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We are also thankful to Prof. Sham Sharma for guiding us in every stage of this
project report, without his support it would have been very difficult for us to
prepare the paper so meaningful and interesting.
Learning is a never-ending process. The more we learn the more we feel like
learning newer things. Abraham Lincon once remarked at his achievement that
“He had counted only a small number of pebbles on the bank while the whole
ocean on the lay ocean by unexplored”. We indeed this never ending craves of
learning are the result of evaluation of present day of human beings, who had
overcome all obstacles to make this earth a happy place to live in.
We are also thankful to the librarian and the computer lab in-charge of Institute
of Productivity and management, Meerut who have helped us during the course
of this paper in difference ways.
1. INTRODUCTION………………………………………………………. 3
2. SWOT ANALYSIS……………………………………………………… 6
3. QUESTION 1…………………………………………………………….7
4. QUESTION 2…………………………………………………………….10
5. QUESTION 3…………………………………………………………….27
6. QUESTION 4…………………………………………………………… 31
7. CONCLUSIONS…………………………………………………………35
8. BIBLIOGRAPHY………………………………………………………..36
Haloid obtained all rights to Carlson's invention and registered the 'Xerox'
trademark in 1948. Buoyed by the success of Xerox copiers, Haloid changed its
name to Haloid Xerox Inc in 1958 and to The Xerox Corporation in 1961.
The strong demand for Xerox's products led the company from strength to
strength and revenues soared from $37 million in 1960 to $268 million in 1965.
Throughout the 1960s, Xerox grew by acquiring many companies and a majority
stake (51.2%) in Rank Xerox in 1969. During the late 1960s and the early 1970s,
Xerox diversified into the information technology business by acquiring Scientific
Data Systems.
Kearns quickly began emphasizing reduction of manufacturing costs and gave new
thrust to quality control by launching a program that was popularly referred to as
'Leadership through Quality'. As part of this quality program, Xerox implemented
the benchmarking program. These initiatives played a major role in pulling Xerox
out of trouble in the years to come. The company even went on to become one of
the best examples of the successful implementation of benchmarking.
By the early 1990s, many Fortune 500 companies and other major companies
were implementing benchmarking to reap the benefits it promised. Benchmarking
also became a key criterion for winning the Malcolm Balridge National Quality
Award. Truly successful practices take an additional step and use that information
to develop strategic plans and make better business decisions, propelling them to
greater success. Most quality improvement experts will tell you that in any
successful effort to make improvements, there is a continuous circle: plan, do,
check, and act. The pioneering efforts of Xerox in the field of benchmarking have
undoubtedly been the most talked about and successful of such initiatives.
Weaknesses:-
Opportunities:-
Threats:-
Intense competition
Economic slowdown
Paperless offices
Ans. There were many reasons that led to the adaptation of this program. The
whole Xerox Empire had compelling reason for seeking self-improvement. By the
mid 1970s Xerox found itself out of step with their customers and their needs.
The market had changed and so had the standards for quality. This became
evident when Japanese manufacturers established a position in the U.S. market
with inexpensive desk-top copiers and began changing the industry. In the early
1980s, Xerox found itself increasingly vulnerable to intense competition from
both the US and Japanese competitors. According to analysts, Xerox's
management failed to give the company strategic direction. It ignored new
entrants (Ricoh, Canon, and Sevin) who were consolidating their positions in the
lower-end market and in niche segments. The company's operating cost (and
therefore, the prices of its products) was high and its products were of relatively
inferior quality in comparison to its competitors. Xerox also suffered from its
highly centralized decision-making processes. As a result of this, return on assets
fell to less than 8% and market share in copiers came down sharply from 86% in
1974 to just 17% in 1984. Between 1980 and 1984, Xerox's profits decreased from
$ 1.15 billion to $ 290 million.
