Course -21

Total Quality Management

2. Explain the healthy practices followed in EFQM & MBNQ awarded companies.

Introduction: -

Total quality management (TQM) is an approach to management embracing both

social and technical dimensions aimed at achieving excellent results, which needs

to be put into practice through a specific framework.

Nowadays, quality award models, such as the Malcolm Baldrige National Quality

Award (MBNQA) and the European Foundation for Quality Management (EFQM)

Excellence Model, are used as a guide to TQM implementation by a large

number of organizations. Nevertheless, there is a paucity of empirical research

confirming whether these models clearly reflect the main premises of TQM.

Since the 1990s, most firms have used the models underpinning quality awards,

such as the Deming Prize (DP Model) in Japan, the Malcolm Baldrige National

Quality Award (MBNQA) Model in the USA, and the European Quality Award (EFQM

Excellence Model) in Europe, as a framework for implementing TQM initiatives.

Many researchers have considered quality models as operational frameworks for

TQM

Overview: -

Most TQM approaches strongly emphasize measurement. Some insist on the use of

cost of quality. The recognition that TQM is a board culture change vehicle with

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internal and external focus embracing behavioral and service issue, as well as

quality assurance and process control, prompted the United States to develop one

of the most famous and now widely used framework, the Malcolm Baldrige

National Quality Award (MBNQA). The award itself, which is composed of two solid

crystal forms 14 inches high, is presented annually in USA that have “excelled in

quality management and quality achievement”. But it is not award itself, it is

presented each year by the President of the USA, which has attracted many

company or organization; it is the excellent framework, which is one of the closest

thing organization have to an international standard for TQM.

The MBNQA aims to promote to understanding of requirements for performance

excellence and competitive improvement and sharing of information of successful

performance strategies and the benefit to be derived from using these strategies.

Moreover, in a framework of seven first-level categories that are used to assess

organization, there are leadership, strategies planning, customer and market

focus, information and analysis, human resource focus, process management and

business result.

Another self-assessment model is European Foundation for Quality Management

(EFQM), in European it has also been recognized that the technique of self-

assessment is very useful for any organization wishing to monitor and improve it

performance. In 1992 EFQM was launched a European Quality Award which is now

widely used for systematic review and measurement of operations.

The EFQM model recognized that processes are the means by which organization

harness and releases the talents of its people to produce result performance.

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Moreover, improving in performance can be achieved by improving the processes

by involving the people.

EFQM are awarded to a number of companies that demonstrate excellence in

management of quality as their fundamental process for continuous improvement.

To receive price, companies must demonstrate that their approach of TQM has

contributed significantly to satisfying the expectations of customers, employees

and others with an interest in the company for the past few years. In 1999, the

European Quality Award was renamed “The EFQM Excellence Model”. The changes

made were attempt to reflect new areas of management and quality thinking such

as partnership and innovation) and places more emphasize on customer and

market focus.

The EFQM Excellent Model is based on the idea that the outcomes of quality

management in terms of what it calls “people result”, “customer result”, “society

result” and “key performance results” are achieved through a number of

“enablers”. These enablers are leadership and constancy of purpose, policy and

strategy, how the organizes. The five enabler are concerned with how results are

being achieved, while the four “results” are concerned what the organization has

achieved and is achieving.

The nice element of the model are defines by the EFQM are, leader develop and

facilitate the achievement of the mission and vision, develop values required for

long-term success and implement these through appropriate actions and behavior

and are personally involved in ensuring that the organization’s management

system is developed and implemented.

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Another is policy and strategy, how the organization implements its mission and

vision through a clear stakeholder-focus strategy, supported by relevant policies,

plans, objectives, target and processes.

Based on the people, is define how the organization manages, develops individual

team and organization level, and how it plans these activities in order to support

its policy and strategy and the effective operation of its processes.

Beside, organization also plans and manages its external partnerships and internal

resources in order to support its policy and strategy and fully satisfy and generate

increasing value for, its customer’s loyalty and their perceptions of the

organization’s image, product and services, sales and after-sales support.

Another is peopled result, this cover employees motivation, satisfaction,

performance and the services the organization that provide by the people.

Moreover, the society results relate to the organization performance responsible to

the citizen, its involvement in the community in which it operates, and any

recognition it might have received.

Key performance result, this shows the financial and non-financial outcomes of the

organization planned performance, include such things as cash flow, profit,

meeting budgets, success rates and the value of intellectual property.

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