Balesh Talapady Benchmarking

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Balesh Talapady Benchmarking

  1. 1. Benchmarking MD070602BA10 By Balesh Talapady
  2. 2. “ What is the OBJECTIVE of your presentation ?” Objective
  3. 3. “ Sir, Thanks for hiring me .But one small question, why is benchmarking?” what Benchmarking Department As per Sylvia Codling, Author of “Best Practice Benchmarking” “ Benchmarking is an ongoing process of measuring and improving products, services and practices against the best that can be identified worldwide”
  4. 4. Xerox Corporation 1984 “ Xerox Corporation fired me due to its poor results . I am just printing my resignation letter.” poor results <ul><li>Xerox Corporation </li></ul><ul><li>Return on assets fell to less than 8%. </li></ul><ul><li>Market share in copiers came down sharply from 86% in 1974 to just 17% in 1984. </li></ul><ul><li>Between 1980 and 1984, Xerox's profits decreased from $ 1.15 billion to $ 290 million . </li></ul>
  5. 5. “ I believe Japanese practice black magic to reduce costs ” reduce costs “ I Agree” Xerox Employees <ul><li>In 1982, David T. Kearns (Kearns) took over as the CEO. </li></ul><ul><li>He discovered that the average manufacturing cost of copiers in Japanese companies was 40-50% of that of Xerox. </li></ul><ul><li>As a result, Japanese companies were able to undercut Xerox's prices effortlessly. </li></ul><ul><li>Kearns quickly began emphasizing reduction of manufacturing costs and gave new thrust to quality control by launching a program that was popularly referred to as 'Leadership Through Quality.' </li></ul>
  6. 6. “ We are cost cutting . You all are fired. We have appointed 2 Japanese employees in your place. Cutting cost Xerox Corp. Annual General Meeting <ul><li>Supplier Management System </li></ul><ul><li>All Japanese companies put together 1000 supplier. Xerox had 5000 supplier. </li></ul><ul><li>Reduced suppliers from 5000 to 400 </li></ul><ul><li>Created Vendor Certification process </li></ul><ul><li>Manufacturing System </li></ul><ul><li>Helped in revamping its manufacturing techniques. </li></ul><ul><li>Helped in recognizing its internal and external customers. </li></ul><ul><li>Helped in achieving Operational efficiency </li></ul><ul><li>. </li></ul><ul><li>Marketing </li></ul><ul><li>Introduced Customer Satisfaction Measurement System that integrated customer research and benchmarking activities. </li></ul><ul><li>Sent 55,000 questionnaires monthly to its customers to measure customer satisfaction and record competitors performance. </li></ul>
  7. 7. “ There is so much improvement in Xerox, I guess they are using Black Magic” improvement Japan <ul><li>Number of defects reduced by 78 per 100 machines. </li></ul><ul><li>Service response time reduced by 27%. </li></ul><ul><li>Inspection of incoming components reduced to below 5%. </li></ul><ul><li>Defects in incoming parts reduced to 150pp. </li></ul><ul><li>Inventory costs reduced by two-thirds. </li></ul><ul><li>Marketing productivity increased by one-third. </li></ul><ul><li>Distribution productivity increased by 8-10% </li></ul>
  8. 8. Thank You ! ! !

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