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Quality at Westel

Quality at Westel. 08 May 2003 Endre Hercz Executive Director - TQM Westel Mobile Telecommunications Co. Ltd. The Company: GSM penetration: 69,6% (March 2003) Stakeholder: MATÁV Equity: 457,809,370 EUR (2001) RPC: 3,401,770 (March 2003). RPC (000). Westel: The Market Leader.

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Quality at Westel

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  1. Quality at Westel • 08 May 2003 • Endre Hercz • Executive Director - TQM • Westel Mobile Telecommunications Co. Ltd.

  2. The Company: GSM penetration: 69,6% (March 2003) Stakeholder: MATÁV Equity: 457,809,370 EUR (2001) RPC: 3,401,770 (March 2003) RPC (000) Westel: The Market Leader March 2003

  3. Westel Vision • We believe that everyone needs a lifeline to their world to give them the security, confidence and inspiration to venture out and seize the opportunities that make life more rewarding and enjoyable.

  4. Westel Mission • We are dedicated to connecting our customers with every aspect of their world - personal, professional, human and institutional. • We will give them the power they need to take advantage of all opportunities as they present themselves and help them work, learn, think and communicate in more interesting ways. • We know that we can only do this when our stakeholders, first of all, feel a connection to us that they can trust and rely on.

  5. Quality Milestones • 1993: Foundation • 1994: Malcolm Baldrige survey • Establishment of TQM strategy • 1995: ISO 9001 Quality Certification • 1996: Winning the National Quality Award • 1997:Integration of Self Assessment • 1998: Winning the Marshall Award • 1999:Applying for the European Quality Award • 2000:Establishing the integrated management method • European Quality Award - Finalist • 2001: ISO 14000 Environmental Management System setup • European Quality Award - Prize winner • Deutsche Telekom Top Team Award Winner • 2002: Start to implement Balanced Scorecard

  6. Quality strategy

  7. System supporting the systematic approach • Main process structure and process management system based on expectations of stakeholders • Assessment and review system • Continuous measurement and integration of quality parameters into the business plan (Quality Plan) • System of integrated customer surveys • Integrated Performance Evaluation System that support the development of human resources

  8. Main processes

  9. Assessment and review system

  10. Parameters • • Coverage Coverage • • Basic service quality Basic service quality - Definitions indicators indicators - M ethod and frequency of measurement • • Call Center indicators Call Center indicators - Targets • • Waiting times Waiting times • • Customer complaints Customer complaints Attachments • • Customer satisfaction Customer satisfaction • • - Detailed description of measurement Churn Churn - Development goals • • Quality of billing Quality of billing QUALITY PLAN QUALITY PLAN Structure of the quality plan

  11. Customer surveys

  12. Performance evaluation system

  13. Development of improved approaches and/or Management review Implementation more systematic/extensive deployment Weekly management External and meeting internal benchmarks Self ISO 9001 Learning Management Assessment external, (eg. Financial Surveys information conferences, EFQM internal audits system training) Assessment audits R E S U L T S New method ISO9001:2000 +BSC Important Quality Projects 2002-2003

  14. ISO 9001:2000 • Main aspects: • Customer focus: The process of customer surveys are integrated into the system. • Objectives - measurements - actions: Quality Plan. • Process orientation: The ARIS process management tool is integrated. • Competency: Personal performance • appraisal.

  15. Maximising the company value Improving Improving the Increasing cost effectiveness of the income efficiency the assets Increasing the customer satisfaction Efficient organisation and process management Innovative, and change oriented company culture Ensuring the Improving the access to the employee's necessary commitment and information satisfaction BalancedScoreCardSystem • Critical • Success • Factors

  16. Financial Perspective Strategy • Parameters 1. Maximising the company value 1. ROE 2. Income increase 3. Current asset turnover 3. Total asset turnover 4. EBITDA ratio 4. Operational cost per customer 2. Increasing the income 4. Improving cost efficiency Financial 3. Improving the effectiveness of the assets

  17. Learning and Improvement Perspective Strategy • Parameters 13. Fluctuation of key employees 13. Ratio of training costs vs general and administrative costs 14. Fluctuation 14. Employee satisfaction 15. Index of access to information 13. Innovative, and change oriented company culture Learning and improvement 14. Improving the employee’s commitment and satisfaction 15. Ensuring the access to the necessary information

  18. Some factors of the success • Leaders’ commitment • Stakeholder approach • Balanced approach • Step by step progress • Focusing on area for improvements, not on weak points

  19. Thank you for your attention!

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