EFQM Education Community of Practice Budapest, 08 May May 2003 Endre Hercz Executive Director - TQM Executive Director - TQM Westel Mobile Telecommunications Co. Ltd. Quality at Westel

EFQM Education Community of Practice Budapest, 08 May Westel: The Market Leader The Company: GSM penetration:GSM penetration: 69,6% (March 2003) Stakeholder:Stakeholder:MATÁV Equity:Equity: 457,809,370 EUR (2001) RPC:RPC: 3,401,770 (March 2003) RPC (000) March 2003

EFQM Education Community of Practice Budapest, 08 May 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.

EFQM Education Community of Practice Budapest, 08 May Westel Mission We are dedicated to connecting our customers with every aspect of their world - personal, professional, human and institutional. 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 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. 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.

EFQM Education Community of Practice Budapest, 08 May 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 Environmental Management System setup European Quality Award - Prize winner Deutsche Telekom Top Team Award Winner 2002:Start to implement Balanced Scorecard

EFQM Education Community of Practice Budapest, 08 May Quality strategy

EFQM Education Community of Practice Budapest, 08 May System supporting the systematic approach Main process structure and process management system based on expectations of stakeholders Main process structure and process management system based on expectations of stakeholders Assessment and review system Assessment and review system Continuous measurement and integration of quality parameters into the business plan (Quality Plan) Continuous measurement and integration of quality parameters into the business plan (Quality Plan) System of integrated customer surveys System of integrated customer surveys Integrated Performance Evaluation System that support the development of human resources Integrated Performance Evaluation System that support the development of human resources

EFQM Education Community of Practice Budapest, 08 May Main processes

EFQM Education Community of Practice Budapest, 08 May Assessment and review system

EFQM Education Community of Practice Budapest, 08 May Structure of the quality plan Attachments - Detailed description of measurement - Development goals Parameters - Definitions - M ethod and frequency of measurement - Targets QUALITY PLAN Coverage Basic service quality indicators Call Center indicators Waiting times Customer complaints Customer satisfaction Churn Quality of billing

EFQM Education Community of Practice Budapest, 08 May Customer surveys

EFQM Education Community of Practice Budapest, 08 May Performance evaluation system

EFQM Education Community of Practice Budapest, 08 May Important Quality Projects BSC New method ISO 9001:2000

EFQM Education Community of Practice Budapest, 08 May ISO 9001:2000 Customer focus: The process of customer surveys are integrated into the system.Customer focus: The process of customer surveys are integrated into the system. Objectives - measurements - actions: Quality Plan.Objectives - measurements - actions: Quality Plan. Process orientation: The ARIS process management tool is integrated.Process orientation: The ARIS process management tool is integrated. Competency: Personal performanceCompetency: Personal performance appraisal. appraisal. Main aspects:

EFQM Education Community of Practice Budapest, 08 May Balanced ScoreCard System CriticalSuccessFactors

EFQM Education Community of Practice Budapest, 08 May Financial Perspective Strategy Financial Parameters 1. Maximising the company value 1. Maximising the company value 2. Increasing the income 2. Increasing the income 4. Improving cost efficiency 4. Improving cost efficiency 3. Improving the effectiveness of the assets 3. Improving the effectiveness of the assets 1. ROE 2. Income increase 3. Current asset turnover 3. Total asset turnover 4. EBITDA ratio 4. Operational cost per customer

EFQM Education Community of Practice Budapest, 08 May Learning and Improvement Perspective Learning and improvement 13. Innovative, and change oriented company culture 13. Innovative, and change oriented company culture 14. Improving the employee’s commitment and satisfaction 14. Improving the employee’s commitment and satisfaction 15. Ensuring the access to the necessary information 15. Ensuring the access to the necessary information 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

EFQM Education Community of Practice Budapest, 08 May Some factors of the success Leaders’ commitment Leaders’ commitment Stakeholder approach Stakeholder approach Balanced approach Balanced approach Step by step progress Step by step progress Focusing on area for improvements, not on weak points Focusing on area for improvements, not on weak points

EFQM Education Community of Practice Budapest, 08 May Thank you for your attention!