Bench-marking means improving ourselves by learning from others. Student Seminar Presented by Students of Fakir Mohan University, Balasore

1. Presenters :

2. INTRODUCTION
 Benchmarking is the process of improving
performance by continuously identifying,
understanding, And adapting outstanding
practices found inside and outside the
organization.
 At simplest, benchmarking means "improving
ourselves by learning from others".

3.  Benchmarking is the process
of comparing one's business
process and performance
metrics to industry best and/or
best practices from other
industries.
 Why are others better?
 How are others better?
 What can we learn?
 How can we catch-up?
 How can we become the
best in our industry?
"Benchmarking is the practice of
being humble enough to admit
that someone else at something
and wise enough to try and learn
how to match and even surpass
them at it "

4. HISTORY OF
BENCHMARKING
 Benchmarking was made
popular by Xerox In the
1980s' by Robert camp.
 The term benchmarking was
first used by cobblers to
measure people's feet for
shoes. They would place
someone's foot on a "bench"
and mark it out to make the
pattern for the shoes.

5.  This technique was originally rooted from Japanese
Industry members.
 In the1970s, XEROX was the largest manufacturer of
copiers in the world.
 however, Japanese manufacturers were making
better copier, selling them for less, and making a
good profit.
 This prompted the company to directly compare
itself with its direct and best competitors to
determine what it could do to increase productivity
while decreasing costs.

6.  Benchmarking methodology
is based on the PLAN, DO,
CHECK, ACT (PDCA)cycle
also known as demanding
cycle.
G.H. Watson outlines the development of benchmarking in
five phases:
Phase 1 (1950-1975) Reverse Engineering
Phase 2 (1976-1986) Competitive Benchmarking
Phase 3 (1982-1988) Process Benchmarking
Phase 4 (1988+) Strategic Benchmarking
Phase 5(1993+) Global Benchmarking

7. What is
Benchmarking?
 Benchmarking is an activity
that tells you your position or
study By comparing your
organisation to others.
Reasons....
 The reasons for comparing is
to understand where you
today and what might be
some of the areas that you
need to improve

8. The goal of benchmarking is to identify the
weakness within the organisation and improve
upon them with the idea of becoming the best of
the best.

9. Purpose of
Benchmarking
It does not only concentrate
externally but also works various
internal factors
 Benchmark report helps in quickly
analyzing the health of business
 The benchmarking process states
about the aspect such as Revenue
Expenses and productivity capacity
of employees
 it is followed by across all
companies public private as well as
non profit making engineering
education and many more

10. Main purpose
 Analyze and understand the
organizational existing
working model
 it compares the working
model of one organization
with another
 suggest necessary steps to
compete with leaders
 compare the profit rate
The main beneficial factor is
that it is able to find out the
weaker areas and give focus
for their improvement

11. Features of
Benchmarking
 Good impact on customer
 Helps in raising company standard
 Betterment in learning
methodologies
 Keeps in peace with new
technology
 Strengthen the weakness
 Enhance learning experience
 Works for employee carrier growth
 Strives for the organization force
on success

12. Future Use
 There is a myth about benchmark that is only used by
larger organization but as per survey report
 It is stated that more than half of micro and small and
medium companies are planning to make use of
bench mark
 Around 57% of small and 47% of the medium
organization are planning to make the use of bench
mark process

13. Various types of Benchmarking
 Benchmarking is a business tool, used by the
organization to bring improvement in their
performances by studying and learning from the
best practices and analyzing the process of
learning organization to be successful
 Product benchmarking
 Process benchmarking
 Competitive benchmarking
 Functional benchmarking
 Performance matrices
 Generic benchmarking
 Internal benchmarking
 Global benchmarking

14. Product Benchmarking
 It is that type of benchmarking in which a company
buys a product of a competitor and tears it down to
understand it's feature and performance.
 For the improvement of this the company can either
change a product entirely based on the competitor
or it can it can improve certain features and
relaunch the product.
 It's helps in improvement of own product with
competitor's product.
 Helps to gain competitive advantages for long run if
executed correctly.

15. Process Benchmarking
 It is commonly used in the service industry.
 In this case the question is arising about how a certain
company is performing better than others in certain cases
or in its entirety is measured and compared with own
company.
 Data are collected through interview, survey, market
research, site visits etc.
 Improvement in services of the organization which can
compared with the market leader.
 The process can be difficult to follow and maintain that
standard would be challenging.
 Achieving those standards may be costly.

16. Competitive Benchmarking
 In this type the competition is wide in regard to product
bench marking
 While product benchmarking competition is only about
particular product which is chosen but in competitive
bench marking the entire product, process or services
may be chosen with the direct head to head competitor.
 Comparison may also include
the department
 FINANCE
 MARKETING
 HR
 RESEARCH & DEVELOPMENT ETC
 If helps to know the competition in a better way.
 some times the competitors might provide misleading
information which wouldn't help to improve the process in
any way.

17. Functional Benchmarking
 In this benchmarking we have to compare results
to an industry with which you don't compete
directly.
 e.g- airlines company comparing their customer
service two subsidiary hotel customer service & no
other airlines.
 they provide the information on industry trend and
comparisons can be done quantitatively.

18. Performance matrices
 It is a numerical standard against which the
process of the client can be compared.
 This is determined by analysis & details survey are
interviews in which the pants can identify the
gaps between the performances and conduct
own follow up studies for determine better
method of improvement.

19. Generic Benchmarking
 In this benchmarking focus influences on working and
determining the mattresses such as- cost per
employee, profit per employee or return on
investment that provide a common basis of
comparison Irrespective of industry.
 In sales generic benchmarking is very common to
determine cost and profit per employee.
 It is non competitive & non threatening.
 It has a broad & new perspective along with innovative
process.
 It takes long time to plan.

20. Internal Benchmarking
 It is a very common approach used by the
companies in which compare the process internally
 Comparison can be between employee of one
dept. to employee of another dept.
 Profit of one dept. with other.
 One product line with another.
 It is only possible for large MNC and corporation to
do the internal bench marking very easy on account
of having large no of employee.

21. Strategic Benchmarking
 It is very important from the operation point as it
is used to develop the vision of transformed
organization.
 A little deviation or small error could affect the
entire organization in an adverse way.

22. Global Benchmarking
 As the name suggest the comparison is
done with the corporate of different
countries with the same or different
industry.

23. Process of Benchmarking
 PLANNING
 ANALYSIS
 INTEGRATION
 ACTION
 MATURITY

25. Merits of Benchmarking
 Quality Of Work
 Increased Competition
 Increased Performance
 Developing Improvements
 Implement Creative Ideas

26. Demerits of Benchmarking
 Lack of result
 Lack of understanding
 Lack of customer satisfaction
 Insufficient information

27. Case study
Xerox's success is the first in the history of
benchmarking.
It has become a real model since, being in a critical
situation in 1972.
Xerox has achieved what is called today a top-
benchmarking partner status.
In 1979, xerox started benchmarking and by 1989, had
won the malcom Baldrige National Quality Award
(Boxwell, 1994).

28. The Xerox’s benchmarking Methodology was ten- step
process (Camp, 1989)
 Step 1 - Identify what is to be benchmarked
 Step 2 - Identify comparative Companies
 Step 3 - Determine data collection method and
collect data
 Step 4 - Determine current performance Gap
 Step 5 - project future performance levels
 Step 6 - Communicate benchmarking findings
and gain acceptance
 Step 7 - Establish functional goals
 Step 8 - Develop action plans
 Step 9 - Implement specific actions and monitor
results
 Step 10 - Recalibrate Benchmarks Xerox

30. Conclusion
 Camp(1989) calls benchmarking an applied
discipline.
 It cannot be learned by taking a class or reading a
book. It is a hands- on learning experience, and the
drawbacks to this type of a process is the mistakes
are inevitable.
 However, senseless mistakes avoided by setting goals
and following the rules to achieve them.
 Companies that benchmark identify specific areas of
weakness, and find solutions to turn them into
strengths.
 Benchmarking is a process that can be and has been
adapted to fit the managerial inclination of an
organization.
 It can be carried out in 33 steps or just five, however
the essence remains the same.

31.  It is also very important to remember improvements
are continuous and benchmarks go out of date
quickly, the competitor's performance will probably
continue to improve in advance of one's own.
 The study should always remain honest and
thoroughly professional.
 During the past several Years, through extensive
efforts, leading firms have come to realize that there
is a better way to focus benchmarking activities for
greater payback.
 Formulating a strategy in an attempt to continuously
improve process has lead to myriad benchmarking
steps.
 This paper attempted to provide an integrated
approach to benchmarking and illustrated the
various methods followed by enumerating the case
study of xerox.