BỘ GIÁO DỤC VÀ ĐÀO TẠO

TRƯỜNG ĐẠI HỌC KINH TẾ TP HỒ CHÍ MINH

KHOA QUẢN TRỊ
----

Subject : Operation Management

Final essay

Lecturer: ThS. Từ Vân Anh

Class:21C1MAN50205803K4
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Date: 31st October, 2021

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 Team 4
Name MSSV Tỉ lệ đóng góp

Lâm Châu Ngọc 31201021208 100%

Nguyễn Ngọc Kim Đài 31201020136 100%

Phan Hoàng Minh Châu 31201024397 100%

Nguyễn Lê Thanh Vân 31201021160 100%

Lê Vũ Minh Uyên 31201021487 100%

Phạm Thanh Vy 31191024311 100%

Đào Thị Kiều 31181024202 100%

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 Summary
It is critical to improve and correct errors that have happened throughout the operation
to develop of a business. The process of recognizing faults will determine whether the
organization improves or not. The executives used a novel strategy based on the difference in
addition to reviewing the company's data during their job. This means that the firm will
continue to enhance their working method by comparing it to that of their rivals in order to
identify errors. Benchmarking is a method of learning more positive aspects and improving
negative ones by comparing them. Benchmarking has become a vital strategy for firms
nowadays due to its ease of usage. This appears to be the path that everyone should take in
order to both promote and learn new things. Benchmarking has played an indisputably vital
role due to the advantages it has provided. Although some people believe that benchmarking is
a kind of copying, it is indisputable that in today's extremely competitive industry, data from
rival comparisons is crucial. Recognizing an appropriate benchmarking strategy and avoiding
plagiarism need each company's judgment.
Benchmarking is a topic that is not new to traders and is also a must-have information
for individuals who want to engage in today's economic market because it has been around for
a long time. This study work intends to illustrate the value of benchmarking as well as a
theoretical approach to benchmarking from the perspective of seasoned professionals. This
article will help everyone understand the concept of benchmarking and when reading the
researched cases of benchmarking, everyone will have a brief overview of the benchmarking
method.

Content
SUMMARY:...................................................................................................................... 3

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CONTENT:....................................................................................................................... 4
PART 1
INTRODUCTION ABOOUT THE TOPIC:....................................................................... 5
METHOD OF INVESTIGATING:..................................................................................... 5
PART 2
CASE STUDIES IN BENCHMARKING:
CASE 1: Stimulating Business Improvement by Benchmarking…………………….……..6
CASE 2: The need for adaptive processes of benchmarking in small business-to-business
services……………………………………………………………………………………….8
CASE 3: Benchmarking: theory and practice………………………………………..…….12
CASE 4: Benchmarking for competitive advantages and organizational performance:
purpose framework (2021)…………………………………………………………………15
CASE 5: Quality benchmarking in business performance using surveying technique-
review……………………………………………………………………….………………17
CASE 6: The Importance of Benchmarking for the Management of the Firm: Evaluating
the Relation between Total Quality Management and Benchmarking (Erdil & Erbiyik,
2019)………………………………………………………………………………………..18
CASE 7: Benchmarking in software industry: Comparing Apples to Apples…..
……………………………………………………………………………….….20
CASE 8: Best practices for the effectiveness of benchmarking in the Indonesian
manufacturing companies………………………………………………………………….22
CASE 9: The Benefits of Benchmarking in Business Operations…………………………23
CASE10: Benefit benchmarking methods in several industries: A systematic literature
review………………………………………………………………………………………25
REFERENCES:……………………………………………………………………………..27
PART 3:
CONCLUSION:…………………………….…………………………………………….28

Part 1
I. Introduction about the topic

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 The first time, benchmarking was mentioned in Melton's experiment that was used
for explaining: “comparison the ability and result that student gained with the certain
standards” (Student Physician. 1957, New Oxford English Dictionary).
In business, we can comprehensive that benchmarking is used for evaluating the
performance of a firm with the other one in the same market, it’s the feature to measure
your product against the competitor’s one. If you make a decision to join in the economy,
you will face with a lot of opponents that can be called a competitive market.
Benchmarking will play an important role in your competition, it’s the point that you base
on to understand what is your potentials, your differences and your opportunities for
improvement. Long story short, by taking all the advantages of benchmarking we can
implement changes that will yield significant improvements. In addition to making
companies become more efficient and profitable, benchmarking has other benefits, too,
such as:
 Boosting employee realizing of cost structures and internal processes.
 Encouraging team-building and cooperation in the interests of becoming more
competitive.
 Increasing familiarity with key performance and opportunities for development
company-wide.
Relying on these benefits, we can totally appreciate the importance of
benchmarking in business. Obviously, it is the compulsory factor that each firm needs to
utilize in the process so as to grow more and more in strength. Therefore, we want to use
some cases to prove the method that some companies are applying and more evidence
about the significant role of benchmarking.

I. Method of investigating

The research approach is mostly dependent on references from sources such as

books, newspapers, or articles on the Internet, because this study is based on examples
that have been investigated by professionals and experienced individuals. Economists are
fascinated by the concept of benchmarking. Although the importance of benchmarking has
been recognized many times, it is still debatable due to imitation and copying. We can
grasp and assess from a variety of angles after examining a large number of research
articles. Furthermore, we can fully accept the function of benchmarking in based on the
facts collected which proves for company's development.

