SESSION – 13

TOTAL
QUALITY
MANAGEMENT
By:
Zahid Hussain
MS-Total Quality Management
Lead Auditor 5-S
IRCA Lead Auditor ISO-9001-2000
IRCA Lead Auditor ISO-14000-2004
IRCA Lead Auditor OHSAS 18000-2007
B. Sc Engineering (Chemical)
PCBA–UCP
BENCHMARKING THOUGHTS

“Benchmarking is the practice of being

humble enough to admit that someone else is
better at something and wise enough to try and
learn how to match and even surpass them at
it.”
BENCHMARKING THOUGHTS

“The continuous process of measuring

products, services, and practices against
the company’s toughest competitors or
those renowned as industry leaders”
 BENCHMARKING CONCEPT

What is our
What is others
performance level ?
performance level ?

Creative
Adaptation

Breakthrough Performance
 Why use Benchmarking
 Practical ways in which step changes in
performance can be achieved by learning
from others who have already undertaken
comparable changes
 The impetus (move fast) for seeking new
ways of doing things and promotes a culture
that is receptive to fresh approaches and
ideas
 Opportunities for staff to learn new skills and
be involved in the transformation process
from the outset. It inspire managers &
organization to compete.
 Why use Benchmarking

 Survival lies in emulating (imitate) best

and not in lagging behind
 Benchmarking is time and cost efficient
because it involves imitation and
adaptation rather than pure invention.
Prevents the “Re-inventing the wheel”.
 Quantum-leaps (Move ahead) in
performance. (Use of Bar code
scanners)
 Benchmarking allows goals to be set
objectively, based on external
information.
 Types of Benchmarking

 Internal benchmarking

 External benchmarking

 Functional benchmarking:
 Internal Benchmarking

ADVANTAGES:
sharing opinions  Easier to implement
between  Easier to access data
departments
within the same
organisation DISADVANTAGES:
 External ideas
blocked
 External Benchmarking
 Comparison with
external Advantages
organisations to  Helps to measure one’s
own performance
discover new ideas,
 Helps to search for
methods, products
best practices
and services.
 The gap between
internal and
external practices Disadvantages
displays the way  Takes time
 Requires support
where to change
and if there is any  Legal/ethical issues
 Industrial espionage
need to change.
(Spy)
 Functional Benchmarking
Investigate the performance of Advantages:
core business functions.
Discovering
Comparative research to
seek world-class innovative
excellence by comparing practices
business performance
not only against
competitors but also Disadvantage:
against the best Not suitable for
businesses operating in
different industry same every
field or activity (functions Organisation
to be benchmarked)
 Other Types of Benchmarking

 Process Benchmarking
Applies to business processes.
Breaks the functions down into discrete area that
are the target of benchmarking.
It is more focused study than functional
benchmarking

 Product Benchmarking
Reverse Engineering or competitive product
analysis.
Assessing competitor product concept, cost,
strengths and weakness.
 Other Types of Benchmarking

 Strategic Benchmarking
How companies compete, identify the winning
strategies that have enable high-performing
companies to be successful in their
marketplaces. (difficult to share strategy but
information available from customer, common
suppliers and public domain)
Key Steps of Benchmarking
National Productivity Corporation (NPC)-ML
Benchmarking Model 1985
Phase 1 Phase 2 Phase 3
BENCHMARK BEST PRACTICES IMPROVEMENT

Start
5. Plan for Site Visit 9. Plan to Adapt Best
Practices
1. Agree On
Benchmarking Topic 6. Data Collection 10. Implement Best
Practices
2. Finalise On Scope;
Measures & Definitions 7. 11. Monitoring Result
Recommend
2nd Improvement
3. Data Collection : 12. Standardization
Site Visit
Survey (Focus
Visit) Yes
8. Share Findings 13. Daily Control
4. Share Strengths

Continue Existing
Yes Project?
No

New Area
 Benchmarking Partners
Department or Organization against which
the comparison is made.
Categories of Benchmarking Partners
 Internal ( best starting point)
 Competitive
 Functional (best in same field and activity)
 Generic (other fields and industries.)
How to deal with benchmarking partners
 Develop a questionnaire –what information needed.
 Answer the questionnaire internally
 Provide reason for every question
 Clarify the objectives, area of interest, area of
confidentiality and sensitivity with partner.
 Arrange a visit with partner.
 Key Steps of Benchmarking
Prepare the block diagram with necessary loops
 Identify what to benchmark
 Ensure management support and involve all
stakeholders
 Select the benchmarking team
 Arrange the specific trainings
 Analysis of internal processes
 Identify companies to benchmark
 Decide on method(s) of data collection
 Collect public domain information
 Analyze collected information to establish
the further info needed
 Key Steps of Benchmarking

 Establish contacts with benchmark partners

 Plan and conduct the actual visits
 Establish whether a performance gap exists
 Predict future performance levels
 Communicate benchmark findings
 Establish targets and action plans
 Gain support and ownership for the plans
and goals
 Implement the action plans, measure
performance & communicate progress
 Re-calibrate benchmarks
 BARRIERS TO BENCHMARKING

1. Fear of being seen as “copying”

2. Fear of losing competitive
advantage by sharing information
3. Arrogance – “we are the best, why
benchmark?”
4. Benchmarking trap – benchmark
that which is convenient, but may not
be important.
 BARRIERS TO BENCHMARKING

• Impatience –
• Excuses are too easy:
We are too small
We are too busy
We are too different
Nobody else does what we do
We do it better than anyone else
Legal & Ethical Guidelines

• Keep it legal
• Be willing to give what you get
• Respect confidentiality
• Keep information internal
QUESTIONS