Page 141 - DMGT524_TOTAL_QUALITY_MANAGEMENT

Total Quality Management

Notes In 2008, a comprehensive survey on benchmarking was commissioned by The Global
Benchmarking Network, a network of benchmarking centers representing 22 countries.
Over 450 organizations responded from over 40 countries.
There is no specific procedure for benchmarking and organizations can design their own
method of benchmarking and hence it may vary from organization to organization.

Every organization which would like to benchmark must have clear knowledge about its
own processes, products and services before it can compare itself with another organization.

The pioneer of Benchmarking Robert Camp lists the benchmarking process in five phases.
These five phases are: planning, analysis, integration, action and maturity.
Two-tune, Baldrige Award winning AT&T, an active bench marker, has developed a
nine-step model.
The two most common forms of quantitative analysis used in metric benchmarking are
Data Envelope Analysis (DEA) and regression analysis.

Regression analysis estimates what the average firm should be able to achieve.
Benchmarking helps organizations to determine areas for future improvement to remain
competitive in the market.

Competitive analysis is an approach to goal setting used by many firms. This approach is
essentially benchmarking confined to one’s own industry.

9.9 Keywords

Benchmarking: A surveyor’s mark on a permanent object of predetermined position and elevation
used as a reference point.
Competitive Benchmarking: Competitive benchmarking is a process whereby businesses use
primary data about their competitive set and industry best practices to pin down several core
dimensions of success.
Core Competencies: A competency which is made necessary by the strategy of an organization
and is central to the making of that strategy.
Operational Benchmarking: Operational benchmarking allows organisations to evaluate various
aspects of their operations and compare them to industry standards.
Process Benchmarking: Process benchmarking is where a specific process is measured and
compared against similar processes of the organisation known to be the best for that specific
process.
Strategic Benchmarking: Involves observing how others compete. This type is usually not
industry specific meaning it is best to look at other industries.
SWOT Analysis: A study undertaken by an organization to identify its internal strengths and
weaknesses, as well as its external opportunities and threats

Technology Portfolio: A collection of observational notes, results from assessment instruments,
and copies of children’s creations in an authoring software program, such as HyperStudio.
Value Analysis: The systematic and critical assessment by an organization of every feature of a
product to ensure that its cost is no greater than is necessary to carry out its functions.

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