BENCHMARKING · 2021. 1. 17. · 31 7QC tools Check Sheets (collect data to make improvements)...
Transcript of BENCHMARKING · 2021. 1. 17. · 31 7QC tools Check Sheets (collect data to make improvements)...
BENCHMARKING
For Best Practices
What is Benchmarking
◼ A method for identifying and importing best practices in order to improve performance
◼ The process of learning, adapting, and measuring outstanding practices and processes from any organization to improve performance
Why Benchmark
◼ Identify opportunities to improve performance
◼ Learn from others’ experiences
◼ Set realistic but ambitious targets
◼ Uncover strengths in one’s own organization
◼ Better prioritize and allocate resources
◼ Citizens demand effective and responsive government
◼ Voters resent waste of tax dollars
◼ People ask for greater accountability of government
◼ Weak economy forces government to provide more services with less resource
Public Sector Benchmarking
Types of Benchmarking: 1
◼ Strategic Benchmarking
How public, private, and nonprofit organizations compare with each other. It moves across industries and cities to determine what are the best strategic outcomes.
Types of Benchmarking: 2
◼ Performance Benchmarking
How public, private, and nonprofit organizations compare themselves with each other in terms of product and service. It focuses on elements of cost, technical quality, service features, speed, reliability, and other performance comparisons.
Types of Benchmarking: 3
◼ Process Benchmarking
How public, private, and nonprofit organizations compare through the identification of the most effective operating practices from many organizations that perform similar work processes.
When not to Benchmark
◼ Target is not critical to the core business functions
◼ Customer’s requirement is not clear
◼ Key stakeholders are not involved
◼ Inadequate resources to carry through
◼ No plan for implementing findings
◼ Fear of sharing information with other organizations
Benchmarking Process
Planning
CollectingData
Analysis
ImprovingPractices
1. Planning
◼ Determine the purpose and scope of the project
◼ Select the process to be benchmarked
◼ Choose the team
◼ Define the scope
◼ Develop a flow chart for the process
◼ Establish process measures
◼ Identify benchmarking partners
2. Collecting Data
◼ Conduct background research to gain thorough understanding on the process and partnering organizations
◼ Use questionnaires to gather information necessary for benchmarking
◼ Conduct site visits if additional information is needed
◼ Conduct interviews if more detail information is needed
3. Analysis
◼ Analyze quantitative data of partnering organizations and your organization
◼ Analyze qualitative data of partnering organizations and your organization
◼ Determine the performance gap
4. Improving Practices
◼ Report findings and brief management
◼ Develop an improvement implementation plan
◼ Implement process improvements
◼ Monitor performance measurements and track progress
◼ Recalibrate the process as needed
A term (Greek) used in statistics to representstandard deviation from mean value, an indicator of the degree of variation in a set of a process.
Sigma measures how far a given process deviates from perfection. Higher sigma capability, better performance
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Six Sigma - A highly disciplined process that enables organizations deliver nearly perfect products and services.
The figure of six arrived statistically from current average maturity of most business enterprises
A philosophy and a goal: as perfect as practically possible.
A methodology and a symbol of quality.
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Contd…
A statistical concept that measures a process in terms of defects – at the six sigma level, there 3.4 defects per million opportunities.
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Contd…
But, it is much more!
Six Sigma is not:
•A standard
•A certification
•Another metric like percentage
Rather!•It is a Quality Philosophy and the way of improving performance by knowing where you are and where you could be.
Methodology to measure and improve company’s performance, practices and systems
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WHAT IS SIX SIGMA
Six Sigma emerged as a natural evolution in business to increase profit by eliminating defects
The Current business environment now demands and rewards innovation more than ever before due to:
➢ Customer Expectations
➢ Technological Change
➢ Global Competition
➢ Market Fragmentation
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Sigma Level ( Process
Capability)
Defects per Million
Opportunities
2 308,537
3 66,807
4 6,210
5 233
6 3.4
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Six Sigma is in use in virtually all industries around the world. Some of companies can be listed as:
Motorola Ericsson General Electric Sony Ford Motor Co. CITI bank
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BPMS
➢ Business Process Management System
DMAIC
➢ Six Sigma Improvement Methodology
DMADV
➢ Creating new process which will perform at Six Sigma
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BPM strategies emphasize on process improvement and automation to derive performance
Combining BPM strategies with sigma six is most powerful way to improve performance
Both strategies are not mutually exclusive but some companies produced dramatic results by combining them.
