Toyota have developed a collection of processes and standards for use by their Information Systems department known as the Information Systems Methodology ISM and, within it, a further set of processes known as the Information Systems Project Methodology ISPM to manage both the software development lifecycle and the business processes which govern it.
The case discusses in detail the benchmarking concept and its implementation in various processes at Xerox. It also explores the positive impact of benchmarking practices on Xerox.
It is used to keep Xerox's edge razor-sharp, to discover where something is being done with less time, lower cost,fewer resources and better technology. Carlson struggled for over five years to sell the invention, as many companies did not believe there was a market for it.
Finally, inthe Battelle Memorial Institute in Columbus, Ohio, contracted with Carlson to refine his new process, which Carlson called 'electrophotography. InFuji Xerox Co. Xerox acquired a majority stake During the late s and the early s, Xerox diversified into the information technology business by acquiring Scientific Data Systems makers of time-sharing and scientific computersDaconics which made shared logic and word processing systems using minicomputersand Vesetec producers of electrostatic printers and plotters.
In the s, Xerox focused on introducing new and more efficient models to retain its share of the reprographic market and cope with competition from the US and Japanese companies. As Xerox grew rapidly, a variety of controls and procedures were instituted and the number of management layers was increased during the s.
This, however, slowed down decisionmaking and resulted in major delays in product development.
In the early s, 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.
InDavid T. Kearns Kearns took over as the CEO. 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. These initiatives played a major role in pulling Xerox out of trouble in the years to come. The main emphasis of benchmarking is on improving a given business operation or a process by exploiting 'best practices,' not on 'best performance.
Companies can adopt one or more of the following types of benchmarking Strategic Benchmarking: Aimed at improving a company's overall performance by studying the long-term strategies and approaches that helped the 'best practice' companies to succeed.
Competitive Benchmarking or Performance Benchmarking: Used by companies to compare their positions with respect to the performance characteristics of their key products and services. Competitive benchmarking involves companies from the same sector.
Used by companies to improve specific key processes and operations with the help of best practice organizations involved in performing similar work or offering similar services. Functional Benchmarking or Generic Benchmarking: Used by companies to improve their processes or activities by benchmarking with other companies from different business sectors or areas of activity but involved in similar functions or work processes.
This involves benchmarking against its own units or branches for instance, business units of the company situated at different locations.
This allows easy access to information, even sensitive data, and also takes less time and resources than other types of benchmarking. Used by companies to seek the help of organizations thatsucceeded on account of their practices. This kind of benchmarking provides an opportunity to learn from high-end performers.
Involves benchmarking against companies outside the country, as there are very few suitable benchmarking partners within the country. A typical benchmarking exercise is a four-stage process involving planning, data collection, data analysis and reporting and adaptation.
The planning stage includes identifying, establishing and documenting specific study focus areas, key events and definitions. The best-practice companies are identified and appropriate data collection tools are selected and updated for use.
The purpose of the data collection is to accumulate qualitative data and learn from the best practices of different organizations.
Information is mainly collected through questionnaires administered to all best practice companies. This stage also includes site visits to organizations that follow best practices.Xerox began by implementing competitive benchmarking which was inadequate The company then adopted functional benchmarking It was initiated with the study of the warehousing and inventory management system of L.L.
XEROX: The BENCHMARKING STORY Xerox Company Slogan II. Definition/Statement of the Problem XLConnect Solutions Inc. is acquired. Xerox acquires Tektronix, Inc.'s color printing and imaging unit; as red ink begins to flow, massive restructuring is launched. As we study this case, we recommend that Xerox Company must use and.
Quality. It is through this process that Xerox employees work continuously to improve and innovate methods which satisfy customer requirements. PAP is similar to the Plan Do Check Act cycle and the quality improvement story. The six steps in the PSP are shown in Figure 2 .
The case examines the benchmarking initiatives taken by Xerox, one of the world's leading copier companies, as a part of its 'Leadership through Quality' program during the early s.
The case discusses in detail the benchmarking concept and its implementation in various processes at Xerox.5/5(9). Xerox initiated functional benchmarking with the study of the warehousing and inventory management system of L.
Xerox redesigned the manufacturing process and made all the parts the same. The company changed the above setup by asking branch managers to match the stocking policy to the customer’s installation orders.
XEROX: A CASE STUDY HOWARD S. GlTL.0 W and ELVIRA N. LOREDO Select and Plan the Solution. Team members select the best solution to the Xerox initiated the process of Benchmarking. Benchmarking allows Xerox to: identify an area or function to be improved; identify a company (not.