
organization: the work environment of the organization
and key relationships with customers, suppliers, partners
and stakeholders. Organizational challenges describe the
competitive environment in which the organization
operates, strategic challenges and strengths of the
organization and system for improving the business.
BAL
Kriteriji nacionalne nagrade Leadership
za kvaliteti Malcolm Baldrige MBNQA

Category Leadership explores how top management of


the organization shall keep and maintain the organization.
It also evaluates the management of the organization and
how the organization fulfills its ethical and legal
responsibility and responsibility for the community.
BAL
Kriteriji nacionalne nagrade Leadership
za kvaliteti Malcolm Baldrige MBNQA

Example
BAL
Kriteriji nacionalne nagrade Leadership
za kvaliteti Malcolm Baldrige MBNQA

1.1 Senior Leadership :- How do you Senior leader lead the Organization ?
70 Pts.

a) VISION, VALUES, MISSION


1) VISON and Values
2) Promoting legal and Ethical Behavior
3) Creating a Successful Organization

b) Communication and Organizational Performance


1) Communication
2) Focus on Action
BAL
Kriteriji nacionalne nagrade Leadership
za kvaliteti Malcolm Baldrige MBNQA

1.2 Governance and Societal Responsibilities :- How do you govern your


organization and fulfill your societal responsibilities ? (50 pts.)
a) Organizational Governance
1) Governance System
2) Performance Evaluation

b) Legal and Ethical Behavior


1 )Legal and Regulatory Compliance
2) Ethical Behavior

C) Societal Responsibilities.
1)Societal Well-Being
2)Community Support
BAL Strategy
Kriteriji nacionalne nagrade za kvaliteti Malcolm Baldrige MBNQA

Strategy Category examines how the organization


develops strategic objectives and how they convert them
into action plans. It also assesses how the chosen strategic
objectives and action plans are implementing and
changing, if circumstances require, and how to measure
progress.
BAL Strategy
Kriteriji nacionalne nagrade za kvaliteti Malcolm Baldrige MBNQA

Example
BAL Strategy
Kriteriji nacionalne nagrade za kvaliteti Malcolm Baldrige MBNQA

2.1 Strategy Development :- How do you develop your Strategy ? (45 Pts)
a) Strategy development Process
1) Strategy Planning Process
2 )Innovation
3) Strategy Considerations
● Your strategic Challenges and Strategic Advantages
● Risk to your organizations future success
● Potential Changes in your regulatory environment
● Potential blind spots in your strategic planning process and Information
4) Work Systems and Core Competencies
b) Strategic Objectives
1) Key Strategic Objectives
2) Strategic Objective Considerations
BAL Strategy
Kriteriji nacionalne nagrade za kvaliteti Malcolm Baldrige MBNQA

2.2 Strategy Implementation :- How do you Implement your Strategy ? (40 Pts)
a) Action Plan Development and Deployment
1) Action Plans
2 )Action Plan Implementation
3) Resource Allocation
4) Work force Plans
5) Performance Measures
6) Performance Projections
b) Action Plan Modifications
BAL Customer
Kriteriji nacionalne nagrade za kvaliteti Malcolm Baldrige MBNQA

 Category Customer and market examines how the


organization determines the requirements, needs,
expectations and preferences of customers and markets
in order to maintain the relevance of products and
services and develop new business opportunities. It also
examines how the organization builds relationships to
attract, satisfy, maintain and enhance customer loyalty
and to determine the level of satisfaction or
dissatisfaction, of the customer.
BAL
Kriteriji nacionalne nagrade za kvaliteti Malcolm Baldrige MBNQA

Example
BAL Customer
Kriteriji nacionalne nagrade za kvaliteti Malcolm Baldrige MBNQA

3.1 Voice of the Customer :- How do you obtain Information from your
customers ? (40 Pts)
a) Customer Listening
1) Current Customers
2)Potential Customers
b) Determination of Customer Satisfaction and Engagement
1) Satisfaction ,Dissatisfaction and Engagement
2) Satisfaction Relative to Competitors
3.2 Customer Engagement :- How do you Engage customers by Serving
their needs and building relationships ? (45 Pts)
a) Product offerings and Customer Support
1) Product Offerings
2)Customer Support
3 ) Customer Segmentation
b) Customer Relationships
1) Relationship Management
2) Complaint Management
BAL Measurement, Analysis and Knowledge Management
Kriteriji nacionalne nagrade za kvaliteti Malcolm Baldrige MBNQA

