BENCHMARKING

&
PROCESS IMPROVEMENT

BY

AJAY DESAI

1
Definitions...

 BENCHMARKING IS THE CONTINUOUS,

SYSTEMATIC PROCESS OF ENSURING ONE’S
OUTPUT AND WORK PROCESS AGAINST THE
TOUGHEST COMPETITORS, OR THOSE
COMPANIES RECOGNIZED AS BEST IN AN
INDUSTRY.

COMPARISON OF WORK PROCESSES

BENCHMARKING 2
Definitions...

 BENCHMARKING IS A PROCESS OF
COMPARING COMPANY PERFORMANCE
CONTINUOUSLY AGAINST THOSE
RECOGNIZED AS BEST WITH A VIEW TO
CAUSE IMPROVEMENTS.
IMPROVEMENT AS PURPOSE OF
BENCHMARKING
BENCHMARKING 3
Concept...

BENCHMARKING =

BUSINESS PROCESS QUALITY

MANAGEMENT (BPQM)
+
BUSINESS PROCESS RE ENGINEERING
(BPR)
BENCHMARKING 4
 NEED FOR BENCHMARKING ...

IN TODAY’S COMPETITIVE ENVIRONMENT, IT IS

NOT ENOUGH TO BE DOING WELL BECAUSE
 GLOBALIZATION MEANS COMPETITION
 COMPETITION MEANS CHALLENGES
 CHALLENGES MEANS GLOBAL QUALITY AT
GLOBAL LEVEL
 FOR GLOBAL QUALITY ONE NEEDS
INNOVATION
 INNOVATION MEANS THINK DIFFERENTLY

BENCHMARKING 5
NEED FOR BENCHMARKING CONTD...

THINK DIFFERENTLY MEANS AN

ORGANIZATION SHOULD BE
 GLOBAL AT THE SAME TIME LOCAL
 AUTONOMOUS AT THE SAME TIME TEAM MEMBER
 DIFFERENTIATED AT THE SAME TIME INTEGRATED
 TIGHT AT THE SAME TIME LOOSE
 LONG TERM PLANNING ALONG WITH FLEXIBILITY
YOU MUST HAVE SYSTEM TO MANAGE
DISCONTINUITY

BENCHMARKING 6
 MANAGEMENT TOOLS & TECHNIQUES ...

RECENT STUDY BY AN INTERNATIONAL MANAGEMENT

EXPERT MR. L. BAIN SHOWS THE FOLLOWING
SEQUENCE OF MANAGEMENT TOOLS FOR
BETTERMENT OF BUSINESS.
 MISSION STATEMENT
 CUSTOMER SATISFACTION MEASUREMENT
 BENCHMARKING AND PROCESS IMPROVEMENT
 BPR
 TQM

BENCHMARKING 7
LEVELS OF BENCHMARKING . . .

 INTERNAL BENCHMARKING

 COMPETITIVE BENCHMARKING

 FUNCTIONAL BENCHMARKING

BENCHMARKING 8
 BENEFITS OF BENCHMARKING &
PROCESS IMPROVEMENT ...

EXTENT OF IMPROVEMENT ONE CAN MAKE BY LEARNING

PROCESSES FROM OTHERS

ONE NEED NOT REINVENT THE WHEEL

LESS EFFORTS REQUIRED FOR A QUANTUM IMPROVEMENT

GOALS FOR IMPROVEMENT ARE MORE ACCEPTABLE AS THE

RESULTS ARE ACHIEVABLE AND PROCESS IS PRACTICAL

BENCHMARKING 9
 PREREQUISITE CULTURE FOR
BENCHMARKING ...
ORGANISATION MUST RENOUNCE ITS FEELING OF SELF IMPORTANCE

AND BE PREPARED TO LEARN FROM OTHERS

 IT MAY BE PREPARED TO ACCEPT, ADAPT, AND ADOPT IDEAS FROM

OTHERS WHICH MAY BE TOTALLY NEW FOR ORGANIZATION

 IT MUST BE READY TO SAY GOODBYE TO NIH (NOT INVENTED HERE)

SYNDROME AND ACCEPT SIS (STEAL IT SHAMELESSLY) SYNDROME.

MANAGEMENT MUST BE HONEST TO ADMIT THAT SOME ONE IS BETTER

THAN THEM.

BENCHMARKING 10
 PROCESS IMPROVEMENT...
Definition

 Process : A PROCESS IS A SERIES OF ACTIVITIES OR TASK

PERFORMED TO PRODUCE DESIRED RESULT. THE PROCESS BY
SERIES OF OPERATIONS CONVERTS AVAILABLE INPUTS INTO
DESIRED OUTPUTS. (E.G. RECRUITMENT OF AN EMPLOYEE,
PREPARATION OF FINANCIAL STATEMENT, CONDUCTING AN
INQUIRY )

THE ESSENTIAL FEATURES OF THE PROCESS ARE INPUTS OF

VARIOUS TYPES USED TO PRODUCE AN OUTPUT OR OUTPUTS BY
A SERIES OF VALUE ADDED ACTIVITIES.

