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XEROXS BENCHMARKING

MODELGROUP 5

JOHN GEORGE

VIJESH V.M.JOMY JOSEPH

MIDHUN NOBLE

RIA JOSE

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ABOUT XEROX

History goes back to 1938 when Chester Carlsonmade the first xerographic image in the US.

In 1944, the Battelle Memorial Institute in

Columbus, Ohio, contracted with Carlson torefine his new process, which Carlson called'electrophotography.

Haloid Company, maker of photographic paper,

approached Battelle and obtained a license todevelop and market a copying machine based onCarlson's technology.

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ABOUT XEROX

Haloid obtained Carlson's invention and registered the'Xerox' trademark in 1948.

Haloid changed its name to Haloid Xerox Inc in 1958,and to The Xerox Corporation in 1961.

Xerox acquired a majority stake (51.2%) in Rank Xeroxin 1969.

Xerox diversified into the information technologybusiness by acquiring Scientific Data Systems

In 1969, it set up a corporate R&D facility, the Palo Alto

Research Center (PARC). As Xerox grew rapidly, a variety of controls and

procedures were instituted and the number ofmanagement layers was increased during the 1970s.

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CIRCUMSTANCES THAT LEAD TO

LEADERSHIP THROUGH QUALITY Increase in number of management layers during 1970s

slowed down decision-making and resulted in major delaysin product .

In 1980s Xerox's management failed to give the companystrategic direction. It ignored new entrants like Ricoh,Canon, and Sevin.

The company's operating cost was high and its productswere of relatively inferior quality .

Xerox also suffered from its highly centralized decision-

making processes. In 1982, David T. Kearns took over as the CEO. He

discovered that the average manufacturing cost of copiersin Japanese companies was 40-50% of that of Xerox

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WHAT IS BENCHMARKING

Benchmarking can be defined as a process for

improving performance by constantly identifying,

understanding and adapting best practices and

processes followed inside and outside thecompany and implementing the results.

The main emphasis of benchmarking is on

improving a given business operation or a processby exploiting 'best practices,' not on 'best

performance.'

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TYPES OF BENCHMARKING

Strategic Benchmarking: Aimed at improving acompany's overall performance by studying the long-term strategies and approaches that helped the 'bestpractice' companies to succeed. It involves examining

the core competencies, product/service developmentand innovation strategies of such companies.

Competitive Benchmarking or PerformanceBenchmarking: Used by companies to compare theirpositions with respect to the performance

characteristics of their key products and services.Competitive benchmarking involves companies fromthe same sector.

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TYPES OF BENCHMARKING

Process Benchmarking: Used by companies to improvespecific key processes and operations with the help ofbest practice organizations involved in performingsimilar work or offering similar services.

Functional Benchmarking or Generic Benchmarking:Used by companies to improve their processes oractivities by benchmarking with other companies from

different business sectors or areas of activity butinvolved in similar functions or work processes.

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TYPES OF BENCHMARKING

Internal Benchmarking: This involves benchmarking againstits own units or branches for instance, business units of thecompany situated at different locations. This allows easyaccess to information, even sensitive data, and also takesless time and resources than other types of benchmarking.

External Benchmarking: Used by companies to seek thehelp of organizations that succeeded on account of theirpractices. This kind of benchmarking provides anopportunity to learn from high-end performers.

International Benchmarking: Involves benchmarkingagainst companies outside the country, as there are veryfew suitable benchmarking partners within the country.

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STAGES OF BENCHMARKING

PLANING: includes identifying, establishing anddocumenting specific study focus areas, key events anddefinitions.

DATA COLLECTION: The purpose of the data collection is to

accumulate qualitative data and learn from the bestpractices of different organizations.

DATA ANALYSIS AND REPORTING: The critical evaluation ofpractices followed at high performing companies, and theidentification of practices that help and deter superiorperformance

ADAPTATION: Includes developing an initial action plan toadapt and implement the practices followed by highperformance companies

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BENCHMARKING AT XEROX

Japanese could produce, ship, and sell units for aboutthe same amount that it cost Xerox just to manufacturethem.

In addition, Xerox's products had over 30,000 defectiveparts per million - about 30 times more than itscompetitors

Xerox defined benchmarking as 'the process ofmeasuring its products, Services, and practices against

its toughest competitors, identifying the gaps andestablishing goals. Our goal is always to achievesuperiority in quality, product reliability and cost.'

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BENCHMARKING AT XEROX

Xerox began by implementing competitivebenchmarking. Due to inadequacies company adoptedfunctional benchmarking, which involved a study of thebest practices followed by a variety of companies

regardless of the industry they belonged to.

L.L.Bean, a mail-order supplier of sporting goods andoutdoor clothing developed a computer program thatmade order filling very efficient. The program arranged

orders in a specific sequence that allowed stock pickersto travel the shortest possible distance in collectinggoods at the warehouse.

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BENEFITS DERIVED