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One of the principles of TQM is continuous improvement. Name and explain one area in your...

One of the principles of TQM is continuous improvement. Name and explain one area in your company that needs to be improved by benchmarking. What is the significant of benchmarking particularly in your company?

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Answer #1

Benchmarking is defined as a process of comparing a company's performance to its competitors for the purpose of improvement. It is a process of marking the best, when two companies are on the same bench, i.e., they offer the same products or services. Whenever a customer picks another competitors' product against yours, then it shows there is a gap in your service, which needs to be filled.

My company is involved in manufacturing & selling electronic products such as fans, coolers, AC, microwave, etc. I have found that a number of people prefer to buy AC from my competitor than ours, even though we provide extra features such as color, more variation in design, etc. After doing research & comparison using a benchmarking process, our team found that our competitors win at the stage of after-sales service. They provide best & lucrative offers at after-sales services, and long term warranty too. So, we need to enhance our after-sales service & warranty period tenure to win the game, because benchmarking is all about adopting best practices for enjoying the competition.

Significant of benchmarking particularly in your company:

Benchmarking is a process of adopting the best standard practices to gain competitive advantage over others. This process plays a significant role in my company as,

  • It helps us to identify & eliminate the gap.
  • It helps us to identify that our company lacks in providing best offers at after-sales services, and is the reason for losing our valuable customers. So, it shows that we have to enhance our after-sales service process.
  • Benchmarking helps our company to work more effectively & efficiently by utilizing each and every resource in a better way.
  • It helps us to show the drawbacks as an opportunity to work on it, which is must for better & vigorous growth.
  • Benchmarking shows our company that we do not have great warranty tenure, which hinders our sales, and after pointing this out, we improve the system for better performance.

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