Benchmarking By:- VIDYA K. MBA-III sem ROLL NO.: 57
Benchmarking Benchmarking is the process of continually searching for the best methods, practices and processes, and either adopting or adapting their good features and implementing them to become the “best of the best.” How is benchmarking used?
Compare performance of an existing process against other companies’ best-in-class practices.
Determine how those companies achieve their performance levels.
Improve internal performance levels.
Benchmarking is used for both comparison of performance as well as to understand the potential for improvement
Policy regarding benchmarking protocol should be communicated to all employees involved, prior to contacting external organizations. Guidelines should address the following areas:
Misrepresentation – do not misrepresent your identity in order to gather information
Information requests– a request should be made only for information your organization would be willing to share with another company
Sensitive/proprietary information– avoid direct benchmarking of sensitive or proprietary information
Confidentiality – treat all information as confidential
Avoiding inappropriate communication and contacts with competitors
Never propose, enter, or engage in a discussion related to any agreements with a competitor to fix prices, in terms or conditions of sale, costs, profit margins, or other aspects of the competition
Keep communications with competitors to a minimum – make sure there is a legitimate business reason for all such communications
Consult with business legal counsel before initiating any contact with competitors regarding Six Sigma (or any other topic):
Training of suppliers and customers – they may also be competitors
Synchromesh Computing Services
Benchmarking and Certification
Performance and Power
Out of the Box Experience Testing
First Impressions Comparison and Competitive Analysis
Sales Force Technical Training with Joint Sales Calls
Zap Flyer Marketing System
Fluent Core Documentation System
History of the Company
ECL (EEMBC Certification Laboratory) formed February 1998
What they learned?
Industry-standard benchmark groups only go so far … still a pressing need for head-to-head benchmarking, analysis
Must have a much wider range of benchmarks, and do “Customer benchmarking”
Synchromesh Computing, LLC formed December 2003 to provide much more comprehensive services by same people
What They Do Well …
Benchmarking and Performance Analysis
Software Testing and Software Engineering Consulting
Industry Standards Group Creation, Management, and Support
How They Benchmarked Obtain the system (hardware, software, documentation) and create: Benchmark Test and Measurement Plan Benchmark Tests (software) and Test Fixtures Performance, Power Consumption, Code Size, Functionality Stabilize the Environment Execute Benchmark Tests, Control, and Measure Analyze, Debug, Assess, Compare/Contrast, Re-run Generate Test Results, Analysis, White Papers, etc. Consult If applicable, Certify Results
Examples of Key Business Processes IBMXeroxBritishTelecom Marketing Information Capture; Marketing Selection; Requirements; Hardware/Software Development; Service Development; Production; Customer Fulfillment/ Relationship; Service Customer Feedback; Marketing; Solution Integration; Financial Analysis; Plan Integration; Accounting; Human Resources IT Infrastructure Customer Engagement; Inventory Mgt. & Logistics; Product Design / Engineering; Product Maintenance; Technology Maintenance; Production & Operations Mgt. Marketing Management; Supplier Management; Information Management; Business Management; Human Resources Management; Leased & Capital Asset Mgt. Legal; Financial Management. Direct Business; Plan Business; Develop Processes; Manage Process Operations; Provide Personnel Support; Market Products & Services; Provide Customer Service; Manage Products & Services; Provide Consultancy Services; Plan the Network; Operate the Network; Provide Support Services; Manage Information Resource; Manage Finance; Provide Technical R&D