Benchmarking models for
“Benchmarking is the process of comparing
one’s business processes and performance
metrics to industry bests and/or best practices
from other industries.”
Dimensions typically measured are quality, time,
and cost. Improvements from learning mean
doing things better, faster, and cheaper.”
1. Learning from best practices from any industry and incorporating
them for improvement
2. Helping an organization to understand its current performance
3. Encouraging for continuous improvement projects
4. Improved customer satisfaction
5. Improves competitiveness
6. Enhances productivity
7. Helps in thinking out of box
8. Stimulates motivation among the employees.
Reasons for Benchmarking
Benchmarking Model at Xerox
A. Planning: Determining the subject to be benchmarked, identify the
relevant best practice and develop most appropriate data collection
B. Analysis: Assess the strengths of competitors and compare Xerox’s
performance with competitors.
C. Integration: Establish necessary goals and integrate these goals into
the company’s formal planning processes.
D. Action: Implement action plans established and assess them
periodically to determine whether the company is achieving its
E. Maturity: Determine whether the company has attained a superior
Reaping The Benefits
Number of defects reduced by 78 per 100 machines.
Service response time reduced by 27%.
Defects in incoming parts reduced
Inventory costs reduced by two-thirds.
Marketing productivity increased by one-third.
Distribution productivity increased by 8-10%.
Errors in billing reduced from 8.3% to 3.5%.
Became the leader in the high-volume copier-duplicator.
Units improved sales from 152% to 328%.
During 1990s, Xerox, along with companies like Ford, AT&T, IBM,
Motorola created the International Benchmarking Clearinghouse
(IBC) to promote Benchmarking and guide companies across the
world in benchmarking efforts.
There are a variety of forms of waste
Inefficient use of human potential
Error proofing ("Poka -Yoke")