Design of an Organizational Quality Performance Evaluation Model by Combining EFQM-SIX SIGMA

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1 Onlne Access: Management and Admnstratve Scences Revew Volume 4, Issue Pages: 4-48 March 015 e-issn: p-issn: 10-87X Desgn of an Organzatonal Qualty Performance Evaluaton Model by Combnng EFQM-SIX SIGMA Kamaleddn Rahman 1, Ardeshr Bazrkar *, and Mohammad Abedzadeh 1. Department of Management, Tabrz Branch, Islamc Azad Unversty, Tabrz, Iran. Department of Industral Management, Tabrz Branch, Islamc Azad Unversty, Tabrz. Department of Industral Management, East Azerbaan Scence and Research Branch, Islamc Azad Unversty, Tabrz, Iran Current changes n the global economy and efforts by WHO n lne wth economc globalzaton and ncreasng competton, have beleved both developed and developng countres that for the presence and survval n the global, regonal and local markets, the compettveness of ther ndustres and organzatons should be ncreased. Models for excellence of organzatonal performance and busness excellence are used as a powerful tool for assessng the mplementaton of the dfferent systems. The purpose of ths research s to desgn a model to evaluate the performance of nsttutonal qualty by combnng effcent EFQM and the SIX SIGMA models. For ths purpose, at the frst step, a conceptual model was developed, and then proects, whch are obtaned from process EFQM model and are used as nput to the SIX SIGMA, were prortzed and for the selecton of proects of model mprovement, the supply chan mprovement proects of Sapa was used. Fnally, after desgnng the model and prortze results, the proect of mprovng the selecton of supplers based on mert, was placed at the frst prorty. Keywords: Organzatonal qualty performance evaluaton model, Sx Sgma, mprovng proect, fuzzy TOPSIS INTRODUCTION Current changes n the global economy and efforts by WHO n lne wth economc globalzaton and ncreasng competton, have beleved both developed and developng countres that for the presence and survval n the global, regonal and local markets, the compettveness of ther ndustres and organzatons should be ncreased (Castllo,008). Models for excellence of organzatonal performance and busness excellence are used as a powerful tool for assessng the mplementaton of the dfferent systems (Kafetzopoulos & Gotzaman, 014). Usng these models, organzatons can evaluate ther success n mplementng mprovement programs at varous *Correspondng author: Ardeshr Bazrkar Department of Industral Management, East Azerbaan Scence and Research Branch, Islamc Azad Unversty, Tabrz, Iran E-Mal: 4

2 Manag. Adm. Sc. Rev. e-issn: , p-issn: 10-87X Volume: 4, Issue:, Pages: 4-48 ponts. They can also compare ther performance wth other organzatons (Daves, 008). The man advantages of usng process management are contnued reducton of costs and shortenng the work cycle tme, due to the effcent use of resources, mprovng operatons results and also consstent and predctablty of results (Sabella, Kashou, & Omran, 014); and provdng opportuntes to engage the actons that are n the process of applyng the approach taken, ncludng the defnton and systematc actons necessary to acheve a desred result, clearly defnng the responsbltes and accountablty for managng key actvtes, analyzng and measurng the mportant actvtes, evaluate the rsks, consequences and mpacts of actvtes on customers, supplers and other nterested partes (Castllo, 008). LITERATURE REVIEW EFQM Excellence Model One of the best ways for organzatonal assessment s self-assessment that the EFQM model has specal attenton to t. The foundaton of EFQM was establshed n 1989 and was approved by the Europe Commsson (Calvo-Mora, Navarro- García, & Perañez-Crstobal, 015). In 1991, the EFQM model was produced, and then the frst award of qualty for Europe was presented n 199. From then, the model of excellence regularly revewed and updated to reflect the best proven management thnkng and practces (Daves, 008 Key message of excellence model s based on the answers to two questons: 1. How ths model as an approprate management structure and logc can be detected?. Who can play an essental role n the chan of communcaton and nteracton? At the frst level of ths model, the overall goals are analyzed and at the next level the goals n degrees and quanttatve and measurable scales. Self-assessment survey ndcates on comprehensve, systematc and orderly operaton of the organzaton and the outcome of the excellence model. All organzatons of varyng szes, ncludng governmental, chartable, mltary, hosptals, and prvate companes are applyng ths model. Some of the organzaton use self-assessment for the overall organzaton and other organzatons used t for specfc unts or operatng unts. A model that supports the Natonal Award of Productvty and busness excellence, has nne crtera. Fve crtera are enablng crtera (leadershp, polcy and strategy, people, partnershps and resources, processes) and four addtonal crtera are results (results of customers, results of employees, results of the communty, key results of performance). Enablng" crtera cover what s done by the organzaton and the crtera of "results", cover what an organzaton acheves (Sadkoglu & Olcay, 014). In other words, the results obtaned based on the mplementaton of the "enablng" and enablng crtera are mproved by feedback from results (Castllo, 008). Sx Sgma Sx Sgma s a dscplned, data-drven approach and methodology for elmnatng defects (drvng toward sx standard devatons between the mean and the nearest specfcaton lmt) n any process from manufacturng to transactonal and from product to servce (Conger, 015). Recently that the competton world need for the best to survve n a compettve stuaton, the Sx Sgma methodology as a systematc way to apply consstent qualty of dfferent tools was ntroduced (Jencke, 008). The methodology ams to reduce the devaton of the process. The man purpose of ts use can nclude reducng the changes, reducng the errors, mprovng productvty, enhancng customer satsfacton and mprovng fnancal ssues (Antony, Setono, & Dahlgaard, 014). Sx Sgma would be as a powerful and effectve tool when the short-term or long-term correctve and preventve actons are not able to mprove the process (Gttner et al., 015). If you need to recognze the fundamental causes of chronc dstorton nherent n the process, ths method s very useful. From a commercal 44

