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Benchmarking Quality

Definition
Benchmarking is defined as
measuring the performance against
of the best-in-class companies
determining how the best-in-class
achieve those performance levels
and using the information as a basis
for companys targets, strategies and
implementation.

Types of Benchmarking
Strategic Benchmarking
Performance Benchmarking or
competitive Benchmarking
Process Benchmarking
Functional Benchmarking or Generic
Benchmarking
Internal Benchmarking
External Benchmarking
International Benchmarking

Select companies noted for their


best practices
Company
American Airlines
American Express
(Travel Services)
Disney World
Dominos Pizza
General Electric
Honda

Function
Information system
Billing
Optimum Customer
Experience
Cycle time (Order to
Delivery )
Management Processes
New Product
Development

Contd.

Hewlett-Packard
Merck
Motorola
Marriott
NEXT

Wal-Mart
Xerox

Order Fulfillment
Employee-Training
Flexible
manufacturing
Admission
Manufacturing
excellence
Information system
Benchmarking

Processes involved in Benchmarking

Planning
Collecting data & information
Analyzing the findings
Recommendations making & doing
Monitoring & reviewing

Examples of Benchmarking
Strategic
Benchmarking
Performance or
competitive
Benchmarking
Process Benchmarking
Functional or Generic
Benchmarking
Internal Benchmarking

Change in technology or
customer requirements

Improving performance in
key areas or activities
Improving key processes
in short time
Improving activities or
services for which
counterparts do not exist.
Several business units
within the same
organization exemplify
good practices.

Contd
External
Benchmarking

International
Benchmarking

Improving lack of good practices with


examples of other organizations

Good practice
organizations are
located in other
countries.

Benefits from Benchmarking


Step changes in performance and
innovation
Improving quality and productivity
Improving performance measurement
Continuous improvements such as :
Raised awareness and greater openness
Greater confidence in new approaches
Greater involvement and motivation in
change programmes

Contd
Increase in willingness to share solutions and
build consensus to accommodate changes.
Better understanding of the big picture
and gaining a broader perspective of the
interplay of the factors (or enablers)that
facilitate the implementation of good
practice
Increasing collaboration and understanding
of the interactions within and between
organizations.