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7/30/2019 Business Excellence Lecture
http://slidepdf.com/reader/full/business-excellence-lecture 1/47
Business Excellence
Opening frontiers for world market
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OMKAR
C on s ul t e ch ,P un e
2 /4 8
What does it mean?
Business Excellence: Excellence in every aspect
of business,
Opening: Exposure, Acceptance by other
people,
Frontiers: the main area where we meet people
face to face,
World market: Markets of all countries
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OMKAR
C on s ul t e ch ,P un e
3 /4 8
Business Excellence
Excellence
Philosophy
Method
Tools
Core values and
concepts
Deployment of TQM &Assessment as per RBNQA
Six Sigma, Balanced Score Card, X matrix, Process
mapping, QFD, TPM, SPC, MBTI
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OMKAR
C on s ul t e ch ,P un e
4 /4 8
National Quality Awards
IMC_RBNQA
CII Exim Bank Excellence Award
RGNQA
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OMKAR
C on s ul t e ch ,P un e
5 /4 8
IMC Ramkrishna Bajaj National
Quality Award
RAMKRISHNA BAJAJ
22-09-1923 to 21-09-1994
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OMKAR
C on s ul t e ch ,P un e
6 /4 8
IMC Ramkrishna Bajaj National
Quality Award
Ramkrishna Bajaj National Quality Award
Established: 1998
Award is given for excellence in
• Manufacturing
• Service
• Small Business
Certificate of merit and commendation certificate is
given to those who qualify.
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OMKAR
C on s ul t e ch ,P un e
7 /4 8
IMC Juran Quality Medal
• PAST WINNERS
• 2005 Mr Rahul Bajaj
• 2004 Dr Verghese Kurien
•2003 Mr Ratan Tata
• 2002 Dr R A Mashelkar
• 2001 Dr J J Irani
• 2000 Mr F C Kohli
• 1999 Mr Chandra Mohan
• 1998 Mr Suresh Krishna
• 1997 Mr D L Shah
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C on s ul t e ch ,P un e
8 /4 8
IMC Ramkrishna Bajaj National
Quality Award PAST WINNERS
2005 • TATA Chemicals, Babrala
• Larson & Toubro, ECC Chennai
• D A V Public school
• PT Elegent Textiles Indonesia
2004 •TATA Chemical, Mithapur
•BHEL Boiler Auxiliaries,Ranipet
•I-flex solutions, Mumbai
2003 •Birla Cellulosic, Kharach
2002 •Reliance Industries (Hazira)
•University Institute of Chemical Technology
2001 •Indo Gulf Corporation
•Satyam Computer Services
2000 •Thai Acrylic Fibre, Saraburi
•INFOSYS Technologies
1999 •Housing Development Finance Corporation
1998 •Vikram Cement
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OMKAR
C on s ul t e ch ,P un e
9 /4 8
IMC Ramkrishna Bajaj National
Quality Award
Cert. Merit 22
Commendation Cert. 16
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OMKAR
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1 0 /4 8
Business Excellence
Leadership
Strategic planning
Customer & Market Focus
Measurement, Analysis & Knowledge Management
Human Resource Focus
Process management
Business results
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OMKAR
C on s ul t e ch ,P un e
11 /4 8
Core Values & Concepts
• Visionary Leadership
• Customer-Driven Excellence
• Organizational and Personal Learning
• Valuing Employees and Partners
• Agility
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C on s ul t e ch ,P un e
12 /4 8
Core Values & Concepts ….
• Focus on the Future
• Managing for Innovation
•
Management by Fact• Social Responsibility
• Focus on Results and Creating Value
• Systems Perspective
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OMKAR
C on s ul t e ch ,P un e
1 3 /4 8
Core Values & Concepts ….Visionary leadership
Your organization’s senior leaders should• Set directions and create a customer focus, clear and visible values, and
high expectations.
• Ensure the creation of strategies, systems, and methods for achievingexcellence, stimulating innovation, and building knowledge and
capabilities.• Inspire and motivate your entire workforce and should encourage all
employees to contribute, to develop and learn, to be innovative, and to becreative.
