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Business Excellence Models (BEMs)

Over time, the term “Business Excellence” started to replace the terms “Quality” and “TQM”, partly as a result of the considerable confusion as to the meaning of TQM, since all types of business improvement programmes were being called TQM. The first business excellence models were developed in the mid-1980s and came about as a result of the quality movement in the West. Today, many countries view business excellence models as a key mechanism for improving the performance of organisations, as well as national competitiveness. Popular Models are MBNQA,EFQM and Deming.

MBNQA:

  • Initiated by the then-President Reagan after recognizing the declining productivity and quality standards in USA.
  • Law passed in August 1987.
  • Named after the then-Secretary-of-Commerce.
  • Baldrige Award was designed to raise awareness of quality management and recognize U.S. companies that have implemented successful quality-management systems.

The Malcolm Baldrige National Quality Award (MBNQA) is presented annually by the President of the United States to organizations that demonstrate quality and performance excellence. The U.S. Commerce Department’s National Institute of Standards and Technology manages the award and ASQ administers it.

Organizations that apply for the Baldrige Award are judged by an independent board of examiners. Recipients are selected based on achievement.

Baldrige Criteria for Performance Excellence:

Leadership:  How upper management leads the organization, and how the organization leads within the community.
Strategic planning: How the organization establishes and plans to implement strategic directions.
Customer and market focus: How the organization builds and maintains strong, lasting relationships with customers.
Measurement, analysis and knowledge management: How the organization uses data to support key processes and manage performance.
Human resource focus: How the organization empowers and involves its workforce.
Process management: How the organization designs, manages and improves key processes.
Business/organizational performance results: How the organization performs in terms of customer satisfaction, finances, human resources, supplier and partner performance, operations, governance and social responsibility, and how the organization compares to its competitors

EFQM:

During 1988 The Presidents of 14 European companies came together to create the ‘European Foundation for Quality Management’ – later to be renamed simply ‘EFQM’. EFQM was formally established on 15 September 1988 in Brussels. During 1991 The EFQM Excellence Model was born. The first European Quality Award was presented by the King of Spain at the EFQM Forum in Madrid in 1992.
The EFQM Excellence Model is the most widely used organisational framework in Europe and it is the basis for the majority of national and regional Quality Awards. Used as a tool for assessment, it delivers a picture of how well the organisation compares to similar or very different kinds of organisation. Used as a management model it can be used to define aspirations for the organisation’s capability and performance.

The EFQM Excellence Model:

  • Is a structure for the organisation’s management system
  • Can be used as part of a self-assessment
  • Provides a framework for comparison with other organisations
  • Helps to identify areas for Improvement

Deming Prize:

The Deming Application Prize: An annual award is presented to an organisation that has achieved distinctive performance improvements through the application of TQM. The prize is open to organisations in all sectors – public or private, large or small, or domestic or overseas.

Unlike the previous two models, the Deming Prize does not specify set criteria for examination during the award process, and therefore is not used for self-assessment. The applicant organisation is expected to show an understanding of its current situation, establish its own themes and objectives, and improve and transform itself company-wide. The award process examines not only the current results that have been achieved, but also the effectiveness that is expected in the future. The examiners assess whether the themes established by the organisation were commensurate to its situation, whether its activities were suitable to its circumstances, and whether or not its activities are likely to lead it to achieving its future objectives. The Prize Committee views the examination process as an opportunity for “mutual-development” rather than “examination.”

In recent years in Japan, the Japan Quality Award has become more popular than the Deming Prize . The Japan Quality Award was established in 1995 and is based on the Baldrige Criteria for Performance Excellence.

Indian Award Models:

TISCO adopted MBNQA model as JN Tata Quality Award in 1993 and was limited to the Divisions & Departments of TISCO. The Tata Son’s adopted same model as JRDQV Award in 1994. At the same time CII adopted EFQM model as CII-EXIM Award. BIS started Rajiv Gandhi National Quality Award in 1991. IMC Ramkrishna Bajaj National Quality Award was started by Indian Merchants’ Chamber in 1996. Institute of Directors has started Golden Peacock National Quality Award. These Awards are based on MBNQA & EFQM Models. Most popular award among these in India is CII-EXIM Award. We discuss more about CII-EXIM Award Model here.

