In a constant quest for quality

by Dr. Lalith senaweera

With globalisation, markets have become very competitive where various products are available, providing a broad selection to consumers.

Therefore, one successful factor for organisations in competitive markets is to provide products and services which can satisfy the needs and wants of consumers. In this context, organisations have to give due consideration to the changes taking place in the market and make adjustments to its products and services so as to satisfy consumers.

In other words, consumers are demanding quality products and services and unless and until such demands are fulfilled it is not possible to survive in these markets.

This movement in the market was recognised by the several countries in the late 1980s and early 1990s, and to meet the challenges and trends, the countries set up role models in their countries to support organisations to move forward strategically by incorporating best management concepts and quality tools so that the organisations following such models could compete against rivals.

These models provided the idea to organisations that quality means not only the improvement of quality of products or services but also the continuous improvement of all functions of the organisation to ensure that the organisation moves forward strategically in the right direction to achieve excellence.

Moreover, models incorporated best practices in each area while making use of Total Quality Management (TQM) principles to ensure the models would enable the organisations to practise quality as a strategy within the organisation to achieve expected goals.

Various countries, introduced these models as Quality Awards programs and organisations around the world turned to quality awards programs to practise TQM concepts more than the recognition such programs offered.

Various models were introduced by countries to encourage organisations to achieve excellence by practising the best methods to obtain the contribution of such organisations for economic development. The following are some examples of such models and awards:

Malcolm Baldrige National Quality Award (MBNQA). The Baldrige model was introduced in the United States of America (USA) under the Malcolm Baldrige National Quality Improvement Act in August 1987, to identify the need for quality excellence and share information on successful quality strategies and benefits.

The MBNQ Acriteria embedded a set of core values and principles as the foundation for integrating key performance and operational needs within a results-oriented framework that creates a basis for action, feedback and ongoing success.

Baldrige Management considers that the core principles form a framework for performance excellence as the basis of the award's criteria. The Baldrige model is refined annually with improvements to ensure that the model captures the changing environment of the business world.

European Quality Award. The European Foundation for Quality Management (EFQM) award was introduced to recognise outstanding European Businesses, with the endorsement of the European Commission in 1991. This award is a regional program covering 16 countries.

The award is more or less similar to MBNQA but the criteria are different as it includes enablers and results. The rationale of this is to indicate the cause and effect relationship of enablers and results. The EFQM award model is also reviewed and improved based on the trends in the industry..

Deming Prize

The Deming Prize was introduced by the Union of Japanese Scientists and Engineers (JUSE) in 1951 to honour American Prof. W. Edwards Deming for his outstanding contribution to the development of the quality movement in Japan. The criteria of the prize includes 10 equally weighted points.

Likewise, many countries have introduced their national framework for business excellence using the best practices available in the country. Close to 80 countries have adopted the MBNQA model 'as it is' as the excellence model to recognise the best organisations.

Global Performance Excellence Award (GPEA). The Global Performance Excellence Award (GPEA) is administered by the Asia Pacific Quality Organisation (APQO). The governing body of APQO includes representatives from Australia, Canada, Chile, China, India, Indonesia, Korea, Malaysia, Mexico, Nepal, New Zealand, Pakistan, Philippines, Singapore, Sri Lanka, Thailand, Turkey, United States of America, United Arab Emirates and Vietnam.

The award is sponsored by a Foundation set up by APQO called The Walter L. Hurd Foundation. Management direction for the award is provided by the Global Performance Excellence Award Executive Committee.

The Sri Lanka National Quality Award (SLNQA). Sri Lanka National Quality Award (SLNQA) was introduced in 1994, by the Sri Lanka Standards Institution (SLSI) as a model for performance excellence. The sole authority for implanting the award is with the SLSI.

The award criteria are exactly the same as the Baldridge Award criteria of USA and the only difference is the slight change of the eligibility to apply for the award. The award covers four sectors: * Manufacturing, * Service, * Education and * Healthcare.

There are three awarding categories - * Large: More than 250 full-time employees, * Medium: 50-250 full-time employees, * Small: Less than 50 full-time employees.

Any interested organisation can obtain an application from SLSI and submit it along with the information.

Overview

Aa common element is there to ensure the effective management and to have a fact based, knowledge-driven, agile system to improve performance and competitiveness.

A criterion for performance excellence begins with the organisation profile as it helps any organisation to determine the gaps in respect to the needs given under different categories of the award scheme.

Therefore, it is important to do a careful self-analysis of the organisation to ascertain the situation of the organisation and cover the areas that need to be improved in respect of the award categories.

This will be a starting point of the organisational development in respect of overall activities which helps the organisation to build a quality culture within the organisation providing a road map for continuous improvement.

The other major categories of the award areas are:

Leadership, Strategy, Customers, Measurement, analysis, and knowledge management, Workforce, Operations and Results.

Evaluation process

Under the above main criteria, there are about 17 sub criteria items and each applicant will be evaluated by using a five-stage evaluation process using a scale of 1,000 points which will vary depending on the category. For instance, the category Results - has been allocated the highest - 450 points as it shows whether the organisation has had real improvement over the years.

The evaluation is done using a five-stage process as given below to ensure that the selection is done in an appropriate manner.

Stage 1- Independent evaluation of the application by panel of examiners. Stage 2 - Consensus review by the panel of experts. Stage 3 - Site visits to the applicant's premises to verify and clarify issues. Stage 4 - Report to the Review Committee. Stage 5 - Selection of the award winners by the panel of judges.

Feedback report

All applicants will receive a feed-back report detailing the strengths and weaknesses with regard to the award and that itself would be a guiding document for the organisation to proceed in the right direction to further enhance organisation activities.

During the past 20 years, 42 organisations have won the main award and some organisations have applied again after completing the five-year period and won the award repeatedly several times.

The award recipients have to share information on their successful performance and quality strategies that they have used with other Sri Lankan organisations while keeping proprietary information confidential.

The Sri Lanka National Quality Award winners are eligible to apply for the Global Performance Excellence Award (GPEA). The other needs are:

* The National Quality Award Organisation/s must recommend candidates for the Global Performance Excellence Award (GPEA).

* The National Quality Award Organisation or the candidate must include in its NQA and feedback and site visit report that the GPEA application documents reflect the organisation's actual operations.

* Applications must be in Baldrige or EFQM Award Criteria format with a maximum of 60 pages plus the feedback and site visit report.

A number of Sri Lankan award winning organisations has competed with other countries' award winning organisations and won the Global Performance Excellence Award bringing pride to our country.

The organisations while going through the SLNQA - Performance excellence criteria would gain more benefits. Some of which are: * Identify successes and opportunities for improvement, * Change the environment within the organisation, * Energise the workforce, * Focus the organisation on a common goal, * Assess your organisation's performance against the competition, * Align your resources with your strategic objectives, and * Deliver world-class results.

Role of SLSI

SLSI being the sole authority of implementing the SLNQA - Global Performance scheme has made every effort to promote the Award within the local business environment to pass on the benefits to the industry and trade while developing the economy.

When organisations work to achieve excellence such organisations always provide quality products and services which in turn help the organisations enter international markets and compete against other major international players.

SLSI hopes to have a 'Quest for Excellence' conference to share the success stories of award winners to enlighten other organisations about the importance of going through an award process. The SLSI conducts a number of training programs on the SLNQA - Performance Excellence.

The writer is the Director General of the Sri Lanka Standards Institution.