Session 13 Bench Marking 2

8/7/2019 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

Documents

Session 13 Bench Marking 2