UNIT-4

Bench marking. Need, Advantages, Limitations, Levels and Types of Benchmarking. Quality Function Deployment. Definition, Benefits and Process of QFD. Failure Mode and Effect Analysis. Explanation Examples and Steps in FMEA. ISO 900, ISO 14000 .

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Benchmarking
Benchmarking is defined as measuring our performance against that of best-in-class companies, determining how the best in-class achieve those performance levels and using the information as a basis for our own company s targets, strategies and implementation.

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Evolution of Benchmarking

Benchmarking is not a new concept. The practice of benchmarking can be seen in early 1800s when a New England industrialist, Francis Lowell travelled to England to study manufacturing at the best British factories.

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Reasons for Benchmarking

To develop strengths and reduce weakness To achieve business and competitive

objectives.
It is a powerful and effective tool when used

for right reasons.

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Advantages of bench marking

It promotes a through understanding of the

companys own process superior competitions.

It involves adaption of the practices of It helps in identifying non value added

activities.
It enables comparison of performance

measures in different dimensions on products.

It focuses on performance measures and not It helps organizations to set realistic goals
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It allows organization to define specific gaps

in performance. resources.

It provides a basis for training human

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Limitations
Best in class performance is a moving target. Benchmarking is not a panacea It is not instant

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Why benchmarking fails?

If employees fail to get involved If process improvement is not related to

competitive positioning the firms process. process

Gathering data before clearly understanding If assumed benchmarking as just one time If the scope of companies studied is narrow. If the set goals do not bridge the gap between

what is and what can be

If they do not empower employees to achieve

improvements 5/30/12