TQMbench
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Transcript of TQMbench
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BenchmarkingBenchmarking
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Benchmarking isBenchmarking is
Measuring your performance against thatMeasuring your performance against that
of the bestof the best--inin--class companies,class companies,
determining how the bestdetermining how the best--inin--class achieveclass achievethose performance levels, and using thethose performance levels, and using the
information as a basis for your owninformation as a basis for your own
companys targets, strategies, andcompanys targets, strategies, and
implementation.implementation.L.Pryor, Benchmarking: A Self Improvement Strategy, Journal ofL.Pryor, Benchmarking: A Self Improvement Strategy, Journal ofBusiness Strategy,Business Strategy,
Nov.Nov.--Dec. 1989.Dec. 1989.
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BENCH MARKING CONCEPT
What is our
performance level
How do we do it?
What are others
performance level?
Creative
Adaptations
Break Through
Performance
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Types of BenchmarkingTypes of Benchmarking
Comparison:Comparison:
InternalInternal Best in FirmBest in Firm
CompetitiveCompetitive Best in IndustryBest in Industry World ClassWorld Class Best in WorldBest in World
Form:Form:
Performance BenchmarkingPerformance Benchmarking
Process BenchmarkingProcess Benchmarking
Strategic BenchmarkingStrategic Benchmarking
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Performance BenchmarkingPerformance Benchmarking
Analysis of relative business performance amongAnalysis of relative business performance amongcompetitorscompetitors
Comparison is internal or industryComparison is internal or industry Pricing, quality, technical features, performancePricing, quality, technical features, performance
characteristicscharacteristics
Resource commitment lowResource commitment low Usually through 3Usually through 3rdrd party intermediaryparty intermediary
Global Purchasing Benchmarking InitiativeGlobal Purchasing Benchmarking Initiative
Construction Industry InstituteConstruction Industry Institute
Metrics Issue: Do metrics capture the wholeMetrics Issue: Do metrics capture the wholestory?story?
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Process BenchmarkingProcess Benchmarking
Analysis of most effective practices on keyAnalysis of most effective practices on keywork processeswork processes
Comparison is usually World ClassComparison is usually World Class Distribution, order entry, procurement.Distribution, order entry, procurement.
NASCAR pit crewsNASCAR pit crews
Resource commitment is highResource commitment is high
Usually conducted by teams from processUsually conducted by teams from processareaarea
Metrics Issue: What are important metricsMetrics Issue: What are important metricsfor process? (Intent)for process? (Intent)
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Strategic BenchmarkingStrategic Benchmarking
Analysis of alternative competitiveAnalysis of alternative competitive
strategiesstrategies
Comparison is World ClassComparison is World Class Southwest Airlines, Dell ComputersSouthwest Airlines, Dell Computers
Resource commitment is moderateResource commitment is moderate
Usually conducted by benchmarking analystUsually conducted by benchmarking analyst
Metrics Issue: Are metrics comparable?Metrics Issue: Are metrics comparable?
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The Benchmarking ProcessThe Benchmarking Process
Project selectionProject selection Goal and scopeGoal and scope
Understanding current processUnderstanding current process -- metricsmetrics
Selection of partner or clearinghouseSelection of partner or clearinghouse Data collectionData collection -- metricsmetrics
Assessment and recommendationsAssessment and recommendations
Planning the changePlanning the change
ImplementationImplementation
RecalibrationRecalibration update the metricsupdate the metrics
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Xeroxs 10Xeroxs 10-- Step ProcessStep Process
1.1. Identify what is to beIdentify what is to be
benchmarkedbenchmarked
2.2. Identify comparativeIdentify comparative
organizationsorganizations
3.3. Determine dataDetermine data--
collection method andcollection method and
collect datacollect data
4.4. Determine currentDetermine current
performance levelsperformance levels
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5. Project future performance5. Project future performancelevelslevels
6.6. Communicate benchmarkCommunicate benchmark
findings and gainfindings and gainacceptanceacceptance
7.7. Establish functional goalsEstablish functional goals
8. Develop action plans8. Develop action plans9. Implement specific actions9. Implement specific actions
and monitor progressand monitor progress
10. Recalibrate benchmarks10. Recalibrate benchmarks
Xeroxs 10Xeroxs 10-- Step ProcessStep Process
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Benchmarking PitfallsBenchmarking Pitfalls
Project not aligned with competitiveProject not aligned with competitive
strategystrategy
Outcome cannot be adequately measuredOutcome cannot be adequately measured Scope of project too largeScope of project too large
Omission secondary but importantOmission secondary but important
measuresmeasures
Failure to establish a baselineFailure to establish a baseline