Benchmarking

A TQM TOOL
 Benchmarking
• “ Benchmarking is a learning process
in which Information, Knowledge
and Experience about leading
practices are shared through
partnerships between
organizations.”
 Benchmarking
• Aims to examine, compare and
improve performance of processes
used in business operations.
• Is about sharing how things are done
• Requires a thorough understanding
of one’s own processes
• Results in recommendations for
change to improve performance.
 What Benchmarking is;
• Ongoing process
• Linked to mission, vision and values
• Two parties (partners) involved;
• Leading
• learner
 Scope of Benchmarking
• Benchmarking will tell;
– How well you are performing
– How good you need to be
– How to get there
– And help you to achieve your mission,
vision and goals.
 Difference b/w
Benchmarking &
Benchmarks
• Benchmarking is the process that
starts from identifying an area for
improvement and ends in
enhancing the quality of
products/services.
• Benchmarks are data comparisons,
such as performance output
 Focus for Benchmarking
• When Benchmarking you will not
spend time on the data; rather you
will spend most of the time learning
the best practices and how to apply
them.
• The weight should be 85 : 15 for
practices and data.
 Types of Benchmarking

1) Sector Benchmarking
 It refers to benchmarking across other
organizations
 in the same sector.

2) Industry or Functional
Benchmarking
 Comparing yourself and processes against
other
 organizations in search of better or world-
class practices
 Types Contd.
3) Generic Benchmarking


 Generic benchmarking consists of

partnerships across functional areas.
Generic benchmarking is most effective


when a
structured benchmarking process is


followed to
optimize the learning and opportunities

 Types Contd.
 4) Internal Benchmarking
 It involves partnering b/w different
areas within one
 client organization.
 5) Competitive Benchmarking
 It involves partnering with potential
competitor
 client organizations.
 Benchmarking as an
improvement tool
 (quality standards)
 Business Strategy and
benchmarking
 (Organizational structure)
 When should Benchmarking be
undertaken
 The beginning