CONTENT:

1. WHAT IS BECH MARRKIG AND WHAT Is the first company

implemented it
2. Elements, builts (green master), importance of benchmarking

3. Comparison between benchmarking & TQM and what is the

Similarities: Variations between them

4. The possibility of applyingTQM and Benchmarking in the same

company

1- What is the first company to implement benchmarking?

Xerox is the first company to implement benchmarking as part of its quality

improvement efforts in the late 1970s and early 1980s. Seeking to improve
its manufacturing processes and overall quality, Xerox looked beyond its
own industry and began studying and adopting practices from other
industries, such as automotive and electronics.
Chester Carlson invented the first xerographic image in 1938 and named the
technology electrophotography. Xerox grew rapidly until 1976, but then
faced intense competition from US and Japanese competitors, which was a
collective representative of many small coordinated problems.

Problem:-

 Intense competition from US & Japanese competitors

Causes:-

 Xerox's improper strategic management

  Ignoring competitors
 Centralized decision making process
 Inferior quality of product
 30.000 defective parts per million
 High manufacturing cost

Effects:-

 High operating cost

 Profit decreased from 1.15 billion to 290 million
 Fall in market share from 86% to 17%

1982 David became CEO and launched the program 'Leadership through
quality'. He broke the main problem into its coordinated small problems. As
shown in figure below.
Xerox faced intense competition from competitors whose average
manufacturing cost of copiers was 40-50% lower than Xerox's, due to their
focus on niche areas and low-cost/simpler products. Japanese competitors
had a particular advantage in simpler product markets where customers
prioritized low costs. Xerox's multiple layers of management and slow
decision-making made it difficult for their marketing team to compete
effectively. Xerox responded by launching a program called 'Leadership
through Quality' which aimed to reduce manufacturing costs and improve
quality control through benchmarking, initially against Japanese
competitors.
Xerox made their own five stage process of benchmarking. This includes
following stages

1. Planning- setting plan according to problems.

2. Analysis- analyzing the data to get conclusion

3. Integration- goal setting

4. Action- actions taken

5. Maturity- final results

Xerox followed a five-stage process for benchmarking, starting by collecting

data on key processes from best practice companies in Japan. They analyzed
the data and found that Xerox took longer and had more defects than
Japanese competitors, and set goals to achieve superiority in quality, product
reliability, and cost. They identified ten key factors related to marketing and
divided them into 67 sub-processes, which became targets for improvement.
In the action stage, Xerox implemented a program to make order filling
more efficient, reducing time, cost, and effort. In the maturity stage, Xerox
realized that competitive benchmarking was inadequate, and began
implementing functional benchmarking to identify the best practices in
specific processes or operations.

For solving problems in various departments, Xerox started benchmarking.

Following departments went under the process of benchmarking.

1. Benchmarking in Supplier management system

2. Benchmarking in inventory management

3. Benchmarking in manufacturing system

4. Quality benchmarking

On we will look one by one how actually benchmarking was done

1. Benchmarking in supplier management system-

Plan- keeping number of suppliers low (benchmarking Japanese companies)

Analysis- Xerox found, altogether Japanese copier companies had 1000
suppliers while Xerox alone had 5000

Integration- goals established like standardization of machine parts,

Educating suppliers about exact need by training

Action- implementation of manufacturing automation,

Use of just in time scheduling

Maturity- Company reduced number of suppliers from 5000 to 400.

Successfully achieved vendor certification process for standardization of
parts.

1. Benchmarking inventory management-

Plan- improve inventory management practices (benchmarking with

European operations)
Analysis- non availability of adequate information on actual usage pattern of
spear parts at the time of production.

Integration- understanding usage pattern, forecasting actual need of

inventory. Action- development of sophisticated information system,
Delaying assembly of the product into the final configuration as much as
possible.

Maturity- saved 10millions dollar by keeping inventory level low, increase

in work in process inventory due to postponement, Reduction in holding
inventory of finished goods.

3. Benchmarking manufacturing system-

Plan- revamping manufacturing techniques

Analysis- internal and external customer analysis

Integration- identification of internal and external customers, introducing

customer satisfaction measurement system.

Action- satisfying needs of all internal and external customers, sending

55,000 questionnaires to measure customer satisfaction

Maturity- significant improvement in operational efficiency, creating data

base of 55,000 questionnaires for developing business plan.