3 Manag. Adm. Sc. Rev. e-issn: , p-issn: 10-87X Volume: 4, Issue:, Pages: 4-48 standpont, Sx Sgma n the busness world s defned as a busness strategy to mprove the proftablty of the busness to mprove the effectveness and effcency of all operatons that contrbute to meetng the needs and expectatons of the customer. In another defnton t explaned as below: Sx Sgma s a rgorous and systematc approach to reform the process of the development of new products and servces whch for the reducton of the customer-defned faults, are based on statstcal methods and practce. In ths defnton the mportance of mprovng s emphaszes based on the defnton of customer for error (Kumar, 007). To solve the basc and chronc problems, Sx Sgma methodology s used. If Sgma level goes hgher, the exponental ncrease n the defct reducton s necessary, so that by resolvng the root problems that are not dentfed by qualtatve smple tools, sgma level ncreases. METHODOLOGY Ths study s a descrptve survey. To nvestgate the mechansm of the the study, four methods were used, ncludng: Study of lterature, Intervews wth experts, Use of documents n SAIPA and Questonnares. Frst, based on the prevous research and lterature revew, data assocated wth the topc, were extracted. Ths nformaton then confrmed by experts n the feld, and then further nvestgaton was appled whch resulted n an nnovatve model.then, by provdng a framework, the consderng socety of the study was evaluated. Fnally, by concludng the prevous steps, the research data were obtaned, whch was nvestgated and compared as the mentoned model. THE ANALYSIS OF THE CONCEPTUAL MODEL Accordng to studes, communcaton and organzatonal excellence and Sx Sgma process model s presented n Fgure 1. As can be seen n the model, organzatonal performance excellence models can be consdered as a system, so that, ts output s defned as mprovement proects and Sx Sgma can be regarded as another system that ts nput s the output obtaned by the model and the output of the Sx Sgma approach can be regarded as one of the nputs to the model of performance excellence, because, the degree of mprovement that can be obtaned from Sx Sgma, s depcted n EFQM. In ths case, prortzng the EFQM outputs to choose t for Sx Sgma s of mportance. In ths study, fuzzy TOPSIS method was used to prortze EFQM Improvement Proect proect Prortzng by FTOPSIS Pror proect by Sx SIGMA Fgure 1: Qualty process model of EFQM Sx SIGMA INTRODUCTION TO FUZZY TOPSIS TECHNIQUE Fuzzy TOPSIS approach s fuzzy evaluaton of the optons based on all of the crtera and all the steps of defntve TOPSIS descrbed n the prevous secton by the dfference that we use the fuzzy numbers n fuzzy TOPSIS, that t changes the calculatons.after presentng TOPSIS model by Huang and Yuan and also wth the use of fuzzy sets that were presented by Lotf Zadeh n 1965, many fuzzy TOPSIS models were developed (Kahraman et al., 007). Fuzzy TOPSIS models can be used to solve a varety of fuzzy numbers that, dependng on the numbers, the model computatons s changng.here fuzzy TOPSIS method of dealng wth trangular fuzzy numbers whch was proposed by Chen n 000, s descrbed (Awasth, et al., 010). The frst step s to calculate the decson matrx. To calculate the decson matrx, optons are evaluated by ndvdual crtera, then based on the used on the set of fuzzy numbers are assgned. The second step s to normal fuzzy decson matrx. There are several methods to normalze, that n ths way we use the followng method: 45

