BENCH MARKING

Bijoyen Das Visiting Faculty

Meaning & Definition
Ingredient of TQM program.
selecting & demonstrating
standard of practice, saving,
cost , products-represent best
performance for process or
activities very similar to your
own.
Target at which to shoot
and than develop a
standard or benchmark
against which to compare
your own performance.
Steps:
Determine what to BM.
Form a BM Team.
Identify BM Partner
Collect and Identify Bench
Marking Information
Take actions to match or
exceed
Typical Performance used in BM
% Defects
Cost Per Unit / order
Process Time / Unit
Service Response / Unit time
ROI
Customer Satisfaction Rate
Customer Retention Rate etc
BM Other Company to Judge own Performance
Ex- Xerox, Mercedece,, LL Bean
Aim: Follow Best Practices


20.4
27.4
90
20.4
30.6
38.6
34.6
31.6
45.9
46.9
45
43.9
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
East West North
Create Internal competition for Self Excellence
Internal Bench Marking
Learning within.!!!!!!!!!
Important: Always start with your slide
size set to the aspect ratio you intend to
use. If you change the slide size after
youve created some slides, your pictures
and other graphics will be resized. This
could potentially distort their appearance.

-Large organization many
B U & Divisions
-Learning Exercise within
- Learn by creating own
team
- -Can be implemented
in variety of areas
Evolution of B.M ( 1950 E.Ed.Deming)
First Generation:
-Function or Technological
-Type: Reverse
Engineering
(Process of discovering
the technological principal
of object, device, process
through structured
analysis)
Second Generation
-Competition
Type: competitive BM
(Comparing Firms
practice with most
successful Competitor
BM Evolutions:
Third Generation:
Type: Process BM
-Focus on Business
Process with Goal of
identifying and
observing best practices
from one or more firms
Fourth Generation:
-Types: Strategic
Internal
External
Global
How Other Compete
Bench Mark with Partners
across the Globe.
Bench Marking
Types: Strategic
Process
Functional or Generic
Internal
External
International
Bench Marking
Phases
Planning-what, comparing, data
collections, methodeing
Analyzing-find Gaps, project further
performance
Integration-Communicate Findings,
establishing Goal
Actions-Action plans-implementation-
Control-Recalibrate
Maturity- attaining Leadership Position-
Practice fully Integrated in to process


Bench Marking
Prerequisites
-Employee involvement
Relate process improvement to competitive strategy and
positioning
Define your own process, collect data and compare
Perceive Bench Marking as on going process
Explain the scope of Companies studied
Perceive B M as means to Process Improvement
Set Goal for Closing the GAPS
Employee Empowerment
Maintain momentum

Bench Marking
Cost Visit Cost
Time Cost
BM Data Base Cost



Bench Marking
Limitations Tough Process Need Commitment
Expensive and Time Consuming
End with-------------------------------

They are different from Us
Pit falls:
Lack of Management Commitments
Not Applied to critical Areas First
Inadequate Resources
Line Staff Not involved
Scope not well defined
Too many performance Measures
C.S.F not understood properly
Partners Ignored
Data Collection Methods in appropriate
Management Resistance to Change
No Repeat Bench Marking, once achieved


Question:
Have You Bench Marked Your Own Performance for MBA Course?
Aspect Ratio
Test

Thanks
Bijoyen Das
Visiting
Faculty
16x9
4x3