BENCHMARKING 11
 PROCESS IMPROVEMENT...
S
U C
P U
P S
L Inputs Output T
I O
E M
R E
S R
S

Improvement: It can be defined as “Better Value Addition.”

Not only doing things rightly, but doing right things rightly
NVA VVA VVA NVA

BENCHMARKING 12
 Process Micro Level ...
QUALITY SYSTEMS AND
PERFORMANCE PROCEDURES
STANDARD

S C
U U
P Consumable S
P Inputs Output T
L O
I M
E E
R R
S S
EQUIPMENT, SKILL &
FACILITY, KNOWLEDGE
FURNITURE ETC.
BENCHMARKING 13
HIERARCHY OF PROCESS ...

CORPORATE MACRO PROCESS

MEGA PROCESSES OR LEVEL ONE PROCESSES
MEGA PROCESSES OR LEVEL TWO PROCESSES
LEVEL THREE PROCESSES
SUB PROCESSES OR LEVEL FOUR / FIVE PROCESSES
MICRO LEVEL PROCESSES
ACTIVITIES
TASKS

BENCHMARKING 14
 APPROPRIATE LEVEL FOR IMPROVEMENTS ...

PROCESS HAS TO BE STARTED AT LEVEL FOUR AND

FIVE AND GO UP.

IT IS VERY DIFFICULT TO START AT THE TOP

FOR THE COMPANY WITH, “SYSTEMS AT PLACE”

MICRO PROCESS LEVELS AND BELOW ARE

GENERALLY TAKEN CARE OF :

BENCHMARKING 15
 BENEFITS OF PROCESS IMPROVEMENT ...

PROCESS IMPROVEMENT METHODOLOGY ADOPTED WITH

SUPPORTIVE CULTURE FROM TOP MANAGEMENT CAN BRING GOOD

RESULTS.

PROCESS IMPROVEMENT WOULD RESULT IN MORE EFFECTIVE

AND MORE ACCEPTABLE TO CHANGING CUSTOMER REQUIREMENT.

IT WOULD RESULT IN IMMENSE BENEFIT DUE TO IMPROVED

PRODUCTIVITY, ENHANCED CUSTOMER SATISFACTION AND

SHORTER CYCLE TIME.

BENCHMARKING 16
PREREQUISITE CULTURE ...

PROCESS ORIENTATION

GOAL CONGRUENCE AMONGST DIFFERENT DEPARTMENTS

AND DIVISIONS

CROSS FUNCTIONAL TEAM WORK

CULTURE OF CO OPERATION AMONG DIFFERENT

DEPARTMENT

BENCHMARKING 17
 SYNERGY BETWEEN TWO TOOLS ...

TWO TOOLS, “BENCHMARKING AND PROCESS

IMPROVEMENT ” NEED EACH OTHER FOR THEIR
EFFECTIVENESS.
FOCUS OF BENCHMARKING SHOULD BE PROCESS AND
WORK PRACTICES. ONCE BENCHMARKED PROCESS IF
UNDERSTOOD, THE IMPROVEMENT IN PRESENT
PROCESSES CAN BE WORKED OUT THE TOOLS ARE
INCOMPLETE WITHOUT ONE ANOTHER AND PRODUCE
EXCELLENT RESULTS IF USE IN COMBINATION.

BENCHMARKING 18
SYNERGY BETWEEN TWO TOOLS ...
 FORD AN AUTOMOBILE GIANT IN ACCOUNTS
PAYABLE DEPARTMENT HAD 400 PEOPLE. THEY
WANTED TO REDUCE IT TO 360 WHEN THEY TIED
UP WITH MAZDA OF JAPAN, THEY REALISED THAT
ONLY 12 PEOPLE WERE WORKING. THEY
IMPROVED THEIR OBJECTIVE TO 400 TO 250 IN
FIRST YEAR, FURTHER TO 60 IN SECOND YEAR
AND ACHIEVED THE SAME.

BENCHMARKING 19
 THE BENCHMARKING PROCESS ...

THERE ARE FOUR PHASES AND TEN STEPS

 PLANNING PHASE STEPS 1 TO 3
 ANALYSIS PHASE STEPS 4 & 5
 INTEGRATION PHASE STEPS 6 & 7
 ACTION PHASE STEPS 8 TO 10

BENCHMARKING 20
 PLANNING PHASE...

THREE STEPS (1 TO 3) INVOLVED ARE

 IDENTIFYING OPPORTUNITY AND PRIORITIZING

 DECIDING BENCHMARKING PARTNER

 STUDYING SUPERIOR PROCESSES

BENCHMARKING 21
 PLANNING PHASE...

