ASEMINARON‘BANCHMARKING-A TQM TOOL’PRESENTED BYAVADHUT R. JAKHALE
Definition of TQMTotal Quality control can be defined as “the totalcomposite product characteristic of marketing engineering,manufacturing and maintenance through which the productand service in use will meet the expectation of the consumer”.
Technique For TQMENCHMARKINGKaizen (cont. improvement)Quality Circle (empower & encourage people by forming team)Quality Function Deployment (QFD) (learn from customer)Business Process Reengineering (redesign the whole process)
Benchmarkingt is a point of reference against which things are measured.ench marking is an effective technique, which helps organizationsto create quality targets in the Strategic Quality Management Process.enchmarking is a systematic method by which an organization cancontinuously measure themselves against the best industry practicesor world class and improve accordingly.his exactly helps them to satisfy their customers with the best quality,
When Benchmarking?f the company’s QMS is not properly developed, documented andimplemented.f company’s great strength areas are not measured.f company’s great weakness areas are not measured.f company’s great opportunities are not measured.
Levels Of Benchmarking In CompetitiveEnvironmentnternal benchmarking – within one’s org.ompetitive benchmarking – analysis the performance and practices of bestin class companies.on – competitive benchmarking – is learning something about a process acompany wants to improve by benchmarking.World class benchmarking - ambitious and looking towards recognized
Areas Of BenchmarkingOperational Strategies:• Inventory management• Inventory controlSupply chain management• Warehousing and distribution• TransportationMarketing management• Customer service levels• Purchasing• Billing and collection• Purchasing practicesH.R. Practices• Talent Acquisition / Search• Training and Development• Compensation management etc.
Types Of Benchmarkingerformance or operational benchmarkingIt involves – pricing, technical quality, features and other qualityrocess or functional benchmarkingIt involves processes such as billing, order entry or employee training.trategic benchmarking
unctional Benchmarking is usedwhen an organization look to benchmark with partners drawn fromdifferent business sectors or areas of activity to find ways ofimproving similar functions or work processes.nternal Benchmarkingaccess to sensitive data and information is easier, standard
xternal BenchmarkingInvolves seeking outside organizations that are known to be best inclass.nternational BenchmarkingIt is used where partners are sought from other countries becausebest practitioners are located elsewhere in the world.
Phases Of Benchmarking:lanning: Identify the product, service or process to be benchmarkedAnalysis: Determine the gap between the firm’s current performanceand that of the firm’s benchmarked and identify the causes ofsignificant gaps.ntegration: Establish goals and obtain the support of managers whomust provide the resources for accomplishing the goals
ction: Develop action plans, and team assignment, implement theplans, monitor progress and recalibrate benchmark as improvementsare made.aturity: Leadership position attended, best practices fully integratedinto process.
Process Of BMetermine the focus areas to be benchmark / identify what tobenchmark.arry out assessment on the existing practices to understand thecurrent performance.etermine what to measure – example compensation/ incentivesstructure for sales peopleefine the standard against which you are going to benchmark Identify
et goals and Carry out BM exercisemplement the action planmprove performance based on the information obtained through continuousmonitoring
Factors For Success Of Bench Markingenchmarking must have the full support of senior management andthey should actively involve. with this processor BM team and process training is very imp.M should be a team activityM is an ongoing process.M efforts must be organized, planned, and carefully managed.
Advantagesenchmarking is a systematic method by which organizations can measurethemselves against the best Industry practicesIt promotes superior performance by providing an organized frameworkthrough which organization learn how the “ best in class” do things.t helps for continuous improvement.enchmarking inspire managers (and organization) to compete.hrough Benchmark process organization can borrow ideas, adopt andrefine them to gain competitive advantages.
Disadvantageshe most resistant criticism of Benchmarking comes from the idea ofcopying others.t is not a strategy nor is it intended to be a business philosophy.Therefore, it is a time taking technique.
ConclusionNow a days, more than 60% companies in the world uses thistechnique for fixing their target for continuous improvement. For them itis an important tool. But to be effective it must be used properly. It breaksdown (waste money, time and energy and some times morale too) ifprocess owners and managers feel threatened or do not accept and act onthe findings. Finally, benchmarking is not a substitute for innovation;however, it is a source of ideas from outside the organization.