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I. Introduction
Since Xerox developed a strong benchmarking foundation through its
``leadership through quality'' program in 1979, benchmarking management has
become a competitive technique taken by many companies such as IBM,
Motorola, AT&T, 3M, DuPont, and Digital hoping to minimize unit production
cost and product defects so as to improve productivity and meet the customer
needs. The CEO of Xerox, David Kearns, defined the benchmarking approach
as ``to continuously improve the product and service in order to compete with
the best one and the leadership in the industry.'' The benchmarking process has
been recognized in USA as the most important tool in improving product
quality for the past ten years and has been certified by Malcolm Baldrige
National Quality Award (MBNQA).
Benchmarking and performance evaluations are components of modern
management practices and parts of total quality management (TQM). However,
the benchmarking process differs from performance evaluation. Performance International Journal of Quality &
Reliability Management,
evaluation is a tool used for measuring productivity, cost efficiency, and Vol. 19 No. 6, 2002, pp. 757-773.
# MCB UP Limited, 0265-671X
operational advantages, which has traditionally been realized on a historical DOI 10.1108/02656710210429609
IJQRM basis. The benchmarking process is usually based on a competitive basis and is
19,6 the value of some parameters used as a reference point in comparisons. It could
be used to compare the performance within one corporation (internal) or among
different companies in an industry (external). Stonehouse, et al. (2000) suggested
that a successful benchmarking process relies on:
. commitment from the managers of the organization;
758
. acceptance of the need for improvement;
. willingness to accept others' perspectives;
. a supportive community;
. continuous development of competence; and
. a constructive vision, mission and clear objectives.
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760
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Figure 1.
The benchmarking
process model
fulfill this purpose. In contrast with QFD, the QBD puts emphasis on
competitor's analysis and reveals our own position with respect to competitors.
The quality-planning table is provided here to capture this spirit. It reports
priority needs of the customer, upgrading rate of our product and target
quality-planning level of the best company in industry. Using this information,
one can calculate the weighted rank of each customer's needs. This allows an
organization to set up the priority of its product or service improvement and
compete with rivals based on customers' preferences.
As shown in Figure 2, the house of quality consists of four main parts:
customer needs, design attributes, relationship matrix, and competitive
benchmarking. In the following, the QBD tool will be proposed and how it
could be used to establish the company's benchmarking will be shown.
First, the benchmarking company should identify and structure its
customers' needs these are called the ``requirement qualities''. This is the most
critical part of the benchmarking process. Generally, customer needs may come
in various forms, such as basic needs, articulated needs, and surprise needs. It
is difficult for the product development team to deal with a list of 100-300
customer needs, examining them item by item. Therefore, we may use the KJ
Benchmarking
and quality
improvement
761
Figure 2.
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1. Planning phase
What is to be benchmarked? The service of the CKS International Airport has
been selected as our benchmarking target. Meanwhile, the service includes both
air cargo and passenger transport.
Identifying the competitors. From the reports of Airports Council International
(see Table I), Hong Kong International Airport, Singapore International Airport,
Shanghai International Airport, Manila International Airport, and Tokyo Narita
International Airport are set to be the competitive airports those that are
business competitors or geographical locations close to the CKS airport.
Data collection: sampling and the questionnaire. After the face-to-face
interview with the passengers, civil aviation departments, forwarding agents,
Passenger (year Air cargo (year Benchmarking
Airport 1999; numbers) Rank 1999; TEU) Rank and quality
improvement
Tokyo HND 54,338,212 1 724,318 8
Seoul 33,371,074 2 1,655,344 3
Hong Kong CLK 29,733,470 3 1,998,838 1
Bangkok 27,289,863 4 809,302 7
Singapore 26,064,645 5 1,522,984 4
763
Tokyo NRT 25,667,634 6 1,841,572 2
Sydney 21,542,000 7 527,027 10
Osaka 19,848,635 8 864,318 6 Table I.
Beijing 18,190,852 9 462,338 11 Asia's ten busiest
Taipei CKS 16,368,914 10 1,055,370 5 airports in terms of
passengers and
Sources: Airports Council International (1999); http:www.caaacct.gov.tw/1997/indexc.htm air cargo
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19,6
764
IJQRM
Figure 3.
Quality table
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Figure 3.
Benchmarking
improvement
and quality
765
IJQRM Customer perceptions: planning-quality table. To the right of the ``house'' is the
19,6 planning-quality table. In this table we see which parts of the product are
needed most, how well those needs are met, and whether there are any gaps
between the best product and our own product.