STEP 1 : IDENTIFYING OPPORTUNITIES AND PRIORITIZING

THE ACTIVITIES IN THIS STEP MAY INCLUDE IDENTIFICATION OF
 CRITICAL SUCCESS FACTORS OF THE ORGANIZATION
FUNCTIONS WHERE IMPROVEMENTS ARE MOST ESSENTIAL
MEASURES OF SUCCESS IN THE FUNCTION
PROCESSES THAT IMPACT THE IDENTIFIED MEASURES
PROCESSES WHERE THE BENEFITS ARE LIKELY TO BE HIGH

BENCHMARKING 22
 PLANNING PHASE...

STEP 2 : DECIDING THE BENCHMARKING PARTNER

DECIDING THE LEVEL OF BENCHMARKING
CREATING THE SHORT LIST OF PARTNERS
COLLECTING THE INFORMATION ABOUT POSSIBLE
PARTNERS
SELECTING THE PARTNERS

BENCHMARKING 23
 PLANNING PHASE...

STEP 3 : STUDDING THE SUPERIOR PROCESSES

DATA COLLECTION
PLANNING A SITE VISIT
CONDUCTING THE VISIT
PREPARING THE SITE VISIT REPORT

BENCHMARKING 24
 Analysis phase...

TWO STEPS (4TH & 5TH) INVOLVED ARE

 FINDING REASONS AND DEVISING IMPROVED PROCESS

 SETTING GOALS FOR IMPROVED PROCESS

BENCHMARKING 25
 Analysis phase...

STEP 4 : FINDING REASONS AND DEVISING IMPROVED

PROCESSES
ANALYSIS OF PERFORMANCE GAPS
COMPARISON OF PROCESS DEFINITION DOCUMENTS
COMPARISON OF FLOW CHARTS
ANALYSIS OF WORK PRACTICES
DEVELOPING A BETTER PROCESS
ADAPTING SUPERIOR PRACTICES

BENCHMARKING 26
ANALYSIS PHASE...

STEP 5 : SETTING GOALS FOR IMPROVED PROCESSES

TESTING THE REVISED PROCESS
NOTING THE IMPROVEMENT ACHIEVED
CONVERTING THE GAINS OF FINANCIAL PARAMETERS
PREPARING A COST BENEFIT ANALYSIS
PROPOSING REVISED PERFORMANCE GOALS

BENCHMARKING 27
 INTEGRATION PHASE...

TWO STEPS (6TH & 7TH) INVOLVED ARE

 COMMUNICATING FINDINGS AND SECURING

COMMITMENTS

 REVISING PERFORMANCE GOALS

BENCHMARKING 28
INTEGRATION PHASE ...

STEP 6 : COMMUNICATING FINDINGS AND SECURING COMMITMENT

DECIDING ON WHO NEEDS TO BE INFORMED AND WHY
DECIDING THE BEST MODE OF COMMUNICATION
PREPARING COMMUNICATION PACKAGES
ENSURING THAT THE PROPOSALS ARE UNDERSTOOD
SECURING APPROVALS / ACCEPTANCE

BENCHMARKING 29
INTEGRATION PHASE ...

STEP 7 : REVISING THE PERFORMANCE GOALS

REVISING THE GOALS SET IN STEP 5, IF NECESSARY

SET NEW OPERATIONAL GOALS

CONSIDER CHARGES IN RELATED PROCESSES

SECURE COMMITMENT TO REVISED GOALS

BENCHMARKING 30
 ACTION PHASE...

THREE STEPS (8 TO 10) INVOLVED ARE

 DEVELOPING AN ACTION PLAN FOR IMPLEMENTATION

 IMPLEMENTING ACTION PLAN AND MONITORING THE PROCESS

 KEEPING THE PROCESS CONTINUOUS

BENCHMARKING 31
 ACTION PHASE...

STEP 8 : DEVELOPING AN ACTION PLAN FOR IMPLEMENTATION

LISTING ACTIONS NECESSARY TO GIVE EFFECT TO THE NEW

PROCESS

ARRANGING THEM IN SEQUENCE

ASSIGNING RESPONSIBILITY FOR EACH ACTION

GETTING COMMITMENT FROM TEAM MEMBERS AND THEIR

SENIORS
BENCHMARKING 32
 ACTION PHASE...

STEP 9 : IMPLEMENTING THE ACTION PLAN AND

MONITORING PROGRESS

CARRYING OUT ASSIGNED TASKS

 MONITORING PROGRESS

BENCHMARKING 33
 Action phase...

STEP 10 : KEEPING THE PROCESS CONTINUOUS

ENSURING PERMANENT IMPROVEMENT

REVIEWING COMPETITIVE POSITIONS

PERIODICALLY

STARTING NEW BENCHMARKING PROJECTS

BENCHMARKING 34
 PROCESS IMPROVEMENT STEPS...