• Be responsible to your organization’s governance body for their actionsand performance.
• Serve as role models through their ethical behavior and their personalinvolvement in planning, communications, coaching, development of future leaders, review of organizational performance, and employeerecognition. .
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C on s ul t e ch ,P un e
14 /4 8
Core Values & Concepts ….
Customer-driven excellence
Quality and performance are judged by an organization’s customers. Such behavior leads to
customer acquisition,
satisfaction,
preference,
referral,retention and loyalty, and
business expansion.
Customer-driven excellence has both current and future components:
understanding today’s customer desires and
anticipating future customer desires and marketplace potential.
Value and satisfaction may be influenced by many factors throughout your customers’ overall purchase, ownership, and service experiences. Thesefactors include your organization’s relationships with customers, which helpto build trust, confidence, and loyalty.
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OMKAR
C on s ul t e ch ,P un e
1 5 /4 8
Core Values & Concepts ….
Customer-driven excellence………
Customer-driven organizations address not only the product and
service characteristics that meet basic customer requirements
but also those features and characteristics that differentiate
products and services from competing offerings.
Customer-driven excellence is thus a strategic concept. It isdirected toward customer retention and loyalty, market share
gain, and growth. It demands constant sensitivity to changing
and emerging customer and market requirements and to the
factors that drive customer satisfaction and loyalty. It demands
listening to your customers. It demands anticipating changes in
the marketplace.
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OMKAR
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1 6 /4 8
Core Values & Concepts ….
Organizational and personal learning
Achieving the highest levels of business performance requires awell-executed approach to organizational and personal learning.Organizational learning includes both continuous improvementof existing approaches and adaptation to change, leading to newgoals and/or approaches. Learning needs to be embedded in the
way your organization operates. This means that learning1. Is a regular part of daily work;
2.Is practiced at personal, work unit, and organizational levels;
3.Results in solving problems at their source (―root cause‖);
4.Is focused on building and sharing knowledge throughout your
organization; and5.Is driven by opportunities to effect significant, meaningful change.Sources for learning include employees’ ideas, research anddevelopment (R&D), customers’ input, best practice sharing, and benchmarking.
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C on s ul t e ch ,P un e
17 /4 8
Core Values & Concepts ….
Organizational and personal learning.
Organizational learning can result in
1. Enhancing value to customers through new and improved products
and services;
2. Developing new business opportunities;
3. Reducing errors, defects, waste, and related costs;4. Improving responsiveness and cycle time performance;
5. Increasing productivity and effectiveness in the use of all resources
throughout your organization; and
6. Enhancing your organization’s performance in fulfilling its societal
responsibilities and its service to your community as a goodcitizen.
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OMKAR
C on s ul t e ch ,P un e
1 8 /4 8
Core Values & Concepts ….
Organizational and personal learning.
Employees’ success depends increasingly on having opportunitiesfor personal learning and practicing new skills. Organizations
invest in employees’ personal learning through education,
training, and other opportunities for continuing growth.
Personal learning can result in1.More satisfied and versatile employees who stay with your organization,
2.Organizational cross-functional learning,
3.Building the knowledge assets of your organization, and
4.An improved environment for innovation.
Thus, learning is directed not only toward better products andservices but also toward being more responsive, adaptive,
innovative, and efficient
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C on s ul t e ch ,P un e
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Core Values & Concepts ….Valuing employees and partners
An organization’s success depends increasingly on the diverse
knowledge, skills, creativity, and motivation of all its employees and
partners. Valuing employees means committing to their satisfaction,
development, and well-being. Major challenges in the area of valuing
employees include
demonstrating your leaders’ commitment to your employees’ success,
recognition that goes beyond the regular compensation system,
development and progression within your organization,
sharing your organization’s knowledge so your employees can better
serve your customers and contribute to achieving your strategic
objectives, and creating an environment that encourages risk taking and
innovation.
