Press Releases

Three Quality-Committed Companies Share Top Prize of the 2001 HKMA Quality Award

11/6/2001


THREE QUALITY-COMMITTED COMPANIES SHARE TOP PRIZE
OF THE 2001 HKMA QUALITY AWARD


The results of the annual HKMA Quality Award, one of the most prestigious business awards in Hong Kong, were proudly announced by Mr Alfred Chan, Chairman of the Award Organizing Committee, during the press conference of the Award held on 11 June 2001 at the Hotel Inter-Continental Hong Kong.
COSCO (H.K.) SHIPPING CO., LIMITED, Hsin Chong Real Estate Management Ltd and The Kowloon Motor Bus Co. (1933) Ltd. were awarded the Overall Winners in recognition of their distinguished success and achievements in Total Quality Management. Two other outstanding companies Luen Thai International Group Ltd and Chevalier Group - Lift and Escalator Division were also awarded the Certificate of Excellence and the Certificate of Merit respectively.

As stated by Mr Alfred Chan during the press conference, "the number and variety of companies has proved that the quest for quality has become an increasingly important force leading to success and growth, irrespective of an organization`s nature and size". Dr T Y Lee, Chairman of the Board of Examiners, further added that the Examiners were especially pleased to note that "all the finalists are very dedicated and serious about the Award as demonstrated by their top management involvement and excellent teamwork during the Examiners Workshop".

The comments of the Board of Examiners on each winning company can be summarized as follow:
COSCO (H.K.) SHIPPING CO., LIMITED - Overall Winner

COSCO (H.K.) SHIPPING CO., LIMITED (CHS) has demonstrated to the Board of Examiners a comprehensive company-wide commitment to Total Quality Management.

CHS`s management has clearly identified the company`s mission, goals, strategic direction and organization values. Various means are used to communicate the aforementioned to all staff to ensure understanding and proper alignment. The management team laid out its five-year plan and yearly plans with detailed Key Performance Indicators (KPIs) which are measured regularly to track progress of action plans.

CHS focuses on its target market segments by using the CRM approach to manage its key customers. Multiple channels are used to obtain market and customer information to ensure fast response to changing customer needs. To support operational requirements, performance reviews and market analysis, CHS has effectively developed an integrated approach with 11 core systems and 50 sub-systems.

Job functions and responsibilities of CHS are clearly defined. Its performance management system is methodical and linked directly to its two most important objectives, quality and safety. CHS adopts a very systematic approach to new service design. The control and monitoring of key processes are integrated and effective.

Over the past three years, CHS has shown strong growth in its sales revenue, net profit margins and return on company assets. Its market share has grown at
a higher rate than the market average. This excellent result has been coupled with a high level of customer satisfaction and staff loyalty.

Hsin Chong Real Estate Management Ltd - Overall Winner
During a period of rapid growth in business, Hsin Chong Real Estate Management Ltd (HCREM) has demonstrated improved performance results by application of an effective and well established Total Quality Management system.

The management`s vision, mission and core values are customer and quality focused. Professionalism, good work ethics and high service standards have been demonstrated when attempting to meet the company`s goal. A balance scorecard approach effectively identifies Key Performance Indicators (KPIs) which are regularly tracked and reviewed to gauge organizational and market performance.

Clear market and customer segmentation helps HCREM to meet agreed service standards. A multitude of methods are used to collect market intelligence and
to communicate with customers. Information and data are measured on a wide spectrum and analyzed to review and track the overall organizational performance against set goals.

The company emphasizes team work which allows for a higher level of flexibility and which encourages staff to take initiative and to be innovative. The theme "Every Line Manager an HR Manager" is deployed to help give focus to the importance placed on human resources.

A wide range of quality tools have been adopted to help organize and manage front line and support services, design and delivery processes and to help encourage improvement.

Outstanding business results demonstrate the impetus and success of HCREM`s commitment to TQM. Customer satisfaction ratings are rising across all segments. The growth in units under management since 1997 has been substantial. In addition both returns and market share position have improved impressively during the same period.

The Kowloon Motor Bus Co. (1933) Ltd. - Overall Winner
In the drive for excellence, The Kowloon Motor Bus Co. (1933) Ltd. (KMB) has improved service efficiency, reliability, effectiveness and value.

KMB strives to balance value for all stakeholders and has demonstrated a firm commitment to improvement. The management provides direction through its mission and core values and is active with improvement teams, committees and task forces.

KMB has a clear strategy to remain a leader in the industry. A strategic options selection matrix is utilized to help prioritize improvement opportunities. Various processes are also deployed to collect intelligence, obtain customer views and afford access to information.

"Caring for People" is one of the KMB`s core values and the company cultivates this value by means of teamwork and communication. In addition, comprehensive performance, reward, recognition and bonus award schemes are in place to motivate and recognize staff achievements in different areas.

KMB has strategically managed its supply chain by initiating a series of new measures such as E-tendering and Green Procurement. These have created savings and improvements in supplier performance.

KMB was the first public bus company to certify its management systems to
ISO 9001 on a corporate wide basis. It has expanded its bus fleet and has increased both the amount of kilometres and capacity operated whilst improving mechanical reliability and operational capability. Comparative results show that KMB holds a leading position in key areas.

