Faculty of Graduates StudyPost Graduate Diploma In Business Management – 2013

Marketing Management Assignment

Group-01

M.S.Nimendra - 2013/PGDBM/081N.A.Niroshan – 2013/PGDBM/082S.Sathees – 2013/PGBDM/064W.G.G.Yasoma – 2013/PGDBM/031Sunimal de Silva – 2013/PGDBM/083Ajith Kumara – 2013/PGDBM/065

Introduction of the Study

Definition

What is Benchmarking?

Benchmarking is the process of comparing one's business processes and performance metrics to industry bests and/or best practices from other industries.

Why are others better ?How are others better ? What can we learn ? How can we catch up ? How can we become the best in our sector ?

Benchmarking isMaking Best Practices Your Daily

Practice.

Continuous method of measuring and comparing a firm’s business processes against those of another firm.

Discover performance gaps between one’s own processes and those of leading firms.

Incorporate leading firm’s processes into one’s own strategy to fill the gaps and improve performance.

Benchmarking has three main features:

What is Benchmarking?

BenchmarkingProcess

History of Benchmarking

History of Benchmarking

The term benchmarking was first used by cobblers to measure people's feet for shoes. They would place someone's foot on a "bench" and mark it out to make the pattern for the shoes.

History of Benchmarking Cont…

Traditionally, the organizations used to enhance their products and performance by focusing on their internal functional activities (Kolarik, 1995). The organization, for example, may use techniques such as Quality Function Deployment to achieve their customer satisfaction.

However, these traditional performance improvement trends seem not to be sufficient for the highly competitive markets (Juran, 1993). A significant technique facilitating improvement of organizational performance at a competitive environment is benchmarking. (Juran, 1993).

History of Benchmarking Cont…

Benchmarking was originally defined by D.T. Kearns, the CEO of Xerox Corporation, in 1981 as the continuous process of measuring products, services, and practices against the toughest competitors or non-competitors who is the leader in their industry (Kolarik, 1995).

History of Benchmarking Cont…

Why Benchmarking ?

Why Benchmarking

.

.

.

.

Cope withCompetitive

Markets

Keep Pace withScience andTechnology

Changes

InnovationIn

ManagementMethods

MeetingQuality

Standards

PerformanceImprovement

CreativeThinking

Meeting Customers

Expectations

Benchmarking

A benchmark is an organization recognized for its exemplary operational performance.

There are many benchmarks in the world including:

Toyota for

Scandinavian Airlines for

Motorola for

Intel for

Honda for

Processes

Design

Training

Service

Rapid product development

Benchmark

Benchmarking

When Benchmarking a System, Adapt What You Find,

Don’t Just Copy It

Benchmarking ≠ Copying

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Types of Benchmarking “Best Practice” studies

◦ Studies and lists of what works best Cooperative Benchmarking

◦ Measurement of key production functions, input, output and outcomes

Competitive Benchmarking Study & measurement of a competitor

Industry Group Measurements◦ Measurement of various aspects of operation

for comparison

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Advantages

Learn from others experience & practices Allows examination of present processes Ideas change & improvement Implementation / changes more likely Overall industry improvement

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Disadvantages

What is best for someone else may not suit you

Poorly defined benchmarks may lead to wasted effort and meaningless results.

Incorrect comparisons Reluctance to share information

Gap Analysis

For decades Benchmarking had set its sights on what there BEST COMPETITION was doing

In the last two decades it broadened its sight to BEST WORLD CLASS ORGANIZATION what does they do

MILESTONE – ◦TOTAL CUSTOMER SATISFACTION

BENCHMARKING: MILESTONES

BENCHMARKING AND GAP ANALYSIS

MEASUREMENT OF INTEREST

C – Capability

U – Usability

P – Performance

I – Installability

R – Reliability

A – Availability

M – Maintainability

D - Documentation

If customers are: They will feel:Because you have met their:

And they will be:

Very satisfiedDelighted

DreamsYour advocate

Enthused Loyal

SatisfiedExcited Expectations Retained/fulfilled

Contented Wishes Interested

Ambivalent IndifferentWants

AttentiveNeeds

DissatisfiedConcerned Minimum requirements Questioning

Upset Bare essentials Looking around

Very dissatisfiedAngry Worst fears Gone

Hostile Nightmares Your enemies

Customer Satisfaction Matrix

Local Example

VS

VSHow materials are purchased

How inventories are managed

How suppliers are paid

VS

How employees are trained How fast new products get to the market

How quality is managed

Recommendations for

Wijitha

Conclusion

In Benchmarking The Key is to “Adapt not Adopt” – Professor Deming

Benchmarking is a tool for total

quality management (TQM).

Benchmarking is basically learning from

others.

Top-10 Benchmarked Business Processes

Business Process RankingEMPLOYEE RECOGNITION 1PROCESS IMPROVEMENT MANAGEMENT 2PROCUREMENT PURCHASING 3MANAGEMENT OPERATIONS POLICY LEADERSHIP 4BENCHMARKING 5EMPLOYEE DEVELOPMENT TRAINING 6MARKETING 7ASSET MANAGEMENT 8BALANCED SCORECARD 9CORPORATE GOVERNANCE 10

TOP-10 Benchmarking Organizations

Organization Ranking

Xerox 1

U.S. Army 2

Corning 3

Abu Dhabi Food Control Authority 4

Internal Revenue Service 5

United Technologies 6

DynMcDermott 7

Dubai Municipality 8

Dubai Chamber of Commerce and Industry 9

Allergan 10

Any Questions?

Thank You

Give Benchmarking a

Chance - It’s Worth It.