In order to assess performance of the CKS International Airport against
some external standard, we compare the requirement qualities of the CKS
766 International Airport against the selected competitive airports. In Table II, the
Pi values indicated under the ``priority rating'' represent priorities of the
customer needs[4]. The SCi values indicated under the ``satisfaction level of the
CKS airport'' represent the satisfaction level given of the CKS International
Airport. The STi values indicated under the ``satisfaction level of the
benchmarked airport'' denote the satisfaction level of the benchmarked airport
that performs best among competitive airports. Then the largest number
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among Pi , SCi , and STi is recorded into the ``planning level'' (Pli ) which is the
target value for the CKS International Airport to achieve.
The upgrade rate in the satisfaction level (Ui ) is obtained by dividing the
``planning level'' value by the ``satisfaction level value'' (Pli =SCi ). The higher the
Ui , the worse the performance of the CKS airport. These ``benchmarked''
comparisons allow management to identify the best practices and compare
their company's performance with leading edge performers. As shown in
Table II, the CKS airport is lagging far behind the target airport in items of
``stops and lines of flight'', ``types of transport facilities connecting outside'',
``operation revenue/total operation cost'', and ``areas and quantity of parking
lots'', which means these items should be specially controlled or redesigned.
However, since these items are parts of the supporting area and multi-
functional area, it is apparent that the linkage of the operations and service of
the CKS International Airport with its related industries is deficient in forming
a complete working hub. The final column of Table II shows the relative
importance among the ``requirements qualities'', which is obtained by using the
following equation:
X
RIi Pi Ui = Pi Ui 2
i
where Pi is the priority rating of the need i, and Ui is the upgrading rate of the
need i.
Relationship matrix: quality table. Table II shows the recorded interactions
between requirement quality and quality elements. The values of relative
importance (RIi ) are put in the first column of the quality table. Using equation
(1), we could obtain the weighted importance Wj according to weight (symbol)
of each cell.
3. Analysis phase
In this phase we have to answer three questions:
(1) What is the performance level of the best organization?
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Quality-planning table
Table II.
Benchmarking
improvement
and quality
767
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19,6
768
IJQRM
Table II.
Priorities The The satisfaction Upgrading
rating of the satisfaction of the rate of the Relative
customer of the CKS benchmarked Planning satisfaction importance
Quality requirements needs airport airport level level rating
Primary and secondary needs Tertiary needs Pi SCi STi Pli Ui RIi
Table II.
Benchmarking
improvement
and quality
769
IJQRM (2) How do we determine the current performance level of the CKS airport?
19,6 (3) How do we benefit from the benchmarking?
Table II could answer the first two questions. To answer the third question, we
will analyze the benchmarking practices of the CKS International Airport.
The benchmarking. Reviewing from the requirement quality, as show in
770 Table II, the CKS International Airport should make improvement in those
items that it lags far behind the ``target airport'' that is, in these indicators:
``stops and lines of flight'', ``types of transport facilities with outside'',
``geographical advantages'', ``operation revenue/total operation cost'', and ``areas
and quantity of parking lots'', most which belong to the support area.
As shown in Figures 3 and 4, the ``convenience of transport facilities with
outside'', ``interior design and layout of the building'', ``sufficiency of stops and
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Figure 4.
The priority of
benchmarking elements
related institution'' have higher weighted importance. Namely, these five Benchmarking
quality elements are, therefore, selected as first priorities to be benchmarked by and quality
the CKS airport. This result also shows that the weaknesses of the CKS airport improvement
focus on the dimensions of service and infrastructure. Therefore, the CKS
International Airport authority should consider these two areas carefully.
However, if the capability and ability are allowed, the CKS aviation center may
improve the other dimensions process and security according to their 771
weighted importance. Airport benchmarking for the CKS International Airport
authority may help to set up a long-term vision and the best strategic planning
for the airport service.
IV. Conclusion
Currently, benchmarking has been propelled to become a high priority practice
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Notes
1. Different degree of interaction will be denoted by a symbol. If the customer need and the
design attribute have a strong relationship, it is recorded O and given five points; a
IJQRM medium relationship, by
and three points; and a weak relationship, by , and one point;
no symbol or point will be shown for zero interaction. These corresponding relationships
19,6 are determined by selected experts. They meet and discuss, communicate, and brainstorm
until every one agrees on these results.
2. A popular method is so-called the independent matching point approach. For each cell in
the table, a weight is obtained by multiplying the relative importance of the requirement
quality and the point (i.e. weight) assigned to each relationship matrix symbol. Then we
772 aggregate the weights for each column, thus providing a weighted importance of each
customer need in achieving the collective design attribute.
3. In this area the secondary needs are not available.
4. These priorities are based on the frequency given by the interview respondents of these
signal meanings. The high the frequency, the more important the signal meanings are.
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Department of Air Transport, Cranfield University, Cranfield.
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