Assignment 2nd 890 TQM Spring 2010

Total Quality Managment (890)
Department of Business Administration

Block No. 13, H-8
Islamabad
Total Quality Management (890)

Assignment No. 02
Submitted to:
MR. REHAN PERVAIZ
B- 116, Sub Block-05
Grey River Apartments
Bhitani Colony, Korangi Crossing
KARACHI (0321-224 2294)
Submitted By:
Muhammad Hammad Manzoor
MBA (HRM)-3rd Semester
Roll No. 508195394
508, 5th Floor, Continental Trade Centre (CTC)
Block – 08, Clifton, KARACHI
(0321-584 2326)
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By: M. Hammad Manzoor, MBA HRM-III, 508, 5th Floor, Continental Trade Centre (CTC), Clifton – 08, Karachi. (Roll No. 508195394)
Email: explorationist@gmail.com, Cell: 0321-584 2326
ACKNOWLEDGEMENT
All praises to Almighty Allah, the creator of the Universe who blessed me with the knowledge
and enabled me to complete this research. I feel great pleasure and honour to express my
sincere gratitude and heartfelt thanks to my worthy subject faculty member Mr. Rehan
Pervaiz Sab, for his guidance, encouragement and friendly attitude during the present study
and throughout the period of M.B.A (Semester III).
I pay my thanks to all the Faculty of the Department & AIOU Karachi Campus Staff for their
kind support, constructive criticisms and real encouragement. I wish to thank Ms. Zehra
Jabeen for valuable discussions and knowledge sharing during the completion of this project.
I further wish to record my thanks to all my students, class fellows, well wishers and
especially Cera-e-Noor Management Mr. Eshan Ali (Manager – Human Resources), Mr. Khizar
Iftikhar, Khurram Shahzad, Rehan Hassan, Sohail, Waleem, Javed for their help, valuable
suggestions, whole hearted cooperation and prayers.
Finally, I owe all my academic success and progress in life to my loving parents and sisters,
whose affection, endless prayers, good wishes and inspiration remained with me for higher
ideals of life.
M. Hammad Manzoor
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ABSTRACT
The study had been carried out by keeping in mind about the internal and external
benchmarking techniques for the sake of an organizational, in which the planning
strategy should be adopted as input that can help us out for continues progress of that
firm
Cera-e-Noor (Karachi) has been selected for the sake of the data analysis and working
on its merits and demerits, the methodology includes the evaluation of the different
benchmarking techniques and evaluation on the basis of the bench marking solutions.
SWOT analysis had been carried out and conclusion followed by recommendations had
been made in this regards.
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Sr. No. Contents Description Page No.
1 Introduction 4-6
• What is Bench Marking?
• Bench Marking Process
• Explanation of Bench Marking
2 Review of Literature 6-19
• Stages of Bench Marking
• Overview the benchmarking
• Benchmarking process
• Key Steps Involved
3 Cera-e-Noor Ceramics 20-24
• Company Profile
• Data Collection
4 Data Analysis 25-26
• Demerits and Deficiencies
• Merits & Strengths
5 Recommendations 27
6 References 28
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Introduction
What is benchmarking?
"Benchmarking is a tool to help you improve your business processes. Any

business process can be benchmarked."
"Benchmarking is the process of identifying, understanding, and adapting

outstanding practices from organizations anywhere in the world to help your
organization improve its performance."
"Benchmarking is a highly respected practice in the business world. It is an

activity that looks outward to find best practice and high performance and
then measures actual business operations against those goals."
One of the biggest mistakes people make when beginning their benchmarking
endeavor is that they only look to benchmark someone within their own industry.
Although this doesn't hurt, you probably already know enough about your industry to
know what works and what doesn't. Worse yet, some people think they must
benchmark their competitor. What if the competition is worse than your company?
Seems like a pretty big waste of time and energy. Instead how about benchmarking a
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company that is well known for being a good model. Sometimes referred to as Best
Practices, Exemplary Practices, business Excellence.
By Benchmarking we will find out;

