FICCI

CE

Benchmarking

FICCI

CE

Benchmarking

Benchmarking is quality by comparison for achieving better standards. In the global movement today , the competition is increasing at a faster rate , and the only way to improve your relative quality and move upwards is to find out and implement the best industry practices.

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CE

Benchmarking :Stages of improvement

World Class Recognized as the best. Benchmarked by others even in other sectors Best in Class Exceeds customer expectations,outperforms all competitors and has clear competitive edge

Efficient Meets all internal requirements for cost margins, asset utilization,cycle-time and measures of excellence

Effective Satisfies all customer requirements

Incapable Is ineffective , inefficient and at the risk of failing. Needs major redesign

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CE

Benchmarking methodology

Benchmarking can be of various types - Competitive benchmarking, product benchmarking, process benchmarking and best practices benchmarking. Whatever be the category chosen by the organization, the benchmarking methodology remains the same in each case. Benchmarking methodology is explained through 5 simple steps in the following slides.

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A. Identify processes to benchmark

Select processes to benchmark. Measure current process capability. Understand detailed process which needs improvement.

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B. Select organization to benchmark

Select organizations which perform your process. Compile a list of world class process parameters.

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C. Compile the required information

Develop a detailed questionnaire to obtain desired information. Obtain the desired information. The information can be obtained from various sources viz: Internet, trade journals, professional associations, benchmarking centers, Industry publications, Industry experts, libraries etc.

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D. Analyze gaps

Too much information is as bad as too little. Gather and analyze only the information you need to make a direct comparison of performance. Compare like with like - Compare apples with apples and peers with peers. Identify the performance gaps and develop an action plan to close the gaps. Also highlight and quantify the consequences of not closing the gap.

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E. Develop an action plan

Review observations of the gap analysis. Set new performance standards. Develop an action plan for meeting the new performance standards.