4 Manag. Adm. Sc. Rev. e-issn: , p-issn: 10-87X Volume: 4, Issue:, Pages: 4-48 a r~ c * a r~ c b, c * c, c * a a,, b a ;c ;a Max c Mn a ; ; Thrd step s to calculate the weghty non-scale matrx ( V ~ ). v~ r~.(w ~ ) In calculatng the weghty non-scale matrx, weght of fuzzy numbers or crteron can be fuzzy or crsp.fourth step s to calculate the fuzzy postve deal soluton (FPIS) and fuzzy negatve deal soluton (FNIS). Method of calculaton s as follows: (v ~,...,v ~ A 1, v~ n Max[v ]; 1,,...,m; 1,,...,n (v ~, v~,...,v ~ Mn[v ]; 1,,...,m; 1,,...,n A 1 n Ffth step s to calculate dstance between any choce of postve and negatve deal soluton. Method of calculaton s as follows: d d m 1 m 1 d(v ~, v~ ), 1,,..., m d(v ~, v~ ), 1,,..., m The dstance between two trangular fuzzy numbers s calculated as follows: ~ d(a ~, b) 1/ [a 1 b1) (a b ) (a b Sxth step s to calculate the relatve closeness ndex.the fnal stage of fuzzy numbers s converted to numbers and s calculated as follows: d cc (d d ) Step seven s rankng optons based on. It should be noted that the number and range of CC fuzzy based on the descendng phase used n ths study, are the numbers ntroduced by Chen. ) ] These numbers are shown n Table (1). Table (1): Set of fuzzy numbers by Chen (Chen, 000) Verbal expresson Fuzzy numbers Very low (0,0,1) Low (0,1,) Farly low (1,,5) Medum (,5,7) Farly hgh (5,7,9) Hgh (7,9,10) Very hgh (9,10,10) Model Implementaton Model of organzatonal performance excellence and organzatonal excellence mplemented as a self-assessment approach n SAIPA n 011, and mprovement proects, accordng to the dfferent parts of the organzaton, has been extracted. In ths study, supply chan unt for SAIPA, was selected and process organzatonal performance excellence model and Sx Sgma were mplemented n the unt. Improvement proects derved from the model of organzatonal performance excellence n supply chan unt are as follows: Table : Improvng proects extracted from organzatonal performance excellence model n supply chan unt Organzatonal Improvement Proect Row Select supplers based on mert 1 Database of contractors and supplers Promotng understandng of supplers as stakeholders Transparency, accountablty and trust n supplers Ablty to dentfy key supplers 5 Accelerate the performance of contracts wth supplers Better use of nformaton technology n the relatonshp wth supplers

