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benchmarking
This document provides an introduction to benchmarking and its history and purpose. It discusses benchmarking as comparing business processes and metrics to industry best practices to identify areas for improvement. The summary is: 1) Benchmarking involves comparing a company's processes and performance to others to identify best practices and ways to improve. 2) It was first used to measure feet for shoes but now is a process used to continuously measure and compare business functions to leaders. 3) Benchmarking helps companies cope with competition, keep pace with changes, drive innovation, meet standards, and improve performance.
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benchmarking
- 1. Faculty of GraduatesStudy Post Graduate Diploma In Business Management – 2013 Marketing Management Assignment Group-01 M.S.Nimendra - 2013/PGDBM/081 N.A.Niroshan – 2013/PGDBM/082 S.Sathees – 2013/PGBDM/064 W.G.G.Yasoma – 2013/PGDBM/031 Sunimal de Silva – 2013/PGDBM/083 Ajith Kumara – 2013/PGDBM/065
- 2. Introduction of theStudy
- 4. Benchmarking isthe process of comparing one's business processes and performance metrics to industry bests and/or best practices from other industries. Why are others better ? How are others better ? What can we learn ? How can we catch up ? How can we become the best in our sector ?
- 5. Benchmarking is Making BestPractices Your Daily Practice.
- 6. Continuous method ofmeasuring and comparing a firm’s business processes against those of another firm. Discover performance gaps between one’s own processes and those of leading firms. Incorporate leading firm’s processes into one’s own strategy to fill the gaps and improve performance. Benchmarking has three main features:
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- 10. History of Benchmarking The term benchmarking was first used by cobblers to measure people's feet for shoes. They would place someone's foot on a "bench" and mark it out to make the pattern for the shoes.
- 11. Traditionally, theorganizations used to enhance their products and performance by focusing on their internal functional activities (Kolarik, 1995). The organization, for example, may use techniques such as Quality Function Deployment to achieve their customer satisfaction.
- 12. However, thesetraditional performance improvement trends seem not to be sufficient for the highly competitive markets (Juran, 1993). A significant technique facilitating improvement of organizational performance at a competitive environment is benchmarking. (Juran, 1993).
- 13. Benchmarking wasoriginally defined by D.T. Kearns, the CEO of Xerox Corporation, in 1981 as the continuous process of measuring products, services, and practices against the toughest competitors or non- competitors who is the leader in their industry (Kolarik, 1995).
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- 15. . . . . Cope with Competitive Markets Keep Pacewith Science and Technology Changes Innovation In Management Methods Meeting Quality Standards Performance Improvement Creative Thinking Meeting Customers Expectations Benchmarking
- 16. A benchmarkis an organization recognized for its exemplary operational performance. There are many benchmarks in the world including: Toyota for Scandinavian Airlines for Motorola for Intel for Honda for Processes Design Training Service Rapid product development Benchmark
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- 18. When Benchmarking aSystem, Adapt What You Find, Don’t Just Copy It Benchmarking ≠ Copying
- 19. 19 “Best Practice”studies ◦ Studies and lists of what works best Cooperative Benchmarking ◦ Measurement of key production functions, input, output and outcomes Competitive Benchmarking Study & measurement of a competitor Industry Group Measurements ◦ Measurement of various aspects of operation for comparison
- 20. 20 Learn fromothers experience & practices Allows examination of present processes Ideas change & improvement Implementation / changes more likely Overall industry improvement
- 21. 21 What isbest for someone else may not suit you Poorly defined benchmarks may lead to wasted effort and meaningless results. Incorrect comparisons Reluctance to share information
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- 23. For decadesBenchmarking had set its sights on what there BEST COMPETITION was doing In the last two decades it broadened its sight to BEST WORLD CLASS ORGANIZATION what does they do MILESTONE – ◦ TOTAL CUSTOMER SATISFACTION
- 24. MEASUREMENT OF INTEREST C– Capability U – Usability P – Performance I – Installability R – Reliability A – Availability M – Maintainability D - Documentation
- 25. If customers are:They will feel: Because you have met their: And they will be: Very satisfied Delighted Dreams Your advocate Enthused Loyal Satisfied Excited Expectations Retained/fulfilled Contented Wishes Interested Ambivalent Indifferent Wants Attentive Needs Dissatisfied Concerned Minimum requirements Questioning Upset Bare essentials Looking around Very dissatisfied Angry Worst fears Gone Hostile Nightmares Your enemies
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- 28. VS How materials arepurchased How inventories are managed How suppliers are paid
- 29. VS How employees aretrained How fast new products get to the market How quality is managed
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- 32. In Benchmarking TheKey is to “Adapt not Adopt” – Professor Deming
- 35. Business Process Ranking EMPLOYEERECOGNITION 1 PROCESS IMPROVEMENT MANAGEMENT 2 PROCUREMENT PURCHASING 3 MANAGEMENT OPERATIONS POLICY LEADERSHIP 4 BENCHMARKING 5 EMPLOYEE DEVELOPMENT TRAINING 6 MARKETING 7 ASSET MANAGEMENT 8 BALANCED SCORECARD 9 CORPORATE GOVERNANCE 10
- 36. Organization Ranking Xerox 1 U.S.Army 2 Corning 3 Abu Dhabi Food Control Authority 4 Internal Revenue Service 5 United Technologies 6 DynMcDermott 7 Dubai Municipality 8 Dubai Chamber of Commerce and Industry 9 Allergan 10
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- 39. Thank You Give Benchmarking a Chance- It’s Worth It.