Quality Management for Organizational Excellence Lecture/Presentation Notes

1. Quality Managementfor Organizational ExcellenceLecture/Presentation Notes By: Dr. David L. Goetsch and Stanley Davis Based on the book Quality Management for Organizational Excellence (Sixth Edition)

2. Twenty:Benchmarking MAJOR TOPICS • Benchmarking Defined • Benchmarking versus Reengineering • Rationale for Benchmarking • Prerequisites to Benchmarking • Obstacles to Successful Benchmarking

3. Twenty:Benchmarking(Continued) • Role of Management in Benchmarking • Benchmarking Approach and Process • Making Full Use of Benchmarking Data • Perpetual Benchmarking • Benchmarking Resources Major Topics Continued

4. Twenty:Benchmarking(Continued) • Benchmarking is a process for comparing an organization’s operations or processes with those of a best-in-class performer. • The objective of benchmarking is major performance improvement. • Benchmarking focuses on processes and practices, not products. • Benchmarking is done between consenting organizations.

5. Twenty:Benchmarking(Continued) • Benchmarking partners are frequently from different industries. • Benchmarking is a component of total quality. • Benchmarking must be approached in an organized, planned manner, with the approval and participation of top management. • Benchmarking teams must include those who operate the processes.

6. Twenty:Benchmarking(Continued) • Benchmarking is not restricted within industry boundaries, but only to best-in-class processes. • It is necessary for the benchmarker to understand its own process before comparing it with another. • Because best-in-class is dynamic, benchmarking should be seen as a never-ending process. • Management has a key role in the benchmarking process, including commitment to change, making funds available, authorizing human resources, being actively involved, and determining the appropriate level of disclosure.

7. Twenty:Benchmarking(Continued) • The goal of benchmarking is to become best-in-class, not simply improved. • The intent of benchmarking is to replace an inferior process with one rated best-in-class or to radically improve a process, bringing it up to best-in-class performance—and then to surpass best-in-class. • A number of obstacles to successful benchmarking exist, including internal focus, overly broad or undefined objectives, unrealistic timetables, improper team composition, failure to aim at best-in-class, diverted team emphasis, insensitivity toward the partner, and wavering support by top management.