 DOCUMENTING THE PROCESS

 IDENTIFYING CUSTOMER REQUIREMENT
 ANALYZING THE PROCESS
 REVISING THE PROCESS
 DEVELOPING AN ACTION PLAN
 VALIDATING NEW PROCESS
 KEEPING THE IMPROVEMENT CONTINUOUS

BENCHMARKING 35
 Documentation activities...

 FLOW CHARTING THE CORPORATE MACRO PROCESS

 FLOW CHARTING LEVEL ONE PROCESS
 FLOW CHARTING THE SELECTED PROCESS
 PREPARING PROCESS DOCUMENT
 INTERVIEWING FOR PROCESS DOCUMENTS
 SELECTING A PROCESS FOR IMPROVEMENT
 LOOKING AN EXAMPLE OF PROCESS DOCUMENTATION
DESCRIPTION

BENCHMARKING 36
TRADITIONAL FUNCTIONAL ORGANIZATION ...

Management Board
R&D Material Manufng. Sales Finance
Marketing
s

FUNCTIONAL FOCUS

Market No of new Price Mfg. Cost Exceeding Timely

Inventory variances forecast reports
Share products

BENCHMARKING 37
Cross functional approach
for managing processes ...

Management Board
Company
Marketing R & D Materials MFG. Sales finance focus

Development of new products

Customer
Product Generation Satisfaction

Distribution

Customer services

BENCHMARKING 38
 Corporate Macro process . . .

New Product Franchise

Development Development
External
External
Business Customer
Suppliers
Planning

Product Revenue
Generation Generation

Human Supporting Accounting

Material/ Product Resource Processes
Management
Orders
Information BENCHMARKING 39
 Level one Process
New Product
(Product generation) . . .
Development
Scheduling

External
Suppliers Material Conversion Packaging
Procurement Assembly Revenue
Generation

Material Quality Product

Storage Control storage

Human Supporting Accounting

Material/ Product Resource Processes
Management
Orders
Information BENCHMARKING 40
 Process Flowchart
Framework . . .

Time Suppliers Input A B C Output Customer

0 2

5 5 5
7 5
10 7

12
3
14
16 5

Total Time 14 13 5
BENCHMARKING 41
Form for Process Document . . .

Process
Process Mission
Process Owner
Start of Process
End of process
Other task Included

BENCHMARKING 42
 QUESTIONNAIRE FOR AN INTERVIEW

 TO STRUCTURE AN INTERVIEW IT IS ADVISABLE TO START WITH

A PREPARED QUESTIONNAIRE. IT HELPS TAKING NOTES DURING
THE INTERVIEW.
 IT SHOULD BE UNDERSTOOD THAT THE QUESTIONNAIRE IS A
LIST OF QUESTIONS TO HELP, BUT NOT TO LIMIT THE
INTERVIEW.
 SUPPLEMENTARY QUESTIONS CAN AND SHOULD BE ASKED TO
UNDERSTAND THE ANSWERS TO THE LISTED QUESTIONS.
ATTEMPTS MUST BE MADE TO GET DESCRIPTIVE RESPONSES
RATHER THAN YES/ NO OR TRUE/ FALSE OPTIONS.
 A TYPICAL QUESTIONNAIRE MAY HAVE FOLLOWING
QUESTIONS.

BENCHMARKING 43
 QUESTIONNAIRE FOR AN INTERVIEW

 WHAT TASK DO YOU PERFORM ?

 WHAT DO YOU DO NEXT ?
 HOW MUCH TIME DOES THE TASK TAKE ?
 HOW OFTEN IS IT PERFORMED ?
 WHAT ARE THE REQUIRED INPUTS ?
 WHAT ARE THE SPECIFIED REQUIREMENT FOR THE INPUTS ?
 WHO SUPPLIES THE INPUT ?
 DOES THE SUPPLIER MEETS THE REQUIREMENT CONSISTENTLY ?
 HOW IMPORTANT IS THE TASK ?

BENCHMARKING 44
 QUESTIONNAIRE FOR AN INTERVIEW

 HOW DOES IT RESULTS IN THE BENEFIT TO THE ULTIMATE CUSTOMER

?
 WHAT IS THE OUT PUT AND WHO IS THE IMMEDIATE CUSTOMER ?
 DO YOU KNOW THE CUSTOMER REQUIREMENT ?
 DO YOU FACE ANY PROBLEMS IN MEETING THE REQUIREMENTS ?
 WHAT SUPPORT DO YOU NEED TO PERFORM YOUR TASK?
 WHAT MEASUREMENTS DO YOU HAVE TO ENSURE CONFORMANCE ?
 WHAT ARE CONTROL SYSTEMS USED BY YOU ?
 WHAT DO YOU NEED TO DO THE JOB BETTER ?
 WHAT CHANGES DO YOU SUGGEST IN THE PROCESS ?
 DO YOU HAVE ANY OTHER SUGGESTION OR RECOMMENDATION ?

