BENCHMARKING

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MEANING
Benchmarking is simply
process of measuring the
performance of one
company against the best in
the same or another
industry.


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DEFINATION
Benchmarking is a process of
identifying, understanding and
adapting outstanding practices and
processes from the organizations
anywhere in the world to help your
organization improve its
performance.

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  Benchmarking is A
 PROCESS
CONTINUES SYSTEMATIC
STRUCTURED EVALUATING
ONGOING UNDERSTANDING
LONG TERM FORMAL
ANALYITICAL FOR ASSESING MEASURING
ORGANISED COMPARING

RECOGNISED BEST IN CLASS

RGANISATION COMPANIES INSTITUTION
THAT ACKNOWLEGED AS
THE IDENTIFIED
WORLD CLASS
ARE REPRESENTING
BEST PRACTICE

ORGANISATIONAL COMPARISION
FOR THE ORGANISATIONAL IMPROVEMENT
MEETING INDUSTRIES BEST PRACTICES
PURPOSE OF DEVELOPING PROCESS ,PROJECT OBJECTIVE
ESTABLISHING PRIORITES,TARGETS,GOALS

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 BENCHMARKING :
IS
 Continuous process
 Provides valuable information
 Learning
 Time consuming
 Viable tool, generically applicable
IS NOT
 One time event
 Provides simple answer 5
ORIGIN
 Benchmarking, originally invented as a formal
process by Rank Xerox,
the organization experienced market erosion from
competitors, primarily Japanese. These competitors
were marketing higher quality products in the United
States at the same price or lower as Xerox.
Xerox found that the Japanese were able to assemble
quality products at a low price. This was hard for
Xerox to grasp because they were the first to develop
the photocopy and their name had come to be
synonymous with photocopies. How could the
Japanese be beating them at their own game?

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Xerox found that they had to regroup. In doing this
they use competitive benchmarking a fundamental
part of their operations by the early eighties. Xerox
began to study other organizations within and out of
their industry. By 1983, Xerox had bench marked
more than 230 process performance areas in their
operation.
They looked at all aspects of their business.
Identifying the best processes used by others, Xerox
adapted them for their own use. This is how they
regained their core competency and strategic
advantage in the photocopying industry

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Benchmarking

TYPES OF
BENCH MARKING
 INTERNAL BENCHMARKING
 COMPETATIVE BENCHMARKING
 PROCESS OR GENRIC BENCHMARKING

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Benchmarki
ng
INTERNAL
BENCHMARKING
MEANING
Internal benchmarking is used to identify
the best in house practices in the
organization and to disseminate these
practices throughout the organization.
Similar activities in different locations,
departments etc

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Internal
benchmarking
ADVANTAGES
 “SHARING”-communication
 Data easy to get
 Good results, immediate benefits


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Internal
benchmarking

DISADVANTAGES
 Limited focus
 Internal bias

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Types
COMPETITIVE
BENCHMARKING
MEANING


Direct competitors, same customer base

measuring the performance, products, and
services of an organization against its direct or
indirect competitors in its own industry.

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Competitive
Benchmarking

ADVANTAGES
Comparable practices and technologies.
History of information


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Competitive
Benchmarking
DISADVANTAGES
Data collection difficulties
Ethical issue


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Types
PROCESS OR GENERIC
BENCHMARKING
MEANING


ØState of art processes/products/services.

ØFocuses on day to day operations of the
organization

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Process
Benchmarking
ADVANTAGES
Breakthrough ideas
High potential for innovation

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Process
Benchmarking
DISADVANTAGES


Some information not transferable

Time consuming


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BENCHMARKING
PROCESS
PLAN THE PROJECT

FORM THE TEAMS

RECYCLE
COLLECTION OF DATA

ANALYSIS THE DATA

TAKE ACTION

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1. PIAN THE PROJECT
Identify the strategic intent
Select processes to benchmark
Identify customers’ profiles and
expectations

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2. FORM THE TEAM
Select the Team Members
ØConsult with stakeholders
ØBalance the roles and skills
Train the Teams
ØThe model
ØKnowledge of tools, techniques
ØLeadership & communication skills


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3. COLLECT THE DATA
How you perform the process
ØFlow charts
ØCustomer feedback
Getting the Data
ØInterview guide
ØPost-site visit


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4. ANALYISE THE DATA
Find the Benchmark
ØAssign an ideal, or take the maximum
Compare Performance
ØGraphical presentation - current situation
ØGraphical presentation - historical & future
Find the Gaps


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5. TAKE
Set Goals
ACTION
ØClose the performance gaps -meet, exceed
Decide Change Processes
Ø– Adapt to match company culture
Prepare Budget
ØCommit the resources
Implement
Ø– Train, gain acceptance, support
Monitor Performance
ØFutures
ØRecycle through the model
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