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Total quality management achievement: King Abdullah II Award for Excellence of Jordan as a model
Technovation 23 (2003) 649–652 www.elsevier.com/locate/technovation
Total quality management achievement: King Abdullah II Award for Excellence of Jordan as a model Z.S.H. Abu-Hamatteh a,∗, T.A. Al-Azab b, M. El-Amyan c a
Al Balqa’ Applied University, Tafila Applied University College, Natural Resources and Chemical Engineering Department, PO Box 26, Tafila 66141, Jordan b Al-Balqa’ Applied University, Al-Salt Community College, Salt, Jordan c Al-Balqa’ Applied University, Aqaba Applied University College,Aqaba, Jordan
Abstract The King Abdullah II Award for Excellence is the highest level of recognition of quality in Jordan. It aims at enhancing the competitiveness of Jordanian businesses by promoting quality awareness and performance excellence, recognizing quality and business achievements of Jordanian companies, and publicizing these companies’ successful performance strategies and promoting sharing them. The award activities are held biennially. One award is given in each of the following categories: (1) Manufacturing companies or sub-units; (2) Service companies or sub-units; (3) Small or medium-size manufacturing companies (employees less than or equal to 30), and (4) Small or medium-size service companies (employees less than or equal to 100). Implementing the award’s criteria will lead to achievement of total quality management. 2002 Elsevier Science Ltd. All rights reserved. Keywords: Management; Excellence; Jordan; Quality; Competitiveness
1. Introduction Award recipients receive the trophy of the King Abdullah II Award for Excellence, which is presented biennially in a special ceremony in Amman-Jordan (KAAE-GE, 2000; 2002). They will be recognized as national and international role models, and may also publicize and advertise their award. The organizations benefit from the award criteria, which act as a guideline for performance excellence (KAAE-A, 2000). They force organizations to take a deep look at their business practices, their employees, and their customer relationships in an objective and measurable way through self-assessment. The establishments gain an outside perspective on its organization by members of the Board of Examiners. The results of this review are distilled in a feedback report, outlining strengths and opportunities for improvements based on the criteria of the award. FeedCorresponding author. Tel.: +962-3-2250326; fax: +962-32250033. E-mail address: [email protected] (Z.S.H. AbuHamatteh). ∗
back reports could be used by the organizations as part of their strategic planning processes to focus on their customers and to improve productivity, as well as to help energize and guide their organizational improvement programs (KAAE-A, 2002). The award is developed and administered by the Industrial Development Directorate (IDD) at the Ministry of Industry and Trade (MIT) and the Jordan–United States Business Partnership (JUSBP) Quality and Standard component, funded by the USAID (KAAE-GE, 2000; KAAE-A, 2000; KAAE-E, 2000).
2. Methodology Five areas of focus, called criteria (Table 1), are divided into sub criteria weighted by their relative importance (KAAE-E, 2000). The award stages are performed on four independent stages (Fig. 1). They are as follows. 2.1. Independent review The application report is reviewed independently by members of the Board of Examiners. At the end of this
0166-4972/02/$ - see front matter 2002 Elsevier Science Ltd. All rights reserved. doi:10.1016/S0166-4972(02)00127-X
650
Z.S.H. Abu-Hamatteh et al. / Technovation 23 (2003) 649–652
Table 1 Award criteria Leadership Strategic Planning Process Management Resources Management Results Total Points
2.4. Final selection 200 Points 150 Points 200 Points 250 Points 200 Points 1000
The Steering Committee will review the award recommendations and make the final determination of award recipients (KAAE-A, 2000; 2002).
3. Awards criteria 3.1. Leadership This criterion focuses on the main and vital roles of top management, and setting values and general philosophy for the organization, as well as the designing of the training plans including the assessment of the training needs and their evaluation. Top management also focuses on adopting and implementing the “Excellence” concept through ensuring financial, moral, and personal support. The criterion focuses on creating suitable methodology to select and maintain competent leaders at the top management level. Leadership sub criteria are (Table 2):
Fig. 1.
