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Balesh Talapady   Benchmarking
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Balesh Talapady Benchmarking






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Balesh Talapady   Benchmarking Balesh Talapady Benchmarking Presentation Transcript

  • Benchmarking MD070602BA10 By Balesh Talapady
  • “ What is the OBJECTIVE of your presentation ?” Objective
  • “ 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”
  • Xerox Corporation 1984 “ Xerox Corporation fired me due to its poor results . I am just printing my resignation letter.” poor results
    • Xerox Corporation
    • Return on assets fell to less than 8%.
    • Market share in copiers came down sharply from 86% in 1974 to just 17% in 1984.
    • Between 1980 and 1984, Xerox's profits decreased from $ 1.15 billion to $ 290 million .
  • “ I believe Japanese practice black magic to reduce costs ” reduce costs “ I Agree” Xerox Employees
    • In 1982, David T. Kearns (Kearns) took over as the CEO.
    • He discovered that the average manufacturing cost of copiers in Japanese companies was 40-50% of that of Xerox.
    • As a result, Japanese companies were able to undercut Xerox's prices effortlessly.
    • 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.'
  • “ We are cost cutting . You all are fired. We have appointed 2 Japanese employees in your place. Cutting cost Xerox Corp. Annual General Meeting
    • Supplier Management System
    • All Japanese companies put together 1000 supplier. Xerox had 5000 supplier.
    • Reduced suppliers from 5000 to 400
    • Created Vendor Certification process
    • Manufacturing System
    • Helped in revamping its manufacturing techniques.
    • Helped in recognizing its internal and external customers.
    • Helped in achieving Operational efficiency
    • .
    • Marketing
    • Introduced Customer Satisfaction Measurement System that integrated customer research and benchmarking activities.
    • Sent 55,000 questionnaires monthly to its customers to measure customer satisfaction and record competitors performance.
  • “ There is so much improvement in Xerox, I guess they are using Black Magic” improvement Japan
    • Number of defects reduced by 78 per 100 machines.
    • Service response time reduced by 27%.
    • Inspection of incoming components reduced to below 5%.
    • Defects in incoming parts reduced to 150pp.
    • Inventory costs reduced by two-thirds.
    • Marketing productivity increased by one-third.
    • Distribution productivity increased by 8-10%
  • Thank You ! ! !