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C on s ul t e ch ,P un e
2 0 /4 8
Core Values & Concepts ….Valuing employees and partners
Organizations need to build internal and external partnerships to
better accomplish overall goals. Internal partnerships might
include labor-management cooperation. Partnerships with
employees might entail employee development, cross training,
or new work organizations, such as high-performance work teams. Internal partnerships also might involve creating network
relationships among your work units to improve flexibility,
responsiveness, and knowledge sharing. External partnerships
might be with customers, suppliers, and education organizations.
Strategic partnerships or alliances are increasingly importantkinds of external partnerships. Such partnerships might offer
entry into new markets or a basis for new products or services.
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C on s ul t e ch ,P un e
21 /4 8
Core Values & Concepts ….Valuing employees and partners ….
Also, partnerships might permit the blending of your
organization’s core competencies or leadership capabilities with
the complementary strengths and capabilities of partners.
Successful internal and external partnerships develop longer-
term objectives, thereby creating a basis for mutual investmentsand respect. Partners should address the key requirements for
success, means for regular communication, approaches to
evaluating progress, and means for adapting to changing
conditions. In some cases, joint education and training could
offer a cost-effective method for employee development.
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C on s ul t e ch ,P un e
22 /4 8
Core Values & Concepts ….Agility
Success in globally competitive markets demands agility — a capacity for
rapid change and flexibility. E-business requires and enables more rapid,
flexible, and customized responses. Businesses face ever-shorter cycles for
the introduction of new/improved products and services, as well as for faster
and more flexible response to customers.Cross-trained and empowered
employees are vital assets in such a demanding environment.A major success factor in meeting competitive challenges is the design-to-
introduction (product or service initiation) or innovation cycle time. To meet
the demands of rapidly changing global markets, organizations need to carry
out stage-to-stage integration (such as concurrent engineering) of activities
from research or concept to commercialization.
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OMKAR
C on s ul t e ch ,P un e
2 3 /4 8
Core Values & Concepts ….Focus on the future
In today’s competitive environment, a focus on the future
requires understanding the short- and longer-term factors that
affect your business and marketplace. Pursuit of sustainable
growth and market leadership requires a strong future
orientation and a willingness to make long-term commitments tokey stakeholders — your customers, employees, suppliers and
partners, stockholders, the public, and your community.
Strategic objectives and resource allocations need to
accommodate these influences. A focus on the future includes
developing employees and suppliers, doing effective succession planning, creating opportunities for innovation, and anticipating
public responsibilities.
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OMKAR
C on s ul t e ch ,P un e
24 /4 8
Core Values & Concepts ….Managing for innovation
Innovation means making meaningful change to improve an
organization’s products, services, and processes and to create
new value for the organization’s stakeholders. Innovation
should lead your organization to new dimensions of
performance. Innovation is no longer strictly the purview of research and development departments; innovation is important
for all aspects of your business and all processes. Organizations
should be led and managed so that innovation becomes part of
the learning culture and is integrated into daily work. Innovation
builds on the accumulated knowledge of your organization andits employees. Therefore, the ability to capitalize on this
knowledge is critical to managing for innovation.
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OMKAR
C on s ul t e ch ,P un e
2 5 /4 8
Core Values & Concepts ….Management by fact
Organizations depend on the measurement and analysis of
performance.
Such measurements should derive from business needs and strategy, and
they should provide critical data and information about key processes,
outputs, and results. Performance measurement should include customer,
product, and service performance; comparisons of operational, market,and competitive performance; and supplier, employee, and cost and
financial performance.
Analysis refers to extracting larger meaning from data and information to
support evaluation, decision-making, and improvement. Analysis entails
using data to determine trends, projections, and cause and effect thatmight not otherwise be evident. Analysis supports a variety of purposes,
such as planning, reviewing your overall performance, improving
operations, change management, and comparing your performance with
competitors’ or with ―best practices‖ benchmarks.
l
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OMKAR
C on s ul t e ch ,P un e
2 6 /4 8
Core Values & Concepts ….Management by facts …
A major consideration in performance improvement and change
management involves the selection and use of performance
measures or indicators. The measures or indicators you select
should best represent the factors that lead to improved
customer, operational, and financial performance. Acomprehensive set of measures or indicators tied to customer
and/or organizational performance requirements represents a
clear basis for aligning all processes with your organization’s
goals. Through the analysis of data from your tracking
processes, your measures or indicators themselves may beevaluated and changed to better support your goals.
