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Dr.K.Baranidharan
Present by…
RECOGNITION/REWARD/
PERFORMANCE
APPRAISAL
Presented by
Dr.K.Baranidharan
ECE
BENCH MARKING
• The word „benchmark‟ is a reference or
measurement standard used for
comparison.
• Benchmarking is the process of
determ...
• Measuring an organisation’s performance
against that of best-in-class
companies, determining how the best-in-
class achi...
“Benchmarking is the search for
industry best practices that lead to
superior performance”
by Robert Camp
Benchmarking
Valuable TQM tool which accomplishes objectives of
customer satisfaction and continuous improvement.
Motivate...
OBJECTIVE
• To determine what and where
improvements are called for
• To analyze how other organizations
achieve their hig...
Purpose of Benchmarking
• Comparing an organization’s performance
to the best organization’s performance
• Comparing an or...
The Evolution of Benchmarking
Evolved in the early 1950s, when W. Edward
Deming taught the Japanese the idea of
quality co...
Term “Benchmarking” emerged in
1980s by ROBERT CAMP, logistics
engineer who initiated Xerox’s
benchmarking program.
Use of...
Benchmarking Process Model
Search
Observe
Analyze
Adapt Plan
Steps in Bench Marking Process
1. Plan
• Select the process
• Form Team
• Understand & document process
• Establish perfor...
2. Search
• Listing Criteria for partner selection
• Conduct general / secondary
research
• Decide the level to Benchmark
...
3. Observe
• Questionnaire sent to partner
• Telephone contact
• Direct observation / site visit
4. Analyze
• Sort information & data
• Quality control information & data
• Normalize data if necessary
• Identify gaps in...
5. Adapt
• Identify improvement
opportunities
• Set target for improvement
• Develop implementation plan,
monitor the prog...
• Customer service levels
• Inventory management
• Inventory control
• Purchasing
• Billing and collection
• Purchasing pr...
Types Of Benchmarking
Internal
External
Performance or Competitive
Functional
Generic
Strategic
Process
Internal Benchmarking
Comparison of similar functions in different
operating units within the organization
Example
• Tata ...
External Benchmarking
Comparison of organization
functions and key processes
against external good practice
organization.
Performance or Competitive
Organizations using performance
measures to compare themselves against
similar organizations
Ex...
Functional Benchmarking
Comparison of similar functions against
external best in any industry
Example
• Hindustan Max – GB...
Generic Benchmarking
Comparison of functions which are generic
in nature in any industry
Examples
• Hospital in the U.S. r...
Strategic Benchmarking
Used where organizations seek to
improve their overall performance by
focusing on specific strategi...
Process Benchmarking
Focus on specific operations or processes
Examples
• In higher education - Enquiry
Management, Enrolm...
Issues in Benchmarking
Finding suitable partners.
Difficulties in comparing data (50%
of organizations found this)
Resourc...
Benchmarking Tools
• Matrix technology
• Comparison tables
• Graphs: Pie chart, Bar chart /
Histogram
• SWOT analysis Pote...
• market attractiveness
• Portfolio attractiveness customer
• Technology/resource strength
• Market position
• Contributio...
Benefits of Benchmarking
 Improves organizational quality
 Leads to lower cost
 Creates buy-in for change
 Exposes emp...
Pitfalls and Criticisms of
Benchmarking
 The most persistent criticism of
benchmarking comes from the idea of
copying oth...
Disadvantages of Benchmarking
• Increase the diversity of
information so the potential for
information overload
• May redu...
Ejemplos
Xerox, Hewlett Packard, Ford y General
Motors
Dr.K.Baranidharan
THANK YOU
TQM - RECOGNITION, REWARD, PERFORMANCE APPRAISAL - FINAL YEAR ECE - SRI SAIRAM INSTITUTE OF TECHNOLOGY, CHENNAI - Dr.K.BAR...
TQM - RECOGNITION, REWARD, PERFORMANCE APPRAISAL - FINAL YEAR ECE - SRI SAIRAM INSTITUTE OF TECHNOLOGY, CHENNAI - Dr.K.BAR...
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TQM - RECOGNITION, REWARD, PERFORMANCE APPRAISAL - FINAL YEAR ECE - SRI SAIRAM INSTITUTE OF TECHNOLOGY, CHENNAI - Dr.K.BARANIDHARAN

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TQM - RECOGNITION, REWARD, PERFORMANCE APPRAISAL - FINAL YEAR ECE - SRI SAIRAM INSTITUTE OF TECHNOLOGY, CHENNAI - Dr.K.BARANIDHARAN

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Transcript of "TQM - RECOGNITION, REWARD, PERFORMANCE APPRAISAL - FINAL YEAR ECE - SRI SAIRAM INSTITUTE OF TECHNOLOGY, CHENNAI - Dr.K.BARANIDHARAN"

