QMS Program Towards 5-Star Organization thru Business Excellence Framework (BEF)5 November 2014

Contents

1. Objective2. Background3. Current Situation4. Goals5. Closing the Performance Gap6. Conclusion7. Recommendation

1. Objective

• To improve the achievement level of business management system and processes as measured with Business Excellence Framework.

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.

2. Background

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

2. Background

Leadersh

ip

Planning

Information

Customers

People

Proce

ss

Result

0

10

20

30

40

50

60

Score % by Category Year 2012 and Year 2013 Assessment

2012 2013

Category

%

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

Current SituationRe

sults

Lead

ersh

ip

Peop

le

Info

rmati

on

Cust

omer

s

Proc

ess

Plan

ning

0

50

100

150

200

250

300

350

400

450

500

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

30.5

46.6

61.4

71.6

81.6

90.8

100.0Pareto BE Assessment Gap 2013

Gap Cumulative %

Category

Gap

Scor

e

Perc

enta

ge, %

• Based on Pareto analysis, improvement focused areas will be:

i. Leadershipii. Peopleiii. Informationiv. Customers

• ‘Results’ is outcome in nature, therefore improvement initiatives done on the above 4 categories will directly impact the results.

Current SituationMaximum Percentage

Score4.1 LEADERSHIPA. Senior Leadership 90 53%

60 39%

TOTAL 150 47%71

Score Your Assessment

48B. Governance and Societal Responsibility 23

Breakdown Result of BE Assessment

Maximum PercentageScore

4.2 PLANNINGA. Strategy Development 35 46%B. Strategy Deployment 55 52%

TOTAL 90 50%

Your Assessment Score

1629

45

Maximum PercentageScore

4.3 INFORMATIONA. Management of Information and Knowledge 90 44%

TOTAL 90 44%40

40

Your Assessment Score

Focus Area #1

Focus Area #3

Current SituationMaximum Percentage

Score4.4 CUSTOMERSA. Voice of Customer 40 46%B. Customer Engagement 70 61%

TOTAL 110 56%

Your Assessment Score

1843

61

Maximum PercentageScore

4.5 PEOPLEA. 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%

96

48

10

Score

10

Your Assessment

13

Maximum PercentageScore

4.6 PROCESSA. 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

Current SituationMaximum Percentage

Score4.7 RESULTSA. 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 Between100%79%49%

Current SituationSME COMPETITIVENESS RATING FOR ENHANCEMENT (SCORE) Result 2013

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 MalaysiaTourism 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

Current Situation

?

Goals

Leadersh

ip

Planning

Information

Customers

People

Proce

ssResu

lt0

10

20

30

40

50

60

70

80

90

100

BE Assessment Score

Category

%

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]

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)

Closing the Performance GapTQM 2 Years Plan

PHAS

E 2:

Cu

stom

er, P

roce

ss, R

esul

tPH

ASE

1: L

eade

rshi

p, P

eopl

e, In

form

ation

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

Closing the Performance GapNo. 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

Closing the Performance GapBE 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

Closing the Performance GapThe Cooking Book - TQM Handbook

1. CEO2. Manager3. Common Employees4. Policy Management5. Standardization6. Daily Management7. QC Circle8. Problem Solving9. Statistical Method10. Safety Control11. Process Control12. Management of

Facilities and Equipment

13. Measurement Control14. Inspections15. Education and Training16. External Supplier –

Purchasing17. Production Control18. Disposal and Proper

Arrangement19. Cleaning, Cleanliness,

Environment20. Technology

Development and Design Management

21. After Sale Service

Conclusion1. 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.

Recommendation1. 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 Kusniii. Information – En. Wan Suffian Bin Wan Mansoriii. People – En. Md. Nadzri Bin Hamzahiv. Process – En. Wan Suffian Bin Wan Mansorv. Planning – En. Ahmad Shafie Bin Kusnivi. 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.