 Category Measurement, Analysis and Knowledge


Management evaluates how the organization selects,
gathers, analyzes, manages and improves datas,
information and knowledge and manage information
technology. Examines how the organization supervises and
on account of that improves its performance. In addition,
examines how the organization ensures the quality and
availability of data, informations, software and hardware
for their workforce, suppliers, partners, associates and
customers.
BAL Measurement, Analysis and Knowledge Management
Kriteriji nacionalne nagrade za kvaliteti Malcolm Baldrige MBNQA
Example
BAL Measurement, Analysis and Knowledge Management
Kriteriji nacionalne nagrade za kvaliteti Malcolm Baldrige MBNQA

4.1 Measurement , Analysis ,and Improvement of Organizational


Performance :- How do you measure , analyze and then improve
Organizational Performance ? (45 Pts)
a) Performance Measurement
1) Performance Measures
2) Comparative Data
3) Customer Data
3) Measurement Agility
b) Performance Analysis and Review
c) Performance Improvement
1) Best Practices
2) Future Performance
3) Continuous Improvement and Innovation
BAL Measurement, Analysis and Knowledge Management
Kriteriji nacionalne nagrade za kvaliteti Malcolm Baldrige MBNQA

4.2 Knowledge Management ,Information Technology :- How do you


manage your Organizational Knowledge assets ,Information and
Information technology Infrastructure ? (45 Pts)

a) Organizational Knowledge
1) Knowledge Management
2) Organizational Learning

b) Data, Information and Information technology


1) Data and Information quality
2) Data and Information Security
3) Data and Information Availability
4) Hardware and Software Properties
5)Emergency Availability
BAL
Kriteriji nacionalne nagrade Workforce
za kvaliteti Malcolm Baldrige MBNQA

 Category Workforce explores how organizations hire,


manage and develop their workforce in order to exploit full
potential of the workforce in line with the overall mission,
strategy and plans of the organization. It also examines
the ability of the organization to assess the necessary
capabilities and capacities of the workforce and to develop
a working environment conducive to achieve high
performance.
BAL
Kriteriji nacionalne nagrade Workforce
za kvaliteti Malcolm Baldrige MBNQA

Example
BAL
Kriteriji nacionalne nagrade Workforce
za kvaliteti Malcolm Baldrige MBNQA

5.1 Workforce Environment :- How do you build and effective and


supportive workforce Environment ?(40 Pts)

a) Workforce Capability and Capacity


1) Capability and Capacity
2) New Workforce Member
3) Work Accomplishment
4) Workforce Change Management

b) Workforce Climate
1) Workforce Environment
2) Workforce Benefits and Policies
BAL
Kriteriji nacionalne nagrade Workforce
za kvaliteti Malcolm Baldrige MBNQA

5.2 Workforce Engagement :- How do you engage your workforce to


achieve a high Performance work environment ?(45 Pts)

a) Workforce Engagement and Performance


1) Organizational Culture
2) Drivers of Engagement
3) Assessment of Engagement
4) Performance Management

b) Workforce and Leader Development


1) Learning and Development System
2) Learning and Development Effectiveness
3)Career Progression
BAL Operations
Kriteriji nacionalne nagrade za kvaliteti Malcolm Baldrige MBNQA

 Category Operations examines how the organization


defines its core capabilities and systems work and how to
design, manage and improve key processes for the
implementation of these systems work in order to create
value for customers and achieve their own success and
viability.
BAL Operations
Kriteriji nacionalne nagrade za kvaliteti Malcolm Baldrige MBNQA

Example
BAL
Kriteriji nacionalne nagrade Operations
za kvaliteti Malcolm Baldrige MBNQA

6.1 Work Processes :- How do you design, manage, and Improve your key
products and work processes ? (45 Pts)

a) Product and Process Design


1) Product and Process Requirement
2) Design Concept
b) Process Management
1) Process Implementation
2) Support Process
3) Product and Process Improvement
c) Innovation Management
BAL
Kriteriji nacionalne nagrade Operations
za kvaliteti Malcolm Baldrige MBNQA

