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TQM
Presentation by:
2013103615,
Monisha Prakash.
1
What is Benchmarking?
Benchmarking is the process of
measuring an organizations internal processes
then identifying, understanding, and adapting outstanding practices from other
organizations considered to be best-in-class.
Definition
measuring our performance against that of best-in- class companies,
determining how the best-in-class achieve those performance levels
and using the information as a basis for our own companys targets,
strategies and implementation .
2
The Essence of Benchmarking
3
Why Benchmarking?
4
When is Benchmarking Done?
If the companys QMS is not properly developed, documented and
implemented.
5
Benchmarking in the Context of TQM
TQM Key principles include:
6
Levels Of Benchmarking In Competitive
Environment
Internal benchmarking - Within ones org.
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Benchmarking Methodology
Best Practice
Overlap
Competitive
Industry leaders
Top performers with
similar operating
characteristics
Functional Internal
Top performers Top performers
regardless of industry within company
Aggressive innovators Top facilities
utilizing new within company
technology
8
Types Of Benchmarking
Strategic benchmarking:
Examines how companies compute and seeks the winning strategies that have
led to competitive advantage and market success.
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Areas Of Benchmarking
10
Guidelines to Benchmarking
Exchange Information.
Legal Concerns.
Confidentiality.
11
Five Phases Of Benchmarking
Planning: Identify the product, service or process to be benchmarked
Analysis: Determine the gap between the firms current performance and that of
the firms benchmarked and identify the causes of significant gaps.
Integration: Establish goals and obtain the support of managers who must
provide the resources for accomplishing the goals
Action: Develop action plans, and team assignment, implement the plans,
monitor progress and recalibrate benchmark as improvements are made.
12
Benchmarking Strategy
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The Seven Step Benchmarking Model
Activity What is included
Step 1: Identify what to benchmark Clarify the benchmark objectives
Decide whom to involve
Define the process
Consider the scope
Set the boundaries
Agree on what happens in the process
Flowchart the process
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The Seven Step Benchmarking Model
Step 4: Collect data Use a questionnaire
Conduct a benchmark site visit
15
Factors For Success Of Benchmarking
Benchmarking must have the full support of senior management
and they should actively involve with this process.
The firm will observe and measure the competitor's operations, and
in some industries, they will send in employees as customers to
gain direct experience.
One firm, Pal's Sudden Service, a small hamburger and hot dog
chain and a Baldrige Quality Award winner, is so successful at
achieving best-in-class performance for drive-thru and overall
restaurant operations, that it opened an educational institute to
train other organizations.
19
Motorola is one of the companies that successfully implement
benchmark.
21
After Motorola has implemented the Total Cycle Time, the
cycle time for their manufacturing and engineering process
has reduced for typically 60%-70%.
This means that a process that usually takes three weeks can
be reduced to one week. Besides, for the administrative or
service processes, the reduction of cycle time is in a range of
90%-95%.
22
Advantages
Benchmarking is a systematic method by which organizations can measure themselves
against the best Industry practices.
Through Benchmark process organization can borrow ideas, adopt and refine them to gain
competitive advantages.
23
Disadvantages
The most resistant criticism of Benchmarking comes from the idea of copying
others.
24
Conclusion
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