Premium Essay

Benchmarking: a Permanent Process for Excellence

In: Business and Management

Submitted By jmu1291
Words 1146
Pages 5
Benchmarking: A permanent Process for Excellence

Benchmarking is a process in which organizations evaluate various aspects of their processes in relation to best practices, usually within their own sector. It is also a process of identifying other organizations that are best at some facet of our operations and then modeling our organization after them (Operations Management, 9/e, Jay Heizer & Barry Render). It selects a demonstrated standard of performance that represents the very best performance for a process or activity. Benchmarking is `the continuous process of measuring products, services and practices against the toughest competitors or those companies recognized as industry leaders,
(that is) ... the search for industry best practices that will lead to superior performance (Camp,
1989, 10). According to these definitions benchmarking helps organizations increase their performance. They compare and measure their policies, practices, philosophies, and performance measures against those of high-performing organizations. Benchmarking could be a onetime event but rather a continuous process in which organizations continually seek to challenge their practices. It is a continuous, systematic process of measuring products, services and practices against organizations regarded to be superior with the aim of rectifying any performance ``gaps’’ because of the existence of strong dynamics in the current business world. The aim of benchmarking is to identify competitive targets which render the weak points of the benchmarking organization visible and to establish means of improvement. In other words, it is not to find out ``by how much others are doing better but, rather, how they make it to do better in certain areas'' (Horvath and Herter).
Essay Two
There are steps in developing benchmarks. These are determining what to benchmark, forming a...

Similar Documents

Premium Essay

Statement of Purpose

...worse by not taking care of the nature then to use nature positively is the only way for us to save our planet. But I always wondered why we could not still use these sources for all our needs. But I knew if I had to go into the root of this thing, my aspiration should be coupled with the strong technical base and other necessary dependent aspects. In my third year I took course on “Renewable Energy” that gave me knowledge about different kinds of renewable energy systems. The course structure covered major part of it - Solar Energy, Wind Energy and Bio-Energy etc. And it was more like the base for my future endeavor. Fortunately having centre of Excellence in Energy in our college (Indian Institute of Technology Rajasthan) gave me several opportunities to get exposure of Energy field. In the 5th semester, The Centre of Excellence in Energy at IIT Rajasthan conducted a Renewable Energy Consortium in 2010 in which a presentation on “Energy from Waste” was delivered. I was one of the students who presented it to the participants from various reputed academic institutions and industries from India as well as various other countries. In this consortium, Director of IIT Rajasthan Prof. P K Kalra told us very precious thing that - for designing any system 3 E‟s are very important- Efficiency, Economy,...

Words: 1673 - Pages: 7

Premium Essay


...Measuring Business Excellence Sustaining and transferring excellence: A framework of best practice of TQM transformation based on winners of Baldrige and European Quality Awards Ian McDonaldMohamed ZairiMohd Ashari Idris Article information: To cite this document: Ian McDonaldMohamed ZairiMohd Ashari Idris, (2002),"Sustaining and transferring excellence", Measuring Business Excellence, Vol. 6 Iss 3 pp. 20 - 30 Permanent link to this document: Downloaded on: 16 October 2015, At: 16:13 (PT) References: this document contains references to 10 other documents. To copy this document: The fulltext of this document has been downloaded 1354 times since 2006* Downloaded by Anglia Ruskin University At 16:13 16 October 2015 (PT) Users who downloaded this article also downloaded: Masood Abdulla Badri, Hassan Selim, Khaled Alshare, Elizabeth E. Grandon, Hassan Younis, Mohammed Abdulla, (2006),"The Baldrige Education Criteria for Performance Excellence Framework: Empirical test and validation", International Journal of Quality & Reliability Management, Vol. 23 Iss 9 pp. 1118-1157 Tito A. Conti, (2007),"A history and review of the European Quality Award Model", The TQM Magazine, Vol. 19 Iss 2 pp. 112-128 http:// S. Wongrassamee, J.E.L. Simmons, P.D. Gardiner, (2003),"Performance measurement tools: the......

