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The Process Of An Organization

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BENCHMARK There is a common method for both public and private companies, allowing them to improve efficiency in their processes and activities. This method is known as Organizational Benchmarking, which is defined as the process of identifying, learning and applying best practices of other successful companies in the market (Gibson, L and Glenn, E., 2000). In other words, this process is based on the analysis of how other companies conduct their business and adapt to another company to improve efficiency. Before starting the process of benchmarking, it is necessary to evaluate and establish the starting point of the organization. That is, knowing where the company is, what it is doing well and what their weaknesses are. Then, a …show more content…

As a result of this research there were obtained two important conclusions. The first conclusion is that US and Europe could improve production processes of vehicles to overcome the energy use and environmental effects issues. The second conclusion is that it was difficult to compete with Japanese companies, because they, especially Toyota, had developed a different method from the others enterprises and consisted of a more developed system than a simple mass production (Graves A. and Madigan, D., 2012) Having analyzed more than 90 companies, it was possible to observe that Toyota created something that was later called "Lean Production". In the first stage two indicators were used to measure the efficiency of the company: the first refers to the total hours worked by all employees divided by the number of vehicles produced; and the second indicator was the number of defects per vehicle. At the end of this analysis it was concluded that Japanese companies had a lower rate of defects per vehicle, they were twice as productive and used 40 % less space in production plants, which meant a significant reduction in costs Later, a more detailed analysis was performed according to the activities type, separating the standard tasks of non - standard and taking into account the time it took each employee to perform them. Having completed the entire analysis process, it was possible to identify how Toyota, having created the

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