Session 13 Bench Marking 2
Transcript of Session 13 Bench Marking 2
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SESSION 13
TOTALTOTAL
QUALITYQUALITY
MANAGEMENTMANAGEMENTBy:By:
Zahid HussainZahid Hussain
MSMS--Total Quality ManagementTotal Quality ManagementLead Auditor 5Lead Auditor 5--SS
IRCA Lead Auditor ISOIRCA Lead Auditor ISO--90019001--20002000
IRCA Lead Auditor ISOIRCA Lead Auditor ISO--1400014000--20042004
IRCA Lead Auditor OHSAS 18000IRCA Lead Auditor OHSAS 18000--20072007
B. Sc Engineering (Chemical)B. Sc Engineering (Chemical)
PCBAPCBAUCPUCP
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Benchmarking is the practice of being
humble enough to admit that someonesomeoneelse is betterelse is better at something and wiseenough to try and learn how to match andhow to match andeven surpass them at it.even surpass them at it.
BENCHMARKING THOUGHTS
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The continuous process of measuring
products, services, and practices againstthe companys toughest competitors or
those renowned as industry leaders
BENCHMARKING THOUGHTS
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BENCHMARKING CONCEPTBENCHMARKING CONCEPT
What is our
performance level ?What is others
performance level ?
Creative
Adaptation
Breakthrough Performance
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Practical ways in which step changes inperformance can be achieved by learningfrom others who have already undertakencomparable changes
The impetus (move fast) for seeking newways of doing things and promotes a culturethat is receptive to fresh approaches andideas
Opportunities for staff to learn new skills andbe involved in the transformation processfrom the outset. It inspire managers &organization to compete.
Why use Benchmarking
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Survival lies in emulating (imitate) bestand not in lagging behind
Benchmarking is time and cost efficient
because it involves imitation andadaptation rather than pure invention.Prevents the Re-inventing the wheel.
Quantum-leaps (Move ahead) inperformance. (Use of Bar code
scanners) Benchmarking allows goals to be set
objectively, based on externalinformation.
Why use Benchmarking
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Internal benchmarking
External benchmarking
Functional benchmarking:
Types ofBenchmarking
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sharing opinionsbetweendepartmentswithin the sameorganisation
ADVANTAGES:
Easier to implement
Easier to access data
DISADVANTAGES:
External ideasblocked
InternalBenchmarking
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Comparison withexternalorganisations todiscover new ideas,methods, productsand services.
The gap betweeninternal and
external practicesdisplays the waywhere to changeand if there is any
need to change.
Advantages Helps to measure ones
own performance
Helps to search for
best practices
Disadvantages
Takes time
Requires support
Legal/ethical issues
Industrial espionage (Spy)
ExternalBenchmarking
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Investigate the performance ofcore business functions.
Comparative research toseek world-class
excellence by comparingbusiness performancenot only againstcompetitors but alsoagainst the best
businesses operating indifferent industry samefield or activity(functions to bebenchmarked)
Advantages:
Discoveringinnovative
practices
Disadvantage:
Not suitable foreveryOrganisation
FunctionalBenchmarking
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Process Benchmarking
Applies to business processes.
Breaks the functions down into discrete area thatare the target of benchmarking.
It is more focused study than functionalbenchmarking
Product Benchmarking
Reverse Engineering or competitive productanalysis.
Assessing competitor product concept, cost,strengths and weakness.
OtherTypes ofBenchmarking
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Strategic Benchmarking
How companies compete, identify the winning
strategies that have enable high-performing
companies to be successful in their
marketplaces. (difficult to share strategy butinformation available from customer, common
suppliers and public domain)
OtherTypes ofBenchmarking
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Key Steps ofBenchmarkingKey Steps ofBenchmarking
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National Productivity Corporation (NPC)National Productivity Corporation (NPC)--MLMLBenchmarking Model 1985Benchmarking Model 1985
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
(FocusVisit)
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Benchmarking PartnersBenchmarking Partners
Department orOrganization against whichthe comparison is made.Categories ofBenchmarking Partners
Internal ( best starting point)
Competitive Functional(best in same field and activity)
Generic (otherfields and industries.)
How to deal with benchmarking partners
Developa questionnaire what information needed. Answerthe questionnaire internally
Provide reason forevery question
Clarify the objectives, area ofinterest, area ofconfidentialityand sensitivity withpartner.
Arrange avisit withpartner.
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Key Steps of BenchmarkingKey Steps of Benchmarking
Identify what to benchmark Ensure management support and involve all
stakeholders
Select the benchmarking team Arrange the specific trainings
Analysis of internal processes
Identify companies to benchmark
Decide on method(s) of data collection Collect public domain information
Analyze collected information to establishthe further info needed
Prepare the block diagram with necessaryloops
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Key Steps of BenchmarkingKey Steps of Benchmarking
Establish contacts with benchmark partners Plan and conduct the actual visits
Establish whether a performance gap exists
Predict future performance levels Communicate benchmark findings
Establish targets and action plans
Gain support and ownership for the plansand goals
Implement the action plans, measureperformance & communicate progress
Re-calibrate benchmarks
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BARRIERS TO BENCHMARKING
1. Fear of being seen as copying
2. Fear of losing competitive
advantage by sharing information3. Arrogance we are the best, why
benchmark?
4. Benchmarking trap benchmarkthat which is convenient, but may not
be important.
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BARRIERS TO BENCHMARKING
Impatience
Excuses are too easy:
We are too smallWe are too busy
We are too different
Nobody else does what we doWe do it better than anyone else
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Legal & Ethical GuidelinesLegal & Ethical Guidelines
Keep it legal
Be willing to give what you get
Respect confidentiality
Keep information internal
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QUESTIONS