Benchmarking for Lean Six Sigma Businesses or Processes for Projects

Benchmarking Presentation: In 1912, Henry Ford of Ford Motor Company watched men cut meat during a visit to a slaughterhouse in Chicago. The carcasses were hung on hooks mounted on a monorail. After each man has done his work he will push the carcass to the next station. Less than six months later, the assembly line is the first began producing the Ford Magnetos Highland Park Plant. In other words, the idea that has revolutionized modern industry in the history of the automobile and has been imported from another industry.Benchmarking is as simple concept, but much more involved in a process. Gains ultimate is that you can become the best of what you do, and to improve on this superiority.Benchmarking is a means of identifying best practices and use that knowledge to continually improve our products, services, and systems so that we increase our capacity Provide total customer satisfaction.Today our performance is not the same level of world-class as a benchmark for business. The delta is the gapBenchmarking competitive and improve our business as a result of thrust, means a business performance and a competitive advantage. Key Point: Do Not Just copy, Adapt and adopt and then AdvanceDefine Performance Objectives: What does it mean to set performance targets? A performance target is a statement of your output level of performance that will satisfy the critics of the project-To-Quality CTQ (S). It is the reduction in the forecast of defects that you intend to do to your process or product. Typically, it is stated in terms of defects per million opportunities (DPMO), and a corresponding reduction target Z-value. In the Lean Six Sigma Measurement of the phase, you determine the current process performance. In Phase Analyze tell you what the final results of the project will be Lean Six Sigma statistically by defining the goal of the project. In addition, the estimated financial benefits is due Analyze.Why it is important to define performance objectives? It is important to identify your goals for improvement in measurable terms with the aim of identifying the level of improvement that you want to achieve and to provide a focused target towards which you can direct your efforts.If I refer, performance standards are based on: Bridging the gap with competitionExceeded projected performanceSimilar competitive performance in dissimilar businessesGathering best practices from multiple sources to become better in classBecoming as good or better than a substitute product / service I did not reference, the performance targets are based on: For a process with a level of quality Sigma 3 or less, the percentage decrease of defects by 10x and over 3 Sigma level of quality, a decrease of defects% 2xIf your process Statistical Control is (or Run Chart Control Chart), the next objective of improving the performance comes from an ability to invest in facilities, equipment, scanning, etc.Corporate mandateCompliance / legalVoice of Customer (VOC), key data for better results: Be creative and think of BoxConsider of all organizations, not just corporationsReview all sectors such as private, public and NonProfitStudy national and international organizations Benchmarking is the process of finding the best methods, practices and processes, and either adopting or adapting their good character and their implementation Become the best of best.Key Point: Benchmarking is a continuous process measurement products, services and more stringent practices against competitors and / or companies known as leadersExample: In the 1980's, the Remington Rifle Company, a division of giant DuPont Corporation, had a technical problem, it struggled with. Market research showed that customers wanted the shells of bullets to be brilliant. Plant Managers pay little or no attention to this CTQ, after all Remington had the quality of weapons for a very long time. Near the plant in Arkansas was a cosmetics factory that produced Maybelline lipstick gloss cartridges roughly the same size and shape of rifle shells. Remington realized that the company may have to provide useful information and made a site visit. And so the problem was solved.Benchmarking is a continuous process processA investigation, which contains useful informationA train to learn from others; pragmatic ideasA research time, labor intensive process disciplineA viable tool, which provides information useful for the improvement of the quasi - A comparative analysis of business processes is not: once eventA investigation process, which provides simple answersCopying, imitatingQuick and easyA buzzword, is a fashion Benchmarking How are used? To compare the performance of an existing process compared to other companies best-in-class practices.Determine how these companies achieve their performance levels.Improve return levels.A performance target is determined using Zbench, in the short term, benchmarking, or defect goals.Benchmarking reduction is a process of identifying the best practices, the extent of our own methods to combat these practices, and by adapting the best practices in our own processes.Revenue & financial implications are also due for 'benefit analysis. Process Benchmarking: Example: A process of billing and invoicing. Citibank is a multiple clients. They have a robust process for billing and invoicing, their adoption process is called benchmarkingPiloting process: Implementation of solutions or plans for improving on a small scale, to find if there are any adverse impactsCost benefits When there are investments necessary for the implementation of a solution, the return on investment is calculated for deciding on the merits