• Who performs the business process very well and has process practices that are
adaptable to your own organization
• Who is the most compatible for you to benchmark with
• If you need to conduct a comprehensive benchmark study or if you can obtain
80-90% of what you need from just using the telephone, email, or an electronic
survey to communicate your needs with other members on The Benchmarking
Exchange
We can say;
Benchmarking is the continuous search for an adaptation of significantly better
practices that leads to superior performance by investigating the performance and
practices of other organizations (benchmark partners). In addition, it can create a
crisis to facilitate the change process.
Benchmarking goes beyond comparisons with competitors to understanding the

practices that lie behind the performance gaps. It is not a method for 'copying' the
practices of competitors, but a way of seeking superior process performance by
looking outside the industry. Benchmarking makes it possible to gain competitive
superiority rather than competitive parity. The term benchmark refers to the
reference point by which performance is measured against. It is the indicator of what
can and is being achieved. The term benchmarking refers to the actual activity of
establishing benchmarks and 'best' practices.
It must be noted, however, that there will undoubtedly be difficulties encountered

when benchmarking. Many of them are detailed in the corresponding document "Guide
to Benchmarking" under "factors to be aware of". Significant effort and attention to
detail is required to ensure that problems are minimized.
Benchmarking typically involves a number of steps. Every business process can be

benchmarked, including marketing, product development, purchasing, and customer
service. Every company has strengths and weaknesses so it is important to identify
what doesn't work well. The first step is to narrow the scope and decide which
business processes to target.
Next, determine which companies excel in your industry and who the leaders are.
Typically there are one or two companies that set the standard for your industry.
Reading trade magazines and speaking with trade associations are two of the best
ways to accomplish this.
Once you have defined which companies are industry leaders, it is necessary to study
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and evaluate their management practices with yours. Most companies are happy to
share their strategies for success, which are documented in writing. It is then possible
to compare and evaluate your practices against the best in the industry and from
there, make the necessary changes.
The purpose of benchmarking is not to adopt the same management practices, but to
adapt your findings to your particular company's needs. It is not a one size fits all
methodology, but rather an ongoing process. Indeed, once you have the new and
improved systems in place it is necessary to re-evaluate them from time to time to
ensure they still produce the best products and services. Although benchmarking can
be an expensive proposition, most companies find that it is worth the cost.
FIVE STAGE PROCESS:
FIVE STAGE
PROCESS
Planning Analysis Integration Action Maturity
The five-stage process involved the following activities:
• Planning: Determine the subject to be benchmarked, identify the relevant best

practice organizations and select/develop the most appropriate data collection
technique.
• Analysis: Assess the strengths of competitors (best practice companies) and

compare Xerox's performance with that of its competitors. This stage determines the
current competitive gap and the projected competitive gap.
• Integration: Establish necessary goals, on the basis of the data collected, to attain
best performance; integrate these goals into the company's formal planning
processes. This stage determines the new goals or targets of the company and the
way in which these will be communicated across the organization.
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• Action: Implement action plans established and assess them periodically to

determine whether the company is achieving its objectives. Deviations from the plan
are also tackled at this stage
• Maturity: Determine whether the company has attained a superior performance

level. This stage also helps the company determine whether benchmarking process
has become an integral part of the organization's formal management process.
Overview
Have you ever asked yourself these questions?
"How are we doing?"

"Are we tracking the right measures?"
"How do we compare with others?"
"Are we making progress fast enough?"
"Are we using the best practices?"
Benchmarks and benchmarking can provide you with facts to answer these questions.
They can provide you with data to show you what can be achieved. Perhaps more
important, benchmarking can tell you how you can achieve the same type of results!
In short, benchmarking gives you the external references and the best practices on
which to base your evaluations and to design your work processes as shown in figure
below.
This tutorial provides an overview of how to implement benchmarking in your

organization specifically, what you need to do and how to go about it. The tutorial
starts with an introduction and some definitions and then gives a high level view of a
benchmarking process, from both a results and a process focus.
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WHY DO WE NEED TO BENCHMARK?
There are many benefits of benchmarking. The following list summarizes the main
benefits:
• provides realistic and achievable targets
• prevents companies from being industry led
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• challenges operational complacency

• creates an atmosphere conducive to continuous improvement
• allows employees to visualize the improvement which can be a strong
motivator for change
• creates a sense of urgency for improvement
• confirms the belief that there is a need for change
• helps to identify weak areas and indicates what needs to be done to improve.
For example, quality performance in the 96 to 98% range was considered excellent in
the early 1980's. However, Japanese companies, in the meantime, were measuring
quality by a few hundred parts per million by focusing on process control to ensure
quality consistency.
Thus, benchmarking is the only real way to assess industrial competitiveness and to
determine how one company's process performance compares to other companies'.
A BENCHMARKING PROCESS:
Now that we have the basic objectives and the definitions, we need a process to
achieve the objectives; such a process provides the means for achieving the ends
outlined by our objectives.
Defining and Planning the Project