4. Quality benchmarking-

Plan- leadership through quality

Analysis- quality analysis as per requirement of customer Integration-
reformulating quality policies

Actions-focused research, development, employee involvement

Maturity- Xerox became a quality company

Overall improvements

 Increase in number of highly satisfied customers by 38%

 Customer complaints fell by 60%
 Customer satisfaction rated more than 90%
 Service time reduced by 27%
 Number of defects reduced by 78%
 Inventory cost reduced by 2/3rd
 Productivity increased by 1/3rd

2- Importance of benchmarking in quality management

Benchmarking is a valuable quality management tool that allows

organizations to compare their performance to that of other companies
or industry standards. Organizations can then identify areas for
improvement and set goals for improvement.

The benchmarking process allows a team or company to determine

what specific practices are helping other departments or competitors
achieve certain results. The team or company can then adopt those
practices to achieve similar improved results.
 benchmarking is a flexible process, it can be applied to almost any
part of your business, from the state of your business at the broadest
level to individual channel goals. Here are a few additional ways
benchmarking can prove beneficial to your business:

 It helps you understand how your business stacks up. By

comparing your business to your competition, you can gain
clear insights into your strengths and weaknesses in
comparison to theirs.

 It helps you set clear goals for your business. For example,
if the abandoned cart rate for your industry is 38% and yours is
46%, you know how far behind you are—and how much work
it will take to get on track.

 It allows you to prioritize areas that need

improvement. Areas in which you fall significantly behind
your industry or competition will need more urgent attention,
whereas areas in which you align more closely can be
deprioritized.

 It helps you track the progress of your goals. Once you have
set goals, continuous benchmarking allows you to see how
closely you are adhering to them and, if you’re falling short,
determine what needs to change.

Elements of Benchmarking
(1) Planning

Prior to engaging in benchmarking, it is imperative that corporate stakeholders identify

the activities that need to be benchmarked.

For instance, the processes that merit such consideration would generally be core
activities that have the potential to give the business in question a competitive edge.

Such processes would generally command a high cost, volume or value. For the optimal
results of benchmarking to be reaped, the inputs and outputs need to be redefined; the
activities chosen should be measurable and thereby easily comparable, and thus the
benchmarking metrics needs to be arrived at.

Prior to engaging in the benchmarking process, the total process flow needs to be given
due consideration. For instance, improving one core competency at the detriment to
another proves to be of little use.

Therefore, many choose to document such processes in detail (a process flow chart is
deemed to be ideal for this purpose), so that omissions and errors are minimized; thus
enabling the company to obtain a clearer idea of its strategic goals, its primary business
processes, customer expectations and critical success factors.

An honest appraisal of the company's strengths, weaknesses and problem areas would
prove to be of immense use when fine-tuning such a process.
The next step in the planning process would be for the company to choose an appropriate
benchmark against which their performance can be measured.

The benchmark can be a single entity or a collective group of companies, which operate
at optimal efficiency.

As stated before, if such a company operates in a similar environment or if it adopts a

comparable strategic approach to reach their goals, its relevance would, indeed, be
greater.

Measures and practices used in such companies should be identified, so that business
process alternatives can be examined.

Also, it is always prudent for a company to ascertain its objectives, prior to

commencement of the benchmarking process.

The methodology adopted and the way in which output is documented should be given
due consideration too. On such instances, a capable team should be found in order to
carry out the benchmarking process, with a leader or leaders being duly appointed, so as
to ensure the smooth, timely implementation of the project.

(2) Collection of Information

Information can be broadly classified under the sub texts of primary data and secondary
data.

To clarify further, here, primary data refers to collection of data directly from the
benchmarked company/companies itself, while secondary data refers to information
garnered from the press, publications or websites.

Exploratory research, market research, quantitative research, informal conversations,

interviews and questionnaires, are still, some of the most popular methods of collecting
information.

When engaging in primary research, the company that is due to undertake the
benchmarking process needs to redefine its data collection methodology.
Drafting a questionnaire or a standardized interview format, carrying out primary
research via the telephone, e-mail or in face-to-face interviews, making on-site
observations, and documenting such data in a systematic manner is vital, if the
benchmarking process is to be a success.

(3) Analysis of Data

Once sufficient data is collected, the proper analysis of such information is of foremost
importance.

Data analysis, data presentation (preferably in graphical format, for easy reference),
results projection, classifying the performance gaps in processes, and identifying the root
cause that leads to the creation of such gaps (commonly referred to as enablers), need to
be then carried out.

(4) Implementation

This is the stage in the benchmarking process where it becomes mandatory to walk the
talk. This generally means that far-reaching changes need to be made, so that the
performance gap between the ideal and the actual is narrowed and eliminated wherever
possible.