Block diagram illustrating the award stages (Award Cycle).
stage, applications are forwarded for further review. The written comments supplied by the examiners are used to prepare feedback report for the applicant in the next stages (KAAE-E, 2000). 2.2. Consensus review The application report is reviewed jointly by a team of members of the Board of Examiners, led by senior examiners. At the end of the consensus review, the Head of the Board of Examiners determines which applicants should receive site visits. Feedback reports will be sent to applicants who are not selected for site visits after the award ceremony (KAAE-E, 2002). 2.3. Site visit and final review A team of members of the Board of Examiners, led by a senior examiner, will conduct site visits for verification and clarification of the application report. Site visits consist primarily of a review of pertinent records and data and interviews with executives and employees. Following the site visit, the site visit review team submits its report to the Head of the Board of Examiners. The Head of the Board of Examiners conducts a final review and presents award recipients recommendations to the Steering Committee. Feedback reports will be sent to the applicants after the award ceremony (KAAE-E, 2000).
1. 2. 3. 4.
Leadership Leadership Leadership Leadership
Vision Educational System Support Selection and Suitability
3.2. Strategic planning This criterion focuses on the extent and ability of the organization to set and implement comprehensive strategic plans. These plans contain mission and vision statements, external environmental analysis, objectives, and strategies. This would help in achieving the overall Table 2 Leadership sub criteria Leadership Leadership Vision Documented vision Leadership Educational System Documented, approved training plan Training needs assessment Training evaluation system Incentives for educational development Participation in association Statistics Leadership Support Communication and coordination methodology Financing development projects Adopting development effort Authority delegation Leadership Selection and Suitability Methodology for selecting leaders Methodology of evaluating performance of leaders
Z.S.H. Abu-Hamatteh et al. / Technovation 23 (2003) 649–652
objectives of the company and the ability to take the right decisions in case of non-compliance. Strategic Planning sub criteria are (Table 3): 1. 2. 3. 4. 5. 6.
Mission Statement External Environmental Analysis Objectives Strategies Projects and Action Plans Implementation and Control
4. Processes management This criterion focuses on the extent of the company’s commitment in setting and implementing a comprehensive methodology to plan, execute, and develop work systems for all activities within the company. This criterion also focuses on promoting excellent policies, procedures, documents and organizational methods. This criterion focuses on the organizational structure within the company, and the pursuit of maximum efficiency of communications and coordination between all levels. It points out the importance of having a comprehensive methodology in running the customers’ affairs and requirements (e.g., information, assistance, complaints, and suggestions). Processes Management sub criteria are (Table 4): 1. Quality System 2. Customers Relationship Management 3. Coordination and Structure
Table 3 Strategic planning sub criteria Strategic Planning Mission Statement Documented Mission External Environmental Analysis Methodology of analyzing political, economic, and social environment Methodology of specifying customers and their demands Methodology of specify competitors and their capabilities Methodology of specifying suppliers and their capabilities Objectives Documented objectives Strategies Documented strategies Projects and Action Plans Documented projects, programs, and action plans Implementation and Control Action plans implementation Methodology for follow up and control Procedure taken if not implemented Statistical reports about levels of execution Regularities in reports
651
Table 4 Processes management sub criteria Processes Management Quality System Nature of documented and applied regulations (obtaining ISO 9000) and methodologies to prepare, review, adopt and modernize Customer Relation Management Methodology for gathering and analyzing information System to specify needs System for suggestions and complaints Information disk Coordination and Structure Methodology for setting, revDewing, improving the organization structure Mechanism for ensuring coordination Methodology for authority delegation Units’ job description Job description
