Seminar On Benchmarking By V.Suganya(M.B.

A 1st year)

WHAT IS BENCHMARKING?

Benchmarking is the process of determining who is the very best, who sets the standard, and what that standard is.

DEFINITION OF BENCHMARKING:
The process of identifying ,understanding, and adapting outstanding Practices and processes from organizations anywhere in the world to an organization to improve its performance by American Productivity and Quality Centre

EVOLUTION OF BENCHMARKING:
The method may have evolved in the early 1950s, when W. Edward Demingtaught theJapanese the idea of quality control. Other American management innovations followed. The best example is Toyota Motor Corporations following the footsteps of Ford Motor Corporation The term benchmarking emerged when the idea took ground in US during 1980s when Xerox, Ford and Motorola became the pioneers of benchmarking in USA. Robert Campdefines it: Benchmarking is the search for industry best practices that lead to superior performance.

CONCEPT OF BENCHMARKING:

LEVELS OF BENCHMARKING
There are three levels of benchmarking:

1. Internal benchmarking (within the company) 2. Competitive or strategic benchmarking (Industry and competitors) 3. Benchmarking outside the industry.

TYPES OF BENCHMARKING:
Competitive Benchmarking Strategic Benchmarking Functional/ Generic

Internal/ external Process Benchmarking

Product Benchmarking

PROCESS OF BENCHMARKING:
It involves various phases namely PLANNING ANALYSIS INTEGRATION ACTION MATURITY

COSTS INVOLVED IN BENCHMARKING

Visit Costs

Time Costs

Benchmarking Database Costs

SELECTED BENCHMARKING PROCESSES OF SOME COMPANIES:

The Bristol-Myers & Baxter International Seven-Step Benchmarking Process

1. 2. 3. 4. 5. 6.
Determine which function(s) to benchmark; Identify key performance variables to measure; Identify the best-in-class companies; Measure performance of best-in-class companies; Measure your own performance; Specify programs and actions to meet and surpass; 7. Implement and monitor results.

The Motorola Five-Step Benchmarking Process

1. Decide what to benchmark; 2. Find companies to benchmark; 3. Gather data; 4. Analyze data & integrate results into action
plans; 5. Recalibrate & recycle the process.

The Xerox 12-Step Benchmarking Process

Phase 1: Planning 1. Identify what to benchmark; 2. Identify comparative companies; 3. Determine data collection method & collect data. Phase 2: Analysis 4. Determine current performance gap; 5. Project future performance levels. Phase 3: Integration 6. Communicate finding and gain acceptance; 7. Establish functional goals.

The Xerox 12-Step Benchmarking Process

(continued)

Phase 4: Action
8. Develop action plans; 9. Implement specific actions & monitor progress; 10. Recalibrate benchmarks.

Phase 5: Maturity
11. Attain leadership position ; 12. Fully integrate practices into processes.

The AT&T Nine-Step Benchmarking Process

1. 2. 3. 4. 5. 6. 7.
Identify what to benchmark; Develop a benchmarking plan; Choose a data collections method; Collect data; Choose best-in-class companies; Collect data during a site visit; Compare processes, identify gaps, and develop recommendations; 8. Implement recommendations; 9. Recalibrate benchmarks.

BENEFITS ACHIEVED BY THEORGANIZATIONS

THAT HAVE SUCCESSFULLY COMPLETED THEIR BENCHMARKING PROGRAMS.

There are three sets of benefits:

1. Cultural Change

2. Performance Improvement

3. Human Resources

BENCHMARKING MODEL
Phase 1 BENCHMARK
Start 1. Agree On Benchmarking Topic 2. Finalise On Scope; Measures & Definitions 3. Data Collection : Survey 4. Share Strengths
2nd Site Visit (Focus Visit)

Phase 2 BEST PRACTICES

5. Plan for Site Visit

Phase 3 IMPROVEMENT
9. Plan to Adapt Best Practices 10. Implement Best Practices 11. Monitoring Result 12. Standardization 13. Daily Control

6. Data Collection

7. Recommend Improvement

Yes

8. Share Findings

Yes

Continue Existing Project? No New Area

ADVANTAGES OF BENCHMARKING
(1)Benchmarking helps identify the gaps between the organization that is undertaking the benchmarking assessment and best practice. (2)Undertaking benchmarking can lead to improvements being incorporated into processes and systems delivering gains in efficiency and effectiveness (3)Benchmarking can help align improvement activity with strategic goals and objectives (4) Improves organizational quality (5)Leads to lower cost (6)Exposes employees to new ideas and broadens organizations perspective (7) A catalyst for learning and increase employee satisfaction (8)Raise the level of potential performance and sharing of best practices (9)Understanding world-class performance in-depth (10) Encourage and stimulate innovation

PITFALLS OF BENCHMARKING:

Project not aligned with competitive strategy Outcome cannot be adequately measured Scope of project too large Omission secondary but important measures Failure to establish a baseline

XEROX -CASE
The company invented the photocopier in 1959 and maintained a virtual monopoly for many years Xerox became a generic name for all photocopiers By 1981, however, the companies market shrunk to 35% o The company instituted the quality improvement plan, which was later known to the world as Benchmarking The benchmarking process resulted in: Quality problems cut by two-thirds, manufacturing costs cut in half, development task cut by two-thirds, direct labor cut by 50% and corporate staff cut by 35% while increase in volume.

CONCLUSION

If you know neither yourself nor your enemy, you will succumb in every battle. If you know yourself but not the enemy, for every victory gained you will suffer a defeat. If you know yourself and your enemy, you need not fear of a hundred battles. - Sun Tzu

THANK YOU!!!!!!!!!!!!!!!!