TQM

Benchmarking
PREPARED BY:-

1- Asmaa Mahmoud Abd El Mongy Abo Hamed

2- Mohamed Ehab Khalil

Supervised By:-

DR. SHAYMAA AL-SAWABY

 1. Benchmarking Meaning,The first
company implemented it.

2. Elements of Benchmarking

3. Importance of Benchmarking

Agenda 4. Comparison between Benchmarking &

TQM

5. The Similarities & Variations between

Benchmarking & TQM

6. The possibility of applying TQM and

Benchmarking in the same company
What is
benchmarking?
Is the process of comparing your company's success to that
of other, comparable businesses to see whether there is a
performance gap that can be filled by raising your
performance. Studying other businesses can show you what
it takes to increase your company's productivity and
establish a stronger position in your sector. The process of
measuring may be within business areas or against a
competitor, industry peers, or other companies around the
world—to understand how and where the organization
needs to change in order to improve performance.
What is the first
company
implemented it?
XEROX is the first company implemented benchmarking.
Chester Carlson invented the first xerographic image in 1938 and
named the technology electrophotography.

Xerox grew rapidly until 1976, but then faced intense competition
from US and Japanese competitors, which was a collective
representative of many small coordinated problems.
 Problem:-
• ·Intense competition from US & Japanese
competitors

Causes:-
• ·Xerox's improper strategic management
• ·Ignoring competitors
• ·Centralized decision making process

XEROX • ·Inferior quality of product

• ·30.000 defective parts per million
• ·High manufacturing cost

Effects:-
• ·High operating cost
• ·Profit decreased from 1.15 billion to 290
million
• ·Fall in market share from 86% to 17%
 XEROX
1982 David became CEO and launched the program 'Leadership through quality'. He broke the main problem into its
coordinated small problems. As shown in figure below.
XEROX
Xerox made their 1. Planning- setting plan according to problems.
own five stage
2. Analysis- analyzing the data to get conclusion
process of
benchmarking. This 3. Integration- goal setting
includes following
4. Action- actions taken
stages
5. Maturity- final results
XEROX
For solving problems in various departments, Xerox started
benchmarking. Following departments went under the
process of benchmarking.

1. Benchmarking in Supplier management system

2. Benchmarking in inventory management
3. Benchmarking in manufacturing system
4. Quality benchmarking
XEROX Overall improvements
Increase in number of highly satisfied customers by 38%

Customer complaints fell by 60%

Customer satisfaction rated more than 90%

Service time reduced by 27%

Number of defects reduced by 78%

Inventory cost reduced by 2/3rd

Productivity increased by 1/3rd

Elements of Benchmarking
Importance of benchmarking
Benchmarking is a valuable quality management tool that allows organizations to compare their
performance to that of other companies.

The benchmarking process allows a team or company to determine what specific practices are helping
other departments.

benchmarking is a flexible process, it can be applied to almost any part of your business.

