Benchmarking is the process of comparing the current project, methods, or processes with the best practices and using the information gathered to drive improvement of overall company performance. Benchmarks are points of reference from which measurements and/or comparison may be made, an activity, process, service or product that serves as a standard by which others may be measured.
Benchmarking is a continuous improvement process by which an organization:
Click Here to Join the Over 1000 Students Taking our Highly Rated Courses on Quality Assurance/Quality Control, Lean Six Sigma, Lean Manufacturing, Six Sigma, ISO 9001, ISO 14001, ISO 22000, ISO 45001, FSSC 22000, Product Development etc. on UDEMY.
Juran, a thought leader in benchmarking, presents the following examples of benchmarks in an advancing order of attainment:
According to the above, benchmarking is the process of comparing the current project, methods, or processes with the best practices and using the information gathered to drive improvement of overall company performance. The standard for comparison may be competitors within the industry, but is often found in unrelated business segments. The concept of benchmarking can be applied in scores of different business situations.
It is done to identify opportunities, set SMART goals (Specific, Measurable, Achievable, Realistic and Time-Bound) and challenge internal status quo on possibilities. Benchmark enables proper understanding of methods for improved processes. It uncovers strengths and weaknesses within organization. It assists in overall performance improvement initiatives.
Click Here to Join the Over 1000 Students Taking our Highly Rated Courses on Quality Assurance/Quality Control, Lean Six Sigma, Lean Manufacturing, Six Sigma, ISO 9001, ISO 14001, ISO 22000, ISO 45001, FSSC 22000, Product Development etc. on UDEMY.
These applications can be grouped into distinctive types such as the following:
Process benchmarking places emphasis on discrete work processes and operating systems which include customer complaint process, the billing process, or the strategic planning process. The aim of this form of benchmarking is to identify the most effective operating practices from many companies that perform similar work functions.
In this, managers are able to assess their positions in the competitive market through product and service comparisons. This form of benchmarking placed high emphasis on elements of price, technical quality, ancillary product or service features, speed, reliability, and other performance characteristics.
This form of benchmarking is easier than many other business processes, because of the opportunities for selecting outside of the group of direct competitors. Areas such as new product introduction, construction, or new services are activities common to many types of organizations. Even if the project objectives are different, the projects still share the same constraint factors of time, costs, resources, and performance. This type of benchmarking can be used in selecting new techniques for planning, scheduling, and controlling a project endeavor.
Strategic benchmarking is focused on examining how companies compete. This type of benchmarking isn’t always focused on specific industries. It cuts across industries with the goal of trying to identify the winning strategies that have enabled high-performing companies to be successful in their marketplaces.
Click Here to Join the Over 1000 Students Taking our Highly Rated Courses on Quality Assurance/Quality Control, Lean Six Sigma, Lean Manufacturing, Six Sigma, ISO 9001, ISO 14001, ISO 22000, ISO 45001, FSSC 22000, Product Development etc. on UDEMY.
Benchmarking activities most times follow the DIAMR sequence below:
Click Here to Join the Over 1000 Students Taking our Highly Rated Courses on Quality Assurance/Quality Control, Lean Six Sigma, Lean Manufacturing, Six Sigma, ISO 9001, ISO 14001, ISO 22000, ISO 45001, FSSC 22000, Product Development etc. on UDEMY.
Adebayo is a thought leader in continuous process improvement and manufacturing excellence. He is a Certified Six Sigma Master Black Belt (CSSMBB), Digital Manufacturing Professional and ISO Management Systems Lead Auditor (ISO 9001, 45001 & ISO 22000) with strong experience leading various continuous improvement initiative in top manufacturing organizations.
You can reach him here.