A formal action plan that promotes change should ideally be formulated keeping the
organization's culture in mind, so that the resistance that usually accompanies change is
minimized.

Ensuring that the management and staff are fully committed to the process and that
sufficient resources are in place to meet facilitate the necessary improvements would be
critical in making the benchmarking process, a success.

(5) Monitoring

As with most projects, in order to reap the maximum benefits of the benchmarking
process, a systematic evaluation should be carried out on a regular basis.

Assimilating the required information, evaluating the progress made, re-iterating the
impact of the changes and making any necessary adjustments, are all part of the
monitoring process.
Definition &history
TQM Definition

A core definition of total quality management (TQM) describes a

management approach to long-term success through customer satisfaction.

TQM history

Total quality management (TQM) is a term that originated in the 1950s and
is today used mainly in Japan.

TQM, in the form of statistical quality control, was invented by Walter A.

Shewhart. It was initially implemented at Western Electric Company, in the
form developed by Joseph Juran who had worked there with the method.
TQM was demonstrated on a grand scale by Japanese industry through the
intervention of W

BENCHMARKING Definition

Benchmarking is a process where you measure company’s success against

other similar companies to discover if there is a gap in performance that can
be closed by improving your performance.

BENCHMARKING history

The beginning of modern benchmarking

In the early 1900's, benchmarking was still a process of business owners

studying their competitors' techniques. However, as mechanical engineering
advanced, so did the style of benchmarking. In the mid-1900's, businesses
began undertaking reverse
Reverse engineering is the study of an actual product by disassembling it to
determine how it was created.

TQM Principles:

1. Customer focus: TQM is focused on meeting the needs and

expectations of customers. This involves understanding customer

requirements, gathering feedback, and continuously improving
products and services to meet customer needs.
2. Continuous improvement: TQM is a continuous process of
improvement that involves identifying areas for improvement, making
changes, and monitoring the results. It involves a commitment to
ongoing learning and development.
3. Employee involvement: TQM involves all employees in the
organization, from top-level management to frontline workers. It
recognizes that employees are a valuable source of knowledge and
expertise and encourages their participation in the improvement
process.
4. Process approach: TQM focuses on improving processes rather than

just correcting problems. It involves identifying and analyzing

processes to identify inefficiencies and opportunities for
improvement.
5. Data-driven decision making: TQM relies on data and facts to make

decisions. It involves collecting and analyzing data to monitor

performance, identify trends, and make informed decisions.
6. Leadership commitment: TQM requires the commitment of top-level

management to create a culture of quality and continuous

 improvement. Leaders must provide resources, support, and guidance
to ensure the success of TQM initiatives.
7. Supplier partnerships: TQM involves working closely with suppliers

to ensure that they meet the organization's quality standards. It

recognizes that suppliers are an important part of the supply chain and
that their quality can have a significant impact on the quality of the
final product or service.

Benchmarking Principles:

1. Identification of objectives: The first step in benchmarking is to identify

the specific objectives that the organization hopes to achieve through the
benchmarking process. These objectives should be specific, measurable,
achievable, relevant, and time-bound.
2. Selection of benchmarking partners: The selection of benchmarking

partners is critical to the success of the process. Partners should be

selected based on their relevance to the objectives of the benchmarking
process, their willingness to participate, and their willingness to share
information.
3. Data collection and analysis: Data collection and analysis are critical to

the success of benchmarking. Data should be collected from a variety of

sources, including internal and external sources, and should be analyzed
to identify best practices and opportunities for improvement.
4. Implementation of best practices: Once the best practices have been

identified, they should be implemented in the organization. This may

involve changes to processes, policies, or procedures.
5. Monitoring and evaluation: The implementation of best practices should

be monitored and evaluated to ensure that they are effective. This may
 involve the collection of additional data, the use of performance metrics,
or the implementation of feedback mechanisms.
6. Continuous improvement: Benchmarking is a continuous process of

improvement that involves ongoing learning and development. The

organization should be committed to continuous improvement and should
be willing to make changes as needed to improve performance.
a. These principles are critical to the success of benchmarking and
can be applied in any organization, regardless of size or industry.
The key is to have a systematic approach to benchmarking that
involves collecting and analyzing data, identifying best practices,
and implementing improvements.

