TQM PPT

AJAY KUMAR PANDEY

MBA 4RTH SEMRAI BUSINESS SCHOOL

HYDERABAD

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BENCHMARKINGTQM

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Benchmarking is a systematic method by which organization can measure themselves against the best industry practices.

Essence of BM is the process of borrowing ideas and adapting them to gain competitive advantage.

Benchmarking

Benchmarking - The practice of measuring an organization’s performance and productivity against standards, either internal or external.

Benchmarking

Internal Benchmarking The process of comparing an organization’s

current data on productivity with its own past records to determine how its current performance compares with past performance.

Variations alert the manager to changes Patterns and trends guide staffing/work

processes

Benchmarking

External Benchmarking The process of an organization

comparing its performance and productivity with those of other comparable organizations to determine whether it is performing at, above, or below the industry standard.

BENCHMARKING CONCEPT

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What is our performance level

What are others’ performance levels?How did they get there

CreativeAdaptation

Breakthrough Performance

Types of Bench MarkInternal B M E.g. Eicher Tractor Comparison Between

UnitsCompetitive B M Direct Product CompetitorsFunctional B M E.g. Best Logistics from same industries

(or) Any industries Generic B M Same process or functions like Customer

service, order entry, regardless of industries . 8

Reasons For Bench Mark

Defining Customer RequirementsEstablish Goals and Objectives Measures of ProductivityBecoming CompetitiveIndustry best practices to be

achieved

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Reasons for Bench Marking

To achieve Business & Competitive Objectives

Goals & Objectives Based on External Environment

Cost Efficient Continuous Improvement & New

Development

Bench Marking Process

Phases S.no Steps

Planning 1 Earmark what is to be Bench Marked ?

2 Identify the best competitor

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Determine the data collection method and start collecting data

Analysis 4 Determine the current performance GAP

5 Project future performance levels11

Bench Marking Process

Phases S.no Steps

Integration 6 Communicate bench mark findings and gain acceptance

7 Establish Functional Goals

Action

8 Develop Action Plans

9 Implement specific actions and monitor Progress

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Communicate Data For analysis

Acceptance for Analysis

Bench Marking Process

Phases S.no Steps

Maturity 10 Recalibrate Benchmarks

11 Attain the Leadership position

12 Integrate Practice into the Process

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Conclusion

Quality management programs include quality control, quality assurance, Continuous Quality Improvement and Total Quality Management.

Benchmarking is one of the tool to help organizations develop strength and reduce weakness.

BM can inspire managers and organization to compete.

Conclusion

Performance BM is to compare ones own performance with that of some other organization.

Process of BM is to compare the methods and practice for performing progress.

THANK YOU

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