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![3 Basic Issues in Benchmarking
Where?
Basic issues:
Where are you now?
Why is your organization at
this position vs the other?
What can be improved?
112
10
30
90
Company max
min mean
Why?
What?
Waiting
Time
for
Admission
[minutes]](https://image.slidesharecdn.com/benchmarkingforci-250305060842-9300d848/85/generic-Benchmarking-for-Continuous-improvement-26-320.jpg)
generic Benchmarking for Continuous improvement
- 1. TACH Solution present BenchmarkingFor Continuous Improvement Facilitated by YK Tang, Managing Consultant CGSC Black Belt (USA), SMI (USA), BSc (MY)
- 3. What is Benchmarking? ahighly structured strategy for acquiring, assessing, and applying customer, competitor, and enterprise intelligence for the purposes of product, system or enterprise innovation and design.
- 4. What is Benchmarking? Benchmarkingis the process of continually searching for the best methods, practices and processes, and either adopting or adapting their good features and implementing them to become the “best of the best.” How is benchmarking used? • Compare performance of an existing process against other companies’ best-in-class practices • Determine how those companies achieve their performance levels • Improve internal performance levels Use benchmarking both for comparison of performance as well as to understand the potential for improvement
- 5. Types of Benchmarking Competitive Benchmarking Functional Benchmarking Internal Benchmarking Product Benchmarking Process Benchmarking Best Practices Benchmarking Strategic Benchmarking
- 6. Benchmarking methodology Competitive • Industryleaders • Top performers with similar operating characteristics Functional • Top performers regardless of industry • Aggressive innovators utilizing new technology Internal • Top performers within company • Top facilities within company Best Practice Overlap
- 7. Benchmarking is……. Acontinuous process A process of investigation that provides valuable information A process of learning from others; a pragmatic search for ideas A time-consuming, labor-intensive process requiring discipline A viable tool that provides useful information for improving virtually any business process
- 8. •What do theywant from us? •How do we measure the quality performance of our services to them? •How are we being measured by our customers?
- 9. Activity Quality Principles Who are our customers? How are we being measure by our customers?
- 10. Steps in Benchmarking– Process Model Planning What to be benchmarked? To whom and what will we compare? How will be the data collected? Analysis Integration Action Maturity
- 11. Case studies :Attributes of the success and failures of Benchmarking Success Failure Process Owner Involvement Customer Driven Objectives Linked to Strategic Plan Best Practices & Enablers Consider Cultural Attributes Disciplined Methodology Quantum Change Clear Project Life Cycle Integrated with Existing Quality Efforts Sponsorship Uncertain Amorphous Objectives No Strategic Integration Performance Metrics Only “Hard” Data Only Arbitrary / Casual Approach Incremental / No Change Keep Going and Going and ….. A la carte Program
- 12. Pitfalls of Benchmarking Lack of Sponsorship Wrong Team Homework and documentation Lack of Focus Short Term Needs Drive Process Confuse Metrics and Processes Process Isolation Goals and Objectives Coincident Failure to Monitor and Manage
- 13. Benchmarking methodology Checklist 1. IdentifyProcess to Benchmark Select process and define defect and opportunities Measure current process capability and establish goal Understand detailed process that needs improvement
- 14. Benchmarking methodology 2. SelectOrganization to Benchmark Outline industries/functions which perform your process Formulate list of world class performers Contact the organization and network through to key contact
- 15. Benchmarking methodology 3. Preparefor the Visit Research the organization and ground yourself in their processes Develop a detailed questionnaire to obtain desired information Set up logistics and send preliminary documents to organization
- 16. Benchmarking methodology 4. Visitthe Organization Feel comfortable with and confident about your homework Foster the right atmosphere to maximize results Conclude in thanking organization and ensure follow-up if necessary
- 17. Benchmarking methodology 5. Debriefand Develop an Action Plan Review team observations and compile report of visit Compile list of best practices and match to improvement needs Structure action items, identify owners and move into Improve phase
- 18. Benchmarking methodology 6. Retainand Communicate Report out to business management and project leaders Post findings and/or visit report on local server bulletin board Enter information on benchmarking project database
- 19. Library Database InternalReviews Internal Publications Professional Associations Industry Publications Special Industry Reports Functional Trade Publications Seminars Industry Data Firms Industry Experts University Sources Company Watches Newspapers Advertisements Newsletters Original Research Customer Feedback Supplier Feedback Telephone Surveys Inquiry Service Networks World Wide Web Sources of Information
- 20. Growth in theuse of Social Media presents huge opportunities for organizational learning and benchmarking Years to reach 50 million users 38 years 13 years 4 years 9 months 100 million
- 21. Benchmarking Compliance Policyregarding benchmarking protocol should be communicated to all employees involved, prior to contacting external organizations. Guidelines should address the following areas: Misrepresentation – do not misrepresent your identity in order to gather information Information requests – a request should be made only for information your organization would be willing to share with another company Sensitive / proprietary information – avoid direct benchmarking of sensitive or proprietary information Confidentiality – treat all information as confidential
- 22. Benchmarking Best Practices, Processes& Products
- 23. Client, Enterprise &Competitive Intelligence for Product, Process & Systems Innovation Dr. Rick L. Edgeman, University of Idaho Customers are Increasingly Demanding Customer expectations are simple. They want more goods and services at a lower cost, in a shorter time frame, with more information!
