Benchmarking total quality management
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Transcript of Benchmarking total quality management
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Presented By:Presented By:
Rehan Ehsan Rehan Ehsan
THE UNIVERSITY OF LAHORETHE UNIVERSITY OF LAHORE
(LAHORE SCHOOL OF ACCOUNTING & (LAHORE SCHOOL OF ACCOUNTING & FINANCE)FINANCE)
CONTACT: +92 321 8880397CONTACT: +92 321 [email protected]
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Definition Definition
Benchmarking is the systematic search Benchmarking is the systematic search for best practices, innovative ideas, for best practices, innovative ideas, and highly effective operating and highly effective operating procedures.procedures.
it is the common sense proportion to it is the common sense proportion to learn from others what they do right learn from others what they do right and then imitate it to avoid and then imitate it to avoid reinventing the wheel.reinventing the wheel.
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Introduction and use:Introduction and use:
Benchmarking is an increasingly effective Benchmarking is an increasingly effective popular tool.popular tool.
It is used extensively both manufacturing It is used extensively both manufacturing and service organizations, includingand service organizations, including
XeroxXerox AT&TAT&T Motorola Motorola Ford Ford ToyotaToyota
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Benchmarking is common elements Benchmarking is common elements of quality standards, such as the of quality standards, such as the Chrysler, Ford, and General Motors Chrysler, Ford, and General Motors Quality System Requirements.Quality System Requirements.
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Reasons to BenchmarkReasons to Benchmark For functions that are critical to the For functions that are critical to the
business mission, organizations must business mission, organizations must continue to innovate ass well as Imitate. continue to innovate ass well as Imitate. Benchmarking enhances innovation by Benchmarking enhances innovation by requiring organizations to constantly scan requiring organizations to constantly scan the external environment and to use the the external environment and to use the information obtained to improve the information obtained to improve the process. process.
Potentially useful technologies Potentially useful technologies breakthroughs can be located and adopted breakthroughs can be located and adopted earlyearly
In our words we can say that In our words we can say that benchmarking is to enhance business and benchmarking is to enhance business and improve its quality. improve its quality.
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Dia:Dia:What is our
Performance level ?How do we do it ?
What are others` Performance levels ?
How did they get there ?
CreativeAdaptation
Breakthrough performance
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Types of benchmarking: Types of benchmarking:
There are three main types of There are three main types of benchmarking:benchmarking:
Internal Internal
Competitive andCompetitive and
Process Process
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Process of benchmarking:Process of benchmarking: The following six steps contains the core The following six steps contains the core
techniques: techniques:
Decide what to benchmark Decide what to benchmark Understand current performance Understand current performance Plan Plan Study others Study others Learn from data Learn from data Use the findings Use the findings
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Decide what to benchmark ?Decide what to benchmark ?
Benchmarking can be applied to the Benchmarking can be applied to the any business or production process.any business or production process.
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Understanding current Understanding current performance:performance:
To compare practices to outside To compare practices to outside benchmarks, it is first necessary to benchmarks, it is first necessary to thoroughly understand and thoroughly understand and documents the current process of documents the current process of your organization that where you your organization that where you stand.stand.
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Planning Planning
Once internal process is understood Once internal process is understood and documented, it is possible to make and documented, it is possible to make decisions about how to conduct the decisions about how to conduct the study.study.
The team should be decided that what The team should be decided that what type of benchmarking to be preformed.type of benchmarking to be preformed.
Benchmarking planning is a learning Benchmarking planning is a learning process.process.
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Studying others Studying others
Benchmarking studies look for two Benchmarking studies look for two types of information:types of information:
A description of how best in class A description of how best in class processes are practices and processes are practices and
the measurable results of these the measurable results of these practicespractices
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When most people thinks of learn When most people thinks of learn benchmarking they generally think of benchmarking they generally think of conducting original research through conducting original research through sites visits and interviews. sites visits and interviews.
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Learn from the data:Learn from the data: Learning from the data collected in a Learning from the data collected in a
benchmarking study involves answering a series benchmarking study involves answering a series of questions:of questions:
Is there a gap between the organizations Is there a gap between the organizations performance and the performance of the best-in-performance and the performance of the best-in-class organizations ?class organizations ?What is the gap ? How much is it ?What is the gap ? How much is it ?Why is there a gap ? What does the best-in-class Why is there a gap ? What does the best-in-class do differently that is better ?do differently that is better ?If best-in-class practices were adopted, what If best-in-class practices were adopted, what would be the resulting improvement ?would be the resulting improvement ?
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Its main objective is to determine Its main objective is to determine from overall effect on the internal from overall effect on the internal operation of adapting the best-in-operation of adapting the best-in-class practice.class practice.
In other words, what is the size of the In other words, what is the size of the gap and what are the appropriate gap and what are the appropriate benchmark metrics and objectives ?benchmark metrics and objectives ?
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Using the findings: Using the findings:
Benchmarking is the waste of time if Benchmarking is the waste of time if change does not occurs as a result. To change does not occurs as a result. To effect the change, the findings must be effect the change, the findings must be communicated to the people within the communicated to the people within the organization who can enable organization who can enable improvement.improvement.
The findings must be translated to GOALS The findings must be translated to GOALS and OBJECTIVES and ACTION PLANS must and OBJECTIVES and ACTION PLANS must be developed to implement new process.be developed to implement new process.
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The generic steps for the development and The generic steps for the development and execution of action plans are:execution of action plans are:
Specify tasks Specify tasks
Sequence tasks Sequence tasks
Determine resource needs Determine resource needs
Establish task schedule Establish task schedule
Assign responsibility for each task Assign responsibility for each task
Describe expected results Describe expected results
Specify methods for monitoring results.Specify methods for monitoring results.
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Goals and objectives should be Goals and objectives should be consistent with the execution of the consistent with the execution of the action plan so that the end result is action plan so that the end result is process superiority. The best results process superiority. The best results are obtained when process owners are obtained when process owners fully participate in the design and fully participate in the design and execution of the plan.execution of the plan.