This document defines and discusses different types of benchmarking. It explains that benchmarking is a process of comparing products, services, or processes to industry best practices in order to improve performance. There are two main categories of benchmarking: problem-based, which addresses specific problems, and process-based, which is done as part of overall process improvement. The document also outlines types of benchmarking like internal, competitive, and functional benchmarking. Finally, it provides steps for carrying out a benchmarking process and common reasons for benchmarking failures.

1. -THARANI RAM,
-MHA,
-COIMBATORE.

2.  Benchmarking is a process of comparison of two or more products, services,
processes or organizational practices.
 BPR is comparing business process with the best process in that area.
 BENCHMARKING – “standard or point of reference”.
 A generic definition of benchmarking is “ a basis for establishing rational
performance goals through the search for industry best practice that will lead
to superior performance”.

3.  Two categories of benchmarking based on what triggers it,
*Problem based benchmarking
*Process based benchmarking
These categories arises out how the benchmarking effort is initiated.

4.  Problem based benchmarking arises out of a problem in the organization.
 Some factors that trigger problem are,
Adverse feedback from customer
Increasing quality cost
Alarming error rates
Increase in cycle time

5. Process based benchmarking wherein it is initiated as a part of
process improvement strategy of the organization.
Process based benchmarking arises out of,
Defined mission
Defined objectives
Defined priorities

6. INTERNAL BENCHMARKING :
 There may be number of teams or divisions within an organization.
 Some performance measure may hold good within the organization itself.
 They would study the best performing division in-house.
COMPETITIVE BENCHMARKING :
 This type of benchmarking is done to improve the performance to the level of the
competitors.
 The competitors performance data is collected from published data and compared
with current performance in the organization.

7. FUNCTIONAL BENCHMARKING:
 Comparing the methods of organization with similar processes.
 Comparing and improving current performance by observing the similar
process in other organization.
INDENTIFYING PROCESS OF BENCHMARKING:
Every process has input and output.
PROCESS
to carry out benchmarking one has to study the characteristic of output.
INPUT OUTPUT

8. SELECT PROCESSES – Select the right process for benchmarking and the
process selected when improved will give highest return on investment.
DETERMINE VITAL MEASURES –Process measure for the evaluation of
selected process should be determined.
PRIORITIZE PROCESSES & MEASURES –A team should carry out an
objective study to prioritize the processes.

9. BENCHMARKING
PROCESS
SELECTION OF A
PROCESS
IMPROVEMENT TEAM
PREPARE A PROJECT
DESCRIPTION
IDENTIFICATION OF
BENCHMARKING
PARTNERS
ADOPT A SUITABLE
BENCHMARKING
MODEL
CARRY OUT
BENCHMARKING

10. Lack of commitment.
Wrong selection of process.
Not being cost effective.
Wrong selection of team members.
Under estimating the time required.
Not positioning the benchmarking within a larger strategy.
Lack of involvement of management.