BENCHMARKING 45
 Process Document . . .
Material Procurement

Process Material Procurement

Process Mission To procure raw & packing material for the
company at optimum price as per schedule
provided by planning & meeting requirements
specified by research
Process Owner Mr. XYZ G.M. (Purchase)
Start of Process Receipt of material requisition from planning
department
End of process Payment for the supplies received
Other task Inviting & comparing quotations, negotiation
Included terms, preparing purchase order, distributing
copies of PO, receipt of material, preparation of
MR notes, testing of material, passing the bill,
sending cheque to supplier

BENCHMARKING 46
 Material Procurement Process
Time
Supplier Input Purchasing Stores Quality Accounts
(Days)
15
0 Plg dept Mat. Inviting
15 (INT) Req. Quotation
15-17 Comparing Negotiating
17 15
Quotation terms
18-20 10 Preparing
21 PO 2 2 2
51 2 Getting PO Record Record Record
52 External Signed PO details PO details PO details
53-60 Supplier
Mailing Receipt Record 2 Record
62-64 materials
PO MRN MRN
81 Receipt of 5 15
MRN Testing Passing
91 cheque
Preparation material bills
Record Sending 15
5 QA Act. cheque
5
 Identifying customer requirements ...

THE ACTIVITIES IN THIS STEP CAN BE DIVIDED IN TO

FIVE MAIN GROUPS
 IDENTIFYING CUSTOMERS
UNDERSTANDING THE VOICE OF CUSTOMER
IDENTIFYING REQUIREMENTS
RANKING REQUIREMENTS
PUTTING MEASUREMENTS IN PLACE

BENCHMARKING 48
 IDENTIFYING CUSTOMER ...

 INTERNAL CUSTOMERS

 EXTERNAL CUSTOMER

 MANAGEMENT

 REGULATORY AUTHORITIES
BENCHMARKING 49
 IDENTIFYING CUSTOMER VOICE...
HAVING IDENTIFIED THE CUSTOMERS, ONE NOW NEEDS TO KNOW WHOSE VOICE IS
DECISIVE.

FOR INSTANT, IF THE CUSTOMER IS THE HOSPITAL, THE VOICE OF THE CUSTOMER
COULD BE VOICE OF THE DOCTOR / SURGEON, THE NURSE, THE PATIENT, THE
INDENTER OR THE PURCHASER.

IN THE CASE OF INTERNAL CUSTOMER TOO THERE MAY BE MORE THAN ONE VOICE OF
THE CUSTOMER.

FOR INSTANT IF THE INTERNAL CUSTOMER IS THE WAREHOUSE, THE MANGER, THE
CLERK OR THE MATERIAL HANDLER CAN BE THE VOICE OF THE CUSTOMER. AS FAR AS
POSSIBLE, ONE TRIES TO MEET THE REQUIREMENTS OF ALL.

STILL IT IS NECESSARY TO UNDERSTAND THE WEIGHTAGE TO BE GIVEN TO THE

DIFFERENT PEOPLE SO THAT ONE UNDERSTANDS THE PRIORITIES CLEARLY .

BENCHMARKING 50
 IDENTIFYING REQUIREMENTS...

ONCE THE REQUIREMENTS ARE IDENTIFIED, ONE TRIES TO UNDERSTAND THEM AS THE
CUSTOMER UNDERSTANDS THEM AND THEN CHECK IF THEY ARE SMART.
AN ACRONYM FOR SPECIFIC, MEASURABLE, AGREED, REASONABLE AND TIME BOUND.
IF THEY ARE NOT SMART, ONE HAS TO DISCUSS THE MATTER WITH THE CUSTOMER AND
ENSURE THAT THEY BECOME SMART.
IF SOME REQUIREMENTS ARE NOT ATTAINABLE AS THE PROCESS IS NOT CAPABLE
ENOUGH, ONE SHOULD TRY TO UNDERSTAND THEIR IMPORTANCE TO THE CUSTOMER.
IF THEY ARE NOT VITAL, THEY CAN BE NEGOTIATED TO MATCH WITH THE PROCESS
CAPABILITIES. IF HOWEVER, THEY ARE VITAL AND NOT NEGOTIABLE ONE HAS TO
IMPROVE THE PROCESS CAPABILITIES. THIS INFORMATION WILL BE VERY USEFUL FOR
THE ANALYSIS OF THE PROCESS.

BENCHMARKING 51
RANKING OF CUSTOMER
REQUIREMENTS . . .

Process
Output
Customer
Requirement Weightage (Points) Overall weightage (%)

BENCHMARKING 52
 MEASUREMENT FEEDBACK
& CONTROL SYSTEM . . .

Process
Output
Rank requirement Specification Measurement Feedback Control
1
2
3
4

BENCHMARKING 53
 ANALYZING THE PROCESS...

