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Presentazione benchmarking laura_cafaro

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Benchmarking: compare your business

Benchmarking: compare your business

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  • 1. 3 POINTS:1. About benchmarking2. Focus on benchmarking3. A real case history 209/03/2013
  • 2. 1. ABOUT BENCHMARKINGDefinitionBenchmarking is the process ofcomparing ones businessprocesses or activities toselected best companies wheresimilar processes exist, andcompare the results with onesown 309/03/2013
  • 3. 1. ABOUT BENCHMARKING Benchmarking can be consider one of the eight Principles of Quality Mangement, continual improvement 409/03/2013
  • 4. 1. ABOUT BENCHMARKINGThe history• Cobblers and Benchmarking• Xerox case study 509/03/2013
  • 5. 1. ABOUT BENCHMARKINGAdvantagesBenchmarking helps companies to:• meet the customers requirements• define and hone the company strategy• prevent failure• involve staff at all levels• promote an effective method of problem- solving 609/03/2013
  • 6. 2. FOCUS ON BENCHMARKING Activities generally addressed by benchmarking are: • Calculating the percentage cost impact of an activity on total costs • Assessing impact on quality, costs and time • Identifying strategic processes or functions • Identifying factors that distinguish the company from competitors • Analyzing activities that need improving 709/03/2013
  • 7. 2. FOCUS ON BENCHMARKINGThe process• Plan• Do• Check• Act 809/03/2013
  • 8. 2. FOCUS ON BENCHMARKINGThe process: Plan• Identify what aspects to benchmark• Organize a working group• Train all the employees• Visit the organizations 909/03/2013
  • 9. 2. FOCUS ON BENCHMARKINGThe process: Do• The collection of data and information 1009/03/2013
  • 10. 2. FOCUS ON BENCHMARKINGThe process: Check• Assessing the strengths of competitors and compare the performance• Establishing goals• Integrating the goals into the companys formal planning processes and check their effective improvement in quality 1109/03/2013
  • 11. 2. FOCUS ON BENCHMARKINGThe process: Act• Implement action plans established and assess them periodically• Determine whether the company has attained a superior performance level• Return to the planning stage 1209/03/2013
  • 12. 2. FOCUS ON BENCHMARKINGTypes• Strategic Benchmarking• Competitive Benchmarking• Process Benchmarking• Functional Benchmarking• Internal Benchmarking• External Benchmarking• International Benchmarking 1309/03/2013
  • 13. 3. A CASE HISTORY XeroxIn 1982 David T. Kearns, the CEO of Xerox,discovered that the average manufacturingcost of copiers in Japanese companies was40-50% of that of Xerox. Leadership Through Quality Program 1409/03/2013
  • 14. 3. A CASE HISTORYBenchmarking against Japanese competitors,Xerox found out that it took:• twice to bring a product to market• five times the number of engineers• four times the number of design changes• three times the design cost 1509/03/2013
  • 15. 3. A CASE HISTORYXerox Benchmarking modelPlanning Analysis Integration Action MaturityCOMPETITIVE BENCHMARKING 16FUNCTIONAL BENCHMARKING09/03/2013
  • 16. 3. A CASE HISTORY 1709/03/2013
  • 17. 3. A CASE HISTORYThe analysis and the study of the collected dataled Xerox to improve its internal function:• Supplier Management System• Marketing Management• Quality Policy 1809/03/2013
  • 18. 3. A CASE HISTORYAs far as the Supplier Management System,Xerox:• reduced the number of vendors from 5,000 to just 400• created a vendor certification process 19 09/03/2013
  • 19. 3. A CASE HISTORYAs regards Marketing Management, Xerox:• introduced a Customer Satisfaction Measurement System• sent out over 55,000 questionnaires monthly to its customers 2009/03/2013
  • 20. 3. A CASE HISTORYAs concerns Quality, Xerox:• formed 24 senior managers to help them make Total Quality Management (TQM) a part of its organizational culture• integrated benchmarking with the companys overall strategies 2109/03/2013
  • 21. 3. A CASE HISTORY Other benefits - 27% + 18% + 40% - 60% + 39% + 38% 2209/03/2013
  • 22. 3. A CASE HISTORY During the 1990s, Xerox created the International Benchmarking Clearinghouse (IBC) 2309/03/2013
  • 23. SOME FINAL THOUGHTS• Benchmarking = Industrial espionage?• Main difficulty: to find information• Benchmarking causes companies to critically consider their process and strategies• Positive stimulus in an ever changing socio- economic and cultural environment 2409/03/2013
  • 24. 2509/03/2013 Laura Cafaro, Eleonora Marinucci, Giulia Focchi
