2. Benchmarking is a process of comparison of two or more products, services,
processes or organizational practices.
BPR is comparing business process with the best process in that area.
BENCHMARKING – “standard or point of reference”.
A generic definition of benchmarking is “ a basis for establishing rational
performance goals through the search for industry best practice that will lead
to superior performance”.
3. Two categories of benchmarking based on what triggers it,
*Problem based benchmarking
*Process based benchmarking
These categories arises out how the benchmarking effort is initiated.
4. Problem based benchmarking arises out of a problem in the organization.
Some factors that trigger problem are,
Adverse feedback from customer
Increasing quality cost
Alarming error rates
Increase in cycle time
5. Process based benchmarking wherein it is initiated as a part of
process improvement strategy of the organization.
Process based benchmarking arises out of,
Defined mission
Defined objectives
Defined priorities
6. INTERNAL BENCHMARKING :
There may be number of teams or divisions within an organization.
Some performance measure may hold good within the organization itself.
They would study the best performing division in-house.
COMPETITIVE BENCHMARKING :
This type of benchmarking is done to improve the performance to the level of the
competitors.
The competitors performance data is collected from published data and compared
with current performance in the organization.
7. FUNCTIONAL BENCHMARKING:
Comparing the methods of organization with similar processes.
Comparing and improving current performance by observing the similar
process in other organization.
INDENTIFYING PROCESS OF BENCHMARKING:
Every process has input and output.
PROCESS
to carry out benchmarking one has to study the characteristic of output.
INPUT OUTPUT
8. SELECT PROCESSES – Select the right process for benchmarking and the
process selected when improved will give highest return on investment.
DETERMINE VITAL MEASURES –Process measure for the evaluation of
selected process should be determined.
PRIORITIZE PROCESSES & MEASURES –A team should carry out an
objective study to prioritize the processes.
10. Lack of commitment.
Wrong selection of process.
Not being cost effective.
Wrong selection of team members.
Under estimating the time required.
Not positioning the benchmarking within a larger strategy.
Lack of involvement of management.