Part 2
Case studies in benchmarking

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1. Stimulating Business Improvement by Benchmarking
Competitive innovation works on the premise that a successful competitor is likely to
be wedded to a “recipe” for success. That’s why the most effective weapon new competitors
possess is a clean sheet of paper. And why an incumbent’s greatest vulnerability is its belief in
accepted practice. —GARY HAMEL AND C. K. PRAHALAD
Benchmarking is the practice of comparing two or more things in order to determine
out how to improve. The aim to develop and become more successful is the motivating factor
behind benchmarking research. Benchmarking, on the other hand, isn't a silver bullet for
enhancing quality.
Many executives have believed that benchmarking is a "quick cure" for improving
corporate performance since Roger Milliken said in 1990 that "benchmarking is the art of
taking shamelessly." Benchmarking, on the other hand, is a time-consuming process that
necessitates both sweat equity learning about one's own processes and collaborating study
missions to other organizations as well as analytical rigor measurement and investigation of
work process performance, detailed mapping of processes, and side-by-side comparisons of
process differences.
Benchmarking is the process of determining which company is the best candidate for a
standard practice in a given business process based on the analytical information included in a
benchmark, which is a relative metric of workflow or outcomes performance. The business
process must next be extensively described in order to comprehend how benchmark
performance was attained and to discover facilitators of this accomplishment. Finally, in order
to apply this new understanding to your own company, the education must be culturally
adapted. To be effective, benchmarking must follow the advice of Dr. W. Edwards Deming,
who stated, "It is dangerous to imitate." It is necessary to comprehend the idea behind what
one desires to do."(1982)."Adapt, not adopt," Deming advised. Copying is a mistake" (1982).
So, how can we more precisely define what benchmarking entails?
Benchmarking- a discipline in total quality management:

Benchmarking occupies a unique position in TQM (Total Quality Management) as

both a tool for encouraging development and a management technique that assists in an
organization's strategic orientation. By including the management team in the architecture of
change and the selection of focal areas for research, benchmarking allows for complete
organization-wide engagement in business process improvement; engaging middle managers
in self-assessment of their own work processes and adaptation of lessons gained from other
companies; and depending on the organization's frontline process specialists to research linked
processes and find major discrepancies that contribute to performance gaps. Benchmarking is a
technique for including the entire "Total" company in "Quality Management."
The purpose of benchmarking is to speed up the process of business strategy change
that leads to breakthrough or continuous improvements in products, services, or processes,

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resulting in higher client satisfaction, lower operating costs, and a stronger competitive
advantage, by adopting best practices and business process improvements from organizations
that are known for their superior performance. Benchmarking is a technique that pushes
companies to look outside of themselves in order to prevent myopic delusions of grandeur that
result from internal reflection without external validation.
How is benchmarking utilized, and how can one tell the difference between legitimate
applications of this technique and falling into mistakes that lead to erroneous conclusions
about the methodology's potential benefits? Consider the juxtapositions that explain one
method of determining benchmarking's border conditions.
Benchmarking is a method for understanding process operations from other companies
and applying what you've learned to your own company. It entails a significant amount of time
spent measuring, comparing, and evaluating work processes across many businesses in order
to pinpoint the causes of better performance. Benchmarking, on the other hand, does not end
with the analysis. In order to have a complete cycle of learning, it must be modified and
applied.
Benchmarking is Benchmarking is not
A discovery process A cookbook process
An improvement methodology A panacea for problem solutions
A source of breakthrough ideas About business as usual
A learning opportunity A management fashion of the day
An objective analysis of work A subjective gut feeling or theory opinion
A process-based learning approach Mere measurement of process performance
A means to generate improvement just quantitative comparison of results
ideas

Benchmarking is more than a collection of data or a checklist designed to make

managers feel better about their present performance. Because benchmarking identifies gaps in
corporate performance, it should make management uncomfortable. Benchmarking should test
management since it can reveal performance enablers that can assist them better.
Differentiating benchmarking by explaining what it is and is not is valuable, but
understanding the rationale by which a benchmarking research is done is much more so. What
is the rationale behind benchmarking research, and how is it distinct from the logic of a
benchmark-a common misunderstanding when discussing this topic?

2. The need for adaptive processes of benchmarking in small business-to-

business services
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Key research questions:

 The absence of benchmarking studies in business-to-business situations, what is the

present usage of best practice standards, industry assessment tools, or real quality
techniques in the sample businesses.
 The study examines barriers to the implementation of benchmarking in smaller
architectural firms
 The research topic investigated the degree to which benchmarking or quality practices
were ingrained in the businesses in the study, including management comprehension
and attitude toward benchmarking, as well as their judgment of the efficacy of
benchmarking.
Research methodology:

 Qualitative case study approach

A key focus of this study was to analyze the attitudes and perceived importance of
benchmarking for architectural practices. A case study method was adopted in the research, in
part because previous qualitative studies in the benchmarking field have used case study
approaches (Balbastre-Benavent et al., 2005; Cresswell, 2007). Case study research can enable
researchers to gain a deep understanding of processes and other concept variables (e.g. actor's
perceptions of their own thinking processes, intentions and contextual influences). This ability
to gain insight into decision makers' perceptions was relevant to the managerial role of
respondents.
 Respondent sampling
Interviews were conducted to gauge the level of experience of respondents (level of
knowledge of benchmarking). Data obtained from the interviews were analyzed through
content analysis, following Goulding's (2005) three key stages for interpretation. Re-
evaluation took place by considering the relevance of the key findings i.e. the business context
of SMEs, the professional environment of architectural practices and links with previous
literature.
Research findings

 Within-case analysis was followed in the initial interpretation of the research findings,
in order to "become intimately familiar with each case as a stand-alone entity"
(Eisenhardt, 1989, p. 50) and to allow the unique patterns of each case to emerge.
 Reported in the findings are cross-case patterns, based on key dimensions as suggested
by past literature and the research questions, in line with Bourgeois and Eisenhardt
(1988) and Cresswell (2007).