- 24. Client, Enterprise &Competitive Intelligence for Product, Process & Systems Innovation Dr. Rick L. Edgeman, University of Idaho Customer Expectation Dilemma Time Performance Expectations Continuous Improvement Performance Gap
- 25. Another view ofBenchmarking….. Benchmarking Market related (Competition analysis) Internal Benchmarking External Benchmarking Generic Processes (Best Practice) Branch related (Trend research) Plant related
- 26. 3 Basic Issuesin Benchmarking Where? Basic issues: Where are you now? Why is your organization at this position vs the other? What can be improved? 112 10 30 90 Company max min mean Why? What? Waiting Time for Admission [minutes]
- 27. Benchmarking enabler Enablers -the Means to the Ends SOFT MEDIUM HARD Training Communication Empowerment Attitude Management Involvement Goals & Objectives Sequence Controls Measures Policies & Procedures Plant Suppliers Money Technology Equipment
- 28. Benchmarks & Benchmarking: ManagingChange • Best Practices Benchmarking can be described as the process of seeking out and studying the best internal and external practices that produce superior performance. – Don’t reinvent what others have learned to do better! – Borrow shamelessly! – Adopt, adapt, advance! – Imitate creatively! – Adapt innovatively!
- 29. Process Benchmarking • Processbenchmarking focuses on discrete work processes and operating systems, such as the customer complaint process, the order-and-fulfillment process, or the strategic planning process. • Process benchmarking seeks to identify the most effective operating practices from many companies that perform similar work functions. • Its power lies in its ability to produce bottom-line results. If an organization improves a core process, for instance, it can then quickly deliver process improvement
- 30. Performance Benchmarking • Performancebenchmarking enables managers to assess their competitive positions through product and service comparisons. • Performance benchmarking usually focuses on elements of price, technical quality, ancillary product or service features, speed, reliability, and other performance characteristics. • Reverse engineering, direct product or service comparisons, and analysis of operating statistics are the primary techniques applied during performance benchmarking.
- 31. Strategic Benchmarking • Strategicbenchmarking examines how companies compete and is seldom industry-focused. It roves across industries seeking to identify the winning strategies that have enable high-performing companies to be successful in their marketplaces. • Strategic benchmarking influences the longer-term competitive patterns of a company. Consequently, the benefits may accrue slowly.
- 32. NPC Benchmarking Model NPCBenchmarking Model Phase 1 BENCHMARK Start 1. Agree On Benchmarking Topic 2. Finalise On Scope; Measures & Definitions 3. Data Collection : Survey 4. Share Strengths Phase 3 IMPROVEMENT New Area 9. Plan to Adapt Best Practices 10. Implement Best Practices 11. Monitoring Result 12. Standardization 13. Daily Control Continue Existing Project? Yes No Phase 2 BEST PRACTICES 5. Plan for Site Visit 6. Data Collection 7. Recommend Improvement 8. Share Findings Yes 2nd Site Visit (Focus Visit)
- 33. Community of Practice(CoP) Community of Practice (CoP) CoP is a small CoP is a small group of group of people people who comes together who comes together to explore opportunities for to explore opportunities for benchmarks benchmarks and and best best practices sharing practices sharing on on common interest areas common interest areas
- 34. Benchmarking Community ofPractices (CoP) Clusters e.g., Hypermarket, Supermarket, Specialty Store,Pharmacy Industries e.g., Retail Sector e.g., Distributive Trade Processes e.g., Delivery, Handling Customer Complaints Functional e.g., Marketing, HRM
- 35. You Cant ImproveWhat You Don’t Measure ! (and you can’t prove it to your customers either)
- 36. It’s all aboutData!
- 37. Pitfalls of Benchmarking Failure to consider organizational cultures or circumstances leads to a wrong direction Insufficient preparation usually results in MBWAA (management by wandering around aimlessly!) What are you trying to learn about? Why do you want to learn it? What will you do with it to make your processes better once you have it? Failure to measure and benchmark the right Key Result Areas
- 38. Lesson learned fromtop benchmark companies 1. Base decisions on what the customer wants and expects 2. Think and act in terms of the entire customer experience 3. Continuously improve all parts of the customer experience 4. Hire and reward people who can effectively build relationships with customers 5. Train employees in how to cope with their emotional labor costs 6. Create and sustain a strong service culture 7. Avoid failing your customers twice 8. Empower customers to co-produce their own experience 9. Get managers to lead from the front, not the top 10. Treat all customers as if they were guests
- 39. Spider / RadarDiagram The spider diagram is a means of representing visually just how well or badly you are doing as a company This process benefits from group input Identify the 6-8 factors customers use to rate the company (and competitors) – Mark each leg of the spider with one of these factors.
- 40. Preplan the Benchmarkinginitiatives Communication planning Management buy-in and commitment Team selection What to benchmark To whom and what we will compare? What and how the data are to be collected?
- 41. Brainstorming Process +Affinity Diagram
- 42. Gap Analysis Phase Determine the current and ideal state Process Flow Analysis – understand how we provide services to our customers (SIPOC analysis)
- 43. Analysis Matrix andPrioritization Matrix
- 44. Creative Benchmarking Thinkingoutside the box Innovative