CII plans excellence model for SMEs

Bangalore-headquartered CII Institute of Quality, which has been promoting the cause of quality over the last two decades, has developed a simple yet comprehensive excellence model.

Small and medium enterprises (SMEs) form the backbone of Indian economy and play an important role in its socio-economic growth. Besides acting as an entrepreneurial engine, they are also the largest employment generators.

SMEs, either as suppliers to large original equipment manufacturing (OEM) organisations or as providers of products and services to the after market, have made significant contribution to Indian economy.

In the process, they have adopted several good manufacturing and quality practices, such as 5S, ISO 9000, TS 16949, TPM, TPS among others to improve productivity and competitiveness.

However, to sustain competitiveness in the highly competitive local and global markets, SMEs need to develop capability in other important areas of management.

For example, product development, strategic planning, financial management, leadership and people. SMEs need to establish appropriate management framework, with a clear purpose to build these capabilities.

In order to enable SMEs face these challenges and equip them to compete in the global marketplace, the Bangalore-headquartered CII Institute of Quality (CII IQ), which has been promoting the cause of quality over the last two decades, has developed a simple yet comprehensive excellence model for SMEs. The model has taken into consideration their specific needs and environment in which they operate.

The business excellence model is a non-prescriptive framework based on nine criteria, such as leadership, policy and strategy, people, partners and resources, processes, customer results, people results, society results and key performance results. Five of these are 'enablers' and four are 'results'.

The 'results' criteria cover what an organisation achieves. 'Results' are caused by 'enablers'. The excellence of enablers and results is measured based on the PDCA (Plan, Do, Check, Act) approach.

 

HOW IT WORKS

         Definition

• A non-prescriptive framework based on nine criteria, such as leadership, policy and strategy, people etc.
• Five of the above are 'enablers' and four are 'results' 
  
  
  Potential
  
  
• Can be used as a structure for the organisation's management system
• Can act as a tool for self-assessment by measuring where they are on the path to excellence
• Identify and share best practices performance and strategies
• Provide an external perspective to the organisations on their practices and performances through a comprehensive feedback report 
  
  Important
  
  
• Last date for receipt for application: June 25
• List of winners will be announced on November 7

For the first time, since 1994, when CII and Exim Bank instituted business excellence awards for Indian companies, SMEs have been included in the business excellence award programme this year.

KN Shenoy, chairman, CII Institute of Quality, says: "We at CII IQ have been working closely with SMEs to improve their competitiveness. Several organisations have adopted the road map for manufacturing excellence and benefited by participating in our cluster programmes. Our business excellence model will help them to build organisational capability for sustainable competitiveness."

According to Shenoy, today's SMEs face many challenges like how to manage their business in a more professional manner, how to integrate the operational and strategic management to build sustainable competitiveness and growth? How to assess the strengths and weaknesses of the organisation beyond financial and operational performance parameters and develop a road map for transformation?

Regardless of sector, size, structure or maturity, the CII Excellence Model is a practical and holistic tool to improve the quality of management in all organisational aspects and address the challenges.

The model can be used as a structure for the organisation's management system, as a tool for self-assessment by measuring where they are on the path to excellence. It will help them understand the gaps and find out proper solutions.

Shenoy says the business excellence award will provide SMEs a holistic framework of management excellence, recognise outstanding small and medium enterprises and project them as role models and encourage others to emulate.

It will also identify and share best practices performance and strategies as also provide an external perspective to the organisations on their practices and performance through a comprehensive feedback report.

The CII IQ has classified the SMEs under three groups, based on their annual sales turnover, for payment of application and site visit fees. The last date for receipt for application is June 25. The list of winners will be announced on November 7.