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  Findings are drawn from sector, RIBA or Government reports, case documentation and
field interviews from semi-structured interviews with five architectural practices (three
small organizations, one micro small organization and one medium organization).
 Reported findings cover the adoption of benchmarking and QM activities; the use of
best practice and constraints on implementation; and finally; the embeddedness of a
quality culture and receptiveness to benchmarking.
Research Profile of architectural firms in sample

Name Number Number of Range of clients Investment in technology

and size  of Staffa years firm in (if disclosed) to  improves technical processes
business and Quality scheme affiliation
role position Evidence of any internal process
of respondent improvements/monitoring
Case 1  23 15 years Specializes in ISO9001: since 1994
Directors healthcare projects Construction best practice
Small
Affiliated to Construction Line
Issues client questionnaires Uses
project review records (internal)
Case 2  15 15 years Commercial High investment in 3D ,modeling
Directors clients Leisure and Briefing requirements process
Small  
public sector (internal) Affiliated to
projects Schools Construction Line
Case 3  9 22 years City Council, No formal QA affiliation
Owner Local Planning Investment in AutoCAD, 3D
Small  
Authorities, Affiliated to Construction Line
Housing
Associations,
Active in social
housing
Case 4  50 Over 100 Govt. Full time QA manager ISO 9001:
years QA Departments, 2000 (covers extensive areas)
Medium  
manager Utilities Adopts a value management
Companies Active approach Investors In People
in office, leisure Adheres to Construction Best
developments and Practice
some residential
Case 5  11 N/A Partner Broad mix of No affiliation 
commercial and
Small   No specific internal; practices
public sector

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 clients, leisure

Adoption of benchmarking and approach to quality management

 Case material was gathered from the five practices, which included "process maps" and
"client satisfaction questionnaires" (where QA models were used), current "radar
charts" (when KPIs were utilized), and client references (if a firm affiliated with a
construction line).
 Respondents understood these by commenting on how these approaches were
implemented into their overall firm's quality strategy.
 All responders acknowledged flaws in their [current] approach to quality management.
 It was generally industry pressure that led businesses to strive to match the QA
certification requirement or learn how it might help their organization.
 When developing their quality system, Case 1 takes a dual approach, utilizing QA as a
guide for defining standards and key performance indicators (KPI) to assess their
efficacy.
 There were significant disparities in strategy when it came to the usage of industrial
measuring methods.
 Case 1 and Case 4 used Construction Best Practice (CBP), but not the other businesses.
 As a consequence of industry and customer pressure, they viewed the EFQM Model
becoming a prerequisite for benchmarking; "it's inevitable...clients will want to know
our score [in regard to the EFQM]...we're looking at it now because we'll perform fine
on it" (Case 4).
 In other businesses, there was no official benchmarking policy; nonetheless, the KPI
system was actively exploited by firms, which developed their own "radar charts"
based on client input during the previous year.
 Some businesses believed that evidence of utilizing the KPI system will be required by
their commercial clients in the near future, while Case 1 stated that the KPI was the
only [current] vehicle that allowed a "safe comparison," emphasizing anonymity as a
plus.
 Firms were well aware of the requirement for quality in their design output and were
cognizant of their reputation when it came to internal benchmarking aspects (i.e.
internal procedures).
Development and constraints on best practice

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  In considering best practice, firms focused strongly on the competitive elements of
benchmarking, rather than industry elements such as meeting industry standards.
 Cases noted that information for best practice came from general awareness of
competitors' actions such as drawing production, materials use and budget accuracy.
 A number of barriers to the successful transfer of "best practice" within architectural
services were identified.
 First, there were resource issues related to the actual collection of data for
benchmarking purposes.
 Second, reasons for not progressing with QA and benchmarking were that the
documentation of each process was too burdensome.
 Third, with regard to best practice, firms saw a barrier to matching – in particular in
identifying a similar organization with the same characteristics such as specialism,
culture or quality scheme affiliation, thereby having no model organization to
benchmark against.
 Fourthly, information sharing was cited by all as a key problem in terms of competitor
comparison.
 Firms wanted access to information such as technology usage, tender proposals,
competitive information and legislation to improve performance.
 Yet all cases identified that secrecy and plagiarism within the industry currently
prevail.
Embeddedness of a quality culture and receptiveness to benchmarking

Some firms are prepared to accept moderate adoption of QM processes while others
seek very limited adoption. At one end are organizations hoping to attract commercial clients,
more cognizant of business processes and led by industry and market opportunities. At the
other end are non-adopter organizations that attracted local authorities or small private clients;
such firms were more engaged with the creative process and management individually-
orientated.
Firms experience difficulties with achieving best practice and regard benchmarking
processes as separate from their ongoing commitment to good quality design. There was a
recognition on the part of firms of the need to be more flexible in their processes, both
business and design. One firm had beneficial exchange experiences with other architectural
practices and considered this to be extremely effective. While all firms would welcome
changes in order for them to work more efficiently, there was less evidence of cultural change.
Conclusion

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  The requirement for a finer-grained description of what "best practice" implies than is
currently available with KSFs in this area this appears to be where the benchmarking
obstacles exist — there is a need to distinguish benchmarks as performance metrics
from benchmarking as action.
 One aspect of “success” in small architectural practices is clearly their design input and
associated creative expertise. There is a clear need for future benchmarking approaches
to take the design and innovation environment of such firms more seriously, through
incorporating benchmarking methodologies that acknowledge the more organic
elements in their work practices.
 This study has suggested that difficulties exist in applying benchmarking to small
architectural services. Distrust and low receptiveness to benchmarking seems to be one
area that will need to be tackled at sector level, if benchmarking is to be adopted more
widely. Firms commented on benchmarking and quality management somewhat
interchangeably seeming to equate the two and this might be a function of the lack of
experience of benchmarking tools other than KPI
 Architectural services may benefit from more loosely embedded benchmarking
mechanisms that will be successful and need more acknowledgement and trial. While
the traditional strengths of across the board industry quality standards (e.g. CBP) are
recognized, they may be less relevant in the context of organic, design-focused firms
such as architectural services.