6.2 Operational Effectiveness :- How do you ensure effective Management of


your operations ? (40 Pts)

a) Process Efficiency and Effectiveness


b) Supply Chain Management
c) Emergency preparedness
BAL
Kriteriji nacionalne nagrade zaResults
kvaliteti Malcolm Baldrige MBNQA

 Category Results evaluates the organization's


performance and improvement in all key areas -
manufacturing and service, results focused on customers,
financial and market results, results focused on the
workforce, the results of the efficiency of the process and
results of the leadership.
BAL
Kriteriji nacionalne nagrade zaResults
kvaliteti Malcolm Baldrige MBNQA
BAL
Kriteriji nacionalne nagrade zaResults
kvaliteti Malcolm Baldrige MBNQA
BAL
Kriteriji nacionalne nagrade zaResults
kvaliteti Malcolm Baldrige MBNQA

7.1 Product and Process Results :- What are your product performance and
process effectiveness results ? (120 Pts)

a) Customer Focused Product and service Results


b) Work Process Effectiveness Results
1) Process effectiveness and efficiency
2) Emergency Preparedness
c) Supply chain Management Results

7.2 Customer Focused Results :- What are your Customer focused


Performance Results ? (80 Pts)

a) Customer Focused Results


1) Customer Satisfaction
2) Customer Engagement
BAL
Kriteriji nacionalne nagrade zaResults
kvaliteti Malcolm Baldrige MBNQA

7.3 Workforce- Focused Results :- What are your Workforce-Focused


performance results ? (80 Pts)

a) Workforce-Focussed Results
1) Workforce Capability and Capacity
2) Workforce Climate
3) Workforce Engagement
4) Workforce Development
7.4 Leadership and Governance Results :- What are your senior
Leadership and Governance results ? (80 Pts)

a) Leadership, Governance and Societal Responsibility Results


1) Leadership
2) Governance
3)Law and Regulation
4) Ethics
5)Society
b) Strategy Implementation Results
BAL
Kriteriji nacionalne nagrade zaResults
kvaliteti Malcolm Baldrige MBNQA

7.5 Financial and Market Results :- What are your financial and market
place performance results ? (90 Pts)

a) Financial and Market Results


1) Financial Performance
2) Market Place Performance
BAL Results CriteriaMalcolm Baldrige
Kriteriji nacionalne nagrade za kvaliteti MBNQA
BAL Benefits prednosti za GIKIL
Potencijalne MBNQA

Tangible:
 Organization promotion in the media, the higher interest of customers
 Higher profits...

Intangible:
 motivation of employees, motivation of customers,
 "The pride of society, country" ...
EBS Consultant Assessment Findings March’2015- Approach Criteria 50

POINTS
SN CATEGORY ITEMS % ACHIEVED
SCORE
1.1 Senior Leadership 5% 3.5
1 Leadership 1.2 Governance and Societal
25% 12.5
Responsibilities
2.1 Strategy Development 5% 3.5
2 Strategy
2.2 Strategy Implementation 5% 2
3.1 Voice of the Customer 30% 12
3 Customer
3.2 Customer Engagement 15% 6.75
4.1 Measurement ,Analysis and
Measuremen Implementation of 10% 4.5
t, Analysis, Organizational performance
4 and
Knowledge
Management 4.2 Knowledge Management 55% 24.75
and Information Technology

5.1 Workforce Environment 10% 4


5 Workforce
5.2 Workforce Engagement 20% 9
50
EBS Consultant Assessment Findings March’2015- Approach & Results 51

POINTS
SN CATEGORY ITEMS % ACHIEVED
SCORE
6.1 Work Processes 40% 18
6 Operations
6.2 Operational Effectiveness 15% 6
Total (Categories 1 to 6) 106.5
7.1 Product and Process Results 5% 6
7.2 Customer –Focused Results 25% 20
7.3 Workforce –Focused Results 5% 4
7 Results
7.4 Leadership and Governance 15%
Results 12

7.5 Financial and Market Results 25% 22.5


Total (Category 7) 64.5

Total Score All Categories (1 to 7) = 106.5+64.50 =


171

51
Assessment Score
Assessment done in March 2015 by EBS

Category wise Score


First Assessment 500
Score 400

numbers
300
200
800 100
Numbers

1000 171
400 0
0
Total Score Achieved
Score

• Baldrige methodology measures the organization progress through this


method only .There is no second way.
• EBS Consultants shared these findings with Top Management & Leadership
team thru 3 Days work shop at NOCCI.