Luen Thai International Group Ltd - Certificate of Excellence Recipient
To drive the company forward, the leaders of Luen Thai International Group Ltd (Luen Thai) promote the corporate maxim of "Right Things Do Right". In support of the corporate maxim, the company has set clear management philosophy, vision, mission and core values that are all directed towards meeting customer needs.

The "Rethinking and Renewal (R&R)" framework provides a very systematic and structured approach in strategy development, objectives alignment, and planning and implementation. The company emphasizes customized services and product offerings to meet specific needs of customers. Various methods are used to communicate with its customers and collect customer feedback and market information.

Luen Thai has developed and implemented several state-of-the-art systems to support both the operational and performance evaluation requirements. The company has also developed its own set of guidelines and standards called Unified Principles of Social Responsibility and Practice (UPSRP) to ensure excellent work practices. Luen Thai uses an integrated supply chain approach to design, manufacture and distribute its products to customers. It also applies the best practices used in industrial engineering to improve the production performance of its garment factories.

The company has very solid growth in sales turnover and net profit margin since 1995 and has won several awards and commendations from its well-known customers, by gaining customer loyalty and improvement in organization effectiveness.

Chevalier Group - Lift & Escalator Division - Certificate of Merit Recipient
The Chevalier Group - Lift & Escalator Division (LED) is guided by a mission that stresses partner and customer satisfaction through quality excellence. The management puts emphasis on teamwork and training and demonstrates firm core values. Objectives are in place and senior managers review organizational performance, competitiveness and performance against set goals.

LED has incorporated methods to listen and learn from its customers and competitors to help monitor its business needs and direction. Detailed HR policies and procedures are in place and a mature performance appraisal system and surveys with managers help identify training needs effectively. Implementing ISO 9001 since 1994, LED has developed well established processes for design supply, installation and maintenance with clear performance requirements in place.

LED has maintained market share and achieved sustained growth in maintenance works with an expanding infrastructure of maintenance depots locally and elsewhere in Asia. Improvements are enhanced by mutual commitments to an effective 30-year partnership with a renowned lift and escalator manufacturer, contributing to valuable improvements over the years.

Organized by The Hong Kong Management Association since 1991, the HKMA Quality Award aims to reward companies which have achieved outstanding levels of quality and made a lasting commitment to the process of quality management. The Award also strives to encourage all companies, large and small, to measure themselves against the seven major criteria of Award modelled after the well-known American Malcolm Baldridge National Quality Award.



The Panel of Judges this year comprises:
Mr Giovanni Angelini, Managing Director and Chief Executive Officer, Shangri-La
Hotels and Resorts;
Mr Alfred Chan, Managing Director, The Hong Kong and China Gas Co Ltd;
Mr David Cronin, Vice President and General Manager, Hong Kong, American Express
International, Inc;
Dr The Hon David K P Li, JP, Chairman and Chief Executive, The Bank of East Asia
Ltd;
Mr Banio Mok, Managing Director, Xerox (Hong Kong) Ltd;
Mr Or Man Ah, First Deputy General Manager, Bank of China, Hong Kong Branch;and Dr Lawrence Wong, Chief Executive, The Hong Kong Jockey Club.

The Board of Examiners includes:
Dr T Y Lee (Chairman), Director, Technology Support Centre, The University of
Hong Kong;
Mr Y K Chan, Safety and Quality Development Manager, MTR Corporation Ltd;
Mr H K Leung, Project Director, Motorola - SDPC Centre for Enterprise Excellence,
Motorola (China) Electronics Ltd;
Mr Sidney Leung, Assistant Vice President, Wealth Protection Solutions, HSBC
Repulic;
Mr I S Wink, Group Quality Systems Manager, Gammon Construction Ltd;
Mr Isaac Yeung, Finance Manager - New Business, The Hong Kong and China Gas Co
Ltd; and
Mr Aaron Yim, Chief Operating Officer, Ricoh Office Solutions.


The Organizing Committee of this year`s Award are:
Mr Alfred Chan (Chairman), Managing Director, The Hong Kong and China Gas Co
Ltd;
Mr T C Chu, Director and Managing Partner, McKinsey & Co Inc;
Ms Susanna Hui, Director, Public Affairs and Communications, East Asia, American
Express International, Inc;
Mr Steve Loo, Director and Senior Vice President, Asia Television Ltd;
Mr Perry Mak, Publisher and Group Managing Director, Hong Kong Economic Times
(Holding) Limited; and
Mr David Turnbull, Deputy Chairman and Chief Executive, Cathay Pacific Airways
Ltd.


The 2001 HKMA Quality Award is sponsored by the following companies:
American Express International, Inc;
Bank of China, Hong Kong Branch;
Cathay Pacific Airways Ltd;
Glorious Sun Enterprises Ltd;
The Hong Kong and China Gas Co Ltd;
The Hong Kong Jockey Club;
HSBC International Trustee Ltd;
Kowloon-Canton Railway Corporation;
The Kowloon Motor Bus Co (1933) Ltd;
Luen Thai International Group Ltd;
McDonald`s Restaurants (Hong Kong) Ltd;
PARKnSHOP;
Ricoh Hong Kong Ltd; and
Xerox (Hong Kong) Ltd.

Media sponsors:
Asia Television Limited
Hong Kong Economic Times

Web site sponsor:
Computer Associates International Ltd

List of past Award winners attached.




Issued by The Hong Kong Management Association on 11 June 2001.
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