3. Benchmarking: theory and practice. How to improve company

performances from outside: a benchmarking model 
Benchmarking is a method of analyzing and improving a company's performance by
comparing it to the best in the industry.
Benchmarking begins with a study of the process to be improved, an evaluation of
performance, the identification of a best practice process in order to try to match two parts of
the processes that have analogies, and the attempt to change or modify the interconnections,
structures, or behavior of the part to be improved using the analogy with the best
transformation process, in order to convert performance evaluation into improvement
decisions. They attempt to describe benchmarking from a modeling standpoint, based on a
reasonable description of the production system, in this work.
In fact, many of the so-called non programmed decisions contain too many variables to
be examined one by one. Thus, in a bounded rationality context, there exists, in every problem
situation, a series of boundaries or limits that necessarily restrict the manager's picture of the
world. As a result, the manager seldom seeks the optimum solution but realistically attempts to
reach a satisfactory solution to the problem at hand. The main element of conditioning
decisions are resources.

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 By definition, anything that can be used to help solve a problem is a resource.
Benchmarking is a way to face the problem of modifying the organization structure and the
operations assignment in a rational way. This definition can be endorsed, but, to be more
specific, it is important to focus the attention on structural changes in the organizations. In fact,
the performance optimization on the ground of a given structure and/or structural changes
obtained with a sequence of small local changes, are classical ways to operate, coherent with
the incremental culture of engineering and management.
The problem is that major modifications, even if theoretically sound, could prove to be
impractical. To convince management that relevant structural changes could be done, we must
give evidence that the new organization could work. A widely recognized good proof is that
other companies have adopted the new organization.

The production system: the activities, the organization and the decision process

Three major aspects drive the behavior of a production system: activities, organization,
and assignment of activities to organizational units (ou).
Any action involving the transformation of materials and/or information, including one
involving the generation of a decision, is referred to as an activity. The activities are
interconnected and determine how materials and/or information flow across the system. We
can categorize activities into three primary groups based on a common classification:
production, support, and management. The flow of materials, knowledge, and money, which is
the basic purpose of the production system, is the focus of production operations. All of the
facilities and information required for production and management are covered by support
activities.
Decisions about production flows, support, and interconnection functions, all of which
are required for the system to work, are part of management activities. A transformation
process is a set of interconnected activities. 
There are apparently two ways of looking at the system. The first begins with the
existing organization and finds the best fit of activities for the given organization. The second
way is to begin with the activities to be performed. And try to build around them the best
suitable organization.
This often drives the need for new activities to implement the new organization. These
activities are difficult to foresee a priori and. As far as internal relevance is considered, it is
important to define company goals and constraints. To put together goals, measures and
performances, you need a conceptual model of the transformation process that can be used to
transform performance evaluation into improvement decisions.
As far as external consistency is concerned, it is important that all indicators will be the
same in all the companies, and therefore they will be comparable. The decision making
process, its link with the value of a set of performance indicators, suitably depicting the

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company's behavior, and the organization supporting the process, are a cornerstone of the
benchmarking building. In practice, company decisions lie on different levels
Benchmarking focuses only on certain types of intermediate decisions, which we have
called of the tactical level. These decisions do not concern, typically, basic company strategies,
such as market selection, process selection, and joint ventures. In the following, to focus the
attention on the intermediate level, we will suppose that strategic decisions have been already
taken and cannot be modified. In the same way, benchmarking decisions do not concern
operational decisions, such as material routing and operations scheduling.
All actions at this level can therefore be considered completely determined by the
upstream decisions and the environment. Benchmarking decisions focus on a tactical level,
where you can modify organizational constraints, procedures, and practices.
Traditionally, in managing a production system, you generally start by defining the
activities of all the organizational units, then the interconnection network that links them,
taking only implicitly into account the support services' need. Starting from this breakdown
into units' activities, you aggregate the units on the basis of the interaction network in order to
define aggregated processes and their coordination needs. But in this way the breakdown
becomes an organizational constraint, and the performance optimization process is typically
done in the framework of a given organization structure. The activity breakdown is performed
on the ground of a set of different organization structures and for each of the resulting systems,
the performances can be evaluated.
The subsystems to be compared are found bottom-up, aggregating the unit activities on
the basis of the relationship among units. The breakdown is performed on the process
implemented by the two subsystems. Given the resource/activity connections and the relations
amongst activities, we can define the resource allocation process and plan our activities in
time.
The operation breakdown tree

Even though, in principle, all combinations are possible, to better clarify the
benchmarking process. A second aspect is integration benchmarking, which studies the
possibility of substituting only network nodes. A third aspect is implementation benchmarking,
which studies the possibility of substituting only a single process and support nodes. A fourth
aspect is goal benchmarking, which studies the possibility, for two trees with all identical
nodes and a benchmark expressed in terms of a set of values of performance indicators, that
the actions of company C do not fit the benchmark.
Conclusion

The paper presents a modeling approach to benchmarking. One type of benchmarking

is goal benchmarking, which studies the possibility, based on the improvement of performance
indicators, of trying to get the values of the benchmark. Even more important, according to our
opinion, is organizational benchmarking, as we have called it, which studies the possibility of

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substituting sets of activities of the whole process with other sets of the breakdown activities
of the same process in the best practice company. Another aspect is integration benchmarking,
which studies the possibility of changing the interconnection pattern for the same activity
breakdown.
The last aspect is implementation benchmarking, which studies the possibility of redesigning
processes or support units. The solution of the benchmarking problem formulated here is
related, for linear indicators, to data envelopment analysis.

