Professional Documents
Culture Documents
Bench Marking
Bench Marking
1
MEANING
Benchmarking is simply
process of measuring the
performance of one
company against the best in
the same or another
industry.
2
DEFINATION
Benchmarking is a process of
identifying, understanding and
adapting outstanding practices and
processes from the organizations
anywhere in the world to help your
organization improve its
performance.
3
Benchmarking is A
PROCESS
CONTINUES SYSTEMATIC
STRUCTURED EVALUATING
ONGOING UNDERSTANDING
LONG TERM FORMAL
ANALYITICAL FOR ASSESING MEASURING
ORGANISED COMPARING
ORGANISATIONAL COMPARISION
FOR THE ORGANISATIONAL IMPROVEMENT
MEETING INDUSTRIES BEST PRACTICES
PURPOSE OF DEVELOPING PROCESS ,PROJECT OBJECTIVE
ESTABLISHING PRIORITES,TARGETS,GOALS
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BENCHMARKING :
IS
Continuous process
Provides valuable information
Learning
Time consuming
Viable tool, generically applicable
IS NOT
One time event
Provides simple answer 5
ORIGIN
Benchmarking, originally invented as a formal
process by Rank Xerox,
the organization experienced market erosion from
competitors, primarily Japanese. These competitors
were marketing higher quality products in the United
States at the same price or lower as Xerox.
Xerox found that the Japanese were able to assemble
quality products at a low price. This was hard for
Xerox to grasp because they were the first to develop
the photocopy and their name had come to be
synonymous with photocopies. How could the
Japanese be beating them at their own game?
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Xerox found that they had to regroup. In doing this
they use competitive benchmarking a fundamental
part of their operations by the early eighties. Xerox
began to study other organizations within and out of
their industry. By 1983, Xerox had bench marked
more than 230 process performance areas in their
operation.
They looked at all aspects of their business.
Identifying the best processes used by others, Xerox
adapted them for their own use. This is how they
regained their core competency and strategic
advantage in the photocopying industry
7
Benchmarking
TYPES OF
BENCH MARKING
INTERNAL BENCHMARKING
COMPETATIVE BENCHMARKING
PROCESS OR GENRIC BENCHMARKING
8
Benchmarki
ng
INTERNAL
BENCHMARKING
MEANING
Internal benchmarking is used to identify
the best in house practices in the
organization and to disseminate these
practices throughout the organization.
Similar activities in different locations,
departments etc
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Internal
benchmarking
ADVANTAGES
“SHARING”-communication
Data easy to get
Good results, immediate benefits
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Internal
benchmarking
DISADVANTAGES
Limited focus
Internal bias
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Types
COMPETITIVE
BENCHMARKING
MEANING
ADVANTAGES
Comparable practices and technologies.
History of information
13
Competitive
Benchmarking
DISADVANTAGES
Data collection difficulties
Ethical issue
14
Types
PROCESS OR GENERIC
BENCHMARKING
MEANING
15
Process
Benchmarking
ADVANTAGES
Breakthrough ideas
High potential for innovation
16
Process
Benchmarking
DISADVANTAGES
17
BENCHMARKING
PROCESS
PLAN THE PROJECT
RECYCLE
COLLECTION OF DATA
TAKE ACTION
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1. PIAN THE PROJECT
Identify the strategic intent
Select processes to benchmark
Identify customers’ profiles and
expectations
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2. FORM THE TEAM
Select the Team Members
ØConsult with stakeholders
ØBalance the roles and skills
Train the Teams
ØThe model
ØKnowledge of tools, techniques
ØLeadership & communication skills
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3. COLLECT THE DATA
How you perform the process
ØFlow charts
ØCustomer feedback
Getting the Data
ØInterview guide
ØPost-site visit
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4. ANALYISE THE DATA
Find the Benchmark
ØAssign an ideal, or take the maximum
Compare Performance
ØGraphical presentation - current situation
ØGraphical presentation - historical & future
Find the Gaps
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5. TAKE
Set Goals
ACTION
ØClose the performance gaps -meet, exceed
Decide Change Processes
Ø– Adapt to match company culture
Prepare Budget
ØCommit the resources
Implement
Ø– Train, gain acceptance, support
Monitor Performance
ØFutures
ØRecycle through the model
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