BENCH MARKING
It is
defined as measuring your performance against that of best in class companies,
determining how the best in class achieve those performance levels and using
the information as a basis for your own company’s targets, strategies &
implementations.
“Benchmarking
is systematic & continuous measurement process: a process of continuously
measuring & comparing our organizations business process AGAINST PROCESS
–LEADERS anywhere in the world to gain information, which will help organization
to take action to improve its performance”.
The
search of industry best practices that lead to superior performance. Bench
marking helps a company to discover its strengths & weaknesses and those of
other industry leaders and to learn how to incorporate the best practices into
its own operations.
In one
of the recent methodologies to gain & maintain competitive advantage.
Popular Tool.
TYPES
of Benchmarking:-
·
Internal
– with in service organ.
·
External
– External Orgn.
·
Competitive
– Direct competitions
·
Industry
– a larger group than competitor
·
Process
– work processes
·
Generic
– General best practice (Not an Orgn.)
·
Performance
– Price, Reliability (Attributewise), Robustress
·
Strategic
– Higher level than operational, Core Competency benchmarking.
Process
of Bench-Marking :
4-Key Questions:--
1)
What should we bench mark?
2)
Whom should we bench mark?
3) How
do we perform the process?
4) How
do they perform the process?
BENEFITS OF BENCHMARKING -:
The
benefits of BM are as follows:-
·
The
best practices from any industry may be creatively incorporated into a
company’s operations.
·
It
is a motivating activity. It provides targets that have been achieved by
others.
·
May
reduce resistance to change when ideas for improvements come from other industries.
·
Technical
breakthroughs from other industries that may be useful can be identified early
·
Broadens
peoples experience base & enhances knowledge.