You need to define the project in precise terms and develop a complete, yet simple,
project plan. Start with a preliminary plan and build it over time to the appropriate
level of preciseness. Such a plan should include a way to measure your success. A
project like benchmarking is like (and should probably be managed like) any other
project you undertake. Be sure to include in your project plan items such as project
objectives, scope, approach, timeline, and budget.
Understanding Where You Are

In order to utilize information about how others are doing, you need to first
understand how you are doing or, at least, how you would like to be doing. This
requires that you have performance measures or Metrics (see How to Measure Success
-- Uncovering the Secrets of Effective Metrics) so that you can judge how you are
doing.
Given these measures, you can use them to help organize your project and to select
your benchmarking partners. You can use these measures to guide your search for
secondary data, to help generate your preliminary questionnaire, and to conduct a
preliminary survey to narrow the field in your search for potential partners.
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Understanding Where You Can Be

Based your preliminary studies, you need to select potential partners, ascertain their
willingness to participate, and develop your final questionnaire. The questions should
help you focus on the specifics of what you want to learn.
To get the most out of an exercise like this you have to have the "right" people
participate, both from your team, as well as those of your partners. The right people
means the best combination of technical and people skills so that you can both elicit
and understand the information you are gathering.
Once you have your team, you can proceed to schedule and conduct the information
exchanges with the several partners you've identified.
Two points to remember:

1. Benchmarking is a search for how, as well as how much. To replicate
results in your organization you need to understand how they have been
achieved by others, and
2. Benchmarking need not require you to visit others. You can achieve the
results in many ways, depending on the time and resources available to
you. The following chart outlines several alternatives for conducting
exchanges. As more time and resources are available and as the need
increases, you can elect to use the more sophisticated and time-
consuming processes.
It is through these processes that you gather the data to determine where you can be.
And the next question is, "How soon can I expect to see some results?" The following
table gives some ideas of time frame, based on our experience.
Identifying Lessons Learned

Now that you know how others are doing, you can use the data to understand how you
can improve. The most straight-forward way is to assess where there are gaps
between your performance and that of your benchmarking partners. Further, you can
use these assessments to identify best practices, in particular ones you'd like your
organization to adopt.
Applying the Lessons Learned

You are ready to begin implementing what you've learned. This is the "next step."
This is where the rubber hits the road. You've learned what others are doing and how
they are doing it. You need to ensure that all relevant staff in you reorganization is
aware of and can make use of what you've learned. Your report and your
presentations may in fact be one of the most important activities in your project.
HOW BENCHMARKING IS DONE:

The crux of benchmarking is learning by sharing information between businesses. By
comparing work processes, inputs and outputs, you can gain valuable information that
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can help you improve your own process. At a very high level, the process of
benchmarking can be broken down into three steps:
1. Evaluate and measure your own operation or specific process to identify

weaknesses and strengths.
2. Initiate a benchmarking study and document processes that are more productive or
efficient than yours.
3. Determine how to adapt successful processes and procedures from those who may
be doing it better than your process.
Look Inside and Outside

You can find best practices via benchmarking in and out of your own industry - even in
places you think are totally unrelated. One example comes from a world-renowned
ammunition manufacturer. The company wanted to create ammunition that was
bright and shiny, but nothing they tried would meet their stringent specifications.
One evening a manufacturing engineer's wife was putting on her makeup and lipstick
and he noticed the composition of her lipstick case - how bright and shiny it was after
such a long time of use. Immediately he arranged a meeting with the lipstick case
manufacturing center to benchmark their processes and a new product was
introduced soon after.
Continuous Improvement
How can we be better? One simple question that should drive your business leaders to
embrace change and defy the status quo. Benchmarking may be the answer to your
process inefficiency question. Because it is so important within the Quality profession,
the Malcolm Baldridge National Quality Award requires all company entries to
benchmark. Benchmarking helps determine the reference point and standard from
which world class performance can be measured.
KEY STEPS TO BENCHMARKING:

Based on research and experience we would recommend the following stages in
Benchmarking projects:
1. Identify what to benchmark

