Benchmarking[1]

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Benchmarking[1]

  1. 1. <ul><li>KETAKI KALE 20 </li></ul><ul><li>HARSHAL KAMDAR 21 </li></ul><ul><li>KHYATI PARIKH 43 </li></ul>BENCHMARKING
  2. 2. Definition: <ul><li>It is a process of continuous improvement in the search for competitive advantage. </li></ul><ul><li>It measures a company’s products, services and practices against those of it’s competitors or other acknowledged leaders in their fields. </li></ul>
  3. 3. Types of Benchmarking <ul><li>Internal: Between business units </li></ul><ul><li>Competitive: Between competitors </li></ul><ul><li>Functional: Between similar processes within an industry </li></ul><ul><li>Generic: Between operations under unrelated industries </li></ul><ul><li>Collaborative: Comparison by groups of companies </li></ul>
  4. 4. Why Companies need Benchmarking? <ul><li>Striving for superiority </li></ul><ul><li>Seeing, Understanding and Learning from best practice. </li></ul><ul><li>A realistic achievable picture of the desired future, for instance, </li></ul>
  5. 5. 1950’s 1990’s Large Black and White screen Large colour Portable Miniature Video Recording Facility Digital Stereo sound High Density Picture
  6. 6. The Process Choose Process Form Team Develop baseline Select Partners Compare Processes Plan For Change Manage change
  7. 7. The Partners Internal Partners External Partners Best Practice Partners Time Normal Growth Benchmarked Growth G R O W T H
  8. 8. Benchmarking-The Overview INPUT OPERATIONS OUTPUT RESULTS CONTINUOUS IMPROVEMENT COMMITMENT UNDERSTANDING PROFITABILITY EFFICIENCY
  9. 9. Pros of Benchmarking <ul><li>Measure Strength and Weakness </li></ul><ul><li>Engine for Growth and Expansion </li></ul><ul><li>Creating new Business Development Strategies </li></ul><ul><li>Increasing Efficiency & Productivity </li></ul><ul><li>Motivating Employees </li></ul>
  10. 10. Cons of Benchmarking <ul><li>Time Consuming and Expensive </li></ul><ul><li>Tough process which needs expertise knowledge </li></ul><ul><li>High Risk </li></ul><ul><li>May eat up significant resources of the company </li></ul>
  11. 11. Cost of Benchmarking <ul><li>It is a moderately expensive process, but most organizations find that it more than pays for itself. </li></ul><ul><li>Visit costs </li></ul><ul><li>Time costs </li></ul><ul><li>Benchmarking Database Costs </li></ul>
  12. 12. Case Study - Hewlett Packard Ltd. <ul><li>- Established in UK in 1961. </li></ul><ul><li>- In 1970, its Japan Unit was facing severe competition from other players </li></ul><ul><li>- In 1976, the Japan Unit set goals to win the coveted Deming Prize by 1983 (within 7 years). </li></ul><ul><li>- They set bold goals and strived hard to improve their performance in every field. </li></ul><ul><li>- They achieved their goals in 1982 i.e. a year earlier than their estimated time period. </li></ul>
  13. 13. References <ul><li>Best Practice Benchmarking </li></ul><ul><li> - Sylvia Codling </li></ul><ul><li>Global Benchmarking </li></ul><ul><li>- Universities Press India Ltd. </li></ul><ul><li>www.12manage.com/methods_benchmarking.html </li></ul>
  14. 14. THANK YOU

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