Words: 6716 - Pages: 27

Premium Essay

Total Quality Management

...Chapter - 1 Concept of Quality and TQM Dr. Shyamal Gomes “Quality is not an art, it is a habit” - Aristotle Introduction: Till 300 years ago, people used the power of their own muscles, animals or the force of wind and flowing water to do all works. With the invention of the ‘steam engine’ they got a powerful method of running their machines. This provided a tremendous boost to Industry. Goods started getting produced in larger quantities using machines. This led to the beginning of the factory system. The significant change from handmade goods to machine-made goods, which began in Britain in 18th century, is known as the Industrial Revolution. Why it was called Revolution? Because of the large scale changes it brought about our economy, society and culture. IR soon spread to other nation like Germany, France, Portugal. As these countries became industrialised, they needed two things: 1. Raw materials for manufacturing and 2. New markets to sell the goods they made. They found both raw materials as well as new markets to sell their goods in the nonindustrialised countries of Asia and Africa. So they started annexing to meet the needs of their new factories. Soon they became jealous of each other, and wanted their own empires to grow. They started fighting among themselves. This finally led to a great war in which several nations of the world were involved. It came to be known as World War- I (August 1914-1918). Millions of soldiers and other people were killed or......

Words: 3905 - Pages: 16

Premium Essay

Supply Chain Management

...of operations were successfully used to scientifically manage production lines and warehouse operations. These ideas, however, led to exaggerated business processes that transitioned into “running a business by the stopwatch” with employers treating human employees as if they were highly reliable, predictable machines to be monitored and controlled. Over time, the workplace’s view of performance measurement became more humane and these exaggerated types of monitor and control methods fell out of favor, replaced by a focus on measuring a business’ performance rather than that of the individual. Throughout the last decade, companies have expended significant amounts of time and effort to re-engineer their supply chains through business process change and technology focused on implementing integrated Supply Chain Management (SCM) principles....

Words: 8425 - Pages: 34

Premium Essay

Tqm Lecture

...2.2 IMPLEMENTATION OF THE TQM The TQM Process begins with management and, most important, the CEO’s commitment. Leadership effectiveness is essential during every stage of the implementation process and particularly at the start. In fact, indifference and lack of involvement by management are frequently regarded as the main reasons for the failure of quality improvement programs and activities. If management has not been properly educated in the TQM concepts, that should be done right away. In addition to formal education, managers should visit successful TQM business organizations, read selected articles and books, attend seminars and conferences, and join professional organizations for quality assurance. Timing of the implementation process is very important. Is the business organization ready to embrace and adopt the total quality journey? There may be some foreseeable problems, such as a reorganization, change in management personnel, interpersonal conflicts, a current crisis, or a time consuming activity. These problems may postpone implementation to a more conducive time. Next stage is the organization of the quality council. Initiation of these duties is an important part of the implemetation of TQM. The formulation of core values, a vision statement, a mission statement, and a quality policy statement, with input from all employees, should be first undertaken. The active involvement of managers and supervisors is very important to the success of the TQM activity...

