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Benchmarking

By-PRAVEEN SIDOLA - 1021026

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What is benchmarking?The search for industry best practices that

lead to superior performance- Robert C. Camp

The continuous process of measuring products, services, and practices against the toughest competitors or those companies recognized as industry leaders

- David T. Kearns, CEO, Xerox Corporation

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Benchmarking-a bird’s eye view -Where we want to be

WORLD CLASS

Functional Benchmark

Competitive Benchmark

CURRENT PERFORMANCE

WHERE WE ARE

GOAL 1

GOAL 2

GOAL 3

BENCHMARKING MODEL

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XEROXIn 1979, Xerox :

losing market share in the copier business

Lower-priced, high quality Japanese competitors were squeezing Xerox out of industry.

"Product quality and feature comparisons"

Xerox formed teams of engineers and challenged them to design products that could compete with Japanese.

They bought competing products, catalogued their features and claims, then tore them apart – Reverse Engineering

They failed……..

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XEROX’S INVESTIGATIONNo doubt Japanese were building better copierXerox suspected

Cheap Asian laborSubsidy by Japanese government

To probe Xerox sent investigative team to Fuji – XeroxWhat they found amazed them: the Japanese could afford

to sell their machines at a price equal to Xerox's costThe answer wasn't cheap labor, and it wasn't subsidy

The answer lay in the details of manufacturing processes - their Japanese rivals were defeating Xerox on the factory floor.

BENCHMARKINGLIVE CASES

INTERNAL BENCHMARKINGCase-1 Reliance Communication:Earlier routers were configured from the field and

a maximum of 3-4 could be configured.

INTERNAL BENCHMARKINGAfter adopting I.B, the process was carried out from the Network operation

Center, itself by the engineers.

Advantages: Increase in efficiency of the work process Increase in the no. of routers configuration(3-18) Around 6 fold increase in performance

Source- Dhirubhai Ambani Knowledge City(DAKC)

Case- 2(Name withheld to protect privacy)Pre-benchmarking

status:A line of operators

were required to monitor every step.

Disadvantages:Costs came up to

around Rs.480000 / 1 line/month

More labor required

Continued..Post-benchmarking status:

A single operator was equipped to deal with 4 systems simultaneously..

&2 unskilled

manpower to assist him

ADVANTAGESCosts came down to only12000 * 4 =480004500 *2*3 = 27000Total = 75,000/4Line/Month

SAVINGS- (1,92,000 to 75,000 = 1,17,000)

60.93% reduction in total direct manpower cost

Manpower requirement reducedEfficiency is enhanced