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A logical and structured approach to problem solving and process improvement.
An iterative process (continuous improvement)
A quality tool which focus on change management style.
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Phases of Six Sigma are:
Define specific goals to achieve outcomes, consistent with customers demand and business strategy
Measure reduction of defects
Analyze problems ,cause and effects must be considered
Improve process on bases of measurements and analysis
Control process to minimize defects
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Acronym for:
➢ Define the project
➢ Measure the opportunity
➢ Analyze the process options
➢ Design the process
➢ Verify the performance
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Its usage depends on the type of business. In general,
“If there are processes that generate a lot of negative customer feedback, whether that customer is internal or external, the components of Six Sigma should be considered as a means to study and rectify the problem.”
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Generates sustained success
Sets performance goal for everyone
Enhances value for customers
Accelerates rate of improvement
Promotes learning across boundaries
Executes strategic change
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When practiced as a management system, Six Sigma is a high performance system for executing business strategy.
Six Sigma is a top down solution to help organizations:
Align their business strategy to critical improvement efforts
Mobilize teams to attack high impact projects Accelerate improved business results Govern efforts to ensure improvements are
sustained
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Six Sigma identifies several key roles for its successful implementation:
Executive leadership
Champions
Master Black Belts (Identify projects& functions)
Black Belts (Identify non value added activities)
Green Belts ( works on small projects )
Top
Bottom
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7QC tools✓ Check Sheets (collect data to make
improvements)✓ Pareto Charts( define problem and frequency)✓ Cause and effect diagram (Identify possible
causes to solve problem)✓ Histogram (Bar charts of accumulated data to
evaluate distribution of data)✓ Scatter diagram (plots many data points and
pattern between two variables)✓ Flow Chart (Identify unwanted steps)✓ Control charts (Control limits around mean
value)
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If you want to make yourself more valuable and attractive to employers then get training and certification
Option I – Certification as Six Sigma Green Belt
Option II – Certification as Six Sigma Black Belt
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Six Sigma is methodology used for:
Aligning key business processes to achieve those requirements.
Utilizing rigorous data analysis to minimize data variation in those processes.
Driving rapid and sustainable improvement to business processes.
CONCEPT OF COMPETENCY MAPPING
Personal Characteristics
Behavior Job Performance
Motive, Trait, Self-
Concept & Knowledge
CRITERIA TO MEASURE COMPETENCY & PERFORMANCE
Competency
Effective PerformanceSuperior Performance
Performance
Threshold Competencies Differentiating Competencies
THRESHOLD V/S DIFFERENTIATINGCOMPETENCIES
Must have in the job
Distinguishes superior from average performer
NEED FOR COMPETENCY MAPPING
Long learning curves & Lack of
succession planning
High Turnover & Low
retention
Poor Performance
Unrecognized training needs
Want for Organizational
change
STEPS IN DEVELOPING A COMPETENCY BASED SELECTION SYSTEM
Develop Competency Model(s) for Target job(s)
Select / Develop Assessment Methods
Train Assessors in the Assessment Method
Assess competencies of candidates for jobs
Make job-person match decisions for selection, placement and promotion
Validate Selection System
Develop a Competency based job and person database and Matching System
PERFORMANCE MANAGEMENT SYSTEM (PMS)
Pre-requisite steps
Organization Strategy
Organization Objectives
Manager/Work Unit Objective
Performance Planning
Performance Management
Start of Period
During the Period
End of Period
▪Definition of Job Responsibilities
▪Goal Setting
Performance Appraisal
COMPETENCY BASED PMS
MIXED MODEL
Need for Competency based PMS
Unfair Appraisal System
Non-serious Performance
Appraisal
Employees rated PMS worthless
Low impact of PMS on Actual Management
Inflated Performance
Ratings
APT Situations for“MIXED MODEL” Performance + Competency PMS
Uncertain Environments
Self Managing Teams
Qualitative/Process Service Jobs
Changing Organizational Strategy or Markets
TOOLS FOR COMPETENCY MAPPING
360 degree feedback
Assessment Centres