Unit 4 tqm

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Unit 4 tqm

  1. 1. UNIT-4Bench marking. Need, Advantages, Limitations, Levels and Types of Benchmarking and process of benchmarking . Quality Function Deployment. Definition, Benefits and Process of QFD. Failure Mode and Effect Analysis. Explanation Examples and Steps in FMEA. ISO 900, ISO 14000 .
  2. 2. BenchmarkingBenchmarking is defined as” measuring our performance against that of best-in-class companies, determining how the best –in-class achieve those performance levels and using the information as a basis for our own company ‘s targets, strategies and implementation.”
  3. 3. Evolution of BenchmarkingBenchmarking is not a new concept. The practice of benchmarking can be seen in early 1800s when a New England industrialist, Francis Lowell travelled to England to study manufacturing at the best British factories.
  4. 4. Reasons for Benchmarking To develop strengths and reduce weakness To achieve business and competitive objectives. It is a powerful and effective tool when used for right reasons.
  5. 5. Advantages of bench marking It promotes a thorough understanding of the company’s own process. It involves adaption of the practices of superior competitions. It helps in identifying non value added activities. It enables comparison of performance measures in different dimensions. It focuses on performance measures and not on products. It helps organizations to set realistic goals
  6. 6.  It allows organization to define specific gaps in performance. It provides a basis for training human resources.
  7. 7. Limitations Best in class performance is a moving target. Benchmarking is not a panacea It is not instant
  8. 8. Why benchmarking fails? If employees fail to get involved If process improvement is not related to competitive positioning Gathering data before clearly understanding the firm’s process. If assumed benchmarking as just one time process If the scope of companies studied is narrow. If the set goals do not bridge the gap between what is and what can be If they do not empower employees to achieve improvements If benchmarking is not perceived to process improvement.
  9. 9. Levels of Benchmarking Internal benchmarking Competitive benchmarking Non-competitive benchmarking -related process in the industry with a firm -a related process in a different industry -an unrelated process in a different industry World-class benchmarking
  10. 10. Types of benchmarking1. Performance benchmarking or operational benchmarking.2. Process benchmarking or functional benchmarking.3. Strategic benchmarking.
  11. 11. Key Success Factor Matrix Competitive Analysis- Industry- Segment Performance RatingKSF Weight Our co. Competitor Comp B Comp C ASales forceDistributionSuppliersR &DServiceCoststructure
  12. 12. Areas to benchmark1. Customer service levels2. Inventory management3. Inventory control4. Purchasing5. Billing and collection6. Purchasing practices7. Quality process8. Warehousing and distribution9. transportation
  13. 13. Guidelines to benchmarking Do not go on a fishing expedition Use company people Exchange information Legal concerns Confidentiality
  14. 14. Four Phases of Benchmarking Planning Analysis Integration Action

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