BENCHMARKING

Presented By – Miss. Gayatri H. Tiwaskar

M. Pharm 1st year (PQA)
Guided By – Mrs. Rushika Jaiswal
Dadasaheb Balpande College Of Pharmacy, Besa,
Nagpur - 37

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What is benchmarking?

•Benchmarking is the process of improving performance by

continuously identifying, understanding, and adapting
outstanding practices found inside and outside the
organization.

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Benchmarking Process

• BM must for Key Business Processes (KBPs)

–Product Development
–Customer Service
–HR Practices
–Inventory Control
–Research & Development etc

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BM must for Critical Success Factors (CSFs)

–Cost Management
–Product Quality
–Product Design
–Organization Image etc

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4 questions

–What should we benchmark?

–Whom should we benchmark?
–How do we perform the process?
–How do they perform the process?

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• PLAN
– Select the process
– Form Team
– Understand & document process
– Establish performance measure

• SEARCH
– Listing Criteria for partner selection
– Conduct general / secondary research
– Decide the level to Benchmark
– Identify potential partners & contact
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• OBSERVE
– Questionnaire sent to partner
– Telephone contact
– Direct observation / site visit

• ANALYSE
– Sort information & data
– Quality control information & data
– Normalize data if necessary
– Identify gaps in performance Level
– Identify causes for gaps
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• ADAPT
– Identify improvement opportunities
– Set target for improvement
– Develop implementation plan, monitor the progress
– Write final report

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Three Major Advantages of
Benchmarking
• Product and Process Improvement:
By implementing benchmarking activity, organizations can
improve their operation process
• Time & Cost Reduction:
Bench marking is time and cost efficient because it
involves imitation and adaptation rather than pure
invention
• Competitive Strategy
By implementing benchmarking activity, organizations can
improve
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Disadvantages
•The most resistant criticism of Benchmarking comes from
the idea of copying others.

•It is not a strategy nor is it intended to be a business

philosophy. Therefore, it is a time taking technique.

•Benchmarking is not “instant pudding”. It will not improve

performance if proper infrastructure of Total Quality
Management is not in place.

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Limitations of Benchmarking:

Even though, there are various advantages of

benchmarking there are few limitations also which has to
be considered. They are,

1. It is just a mere suggestion:

Benchmarking only suggests the organization to improve
on weak factors. It does not have any proving factor to
adopt the strategy it recommends.
Everything is a pure suggestion and does not give any
straight answer for issues.
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2. Results shown are mere numbers:
The result comparisons or profit rate of the other
organization are mere numbers. Benchmarking does not
show or concentrate on minute factors which have been
adopted by the other organizations.
This simply implies that it helps to show an outer look
nothing deep into the business strategy of other
organizations.

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3. Benchmarking fails when it is not properly
implemented:

It has to be properly adopted by following the various data

collected. When it is not followed periodically, there might
be no net result as it is not a one day process.

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4. No clarity in data produced:

Benchmarking only produces rough data and it is only

the team or board members who have to concentrate on
the whole process using the data collected.
Sometimes managers do not understand the data
collected, as it moves from various people and it is left
unnoticed when not properly used.

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 References
 benchmarking-120314080128-phpapp01.pdf

 benchmarkingrepaired-160513111353.pdf

 Benchmarking as a Best Practice, CII Annual

Conference Vancouver, British Columbia.

 Benchmarks and Benchmarking, presented by Nick

Griffin, 26 march 2006

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THANK YOU !

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