4.1. Resources management This criterion focuses on having and implementing a clear methodology to plan, develop, enhance, deploy, and review the resources (e.g., human, information, financial, materials and technological) needed to succeed. Resources Management sub criteria are (Table 5): Table 5 Resources management sub criteria Resources Management Human Resources Methodology for gathering and analyzing information about employees Welfare program Suggestions and complaints system Recruiting system Documented and applied programs to specify the career path System to specify training needs and mechanism to evaluate training Incentives system Information Resources System for specifying the needs for information system Having information system covering most of the duties Activation mechanism Extent of utilizing information system Financial Resources Documented and applied methodology to prepare budget Plans to increase income, cut down on expenditure Comprehensive methodology for financial control Mechanism for specifying cost of services based on cost centers Material Resources Methodology for specifying the need for material resources Storage system Comprehensive system for the best use of material resources Technological Resources Methodology to specify the need for technology Methodology of transferring technology and to focusing on research and development Comprehensive system for the best use of technology
652
Z.S.H. Abu-Hamatteh et al. / Technovation 23 (2003) 649–652
Table 6 Results sub criteria Results Customer Satisfaction Methodology to measure customer satisfaction Actual results for customer satisfaction Mechanism for analyzing and benefiting from results Employee Satisfaction Methodology to measure employee satisfaction Actual results for worker satisfaction Mechanism for analyzing and benefiting from results Quality of service/product (operational performance) Methodology to measure quality of service/product (operational performance level) Actual results for the quality of service/product (operational performance level) Mechanism for analyzing and benefiting from results Supplier Performance Mechanism to select suppliers Methodology to measure performance level of the suppliers Actual results for the performance of the suppliers Mechanism for analyzing and benefiting from results Impact on Society Methodology to measure impact of the company on society Actual impact of the company on society Mechanism for analyzing and benefiting from results Financial Results Methodology for measuring financial results of the company Actual financial results of the company Mechanism for analyzing and benefiting from results
1. 2. 3. 4. 5.
Human Resources Information Resources Financial Resources Material Resources Technical Resources
4.2. Results This criterion focuses on the companies’ interest in achieving outstanding results in many areas (customer and employee satisfaction, quality of products/services (operational performance), suppliers’ performance, impact on society, and financial results.). Results sub criteria are (Table 6): 1. Customer Satisfaction
2. 3. 4. 5. 6.
Employee Satisfaction Service/ Product Quality (Operational performance) Suppliers’ Performance Impact on Society Financial Results
5. Conclusion The King Abdullah II award for Excellence has been initiated in the year 2000, in order to promote and enhance the quality and competitiveness of the industrial sector in Jordan. Implementing the award criteria discussed earlier will lead to the achievement of total quality management. Such achievement will promote the economy and open new international markets for the Jordanian products.
References King Abdullah II Award for Excellence, 2000. Guidance and Eligibility Package, pp. 12, Amman-Jordan. King Abdullah II Award for Excellence, 2002. Guidance and Eligibility Package, pp. 22, Amman-Jordan. King Abdullah II Award for Excellence, 2000. Application Package, pp. 15, Amman-Jordan. King Abdullah II Award for Excellence, 2002. Application Package, pp. 20, Amman-Jordan. King Abdullah II Award for Excellence, 2000. Examiner Package, pp. 15, Amman-Jordan. King Abdullah II Award for Excellence, 2002. Examiner Package, pp. 19, Amman-Jordan. Abu-Hamatteh Ziad is an Asst. Prof., and Chairman of Natural Resources and Chemical Engineering Department at Al- Balqa’ Applied University. He obtained his B.Sc., M.Sc., M.Phil., and Ph.D. in Geochemistry from Aligarh Muslim University, India. He is an Examiner of the King Abdullah II Award for Excellence for the year 2000. At present, he is a registered Technical Assessor for Jordanian Laboratories Accreditation, and consultant in the various fields of management (ISO 9000, ISO 17025, and ISO 14000). Al-Azab, Tareq is the Dean of Al- Salt Community College at Al- Balqa’ Applied University. He obtained his Ph.D. Degree in Mechanical Engineering from Warso University, Poland. El-Amyan Mozfi is the Dean of Al-Aqaba University College at AlBalqa’ Applied University. He obtained his Ph.D., Degree in Public Administration from Rajasthan University, India.