4. Benchmarking for competitive advantages and organizational

performance: purpose framework (2021)
Frederick Taylor coined the term "benchmarking" in his scientific management
practices. Organizations have been constrained to implement a broader range of innovative
management ideas and techniques as a result of overall rapid change and cutthroat
competition. Benchmarking was pioneered in the business, first in Japan and then in the late
1970s by companies such as Xerox Corporation.
Benchmarking is widely used as a tool to improve performance (Yasin, 2002),
eliminate the trial and error process, increase productivity by developing new products, and
develop customer gratification. It has at least four major goals, including measuring one's own
inner performance levels as well as those of the top competitors. Benchmarking is the role of a
manager's job descriptions in Japan. Benchmarking is also a tool or instrument that can help
organizations identify procedures that need to be changed. Some people regard benchmarking
as copycatting, implying that those who benchmark never develop their ideas.
- Benchmarking's Theoretical Foundations

   Benchmarking and its processes can be framed by three well-known theories. These theories
are the resource-based firm view, market-based orientation, and organizational learning theory.
Benchmarking is primarily concerned with raising organizations' awareness of the need for
improvement or better performance.
- The Benefits of Benchmarking 

Benchmarking is the process by which businesses concentrate on the "top" of

their industries. This enables organizations to determine what they can do better.
Benchmarking is critical in assisting with budgeting, strategic planning, and capital planning.
- Benchmarking Techniques

The benchmarking literature is uniformly skeptical of various benchmarking

techniques. Benchmarking can take many forms, including internal, external, and best practice.
An organization must decide whether its primary focus is on financial outcomes or on meeting
the needs of its customers. This is the only efficient and effective way to begin the
benchmarking process.
- Benchmarking Procedure

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 - Metrics and Dimensions for Comparison

The benchmarking literature is uniformly skeptical of various benchmarking

techniques. Benchmarking can take many forms, including internal, external, and best practice.
An organization must decide whether its primary focus is on financial outcomes or on meeting
the needs of its customers. This is the only efficient and effective way to begin the
benchmarking process.
- Organizational Performance and Benchmarking

The benchmarking process has a wide range of implications for both organizations and
employees. Appropriate planning, training, and open interdepartmental communication are the
most important aspects of an effective application. Many studies have been conducted to
investigate the relationship between benchmarking and its impact on organizational
performance. Even though benchmarking is a useful tool, many academics believe it has many
limitations and drawbacks. One issue, for example, is that benchmarking focuses on data rather
than the procedures used to lead the data. Benchmarking is doomed to fail in the absence of
management support.
- Creation of a Conceptual Framework and Hypotheses

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This study aims to create a benchmarking framework that can be used as a guide for
implementing benchmarking in Indian banks. The researchers emphasize the importance of
benchmarking as a source of competitive advantage based on the literature. The hypothesis is
that benchmarking leads to a competitive advantage in the banking industry. Benchmarking
through internal and external comparison has a significant impact on the performance of the
banking sector. In the Indian banking sector, there is a strong link between benchmarking and
organizational performance.
Businesses should develop economic values toward consumers in order to maintain a
competitive advantage. (Barney and Hesterly, 2010)
Conclusion

The primary goal of this study was to propose a conceptual and theoretical framework
that can be applied to the banking sector. It looks into the effects of benchmarking on
competitive advantage and organizational performance. Despite the fact that the banking
industry is the focus of this study, its applicability to other industries or sectors is not
discounted.

5. Quality benchmarking in business performance using surveying

technique- review
The goal of benchmarking process

The benchmarking process has become increasingly important in today's organizations

to provide better comparisons for more efficient operations. The information of two
organizations is carefully considered during the benchmarking process to achieve a
competitive advantage in business operations. Benchmarking will not be discriminatory;
rather, it will provide better solutions for future progress. 
Methodology

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 The author examines several proposed works that have been created to focus on
educational institutions and how benchmarking might be implemented in a learning
environment.
In addition, the author analyzes a case study by picking two educational higher learning
engineering institutes, Institution X and Institution Y, and assuming that Institution X is the
standard institution that serves as a benchmark or reference institution for nearby Institution Y.
Result

Benchmarking has become an essential aspect of all businesses today to provide a

better comparison for an organization's efficient operation. Benchmarking successfully needs a
360-degree review of the various resources available for enhanced productivity. The
benchmarking process is defined as a comparative evaluation of an organization in comparison
to a standard organization. Academics, research, student empowerment, and other
extracurricular activities are all important aspects for an effective higher learning Technical
Institution. These are the aspects that should be prioritized in order to have high benchmark
standards.
Comments

a. Good points: The author demonstrates the fundamental concepts of benchmarking and
emphasizes that the objective of the benchmarking process is to identify the
organization's weaknesses. The author also reviews other research papers to examine
benchmarking in an academic environment. Besides, the author proposes a case study
and use surveying technique, statistics, and graphs to better show examples of some
factors affecting two technical high learning technical institutions
b. Limitations: There is no example of a specific business so that it is easier to imagine
how that business applies Benchmarking to their company. In the case study, the author
does not specify how benchmarking brings benefits or harms to an organization.

6. The Importance of Benchmarking for the Management of the Firm:

Evaluating the Relation between Total Quality Management and
Benchmarking
Globalization and free trade are two very important keywords. They make the world's
economy grow, along with the development of science and technology. A series of large and
small companies were born, along with fierce competition to satisfy customers. From there,
benchmarking was born. Organizations need to look outside to identify change needs and
provide a change mechanism. Today, information collection, access, and
understanding is more important than information storage and benchmarking has been an
important policy for enterprise and supply chain management. This method helps companies
strengthen their weaknesses, thereby assessing opportunities in the best way, focusing on
customers and helping the company to survive in a competitive environment (Erdil & Erbiyik,
2019).

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  Erdil & Erbiyik (2019) said that Benchmarking is the comparison of an organization's
performance with another organization in the same industry that performs at its best. From
there try to gather information to find out the truth about how the organization can operate so
well and use the information relevant to your organization to provide the basis for creating
strategic goals for its own organization in the future.
Erdil & Erbiyik (2019) told about purpose of Benchmarking: In the process of collecting
information from two companies for benchmarking, the two companies will both agree to
share their operational information and operating methods. Both companies expect to gain
some benefit from the information exchange. The goals of the benchmark can be listed as
follows:
 Validate goals, targets and applications,
 Reduce costs,
 Change or strengthen corporate culture,
 Help define the organization's goals and objectives,
 Identify best practices for achieving goals and objectives,
 Ensure the strategic management of the company,
 Revealing better practices within the company,
 Provide motivation in employees, Improve the company's competitive advantage and
operational efficiency.
Nowadays, companies are focusing on the concept of Total Quality since then, they are
constantly innovating and improving their products. The basis of management is the
continuous development of the enterprise itself. But this is not enough, the organization
compares itself with the best competitors in the industry and adjusts accordingly using the
Benchmarking tool. When the comparison process appears as a management tool considered, it
is found that this management tool has shown a trend that is growing in tandem with
developments in Total Quality Management applications. Here are the reasons that
benchmarking is an important part of Quality Management:
 Set goals for development projects based on performance levels achieved by other
companies.
 Determine better ways to set up processes;
 Remove stereotyped assumptions and constraints; reduce subjectivity in decision
making.
 Promote new ideas.

