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What is Benchmarking?
Xavier Institute of Management, Jabalpur Monday, 15 October 2018
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Benchmarking is the process of
measuring an organization’s internal processes
then identifying, understanding, and adapting outstanding practices from other
organizations considered to be best-in-class.
Definition
“measuring our performance against that of best-in- class companies,
determining how the best-in-class achieve those performance levels
and using the information as a basis for our own company’s targets,
strategies and implementation .”
The Essence of Benchmarking
Xavier Institute of Management, Jabalpur Monday, 15 October 2018
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To Obtain an External Perspective of What Is Possible
To Assist in Setting Strategic Targets
To Promote Improvements in Performance
To Establish a Competitive Edge
To Enhance Customer Satisfaction
To Reduce Costs
To Improve Employee Morale
To Achieve Quality Awards
To Survive
When Benchmarking?
Xavier Institute of Management, Jabalpur Monday, 15 October 2018
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If the company’s QMS is not properly developed, documented and
implemented.
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Internal benchmarking - Within one’s org.
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Best Practice
Overlap
Competitive
• Industry leaders
• Top performers with
similar operating
characteristics
Functional Internal
• Top performers • Top performers
regardless of industry within company
• Aggressive innovators • Top facilities
utilizing new within company
technology
Types/ Approaches Of Benchmarking
Xavier Institute of Management, Jabalpur Monday, 15 October 2018
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Performance or operational benchmarking:
It involves – pricing, technical quality, features and other quality.
Strategic benchmarking:
Examines how companies compute and seeks the winning strategies that have
led to competitive advantage and market success.
Five Phases Of Benchmarking
Xavier Institute of Management, Jabalpur Monday, 15 October 2018
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Planning: Identify the product, service or process to be benchmarked
Analysis: Determine the gap between the firm’s current performance and that of
the firm’s benchmarked and identify the causes of significant gaps.
Integration: Establish goals and obtain the support of managers who must
provide the resources for accomplishing the goals
Action: Develop action plans, and team assignment, implement the plans,
monitor progress and recalibrate benchmark as improvements are made.