  1. 1. Dr.K.Baranidharan Present by…
  2. 2. RECOGNITION/REWARD/ PERFORMANCE APPRAISAL Presented by Dr.K.Baranidharan
  3. 3. ECE
  4. 4. BENCH MARKING
  5. 5. • The word „benchmark‟ is a reference or measurement standard used for comparison. • Benchmarking is the process of determining who is very best, who sets the standard, and what that standard is. • Benchmarking is a systematic method by which organisations can measure themselves against the best industry practices.
  6. 6. • Measuring an organisation’s performance against that of best-in-class companies, determining how the best-in- class achieved those performance level. • It is a tools for continuous improvement. • “The process of identifying, understanding, and adapting outstanding practices and processes from organisations anywhere in the world to an organisation to improve its performance”.American Productivity and Quality Centre (APQC)
  7. 7. “Benchmarking is the search for industry best practices that lead to superior performance” by Robert Camp
  8. 8. Benchmarking Valuable TQM tool which accomplishes objectives of customer satisfaction and continuous improvement. Motivates an organization & fosters a new in-depth understanding about the functioning of the organization. Reduces cycle time as small or big tasks get done faster. Constantly redefines standards which must be achieved to remain competitive. Increases productivity.
  9. 9. OBJECTIVE • To determine what and where improvements are called for • To analyze how other organizations achieve their high performance levels, and • To use this information to improve performance.
  10. 10. Purpose of Benchmarking • Comparing an organization’s performance to the best organization’s performance • Comparing an organization’s business process with similar process • Comparing product and services • Identify the best practices to implement • Projecting trends
  11. 11. The Evolution of Benchmarking Evolved in the early 1950s, when W. Edward Deming taught the Japanese the idea of quality control. Example Toyota Motor Corporation’s following the footsteps of Ford Motor Corporation with the adaptation of the Ford’s Just-in-case System into Toyota’s Just-in-Time System.
  12. 12. Term “Benchmarking” emerged in 1980s by ROBERT CAMP, logistics engineer who initiated Xerox’s benchmarking program. Use of benchmarking worldwide continues to grow since Robert Camp wrote the first book on benchmarking in 1989.
  13. 13. Benchmarking Process Model Search Observe Analyze Adapt Plan
  14. 14. Steps in Bench Marking Process 1. Plan • Select the process • Form Team • Understand & document process • Establish performance measure
  15. 15. 2. Search • Listing Criteria for partner selection • Conduct general / secondary research • Decide the level to Benchmark • Identify potential partners & contact
  16. 16. 3. Observe • Questionnaire sent to partner • Telephone contact • Direct observation / site visit
  17. 17. 4. Analyze • Sort information & data • Quality control information & data • Normalize data if necessary • Identify gaps in performance Level • Identify causes for gaps
  18. 18. 5. Adapt • Identify improvement opportunities • Set target for improvement • Develop implementation plan, monitor the progress • Write final report
  19. 19. • Customer service levels • Inventory management • Inventory control • Purchasing • Billing and collection • Purchasing practices • Quality process • Warehousing and distribution • Transportation AREAS TO BENCHMARK
  20. 20. Types Of Benchmarking Internal External Performance or Competitive Functional Generic Strategic Process
  21. 21. Internal Benchmarking Comparison of similar functions in different operating units within the organization Example • Tata Steel’s Colliery divisions benchmarking their maintenance practices with that of the Maintenance division inside the Steel Works at Jamshedpur.
  22. 22. External Benchmarking Comparison of organization functions and key processes against external good practice organization.
  23. 23. Performance or Competitive Organizations using performance measures to compare themselves against similar organizations Example • FMCG’s comparing with each other for Market share, Retention rates, profits, costs.
  24. 24. Functional Benchmarking Comparison of similar functions against external best in any industry Example • Hindustan Max – GB Ltd , a pharmaceutical company, benchmarking their maintenance function with that of Tata Steel.
  25. 25. Generic Benchmarking Comparison of functions which are generic in nature in any industry Examples • Hospital in the U.S. routinely benchmark their patient management against hotel’s guest management. • Airlines benchmark their customers service with 5 star hotels.
  26. 26. Strategic Benchmarking Used where organizations seek to improve their overall performance by focusing on specific strategies or processes Example • Benchmarking against organizations which have won awards or some other distinctions
  27. 27. Process Benchmarking Focus on specific operations or processes Examples • In higher education - Enquiry Management, Enrolment • In Logistics - Delivery, Safety. • In hotels - Housekeeping, Customer Care.
  28. 28. Issues in Benchmarking Finding suitable partners. Difficulties in comparing data (50% of organizations found this) Resource constraints (Time, Finance and Expertise) Staff resistance.
  29. 29. Benchmarking Tools • Matrix technology • Comparison tables • Graphs: Pie chart, Bar chart / Histogram • SWOT analysis Potential/resources- analysis • Price/performance ratio • Potential analysis • Life cycle analysis • market growth/market share portfolio
  30. 30. • market attractiveness • Portfolio attractiveness customer • Technology/resource strength • Market position • Contribution margin • customer satisfaction portfolio • Revenue share • Spider web diagram
  31. 31. Benefits of Benchmarking  Improves organizational quality  Leads to lower cost  Creates buy-in for change  Exposes employees to new ideas  Broadens organization’s perspective  A catalyst for learning  Increase employee satisfaction  Test the internal operating target  Raise the level of potential performance  Sharing of best practices  Understanding world-class performance in-depth  Encourage and stimulate innovation
  32. 32. Pitfalls and Criticisms of Benchmarking  The most persistent criticism of benchmarking comes from the idea of copying others.  Benchmarking isn’t very helpful if it is used for processes that don’t offer much opportunity for improvement.  Benchmarking is also not a substitute for innovation
  33. 33. Disadvantages of Benchmarking • Increase the diversity of information so the potential for information overload • May reduce managerial motivation when comparing with a better resourced rival • Confidentiality of data may be a risk
  34. 34. Ejemplos Xerox, Hewlett Packard, Ford y General Motors
  35. 35. Dr.K.Baranidharan THANK YOU
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