Bench Marking -Suganya

8/4/2019 Bench Marking -Suganya

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Seminar On BenchmarkingBy

V.Suganya(M.B.A 1st year)


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WHAT IS BENCHMARKING?

Benchmarking is the process of determining who

is the very best, who sets the standard, and what

that standard is.


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DEFINITION OF BENCHMARKING:

The process of identifying ,understanding,

and adapting outstanding Practices and

processes from organizations anywhere in

the world to an organization to improve its

performance

by

American Productivity and Quality Centre


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EVOLUTION OF BENCHMARKING:

The method may have evolved in the early1950s, when W. Edward Demingtaught

theJapanese the idea of quality control. Other

American management innovations followed.

The best example is Toyota Motor Corporations

following the footsteps of Ford Motor Corporation

The term benchmarking emerged when the

idea took ground in US during 1980s when

Xerox, Ford and Motorola became the pioneers of

benchmarking in USA.

Robert Campdefines it:

Benchmarking is the search for industry

best practices that lead to superior performance.


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CONCEPT OF BENCHMARKING:


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LEVELS OF BENCHMARKING

There are three levels of benchmarking:

1. Internal benchmarking (within the company)

2. Competitive or strategic benchmarking

(Industry and competitors)

3. Benchmarking outside the industry.


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TYPES OF BENCHMARKING:

Process

Benchmarking

Competitive

Benchmarking

Strategic

Benchmarking

Product

Benchmarking

Functional/

Generic

Internal/

external


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PROCESS OF BENCHMARKING:

It involves various phases namely

PLANNING

ANALYSIS

INTEGRATION

ACTION

MATURITY


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COSTS INVOLVED IN

BENCHMARKING

Visit Costs

Time Costs

Benchmarking Database Costs


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SELECTED BENCHMARKING

PROCESSES OF SOME COMPANIES:

The Bristol-Myers & Baxter International

Seven-Step Benchmarking Process

1. Determine which function(s) to benchmark;

2. Identify key performance variables to measure;

3. Identify the best-in-class companies;

4. Measure performance of best-in-class companies;

5. Measure your own performance;6. Specify programs and actions to meet andsurpass;

7. Implement and monitor results.


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TheMotorolaFive-StepBenchmarkingProcess

1. Decide what to benchmark;

2. Find companies to benchmark;

3. Gather data;

4.Analyze data & integrate results into action

plans;5. Recalibrate & recycle the process.


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TheXerox12-StepBenchmarkingProcess Phase 1:Planning

1. Identify what to benchmark;

2. Identify comparative companies;

3. Determine data collection method & collect data.

Phase 2: Analysis

4. Determine current performance gap;

5. Project future performance levels.

Phase 3: Integration

6. Communicate finding and gain acceptance; 7. Establish functional goals.


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TheXerox12-Step BenchmarkingProcess(continued)

Phase 4: Action

8. Develop action plans;

9. Implement specific actions & monitor

progress;

10. Recalibrate benchmarks.

Phase 5: Maturity 11. Attain leadership position ;

12. Fully integrate practices into processes.


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The AT&T Nine-Step

Benchmarking Process

1. Identify what to benchmark;

2. Develop a benchmarking plan;

3. Choose a data collections method;

4. Collect data;

5. Choose best-in-class companies;

6. Collect data during a site visit;

7. Compare processes, identify gaps, anddevelop recommendations;

8. Implement recommendations;

9. Recalibrate benchmarks.


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BENEFITS ACHIEVED BY THEORGANIZATIONS

THAT HAVE SUCCESSFULLY COMPLETED

THEIR BENCHMARKING PROGRAMS.There are three sets of benefits:

1. Cultural Change

2. Performance Improvement

3. Human Resources


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BENCHMARKING MODEL

Phase 1BENCHMARK

Start

1.Agree On

Benchmarking Topic

2. Finalise On Scope;

Measures & Definitions

3. Data Collection :

Survey

4. Share Strengths

Phase 3IMPROVEMENT

New Area

9. Plan to Adapt

Best Practices

10. Implement

Best Practices

11. Monitoring

Result

12.

Standardization

13. Daily Control

Continue

Existing

Project?

Yes

No

Phase 2BEST PRACTICES

5. Plan for Site Visit

6. Data Collection

7. Recommend

Improvement

8. Share Findings

Yes

2ndSite Visit

(Focus Visit)


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ADVANTAGES OF BENCHMARKING(1)Benchmarking helps identify the gaps between the

organization that is undertaking the benchmarkingassessment and best practice.

(2)Undertaking benchmarking can lead to improvementsbeing incorporated into processes and systems deliveringgains in efficiency and effectiveness

(3)Benchmarking can help align improvement activity withstrategic goals and objectives

(4) Improves organizational quality

(5)Leads to lower cost

(6)Exposes employees to new ideas and broadensorganizations perspective

(7) A catalyst for learning and increase employee satisfaction

(8)Raise the level of potential performance and sharing ofbest practices

(9)Understanding world-class performance in-depth

(10) Encourage and stimulate innovation


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PITFALLS OF BENCHMARKING:

Project not aligned with competitive strategy

Outcome cannot be adequately measured

Scope of project too large

Omission secondary but important measures

Failure to establish a baseline


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XEROX -CASE

The company invented the photocopier in 1959 andmaintained a virtual monopoly for many years

Xerox became a generic name for all photocopiers

By 1981, however, the companies market

shrunk to 35%o The company instituted the quality improvement

plan, which was later known to the world as

Benchmarking

The benchmarking process resulted in: Quality

problems cut by two-thirds, manufacturing costs cut

in half, development task cut by two-thirds, direct

labor cut by 50% and corporate staff cut by 35%

while increase in volume.


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CONCLUSION

If you know neither yourself nor your enemy, you will

succumb in every battle.

If you know yourself but not the enemy, for everyvictory gained you will suffer a defeat.

If you know yourself and your enemy, you need not

fear of a hundred battles.

- Sun Tzu


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THANK YOU!!!!!!!!!!!!!!!!THANK YOU!!!!!!!!!!!!!!!!

Bench Marking -Suganya

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