BENCHMARKING FOLLOWED IN INDUSTRIES

1. UNIT 4
TQM TOOLS

2. What in this Unit ????
• Benchmarking
• Quality Function Deployment
• Taguchi Quality Loss Function
• Total productive maintenance TPM
• FMEA

3. BENCHMARKING
• Benchmark is a reference or measurement standard used for
comparison.
• Benchmarking is the process of determining who is the best,
who sets the standards and what that standard is.
• Benchmarking answers the following questions:
a) how are we doing?
b) How do we compare with others?
c) Are we tracking the right measures?
d) Are we making progress fast enough?
e) Are we using the best practices?

4. BENCHMARKING
• Essence of benchmarking is the process of borrowing ideas and
adapting them to gain competitive advantage.
•It is a tool of continuous improvement.
• American productivity and Quality Centre (APQC) has defined
the benchmarking as the process of identifying, understanding
and adapting outstanding practices and processes from
organizations anywhere in the world to an organisation to
improve its performance.

5. BENCHMARKING CONCEPT
What is our present performance
level? How do we do it?
What are others performance
levels? How did they get there?
Creative
Adaptation
Break-through performance

6. REASONS TO BENCHMARK
1. Goal Setting Process to facilitate comparison with the best.
2. Aims at motivating and stimulating company employees
towards the goal.
3. Aims at external orientation of the company.
4. Aims at identifying technological break though.
5. Aims at searching for industry best practices.

7. TYPES OF BENCHMARKING
1. Based on object to be benchmarked:
a) Product benchmarking
b) Performance benchmarking
c) Process benchmarking
d) Strategic benchmarking
e) Generic benchmarking

8. TYPES OF BENCHMARKING
2. Based on organizations against whom one to benchmark:
a) Internal benchmarking
b) External benchmarking
c) Industry benchmarking
d) Competitive benchmarking
e) Best-in-class benchmarking
f) Relationship benchmarking

9. STEPS IN BENCHMARKING PROCESS
1. Planning:
a) Earmark what is to be benchmarked
b) Identify the best competitor
c) Determine the data collection methods to start collecting data.
2. Analysis:
a) Determine the current performance gap
b) Project future performance levels
3. Integration:
a) Communicate benchmarking findings and gain acceptance
b) Establish functional goals
c) Communicate data for analysis
d) Gain acceptance for analysis

10. 4. Action:
a) Develop action plans.
b) Implement specific actions and monitor progress
c) Recalibrate benchmarks
5. Maturity:
a) Attain the leadership position
b) Integrate practices into the process

11. PITFALLS OF BENCHMARKING
1. Based on learning from others rather than developing new
and improved approaches.
2. Leads to stagnation of ideas, strategies, best industry
practices.
3. Should not be a substitute for innovation.