Benchmarking

1. BENCHMARKING
Meeyakhan Khan Mohamed
Assistant Professor,
Department of CSE

2.  If you know your enemy and know yourself, you need
not fear the results of a hundred battles.
---SUN TZU, a Chinese General in 500 B.C.
 Japanese DANTOTSU word has the meaning of
striving to be the ‘BEST OF BEST’. This is the
essence of BENCHMARKING
BENCHMARKING

3. Bench Marking:
 Benchmarking is a systematic method by which organization
can measure themselves against the best industry practices.
 Essence of BM is the process of borrowing ideas and
adapting them to gain competitive advantage.

4. Bench Mark is the systematic search for best practice, innovative
ideas and highly effective operating procedure
 “It is Hazard to copy .It is necessary to understand the theory of
what one wishes to do.”---W. Edward Deming
 “It is the search for the industry best practices that lead to
superior performance”. --- Robert camp
BM Defined:

5. What is our
performance level
What are others’
performance levels?
How did they get there
Creative
Adaptation
Breakthrough
Performance
BM Concept:

6. Reasons for Benchmarking:
 To achieve Business & Competitive Objectives.
 To establish goals & Objectives Based on External Environment.
 Cost Efficient.
 Continuous Improvement & New Development. Defining Customer
Requirements
 Measures of Productivity
 Becoming Competitive
 Industry best practices to be achieved

7. Phases S.no Steps
Planning 1 Earmark what is to be Bench Marked ?
2 Identify the best competitor
3
Determine the data collection method and start
collecting data
Analysis 4 Determine the current performance GAP
5 Project future performance levels
Benchmarking Process:

8. Phases S.no Steps
Integration 6 Communicate bench mark findings and gain
acceptance
7 Establish Functional Goals
Action
8 Develop Action Plans
9 Implement specific actions and monitor Progress

9. Phases S.no Steps
Maturity 10 Recalibrate Benchmarks
11 Attain the Leadership position
12 Integrate Practice into the Process

10. Benchmarking Template:
Benchmark
WHAT?
U
S
E
T
H
E
M
Output, Results, Success Factor
WHO /WHAT
is Best
How do
We do It ?
How Do
They do it ?
DATA
ANALYSIS
DATA
COLLECTION
DATA
COLLECTION

11. First Generation
Second Generation
Third Generation
Fourth Generation
Fifth Generation
Reverse Bench Marking( product)
Process Bench Marking
Global Bench Marking
Strategic Bench Marking
Competitive Bench Marking
Sixth Generation
Seventh Generation
Intrapreneual Bench Marking
ERP Bench Marking
Quality of Life Bench Mark
1.
2.
3.
4.
5.
6.
7.
8.
9. Values Bench Marking
Self Bench Marking
10.
Generations of Benchmarking :

12. Types of BM :
 Internal B M
E.g. Eicher Tractor Comparison Between Units
 Competitive B M (Product oriented)
Direct Product Competitor
 Generic B M (Process oriented)
Same process or functions like Customer service, order entry,
regardless of industries .

13. Benefits of BM :
 Best Practices incorporated into the process
 Motivation for creativity & innovation
 Technological Breakthrough in one’s industry
 Better professional growth
 Meet effectively customer requirements
 Assist in attaining competitive position

14. Resources
 You can find this lecture slide at
http://nce.ac.in/wp/wp-
content/uploads/2010/10/BE.html
 Pages 219-232 from Total Quality Management by
Dale H.Beterfield….(your text for the module)