Total quality management achievement: King Abdullah II Award for Excellence of Jordan as a model Z.S.H. Abu-Hamatteh a,∗, T.A. Al-Azab b, M. El-Amyan c a
Al Balqa’ Applied University, Tafila Applied University College, Natural Resources and Chemical Engineering Department, PO Box 26, Tafila 66141, Jordan b Al-Balqa’ Applied University, Al-Salt Community College, Salt, Jordan c Al-Balqa’ Applied University, Aqaba Applied University College,Aqaba, Jordan
Abstract The King Abdullah II Award for Excellence is the highest level of recognition of quality in Jordan. It aims at enhancing the competitiveness of Jordanian businesses by promoting quality awareness and performance excellence, recognizing quality and business achievements of Jordanian companies, and publicizing these companies’ successful performance strategies and promoting sharing them. The award activities are held biennially. One award is given in each of the following categories: (1) Manufacturing companies or sub-units; (2) Service companies or sub-units; (3) Small or medium-size manufacturing companies (employees less than or equal to 30), and (4) Small or medium-size service companies (employees less than or equal to 100). Implementing the award’s criteria will lead to achievement of total quality management. 2002 Elsevier Science Ltd. All rights reserved. Keywords: Management; Excellence; Jordan; Quality; Competitiveness
1. Introduction Award recipients receive the trophy of the King Abdullah II Award for Excellence, which is presented biennially in a special ceremony in Amman-Jordan (KAAE-GE, 2000; 2002). They will be recognized as national and international role models, and may also publicize and advertise their award. The organizations benefit from the award criteria, which act as a guideline for performance excellence (KAAE-A, 2000). They force organizations to take a deep look at their business practices, their employees, and their customer relationships in an objective and measurable way through self-assessment. The establishments gain an outside perspective on its organization by members of the Board of Examiners. The results of this review are distilled in a feedback report, outlining strengths and opportunities for improvements based on the criteria of the award. FeedCorresponding author. Tel.: +962-3-2250326; fax: +962-32250033. E-mail address: [email protected] (Z.S.H. AbuHamatteh). ∗
back reports could be used by the organizations as part of their strategic planning processes to focus on their customers and to improve productivity, as well as to help energize and guide their organizational improvement programs (KAAE-A, 2002). The award is developed and administered by the Industrial Development Directorate (IDD) at the Ministry of Industry and Trade (MIT) and the Jordan–United States Business Partnership (JUSBP) Quality and Standard component, funded by the USAID (KAAE-GE, 2000; KAAE-A, 2000; KAAE-E, 2000).
2. Methodology Five areas of focus, called criteria (Table 1), are divided into sub criteria weighted by their relative importance (KAAE-E, 2000). The award stages are performed on four independent stages (Fig. 1). They are as follows. 2.1. Independent review The application report is reviewed independently by members of the Board of Examiners. At the end of this
0166-4972/02/$ - see front matter 2002 Elsevier Science Ltd. All rights reserved. doi:10.1016/S0166-4972(02)00127-X
650
Z.S.H. Abu-Hamatteh et al. / Technovation 23 (2003) 649–652
Table 1 Award criteria Leadership Strategic Planning Process Management Resources Management Results Total Points
2.4. Final selection 200 Points 150 Points 200 Points 250 Points 200 Points 1000
The Steering Committee will review the award recommendations and make the final determination of award recipients (KAAE-A, 2000; 2002).
3. Awards criteria 3.1. Leadership This criterion focuses on the main and vital roles of top management, and setting values and general philosophy for the organization, as well as the designing of the training plans including the assessment of the training needs and their evaluation. Top management also focuses on adopting and implementing the “Excellence” concept through ensuring financial, moral, and personal support. The criterion focuses on creating suitable methodology to select and maintain competent leaders at the top management level. Leadership sub criteria are (Table 2):
Fig. 1.
