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.