52
Agreement on “Way Forward” 53

876 – 1000
World Leader

751 – 875
Benchmark Leader

We want to be here 651 – 750


We

Industry Leader
551 – 650
are

Emerging Industry Leader


h
ere

251 – 350 451 – 550


Early Results Good
351 – 450 Performance
Early Improvement
0 – 250
Early
Development 53
Agreement on “Way Forward” 54

Global Image
876 – 1000: World Class Leader

751 – 875: Benchmark Leader Excellent

651 – 750: Industry Leader

551 – 650: Emerging Industry Leader

451 – 550: Good Performance Average

351 – 450: Early Improvements

251 – 350: Early Results

0 – 250: Early Development (BAL is Here) Poor

54
Agreement on “Way Forward” 55

Approach Deployment Results

Review, Align & Improve

1
Leadership 5
Work Force
2 7
Strategy Work Core Results
6
3 Operations
Customer Focus
4
Driver Triad Measurement, Analysis & KM
WE NEED TO FOCUS ON CATEGORY 1- 6 Approaches with Special stress on Cat 1,2
55
Agreement on “Way Forward”

EXPECTED SCORE (3 Years time frame)


APPROACH & DEPLOYMENT (CATEGORY 1 TO 6 )
RESULTS (CATEGORY 7.1 TO 7.5)

56
Baldrige Approach & Deployment Target Scores 57

Year 2015 Target % Score (A-D)


S CATEGORY ITEMS Total
N SCORE Point Scored % Achieved June 2017 June 2018 June
2019

1.1 Senior Leadership 70 3.5 5% 15% 25% 40%


1 Leadership
1.2 Governance and Societal
Responsibilities 50 12.5 25% 30% 35% 40%

2.1 Strategy Development 45 3.5 5% 15% 25% 35%


2 Strategy
2.2 Strategy Implementation 40 2 5% 15% 25% 40%

3.1 Voice of the Customer 40 12 30% 30% 35% 40%


3 Customer
3.2 Customer Engagement 45 6.75 15% 20% 25% 40%

4.1 Measurement ,Analysis


Measuremen and Implementation of 45 4.5 10% 20% 25% 30%
t, Analysis, Organizational performance
4 and
Knowledge
Management 4.2 Knowledge Management
45 24.75 55% 55% 55% 60%
and Information Technology

5.1 Workforce Environment 40 4 10% 15% 20% 30%


5 Workforce
5.2 Workforce Engagement 45 9 20% 25% 30% 40%

6.1 Work Processes 45 18 40% 40% 45% 50%


6 Operations
6.2 Operational
40
6 15% 20%
25% 40%
Effectiveness
Score (Points) – (A-D) 550 106.5 - 210 259 339.5
57
Baldrige Results Target Scores 58

Year 2015 Target % Score (R)


S Total
N CATEGORY ITEMS SCORE June
Point Scored % Achieved June 2017 June 2018
2019

7.1 Product and Process Results 120 6 5% 15% 20% 30%


7.2 Customer –Focused Results
80 20 25% 30% 35% 40%
Results 7.3 Workforce –Focused Results 80 4 5% 15% 20% 25%
7
7.4 Leadership and Governance 80 15%
Results 12 20% 25% 30%
7.5 Financial and Market Results 90 22.5 25% 30% 35% 40%
Score (Points) - R 450 64.5 - 77 94.5 115.5
Overall Score – (A-D-R) 1000 171 - 287 353.5 455

58
Baldrige Approach(A) & Deployment(D) & Result(R) Target
Scores
Score (A-D) Score (R)
115.5
339.5 94.5
77
259 64.5
210
106.5

Actual (Year Target Y2017 Target Y2018 Target Y2019


2015) Actual (Year Target Y2017 Target Y2018 Target Y2019
2015)

Overall Score
455

353.5
287

171

Actual (Year 2015) Target Y2017 Target Y2018 Target Y2019

59
Baldrige Approach & Deployment Category Target Scores

Leadership (120) Strategy (85) Customer (85)