Block diagram illustrating the award stages (Award Cycle).
stage, applications are forwarded for further review. The written comments supplied by the examiners are used to prepare feedback report for the applicant in the next stages (KAAE-E, 2000). 2.2. Consensus review The application report is reviewed jointly by a team of members of the Board of Examiners, led by senior examiners. At the end of the consensus review, the Head of the Board of Examiners determines which applicants should receive site visits. Feedback reports will be sent to applicants who are not selected for site visits after the award ceremony (KAAE-E, 2002). 2.3. Site visit and final review A team of members of the Board of Examiners, led by a senior examiner, will conduct site visits for verification and clarification of the application report. Site visits consist primarily of a review of pertinent records and data and interviews with executives and employees. Following the site visit, the site visit review team submits its report to the Head of the Board of Examiners. The Head of the Board of Examiners conducts a final review and presents award recipients recommendations to the Steering Committee. Feedback reports will be sent to the applicants after the award ceremony (KAAE-E, 2000).
1. 2. 3. 4.
Leadership Leadership Leadership Leadership
Vision Educational System Support Selection and Suitability
3.2. Strategic planning This criterion focuses on the extent and ability of the organization to set and implement comprehensive strategic plans. These plans contain mission and vision statements, external environmental analysis, objectives, and strategies. This would help in achieving the overall Table 2 Leadership sub criteria Leadership Leadership Vision Documented vision Leadership Educational System Documented, approved training plan Training needs assessment Training evaluation system Incentives for educational development Participation in association Statistics Leadership Support Communication and coordination methodology Financing development projects Adopting development effort Authority delegation Leadership Selection and Suitability Methodology for selecting leaders Methodology of evaluating performance of leaders
Z.S.H. Abu-Hamatteh et al. / Technovation 23 (2003) 649–652
objectives of the company and the ability to take the right decisions in case of non-compliance. Strategic Planning sub criteria are (Table 3): 1. 2. 3. 4. 5. 6.
Mission Statement External Environmental Analysis Objectives Strategies Projects and Action Plans Implementation and Control
4. Processes management This criterion focuses on the extent of the company’s commitment in setting and implementing a comprehensive methodology to plan, execute, and develop work systems for all activities within the company. This criterion also focuses on promoting excellent policies, procedures, documents and organizational methods. This criterion focuses on the organizational structure within the company, and the pursuit of maximum efficiency of communications and coordination between all levels. It points out the importance of having a comprehensive methodology in running the customers’ affairs and requirements (e.g., information, assistance, complaints, and suggestions). Processes Management sub criteria are (Table 4): 1. Quality System 2. Customers Relationship Management 3. Coordination and Structure
Table 3 Strategic planning sub criteria Strategic Planning Mission Statement Documented Mission External Environmental Analysis Methodology of analyzing political, economic, and social environment Methodology of specifying customers and their demands Methodology of specify competitors and their capabilities Methodology of specifying suppliers and their capabilities Objectives Documented objectives Strategies Documented strategies Projects and Action Plans Documented projects, programs, and action plans Implementation and Control Action plans implementation Methodology for follow up and control Procedure taken if not implemented Statistical reports about levels of execution Regularities in reports
651
Table 4 Processes management sub criteria Processes Management Quality System Nature of documented and applied regulations (obtaining ISO 9000) and methodologies to prepare, review, adopt and modernize Customer Relation Management Methodology for gathering and analyzing information System to specify needs System for suggestions and complaints Information disk Coordination and Structure Methodology for setting, revDewing, improving the organization structure Mechanism for ensuring coordination Methodology for authority delegation Units’ job description Job description
