ch 3 (benchmarking)

8/12/2019 Ch 3 (Benchmarking)

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9-1 Excel BooksTotalQualityManagement Text and Cases G Nagalingappa, Manjunath V S

Copyright 2010, G Nagalingappa, Manjunath V S

BenchmarkingCH-9

Chapter

9 Benchmarking


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BenchmarkingCH-9

Cont.

Introduction

Benchmarking best industry practices is one of the popular quality

management methodologies used by organizations all over the world.

Xerox was the first organization which initiated benchmarking

concept and it went on to win Malcolm Baldrige National Quality

Award.

Many other organizations have used benchmarking as a tool for

quality and productivity improvement.


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BenchmarkingCH-9

Benchmarking Is the systematic & continuous process of

determining what the best performances &underlying skills of leading are in their of

excellence, & based on this, of stimulating the

organization's own latent capabilities forexcellent performance at all organizational

levels. (Camp).

Benchmarking is an important strategic tool oftotal quality management (TQM).

Benchmarking enhances transparency and

performance.


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BenchmarkingCH-9

Best in the class performance

Adaptation from learning

Organizationscurrent

performance

Performance of bestcompanies or

industry leaders

Benchmarking


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BenchmarkingCH-9

Types of Benchmarking

1. Competitive benchmarking: product or services of a competitator.

2. Generic benchmarking: evaluating process or business function.

3. Strategic benchmarking: long term strategies, approaches to better

performance.

4. Process benchmarking: specific critical process improvement.

5. Functional benchmarking: functional areas to improve performance.

6. Internal benchmarking: business units or within department.

7. External benchmarking: learn form other organization.

8. International benchmarking: best practices outside the country.


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BenchmarkingCH-9

Reasons for Benchmarking

1. Learning from best practices from any industry and incorporating them

for improvement

2. Helping an organization to understand its current performance

3. Encouraging for continuous improvement projects

4. Improved customer satisfaction

5. Improves competitiveness

6. Enhances productivity

7. Helps in thinking out of box

8. Stimulates motivation among the employees.


7/109-7 Excel BooksTotalQualityManagement Text and Cases G Nagalingappa, Manjunath V S


BenchmarkingCH-9

Deciding what to

Benchmark?

Benchmarking can

applied to any business

process or function ofthe organization.

Understanding current performance

Planning

Studying others

Learning from the data

Using the findings for improvements

Deciding what to benchmark

Process of Benchmarking

Cont.




BenchmarkingCH-9

Analysis4.Determine competitive gap5.Project future performance

Integration6. Communicate results7. Establish functional goals

Action8. Develop action plans9.Implement plans and monitor results10.Recalibrate benchmarks

Planning1.Identify benchmark subject2.Identify benchmark partner3.Determine data collection method and

collect data

Xerox 10-step Process of Benchmarking




BenchmarkingCH-9

Kaizen

Kaizen means improvement.

The Kaizen strategy is the single most important concept in Japanese

management. It is the key to Japanese competitive success.

KaizenThe Definition

Kaizen (Ky ' zen) is a Japanese term that means continuous improvement,

taken from words 'Kai', which means continuous and 'zen' which meansimprovement.




BenchmarkingCH-9

Kaizen-umbrella

l CustomerOrientation

l

l

l

l

l

l

l

TQC

Robotics

QC Circles

Suggestion Systems

Automation

Discipline in thework place

TPM

l

l

l

l

l

l

l

l

Quality ImprovementJust-In-Time

Zero Defects

Small Group Activities

Cooperative LabourManagement Relations

Productivityimprovement

New ProductDevelopment

Kanban

ch 3 (benchmarking)

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