In 1982, David T. Kearns took over as the CEO. He discovered that the average
manufacturing cost of copiers in Japanese companies was 40-50% of that of
Xerox. As a result, Japanese companies were able to undercut Xerox's prices
effortlessly. Kearns quickly began emphasizing reduction of manufacturing costs
and gave new thrust to quality control by launching a program that was popularly
referred to as 'Leadership through Quality.' As part of this quality program, Xerox
implemented the benchmarking program. These initiatives played a major role in
pulling Xerox out of trouble in the years to come. The company even went on to
become one of the best examples of the successful implementation of
benchmarking.
In line with the best practices, Xerox reduced the number of vendors for the
copier business from 5,000 to just 400.
The first major payoff of Xerox's focus on benchmarking and customer satisfaction
was the increase in the number of satisfied customers. Highly satisfied customers
ANS:
What is benchmarking?
The term benchmark comes from surveying where it was used to denote a notch
or mark representing a given altitude and against which other heights could be
calibrated or 'benchmarked', since when it has come to mean any standard
against which something is compared; and some of the leading exponents in
business include Xerox and GE. In business terms there are numerous definitions
of benchmarking, but essentially it involves learning, sharing information and
adopting best practices to bring about step changes in performance. So, at its
simplest, benchmarking means:
What it is not
Although benchmarking involves making comparisons of performance, it is not:
just competitor analysis - benchmarking is best when it involves
collaboration
comparison of league tables - the aim is to learn about the circumstances
and processes that underpin superior performance
a quick fix, done once for all time - benchmarking projects may extend over
a number of months or even years, and it is vital to repeat them
periodically so as not to fall behind as the background environment
changes
catching up - in rapidly changing circumstances, good practices become
dated very quickly and anyway you want to gain competitive, or possibly
prime mover, advantage
copying - the fact that others are doing things differently does not
necessarily mean they are better
spying or espionage - openness and honesty are vital for successful
benchmarking
The underlying reason for benchmarking is to learn how to improve your business
processes and thereby increase your competitiveness. Organizations choose to
benchmark outstanding companies whose business processes are analogous to
their own - even if they are in different industries! Benchmarking allows you to
identify those practices that have facilitated those successful companies' superior
performance and that can be adapted to your own business. Accordingly,
benchmarking is an operational process involving continuous learning and
adaptation which enables you to improve your organization’s competitive
position.
This is why it is of little value to 'steal' from others because you will not have
explored whether and where their business practices are relevant or transferable
to yours.
Types of Benchmarking
There are a number of different types of benchmarking, as summarized below:
Type Description Most Appropriate for
the Following Purposes
Strategic Where businesses need to improve -Re-aligning business
Benchmarking overall performance by examining the strategies that have
long-term strategies and general become inappropriate
approaches that have enabled high-
performers to succeed. It involves
considering high level aspects such as
core competencies, developing new
products and services and improving
capabilities for dealing with changes in
the external environment. Changes
Has the work process to be selected been flowcharted? A good first step in
gaining an overview of the entire process is to flowchart it. This will help
identify problem areas and locate potential trouble areas. Then establish
the critical measurements by which to compare future progress.
From which sources could an effective partner list most likely be created?
Research which published sources (industry periodicals, annual reports,
etc.) would yield the most useful, accurate and up-to-date information.
Find out which reliable individuals or groups (industry experts, watchdog
groups, etc.) could be consulted to expand the list. A good source to consult
is a library, either corporate or public. Librarians usually are eager to help in
such efforts.
Which of the preliminary organizations selected are really "the best of the
best"? Determine which prospective partners truly are the benchmarks for
your organization.
Are the systems of the selected organizations really comparable? Select the
organizations with practices that are the most compatible with yours.
This step involves creating a plan for collecting data from selected targets,
conducting site visits and creating a site visit report. The correct implementation
of this step will result in data that can be used directly to enhance your
organization's performance. Incorrect implementation of this step could result in
data that is useless or inadequate to your purposes. Consider the following
questions:
Which are the best sources of practice data? Decide which combination of
the four types of sources-internal, published, external or original research-
would yield optimal results.
