Total Quality Management Models

Originally Launched in July 2002

Revised and Updated Monday, December 01, 2008

Comparison between Total Quality Management Models and MMG Model

MMG is glad to announce the launch of its company rating model. The comparison between the major US, European and Fortune models is given below.

Serial Number	(Malcolm Baldridge) US Model	(ISO) European Model	Fortune Model	MMG Model®
1	Customer Satisfaction	Leadership	Innovation	Leadership
2	Leadership	People Management	People management	People Management, Quality of human resources and Utilization
3	Quality Results	Policy & Strategy	Use of corporate assets	Policy & Strategy
4	Information & Analysis	Resources	Community/environment	Material and Financial Resources Utilization
5	HR Utilization	Processes	Quality of management	Systems, Methods & Processes
6	Strategic Quality Planning	People satisfaction	Financial soundness	People Satisfaction
7	Quality Assurance Systems	Customer satisfaction	Long-term investment	Customer Satisfaction
8		Impact on society	Quality of products/services	Other Stakeholders' Interests & Satisfaction
9		Business Results	Globalness	Innovativeness & Entrepreneurship
10				Corporate Governance - Principles, Integrity, Ethics & Values

Our Comments:

MMG does its ratings of companies on a 10-point scale as defined above. Each system allots a certain percentage points, as weightage, for evaluation purposes. This is not revealed to anyone.

The system also takes into account the size of the organization, nature of its business etc., Obviously, comparisons will have to be made on a like to like basis and within an industry. Apples are not to be compared with Oranges. The ratings are done for the company in question and does not cover others. If any organization wants comparison with its peers, they also will have to be assessed on the same parameters to make a meaningful comparison. We are confident that in our system, the standard deviation will not exceed (+/-) 2.5%.

Explanatory Notes:

The focus on Quality Assurance and Business Results in other models is implied in our system. The customer satisfaction is normally the barometer of business results. At the same time, an average customer will have no loyalty to the product or organization, if he or she can get something better for the same money spent. Quality always has a price. Because of this reason, Innovativeness and Entrepreneurship are the key. Our philosophy is consistent and very clear. Money is a by-product. If the organization is good, then money will follow. In the Fortune Model, 3 items - namely, use of corporate assets, financial soundness and long term investments all come under financial parameters and may skew the results because of excessive weightage.

Ratings:

> 8 - means dream organization. People should be prepared give up their right arms to work for such organizations

between 7.5 to 8 - Very good organization

between 6.5 to 7.5 - Reasonably good and need to improve in some areas

between 5.0 to 6.5 - Need to improve considerably

below 5.0 - Needs drastic changes

For more details, please get in touch with us. Our contact details are:

e-mail: admin@mmgindia.com