Here are a few additional ways benchmarking can prove beneficial to your business:
• It helps you understand how your business stacks up.
• It helps you set clear goals for your business.
• It allows you to prioritize areas that need improvement.
• It helps you track the progress of your goals.
Comparison between benchmarking & TQM
FACTORS TQM
A core definition of total quality
management (TQM) describes a
management approach to long-
term success through customer
Definition satisfaction.
&history Total quality management (TQM)
is a term that originated in the
1950s and is today used mainly
in Japan.
Customer focus, Continuous
improvement, Employee
Principles involvement, Process approach,
Data-driven decision making,
Leadership commitment,
Supplier partnerships
Benchmarking
Benchmarking is a process where you
measure company’s success against other
similar companies to discover if there is a
gap in performance that can be closed by
improving your performance.
In the early 1900's, benchmarking was still
a process of business owners studying
their competitors' techniques. However, as
mechanical engineering advanced, so did
the style of benchmarking. In the mid-
1900's, businesses began undertaking
reverse
Identification of objectives, Selection of
benchmarking partners, Data collection
and analysis, Implementation of best
practices, Monitoring and evaluation,
Continuous improvement
Comparison between benchmarking & TQM
TQM Benchmarking
TQM uses methodologies such as the
Plan-Do-Check-Act (PDCA) Cycle. This is
a four-step cycle used for continuous • Competitive benchmarking
improvement and problem-solving. It • Functional benchmarking
Methodologies involves planning, implementing, • Internal benchmarking
validating results, and acting on the basis • External benchmarking
of those results to make further • Process benchmarking
improvements. • Strategic benchmarking
Total Productive Maintenance (TPM)
Quality Function Deployment (QFD)
• Flowcharts
• Checklists • Surveys
• Statistical Process Control (SPC) • Site visits
Tools • Pareto Analysis • Performance metrics
• Root Cause Analysis (RCA) • Process maps
• Kaizen Events • Best practice analysis
• 5S: 5S is a workplace organization and • Expert interviews
visual management tool
Comparison between benchmarking & TQM
FACTORS TQM Benchmarking

• Identification of
• Improved quality of best practices
products and services • Improvement in
Advantages • Increased efficiency performance
• Better employee • Increased
engagement competitiveness
• Better customer focus • Better focus on
customers
• Cost
• Difficulty in • Time-consuming
implementation • Difficulty in finding
Disadvantages • Resistance to change comparable
• Time-consuming organizations
• Cost • Resistance to
change
 Total Quality Management (TQM) and Benchmarking are
not two words for one meaning, rather they are two
Are total quality distinct approaches to improving organizational
performance. While they share some similarities, they
management and have different areas of focus and methodologies.
benchmarking two Benchmarking is the process of comparing an
words for the organization's performance with the best practices of
same meaning? other organizations, while TQM is a management
philosophy that focuses on continuous improvement of all
organizational processes, products, and services.
Benchmarking can be used as a tool within TQM to
identify best practices and areas for improvement.
What is the similarity and difference between seat
marking and total quality management
Similarities Variations

Benchmarking and total Benchmarking is the process of comparing an organization's performance with the best
quality management aim to practices of other organizations, while total quality management is a management philosophy
improve organizational that focuses on continuous improvement of all organizational processes, products, and
performance. services.
Both approaches involve Benchmarking is an external process that involves searching for best practices outside the
using data and metrics to organization, while TQM is an internal process that involves improving processes, products,
identify areas for and services within the organization.
improvement and measure Benchmarking is a one-time or periodic process, while TQM is an ongoing process that is
progress. embedded in the organization's culture and operations.
Benchmarking and TQM Benchmarking can focus on specific areas of the organization, while TQM is a holistic
require strong leadership approach that includes all areas of the organization.
commitment, employee Benchmarking is an external process that involves comparing an organization's
engagement and a culture performance with the best practices of other organizations, while TQM is an internal process
of continuous improvement that focuses on continuous improvement of all organizational processes, products, and
to achieve success. services.
Both approaches can be used together to achieve higher levels of quality and performance
in organizations.
Is it possible to apply total quality management and
benchmarking together in one company?
Benchmarking and TQM can both be applied in one company, and they are compatible with each other. TQM
provides a framework for continuous improvement by involving employees at all levels, using data and metrics
to make decisions, and focusing on customer needs and satisfaction. Benchmarking
provides external best practices to learn from, and can be used to identify areas for improvement and set
performance goals.

Successful implementation of both approaches requires strong leadership, employee engagement and
a culture of continuous improvement. An organization can use benchmarking to identify best practices, and
then use total quality management to implement those practices and continuously improve its processes,
products, and services.
In conclusion, while benchmarking and TQM are two distinct approaches to improving organizational
performance, they can be used together in a complementary manner to achieve higher levels of quality,
efficiency, and customer satisfaction.
How Benchmarking can be used as a tool within
TQM to identify best practices and areas for
improvement.
Thanks