Benchmarking

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  • 1. By-PRAVEEN SIDOLA - 1021026 1
  • 2. What is benchmarking? The search for industry best practices that lead to superior performance - Robert C. Camp The continuous process of measuring products, services, and practices against the toughest competitors or those companies recognized as industry leaders - David T. Kearns, CEO, Xerox Corporation 2
  • 3. Benchmarking-a bird’s eye view -Where we want to be WORLD CLASS GOAL 3 Functional Benchmark GOAL 2 Competitive Benchmark GOAL 1WHERE WE ARE CURRENT PERFORMANCE 3
  • 4. BENCHMARKING MODEL
  • 5. XEROX Xerox :  In 1979,  losing market share in the copier business  Lower-priced, high quality Japanese competitors were squeezing Xerox out of industry.  "Product quality and feature comparisons"  Xerox formed teams of engineers and challenged them to design products that could compete with Japanese.  They bought competing products, catalogued their features and claims, then tore them apart – Reverse Engineering  They failed…….. 5
  • 6. XEROX’S INVESTIGATION  No doubt Japanese were building better copier  Xerox suspected  Cheap Asian labor  Subsidy by Japanese government  To probe Xerox sent investigative team to Fuji – Xerox  What they found amazed them: the Japanese could afford to sell their machines at a price equal to Xeroxs cost  The answer wasnt cheap labor, and it wasnt subsidy  The answer lay in the details of manufacturing processes - their Japanese rivals were defeating Xerox on the factory floor. 6
  • 7. LIVE CASES
  • 8. INTERNAL BENCHMARKING Case-1 Reliance Communication:Earlier routers were configured from the field and a maximum of 3-4 could be configured.
  • 9. INTERNAL BENCHMARKINGAfter adopting I.B, the process was carried out from the Network operation Center, itself by the engineers.Advantages: Increase in efficiency of the work process Increase in the no. of routers configuration(3-18) Around 6 fold increase in performanceSource- Dhirubhai Ambani Knowledge City(DAKC)
  • 10. Case- 2(Name withheld to protectprivacy) Pre-benchmarking status:A line of operators were required to monitor every step.Disadvantages:Costs came up to around Rs.480000 / 1 line/monthMore labor required
  • 11. Continued.. Post-benchmarking status:A single operator was equipped to deal with 4 systems simultaneously.. &2 unskilled manpower to assist him
  • 12. ADVANTAGES Costs came down to only12000 * 4 =480004500 *2*3 = 27000Total = 75,000/4Line/MonthSAVINGS- (1,92,000 to 75,000 = 1,17,000)60.93% reduction in total direct manpower cost Manpower requirement reduced Efficiency is enhanced