1. SWAMYNATHAN.S.M/TQM-UNIT4/BENCHMARKING
Presented By:
Swamynathan.S.M
AP/ECE/SNSCT
Saturday, 02 June 2018
SWAMYNATHAN.S.M/TQM-UNIT4/BENCHMARKING

2. What is Benchmarking? Definition
Benchmarking is the process of
measuring an organization’s internal processes
then identifying, understanding, and adapting outstanding practices from other organizations considered to be best-in-class.
Definition
“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 .”
Saturday, 02 June 2018
SWAMYNATHAN.S.M/TQM-UNIT4/BENCHMARKING

3. The Essence of Benchmarking
“moving from where we are to where we want to be”
Saturday, 02 June 2018
SWAMYNATHAN.S.M/TQM-UNIT4/BENCHMARKING

4. SWAMYNATHAN.S.M/TQM-UNIT4/BENCHMARKING
Why Benchmarking?
To Obtain an External Perspective of What Is Possible
To Assist in Setting Strategic Targets
To Promote Improvements in Performance
To Establish a Competitive Edge
To Enhance Customer Satisfaction
To Reduce Costs
To Improve Employee Morale
To Achieve Quality Awards
To Survive
Saturday, 02 June 2018
SWAMYNATHAN.S.M/TQM-UNIT4/BENCHMARKING

5. SWAMYNATHAN.S.M/TQM-UNIT4/BENCHMARKING
When Benchmarking?
If the company’s QMS is not properly developed, documented and
implemented.
If company’s great strength areas are not measured.
If company’s great weakness areas are not measured.
If company’s great opportunities are not measured.
If customer needs are not assessed and rectified .
Saturday, 02 June 2018
SWAMYNATHAN.S.M/TQM-UNIT4/BENCHMARKING

6. Benchmarking in the Context of TQM
TQM Key principles include:
Comparisons with best practice.
A Strong emphasis on meeting the needs of the customer (internal
and external).
The importance of efficient, effective business processes.
The need for continuous improvement .
Enhances a TQM program .
Saturday, 02 June 2018
SWAMYNATHAN.S.M/TQM-UNIT4/BENCHMARKING

7. Levels Of Benchmarking In Competitive Environment
Internal benchmarking - Within one’s org.
Competitive benchmarking - Analysis the performance and
practices of best in class companies.
Non-competitive benchmarking - Is learning something about a
process a company wants to improve by benchmarking.
World class benchmarking - Ambitious and looking towards
recognized leader.
Saturday, 02 June 2018
SWAMYNATHAN.S.M/TQM-UNIT4/BENCHMARKING

8. Benchmarking Methodology
Competitive
• Industry leaders
• 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
Saturday, 02 June 2018
SWAMYNATHAN.S.M/TQM-UNIT4/BENCHMARKING

9. SWAMYNATHAN.S.M/TQM-UNIT4/BENCHMARKING
Types Of Benchmarking
Performance or operational benchmarking:
It involves – pricing, technical quality, features and other quality.
Process or functional benchmarking:
It involves processes such as billing, order entry or employee training.
Strategic benchmarking:
Examines how companies compute and seeks the winning strategies that have
led to competitive advantage and market success.
Saturday, 02 June 2018
SWAMYNATHAN.S.M/TQM-UNIT4/BENCHMARKING

10. SWAMYNATHAN.S.M/TQM-UNIT4/BENCHMARKING
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.
Saturday, 02 June 2018
SWAMYNATHAN.S.M/TQM-UNIT4/BENCHMARKING

11. Guidelines to Benchmarking
Do not go on a fishing expedition.
Use company people.
Exchange Information.
Legal Concerns.
Confidentiality.
Saturday, 02 June 2018
SWAMYNATHAN.S.M/TQM-UNIT4/BENCHMARKING

