Xerox: The Benchmarking Story

            
 
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Case Details:

Case Code : OPER012
Case Length : 14 Pages
Period : 1982 - 2002
Organization : Xerox
Pub Date : 2006
Teaching Note : Available
Countries : USA
Industry : Office Automation

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Operations Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Excerpts

About 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 the company and implementing the results. The main emphasis of benchmarking is on improving a given business operation or a process by exploiting 'best practices,' not on 'best performance.'

Simply put, benchmarking means comparing one's organization or a part of it with that of the other companies. Companies can adopt one or more of the following types of benchmarking...

Operations Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

Benchmarking at Xerox

The 'Leadership through Quality' program introduced by Kearns revitalized the company. The program encouraged Xerox to find ways to reduce their manufacturing costs. Benchmarking against Japanese competitors, Xerox found out that it took twice as long as its Japanese competitors to bring a product to market, five times the number of engineers, four times the number of design changes, and three times the design costs...

Supplier Management System

Xerox found that all the Japanese copier companies put together had only 1,000 suppliers, while Xerox alone had 5,000. To keep the number of suppliers low, Japanese companies standardized many parts. Often, half the components of similar machines were identical. To ensure part standardization, Japanese companies worked closely with their suppliers. They frequently trained vendor's employees in quality control, manufacturing automation and other key areas. Cooperation between the company and the vendor extended to just-in-time production scheduling, i.e. delivery in small quantities, as per the customer's production schedule...

Reaping the Benefits

The first major payoff of Xerox's focus on benchmarking and customer satisfaction was the increase in the number of satisfied customers. Highly satisfied customers for its copier/duplicator and printing systems increased by 38% and 39% respectively. Customer complaints to the president's office declined by more than 60%. Customer satisfaction with Xerox's sales processes improved by 40%, service processes by 18% and administrative processes by 21%...

Exhibits

Exhibit I: Xerox: Operational Data for 1980-1984
Exhibit Ii: Steps Involved in a Typical Benchmarking Process
Exhibit Iii: Comparison Between Old and New Quality Policy of Xerox
Exhibit Iv: Xerox Corporation: Income Statement (1984-1989)
Exhibit V: Guidelines for Successful Benchmarking


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