THE ACTIVITIES IN THIS STEP ARE

 COMPARING THE “AS IS” WITH THE “SHOULD BE” PROCESS
 ANALYZING THE PROCESS FLOW
 IDENTIFYING THE ‘TRANSFER DISCONNECTS’
 ANALYZING THE TASKS
 LISTING OPPORTUNITIES FOR IMPROVEMENTS
 COMPARING PROCESS PERFORMANCE WITH THE EXPECTATIONS
 FINDING THE ROOT CAUSES FOR THE PROBLEMS.

BENCHMARKING 54
 REVISING THE PROCESS...

THE ACTIVITIES IN THIS STEP ARE

 FINDING THE SOLUTIONS OF THE PROBLEMS IDENTIFIED EARLIER

 CONSIDERING ADAPTATION OF BENCHMARKING PARTNER’S PROCESS

THINKING OF THE INNOVATIVE WAYS FOR IMPROVING THE PROCESS

DEVELOPING THE REVISED PROCESS

TESTING THE REVISED PROCESS

BENCHMARKING 55
 SUMMERY...
IN THE PREVIOUS SLIDE OF DEVISING A REVISED PROCESS, WE HAVE
SEEN ONE MAKES USE OF THE RESULTS OF THE ANALYSIS OF THE
PROCESS TO DEVELOP BETTER ONE.
THE ANALYSIS OF THE PROCESS WOULD HAVE REVEALED PROBLEMS
WITH THE EXISTING PROCESS.
THE FIRST TASK IS TO SOLVE THOSE PROBLEMS. THE TEAM WOULD
HAVE STUDIED THE SUPERIOR PROCESS OF THE BENCHMARKED
PARTNER.

BENCHMARKING 56
SUMMERY...
ONE ADAPTS THE FEATURES OF THE BENCHMARKED
PROCESS THAT CAN HELP ONE TO IMPROVE HIS OWN
PROCESS.
ONE IS NOT RESTRICTED TO THESE TWO ASPECTS OR
IDEAS TO DEVELOP A BETTER PROCESS.
THE MEMBERS OF THE TEAM SHOULD USE THEIR
CREATIVITY AND IMAGINATION TO FIND NEW WAYS TO
IMPROVE THE PROCESS.
WE THEN SAW AS AN EXAMPLE, HOW MATERIAL
PROCUREMENT PROCESS CAN BE IMPROVED.

BENCHMARKING 57
 DEVELOPING AN ACTION PLAN...

THE ACTIVITIES IN THIS STEP ARE

 PREPARATION OF THE LIST OF CHANGES
 PRIORITIZING THE IMPLEMENTATION OF CHANGES
PREPARATION OF AN IMPLEMENTATION PLAN
ANTICIPATING BARRIERS TO IMPLEMENTATION
PLANNING TO OVERCOME BARRIERS
GETTING THE PLAN APPROVED AND ACCEPTED

BENCHMARKING 58
 SUMMERY...

IN THE PREVIOUS SLIDE WE SAW THE DEVELOPMENT OF

ACTION PLAN FOR THE IMPLEMENTATION OF THE
PROPOSED REVISED PROCESS.
THE STEP STARTED WITH THE LISTING OF ALL THE
CHANGES TO THE EXISTING PROCESS THAT ARE
PROPOSED AND THE ELEMENTS AFFECTED BY THE
CHANGES.
IT INCLUDED PRIORITIZING OF THE CHANGES BASED ON
URGENCY, IMPACT AND EASE OF IMPLEMENTATION.

BENCHMARKING 59
SUMMERY...
THE ACTIVITY IS TO PREPARE A TIME BOUND
IMPLEMENTATION PLAN WITH THE RESPONSIBILITY FOR
EACH CHANGE ASSIGNED TO AN INDIVIDUAL.
WE SAW A TOOL GANTT CHART FOR DOCUMENTING AND
MONITORING THE IMPLEMENTATION PLAN.
WE THAN SAW THE NEED TO ANTICIPATE THE BARRIERS TO
THE IMPLEMENTATION OF THE PLAN.
IT IS ESSENTIAL TO PREPARE A PLAN FOR REMOVING THE
BARRIERS AND THEN GETTING THE PLAN APPROVED BY
THE MANAGEMENT AND ACCEPTED BY ALL WHO WILL BE
IMPACTED BY THE PLAN.

BENCHMARKING 60
 VALIDATING THE NEW PROCESS...

THE ACTIVITIES IN THIS STEP ARE

 PILOTING THE CHANGES
 EVALUATING THE SUCCESS OF THE NEW PROCESS
MONITORING THE PERFORMANCE
DOCUMENTING THE CHANGES
ENSURING INSTITUTIONALIZATION OF NEW PROCESS
PREPARING THE TERMINAL REPORT

BENCHMARKING 61
 SUMMERY...

IN THE PREVIOUS SLIDE ON VALIDATION OF THE REVISED

PROCESS, WE STARTED WITH THE PILOTING THE
CHANGES IN THE PROCESS.
WE THEN SAW THE NEED TO EVALUATE THE RESULTS OF
THE PROCESS IMPROVEMENT PROJECT AGAINST THE
OBJECTIVES AND THE PROJECTED IMPROVEMENT.
ONCE THE NEW PROCESS IS PUT IN PLACE, IT NEEDS TO
BE MONITORED FOR SOME TIME.