Words: 1805 - Pages: 8

Premium Essay


...Measuring Business Excellence Performance measurement tools: the Balanced Scorecard and the EFQM Excellence Model S. WongrassameeJ.E.L. SimmonsP.D. Gardiner Article information: To cite this document: S. WongrassameeJ.E.L. SimmonsP.D. Gardiner, (2003),"Performance measurement tools: the Balanced Scorecard and the EFQM Excellence Model", Measuring Business Excellence, Vol. 7 Iss 1 pp. 14 - 29 Permanent link to this document: Downloaded on: 14 April 2015, At: 10:28 (PT) References: this document contains references to 27 other documents. To copy this document: The fulltext of this document has been downloaded 13506 times since 2006* Users who downloaded this article also downloaded: Joaquín Gómez Gómez, Micaela Martínez Costa, Ángel R. Martínez Lorente, (2011),"A critical evaluation of the EFQM model", International Journal of Quality & Reliability Management, Vol. 28 Iss 5 pp. 484-502 Downloaded by MIDDLESEX UNIVERSITY At 10:28 14 April 2015 (PT) Michael Trevor Hides, John Davies, Sue Jackson, (2004),"Implementation of EFQM excellence model self-assessment in the UK higher education sector – lessons learned from other sectors", The TQM Magazine, Vol. 16 Iss 3 pp. 194-201 http:// Andy Neely, Mike Gregory, Ken Platts, (1995),"Performance measurement system design: A literature review and research agenda",......

Words: 8884 - Pages: 36

Premium Essay

Employee Motivation

...Executive Summary Adapt + Evolve = Survive If modern organizations are to survive, these must believe and put into practice the above equation which results in the overpowering of their competition. To have a Competitive Edge, firms must angle themselves towards Innovation which Myers and Marquis (1969) defined as “….. not a single action but a total process of interrelated sub processes. It is not just the conception of a new idea, nor the invention of a new device, nor the development of a new Market. The process is all these things acting in an integrated fashion.” Since the inception of HNB Assurance PLC (HNBA) in 2001, company is considered the fastest growing composite insurance company within the Sri Lankan insurance domain. The rationale of this report is to identify how effective HNBA is in encouraging innovation for improvement of the processes, products and the services rendered to customers. The primary step of analyzing this fact is to identify the methods utilized to encourage, capture and manage ideas until successful implementation. The methods available and the inadequacy of methods employed are discussed in Task 01. To analyze the effectiveness further, a survey was carried out involving a sample of employees in different levels of the organization. A questionnaire was furnished which included aspects such as organization climate, current performance, policies and procedures adopted and the cognitive skills of the employees in encouraging innovation.......

Words: 11333 - Pages: 46

Premium Essay

Abc Ltd

...Executive summary This report identifies and analyses the management challenges outlined in the case study of Service Adhesives Ltd. The research draws attention to how Service Adhesives traditional corporate structure, outdated strategies and failure to implement qualitative initiatives leant to their reclining competitive advantage in their industry and the slowdown of their profit margins. The report finds that Service Adhesives prospects in their current operations are limited but with their renewed commitment to effect radical improvements to their organisation then operational excellence is attainable. It is recommended that Service Adhesives revisits the qualitative initiative of total quality management (TQM) as this method encompasses everyone and every function of the organisation. It uses holistic approach to long term success that views continuous improvement as a process and aims to transform the organisation through progressive changes Table of Contents 1. Introduction......................................................................................................................3 1.1 Background of Service Adhesives..........................................................................3 1.2 Background of operations management..................................................................3 2. Orientation.......................................................................................................................4 2.1 Literature......

Words: 2668 - Pages: 11

Premium Essay


...perception of quality, Translating needs into requirements, customer retention. Dimensions of product and service quality. Cost of quality. UNIT II PRINCIPLES AND PHILOSOPHIES OF QUALITY MANAGEMENT 9 Overview of the contributions of Deming, Juran Crosby, Masaaki Imai, Feigenbaum, Ishikawa, Taguchi techniques – introduction, loss function, parameter and tolerance design, signal to noise ratio. Concepts of Quality circle, Japanese 5S principles and 8D methodology. UNIT III STATISTICAL PROCESS CONTROL AND PROCESS CAPABILITY 9 Meaning and significance of statistical process control (SPC) – construction of control charts for variables and attributed. Process capability – meaning, significance and measurement – Six sigma concepts of process capability. Reliability concepts – definitions, reliability in series and parallel, product life characteristics curve.Total productive maintenance (TMP) – relevance to TQM, Terotechnology. Business process re-engineering (BPR) – principles, applications, reengineering process, benefits and limitations. UNIT IV TOOLS AND...

