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ASEMINAR
ON
‘BANCHMARKING-A TQM TOOL’
PRESENTED BY
AVADHUT R. JAKHALE
Definition of TQM
Total Quality control can be defined as “the
total composite product characteristic of marketing
engineering, manufacturing and maintenance
through which the product and service in use will
meet the expectation of the consumer”.
Technique For TQMB
ENCHMARKING
Kaizen (cont. improvement)
Quality Circle (empower & encourage people by forming team)
Quality Function Deployment (QFD) (learn from customer)
Business Process Reengineering (redesign the whole process)
Total Productive Maintenance (everyday maintence)
Six Sigma (reduce variation)
P
oka Yoka (zero defect zero accident zero loss)
Benchmarking
I
t is a point of reference against which things are measured.
B
ench marking is an effective technique, which helps organizations to
create quality targets in the Strategic Quality Management Process.
B
enchmarking is a systematic method by which an organization can
continuously measure themselves against the best industry practices or
world class and improve accordingly.
T
his exactly helps them to satisfy their customers with the best quality, cost,
product and services.
When Benchmarking?
I
f the company’s QMS is not properly developed, documented and
implemented.
I
f company’s great strength areas are not measured.
I
f company’s great weakness areas are not measured.
I
f company’s great opportunities are not measured.
I
f customer needs are not assessed and rectified .
Levels Of Benchmarking In Competitive Environment
I
nternal benchmarking – within one’s org.
C
ompetitive benchmarking – analysis the performance and practices of
best in class companies.
N
on – competitive benchmarking – is learning something about a process
a company wants to improve by benchmarking.
World class benchmarking - ambitious and looking towards recognized
leader
Areas Of Benchmarking
Operational Strategies:• Inventory management• Inventory control
Supply chain management• Warehousing and distribution• Transportation
Marketing management• Customer service levels• Purchasing• Billing and collection• Purchasing practices
H.R. Practices• Talent Acquisition / Search• Training and Development• Compensation management etc.
Types Of Benchmarking
P
erformance or operational benchmarking
It involves – pricing,
technical quality, features and other quality
P
rocess or functional benchmarking
It involves processes such
as billing, order entry or employee training.
S
trategic benchmarking
Examines how companies
compute and seeks the winning strategies that have led to competitive advantage and market success.
F
unctional Benchmarking is used
when an organization look to benchmark with partners drawn from
different business sectors or areas of activity to find ways of improving
similar functions or work processes.
I
nternal Benchmarking
access to sensitive data and information is easier, standard data
is often readily available and usually less time and resources are needed.
E
xternal Benchmarking
Involves seeking outside organizations that are known to be best in class.
I
nternational Benchmarking
It is used where partners are sought from other countries because best
practitioners are located elsewhere in the world.
Phases Of Benchmarking:
P
lanning: Identify the product, service or process to be
benchmarked
Analysis: Determine the gap between the firm’s current
performance and that of the firm’s benchmarked and identify the
causes of significant gaps.
I
ntegration: Establish goals and obtain the support of managers
who must provide the resources for accomplishing the goals
A
ction: Develop action plans, and team assignment,
implement the plans, monitor progress and
recalibrate benchmark as improvements are made.
M
aturity: Leadership position attended, best practices
fully integrated into process.
Process Of BM
D
etermine the focus areas to be benchmark / identify what to benchmark.
C
arry out assessment on the existing practices to understand the current
performance.
D
etermine what to measure – example compensation/ incentives structure
for sales people
D
efine the standard against which you are going to benchmark Identify
whoto benchmark
S
et goals and Carry out BM exercise
I
mplement the action plan
I
mprove performance based on the information obtained
through continuous monitoring
Factors For Success Of Bench MarkingB
enchmarking must have the full support of senior management and they should
actively involve. with this process
F
or BM team and process training is very imp.
B
M should be a team activity
B
M is an ongoing process.
B
M efforts must be organized, planned, and carefully managed.
U
sed, correctly, benchmarking can lead you to the competitive edge in today’s
business market place.
Advantages
B
enchmarking is a systematic method by which organizations can measure
themselves against the best Industry practices
It promotes superior performance by providing an organized framework
through which organization learn how the “ best in class” do things.
I
t helps for continuous improvement.
B
enchmarking inspire managers (and organization) to compete.
T
hrough Benchmark process organization can borrow ideas, adopt and
refine them to gain competitive advantages.
Disadvantages
T
he most resistant criticism of Benchmarking comes
from the idea of copying others.
I
t is not a strategy nor is it intended to be a business
philosophy. Therefore, it is a time taking technique.
Conclusion
Now a days, more than 60% companies in the world
uses this technique for fixing their target for continuous
improvement. For them it is an important tool. But to be
effective it must be used properly. It breaks down (waste money,
time and energy and some times morale too) if process owners
and managers feel threatened or do not accept and act on the
findings. Finally, benchmarking is not a substitute for
innovation; however, it is a source of ideas from outside the
organization.