  • 25. GLOSSARY• Process: a series of actions that are done in order to achieve a particular result• Compare to/with (v.): when you are stressing similarities between the items compared, the most common word is “to”: “She compared his home-made wine to toxic waste.” If you are examining both similarities and differences, use “with”: “The teacher compared Steve’s exam with Robert’s to see whether they had cheated.”• Principles of Quality Management: a quality management principle is a comprehensive and fundamental rule / belief, for leading and operating an organization, aimed at continually improving performance over the long term by focusing on customers while addressing the needs of all other stake holders• Improvement: the act of improving something or the state of being improved; i.e. improvement in/on/to: “Theres been a big improvement in the childrens behaviour.” “an improvement on earlier models” “We need to carry out some improvements to the system.”• Technique: a special way of doing something• Improve (v.): to make something better, or to become better• With a view to growing evolution: [with a view to (doing) something]: used to state that an action is performed with the intention of obtaining a particular result in the future: ex. I came to this university with a view to getting a medical degree• Measure (v.): to judge the importance, value, or true nature of something• Performance: how well or badly a person, company etc does a particular job or activity• Bench: a long heavy table used for working on with tools or equipment• Meet the customers requirements: satisfy the customers’ expectations• Procedure: a way of doing something, especially the correct or usual way• Hone vs. refine (v.): to hone: to improve your skill at doing something, especially when you are already very good at it; to refine: to improve a method, plan, system etc. by gradually making slight changes to it.• To address: direct one’s attention to / deal with, eg.: addressed by benchmarking: subjected to benchmarking• Ways of (doing something): method that you use to do something• Benchmark (v.): to use a companys good performance as a standard by which to judge the performance of other companies of the same type 2609/03/2013
  • 26. • Be in charge (of doing something) (v.): if someone or something is in your charge, you are responsible for looking after them• Data collection tools: a piece of equipment or a skill that collects information or facts• Assess (v.): to make a judgment about a person or situation after thinking carefully about it• Establish (v.): to start/set up a company, organization, system, etc that is intended to exist or continue for a long time• Integrate (v.): if two or more things integrate, or if you integrate them, they combine or work together in a way that makes something more effective• Achieve (v.): to successfully complete something or get a good result, especially by working hard• Examine (v.): to look at something carefully and thoroughly because you want to find out more about it• Involve (v.): if an activity or situation involves something, that thing is part of it or a result of it.• On account of (something): quite a formal expression meaning owing to, because of as in On account of the recent rise in the price of oil food prices are bound to rise.• CEO (BOBBBChief Executive Officer): the person with the most authority in a large company• Develop (v.): to design or make a new idea, product, system etc over a period of time• Best-in-class: the highest current performance level in an industry, used as a standard or benchmark to equaled or exceeded. Also called best of breast• Led: past tense and past participle of “lead”.• Lead vs. Take (v.): to lead: to take someone somewhere by going in front of them while they follow, or by pulling them gently; to take: to move or go with someone or something from one place to another.• Increase (v.): if you increase something, or if it increases, it becomes bigger in amount, number, or degree• Reduce (v.): make something smaller or less in size, amount, or price• Effort: the physical or mental energy that is needed to do something. Particular situation: effort can also be used in the sense of work that people do to achieve something in a particular situation and could be translated into Italian as “iniziativa”, “impegno”, ecc.. according to the different contexts• Deliver (v.): here used in the sense of giving results that are promised, expected, or desired. Generally in business English it is used in the sense of taking goods, letters, packages etc to a particular place or person. 2709/03/2013
  • 27. • Payoff: an advantage or profit that you get as a result of doing something• Increase (v.): if you increase something, or if it increases, it becomes bigger in amount, number, or degree• Reduce (v.): make something smaller or less in size, amount, or price• Effort: the physical or mental energy that is needed to do something. Particular situation: effort can also be used in the sense of work that people do to achieve something in a particular situation and could be translated into Italian as “iniziativa”, “impegno”, ecc.. according to the different contexts• Deliver (v.): here used in the sense of giving results that are promised, expected, or desired. Generally in business English it is used in the sense of taking goods, letters, packages etc to a particular place or person.SOURCES:• www.wikipedia.org• www.qualitiamo.com• www.qualityi.it• www.icmrindia.org• management.about.com• www.businessdictionary.com• www.ldoceonline.com• tutor2u.net• Dizionario Garzanti• Business Environment – Michael Black• Economia e Management delle imprese – Hoepli 2809/03/2013