Benchmarking Ppt 143i3b

INTERNATIONAL INSTITUTE OF BUSINESS STUDIES

A PRESENTATION ON BENCHMARKING PRESENTED BY Vivek Sinha

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Definition of Benchmarking:Benchmarking is a process for improving performance by constantly identifying, understanding and adapting best practices and processes followed inside and outside the company and implementing the results. Benchmarking is the process of comparing the cost, cycle time, productivity, or quality of a specific process or method to another that is widely considered to be an industry standard or best practice

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Benchmarking plays an important role in business. There are lot of competitors for one service/ one product in this world, Benchmarking is the only way to determine, who is performing well, on what areas the business should improve, benchmarking is the only way to determine it.

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To find who is the best in that particular industry, what is the cost, their service will be known in other business circle. Help companies/organisation to find out their positives and negative points of their product/services compared to your competitor. When you try to benchmark you will need to research to get the proper findings of it, when you do that you will know what is to be done and what not to be done. Complete evaluation of your business process helps to find ways to cut the costs of the business. Finding out the areas of scope of improvement , comparative study helps to achieve your company goals faster by realizing what to do and what not to do ?

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Identify your problem areas Identify other industries that have similar processes Identify organizations that are leaders in these areas Survey companies for measures and practices Visit the "best practice" companies to identify leading edge practices Implement new and improved business practices

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Financial Benchmarking

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Performance Benchmarking

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Product Benchmarking

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Functional Benchmarking

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Strategic Benchmarking

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Thorough understanding of one's own processes Emphasis on industry best practices. Company or plant visits Selection of appropriate benchmarking techniques Involvement of management and employees in the analysis of best practices Emphasis on practices and processes, not on end results. Benchmarking should be a continuous process as the competition is always changing. Commitment towards adaptation and implementation of best practices.

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Case Study Background 'Xerox' trademark in 1948 Xerox was listed on the New York Stock Exchange in 1961 and on the Chicago Stock Exchange in 1990. Revenues soared from $37 million in 1960 to $268 million in 1965. Xerox acquired a majority stake in various company’s Rank Xerox in 1969 Setup R&D facility in 1969 Profits increased five-fold from $ 83 million in 1966 to $ 407 million in 1977

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Competition In the early 1980s, Xerox found itself increasingly vulnerable to intense competition from both the US and Japanese competitors. According to analysts, Xerox's management failed to give the company strategic direction. It ignored new entrants (Ricoh, Canon, and Sevin) The company's operating cost (and therefore, the prices of its products) was high and its products were of relatively inferior quality in comparison to its competitors. Return on assets fell to less than 8% and market share in copiers came down sharply from 86% in 1974 to just 17% in 1984. Between 1980 and 1984, Xerox's profits decreased from $ 1.15 billion to $ 290 million

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Average manufacturing cost of copiers in Japanese companies was 40-50% of that of Xerox Benchmarking against Japanese competitors, Xerox found out that it took twice as long as its Japanese competitors to bring a product to market, five times the number of engineers, four times the number of design changes, and three times the design costs. Japanese could produce, ship, and sell units for about the same amount that it cost Xerox just to manufacture them Xerox's products had over 30,000 defective parts per million - about 30 times more than its competitors. Benchmarking also revealed that Xerox would need an 18% annual productivity growth rate for five consecutive years to catch up with the Japanese.

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SUPPLIER MANAGEMENT SYSTEM

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INVENTORY MANAGEMENT

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MANUFACTURING SYSTEM

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MARKETING

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QUALITY

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Highly satisfied customers for its copier/duplicator and printing systems increased by 38% and 39% respectively. Customer complaints to the president's office declined by more than 60%. Customer satisfaction with Xerox's sales processes improved by 40%, service processes by 18% and istrative processes by 21%. Overall customer satisfaction was rated at more than 90% in 1991

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