2. Ensure management support and involve all stakeholders
3. Select the benchmarking team
4. Analysis of internal processes
5. Identify companies to benchmark
6. Decide on method(s) of data collection
7. Collect public domain information
8. Analyse collected information to establish what other information needs to be
collected
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9. Establish contacts with benchmark partners

10. Plan the actual visits
11. Conduct the benchmarking visits
12. Establish whether a performance gap exists
13. Predict future performance levels
14. Communicate benchmark findings
15. Establish targets and action plans
16. Gain support and ownership for the plans and goals
17. Implement the action plans, measure performance and communicate progress
18. Re-calibrate benchmarks
19. Adopt benchmarking on a company-wide scale
AVOID THESE TEN BENCHMARKING MISTAKES:

Benchmarking has become embedded in most organizations as part of the way they
stay competitive. But there are lots of opportunities for benchmarking to go wrong.
Here are some of the most common mistakes organizations make when benchmarking,
and how you can avoid them.
Mistake #1. Confusing benchmarking with participating in a survey.

A survey of organizations in a similar industry to yours is not really benchmarking,
whatever it may be called. Such a survey will give you some interesting numbers, but
benchmarking is the process of finding out what is behind the numbers. In other
words, a benchmarking survey may tell you where you rank, but it won't help you
improve your position.
Mistake #2. Thinking there are pre-existing "benchmarks" to be found.

Just because some survey or study says that a cost of $2.35 is the "benchmark" cost of
a particular transaction, does not mean that you must perform that transaction for
that price. The so-called "benchmark" may simply not be applicable to your markets,
customers or resource levels. Insist on identifying your own benchmarking partners
and finding out from them what is achievable, and then whether you can achieve a
similar level of performance.
Mistake #3. Forgetting about service delivery and customer satisfaction.

Benchmarking stories abound of organizations that have become so fixated on the cost
of providing their product or service that they have failed to take the customer into
account. Paring down the costs often rebounds in lesser service delivery, so customers
go elsewhere and ultimately you don't have a business. Take a "balanced scorecard"
approach when developing your benchmarking metrics.
Mistake #4. The process is too large and complex to be manageable.

A process is a group of tasks. A system is a group of processes. Avoid trying to
benchmark a total system - it will be extremely costly, take ages, and be difficult to
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remain focused. Better to select one or several processes that form a part of the total
system, work with it initially and then move on to the next part of the system.
Mistake #5. Confusing benchmarking with research.

Benchmarking presupposes that you are working on an existing process that has been
in operation long enough to have some data about its effectiveness and its resource
costs. Commencing a new process, such as developing a new employee handbook by
collecting other people's handbooks and taking ideas from them, is research, not
benchmarking.
Mistake #6. Misalignment

Choosing a benchmarking topic that is not aligned with the overall strategy and goals
of the business & end ash; or worse, cuts across some other initiative the organization
is already taking. A Lead Team at the strategic level needs to oversee the
benchmarking project and make sure that it is in line with what is happening in the
business as a whole.
Mistake #7. Picking a topic that is too intangible and difficult to measure.
"Employee communication" is probably the most slippery concept that exists in an
organization, but it is often cited as one of the worst problems, so many organizations
try to benchmark it. Encourage your benchmarking team to select instead a part of
the topic that can be observed and measured; for instance, the process of distributing
memos around the organization.
Mistake #8. Not establishing the baseline.

Going out to make benchmarking visits before you have analyzed your own process
thoroughly. Benchmarking assumes that you already know your own process and its
level of performance thoroughly. After all, that information is what you have to offer
to your benchmarking partners in exchange for the information you are seeking from
them. Make sure your benchmarking team is very clear about what it wants to learn
before you approach potential benchmarking partners.
Mistake #9. Not researching benchmarking partners thoroughly.

This is essential in selecting the right benchmarking partners, so you don't waste their
time or yours. There is a rule of benchmarking etiquette that says you should never
ask a benchmarking partner a question that you should have been able to answer for
yourself through researching the literature in the public domain.
Mistake #10. Not having a code of ethics and contract agreed with partners.
Your partners should be clear about what you are seeking to learn from them, how
that information will be treated, who will have access to it and for what purposes it
will be used. Ideally, this should be formally agreed. The benchmarking code of
practice offered by the American Productivity and Quality Centre provides a useful
model.
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SEVEN STEPS TO EFFECTIVE COMPETITOR BENCHMARKING:

When it comes to Competitive Intelligence, there are a few simple tools that can
provide for sophisticated comparisons of business functions between organizations
that can help firms "benchmark" the constituent processes of the company with direct
or indirect competitors, allowing a company to gain the upper hand in a marketplace.
But, what is the process for setting the metrics, methodologies, milestones and
comparisons which might be used to measure the success of a CI/benchmarking
function, or the success of a Strategic Planning department as a whole?
Benchmarking is best used and described as a framework for strategic planning in
that, once elements of study are identified, metrics can be applied to the key success
factors (KSFs) of the industry or marketplace and these measures or "benchmarks" are
then used to develop future quality and market initiatives for the firm to enhance its
overall competitive position.
It is generally considered that there are seven steps to this process, as explained
below. However, this analysis of intra- and sometimes inter-industry competitors can
form the foundation for future competitor analysis when the emphasis is placed upon
the goals and financial capabilities of the competitor. This becomes a question of how
will the competitor compete with their particular set of resources and culture?
The body of work surrounding business benchmarking has identified seven unique
steps in this benchmarking process, many of which may offer some insights on the
question of metrics.
Seven Steps in the Benchmarking Process:

1. Determine which functional areas within your operation are to be benchmarked
those that will benefit most from the benchmarking process, based upon the cost,
importance and potential of changes following the study.
2. Identify the key factors and variables with which to measure those functions --
usually in the general form of financial resources and product strategy.
3. Select the best-in-class companies for each area to be benchmarked -- those

companies that perform each function at the lowest cost, with the highest degree of
customer satisfaction, etc. Best-in-class companies can be your direct competitors
(foreign or domestic), or even companies from a different industry (parallel
competitors with replacement or substitute products or services; latent competitors
which might backwards- or forwards-integrate into your market; or, out-of-industry
firms with whom you do not compete, but which have best-in-class areas to be
studied such as FedEx or Wal-Mart in logistics).
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4. Measure the performance of the best-in-class companies for each benchmark

being considered -- from sources such as the SEC, companies themselves, articles in
the press or trade journals, analysts in the market, credit reports, clients and
vendors, trade associations, the government or from interviews with other
organizations willing to share their prior research or "swap" it with you.
5. Measure your own performance for each variable and begin comparing the
results in an "apples-to-apples" format to determine the gap between your firm and
the best-in-class examples. Always feel free to estimate results, as exact measures
are usually disproportionately difficult to obtain and often do not significantly add
value to the study.
6. Specify those programs and actions to meet and surpass the competition based
on a plan developed to enhance those areas that show potential for compliment. The
firm can choose from a few different approaches -- from simply trying harder, to
emulating the best-in-class, changing the rules of the industry or leapfrogging the
competition with innovation or technology from outside the industry.
7. Implement these programs by setting specific improvement targets and

deadlines, and by developing a monitoring process to review and update the analysis
over time. This will also form the basis for monitoring, revision and recalibration of
measurements in future benchmarking studies.
Since most of the measures in a benchmarking process fall into one of two categories,
financial resources and product strategy, this understanding can often be used to
simplify the framework of analysis.
It remains my gut feeling that, regarding the success of the process itself, ROI is only
really measured in documented "wins", for example we can describe success terms of
contracts won due to a CI success. This can therefore be thought of in terms of new
business signed and the profitability of that new business, a problem solved or costs
contained or reduced by the implementation of the CI/benchmarking process.
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TYPES OF BENCHMARKING:
There are four types of benchmarking. They are not mutually exclusive and companies
can choose any one or a combination to meet their objectives. It is recommended
that strategic benchmarking is conducted first to create a context and rationale that
will enhance all other benchmarking efforts.
TYPES OF
BENCHMARKING
Strategic Functional Best Practices Product

Benchmarking Benchmarking Benchmarking Benchmarking
1. Strategic Benchmarking
Concerned with comparing different companies' strategies and assessing the success
of those strategies in the marketplace.
Analyses the strategies with particular reference to:
• strategic intent
• core competencies
• process capability
• product line
• strategic alliances
• technology portfolio
Should begin with the needs and expectations of the customer. This can be achieved
through surveys to measure customer satisfaction and the gaps between a company's
performance and its customers' standards.
Ensures a co-ordinate strategic direction regarding benchmarking and reduces the

possibility that one improvement project will cancel out the effect of another.
Benchmarking candidates are normally direct competition.
The main difficulty is persuading the benchmark partner to discuss their strategy.
However, there is a great deal of information which can be obtained from customers,
common suppliers and public domain information.
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2. Functional Benchmarking
• Investigates the performance of core business functions.
• Does not need to focus on direct competition but, depending on the function to
be benchmarked, the benchmark partner may need to be in a similarly
characterized industry for useful comparisons to be made?
3. Best Practices Benchmarking

