Benchmarking for Best Practice

Mohamed Zairi

• Publisher: Routledge
• Year: 2010
• ISBN:
  9781136426568
• Edition: 1
• Topic: Business
• Subtopic: Business General
• Index: Business

Benchmarking for Best Practice uses up-to-the-minute case-studies of individual companies and industry-wide quality schemes to show how and why implementation has succeeded. For any practitioner wanting to establish best practice in a wide variety of business areas, this book makes essential reading. It is also an ideal textbook on the applications of TQM since it describes concepts, covers definitions and illustrates the applications with first-hand examples.Professor Mohamed Zairi is an international expert and leading figure in the field of benchmarking. His pioneering work in this area led to the implementation of sixty comprehensive benchmarking projects in companies worldwide. He has written several books on this subject including 'Practical Benchmarking' in 1992.

1 Driving businesses with quality
in the 1990s

Quality is remembered long after the price is forgotten

Gucci family slogan

1.1 Origins of the quality concept

We often hear the expression ‘quality is a very old concept.’ It is very difficult to pinpoint its origins exactly, although many argue that there is evidence linking quality with the Egyptian civilization. Indeed, the ancient Egyptians defined quality through having stringent quality control measures when building pyramids. Around 2700BC, when the great pyramid, the tomb of King Khufu, was built at El Giza, the QC tolerances at each side of the pyramid were in the order of 230m ±0.1m[1]. In Islam, it could be argued that quality was always referred to in the Koran ‘Seek improvement/perfection’ (el-Ihssan).

The quality concept in its completeness as a philosophy of managing business organizations was first associated with the Japanese in the 1960s. It came to Europe and the USA much later, in the 1980s, and finally to the developing countries, who started to embrace the concept of quality in their business operations. In Japan, the concept of quality was introduced in line with Japanese culture. The factors which worked in favour of the Japanese and ensured that the application of quality principles became a success were highlighted by Dr Kaoru Ishikawa, a world guru on quality control and whose methods have helped thousands of organizations implement quality principles worldwide. In his book What is TQC? [2], Ishikawa outlines the following factors which distinguish the Japanese outlook on quality from that of Western countries.

•	Professionalism: There is no division or barrier between QA personnel and other departments.
•	Japan is a vertical society: The relationship between top management and the workforce is not only very evident but tends to be very strong and positive.
•	Labour unions: Most union organizations are factory-based. Their concern is for the welfare, education and training of the specific workforces they represent.
•	The Taylor method of absenteeism: This dictates management style and promotes enthusiasm, reward and recognition.
•	Elitism and class consciousness: No fear, no barriers, no gatekeepers.
•	Pay system: Pay is not the only motivator. People like to enjoy their work and are proud of their achievements.
•	Turnover rate, lay offs and lifetime employment system: A commitment to providing lifetime employment means that job turnover rate is low.
•	Difference in writing system: Their educational system forces the Japanese to try harder.
•	Homogeneous nations, multi-racial nations and foreign workers: Japan is a nation of one race, one language and one culture.
•	Education: The Japanese educational system is based on high computerization and demands a high aptitude for mathematics.
•	Religion: A strong link with the management philosophy reinforces inspection through training.
•	Relationship with sub-contractors: Training is extended to include own staff and suppliers.
•	Democratization of capital: The Japanese adopt long-term perspectives and operate on the principle of quality first.
•	The role of government: Government assumes a supportive role and stimulates the growth of industry.

1.2 The evolution of quality in Japan

The quality movement in Japan started in 1946 with the birth of JUSE (The Japanese Union for Scientists and Engineers) and developed as follows[3]:

1946	The Japanese Union for Scientists and Engineers (JUSE) was founded.
	USA founded the American Society for Quality Control (ASQC).
1949	Japanese organized the Quality Research Group in JUSE. Opened the CCS lectures at GHQ, and started quality control education at JUSE and JSA (Japanese Standards Association).
1950	Dr W. E. Deming was invited by JUSE and held statistical quality control seminars in Tokyo, Fukuoka and Hakone. Published the monthly magazine Hinshitsu karni [Statistical Quality Control] (JUSE).
1951	Instituted the Deming Prize, and organized the Deming Prize Committee.
	Held the first QC conference in Osaka.
1952	Organized the ASQC Japan section.
1953	Television broadcasting started in Japan.
1954	Dr J. M. Juran was invited by JUSE and held a Quality Control
	seminar for executives and managers.
	Started manufacture of transistors on a commercial basis.
1955	Opened the QC Seminar Middle Management Course (JUSE). Published the QC Diary (JUSE). Japan ratified GATT.
1956	(USA) Dr W. E. Deming was awarded the Shewhart Medal of ASQC.
	Broadcast the Quality Control Course on Japanese radio.
	Founded the European Organization for Quality Control (EOQC).
	Japan became first in the world for shipbuilding.
1957	Opened the QC Seminar Top Management Course (JUSE) at Karuizawa.
	Dr W. A. Shewart visited Japan.
	Dispatched the Quality Control Study Mission to USA by JPC (Japan Productivity Center).
	(USSR) Succeeded in launching the first earth satellite (Sputnik-1).
1958	Organized the Reliability Research Committee in JUSE.
1960	Instituted the Quality Month and designated the Q Mark and Q Flag.
	Colour television broadcasting started.
	Broadcast the Quality Control Course by NKH Education TV.
	Dr W. E. Deming was awarded the Second Class Sacred Treasure by the Japanese government.
	Held the 32nd ISI (International Statistic Institute) General Meeting in Tokyo.
1961	Japan's GNP recorded $50 billion.
1962	Published the Gemba To QC (later renamed the FQC then QC Circle) (JUSE).
	Founded the QC Circle Headquarters, and started QC Circle activities.
	Held the first QC Conference for Foremen.
	(USA) started ZD (Zero Defect) activities.
1963	Dispatched the first Quality Control Study Team to USA (JUSE).
	Held the first QC Conference for Top Management.
	Held the first QC Circle Conference.
	Mr Kenichi Koyanagi was awarded the Edward Medal of ASQC.
1964	The New Tokaido Line (Super Express) opened. The Olympic Games took place in Tokyo. Japan joined the OECD.
1965	Concep...