56 56
52.5

42 42
35 35
31.5
21
18.75
16
5.5

Actual Target Target Target


(Year 2015) Y2017 Y2018 Y2019 Actual Target Target Target
Actual Target Target Target (Year 2015) Y2017 Y2018 Y2019
(Year 2015) Y2017 Y2018 Y2019

MA&KM (90) Workforce (85) Operations (85)


63 63
56 49
52.5
49
35 42
29.25 28
24
13

Actual Target Target Target


(Year 2015) Y2017 Y2018 Y2019 Actual Target Target Target Actual Target Target Target
(Year 2015) Y2017 Y2018 Y2019 (Year 2015) Y2017 Y2018 Y2019

60
Baldrige Result Category Target Scores

Product & Process


Results (120) Customer Focused
Results (80) Workforce Focused
Results (80)
21 17.5
28
24.5 14
14 20 21
10.5
10.5

6 4

Actual Target Target Target Actual Target Target Target Actual Target Target Target
(Year 2015) Y2017 Y2018 Y2019 (Year 2015) Y2017 Y2018 Y2019 (Year 2015) Y2017 Y2018 Y2019

Financial & Market


Results (90) 28
Leadership & Governance
17.5
21
22.5
24.5
21
Results
14 (80)
12

Actual (Year Target Y2017 Target Y2018 Target Y2019


2015) Actual (Year Target Y2017 Target Y2018 Target Y2019
2015)

Possible only by following the criteria Frame


work 61
The Scoring System - Recap

Approach Deployment Results

• Appropriate • Extent • Outcomes


• Effective

 Systematic  Addressing item  Current performance


 Integrated requirements  Relative performance
 Aligned  Rate, breadth, importance
 Fact based  Appropriate work of performance outcomes
 E&I cycles units  Linkage to measures
 Innovative

Category 1 - 6 Category 7

62
The Scoring System –Recap ( Processes Cat 1.0 – 6.0)

Band Approach Deployment Improvement Maturity

0% Anecdotal Anecdotal ---

10 – 20% Basic Purpose Major Gaps Improvement Orientation


Beginning

30 – 40% Basic Purpose Deployed Beginning Of E&I


Systematic/Effective Early Stages

50 – 60% Overall Purpose Well Deployed Fact Based E&I Aligned


Systematic/Effective Extent Varies Basic Processes

70 – 80% Multiple Requirements Well Deployed Fact Based E&I Well Integrated
Systematic/Effective Learning/Sharing

90 – 100% All Requirements Fully Deployed Fact Based E&I Fully Integrated
Systematic/Effective Learning/Sharing

E&I Approach E&I Deployment


63
The Scoring System –Recap (Results Cat 7.1 –
7.5)

Band Reportage Level / Trend / Breadth Comparative

0% No Results Poor Levels ---

10 – 20% No Results On Most Key Early Good Performance ---


Requirements (KBF) In Few Areas

30 – 40% Many To Most Results On Good Performance In Many Early Stages Of Obtaining
Key Requirements (KBF) Key Areas. Early Trends

50 – 60% Most Customer / Market Good Performance In Most Some Comparisons


/ Process Requirements Key Areas. No Adverse Trends Good Relative Performance

70 – 80% Most Cust/Market/Process Good - Excellent Perf. In Most Many - Most Comparatives
+ Action Plan Requirement Areas. Sustained Improvement Show Leadership

90 – 100% All Cust / Market / Process Excellent Performance In Most Many Areas Of Industry /
+ Action Plan Requirement Areas. Sustained Excellence. Benchmark Leadership

64
We have miles to cover
BE-BP before we call ourselves “excellent”
Standard 65

Business
Excellence BALBEM

600 A-D-
+ R
500
A-D-R 5Y
400 Y2020
4Y
Y2019

A-D

210
A-D
A-D
2Y
106.5 220
Y 2017
1Y 2Y
(March 2015)

65
Way Forward -Review Forum (Restructured as per Baldrige Criteria
Category 1)
Apex
Business BSC
Council Review

Executive Company Business Operational


Board
Committee Performanc Excellence Performanc
Meeting
Review e Review Review e Review

