Benchmarking involves systematically searching for best practices from other organizations and implementing innovative ideas to improve performance. It is a common tool used by many companies to enhance business and quality. There are three main types of benchmarking: internal, competitive, and process benchmarking. The benchmarking process involves six main steps - deciding what to benchmark, understanding current performance, planning the study, studying other organizations, learning from collected data, and using the findings to implement changes through action plans and achieve breakthrough performance.
2. Definition
Benchmarking is the systematic search for best practices,
innovative ideas, and highly effective operating procedures.
it is the common sense proportion to learn from others what
they do right and then imitate it to avoid reinventing the
wheel.
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3. Introduction and use:
Benchmarking is an increasingly effective
popular tool.
It is used extensively both manufacturing
and service organizations, including
Xerox
AT&T
Motorola
Ford
Toyota
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4. Benchmarking is common elements of quality standards, such
as the Chrysler, Ford, and General Motors Quality System
Requirements.
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5. Reasons to Benchmark
For functions that are critical to the business
mission, organizations must continue to
innovate ass well as Imitate. Benchmarking
enhances innovation by requiring
organizations to constantly scan the external
environment and to use the information
obtained to improve the process.
Potentially useful technologies
breakthroughs can be located and
adopted early
In our words we can say that benchmarking
is to enhance business and improve its
quality.
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6. Dia: 6
What is our
Performance level ?
How do we do it ?
What are others`
Performance levels ?
How did they get there ?
Creative
Adaptation
Breakthrough performance
7. Types of benchmarking:
There are three main types of benchmarking:
Internal
Competitive and
Process
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8. Process of benchmarking:
The following six steps contains the
core techniques:
Decide what to benchmark
Understand current performance
Plan
Study others
Learn from data
Use the findings
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9. Decide what to
benchmark ?
Benchmarking can be applied to the any business or
production process.
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10. Understanding current
performance:
To compare practices to outside benchmarks, it is first
necessary to thoroughly understand and documents the
current process of your organization that where you stand.
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11. Planning
Once internal process is understood and documented, it is
possible to make decisions about how to conduct the study.
The team should be decided that what type of
benchmarking to be preformed.
Benchmarking planning is a learning process.
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12. Studying others
Benchmarking studies look for two types of
information:
A description of how best in class processes are
practices and
the measurable results of these practices
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13. When most people thinks of learn benchmarking they
generally think of conducting original research through sites
visits and interviews.
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14. Learn from the data:
Learning from the data collected in a
benchmarking study involves answering a series of
questions:
Is there a gap between the organizations
performance and the performance of the best-in-
class organizations ?
What is the gap ? How much is it ?
Why is there a gap ? What does the best-in-class do
differently that is better ?
If best-in-class practices were adopted, what would
be the resulting improvement ?
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15. Its main objective is to determine from overall effect on the
internal operation of adapting the best-in-class practice.
In other words, what is the size of the gap and what are the
appropriate benchmark metrics and objectives ?
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16. Using the findings:
Benchmarking is the waste of time if
change does not occurs as a result.
To effect the change, the findings
must be communicated to the
people within the organization who
can enable improvement.
The findings must be translated to
GOALS and OBJECTIVES and
ACTION PLANS must be developed
to implement new process.
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17. The generic steps for the development and
execution of action plans are:
Specify tasks
Sequence tasks
Determine resource needs
Establish task schedule
Assign responsibility for each task
Describe expected results
Specify methods for monitoring results.
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18. Goals and objectives should be consistent with the execution
of the action plan so that the end result is process superiority.
The best results are obtained when process owners fully
participate in the design and execution of the plan.
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