This document discusses benchmarking, including defining it as comparing business processes and performance metrics to industries' best practices. It outlines the benchmarking process as planning, finding comparable organizations, collecting data, analyzing the data, and improving based on findings. The document also describes different types of benchmarking, such as process, financial, performance, product, strategic, and functional benchmarking. Finally, it explains that benchmarking is used in both the private sector to gain competitive advantages, and the public sector to improve services.

1. Purchasing management & sourcing
Presented by: Najlaâ Maslouhy
Prof : Mr Yahya Dkhisi
08/01/2017 12:50

2. A.What is Benchmarking
B.Benchmarking process
C.Types of Benchmarking
D.Why Benchmarking?
E.VIDEO
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3. What is Benchmarking?
• At its simplest, benchmarking
means:
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4. Benchmarking is the process of comparing
one’s business process and performance
metrics to industries bests and/or best
practises from other industries.
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What is Benchmarking?

5. 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?
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6. Benchmarking process
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1-PLAN
2-FIND
3-
COLLECT
4-
ANALYZE
5-IMPROVE

7. Types of Benchmarking?
There are a number of different
types of bench-marking, which are
driven by different motivating
factors and thus involve different
comparisons. Some of the major
types of benchmarking are as
follows:
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8. 1.Process benchmarking:
includes studying process
flows, operating systems,
process technologies and
the operations of target
firms and departments.
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Types of Benchmarking?

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10. 2. Financial benchmarking: is to
perform financial analysis and
to compare the results in an
effort to assess overall
competitiveness.
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Types of Benchmarking?

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3. Performance benchmarking: includes
products and services, cost structure,
speed of concept to market, quality
measures and other performance
evaluations.
Types of Benchmarking?

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14. 4. Product benchmarking:
when designing new
products or update to
current products.
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Types of Benchmarking?

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19. «ONLY THINGS THAT ARE COMPARABLE CAN BE COMPARED»
 If these comparisons are done correctly, is it called BENCHMARKING
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Types of Benchmarking?
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.

21. Why Benchmarking?
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• In the Private Sector
In the private sector, the purpose of
benchmarking is to gain a
competitive edge. A benchmarking
approach has become embedded in
successful commercial organizations
as a means of seeking innovation
outside the industry paradigm - a
way of keeping at the forefront of the
competition.

22. • Recent surveys show that
benchmarking is the third most
used management tool. Interest in
benchmarking is continuing to grow
across the world. Benchmarking is
also being recognized as a
valuable tool for external learning
strategies.
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Why Benchmarking?

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• In the Public Sector
Over recent years, public sector
organisations across the world
have gradually been turning to
benchmarking their public
services. In the public sector,
benchmarking has been
acknowledged as a powerful tool
for improving and bringing about
the sort of step changes needed
to deliver modern public services.
Why Benchmarking?

24. • This is against a background in which
the drivers for change are becoming
as intense as the competitive
pressures felt by industry. It has also
been recognised that efficient and
effective public services play a vital
part in improving private sector
competitiveness by reducing the
burden on business and compliance
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Why Benchmarking?

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

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