BENCHMARKING 62
SUMMERY...

TO ENSURE THAT EVERYONE CONNECTED WITH THE

PROCESS FULLY UNDERSTANDS AND FOLLOWS THE NEW
PROCESS, ALL RELEVANT DOCUMENTS LIKE SOPS,
SPECIFICATION, PROCEDURES AND WORK INSTRUCTIONS
NEED TO BE REVIEWED AND REVISED AS NECESSARY TO
BE IN LINE WITH THE NEW PROCESS.
NEXT COMES INSTITUTIONALIZING THE PROCESS TO AN
EXTENT THAT EVERYONE INSTINCTIVELY FOLLOWS THE
SAME. FINALLY WE SAW THE NEED OF PREPARING THE
TERMINAL REPORT OF THE PROJECT TO RECORD THE
SUCCESS, FAILURE AND FUTURE COURSE OF ACTION.

BENCHMARKING 63
 KEEPING THE IMPROVEMENT CONTINUOUS...

THE ACTIVITIES IN THIS STEP ARE

 REWARD AND RECOGNITION

 PERIODIC PROCESS REVIEW

START OF NEW PROJECT (S)

BENCHMARKING 64
 SUMMERY...
IN THE PREVIOUS SLIDE WE SAW THE NEED TO KEEP THE IMPROVEMENT
CONTINUOUS BY STARTING NEW PROJECTS WHEN A PROJECT IS
COMPLETED.
THE ACTIVITIES IN THIS FINAL STEP INCLUDE RECOGNITION OF THE
CONTRIBUTION OF THE TEAMS AND INDIVIDUALS TOWARDS THE SUCCESS OF
THE PROJECT AND THE IMPROVEMENTS ACHIEVED.
A CELEBRATION OF SUCCESS AND APPROPRIATE RECOGNITION WILL
ACCELERATE THE SPEED OF IMPROVEMENT.
WE THEN SAW THE NEED FOR SETTING UP A SYSTEM OF PERIODIC REVIEWS
OF ALL PROCESSES INCLUDING THE ONE IMPROVED IN THE RECENT PAST.
FINALLY WE SAW THAT THE COMPLETION OF ONE PROJECT SHOULD SIGNAL
THE START OF NEW PROJECT (S) TO KEEP THE IMPROVEMENT CYCLE
CONTINUOUS.
BENCHMARKING 65
Process Improvement Methodology . . .

Keeping the
improvement
continuous Documenting
the
Validating
Process
new process
Identifying
customer
Developing requirement
action plan
Analyzing
Revising the the process
Process

BENCHMARKING 66
 NEW INTEGRATED TOOL...
THE PROPOSED INTEGRATED TOOL ‘PROCESS IMPROVEMENT WITH
BENCHMARKING’ HAS 11 STEPS AND 61 ACTIVITIES. THE STEPS AND
ACTIVITIES ARE GIVEN HERE.
1. SELECTING THE PROCESS FOR IMPROVEMENT
 FLOW CHARTING CORPORATE MACRO PROCESS AND LEVEL ONE
PROCESS
 IDENTIFYING CRITICAL SUCCESS FACTOR
 IDENTIFYING KEY PROCESSES
 IDENTIFYING OPPORTUNITIES FOR IMPROVEMENT
 DEVELOPING CRITERIA FOR PRIORITIZATION
 PRIORITIZING AND SELECTING THE PROCESS
 SELECTING A PROJECT AND PROVIDING IT WITH A MISSION
BENCHMARKING 67
 NEW INTEGRATED TOOL...

2. DOCUMENTING THE SELECTED PROCESS

 PREPARING PROCESS IDENTIFICATION DOCUMENT
 FLOW CHARTING THE PROCESS

 CONDUCTING TASK INTERVIEWS

3. SELECTING BENCHMARKING PARTNER

 DECIDING THE LEVEL OF BENCHMARKING
 PREPARING SHORT LIST OF CANDIDATES
 COLLECTING BASIC INFORMATION
 DECIDING CRITERIA FOR SELECTION AND WEIGHTAGE
 SELECTING THE PARTNER

BENCHMARKING 68
 NEW INTEGRATED TOOL...

4. IDENTIFYING SUPERIOR PROCESS

 COLLECTING DETAILED INFORMATION
 SELECTING A SITE VISIT TEAM
 PLANNING FOR A SITE VISIT
 CONDUCTING THE SITE VISIT
 PREPARING THE SITE VISIT REPORT

BENCHMARKING 69
 NEW INTEGRATED TOOL...

