Benchmarking - performance and productivity measures, Operation Management

Benchmarking - Performance and Productivity Measures

Benchmarking is the practice of comparing business practice and in particular performance between companies. It has become widely used since its introduction by the Xerox Corporation in 1979. Although benchmarking was well understood prior to the introduction by Xerox it has altered in significance and approach. To benchmark derives from the comparison against a set standard. In 1979, Xerox found itself losing market share to Canon. In pursuit of the answer - why were they losing market share when they considered themselves the best company? The company decided to compare 26 of their major operational processes with the best performers.

This comparison was not directly against Canon but against other companies with similar processes. In fact they compared operational processes against service companies as well as other manufacturers. To do this they sent staff all over the world. This approach is referred to as generic benchmarking as opposed to competitive benchmarking which draws comparisons between competing companies. Xerox has claimed that they have achieved considerable benefits from this exercise: manufacturing costs reduced by 50 per cent and inventory levels reduced 40 per cent (see Xerox Corporation case study below). Since then many companies have introduced benchmarking.

Posted Date: 3/15/2013 3:01:44 AM | Location : United States







Related Discussions:- Benchmarking - performance and productivity measures, Assignment Help, Ask Question on Benchmarking - performance and productivity measures, Get Answer, Expert's Help, Benchmarking - performance and productivity measures Discussions

Write discussion on Benchmarking - performance and productivity measures
Your posts are moderated
Related Questions
Frame relay is a technology that does no error control. If a frame arrives garbled, it is dropped and frame relay does not inform the transmitter. Is this a reasonable approach?

A job shop receives an order for high precision formed parts. The cost of producing each part is approximately $20,000. The customer requires that either 4 or 5 good parts be suppl

A bank manager wants to determine the percent of time that tellers are working and idle. She decides to use work sampling, and her initial estimate is that the tellers are idle 30

Write an evaluation (500-750 words) of the situation that addresses the following: The power bases used by the leader. The influence tactics used by the leader. The leadership sty

Explain advantages of Division of Labour.  As the same worker does similar work repeatedly:- (i) It gains proficiency and skill on the job and becomes a professional. (ii

Define what is span of management. Span of Management termed as the number of subordinates working under a manager.

Which of the following is not a characteristic that distinguishes services from goods? Service jobs are unskilled A service is intangible Services are perishable Services are heter

Step 1 : It is observed that cost of transportation is to Rs. 144. Step 2: Testing the Optimality : After obtaining the initial basic feasible solution the next step is to test


LEADERSHIP DEVELOPMENT: CASE FOR ANALYSIS Alvis Corporation Kevin McCarthy is a manager of a production department in Alvis Corporation, a firm that manufactures office equip