1. Annual 1. Production
1. Governed Business Plan Targets
by Companies 1. Strategic Goals / Targets 1. Lean Six
Act Business 2. Major Sigma Projects 2. Weekly
Goals / Initiatives - 2. TPM production
2. Special Strategic & performance
Topics Targets Initiatives
Operational 3. IMS
permitted by 2. Strategic 3. Variance
3. Projects, M&A (Quarterly)
Chairman of Initiatives Analysis
4. Key HR issues
the Board

Quarterly Monthly Monthly Monthly Weekly

66
Way Forward -Core Values & Concepts
Kind Attn:
The Baldrige Model is
built on 11 core
values which cuts
through all criteria
items (approach and
results). We have
adopted only 6
values. These are:
Zero Harm
Integrity
Focusing on Core
Business
Caring for People
Cost Consciousness
Respect
Suggest to adopt the
remaining values for
effective deployment
of this model.
67
67
Source :- www.nist.gov/baldrige
Way Forward- Plan from Oct’16 onwards

1. Leadership VMV Deployment : Communication :


- Displays - Daily
- Meetings - Weekly
- VMV workshops - Monthly
- Pocket Cards About organization
- Competitions performance
expectation

Organization Culture : Performance Review :


- Customer Focus - Setting performance
- Performance evaluation expectations through
- Motivation BSC
- Transparency - Deployment through
- Reward & KRAs
Reorganization - Systematic review
- Team based culture mechanism

Each of the category lead to make a monthly presentation of his


approaches in the Apex Business Council Meeting

68
2.0 Strategies – Ongoing Work

Sr. Leadership
• Brand Building
• Leadership Transformation
• Cultural Transformation
• Communication (Internal & External)

Mining
• Alternate technology for mining to avoid excavation of OB
• To implement the under ground mining project by 2020 to achieve capacity of
1.4MTPA
• Sourcing suitable technology in COB plant to increase and sustain 30% capacity
enhancement i.e 26TPH

HR
• Performance Management System
• Manpower Optimization
• Employee Engagement
• Talent Management
• Career Progression & Succession Planning

69
2.0 Strategies – Ongoing Work
CRM
• Being a stable and dependable supplier with global quality standards and
services
• Maximizing Value from Stainless Steel and other OEM / End User, country-wise
and company-wise, with better price, quality, services
• Customer Relationship to ensure customer retention and engagement
• On-line CRM Strategy
• Pricing Strategy linking discount with specific timeline and Benchmarking Price
• Establishing Stable Customer Basket with Long Term Agreement (LTA) /
Maximum Off-Take Agreement ( with > 1 year contract agreements)
SCM
• Low Cost Country (LCC) sourcing- China Sourcing
• Maximizing OEM purchases & minimizing purchases from Traders / Petty
Vendors.
• Maximizing online procurement through E-commerce & implementation of
SRM
- Reduce number of transactions, Optimizing no. of Indents through consolidation & improving transparency
• Strategic Cost Reduction thru Consolidation - raw materials, spares, consumables
& services
• Maximizing Annual Rate Contracts for General Consumables
• Vendor Rationalization
• Improvement of quality & On-Time delivery
• Effective Stores & Inventory Management - Reduction in Non-moving & Slow-
moving inventory
70
2.0 Strategies – Ongoing work

Operations

• Viable modifiers / substitution or specification revisions for coke, coal, fluxes, lime
• Production of Value Added Products including optimization of production of low Si
material and other value added product at a lower cost

Finance
• Develop a project financing strategy to consistently raise long term funds for
acquisition/ growth of the company
• Effective communication with investor community

71
2.0 Strategies – Deployment methodology –a small beginning

System of review of Strategies through DAPs.

1. Strategic DAPs review and Alignment with Organizational Goals to be


done on monthly basis. Weekly updation of Strategic DAPs may not
be worth because it won’t reflect any change in the organizational
performance.
2. Every DAP owner to update and send their DAPs to VP(BE) by 5th of
the month. VP (BE) to go through the same and present a summary
status to MD of major points . MD to review those points in the
subsequent week either at BAL or through VC.
3. The present PMS System which is being implemented can be utilized
for BSC online monitoring work. One more software for Tracking
Baldrige Implementation /DAP is not required at this point of time.
May think of BSC Software once it is fully instutionalized.