Methodologies:

TQM Methodologies

TQM uses methodologies such as the Plan-Do-Check-Act (PDCA)

Cycle. This is a four-step cycle used for continuous improvement and
problem-solving. It involves planning, implementing, validating results,
and acting on the basis of those results to make further improvements.
Like Six Sigma, it is a data-driven approach that seeks to identify and
eliminate defects in a process or product. Lean Management and Lean
management is a management philosophy and approach that aims to
maximize value for customers while minimizing waste and inefficiencies
in an organization's operations. and Kaizen to improve processes,
products, and services through the use of data and metrics. Total
Productive Maintenance (TPM): This is a methodology that focuses on
improving the reliability and availability of equipment and machinery by
involving all personnel in maintenance activities.
 Quality Function Deployment (QFD): This is a methodology used to
translate customer needs and expectations into specific product or service
requirements. It involves a structured process of identifying customer
needs, prioritizing them, and aligning them with the capabilities of the
organization

Benchmarking Methodologies:

1) Competitive benchmarking: Competitive benchmarking involves

comparing the performance of the organization with that of its
competitors. This can be used to identify areas where the organization
is lagging behind its competitors and to develop strategies to improve
performance.
2) Functional benchmarking: Functional benchmarking involves
comparing the performance of a particular function or department
within the organization with that of a similar function or department
in another organization. This can be used to identify best practices and
to improve performance within the organization.
3) Internal benchmarking: Internal benchmarking involves comparing
the performance of different departments or units within the
organization. This can be used to identify best practices and to
improve performance across the organization.
4) External benchmarking: External benchmarking involves comparing
the performance of the organization with that of other organizations in
the same industry or sector. This can be used to identify best practices
and to set performance standards.
5) Process benchmarking: Process benchmarking involves comparing the
performance of a specific process within the organization with that of
 a similar process in another organization. This can be used to identify
best practices and to improve the efficiency and effectiveness of the
process.
6) Strategic benchmarking: Strategic benchmarking involves comparing
the overall strategy of the organization with that of another
organization. This can be used to identify best practices and to
develop strategies for improvement.

1. Flowcharts: Flowcharts are diagrams that show the flow of a process and

are used to identify inefficiencies, bottlenecks, and opportunities for

improvement.
2. Checklists: Checklists are used to ensure that all necessary steps in a

process are completed and to reduce the risk of errors.

3. Statistical Process Control (SPC): SPC is a tool that uses statistical

methods to monitor and control a process. It involves collecting data on a

process and using statistical methods to identify patterns and trends, and
to detect variations that may indicate a problem.
4. Pareto Analysis: Pareto Analysis is a tool that is used to identify the most

important problems or issues in a process. It involves analyzing data to

determine the frequency and impact of different problems, and then
focusing on the most significant ones.
5. Root Cause Analysis (RCA): RCA is a problem-solving technique that is

used to identify the underlying causes of a problem or issue. It involves

asking "why" questions to identify the root cause of a problem and to
develop solutions to prevent it from recurring.
6. Kaizen Events: Kaizen Events are focused improvement activities that

involve a team of employees working together to improve a specific

process or area of the organization.
7. 5S: 5S is a workplace organization and visual management tool that

involves sorting, simplifying, sweeping, standardizing, and sustaining the

workplace. It is used to create a clean, organized, and efficient workplace
that supports continuous improvement.

Benchmarking Tools:

1. Surveys: Surveys can be used to collect data from customers,

employees, or other stakeholders to identify areas where the

organization can improve. Surveys can be quantitative or qualitative
and can be conducted online, by mail, or in person.
2. Site visits: Site visits involve visiting other organizations to observe

their processes and operations. This can be used to identify best

practices and to gain insights into how other organizations are
achieving their goals.
3. Performance metrics: Performance metrics can be used to measure the

performance of the organization and compare it with that of other

organizations. These could include metrics such as quality, speed,
efficiency, or customer satisfaction.
4. Process maps: Process maps are diagrams that show the steps in a

process and can be used to identify inefficiencies and opportunities for

improvement.
5. Best practice analysis: Best practice analysis involves studying the

practices of other organizations that have achieved success in a

 particular area. This can be used to identify best practices and to
develop strategies for improvement.

Expert interviews: Expert interviews involve talking to experts in a

particular field to gain insights and information that can be used to improve
performance.

ADVANTAGES AND DISADVANTAGES OF benchmarking AND total

quality management

Advantages of Total Quality Management:

1. Improved quality of products and services: TQM can improve the quality

of products and services by focusing on continuous improvement and

meeting customer needs and expectations.
2. Increased efficiency: TQM can increase efficiency by identifying and

eliminating wasteful processes and improving the flow of work.