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 Benchmarks should not be considered one-way communications or industrial
espionage. Benchmarking, it's a mutual exchange of information, the most effective way to see
and change in the future. Benchmarking to be successful and effective, it is necessary to carry
out the work of the top management team with subordinates, the targets need to be defined
specifically and clearly, the results need to be analyzed carefully to make the best efforts to
create a reliable information exchange environment (Erdil & Erbiyik, 2019).

7. Benchmarking in software industry: Comparing Apples to Apples

         Software development is becoming increasingly important for practically every
organization. One of the major reasons for gaining a competitive edge is the capacity to build
and distribute new features to users and customers as quickly as possible. However, there is a
significant variation in productivity between the top and poorest performers in the computer
software industry. Productivity (together with cost efficiency, speed, and quality) can be
critical for many firms in bringing their competitiveness up to par with their most relevant
rivals.
         Benchmarking is the process of measuring your organization's procedures to those of
industry leaders or best practices (with an outward focus) or to those of your own teams
(inward focus). It is possible to improve one's performance by studying how the greatest
performers do things:
  Recognize the organization's competitive position.
  Recognize the opportunities for process or product improvement.
  Make a point of reference, a goal to strive for.
        Benchmarking provides insight into best practices in order to determine whether and how
one should improve in order to remain or become successful. Benchmarking software
development may be done on any similar scale:” a sprint, a release, a project, or a portfolio.”
          Comparing is what benchmarking is all about. "Comparing apples to apples and oranges
to oranges" is a well-known phrase. One of the most difficult difficulties in the software
business is determining how to assess the productivity of completed sprints, releases, projects,
or portfolios in a way that allows this information to be utilized for activities like as
estimating, project control, and benchmarking. But how can we compare apples to apples in an
industry that is still in its infancy when it comes to measuring productivity? Productivity is
widely defined in economics as output/input. In the context of software development
productivity measurement, input is often quantified in effort hours spent. When benchmarking,
it's critical to set the correct scope of activities, but it's also critical to quantify the output of a
sprint, release, or project in a meaningful way. To be able to compare production on a "apples
to apples" basis, output must be assessed in a consistent manner. The fact that the
measurement is repeatable is a crucial component of standardization since it allows various
measurers to assign the same number to the same object. In practice, several non-standardized
measuring methods are utilized.

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      Reasons for benchmarking:
 Benchmarking is frequently used to determine the capabilities of a company in
comparison to industry leaders or rivals.
 Benchmarking can also be done internally. The most prevalent sort of benchmarking is
the comparing of velocity in the most recent sprint to velocity in earlier sprints.
 Another application of benchmarking is the establishment of a so-called landing zone
by tendering organizations.
         Benchmarking means comparing things, but it is more than just comparing statistics. To
really compare apples to apples, the data to be compared must be similar. The size numbers of
distinct software objects can be compared in sizing, either functionally (using defined
functional size measurements, for example) or technically. This is adequate for estimating and
planning, but it is insufficient for meaningful benchmarking. Benchmarking is only beneficial
when all aspects are the same except the one you wish to measure. In practice, however, this is
almost never the case. To establish a relevant standard, those factors that are not under
investigation must be equalized. This is called normalizing.
          Comparing across organizations makes sense only when done in a systematic manner.
Only the functional size measurement standards now meet the requirement for uniform
measurement processes and intermeasurer repeatability in order to create measurement results
that can be compared across domains to benchmark productivity. Benchmarking is only
beneficial when all aspects are the same except the one you wish to measure. In practice,
however, this is almost never the case. To establish a relevant standard, those factors that are
not under investigation must be equalized. This is referred to as normalization. Peer data can
be adjusted to reflect the conditions of the benchmarked project using mathematical
modifications or experience data. External benchmark data sources are especially valuable
when there is insufficient internal data to compare internal initiatives on an apples-to-apples
basis. These external sources can be modified to match the organization's position as
accurately as feasible.
         Benchmarking, like any other sort of measurement, carries certain risk. People have a
natural inclination to behave in ways that lead to a better measurement outcome. To be really
comparable, benchmarking must be performed on things that can be normalized. This can refer
to a sprint, a release, a project, or a portfolio in software development. Individuals should not
be benchmarked. Why? The basic explanation is that humans cannot be normalized. In the
blog "You are not a 10x software engineer," there is an intriguing illustration of what occurs
when you try to compare persons. There are obviously better software engineers than others,
but this difference cannot be meaningfully benchmarked.
       Summary: Benchmarking is a method of measuring your organization's procedures to
industry leaders or practice guidelines (outward focus) or comparing your own teams (inward
focus). It is feasible to improve by knowing how the top achievers accomplish things. One of

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the most difficult tasks in the software business is measuring the productivity of completed
sprints, releases, projects, or portfolios in an apples-to-apples manner so that this information
can be utilized for procedures such as estimation, project control, and benchmarking. 