• Applies to business processes.
• It breaks the function down into discrete areas that are the targets for
benchmarking and is therefore a more focused study than functional
benchmarking.
• Some business processes are the same regardless of the type of industry.
• Attempts to benchmark not only work processes, but also the management
practices behind them.
4. Product Benchmarking
• Commonly known as reverse engineering or competitive product analysis.
• Assesses competitor costs, product concepts, strengths and weaknesses of
alternative designs and competitor design trade-offs, by obtaining, stripping
down and analysing competitors' products.
The four different types of benchmarking are evolutionary beginning with product,
through to functional, process and strategic. For the purposes of this document and
the corresponding document 'Guide to Benchmarking' best practice benchmarking will
be used due to its focus on processes. As benchmarking is becoming more widespread
and companies are more proficient in its use, best practice benchmarking is becoming
increasingly popular. This is also reinforced by the move away from functionality in
organisations towards business processes. For further information on the other types
of benchmarking, see the references to Watson, Camp and Miller.
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THE CODE OF CONDUCT:

Benchmarking can be fraught with potential problems, ranging from simple
misunderstandings to serious legal problems. To minimize the likelihood of these
types of difficulties, we strongly recommend that teams follow the simple Code-of-
Conduct scripted by the International Benchmarking Clearinghouse.
1. Legality
Don’t enter into discussions or act in any way that could be construed as illegal,
either for you or your partner. Potential illegal activities include, for example, such
simple actions as discussing costs or prices, if that discussion could lead to allegations
of price fixing or market rigging. The process of how you arrive at prices may be
acceptable, while discussion of actual costs and prices may not.
2. Exchange
Don’t ask questions of your benchmarking partner that you are not willing to answer
yourself ¾ to the same level of detail. It helps to fully disclose your level of
expectations with regard to the exchange early on in your discussion.
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3. Confidentiality
Treat the information you receive from your partners with the same degree of care
that you would for information that is proprietary to your organization. Many
organizations may not even want you to disclose that you have had such discussions
with them. In this regard, you may want to consider entering a non-disclosure
agreement with your benchmarking partner; consult your legal staff.
4. Use of Information
Don’t use the benchmarking information you receive from a partner for any purpose
other than that to which you have agreed.
5. Contact
Don’t go beyond the mutually agreed-on procedures that govern whom you will
interact with in your partner’s organization. Comply with their wishes and culture.
6. Preparation
Be prepared for your meetings and exchanges. Doing so increases your efficiency and
effectiveness, and that of your partners as well. It promotes an air of professionalism.
7. Completion
Don’t make commitments you can’t or don’t keep. Complete your work to everyone’s
satisfaction, including that of your partner.
8. Understanding
Benchmarking’s Golden Rule: treat your partner and their information the way you’d
like them to treat you and yours.
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Practical Study of
Cera-
Cera-e-Noor
www.cera-a-noor.com
Manufacturer of finest tableware
Company Portfolio
Cera-e-Noor plant located in the industrial area of city of Hub in Lasbela, Balochistan
province of Pakistan, was acquired by the Hashoo Group in the year 2000. It is a state-
of-the-art facility for the manufacture of crockery (tableware). The plant was
designed and commissioned with the collaboration of French ceramic giant,
Bernardaud Liamoges and technical/engineering expertise from other major players in
the French ceramic industry such as Ceric and Cerlim.
Notable features of the manufacturing unit are automatic plate lines, universal
jiggering machines capable of producing extra large sized platters, PLC controls and
highly advanced shuttle kilns for both gloss and biscuit firing.
A Ceramics manufacturing company, “Cera-e-Noor” specializes in hospitality and

domestic grade porcelain crockery and table ware. The state of the art facility
included the latest technology and processes including automated lines, universal
machines capable of producing extra large size plotter, PLC controls and highly
advanced Shuttle kens of both glass and biscuit.
“Cera-e-Noor” uses imported China Clay vitrified at extremely high temperatures to

