Quality Management
for Organizational
Excellence
Lecture/Presentation Notes
By:
Dr. David L. Goetsch and Stanley Davis
Based on the book
Quality Management for Organizational Excellence
(Sixth Edition)
Quality Management, 6th ed.
Goetsch and Davis
1
© 2010 Pearson Higher Education,
Upper Saddle River, NJ 07458. • All Rights Reserved.
Twenty:
Benchmarking
MAJOR TOPICS
 Benchmarking Defined
 Benchmarking versus Reengineering
 Rationale for Benchmarking
 Prerequisites to Benchmarking
 Obstacles to Successful Benchmarking
Quality Management, 6th ed.
Goetsch and Davis
2
© 2010 Pearson Higher Education,
Upper Saddle River, NJ 07458. • All Rights Reserved.
Twenty:
Benchmarking
(Continued)
Major Topics Continued
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Role of Management in Benchmarking
Benchmarking Approach and Process
Making Full Use of Benchmarking Data
Perpetual Benchmarking
Benchmarking Resources
Quality Management, 6th ed.
Goetsch and Davis
3
© 2010 Pearson Higher Education,
Upper Saddle River, NJ 07458. • All Rights Reserved.
Twenty:
Benchmarking
(Continued)
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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.
Quality Management, 6th ed.
Goetsch and Davis
4
© 2010 Pearson Higher Education,
Upper Saddle River, NJ 07458. • All Rights Reserved.
Twenty:
Benchmarking
(Continued)
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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.
Quality Management, 6th ed.
Goetsch and Davis
5
© 2010 Pearson Higher Education,
Upper Saddle River, NJ 07458. • All Rights Reserved.
Twenty:
Benchmarking
(Continued)
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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.
Quality Management, 6th ed.
Goetsch and Davis
6
© 2010 Pearson Higher Education,
Upper Saddle River, NJ 07458. • All Rights Reserved.
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.
Quality Management, 6th ed.
Goetsch and Davis
7
© 2010 Pearson Higher Education,
Upper Saddle River, NJ 07458. • All Rights Reserved.