3. Better employee engagement: TQM involves all employees in the

organization and encourages their participation in the improvement

process, which can lead to better employee engagement and satisfaction.
4. Better customer focus: TQM is focused on meeting the needs and

expectations of customers, which can lead to improved customer

satisfaction and loyalty.
Disadvantages of Total Quality Management:
1. Difficulty in implementation: TQM can be difficult to implement,

particularly if it involves significant changes to organizational culture or

processes.
2. Resistance to change: TQM can be met with resistance from employees

who may be resistant to change or feel threatened by the process.

3. Time-consuming: TQM can be a time-consuming process, particularly if

it involves data collection and analysis.

4. Cost: TQM can be expensive, particularly if it involves the use of

external consultants or the implementation of new technologies.

Advantages of Benchmarking:
1. Identification of best practices: Benchmarking allows organizations to

identify best practices used by industry leaders or competitors and to

adopt them in their own processes or products.
2. Improvement in performance: Benchmarking helps organizations to

improve their performance by identifying areas where they are lagging

behind their competitors and developing strategies to improve.
3. Increased competitiveness: Benchmarking can increase the
competitiveness of an organization by allowing it to improve its products,
services, and processes in comparison to its competitors.
4. Better focus on customers: Benchmarking helps organizations to better

understand customer needs and expectations, which can lead to the

development of products and services that are better aligned with
customer requirements.
Disadvantages of Benchmarking:
1. Cost: Benchmarking can be expensive, particularly if it involves travel or

the use of external consultants.

2. Time-consuming: Benchmarking can be a time-consuming process,

particularly if it involves data collection and analysis.

3. Difficulty in finding comparable organizations: It can be difficult to find

comparable organizations for benchmarking, particularly if the industry

or sector is highly specialized.
4. Resistance to change: Benchmarking can be met with resistance from

employees who may be resistant to change or feel threatened by the

process

Are total quality management and benchmarking two words for the same
meaning?
Total Quality Management (TQM) and Benchmarking are not two words for
one meaning, rather they are two distinct approaches to improving
organizational performance. While they share some similarities, they have
different areas of focus and methodologies.

Benchmarking is the process of comparing an organization's performance

with the best practices of other organizations, while TQM is a management
philosophy that focuses on continuous improvement of all organizational
processes, products, and services. Benchmarking can be used as a tool
within TQM to identify best practices and areas for improvement.

What is the similarity and difference between seat marking and total quality
management
Similarities:
Benchmarking and total quality management aim to improve
organizational performance.
 Both approaches involve using data and metrics to identify areas for
improvement and measure progress.
Benchmarking and TQM require strong leadership commitment,
employee engagement and a culture of continuous improvement to
achieve success.
Variations:
Benchmarking is the process of comparing an organization's
performance with the best practices of other organizations, while total
quality management is a management philosophy that focuses on
continuous improvement of all organizational processes, products, and
services.
Benchmarking is an external process that involves searching for best
practices outside the organization, while TQM is an internal process
that involves improving processes, products, and services within the
organization.
Benchmarking is a one-time or periodic process, while TQM is an
ongoing process that is embedded in the organization's culture and
operations.
Benchmarking can focus on specific areas of the organization, while
TQM is a holistic approach that includes all areas of the organization.
In short, while benchmarking and TQM share some similarities in terms of
their objectives and use of data and metrics, they differ in their approach and
focus. Benchmarking is an external process that involves comparing an
organization's performance with the best practices of other organizations,
while TQM is an internal process that focuses on continuous improvement
of all organizational processes, products, and services. Both approaches can
be used together to achieve higher levels of quality and performance in
organizations.

Is it possible to apply total quality management and benchmarking together

in one company?

Benchmarking and TQM can both be applied in one company, and they are
compatible with each other. TQM provides a framework for continuous
improvement by involving employees at all levels, using data and metrics to
make decisions, and focusing on customer needs and satisfaction.
Benchmarking provides external best practices to learn from, and can be
used to identify areas for improvement and set performance goals.

Successful implementation of both approaches requires strong leadership,

employee engagement and a culture of continuous improvement. An
organization can use benchmarking to identify best practices, and then use
total quality management to implement those practices and continuously
improve its processes, products, and services.

In conclusion, while benchmarking and TQM are two distinct approaches to

improving organizational performance, they can be used together in a
complementary manner to achieve higher levels of quality, efficiency, and
customer satisfaction.