More mechanisms to develop for faster deployment of Strategies

72
Way Forward- Plan from Oct’16 onwards

2. Strategy
Strategy Development Strategy
- Input collection Implementation
- Input Validation - Revisit of Strategic
- Presentation to the top DAPs
Management by Mines, - Periodic review
CC & CSR, CRM.
Finance, Operations,
HR, SCM, CARA & IT
All activities to start under
direct guidance of MD /
Mr. Divyesh Mittal

Updated Balanced Score Card (BSCs) presentation by PPIC and Functional


BSC by Category Head followed by Snap Shot update of each Strategies
by Process Owner in the Montlhly Apex Business Council Meeting

73
Way Forward- Plan from Oct’16 onwards

3. Customers
Voice of Customer Customer Engagement
- Listening from current - Customer
customer Segmentation
- Listening from - Market Segmentation
potential customer - Assess product needs
- Customer / - Assess customer
dissatisfaction communication need
- Customer engagement - Relationship
plan Management.
- Satisfaction relative to - Complaint
competitors Management.

Updated monthly presentation by CRM in the Apex Business Council


Meeting

74
Further Plan from Oct’16 onwards

4. Measurement, Analysis & Knowledge Management (IT & SAP)

Daily Performance Overall Performance


- Track progress w.r.t - Select KPIs (BSCs)
monthly plan. - More use of lead
- Comparative data indicators external
revised target bench mark data

Performance Information
Improvement Technology
- Sharing of best - Data & information
practices quality
- Performance projection - Data & information
on 3 to 5 years time availability
frame - Hardware / Software
- Continual improvement Support
& innovation - Information Security
Updated monthly presentation by IT department in the Apex Business
Council Meeting

75
Way Forward- Plan from Oct’16 onwards

5. Work Force
Capability & Capacity New Work force
- Skill Assessment - Recruitment & hiring
- Competency buildings - Retaining people

Change Management Workforce Climate


- Training for change - Health, Safety & Security
management - Service benefits &
- Review of organization policies
structure

Performance Workforce & Leader


Management development
- KRAs alignments with - Leadership development
BSC measures - Effectiveness of L&D
- Review & feedback - Career progression

Updated monthly presentation by HR department in the Apex Business


Council Meeting

76
Way Forward- Plan from Oct’16 onwards

6. Operations
Product & Process Operational
Design Effectiveness
- Focused customized - Overall cost cycle time
product & productivity
- Export Customers - Defect prevention
- Safety & emergency
preparedness

Process Management Supply Chain


- Day to day error free Management
operations - Supplier Selection
- Key support processes - Building relationship
– efficiency & - Performance feedback
effectiveness to supplier
- Product & process
improvements – TPM,
Six Sigma

Updated monthly presentation by DO /SCM department in the Apex


Business Council Meeting

77
Way Forward- Plan from Oct’16 onwards

Commitment Sign off by Top


Management to accelerate the
Business Excellence Journey in the
correct perspective by adopting the
changes as suggested in this
presentation.

Clear communication to the Top


Team on “Way Forward” thru BE
Council meeting
78
Baldrige Excellence Model Training Plan Oct’16~Mar’17 79

Oct'16 Nov'16 Dec'16 Jan'17 Feb'17 Mar'17


S. Level of
Programme
No. Participants W
1 W2W3W4W1W2W3W4W1W2W3W4W1W2W3W4W1W2W3W4W1W2W3W4

Leadership Orientation on                                                
1 Top Management
Baldrige Model                                                
2 Balanced Score Card Top Management                                                
Development Workshop                                                
3 Training on Approach & Top Management                                          
Deployment                                                
4 Training on Result Top Management                                            
Assessment                                                
                                               
5 Baldrige Awareness HODs
                                               
Managers and                                          
6 Baldrige Awareness
Below                                                
7 Baldrige Awareness Executives                                                
                                               
Internal Assessors TOP team                                              
8
Certification Members                                                

  Plan
  Complete
  Delay
79
BAL BAL Business Excellence Model (BALBEM)

BALBEM First
Draft

THE ENTIRE
BALBEM CRITERIA
GUIDELINE WILL
BE REPLICA OF
BALDRIGE MODEL
AND WILL ALSO
INCLUDE THE
DEPLOYMENT
PLAN.
80
Thank You

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