12. Five Phases Of Benchmarking
Planning: 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.
Integration: Establish goals and obtain the support of managers who must
provide the resources for accomplishing the goals
Action: Develop action plans, and team assignment, implement the plans,
monitor progress and recalibrate benchmark as improvements are made.
Maturity: Leadership position attended, best practices fully integrated into
process.
Saturday, 02 June 2018
SWAMYNATHAN.S.M/TQM-UNIT4/BENCHMARKING

13. SWAMYNATHAN.S.M/TQM-UNIT4/BENCHMARKING
Benchmarking Process In
Motorola
Saturday, 02 June 2018
SWAMYNATHAN.S.M/TQM-UNIT4/BENCHMARKING

14. Benchmarking Strategy
Decide what to benchmark.
Select companies to benchmark.
Obtain data and collect information.
Analyze data and forms action plans.
Recalibrate and start the process again.
Saturday, 02 June 2018
SWAMYNATHAN.S.M/TQM-UNIT4/BENCHMARKING

15. The Seven Step Benchmarking Model
Activity
What is included
Step 1: Identify what to benchmark
Clarify the benchmark objectives
Decide whom to involve
Define the process
Consider the scope
Set the boundaries
Agree on what happens in the process
Flowchart the process
Step 2: Determine what to measure
Examine the flow chart
Establishes the process measures
Verify that measures match objectives
Step 3: Identify who to benchmark
Conduct general research
Choose level to benchmark
Saturday, 02 June 2018
SWAMYNATHAN.S.M/TQM-UNIT4/BENCHMARKING

16. The Seven Step Benchmarking Model
Step 4: Collect data
Use a questionnaire
Conduct a benchmark site visit
Step 5: Analyze data and determine the gap
Quantitative data
Qualitative analysis
Step 6: Set goals and develop an “Action
Plan”
Set performance goals
Develop an action plan
Step 7: Monitor the process
Track the changes
Make benchmarking a habit
Saturday, 02 June 2018
SWAMYNATHAN.S.M/TQM-UNIT4/BENCHMARKING

17. Factors For Success Of Benchmarking
Benchmarking must have the full support of senior management
and they should actively involve with this process.
For Benchmarking, team and process training is very imp.
Benchmarking should be a team activity.
Benchmarking is an ongoing process.
Benchmarking efforts must be organized, planned, and carefully
managed.
Correct use of benchmarking can lead you to the competitive
edge in today’s business market place.
Saturday, 02 June 2018
SWAMYNATHAN.S.M/TQM-UNIT4/BENCHMARKING

18. SWAMYNATHAN.S.M/TQM-UNIT4/BENCHMARKING
Advantages
Benchmarking 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.
Intensive studies of existing practices often lead to identification of non-value added
activities and plans for process improvement.
It helps for continuous improvement.
Benchmarking inspire managers (and organization) to compete.
Through Benchmark process organization can borrow ideas, adopt and refine them to gain
competitive advantages.
Benchmarking provides a basis for training human resources.
Saturday, 02 June 2018
SWAMYNATHAN.S.M/TQM-UNIT4/BENCHMARKING

19. SWAMYNATHAN.S.M/TQM-UNIT4/BENCHMARKING
Disadvantages
The most resistant criticism of Benchmarking comes from the idea of copying
others.
It is not a strategy nor is it intended to be a business philosophy. Therefore, it is
a time taking technique.
Benchmarking is not “instant pudding”. It will not improve performance if
proper infrastructure of Total Quality Management is not in place.
Saturday, 02 June 2018
SWAMYNATHAN.S.M/TQM-UNIT4/BENCHMARKING

20. SWAMYNATHAN.S.M/TQM-UNIT4/BENCHMARKING
Conclusion
More than 60% companies in the world uses -fixing their target for continuous improvement.
-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.
It is not a substitute for innovation; however, it is a source of ideas from outside the organization.
Saturday, 02 June 2018
SWAMYNATHAN.S.M/TQM-UNIT4/BENCHMARKING

21. SWAMYNATHAN.S.M/TQM-UNIT4/BENCHMARKING
Thank you
and
Have a Nice Day…
Saturday, 02 June 2018
SWAMYNATHAN.S.M/TQM-UNIT4/BENCHMARKING