BENCHMARKING Objectives -Accelerate the process of Business Change -Lead to other Breakthrough and Continuous Improvement -Result in Customer

Satisfaction and Competitive Advantage -Adapt Best Practices

Definition Benchmarking is the PROCESS of continuously measuring and comparing ones BUSINESS PROCESSES against comparable processes in LEADING ORGANISATIONS to OBTAIN INFORMATION that will help the organisation identify and IMPLEMENT IMPROVEMENTS

TYPES OF BENCHMARKING

INTERNAL

COMPETITIVE FUNCTIONAL GENERIC

INTERNAL BENCHMARKING
Comparison of similar functions in different units within the organisation Ease in getting information Ease of implementation due to similarity of culture Low study cost May not represent the best May not provide breakthrough improvement

COMPETITIVE BENCHMARKING
Comparison of similar functions against External Best of Competition - Understanding Competition - Limitation in getting Information - May not provide breakthrough Improvement

FUNCTIONAL BENCHMARKING
Comparison of similar functions against external best in any industry - High openness to share information - May provide breakthrough improvement - Wide scope - Organisation buy-in may be limited buy-

GENERIC BENCHMARKING
Comparison of functions which are generic in nature in any industry - Window to unrelated but relevant aspects - Outstanding breakthrough possible - Possibility of becoming best of the breed - Organisation buy-in may be limited buy- Requires a lot of creativity

WHAT TO BENCHMARK
* Products and Services - Finished Goods, Product and Service Features * Work Processes - How a Product or service is produced or supported * Support functions Indirect labour not directly associated with the process of production or support eg: Finance, HR

WHAT TO BENCHMARK. * Organisational Performance Cost,

Revenues, Production Indicators, Quality Indicators * Strategy - Short or long term plans, The planning process

KEY SUCCESS FACTOR

CHOICE OF RIGHT BENCHMARKING PARTNER THOROUGH PROCESSS MAPPING OF ONES OWN PRACTICES HIGH LEVEL OF OBSERVATION WILLINGNESS TO LEARN COMMITMENT TO EXPERIMENT

REASONS FOR BENCHMARKING - Why reinvent the wheel?

- If somebody else can, why not us? Note of caution: - not a panacea - the best-in-class performance is a moving best-intarget.

BENCHMARKING PROCESS MODEL

Adapt Analyse

Plan
Search

Observe

PERFORMANCE MATRIX
overkill Current Performance
Unimportant Must be improved

ok

Importance

BENCHMARKING VOCABULARY
CRITICAL SATISFACTION FACTORS The critical few among the customer satisfaction factors Those few customer satisfaction factors that must be managed successfully if the organisation is to remain competitive in its marketplace The Critical few elements of customer satisfaction that a successful organisation comes close to managing 100% RIGHT 100% of the time

Selection of Process Product: Portable PC

CSF Rank as per imp. Rate as per Cos perf. 6.9 2.9 5.1 3.4 6.5 2.7 4.1

MECH REL 6.7 AVAIL./DELIVERY 6.6 BATTERY LIFE 5.8 PRICE 4.6 HARD STORAGE CAP. 4.3 RAM CAPACITY 3.7 WEIGHT 2.0

SELECTION OF PROCESS

.5 Rate Performance
.7 3.5 .6 3.5 .4 .3

.1

Top Priority for selection of process to be benchmarked

.2

Rank

SCOPING THE PROCESS * DETERMINE CUSTOMER REQUIREMENTS FOR THE PRODUCTS/SERVICES YOU PROVIDE * ANALYSE THE ACTIVITIES THAT PRODUCE THE CUSTOMER OUTPUT *DETERMINE INPUT REQUIREMENTS * IDENTIFY YOUR SUPPLIERS

CREATE A HIGH LEVEL PROCESS MAP A Process Map is a macro snapshot of the entire process form beginning to end. CREATE ONE either crossfunctional or functional
to reflect the team composition and membership

THE TEAM
PROJECT SPONSOR PROCESS OWNER TEAM LEADER TEAM MEMBERS PROJECT FACILITATOR

MEASURES
QUALITY COST CYCLE TIME PROBLEM RESOLUTION

MUST LINK INTO: PERFORMANCE OF SUPPORTING FUNCTIONS ORGANISATIONAL STRATEGY