CII-EXIM Award for Business Excellence:

In 1994, CII and the EXIM Bank of India joined hands to institute this Award to enhance the competitiveness of India Inc. The Award recognizes companies which have achieved exemplary levels of business excellence and can be considered to be role models for other corporate.The Award is based on the European Foundation for Quality Management (EFQM) modelThe award is being administered by CII with the technical support from European Foundation for Quality management.

The Award was established to promote the awareness of business excellence as an increasingly important element in competitiveness. Award also increases the understanding of the elements critical for business excellence. To accomplish this, the Award promotes information sharing of successful performance strategies and the benefits derived from pursuing these strategies.

References/ Sources:

Details from Official Websites of MBNQA, EFQM, CII, ASQ, BPIR, BIS, IMC and IOD. Author’s Personal experience with TISCO, Tata Projects and NPTC.

Business Excellence Award Models(TBEM/CII-EXIM/EFQM/MBNQA/DQA etc..)

  • Awareness Trainings.
  • Gap Analysis & Consultancy for implementing new initiatives
  • Documentation training.
  • Facilitation for preparation of application/ Position Document for Award
  • Facilitation (Awareness & Mock Audits) for site visit preparation
  • Workshop on Action Plan preparation based on Feedback and band shifting exercise.
  • Designing and conducting perception surveys for Customers, Employees, Society and Vendors.

Our Directors were team members in assessments for CII EXIM AWARD

  • TI Diamond Chains- Chennai
  • Balasore Alloy Limited, Balasore
  • BHEL Boiler Auxiliary Plant, Ranipet
  • BHEL Electronics Division, Bangalore
  • Kirloskar Pneumatics Ltd

Experiences of our Directors in this area are

  • JN Tata Quality Award (MBNQA Model) implementation, application document preparation of TISCO(Mines Div.) as an employee by our Director
  • JRDQV (MBNQA Model) assessment of Automobile company in Tata Group
  • Consultancy for Implementation of TBEM (MBNQA Model), Preparation of Application document for Tata Projects Ltd., in Hyderabad
  • CII-EXIM Award (EFQM Model)  Consultancy for preparation of submission document of NTPC Simhadri
  • CII-EXIM Award Consultancy for preparation of submission document of Tecumseh two times
  • CII-EXIM Award Consultancy for preparation of submission document of AP Cement Works of L&T
  • CII-EXIM Award Consultancy for preparation of submission document of NTPC Kahalgaon in 2007
  • Action Plan Preparation workshop, Preparation of Application form  for the CII-EXIM Award  NTPC Korba twice
  • CII-EXIM Award Consultancy for preparation of submission document of NTPC Talcher Super Thermal Power Station, Kaniha in Orissa in 2007
  • Preparation of Application form  for the Award for NTPC Badarpur
  • Preparation of Application form  for the Award for NTPC Auraiya
  • Preparation of Application form  for the Award for NTPC, Dadri
  • Preparation of Application form  for the Award for LANCO, Kondapalli Power Plant in Vijaywada
  • Gap Analysis and  Initial preparation of Application form for the Award for NSPCL, Rourkela*
  • Initial preparation of Application form for the Award for NSPCL, Durgapur*
  • BOSCH, Nasik Plant – “Facilitation for preparation of application document  for  Business Excellence Award”
  • Gap Analysis for DQA (EFQM Model)  for Sama Dubai, Dubai
  • Preparation of Methodology/Documentation  of Procedures for bridging gaps like 360 degree feedback, Continual Improvement, Change Management, Internal Customer Concept, Knowledge Management etc.
  • Dubai Global Village for improving the Position Report for DQA
  • ITC-ILTD Anaparthy: Gap analysis and preparation for IQRS of DNV (Integrated model of MBNQA & EFQM)