4.1. Resources management This criterion focuses on having and implementing a clear methodology to plan, develop, enhance, deploy, and review the resources (e.g., human, information, financial, materials and technological) needed to succeed. Resources Management sub criteria are (Table 5): Table 5 Resources management sub criteria Resources Management Human Resources Methodology for gathering and analyzing information about employees Welfare program Suggestions and complaints system Recruiting system Documented and applied programs to specify the career path System to specify training needs and mechanism to evaluate training Incentives system Information Resources System for specifying the needs for information system Having information system covering most of the duties Activation mechanism Extent of utilizing information system Financial Resources Documented and applied methodology to prepare budget Plans to increase income, cut down on expenditure Comprehensive methodology for financial control Mechanism for specifying cost of services based on cost centers Material Resources Methodology for specifying the need for material resources Storage system Comprehensive system for the best use of material resources Technological Resources Methodology to specify the need for technology Methodology of transferring technology and to focusing on research and development Comprehensive system for the best use of technology
652
Z.S.H. Abu-Hamatteh et al. / Technovation 23 (2003) 649–652
Table 6 Results sub criteria Results Customer Satisfaction Methodology to measure customer satisfaction Actual results for customer satisfaction Mechanism for analyzing and benefiting from results Employee Satisfaction Methodology to measure employee satisfaction Actual results for worker satisfaction Mechanism for analyzing and benefiting from results Quality of service/product (operational performance) Methodology to measure quality of service/product (operational performance level) Actual results for the quality of service/product (operational performance level) Mechanism for analyzing and benefiting from results Supplier Performance Mechanism to select suppliers Methodology to measure performance level of the suppliers Actual results for the performance of the suppliers Mechanism for analyzing and benefiting from results Impact on Society Methodology to measure impact of the company on society Actual impact of the company on society Mechanism for analyzing and benefiting from results Financial Results Methodology for measuring financial results of the company Actual financial results of the company Mechanism for analyzing and benefiting from results
1. 2. 3. 4. 5.
Human Resources Information Resources Financial Resources Material Resources Technical Resources
4.2. Results This criterion focuses on the companies’ interest in achieving outstanding results in many areas (customer and employee satisfaction, quality of products/services (operational performance), suppliers’ performance, impact on society, and financial results.). Results sub criteria are (Table 6): 1. Customer Satisfaction
2. 3. 4. 5. 6.
Employee Satisfaction Service/ Product Quality (Operational performance) Suppliers’ Performance Impact on Society Financial Results
5. Conclusion The King Abdullah II award for Excellence has been initiated in the year 2000, in order to promote and enhance the quality and competitiveness of the industrial sector in Jordan. Implementing the award criteria discussed earlier will lead to the achievement of total quality management. Such achievement will promote the economy and open new international markets for the Jordanian products.
References King Abdullah II Award for Excellence, 2000. Guidance and Eligibility Package, pp. 12, Amman-Jordan. King Abdullah II Award for Excellence, 2002. Guidance and Eligibility Package, pp. 22, Amman-Jordan. King Abdullah II Award for Excellence, 2000. Application Package, pp. 15, Amman-Jordan. King Abdullah II Award for Excellence, 2002. Application Package, pp. 20, Amman-Jordan. King Abdullah II Award for Excellence, 2000. Examiner Package, pp. 15, Amman-Jordan. King Abdullah II Award for Excellence, 2002. Examiner Package, pp. 19, Amman-Jordan. Abu-Hamatteh Ziad is an Asst. Prof., and Chairman of Natural Resources and Chemical Engineering Department at Al- Balqa’ Applied University. He obtained his B.Sc., M.Sc., M.Phil., and Ph.D. in Geochemistry from Aligarh Muslim University, India. He is an Examiner of the King Abdullah II Award for Excellence for the year 2000. At present, he is a registered Technical Assessor for Jordanian Laboratories Accreditation, and consultant in the various fields of management (ISO 9000, ISO 17025, and ISO 14000). Al-Azab, Tareq is the Dean of Al- Salt Community College at Al- Balqa’ Applied University. He obtained his Ph.D. Degree in Mechanical Engineering from Warso University, Poland. El-Amyan Mozfi is the Dean of Al-Aqaba University College at AlBalqa’ Applied University. He obtained his Ph.D., Degree in Public Administration from Rajasthan University, India.