8. Best practices for the effectiveness of benchmarking in the Indonesian

manufacturing companies
         The concept of benchmarking is gaining popularity in many types of manufacturing
and service businesses including healthcare, government, and educational organizations
(Camp, 1995). With the increased use of benchmarks, researchers focus more on search,
creating performance metrics and set goals, and they found that many companies were more
consistent in their choose the right benchmarking performance measures for the organization
strategy (Meybodi, 2009). Along with this, recent studies have also examined how competitors
and outsiders learn to improve business processes.
         Benchmarking, as seems clear, aids firms in identifying their strengths and
shortcomings in relation to supply, demand, and market conditions. By observing others,
companies can determine what levels of performance are attainable and how much
improvement can be made. Additionally, this encourages change and results in increased
quality, productivity, and efficiency, all of which lead to innovation and a competitive
advantage, while saving costs and time-efficient way to build a pool of creative ideas from
which Practical examples can be used. Despite these benefits, time constraints, barriers to
competition, cost, lack of both management commitment and professionalism human
resources, resistance to change, poor planning and short-term expectations considered to be the
main issues affecting the success of benchmarking research.
         There is a huge correlation between the manufacturing process and environmental and
organizational factors on the performance of the benchmark's best performance. Therefore, this
can be used as a rationale for promoting acceptance and implementation of benchmarks. An
organization can therefore focus on these factors so that the benchmark can develop further.
Organizations may consider holding more training courses and seminars. From this
perspective, the organization needs to improve employee adaptability, innovation, and timely
and reasonable intervention by the organization so that it can use proactive, best benchmarking
methods as a strategic planning tool. There may be a possibility that the real driver of
benchmarking is employee innovation and organizational intervention rather than the customer
itself, although the purpose of this is to improve and increase profits through customer
satisfaction.
         During benchmarking, a company must provide resources to search to find best
practices, collect data and information, and evaluate benchmarking partner processes. So this
is a possible reason for a company not to do benchmarking. Analysis of the results shows that
several benchmarking methods, e.g. environmental, organizational and manufacturing process
factors significantly affect the performance of the benchmark. This may be due to the

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understanding that benchmarking can be done anywhere at different scales (Asrofah et al.,
2010).
For benchmarking to be successful, an organization needs the following requirements:
an absolute commitment to management and support, a clear understanding of production
operations, a willingness to share information with a benchmarking partner, and dedicate
themselves to continuous efforts in benchmarking. Benchmarking is a great tool because it
concerns everyone, including managers and workers. The type of benchmark used depends on
the characteristics of the company and other external factors. Top management decides
whether to focus internally on cross-functionality, competitors, industry performance, or "best
in class" goals. Any kind of benchmark management option will benefit a company if applied
correctly. Benchmarking is the germ of the organizational and cultural changes that must occur
if the company is to survive and achieve competitive excellence. The overall goal of the
benchmark is to help companies achieve competitive excellence.

9. The Benefits of Benchmarking in Business Operations

Benchmarking your business processes with established metrics might help you
measure progress and achieve your goals more quickly. Here are some of the advantages of
benchmarking:
 Businesses can use benchmarking to compare their operations to internal or external
standards.
 Benchmarking may be used to track internal development, performance versus rivals,
and how your procedures compare to those of world-class firms.
 Benchmarking includes establishing important indicators, analyzing where you are
currently, defining where you want to go, and developing an action plan to attain and
measure your objectives.
There are certain standards that employees and customers learn to expect from any firm
worth its salt in any industry. How can you know whether your company is up to those
standards? Benchmarking is the solution.
While every organization is different and no two or more companies will take the same
road to success, benchmarking provides a strong starting point for assessing your operations.
You'll be able to stay up with industry changes and fulfill contemporary market needs if you
analyze your rivals and compare your procedures and services to theirs. 
What exactly is benchmarking?
Benchmarking is the assistant of your company in establishing an internal or external
benchmark against which to measure itself in order to develop continuously. Benchmarking's
ultimate goal is constant improvement, which is something that all firms should strive for.
Comparing your company to others might help you produce new ideas to help you go ahead.

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Types of business benchmarking
Benchmarking allows a company to compare several aspects of its operations to
internal and external standards. Benchmarking may be classified into three types:
 Internal benchmarking: Is all about developing your business by comparing it to
historical data
 Competitive benchmarking: Is all about defining specific objectives based on what your
rivals are doing and researching the practices and standards of comparable businesses.
 Strategic benchmarking: Is a step up from competitive benchmarking, in which a
company strives to replicate certain performance criteria of world-class companies.
Benefits of benchmarking in business
Benchmarking is not a one-time event; in order to reap the full benefits of this
technique, a firm must participate in constant, ongoing monitoring of essential operations to
ensure they are on track. Businesses that use benchmarking on a regular basis can:
 Continue to improve internal processes.
 Recognize what works and what doesn't Adopt or improve on competitors' techniques
 Increase efficiency to cut expenses.
 Concentrate on processes and products that increase client happiness and loyalty.
Benchmarking can support you in improving numerous aspects of your business
operations simply by assessing progress and providing a clear target to aim for.
What is a typical benchmarking process?
1. Plan out what you want to benchmark.
Benchmarking begins with identifying what you want to measure. Whether it's salary,
sales, team development or another area of growth, you'll want to define the activities you're
benchmarking and the key metrics you'll use to track progress.
2. Conduct research to collect relevant data.
You should also conduct research on where other companies or departments currently
stand. Understanding the industry or departmental average can help you better set your own
benchmark for measuring your company's performance.
3. Analyze the data to assess where you are and where you want to be.
Using your research and gathered data, you can figure out where your current
performance sits compared to other companies or departments and determine an appropriate
and realistic goal for improvement. 