and got into what durationKey Point: Benchmarking is a process that helps to identify, develop Instead, and to achieve standards of excellence, standards based on the market realities. It is a process that must be used to manage a continuous process basis.Identify to BenchmarkHow toSelect process and define the default and opportunitiesMeasure current process and the ability to set goalUnderstand detailed process that needs improvement Select Industries Organization BenchmarkOutline / functions that make your list of processFormulate PerformersContact world-class organization and network with the key contact to prepare for the organization and VisitResearch you in their basement processesDevelop a detailed questionnaire to get informationSet the logistics in place and send preliminary documents to the organization visit OrganizationFeel comfortable and confident on your right homeworkFoster Atmosphere maximize resultsConclude to thank the organization and to follow up if necessary debriefing & Develop an action team to compile PlanReview comments and report visitCompile list of best practices and improvement needsStructure match action, identify the owners and proceed to phase Maintain and improve CommunicateReport out at the business and Lean Six Sigma leadersPost conclusions and / or visit report on boardEnter local server/6s newsletter on the Intranet your company database project calibration Key Point: Benchmarking is based on the integration of information from the competition, practices and the performance in decision-making and the role of communication at all levels of business.A good starting point is asking customers, suppliers and distributors whose rate as they do the best job. Larger consulting firms have built large files best-practices.Directories, annual reports, brochures and press releases are good sources of historical information, but often they are not good enough, if a company wishes to compete against one product recently introduced or Service.Watch small companies in your industry and related industries. True innovation is often small, discrete companies.Follow scheme applications. Not all the applications needed to lead to products or services. However, deposits suggest a trend towards businesses. Pattern request for information can be found in various CD-ROM and online databases.Track job changes and other industry experts. Look for answers to questions such as: Who are the competitors hired? New employees have written documents or made presentations at conferences? What is the value of their expertise to the competitor? If the company gains expertise, it will affect your position of companies? Be aware of licensing agreements. These provide useful information on where, how and when a company can sell a new product or service.Monitor contract formation and business alliances.Find learn about new practices that are your competitors save money. What does it mean if a competing insurance company has purchased thousands of laptops and portable printers? Most probably, that its claims adjusters will soon be written estimates and generating checks on the spot, saving time and overhead.Follow changes in pricing. For example, where luxury items become cheap enough for the mass market, they supplant some of the more expensive equipment, such as camcorders supplanted home when the Film cameras in the late 1980s.Be aware of social change and changes in consumer tastes and preferences that could affect the business environment. Consumers are fickle. Over the past 15 years, jogging has given way to aerobics, and now walking is the favorite leisure activity. By anticipating changing patterns, some shoe companies were able to introduce new types of athletic shoes. Key Point: In denouncing the organizations and people with new ideas and approaches, benchmarking extraordinary experience and insight often pushes thinking.Ethical conduct Breakthrough: Because the discussions between the two sides may involve benchmarking sensitive data, in theory, increasing questions about possible restraint of trade or improper conduct of the affairs, strategic planning of the Council on Benchmarking institutes and the International Benchmarking Clearinghouse urge all individuals and organizations involved in benchmarking to abide by a code of conduct based on business ethics behavior.The code is based on the principles and guidelines: In benchmarking with competitors, to establish rules of the game from the beginning, as We do not want to talk about these things or to give a competitive advantage, but we want to see where we can be mutually improve or acquire benefits. Do not talk to the competitors costs if costs are an element of competitors pricing.Do not ask for sensitive information or cause a partner of the comparative analysis suggests that sensitive data must be provided to maintain the current process . Be prepared to provide the same level of information that you request. Do not share information without prior approval from the proper authorities parties.Use two-thirds of ethics and gather data competitive blind, with input from legal counsel, to comparisons.Consult direct competitor with a counselor if no legal procedure for collecting information is neutral (eg, before contacting a direct competitor). Treat any information obtained from an internal benchmarking as a partner, the insider information. Any external use must have permission partners. Key Point: the rough part of benchmarking is not whether or how, but access to information on the practices of other companies and costsLook a similar process in the industry . How are they doing? Can we do the same?
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