Post on 20-Nov-2014
transcript
AJAY KUMAR PANDEY
MBA 4RTH SEMRAI BUSINESS SCHOOL
HYDERABAD
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BENCHMARKINGTQM
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Benchmarking is a systematic method by which organization can measure themselves against the best industry practices.
Essence of BM is the process of borrowing ideas and adapting them to gain competitive advantage.
Benchmarking
Benchmarking - The practice of measuring an organization’s performance and productivity against standards, either internal or external.
Benchmarking
Internal Benchmarking The process of comparing an organization’s
current data on productivity with its own past records to determine how its current performance compares with past performance.
Variations alert the manager to changes Patterns and trends guide staffing/work
processes
Benchmarking
External Benchmarking The process of an organization
comparing its performance and productivity with those of other comparable organizations to determine whether it is performing at, above, or below the industry standard.
BENCHMARKING CONCEPT
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What is our performance level
What are others’ performance levels?How did they get there
CreativeAdaptation
Breakthrough Performance
Types of Bench MarkInternal B M E.g. Eicher Tractor Comparison Between
UnitsCompetitive B M Direct Product CompetitorsFunctional B M E.g. Best Logistics from same industries
(or) Any industries Generic B M Same process or functions like Customer
service, order entry, regardless of industries . 8
Reasons For Bench Mark
Defining Customer RequirementsEstablish Goals and Objectives Measures of ProductivityBecoming CompetitiveIndustry best practices to be
achieved
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Reasons for Bench Marking
To achieve Business & Competitive Objectives
Goals & Objectives Based on External Environment
Cost Efficient Continuous Improvement & New
Development
Bench Marking Process
Phases S.no Steps
Planning 1 Earmark what is to be Bench Marked ?
2 Identify the best competitor
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Determine the data collection method and start collecting data
Analysis 4 Determine the current performance GAP
5 Project future performance levels11
Bench Marking Process
Phases S.no Steps
Integration 6 Communicate bench mark findings and gain acceptance
7 Establish Functional Goals
Action
8 Develop Action Plans
9 Implement specific actions and monitor Progress
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Communicate Data For analysis
Acceptance for Analysis
Bench Marking Process
Phases S.no Steps
Maturity 10 Recalibrate Benchmarks
11 Attain the Leadership position
12 Integrate Practice into the Process
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Conclusion
Quality management programs include quality control, quality assurance, Continuous Quality Improvement and Total Quality Management.
Benchmarking is one of the tool to help organizations develop strength and reduce weakness.
BM can inspire managers and organization to compete.
Conclusion
Performance BM is to compare ones own performance with that of some other organization.
Process of BM is to compare the methods and practice for performing progress.
THANK YOU
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