Have the best internal sources been consulted? Good sources to consult
are your organization's library and other internal groups or teams.
Have the best external sources been consulted? You can acquire significant
information from professional organizations dealing with the business of
your target organizations. You can also gain valuable information by
contacting industry experts and independent consultants.
Has original research been carried out? Identify the appropriate contact person of
each benchmarked organization. Make sure to notify all contacts by telephone,
Upon finishing step 3, your organization will have complete, accurate and relevant
data with which to compare its own processes with "the best of the best."
This step involves analyzing the data collected, discovering to what degree
present performance lags behind the best in each area and combining the best
features from the best practices into an ideal process. The correct
implementation of this step will result in a clear picture of your processes in
comparison with others in your business or industry. The incorrect
implementation of this step could result in vague information that would not
ultimately be useful in improving your operations. Consider the following
questions:
How can the data compiled in step 3 be most effectively analyzed? Make
sure to properly analyze the results of the benchmarked organization(s) in
terms of output and customer satisfaction. Also analyze thoroughly the
results in terms of the work practices leading to them. Express both results
quantitatively.
How does each best practice compare with your organization's practice for
each procedure involved? Create a chart that compares the benchmarked
organization's practice with your own. Have the correct measures been
employed for comparison (e.g., cost, speed, ease of use)? Has the
difference between the benchmarked organization's practice and your own
been expressed in quantitative terms?
How can the best practices from these sources be combined? The best
practice for each of the procedures involved should be combined into a
After you've accomplished step 4, relevant features from each of the best
practices will combine into an ideal practice that can be implemented within
budgetary and other constraints of your organization.
During this step, your team will examine your organization's past performance in
relation to its competitors, forecast potential change in your industry and project
future performance, both with and without the proposed benchmarking changes.
The correct implementation of this step will give management a clear idea of its
options and allot it a realistic conception of the potential benefits of adopting the
benchmarking practices. An incorrect implementation of this step will give
management an incomplete or inaccurate picture of its options. Consider the
following questions:
What have been the industry trends of the recent past? Determine the
measure (e.g., revenues, productivity), related to the practice being
benchmarked, by which your organization can most appropriately be
compared to others.
Upon completing step 5, you will have identified the quantitative benefits of
implementing the proposed benchmarking changes.
This step involves communicating the benchmarking results and their implications
to significant audiences in the organization and motivating them to carry out
changes. The correct implementation of this step will result in a complete
understanding by the target audiences of the necessity for changes in the
processes involved and a desire to carry them out. Incorrect implementation of
this step will leave both management and employees confused or inadequately
informed, reducing the potential for effective change. Consider the following
questions:
Step 6 will ensure that the advantages of change have been explained to the
parties involved in order to motivate them to carry it out.
This step involves revising goals to close the performance gap determined in step
5 and achieving consensus on those goals. The correct implementation of this
step will create realistic and unambiguous new standards for the processes
involved. Incorrect implementation of this step could create poorly understood or
unrealistic standards that would only increase the frustration level of both
management and employees. Consider the following questions:
What impact will the revised goals have within the organization? Some
departments may need to be reorganized, and some employees' positions
will need to be redefined, created or eliminated. Also, some lines of
authority may need to be altered. Analyze how the revised goals will impact
departments not targeted for change. How will these changes be justified
to the parties affected?
What impact will the revised goals have outside the organization? Try to
ascertain what effect the changes will have on customers and suppliers.
Then decide in what detail they should be informed of changes and how to
present the changes to generate support rather than anxiety.
Step 7 establishes clear-cut goals that management has approved and that all
employees understand.
This step establishes the step-by-step plan designed to bring about the goals
created and approved in step 7. Incorrect implementation of this step could result
in vague procedures which would either be rejected by management or would
prove unworkable if approved. Consider the following questions:
Has the procedure been prepared? Break down all tasks into
comprehensible steps, with specified results. Then put the tasks in
sequence. Determine which resources are needed to accomplish the tasks.
