TQM new ppt

8/2/2019 TQM new ppt

1/25

BENCHMARKING

Department of Human Resource Management

Faculty of Commerce and Management StudiesUniversity of Kelaniya


2/25

Group Members

G.M.U.I. Gunasinghe BM/2007/079 A.K.S. Gunawardena BM/2007/083

S.J.L. Madusanka BM/2007/146

P.A.P.K. Panangala BM/2007/171

B.C.R. Perera BM/2007/176

R.M.A.N.I. Rajakaruna BM/2007/202

D.K.D. Rangani BM/2007/214

R.P.S.R. Shashikala BM/2007/248 T.S.M. Silva BM/2007/253

M.D.S. Sharmila BM/2007/316


3/25

Outline

Introduction of Benchmarking Purpose of Benchmarking

Types of Benchmarking

Process of Benchmarking Advantages of Benchmarking

Drawbacks of Benchmarking

Conclusion


4/25

Introduction

Benchmarking is the systematic process of

comparing business processes and

performance metrics to industry best

practices in terms of quality time and costdimensions and making such comparisons the

basis to do things better, faster, and cheaper.


5/25

Purpose of Benchmarking

Comparing an organizations performance to

the best organizations performance

Comparing an organizations business process

with similar process

Comparing product and services

Identify the best practices to implement

Projecting trends


6/25

Types of Benchmarking

Benchmarking

InternalBenchmarking

CompetitiveBenchmarking

FunctionalBenchmarking

Generic (BestPractice)

Benchmarking


7/25

Internal Benchmarking

Defined it as performance comparison ofunits or departments within one

organization. Most Appropriate for the Several businessunits within the same organization .


8/25

Competitive Benchmarking

Direct comparison of a company's own

performance against its competitors.

Most Appropriate for the assessing relativelevel of performance in key areas or

activities in comparison with others in the

same sector and finding ways of closing gaps

in performance.


9/25

Functional benchmarking

A company will focus its benchmarking on a

single function in order to improve the

operation of that particular function

It compares specific business functions

amongst at least two different organizations in

the same or different industry

Higher chances of breakthrough as thefunctions are similar and comparison is with

best in class.


10/25

Generic Benchmarking

Method of comparing the performance and

processes of organizations in unrelated

industries. It involves analysis across industries

It can often result in an organization's

drastically altering its ideas about its

performance capability.


11/25

Benchmarking Process

To be successful, company needs to evaluateits performance in a consistent manner.

Need to measure their processes andperformance against recognized, industry

leaders or against best practices

To achieve the objectives of the organizations,need a process.

It is indeed invaluable in an organization's forcontinuous improvement.


12/25

Stages of the Benchmarkingprocess


13/25

Planning

stage What are included?

01 1.Identify what is to be

benchmarked

2.Identify comparative companies


14/25


15/25

Identify comparative companies

Choose an appropriate benchmark against

which their performance can be measured.

Measures and practices used in comparative

companies should be identified. In order to carry out the benchmarking

process; should appointed a leader, as to

ensure the smooth, timely implementation of

the project.


16/25

Data collection

Involves creating a plan for collecting

data from selected targets


17/25

Factors which must consider when

collecting data:-

Determine what are the simplest and the mostdifficult data sources.

Decide which combination of the four types ofsources

(internal, published, external, original research) Proceed by preparing an introduction survey from

a checklist of topics to be covered.

Then send the preliminary survey to the contact

person . Prepare a site visit plan and send a summary of the

topics that will be covered to the contact person.

Obtaining information from a competitor, avoid

any possibility of misrepresentation


18/25

Analysis

Analysis consist of two aspects

Determine competitive gap

Project future performance levels

There are five phases in this step

Data analysis

Data presentation

Root cause analysis

Result projection

Enabler identification


19/25

Implement plans and monitor

results Executing the approved best-practice

procedures

Closely observed the process in whichdeviations from the plan will be corrected

So the ultimate goals are achieved


20/25

CONT

Have timeline charts been created?

Have control charts been created?

Has any variance from the plan been

manage with effectively? Has final evaluation been made of the

benchmarking process?


21/25

Advantages Of Benchmarking

Compare themselves with others to identifyown comparative strength and weaknesses.

To understand and evaluate the currentposition of a business or organisation.

Generate both incremental changes and wide-ranging strategic reforms for an organisation.

Enabling organizations to outperform theircompetitors.

Educational process, allowing companies tosee what other operators are doing.

Improve the day to day management of thebusiness.


22/25

Disadvantages of Benchmarking

Increase the diversity of information so the

potential for information overload May reduce managerial motivation when

comparing with a better resourced rival

Remains inadequate to measure the overall

effectiveness

Does not consider the circumstances under

which the competitors attained such standards.

Danger of complacency and arrogance Only a means to an end, and it is worthless if

not accompanied by a plan to change


23/25

Conclusion

It is clearly evident, benchmarking can add

value to the organization's workflow and

structure, by identifying areas for

improvement and adaptation. It is indeed invaluable in an organization to

seek for continuous improvement.


24/25

CONT..

Successful benchmarking requires three basicingredients

a real problem with management willing to

solve itaccess to benchmarking partners who havepreviously resolved that problema knowledgeable benchmarking team with theability to use quality tools and research practices

to investigate process problems to their rootcause


25/25

Documents

TQM new ppt