Core Values & Concepts
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C on s ul t e ch ,P un e
27 /4 8
Core Values & Concepts ….
Social responsibility
An organization’s leaders should stress responsibilities to the
public, ethical behavior, and the need to practice good
citizenship. Leaders should be role models for your organization
in focusing on business ethics and protection of public health,
safety, and the environment. Protection of health, safety, and theenvironment includes your organization’s operations, as well as
the life cycles of your products and services.
For many organizations, the product design stage is critical from
the point of view of public responsibility. Design decisions
impact your production processes and often the content of municipal and industrial waste. Effective design strategies
should anticipate growing environmental concerns and
responsibilities.
Core Values & Concepts
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C on s ul t e ch ,P un e
2 8 /4 8
Core Values & Concepts ….
Social responsibility
Organizations should not only meet all local, state, andfederal laws and regulatory requirements, but theyshould treat these and related requirements asopportunities for improvement ―beyond mere
compliance.‖ Highly ethical conduct should be arequirement of and should be monitored by theorganization’s governance body. Practicing goodcitizenship refers to leadership and support — within thelimits of an organization’s resources — of publiclyimportant purposes. Managing social responsibilityrequires the use of appropriate measures and leadershipresponsibility for those measures.
Core Values & Concepts
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C on s ul t e ch ,P un e
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Core Values & Concepts ….
Focus on results and creating value
An organization’s performance measurements need to focus on
key results. Results should be used to create and balance value
for your key stakeholders — customers, employees, stockholders,
suppliers and partners, the public, and the community. By
creating value for your key stakeholders, your organization builds loyalty and contributes to growing the economy.
The use of a balanced composite of leading and lagging
performance measures offers an effective means to
communicate short- and longer-term priorities, monitor actual
performance, and provide a clear basis for improving results.
C V l & C t
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C on s ul t e ch ,P un e
3 0 /4 8
Core Values & Concepts ….Systems perspective
The RBNQA Criteria provide a systems perspective for
managing your organization and its key processes to achieve
results — performance excellence. The seven RBNQA
Categories and the Core Values form the building blocks and
the integrating mechanism for the system. However, successfulmanagement of overall performance requires organization
specific synthesis, alignment, and integration.
Synthesis: looking at your organization as a whole and building upon key
business requirements, including your strategic objectives and action
plans.Alignment: using the key linkages among requirements given in the
RBNQA Categories to ensure consistency of plans, processes, measures,
and actions.
Core Values & Concepts
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C on s ul t e ch ,P un e
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Core Values & Concepts ….
Systems perspective
These concepts are depicted in the RBNQA framework. A
systems perspective includes your senior leaders’ focus on
strategic directions and on your customers. It means that your
senior leaders monitor, respond to, and manage performance
based on your business results. A systems perspective alsoincludes using your measures, indicators, and organizational
knowledge to build your key strategies. It means linking these
strategies with your key processes and aligning your resources
to improve overall performance and satisfy customers. Thus, a
systems perspective means managing your whole organization,as well as its components, to achieve success.
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RBNQA
• SCOPE
• 7 Criteria
• 19 Criterion Parts
• 229 Areas to Address
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RBNQA -- Business Excellence
Leadership
Organizational leadership
What Excellent organizations do?
Build a strong leadership team that is not dependent upon any
one individual.
Clearly communicate the vision, mission, and values, using
plain language – not buzzwords.
Employ a thorough system of governance to make sure laws,
rules and organizational values are followed consistently.
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C on s ul t e ch ,P un e
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RBNQA -- Business Excellence
Leadership
Social responsibility
What Excellent organizations do?
Set stretch goals to improve performance in areas of public
health and environmental protection.
Go beyond mandated performance levels in ethics, public
safety, environmental, and other areas of regulation.
Allocate significant resources for activities that relate to
corporate citizenship, and educational, community, charity, and
professional organizations.
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C on s ul t e ch ,P un e
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RBNQA -- Business Excellence
Strategic planning
Strategy development
What Excellent organizations do?
