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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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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.
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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.
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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
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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.
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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