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Bench Marking

This document provides an overview of benchmarking. It defines benchmarking as measuring one's processes and performance against leaders in the industry in order to identify areas for improvement. The document outlines the benchmarking process, which involves deciding what to benchmark, identifying benchmarking partners, gathering information, analysis, and implementation. It discusses different types of benchmarking such as internal, external, performance, functional, strategic, process, and international benchmarking. The benefits of benchmarking include identifying performance gaps and driving improvements. Potential problems are also noted if the benchmarking process is not properly executed.

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Pankaj Kumar Tomar
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40 views23 pages

Bench Marking

This document provides an overview of benchmarking. It defines benchmarking as measuring one's processes and performance against leaders in the industry in order to identify areas for improvement. The document outlines the benchmarking process, which involves deciding what to benchmark, identifying benchmarking partners, gathering information, analysis, and implementation. It discusses different types of benchmarking such as internal, external, performance, functional, strategic, process, and international benchmarking. The benefits of benchmarking include identifying performance gaps and driving improvements. Potential problems are also noted if the benchmarking process is not properly executed.

Uploaded by

Pankaj Kumar Tomar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Benchmarking

Presented By

Pankaj kumar Tomar


WHAT IS BENCHMARKING ?
Benchmarking is the continuous, Systematic process

of measuring one’s output and or work processes


against the toughest competitors or those recognized


best in the Industry.


Benchmarking is a process of measuring and comparing


an organization's business process against leaders


anywhere in the world, to gain information which will


help the organisation to improve its performance.



Why best practice
q Best practice refers to techniques, methods or processes
that are more effective at delivering a desired outcome.

q Incorporating best practice into your organization can lead
to greater efficiency and effectiveness and a happier
customer.

EVOLUTION OF BENCH MARKING

5th Generation
Global Bench marking
4th Generation
Strategic Bench marking
Sophistication

3rd Generation
Process Bench marking
2nd Generation
Competitive Bench
st
marking
1 Generation
Reverse
Engineering
Time
Benchmarking Process

 4 questions

q What should we benchmark?


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

Benchmarking Process

BM must for Key Business Processes


(KBPs)

q Product development
q Customer Service
q Inventory Control
q Research & Development etc

Benchmarking Process

BM must for Critical Success Factors


(CSFs)

q Cost Management
q Product Quality
q Product Design
q Organisation Image etc

BENCHMARKING PROCESS

ve
pr o
Im

pt
a
Ad

p t
d o
A
5 STAGES OF BENCHMARKING

Decide Identify Gather


What to BM info Analyse Implement
BM Partners
Approaches to Benchmarking
q Internal & External Benchmarking
q Performance or Competitive Benchmarking
q Functional and Generic Benchmarking
q Strategic Benchmarking
q Process Benchmarking
q International Bench marking

INTERNAL BENCHMARKING

q Establishing good practice organisation


q Comparison of similar functions in different
 operating units within the organisation
Example:

 Tata Corus Steel’s Colliery divisions benchmarking their


maintenance practices with that of the Maintenance
division inside the Steel Works at various other unit.


External Benchmarking

q Comparison of organisation functions and key


processes against
q Good Practice Organisation
§
Example:

Search for improvement or breakthrough Opportunities


in business processes
§

Performance or Competitive
Benchmarking

Organizations using performance measures to


compare themselves against similar organizations

Example


FMCG’s comparing with each other for
Market share, Retention rates, profits, costs


FUNCTIONAL BENCHMARKING

Comparison of similar functions against external best in


any industry

Example:
Hindustan Max – GB Ltd , a pharmaceutical company,

benchmarking their maintenance function with that of


Tata Steel.

GENERIC BENCHMARKING

 Involves organizations that are not direct competitors


but share similar organisational practices and
procedures

Example :

q An insurance company may Benchmark a bank loan


application process against its insurance claims process.


Strategic Benchmarking

 Used where organizations seek to improve their overall


performance by focusing on specific strategies.

 Example

Benchmarking against organizations which have
won awards or some other distinctions


Process Benchmarking

 Focus on improving specific critical processes and


operations.

 Examples
 in hotels—housekeeping, customer care,
q
International Benchmarking
ü Best practitioners are identified and analysed
elsewhere in the world.
ü The aim is to achieve world class status or
simply because there are insufficient
"national" businesses against which to
benchmark.
Ø
Benefits of Benchmarking
q Benchmarking helps identify the gaps between the
organization that is undertaking the benchmarking
assessment and best practice.
q Undertaking benchmarking can lead to improvements
being incorporated into processes and systems
delivering gains in efficiency and effectiveness
q Benchmarking can help align improvement activity with
strategic goals and objectives

Problems with Benchmarking
 Problems with benchmarking occur
where
qData is not obtained for the process being measured
– and analysis becomes subjective
qNo peer group/best practice identified (including
data available)
qThe gap between current state and best practice is
captured but nothing is done about it
qAssumed best practice isn't best practice
qBenchmarking happens as a one off event and not
reviewed periodically

Conclusion

 THANK YOU
Questions

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