produce hardwaring and scratch resistant porcelains crockery and table ware in
different grades.
“Cera-e-Noor” porcelain is highly durable and four times stronger than conventional
ceramics table ware and is microwave and diswasher sale. Limited addition customs
design and grids can be commissioned suitable for Government or Corporate levels
use. All products are entirely free from harmful material and exhibits excellent
thermal stability.
Apart from meeting the industry needs of the Hashoo Group, “Care-e-Noor” also
caters to the needs of other customers in the commercial and domestic sectors as
well as international markets at easy realistic prices.
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Being the only facility in Pakistan capable of manufacturing hard ceramic product in
large quantities “Care-e-Noor” is committed to total customer satisfaction by
consistently providing innovative and unmatched quality products through team
efforts.
VISION OF THE COMPANY:
We strive to be bench-marked against the best in the tableware industry. Our aim is
to exceed our customer's expectations ensuring them of highest standards of service
levels and unmatched product quality.
FUTURE PLANS:
In the future competition will increase in this market and there will be large
availability of Chinese product at relatively low price. Customer will become brand &
quality conscious.
In future we plan to expand our product line by introducing more categories, designs
& varieties in both casual & formal ware. We also plan to go beyond the national
boundaries and market of products worldwide.
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Genuine Hard Porcelain

Cera-e-Noor product line is unique – it is the only facility in the country,
manufacturing products of hard porcelain from imported quality China clay.
Durable Decoration
Due to extremely controlled temperature & atmospheric conditions in the fast firing
fully automatic tunnel Kiln our decorations fuse with the glaze, which gives high
degree of durability even after high dishwasher use.
Domestic and Institutional Product Ranges

Built-in versatility in our production systems allows us to offer both the fine
tableware for home dinning & the tough thick ware for the institutional client. We
can custom make company logos as well as design transfers according to
specifications.
Realistic Prices
High speed, high volume production facilities combined with experienced technical
staff ensures quality products at realistic prices. Try us - you will be pleasantly
surprised.
Free of Harmful Materials

Strict quality control in the selection of raw materials for the composition is
maintained to avoid hazardous material which can be injurious to health.
High Durability
Cera-e-Noor porcelain is vitrified at an extremely high temperature, making it four
times stronger than conventional ceramic tableware and is dishwasher safe.
Scratch Resistant
The hardness of the Cera-e-Noor glazed surface can withstand tough commercial use
with high resistance to scratching/silver marking.
25/28
Methodology Used:
Internal Benchmarking:
Turn Over Benchmarks

• To achieve a target of PKR 222 million (2 million pieces) within the 1st year
• To achieve a target of PKR 400 million (4 million pieces) within the 2nd year
• To achieve a target of PKR 1 billion (8 million pieces) within the 3rd year
Profit Oriented Benchmarks

• To achieve profit at the rate of 2% within the 1st year 2007-08
• To achieve profit at the rate of 4% within the 2nd year of 2008-9
• To achieve profit at the rate of 8 % within the 3rd Year of 2008-09
Sales Benchmarks
• To achieve a target net sales of Rs. 222 million within the1st year of 2007-08
• Expand the number of dealers by 10 %
• To achieve a target net sales of Rs. 400 million within the 2nd year of 2008-09
• To achieve a target net sales of Rs. 1billion within the 3rd year of 2009-10
External Benchmarking:
• To acquire all necessary technical capabilities properly prioritize (e.g: an in-

house decal development facility)
• To train and develop employees as significant assets of organization so that
quality manufacture and marketing of porcelain tableware can be sustained in
the long term
• To manage quality so as to compete with the top international brands of the
world
• To obtain an overall holistic approach (other stakeholders, social responsibility,
etc).
26/28
Merits, Demerits, Strengths and Deficiencies:
Merits & Strengths:

• Premier local manufacturer of porcelain tableware.
• Part of the elite Hashoo group -the owners and operators of two leading chains
of hotels namely Marriott and Pearl Continental
• Ability (knowledge, skills and facility) to manufacture hard porcelain.
Demerits and Deficiencies:

• Plant is geared towards small volumes and labor intensive manufacturing
resulting high. Cost of manufacturing
• Quality is acceptable but consistency needs to be ensured. Further
improvement in quality is necessary to compete with top International brands.
• Lack of Decal Development Facility.
• Lack of original designs
• Lack of brand awareness in relevant markets
• Lack of proper HRD( succession planning, Training & Development)
• Lack of Planning strategy for benchmarking.
Opportunities:
• Huge growing domestic market
• Growing purchasing power of people within the economy
• More and more consumers are becoming brand conscious
• Modern lifestyles markets are growing.
Threats:
• Growing Manufacturing Power of China (they can do reasonable quality at low
cost)
• Increasing energy costs.(Oil & Electricity)
• Increasing prices of raw material
• Political stability is at a decline.
27/28
Recommendations:
• Enhance the planning strategy for bench marking.

