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Benchmarking at Xerox

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XEROX - THE BENCHMARKING STORY
Source link: http://www.icmrindia.org/free%20resources/casestudies/xerox-benchmarking-5.htm
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 1980s. 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.

"Benchmarking at Xerox is still very much a matter of competitive advantage. 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."

- Warren …show more content…

Between 1980 and 1984, Xerox 's profits decreased from $ 1.15 billion to $ 290 million (Refer Exhibit I).

In 1982, David T. Kearns (Kearns) took over as the CEO. He discovered that the average manufacturing cost of copiers in Japanese companies was 40-50% of that of Xerox. 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. ' As part of this quality program, Xerox implemented the benchmarking program. These initiatives played a major role in pulling Xerox out of trouble in the years to come. The company even went on to become one of the best examples of the successful implementation of benchmarking.

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 -

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