5. ANALYZING THE PROCESS

 UNDERSTANDING AND RANKING CUSTOMER REQUIREMENTS
 MEASURING PERFORMANCE
 COMPARING PERFORMANCE WITH EXPECTATIONS OR PARTNERS
PERFORMANCE
 COMPARING ACTUAL PROCESS WITH PROCESS DESIGN
 COMPARING PROCESS DOCUMENTS AND FLOWCHARTS
 COMPARING TASKS AND WORK PRACTICES
 IDENTIFYING OPPORTUNITIES FOR PROCESS IMPROVEMENT
 FINDING ROOT CAUSES FOR PROBLEMS

BENCHMARKING 70
 New integrated tool...

6. REVISING THE PROCESS

 DEVISING IMPROVEMENTS IN IDENTIFIED AREAS

 ADAPTING DESIRABLE FEATURES OF PARTNER’S

PROCESS

 DEVELOPING INNOVATIVE APPROACH

 DEVELOPING BETTER PROCESS

 TESTING THE PROPOSED PROCESS

BENCHMARKING 71
 NEW INTEGRATED TOOL...

7. FINALIZING RECOMMENDATIONS

 ESTIMATING EXTENT OF IMPROVEMENT AND SETTING

UP PERFORMANCE GOALS

 LISTING THE CHANGES INVOLVED

 PRIORITIZING THE CHANGES

 ANTICIPATING BARRIERS TO IMPLEMENTATION

 PLANNING TO OVERCOME THE BARRIERS

BENCHMARKING 72
 NEW INTEGRATED TOOL...

8. DEVELOPING AN ACTION PLAN

 LISTING THE ACTIONS NECESSARY FOR IMPLEMENTING

THE CHANGES

 ARRANGING THE ACTIONS IN LOGICAL SEQUENCE

 PREPARING AN IMPLEMENTATION PLAN

 PREPARING THE GANTT CHART FOR MONITORING THE

PLAN

BENCHMARKING 73
 New integrated tool...

9. SECURING APPROVAL AND ACCEPTANCE

 CONVERTING ESTIMATED IMPROVEMENT INTO FINANCIAL GAINS

 PREPARING A COST BENEFIT ANALYSIS

 PREPARING COMMUNICATION PACKAGES

 SECURING MANAGEMENT APPROVAL FOR THE PLAN

 SECURING ACCEPTANCE OF ALL CONCERNED WITH THE PROCESS

 SECURING COMMITMENT, MANDATE AND NECESSARY RESOURCES

BENCHMARKING 74
 New integrated tool...

10. IMPLEMENTING THE PLAN AND

MONITORING PROGRESS
 PILOTING THE CHANGES

 MONITORING THE PROGRESS OF

IMPLEMENTATION

 VALIDATING NEW PROCESS

BENCHMARKING 75
 NEW INTEGRATED TOOL...

11. KEEPING IMPROVEMENT CONTINUOUS

 MONITORING THE PERFORMANCE OF REVISED PROCESS
 EVALUATING THE SUCCESS AND COMPARING WITH COST BENEFIT
ANALYSIS
 REVISING ALL NECESSARY DOCUMENTS AND PERFORMANCE GOALS
 ENSURING INSTITUTIONALIZATION OF THE PROCESS
 PREPARING TERMINAL REPORT ON THE PROJECT
 CELEBRATING SUCCESS, RECOGNIZING AND REWARDING
CONTRIBUTORS
 INSTALLING SYSTEM FOR PERIODIC REVIEW OF PROCESSES
 STARTING NEW PROJECT (S)

BENCHMARKING 76
 NEW INTEGRATED TOOL...

WE HAVE SEEN HOW THE TWO TOOLS COVERED. WE SAW THE STEPS
OF THE TOOLS AND HOW THEY ARE DEPENDENT ON OR RELEVANT
TO THE STEP IN OTHER TOOL. THIS POINTS TO THE NEED OF
INTEGRATING BOTH THE TOOLS. IT WAS SUGGESTED THAT THE
MANAGEMENT SHOULD REALIZE THE NEED FOR INTEGRATION AND
START PROJECTS USING BOTH THE TOOLS.

THE TRAINING IN ONE TOOL NEEDS TO BE COMPLEMENTED WITH A

LITTLE BASIC AWARENESS ABOUT THE OTHER TOOL. FINALLY WE
SAW A NEW INTEGRATED TOOL “PROCESS IMPROVEMENT WITH
BENCHMARKING.”

BENCHMARKING 77
 GLOBAL BENCHMARKING
GE
POLAROID
Strategy & CITICORP
MRRRIL LYNCH Innovation
Diversification Globalization &
Talent & Intellect
Turnaround

RALPH LAUREN MOTORALA

Style & Quality Competitiveness &
HR Management

ITC SONY
Distribution Dominance

ITOCHU
Trading GOLDMAN SACHS
Mega Management

XEROX UNILEVER
Customer Service Management System
& Maturity

Coca Cola P&G

LEVI STRAUSS RHONE POULENC UN
Brand Equity New Product Social Responsibility
Development