benchmarking models

Benchmarking models for different organizations

2014

Basic understandings

“Benchmarking is the process of comparing one’s business processes and performance metrics to industry bests and/or best practices from other industries.”

Dimensions typically measured are quality, time, and cost. Improvements from learning mean doing things better, faster, and cheaper.”

1. Learning from best practices from any industry and incorporating

them for improvement

2. Helping an organization to understand its current performance

3. Encouraging for continuous improvement projects

4. Improved customer satisfaction

5. Improves competitiveness

6. Enhances productivity

7. Helps in thinking out of box

8. Stimulates motivation among the employees.

Reasons for Benchmarking

Different Models

Benchmarking Model at XeroxA. Planning: Determining the subject to be benchmarked, identify the

relevant best practice and develop most appropriate data collection technique.

B. Analysis: Assess the strengths of competitors and compare Xerox’s performance with competitors.

C. Integration: Establish necessary goals and integrate these goals into the company’s formal planning processes.

D. Action: Implement action plans established and assess them periodically to determine whether the company is achieving its objectives.

E. Maturity: Determine whether the company has attained a superior performance level.

XEROX model

Reaping The Benefits Number of defects reduced by 78 per 100 machines. Service response time reduced by 27%. Defects in incoming parts reduced Inventory costs reduced by two-thirds. Marketing productivity increased by one-third. Distribution productivity increased by 8-10%. Errors in billing reduced from 8.3% to 3.5%. Became the leader in the high-volume copier-duplicator. Units improved sales from 152% to 328%.

During 1990s, Xerox, along with companies like Ford, AT&T, IBM, Motorola created the International Benchmarking Clearinghouse (IBC) to promote Benchmarking and guide companies across the world in benchmarking efforts.

Ford model

Lean Process model

There are a variety of forms of wasteDefectsOverproductionWaitingTransportationInventoryExtra-processingInefficient use of human potential

SolutionError proofing ("Poka -Yoke")Just-in-time productionBuilt-in reliabilityProper Implementation

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