• Internal Benchmarking should be revised by strategic approach
• Enhance the manufacturing plant capacity to get the maximum number
• They should try to come up with the maximum number for production in order
to reduce their cost in External Benchmarking.
• Enhance the brand design
• Enhance HRD to meet the appropriate professional needs for onward
competition
• Administration department needs to address for of hiring experienced
professionals of the relevant trade.
• The emphasis of the company emphasized is work progress, nor on the
personality grooming of an individual, which could be helpful for company
operation smooth conduction and helping out for better prospectivity in the
form of his personal growth and motivation to company.
• External Benchmarking should be revised by competitive approach
28/28
References:
A special tribute and thanks to the following professionals of Cera-e-Noor for

cooperating in providing data and fruitful assistance.
Name Designation Contacts
Eshan Ali Manager HR eali@cera-e-noor.com.pk
Muhammad Usman Javed Manager Marketing javd.u@cera-e-noor.com.pk
29/28

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Total Quality Managment (890)

Department of Business Administration

Total Quality Management (890)

Sr. No. Contents Description Page No.

"Benchmarking is a tool to help you improve your business processes. Any

"Benchmarking is the process of identifying, understanding, and adapting

"Benchmarking is a highly respected practice in the business world. It is an

By Benchmarking we will find out;

Benchmarking goes beyond comparisons with competitors to understanding the

It must be noted, however, that there will undoubtedly be difficulties encountered

Benchmarking typically involves a number of steps. Every business process can be

FIVE STAGE PROCESS:

Planning Analysis Integration Action Maturity

The five-stage process involved the following activities:

• Planning: Determine the subject to be benchmarked, identify the relevant best

• Analysis: Assess the strengths of competitors (best practice companies) and

• Action: Implement action plans established and assess them periodically to

• Maturity: Determine whether the company has attained a superior performance

"How are we doing?"

This tutorial provides an overview of how to implement benchmarking in your

WHY DO WE NEED TO BENCHMARK?

• challenges operational complacency

Defining and Planning the Project

Understanding Where You Are

Understanding Where You Can Be

Two points to remember:

Identifying Lessons Learned

Applying the Lessons Learned

HOW BENCHMARKING IS DONE:

1. Evaluate and measure your own operation or specific process to identify

Look Inside and Outside

KEY STEPS TO BENCHMARKING:

1. Identify what to benchmark

9. Establish contacts with benchmark partners

AVOID THESE TEN BENCHMARKING MISTAKES:

Mistake #1. Confusing benchmarking with participating in a survey.

Mistake #2. Thinking there are pre-existing "benchmarks" to be found.

Mistake #3. Forgetting about service delivery and customer satisfaction.

Mistake #4. The process is too large and complex to be manageable.

Mistake #5. Confusing benchmarking with research.

Mistake #6. Misalignment

Mistake #8. Not establishing the baseline.

Mistake #9. Not researching benchmarking partners thoroughly.

SEVEN STEPS TO EFFECTIVE COMPETITOR BENCHMARKING:

Seven Steps in the Benchmarking Process:

3. Select the best-in-class companies for each area to be benchmarked -- those

4. Measure the performance of the best-in-class companies for each benchmark

7. Implement these programs by setting specific improvement targets and

Strategic Functional Best Practices Product

Ensures a co-ordinate strategic direction regarding benchmarking and reduces the

3. Best Practices Benchmarking

THE CODE OF CONDUCT:

A Ceramics manufacturing company, “Cera-e-Noor” specializes in hospitality and

“Cera-e-Noor” uses imported China Clay vitrified at extremely high temperatures to

VISION OF THE COMPANY:

Genuine Hard Porcelain

Domestic and Institutional Product Ranges

Free of Harmful Materials

Turn Over Benchmarks

Profit Oriented Benchmarks

• To acquire all necessary technical capabilities properly prioritize (e.g: an in-

Merits, Demerits, Strengths and Deficiencies: