benchmarking meaning, types, purposes, steps.

1. AAMIR ANSARI
BENCHMARKING

2. HISTORY
• The term benchmarking was originally used by early land
surveyors, who used the term to identify a fixed point from
which all other measurements are made.
• In the late 1970's however, it took a broader
meaning. Applied to an organization, benchmarking is a
process to determine who else does a particular activity the
best and emulating what they do to improve performance.

3. INTRODUCTION
• Benchmarking is the sharing of information so that both
companies can Improve.
o Benchmarking is used to measure performance using a
specific indicator (cost per unit of measure, productivity per
unit of products, etc.)
o First step is to document current performance: this can allow
company to pinpoints its goal, trying to accomplish, what is
does and gather ideas for improvement.

4. WHY DO COMPANIES BENCHMARK?
• Companies use benchmarking as a way to help become more
competitive. By looking at how other companies are doing,
they can identify areas where they are underperforming.
• They are able to accelerate the process of change because
they have models from other companies in their industry to
help guide their changes.

5. 7 PRIMARY PURPOSE OF
BECHMARKING…

6. BENCHMARKING TYPES
1. Process benchmarking: includes studying process flows,
operating systems, process technologies and the operations
of target firms and departments.
2. Financial benchmarking: is to perform financial analysis and
to compare the results in an effort to asses overall
competitiveness.
3. Performance benchmarking: includes products and services,
cost structure, speed of concept to market, quality measures
and other performance evaluations.

7. BENCHMARKING TYPES
• 4. Product benchmarking: when designing new products or
update to current products.
• 5. Strategic benchmarking: involves target firms that have won
prestigious honors such as Malcolm Baldridge Award, the
Shingo prize, or the Deming Prize.
• 6. Functional benchmarking: focuses on single function to
improve operation of that function.

8. BASIC BENCHMARKING METHODOLOGY
1. PLAN:
• What to benchmark ?
 Identify critical process.
 Collect internal data for comparison, understand strength and weakness of
current process.
• Who to benchmark ?
 Internal units: comparison with an institution.
 Other colleges and universities: comparison across institutions.
 Functional comparison: across diverse setting – higher education, corporate,
industry etc.
 Best in class: comparison with exceptional performers.

9. BASIC BENCHMARKING
METHODOLOGY
• 2. ANALYZE:
• Collect data:
 Collect comparative data – qualitative/quantitative.
 Calls, surveys, sites, visit, interviews etc.
 Systematic collection.
• Analyze data:
 Gap between performance – Are others better? Why are they better?
 New strategies / practice for adoption.

10. BASIC BENCHMARKING
METHODOLOGY
• 3. ACT:
• Implement improvements:
 Action plan for change.
 Implement changes.
 Measure results for effectiveness.

11. ROBERT CAMP’S BENCHMARKING
PROCESS
1. Decide what to benchmark ?
2. Identify whom to benchmark?
3. Plan and conduct the investigation.
4. Determine the current performance gap.
5. Project future performance levels.
6. Communicate benchmarking findings.
7. Revise performance goals.
8. Develop action plan.
9. Implement specific actions and monitor progress.
10. Recalibrate the benchmark.

12. REFERENCES
• https://www4.uwm.edu/cuts/bench/bm-desc.htm
• http://en.wikipedia.org/wiki/Benchmarking
• https://www.youtube.com/watch?v=TcSjoJY5N60

13. • THANKS