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QMS Program Towards 5-Star Organization thru Business Excellence

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QMS Program Towards 5-Star Organization thru Business Excellence

  1. 1. QMS Program Towards 5-Star Organization thru Business Excellence Framework (BEF) 5 November 2014
  2. 2. Contents 1. Objective 2. Background 3. Current Situation 4. Goals 5. Closing the Performance Gap 6. Conclusion 7. Recommendation
  3. 3. 1. Objective • To improve the achievement level of business management system and processes as measured with Business Excellence Framework.
  4. 4. 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.
  5. 5. 2.Background
  6. 6. 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
  7. 7. 2. Background 0 10 20 30 40 50 60 % Category Score % by Category Year 2012 and Year 2013 Assessment 2012 2013 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
  8. 8. Current Situation 30.5 46.6 61.4 71.6 81.6 90.8 100.0 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 0 50 100 150 200 250 300 350 400 450 500 Results Leadership People Information Customers Process Planning Percentage,% GapScore Category Pareto BE Assessment Gap 2013 Gap Cumulative % • Based on Pareto analysis, improvement focused areas will be: i. Leadership ii. People iii. Information iv. Customers • ‘Results’ is outcome in nature, therefore improvement initiatives done on the above 4 categories will directly impact the results.
  9. 9. Current Situation Maximum Percentage Score 4.1 LEADERSHIP A. Senior Leadership 90 53% 60 39% TOTAL 150 47%71 Score Your Assessment 48 B. Governance and Societal Responsibility 23 Breakdown Result of BE Assessment Maximum Percentage Score 4.2 PLANNING A. Strategy Development 35 46% B. Strategy Deployment 55 52% TOTAL 90 50% Your Assessment Score 16 29 45 Maximum Percentage Score 4.3 INFORMATION A. Management of Information and Knowledge 90 44% TOTAL 90 44%40 40 Your Assessment Score Focus Area #1 Focus Area #3
  10. 10. Current SituationMaximum Percentage Score 4.4 CUSTOMERS A. Voice of Customer 40 46% B. Customer Engagement 70 61% TOTAL 110 56% Your Assessment Score 18 43 61 Maximum Percentage Score 4.5 PEOPLE A. 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% 9 6 48 10 Score 10 Your Assessment 13 Maximum Percentage Score 4.6 PROCESS A. 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
  11. 11. Current SituationMaximum Percentage Score 4.7 RESULTS A. 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 Between 100% 79% 49%
  12. 12. Current Situation SME COMPETITIVENESS RATING FOR ENHANCEMENT (SCORE) Result 2013
  13. 13. 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 Malaysia Tourism 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
  14. 14. Current Situation ?
  15. 15. Goals 0 10 20 30 40 50 60 70 80 90 100 % Category BE Assessment Score 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]
  16. 16. 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)
  17. 17. Closing the Performance Gap TQM 2 Years Plan PHASE2: Customer,Process,Result PHASE1: Leadership,People,Information 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
  18. 18. Closing the Performance Gap 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 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
  19. 19. Closing the Performance Gap BE 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
  20. 20. Closing the Performance Gap The Cooking Book - TQM Handbook 1. CEO 2. Manager 3. Common Employees 4. Policy Management 5. Standardization 6. Daily Management 7. QC Circle 8. Problem Solving 9. Statistical Method 10. Safety Control 11. Process Control 12. Management of Facilities and Equipment 13. Measurement Control 14. Inspections 15. Education and Training 16. External Supplier – Purchasing 17. Production Control 18. Disposal and Proper Arrangement 19. Cleaning, Cleanliness, Environment 20. Technology Development and Design Management 21. After Sale Service
  21. 21. Conclusion 1. 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.
  22. 22. Recommendation 1. 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 Kusni ii. Information – En. Wan Suffian Bin Wan Mansor iii. People – En. Md. Nadzri Bin Hamzah iv. Process – En. Wan Suffian Bin Wan Mansor v. Planning – En. Ahmad Shafie Bin Kusni vi. 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.

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