Words: 15671 - Pages: 63

Premium Essay

Nissan Cranston Case Study

...PMI/ACA/03/ASC(14)/001Rev. No.:0PGSMASSIGNMENT COVERSECTION A: PERSONAL PARTICULARS (PLEASE USE BLOCK LETTERS) SECTION A: PERSONAL PARTICULARS (PLEASE USE BLOCK LETTERS) Programme | MBA PGSM | Module Subject: | OPERATION MANAGEMENT | Module code: | OPS 600 | Name of Lecturer: | DR. JEREMY TAN | Assignment title: | ASSIGNMENT 1 – INDIVIDUAL(4979 words) | Assignment Submission date | Name of Group Members | Extension date agreed (Written approval from Mantissa office) | Actual Late submission date | 10TH MAY 2014 | NGU PEI PEI @ PEGGY MBA-S1404-0432 | N/a | N/a | Explanation for Late submission (if applicable) | N/a | Interim mark awarded | | IMPORTANT: | 1. All completed assignments must be accompanied by PGSM front cover sheet when submitted. 2. Students are required to submit their work through MORE Portal to ensure the originality of their work. 3. All references must be fully cited in Harvard/ APA notation. 4. Plagiarism in any form will result in severe penalties. 5. Work submitted within up to 7 calendar days late = 10 marks subtracted. 6. Work submitted up to 10 calendar days late = 20 marks subtracted. 7. Work submitted more than 10 calendar days late = 1 marks awarded. | Declaration: I declare that a) No part of this assignment has been copied from any other person’s work except where due acknowledgement is......

Words: 5790 - Pages: 24

Premium Essay

Tqm, Total Quality Management

...08AA801 TOTAL QUALITY MANAGEMENT 3 0 0 100 UNIT – I INTRODUCTION 9 Definition of Quality, Dimensions of Quality, Quality Planning, Quality costs - Analysis Techniques for Quality Costs, Basic concepts of Total Quality Management, Historical Review, Principles of TQM, Leadership – Concepts, Role of Senior Management, Quality Council, Quality Statements, Strategic Planning, Deming Philosophy, Barriers to TQM Implementation Definition of Quality QUALITY  A high degree of excellence  Electronic gadgets by SONY  Suiting’s by RAYMOND  Storewel by GODREJ  Aircraft Engines by ROLLS ROYCE  Degree to which a set of inherent characteristic fulfils requirements  Degree – poor / good/ bad  Inherent – existing in something as a permanent characteristic eg. Coal from India, Australia  Characteristic – Can be Qualitative / Quantitative  Fulfilling – satisfying / meeting the requirements  Requirements – needs, wants ,desire   Conformance to specifications - as per JOSEPH JURAN Quality – Customers’ perspective  Fitness for use - as per PHILIPS CROSSBY: how well the product function supposed to be  Quality of Design : Designing Quality characteristics into a product / Service    for eg. Cars from Mercedes Benz and Ford Motors are equally ‘fit for use’ but with different design dimensions Machineries from England and Germany are rugged and robust design whereas Japanese machines are high performance with limited life span say, 5 years Quality is......

Words: 5019 - Pages: 21

Free Essay


...HE, President Mwai Kibaki, presides over the official ground breaking of Konza Technology City. January 2013 2 0 1 7 1 2 Hon. Samuel L.Poghisio, EGH, MP Minister for Information and Communications Minister’s Statement Access to information is crucial to economic growth. Information and communications technology offer a powerful tool that, if deployed equitably, can ensure citizens are empowered and Government can deliver services more effectively. Information is vital for the efficient delivery of public and private sector product and services that are responsive to the needs of citizens and businesses as well as capacity creation. For a variety of reasons (economic and policy), developing countries like Kenya are less equipped to take advantage of the potential in ICT to stimulate growth, and are likely to fall behind advanced economies. The Kenya ICT Master Plan is therefore not designed in isolation, given that there is evidence from developed countries that investment in ICT facilitates economic growth by increasing productivity. As the Kenya Government ensures an enabling ICT environment and regulatory framework, this plan aims at stimulating the setup of ICT-related businesses to enhance employment creation. At the heart of this document is a strategic intent to develop a robust ICT sector that will enhance economic growth through creation of businesses and hence employment. In the execution of this plan, Kenya will become a leading ICT......

