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8/2/2019 24932697 Bench Marking in TQM
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BENCHMARKINGBy:AnuragGuptaIBSKochi
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BenchmarkingisthesearchforindustrybestpracticesthatleadtosuperiorperformancebyRobertCamp
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TheEvolutionofBenchmarkingEvolvedintheearly1950s,whenW.EdwardDemingtaughttheJapanesetheideaofqualitycontrol.
ExampleToyotaMotorCorporationsfollowingthefootstepsofFordMotorCorporationwiththeadaptationoftheFordsJust-in-caseSystemintoToyotasJust-in-TimeSystem.
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TermBenchmarkingemergedin1980sbyROBERTCAMP,logisticsengineerwhoinitiatedXeroxsbenchmarkingprogram.UseofbenchmarkingworldwidecontinuestogrowsinceRobertCampwrotethefirstbookonbenchmarkingin1989.
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BenchmarkingValuableTQMtoolwhichaccomplishesobjectivesofcustomersatisfactionandcontinuousimprovement.Motivatesanorganization&fostersanewin-depthunderstandingaboutthefunctioningoftheorganization.Reducescycletimeassmallorbigtasksgetdonefaster.Constantlyredefinesstandardswhichmustbeachievedtoremaincompetitive.Increasesproductivity.
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BenchmarkingprocessBenchmarkingStandardsBenchmarkGapHowmuchWhereWhenBenchmarkPracticesHowtoclosetheGapImprovedKnowledgeImprovedPracticesImprovedProcess
ManagementCommitmentOrganizationCommunicationEmployeeparticipation
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BenchmarkingProcessModelAdaptPlan
AnalyzSearcehObserve
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StepsinBenchMarkingProcess
1.
Plan
SelecttheprocessFormTeamUnderstand&documentprocessEstablishperformancmeasure
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2.
Search
ListingCriteriaforpartnerselectionConductgeneral/secondaryresearchDecidetheleveltoBenchmarkIdentifypotentialpartners&contact
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3.
ObserveQuestionnairesenttopartnerTelephonecontactDirectobservation/sitevisit
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5.
Adapt
IdentifyimprovementopportunitiesSettargetforimprovementDevelopimplementationplan,monitortheprogressWritefinalreport
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InternalBenchmarkingComparisonofsimilarfunctionsindifferentoperatingunitswithintheorganization
Example
TataSteelsCollierydivisionsbenchmarkingtheirmaintenancepracticeswiththatoftheMaintenancedivisioninsidetheSteelWorksatJamshedpur.
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ExternalBenchmarkingComparisonoforganizationfunctionsandkeyprocessesagainstexternalgoodpracticeorganization.
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PerformanceorCompetitiveOrganizationsusingperformancemeasurestocomparethemselvesagainstsimilarorganizationsExampleFMCGscomparingwitheachotherforMarketshare,Retentionrates,profits,costs.
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FunctionalBenchmarkingComparisonofsimilarfunctionsagainstexternalbestinanyindustry
Example
HindustanMaxGBLtd,apharmaceuticalcompany,benchmarkingtheirmaintenancefunctionwiththatofTataSteel.
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GenericBenchmarkingComparisonoffunctionswhicharegenericinnatureinanyindustry
Examples
HospitalintheU.S.routinelybenchmarktheirpatientmanagementagainsthotelsguestmanagement.Airlinesbenchmarktheirservicewith5starhotels.customers
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StrategicBenchmarkingUsedwhereorganizationsseektoimprovetheiroverallperformancebyfocusingonspecificstrategiesorprocessesExampleBenchmarkingagainstorganizationswhichhavewonawardsorsomeotherdistinctions
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ProcessBenchmarkingFocusonspecificoperationsorprocesses
ExamplesInhighereducation-EnquiryManagement,EnrolmentInLogistics-Delivery,Safety.Inhotels-Housekeeping,CustomerCare.
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IssuesinBenchmarkingFindingsuitablepartners.Difficultiesincomparingdata(50%oforganizationsfoundthis)Resourceconstraints(Time,FinanceandExpertise)Staffresistance.
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XEROXCaseInventedphotocopierin19591981,thecompanysmarketshrankto35%IBM,Kodakevelopedhigh-endmachinesCanon,Richo,andSavindominatedthelow-endsegmentCompanywassufferingfromthenotinventedheresyndrome
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XEROXCaseResultsincluded:Supplierswerereducedfrom5000to300.Concurrentengineeringwerepracticed.HierarchicalorganizationstructurewasreducedQualityproblemscutbytwo-thirdsManufacturingcostscutinhalfDevelopmenttimecutbytwo-thirdsDirectlaborcutby50percentandcorporatestaffcutby35percentwhileincreasingvolume
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Thanks
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