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 4. Develop an action plan.
This is the implementation phase of the benchmarking process in which you'll develop
actionable steps you and your stakeholders can take to reach your goals. Defining success and
an action plan upfront gives you a clear path to hitting your benchmarks.
5. Monitor your progress.
At regular intervals, check the progress your team is making against the defined goals
in your action plan. This may be weekly, monthly, quarterly or annually, but it's important to
track your metrics consistently. 
How to make benchmarking work for your business
If your business is looking to begin the benchmarking process, the most important
thing you can do is get your employees involved in the process. Change is a difficult but
necessary part of reaching your benchmarking goals, and it's important that everyone on your
team is on board with what they need to do, when they need to do it and how.
Conclusion - Personal opinion
Benchmarking allows your company to develop an internal or external benchmark
against which it can compare itself in order to improve.
Benchmarking can be used to track and measure success in a variety of critical
operational areas. Internal, competitive, and strategic benchmarking are the most common.
Benchmarking can help you improve multiple areas of your business operations,
simply by measuring progress and giving you a clear goal to strive for.
Identify the metrics you want to follow, assess where you are now, and describe what
success looks like before you start benchmarking. Then make an action plan and track your
progress on a regular basis.
The benchmarking method enables a team or firm to determine which practices are
assisting other departments or competitors in achieving particular outcomes. Those practices
can then be adopted by the team or corporation to attain similar enhanced results. 
Involve all levels of your organization in the benchmarking process. This will not only
yield the most diverse and viable ideas, but it will also inspire team buy-in.

10.Benefit benchmarking methods in several industries: A systematic

literature review
The world is changing everyday that’s why we need to approach Performance
Management to evaluate the performance of employees. It is a new approach that takes into
account the various aspects of the company and its environment. And thereby, with an effort to
prepare for the uncertainties that may occur in the future, involving taking into account the

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various factors that may affect the organization's operations and goals, a comprehensive
strategy to improve a company's performance is carried out through a series of steps known as
benchmarking. This process involves analyzing and measuring key aspects related to satisfying
the expectations of the consumers and / or customers. In this paper, they aim to identify the
various benefits of benchmarking in the industry and show how effective and efficient it can
be in achieving goals and managing risk.
By utilizing the systematic literature review and data collection methods, they develop
a framework to collect and analyze the information related to benchmarking in various
industries. Through the data collected were mainly from international journals, it describes the
steps of the transfer or benchmark process are called initiations, and they address all of the
issues that lead to decisions on the need to transfer techniques, such as discovery or successful
work procedures in an organization. Implementation entails the movement of resources
between the recipient and the source unit, the establishment of social relationships, and efforts
to make the transfer more acceptable to the benchmarks. Ramp-up - occurs when the recipient
begins to apply the information gained by detecting and fixing new challenges, so that
performance gradually improves. The process of institutionalizing knowledge and learned
abilities begins when the recipient obtains satisfying results with the utilization of the
knowledge obtained.
Benchmarking is a strategic strategy for improving quality, increasing safety, lowering
costs, raising environmental awareness, and shortening delivery times. It compares the various
aspects of a given process such as product quality, price, service, and reliability to see how
they operate. Its goal is to improve the way that processes are used.
In conclusion, benchmarking in industrial companies can provide numerous benefits
such as increased customer satisfaction, improved productivity, increased environmental
awareness, and increased market performance. Although neither qualitative nor quantitative
methodologies were used in this study, we can observe that benchmarking has a major impact
on company success. This benchmarking allows businesses to gather information about their
competitors' performance, which can help them identify strategies to improve their own
performance and achieve the level of the partner company

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Reference:
Asrofah, T., Zailani, S., & Fernando, Y. (2010). Best practices for the effectiveness of
benchmarking in the Indonesian manufacturing companies. Benchmarking, 17(1), 115–
143.  
Sutia, S., Riadi, R., Fahlevi, M., Istan, M., Juhara, S., Pramono, R., Purwanto,
A., Tampil Purba, J., & Parhehean Munthe, A. (2020). Benefit Of Benchmarking
Methods In Several Industries: A Systematic Literature Review Correspondence.
In Systematic Reviews in Pharmacy (Vol. 11, Issue 8).
Broderick, A., Garry, T. and Beasley, M. (2010), "The need for adaptive processes of
benchmarking in small business‐to‐business services ", Journal of Business &
Industrial Marketing, Vol. 25 No. 5, pp. 324-337
Camp, R.C. (1995), Business Process Benchmarking: Finding and Implementing Best  
Practices, ASQC Quality Press, Milwaukee, WI.
Erdil, A., & Erbiyik, H. (2019). The Importance of Benchmarking for the Management of the
Firm: Evaluating the Relation between Total Quality Management and
Benchmarking. Procedia Computer Science, 158, 705–714.
Frank Vogelezang - Benchmarking: Comparing Apples to Apples, Rethinking Productivity in
Software Engineering, pp .205-217.
Gregory H. Watson (2007). ” Strategic Benchmarking Reloaded with Six Sigma”, Stimulating
Business Improvement by Benchmarking, pp. 3-4, 20-22.
Meybodi, M.Z. (2009), “Benchmarking performance measures in traditional and just-in-time
companies”, Benchmarking: an International Journal, Vol. 16 No. 1, pp. 88-102.
Nicole Fallon - Business News Daily.

S. Ahmad, R.C. Jalagat, I. Alulis and P.G. Aquino. “Vidyabharati International

Interdisciplinary Research Journal 12(1)”, Benchmarking for competitive advantages
and organizational performance: purpose framework (2021), pp. 67-77.

Sivasankaran. P, Radjaram.B, 2021. Quality Benchmarking in business performance using

surveying technique – review. International Journal of Research- Granthaalayah, pp.
175-184.

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 Part 3
Conclusion
The examples above are only a few of the articles in the benchmarking research. We can
clearly comprehend and affirm the relevance of benchmarking in the economy as a result of
this. Although the manner benchmarking is implemented varies from company to company,
the major purpose of benchmarking is to improve the firm. As a result, it is a vital component
of corporate operations and, at the same time, a factor that encourages successful development
by analyzing rivals' advantages. All successful companies are constantly benchmarking their
competition.
“All successful companies are constantly benchmarking their competition. They have to know
what they have to match up with day-in and day-out if their company is going to be
successful” – James Dunn
“What a business needs most for its decisions — especially its strategic ones — are data about
what goes on outside it. Only outside a business are there results, opportunities and threats”-
Peter Drucker
“If you know they enemy and know yourself, you need not fear the results of 100 battles”- Sun
Tzu

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