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Bench Marking
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Bench Marking
Definition
Bench Mark is the systematic search for best
practice, innovative ideas and highly effective
operating procedure
W. Edward Deming
It is Hazard to copy .It is necessary to understand the
theory of what one wishes to do.
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Definition By ROBERT CAMP
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Benchmarking Concept
What is our What are others’
performance level performance levels?
How did they get there
Creative
Adaptation
Breakthrough
Performance
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Reasons for Bench Marking
• To achieve Business & Competitive
Objectives.
• Goals & Objectives Based on External
Environment.
• Cost Efficient.
• Continuous Improvement & New
Development.
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Bench Marking Process
Phases S.no Steps
Planning 1 Earmark what is to be Bench
Marked ?
2 Identify the best competitor
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Determine the data collection
method and start collecting data
Analysis 4 Determine the current
performance GAP
Action
8 Develop Action Plans
9 Implement specific actions and
monitor Progress 9
Bench Marking Process
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Bench Marking Template
Output, Results, Success Factor
Benchmark WHO /WHAT
WHAT? is Best
DATA
COLLECTION
T
U DATA H
ANALYSIS
E
S DATA
COLLECTION
M
How do How Do
We do It ? They do it ?
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Generation of Benchmark
10. Self Bench Marking
Step III:
B M GAP Step II:
Determine own
Performance
Step VI : Schedule for
Change
PRESENT POSITION 13
FUTURE POSITION
Reasons For Bench Mark
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Types of Bench Mark
Internal Benchmark:
E.g. Eicher Tractor Comparison Between Units.
Competitive Benchmark:
Direct Product Competitors.
Functional Benchmark:
Functional
E.g. Best Logistics from same industries (or) Any
industries.
Generic Benchmark:
Same process or functions like Customer service,
order entry, regardless of industries.
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Benefits of Benchmarking
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.
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THANK YOU
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