Benchmarking, types, process

1. BENCHMARKING

2. Benchmarking
 It is the process of comparing and
measuring an organization’s operations or
its internal processes against those of a
best-in-class performer from inside or
outside its industry.
 It is finding the secrets of success of any
given function or process so that a
company can learn from the information
and improve on it.

3. Key points about Benchmarking
 It is popular improvement tool
 It is concern with processes and practice
 It is respected means that require change
 It between consenting firm that may or may not
be a competitor.
 It compares your processes or practice with the
target company.
 The goal of benchmarking is to find “Secrets of
Success”.
 It is equally beneficial for both large and small
businesses.

4. Types of
Benchmarking

5. Types of benchmarking
 Competitive benchmarking:
 In which a competitors operation is studied from a
distance without the cooperation of the target firm.
 The aim is to learn something that can help to
improve process or product quality.
 Cooperative Benchmarking:
 In which key processes are the focus for thorough
improvement.
 This involves a cooperative effort by two firms

6. Benchmarking
Process

7. Benchmarking Process
 Following are the steps of benchmarking
process
 Obtain Management Commitment
 Baseline your own processes
 Identify your strong and weak processes
 Selected processes to be benchmarked
 Form benchmarking teams
 Research the best-in-Class

8.  Select candidate best-in-class
 Form agreements with benchmarking
partners
 Collect Data
 Analyze data and establish the gap
 Plan action to close the gap
 Implement Change
 Monitor
 Update benchmarks

9. Phases of Benchmarking
 There are three phases of benchmarking
 Preparation
 Execution
 Post-execution
 Preparation
It consists of 1st seven steps of Benchmarking Process
 Obtain Management Commitment
 Baseline your own processes
 Identify your strong and weak processes
 Selected processes to be benchmarked
 Form benchmarking teams
 Research the best-in-Class
 Select candidate best-in-class

10.  Execution:
 Form agreements with benchmarking partners
 Collect Data
 Analyze data and establish the gap
 Plan action to close the gap
 Implement Change
 Post-execution
 Monitor
 Update benchmarks

11. Role of management
in Benchmarking

12. Role of management in
Benchmarking
 It play a crucial role in benchmarking process, in
fact without the approval and commitment of top
management, benchmarking is not possible.
 Following considerations require management’s
approval before the process can start.
 Commitment to change
 Funding
 Human Resources (Personnel)
 Disclosure (disclose of the information regarding processes)
 Involvement

13. Obstacles to successful
Benchmarking
 Some of the common obstacles R
 Internal focus
 Benchmarking Objective Too Broad
 Unrealistic Time tables
 Poor Team composition
 Improper Emphasis
 Selection of wrong partners
 Insensitivity to partners