Words: 4766 - Pages: 20

Premium Essay

Cct 355 E-Business Technologies

...CCT 355 E-Business Technologies  Division of Labour We have divided up the entire work load into five main stages, with the following break-down: • Analyze: For this part of the report, firstly, each group member studied the case as well as the change primer to get a detailed understanding of the problem at hand. Secondly, each group member has spent time with the game, experimenting with the tactics and their consequences. A key aspect of this component is conducting interviews of the Management. The list of departments interviewed was split up based on the following break-down: Tarek: Administration Department Kevieon: Marketing Timur: Manufacturing, R&D • Plan list of adequate tactics Tarek: Summarize the change primer with additional notes. Timur: roughly break down the list of all available tactics into the 7 stages outlined in the primer. • Implement tactics Kevieon: enter the available tactics into the game in various order. • Evaluate tactics used Collective activity, group discussion of tactics used  Interviews Administration Maurice Gagnon - CEO • Very worried about present managerial state • Need a leader • Not happy with Brian • Thinking about coming out of retirement • Company changed a lot since Brian took over • Company may have grown too much • Likes Brians cost containment initiatives • Market has changed • Company should be doing better • Company has great resources • Bit performing as well as competitors • Need......

Words: 2956 - Pages: 12

Premium Essay


...of the 21st century, what follow is innovation, globalization, and a new culture that organizations need to adapt constantly to meet new market situations and competitive business world. "TQM refers to a management process and set of disciplines that are coordinated to ensure that the organization consistently meets and exceeds customer requirements. It allows organizations to survive the global business competition and allows for a continuous improvement (kaizen) to the needs of the rapidly changing world by having organizations move from the current way of doing things to a new and possibly different way of doing things based on systematic management of data of all processes and practices that eliminates waste. TQM require engagement of all divisions; departments and senior management to organize all its strategy and operations around customer needs and develops a culture that allows employee participation. For service organizations, TQM has become a philosophy of management that is driven from the continuous improvement of customer satisfaction that offers meaning to an organization existence in delivering meaningful services to customers and satisfaction and growth to members of the organization. It is from this premises that TQM strategy is to achieve excellence in quality service, low cost, high productivity and organizational effectiveness [Evans, J & Lindsay, W. 2008]. LITERATURE REVIEW It has been since the 1940’s that well-known advocates of TQM established......

Words: 2527 - Pages: 11

Premium Essay

Caterpillar Malcolm Baldrige Award

...1-4 Figure 1-5 Figure 1-6 Figure 1-7 Figure 1-8 2: Strategic Planning 3: Customer and Market Focus 4: Measurement, Analysis, and Knowledge Management Measurement Architecture Sources & Uses of Comparative Data Information Systems Knowledge Management Approaches . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Figure 5-1 Figure 5-2 Figure 5-3 Figure 5-4 Figure 5-5 6: Process Management Customer Listening Approaches Customer Contact Mechanisms Customer Survey Approaches . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Figure 4-1 Figure 4-2 Figure 4-3 Figure 4-4 5: Human Resource Focus Strategic Planning Process Strategies and Action Plans Performance Projections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Figure 3-1 Figure 3-2 Figure 3-3 30 Compensation Systems Performance and Development Process/Career Management Training and Delivery Methods Health & Safety Ergonomics Employee Benefits and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Figure 6-1 Figure 6-2 Figure 6-3 7: Business Results Leadership Direction Communication Processes...

Words: 39947 - Pages: 160