Complete a thorough situation analysis that looks at strengths,
weaknesses, opportunities, and threats, using a systematic
model.
Write annual and longer-term strategic plans in 1 to 2 months
with minimal drafts.Focus the planning process on strategic thinking, rather than
creating a binder.
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MKAR
C on s ul t e ch ,P un e
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RBNQA -- Business Excellence
Strategic planning
Strategy deployment
What Excellent organizations do?·
Identify key success factors that differentiate your organization
from key competitions.·
Set measurable targets for each measure of performance, based
upon relevant data (e.g. competitors, resources, customer needs,
etc)·Define specific strategies or action plans for hitting targets.
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C on s ul t e ch ,P un e
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RBNQA -- Business Excellence
Customer & Market FocusCustomer & Market knowledge
What Excellent organizations do?
Clearly identify customers and segment them by market,
geography, or other categories.
Use a variety of methods to identify customer requirements
and priorities.
Continuously evaluate and improve methods to determinecustomer requirements.
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C on s ul t e ch ,P un e
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RBNQA -- Business Excellence
Customer & Market Focus
Customer relationship & satisfaction
What Excellent organizations do?·
Hire the best and brightest customer contact people. Pay them
well, thoroughly train them. And give them authority to solve
customer problems without checking with management.·
Define measurable service standards and measure
performance against them.·Provide toll-free help lines or conveniences to make it easy to
get information.
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RBNQA -- Business Excellence
Measurement, Analysis & Knowledge Management
Measurement & Analysis of organizational performance
What Excellent organizations do?·
Develop measures linked to their vision or strategy, as well as
overall mission.·
Keep the no of metrics that any manager or executive reviews
to no more than 20.·
Include a balance of measures that focus on the past, presentand future, and that relate to the needs of shareholders/owners,
customers, and employees.
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RBNQA -- Business Excellence
Measurement, Analysis & Knowledge Management
Information & Knowledge Management
What Excellent organizations do?
Communicate up-to-date performance data using consistent
graphics and formats across the organization.
Use the best custom designed or packaged score card software
on the market to communicate performance data.
Make use of organization intranet sites or other appropriatemethods to communicate real-time performance data to all
necessary personnel.
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RBNQA -- Business Excellence
Human Resource FocusWork Systems
What Excellent organizations do?·
Design jobs and organizational structure to promote
cooperation, initiative, and behavior consistent with the values
or culture of the organization.·
Make use of the innovative and effective recognition and
compensation programs to drive loyalty and high performance
from employees.Thoroughly screen potential new hires and candidates for
promotions for appropriate knowledge/skills, as well as values
that are consistent with the culture.
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RBNQA -- Business Excellence
Human Resource FocusEmployee learning & Motivation
What Excellent organizations do?Invest up to 5% of payroll costs on training each year.
Perform systematic need analysis to determine training needs
for all employees.
Develop curriculums for all key functions/positions.
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C on s ul t e ch ,P un e
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RBNQA -- Business Excellence
Human Resource Focus
Employee well-being & satisfaction
What Excellent organizations do?Focus on delighting employees rather than simply satisfying
them.
Establish goals for safety and employee satisfaction based on
world-class companies.Implement a prevention based approach to safety and
employee health. .
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RBNQA -- Business Excellence
Process management
Value Creation Processes
What Excellent organizations do?·Define and document the key work processes involved in
designing and producing the organization’s products and/or
services.·
Identify key requirements for each of the processes throughresearch and analysis of customer requirements
Develop and track process measures and standards that link
back to important outcome measures..
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RBNQA -- Business Excellence
Process management
Support Processes
What Excellent organizations do?·Identify and document major support processes.·
Define internal customer requirements for support processes.·
Establish process measures and service standards and monitor
performance against those standards.
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C on s ul t e ch ,P un e
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RBNQA -- Business Excellence
Business results
Customer focused Results
Product & service Results
Financial & market ResultsHuman resource Results
Organizational effectiveness Results
Governance & Social responsibility Results
IMC Ramakrishna Bajaj National
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