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BENCHMARKINGBy:AnuragGuptaIBSKochi

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BenchmarkingisthesearchforindustrybestpracticesthatleadtosuperiorperformancebyRobertCamp

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TheEvolutionofBenchmarkingEvolvedintheearly1950s,whenW.EdwardDemingtaughttheJapanesetheideaofqualitycontrol.

ExampleToyotaMotorCorporationsfollowingthefootstepsofFordMotorCorporationwiththeadaptationoftheFordsJust-in-caseSystemintoToyotasJust-in-TimeSystem.

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TermBenchmarkingemergedin1980sbyROBERTCAMP,logisticsengineerwhoinitiatedXeroxsbenchmarkingprogram.UseofbenchmarkingworldwidecontinuestogrowsinceRobertCampwrotethefirstbookonbenchmarkingin1989.

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BenchmarkingValuableTQMtoolwhichaccomplishesobjectivesofcustomersatisfactionandcontinuousimprovement.Motivatesanorganization&fostersanewin-depthunderstandingaboutthefunctioningoftheorganization.Reducescycletimeassmallorbigtasksgetdonefaster.Constantlyredefinesstandardswhichmustbeachievedtoremaincompetitive.Increasesproductivity.

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BenchmarkingprocessBenchmarkingStandardsBenchmarkGapHowmuchWhereWhenBenchmarkPracticesHowtoclosetheGapImprovedKnowledgeImprovedPracticesImprovedProcess

ManagementCommitmentOrganizationCommunicationEmployeeparticipation

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BenchmarkingProcessModelAdaptPlan

AnalyzSearcehObserve

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StepsinBenchMarkingProcess

1.

Plan

SelecttheprocessFormTeamUnderstand&documentprocessEstablishperformancmeasure

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2.

Search

ListingCriteriaforpartnerselectionConductgeneral/secondaryresearchDecidetheleveltoBenchmarkIdentifypotentialpartners&contact

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3.

ObserveQuestionnairesenttopartnerTelephonecontactDirectobservation/sitevisit

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5.

Adapt

IdentifyimprovementopportunitiesSettargetforimprovementDevelopimplementationplan,monitortheprogressWritefinalreport

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InternalBenchmarkingComparisonofsimilarfunctionsindifferentoperatingunitswithintheorganization

Example

TataSteelsCollierydivisionsbenchmarkingtheirmaintenancepracticeswiththatoftheMaintenancedivisioninsidetheSteelWorksatJamshedpur.

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ExternalBenchmarkingComparisonoforganizationfunctionsandkeyprocessesagainstexternalgoodpracticeorganization.

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PerformanceorCompetitiveOrganizationsusingperformancemeasurestocomparethemselvesagainstsimilarorganizationsExampleFMCGscomparingwitheachotherforMarketshare,Retentionrates,profits,costs.

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FunctionalBenchmarkingComparisonofsimilarfunctionsagainstexternalbestinanyindustry

Example

HindustanMaxGBLtd,apharmaceuticalcompany,benchmarkingtheirmaintenancefunctionwiththatofTataSteel.

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GenericBenchmarkingComparisonoffunctionswhicharegenericinnatureinanyindustry

Examples

HospitalintheU.S.routinelybenchmarktheirpatientmanagementagainsthotelsguestmanagement.Airlinesbenchmarktheirservicewith5starhotels.customers

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StrategicBenchmarkingUsedwhereorganizationsseektoimprovetheiroverallperformancebyfocusingonspecificstrategiesorprocessesExampleBenchmarkingagainstorganizationswhichhavewonawardsorsomeotherdistinctions

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ProcessBenchmarkingFocusonspecificoperationsorprocesses

ExamplesInhighereducation-EnquiryManagement,EnrolmentInLogistics-Delivery,Safety.Inhotels-Housekeeping,CustomerCare.

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IssuesinBenchmarkingFindingsuitablepartners.Difficultiesincomparingdata(50%oforganizationsfoundthis)Resourceconstraints(Time,FinanceandExpertise)Staffresistance.

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XEROXCaseInventedphotocopierin19591981,thecompanysmarketshrankto35%IBM,Kodakevelopedhigh-endmachinesCanon,Richo,andSavindominatedthelow-endsegmentCompanywassufferingfromthenotinventedheresyndrome

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XEROXCaseResultsincluded:Supplierswerereducedfrom5000to300.Concurrentengineeringwerepracticed.HierarchicalorganizationstructurewasreducedQualityproblemscutbytwo-thirdsManufacturingcostscutinhalfDevelopmenttimecutbytwo-thirdsDirectlaborcutby50percentandcorporatestaffcutby35percentwhileincreasingvolume

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Thanks

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