5 Manag. Adm. Sc. Rev. e-issn: , p-issn: 10-87X Volume: 4, Issue:, Pages: 4-48 In the next stage, the extracted mprovement proects, presented n Table, by TOPSIS fuzzy technque talored questonnares, was provded to all employees of the supply chan and ther vews on the prortes of the proect were collected and also to ncrease the accuracy and effcency of the model, employee comments predetermned degree of mportance was modfed. Weght of comments, obtaned from smlar studes related to ths study (Table ). It should be noted that the degree of mportance of the vews expressed here s dfferent wth those stated earler (n the TOPSIS method stages); In TOPSIS method the opnon of the perceptons and expectatons were consdered equal, but here mportance of people s consdered After the calculaton of the prorty mprovement proects, usng fuzzy TOPSIS (Table 4) are presented.fnally, based on the calculatons were made; the prorty of proects s presented n Table (5). Table (): The mportance of deas n assessments People poston Degree of mportance (Weght) unt Management Unt Deputy 1.5 Unt Expert 1 Table (4): prortze proects to mprove the supply chan unt usng fuzzy TOPSIS Row Improvement proects CC Prorty 1 Select supplers based on mert Promotng understandng of supplers as 0.77 stakeholders Database of contractors and 0.75 supplers 4 Ablty to dentfy key supplers Accelerate the performance of contracts wth supplers 6 Clarfcaton of responsbltes and trust n supplers 7 Better use of nformaton technology n the relatonshp wth supplers Based on the obtaned results of mprovement proects, we choose supply chan unt to base on fuzzy TOPSIS prortze technque, as nput for sx sgma model. CONCLUSION AND RECOMMENDATIONS In ths study whch was conducted wth the am to desgn a process approach to management concepts and technques, a model was presented combnng organzatonal performance excellence model and Sx Sgma. As can be seen n the model, organzatonal performance excellence models can be consdered as a system, so that, ts output s defned as mprovement proects and Sx Sgma can be regarded as another system that ts nput s the output obtaned by the model and the output of the Sx Sgma approach can be regarded as one of the nputs to the model of performance excellence, because, the degree of mprovement that can be obtaned from Sx Sgma, s depcted n EFQM. In ths model, output organzatonal performance excellence model were prortzed usng fuzzy TOPSIS and the hghest prorty proects and mprovement, was recognzed as nput n Sx Sgma approach. Also supply chan unt of Spa Company dentfed as the case study and the model was mplemented n ths unt. In ths unt, 7 mprovement proects were taken to mprove the organzatonal performance excellence model and these proects prortzed by usng a questonnare that was desgned to ft the fuzzy TOPSIS technque. Based on the results, the selecton of supplers based on the prorty proects dentfed for Sx Sgma. In the past, the decson to select a proect to mplement Sx Sgma or other management approaches, qualtatve and several meetngs were conducted; Problems such as tme consumng, lack of consensus decson-makng, nvolvement n decson-makng personal opnon, the problem of ntellectual and predctable. Therefore, to overcome these problems and conflcts resultng 47

6 Manag. Adm. Sc. Rev. e-issn: , p-issn: 10-87X Volume: 4, Issue:, Pages: 4-48 from the selecton of proects to be mplemented was the man motvaton of ths research. Increasng speed and savng tme and ncreasng accuracy n decson makng to a thousand tmes, agreement on selected proects, no need for multple sessons, establshment of a system and a process approach to solvng organzatonal problems were achevements of ths model. REFERENCES Antony, J., Setono, D., & Dahlgaard, J. J. (014). Lean Sx Sgma and Innovaton an exploratory study among UK organsatons. Total Qualty Management & Busness Excellence(ahead-of-prnt), Awasth, A., Chauhan, s., Goyal, S. (010). A Fuzzy mult crtera approach for evaluatng envronmental performance of supplers. Internatonal Journal of producton, 16(): Calvo-Mora, A., Navarro-García, A., & Perañez-Crstobal, R. (015). Proect to mprove knowledge management and key busness results through the EFQM excellence model. Internatonal Journal of Proect Management. Chen, C.-T. (000). Extensons of the TOPSIS for group decson-makng under fuzzy envronment. Fuzzy Sets and Systems: 1 9. Conger, S. (015). Sx sgma and busness process management Handbook on Busness Process Management 1 (pp ): Sprnger. Davs, J. (008). Integraton: s t the key to effectve mplementaton of the EFQM Excellence Model? Internatonal Journal of Qualty &Relablty Management, :8-99. Dehghan, N. M. (009). The role of knowledge management n organzatonal nnovaton. Monthly of automoble engneerng and related ndustres, 1(10), Gttner, L. S., Husan, B. A., Hull, P. C., Emerson, J. S., Tropez-Sms, S., Reece, M. C.,... Levne, R. S. (015). Use of Sx Sgma for Elmnatng Mssed Opportuntes for Preventon Servces. Journal of nursng care qualty. Jencke, L. O. (008). a framework for applyng sx sgma mprovement methodologes n an academc envronment. The TQM Journal, 4: Kafetzopoulos, D. P., & Gotzaman, K. D. (014). Crtcal factors, food qualty management and organzatonal performance. Food Control, 40, Kahraman, c., et al., 007, Fuzzy mult crtera evaluaton of ndustral robotc system. Computer & Industral Engneerng, 5(4): Kumar U. D. (007). Sx sgma proect selecton usng data envelopment analyss. The TQM Magazne, : Martín-Castllo, J. I. (008). EFQM model: knowledge governance and compettve advantage. Journal of Intellectual Captal, 5: Sabella, A., Kashou, R., & Omran, O. (014). Qualty management practces and ther relatonshp to organzatonal performance. Internatonal Journal of Operatons & Producton Management, 4(1), Sadkoglu, E., & Olcay, H. (014). The Effects of Total Qualty Management Practces on Performance and the Reasons of and the Barrers to TQM Practces n Turkey. Advances n Decson Scences,

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