Has the implementation plan been printed and displayed? Create the
complete plan in printed form. Display the plan so that tasks,
responsibilities and deadlines can be clearly seen and understood.
Upon completing step 8, management has approved the specifics of the plan,
appropriate individuals have been empowered to carry it out, and every individual
This step involves executing the approved best-practice procedures and the day-
to-day monitoring of changes. The correct implementation of this step will result
in a closely watched process in which deviations from the plan will be corrected
and the ultimate goals achieved. Incorrect implementation of this step could
result in inaccurate or spotty measurement, leading to poor control of the process
and disappointing overall results. Consider the following questions:
Have timeline charts been created? Make sure that the charts accurately
reflect the factor to be measured over the selected period of time.
Have control charts been created? Charts must accurately measure the
factor to be controlled (e.g., unit cost, quantity per hour) over the selected
period of time.
Has any variance from the plan been dealt with effectively? Appropriate
action needs to be taken as soon as deviations are detected. Keep lines of
communication open to all affected parties, providing feedback on the
process.
This step ensures the organization remains on the cutting edge by continuously
evaluating the benchmarked practices and reinstituting the benchmarking process
Has a plan been developed for recalibrating? The need for periodic
recalibration should be communicated to all levels of the organization.
Decide whether the new benchmarking process will be complementary to
the previous one or will represent a new area of improvement.
After completing step 10, the organization will understand when and how it needs
to recalibrate benchmarks and will never put itself at risk by becoming
complacent.
Ans:
Xerox defined benchmarking is finding and implementing best practices that lead
to superior performances of an organization. Xerox developed its own
benchmarking model. This model involved tens steps categorized under five
stages - planning, analysis, integration, action and maturity
The main goal of benchmarking is to identify the weaknesses within an
organization and improve upon them, with the idea of becoming the "best of the
best". The benchmarking process helps managers to find gaps in performance and
turn them into opportunities for improvement.
The five-stage process involved the following activities:
Integration: Establish necessary goals, on the basis of the data collected, to attain
best performance; integrate these goals into the company's formal planning
processes. This stage determines the new goals or targets of the company and the
way in which these will be communicated across the organization.
Supplier Management System- Xerox found that all the Japanese copier
companies put together had only 1,000 suppliers, while Xerox alone had 5,000. To
keep the number of suppliers low, Japanese companies standardized many parts.
Often, half the components of similar machines were identical. To ensure part
standardization, Japanese companies worked closely with their suppliers. They
frequently trained vendor's employees in quality control, manufacturing
automation and other key areas. Cooperation between the company and the
vendor extended to just-in-time production scheduling, i.e. delivery in small
quantities, as per the customer's production schedule.
Largely unheard of in the business world until the mid-1990s, when Xerox Corp.
used it to enhance its competitiveness, benchmarking has evolved to become an
essential element of the business performance management (BPM) toolkit and a
key input to financial and business improvement efforts. Despite this, it remains
one of the most widely misunderstood improvement tools. The word means
different things to different people, and, as a result, benchmarking projects all too
frequently fail to deliver on their promise of real results.
"If we don't change our direction, we might end up where we're headed", says a
Chinese proverb. Benchmarking is a direction-setting exercise, and it is nothing
more than a quality tool, just one of many ways to improve and become more
productive.
All these have been said, is our strongly belief that –because quality is becoming
the hallmark for both products and services now-a-day, benchmarking has a very
powerful potential and it can be used as a valid strategy for the long term, taking
into account the fact that improvement must not be a one-time project
Book: -
Web addresses: -
http://www.xerox.com
http://www.xeroxcorp.com
www.scribd.com
http://tutor2u.net/business/strategy/benchmarking.htm
http://management.about.com
http://www.qualitydigest.com/feb/bench.html