1 bs2914 quality management & customer care 6: quality tools and techniques - benchmarking

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BS2914 Quality Management & Customer Care

6: Quality Tools and Techniques - Benchmarking

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BS2914 Quality Management & Customer Care 6: Quality Tools and Techniques - Benchmarking

Definition:

‘the process of identifying, understanding and adapting outstanding practices and processes from organisations anywhere in the world in order to help your own organisation to improve its performance’

NB • ‘outstanding’ rather than ‘best’• ‘adapting’ not ‘adopting’

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Why benchmark ?• Compete - or die! As Deming says..

‘You do not have to do these things. Survival is not compulsory’

• Benchmarking is a managed change process which:

– Uses a disciplined, structured approach– Identifies what needs to change– Identifies how to change it– Identifies the potential for improvement- Creates the desire for change

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Levels of attainment…

************* Baseline

******************** Achievable

*************************** Benchmark

************************************* Long term goal

• Benchmarks should not be unrealistically high or low…‘a man’s reach must exceed his grasp or what’s a heaven for ’ (Browning)

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Step changes in benchmarking…

• Internal best practices by function• Competitors’ best practices• Industry best practices (including non-

competitors)• Functional best practice (e.g. any company in

Europe)• Functional best practice - world class

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Different types of benchmarking…

• Competitive (i.e. competitor) analysis• Best practice (which goes beyond competitive

analysis to uncover actual processes that deliver best practice) in 4 categories..

1. Internal (search within the company)

2. Competitive (search in a competitor)

3. Functional (search by function e.g. payroll)

4. Generic (both function and process)

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A systematic approach

Deming Benchmarking

Plan Plan

Do Collect

Check Analyse

Act Adapt• Also needs…

management support, research facilities, networking, codes of conduct, training, internal communication...

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Rank Xerox benchmarking process.. [1] of [2]

1. Identify what is to be benchmarked

2. Identify comparator companies

3. Determine data-collection method and collect data

4. Determine current performance gap

5. Project future performance levels

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Rank Xerox benchmarking process.. [2] of [2]

6. Communicate benchmarking findings and gain acceptance

7. Establish functional goals

8. Deliver action plans

9. Implement specific actions and monitor progress

10. Recalibrate benchmarks

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Roles and responsibilities• Stakeholders• The executive champion (Board level)• Process sponsor (more immediate

management)• Team leader/facilitator• Benchmarking team itself• Functional/technical experts• Research resource team• Benchmarking partners

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Which process to benchmark?• Critical success factors (CSF) have to be identified and then…

Critical Process 1 Critical Process 2 Critical Process 3_____________________________________________________________________________

Process Performance Rating 3 5 1_____________________________________________________________________________CSF1 3 1 3 9 5 3_____________________________________________________________________________CSF2 5 1 3

15 5 3_____________________________________________________________________________CSF3 3 5 5

9 25 5_____________________________________________________________________________Total priority 33 35 11

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Which process to benchmark?

• For each CSF, use the scale :1=low impact 3 = medium impact 5=major impact

• For each critical process, use the scale1 = excellent performance 3=average performance 5=poor performance

• Multiply out to get an improvement priority score

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Collect the data

• Identify potential benchmarking partners

• Plan data collection methods

• Conduct questionnaires/interviews

• Prepare/conduct a site visit

• Write the site visit report

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Analysing and using the data

• ‘Normalise’ the data (e.g. percentages)

• Construct a comparison matrix

• Identify the best practices

• Isolate the ‘process enablers’ for each best practice

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Adapting the best practice and enablers• Get support from upper management• Organised strategy has to have realistic,

actionable improvement goals• Communicate findings and plan a commitment

to change• Set goals to close the gaps• Developing the implementation plan ( and

implementing it)• Maintain leadership!

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Problems with benchmarking ?• Can we find realistic comparators i.e. ceteris

paribus• Are sufficient resources devoted to it ?• Might it encourage a devotion to the

measurable, losing more subtle but key things on route ?

• Can it stand alone, apart from other quality initiatives ?

• Your own experiences are ...

1 bs2914 quality management & customer care 6: quality tools and techniques - benchmarking

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