Benchmarking

BENCHMARKING : DEFINITION AND CLASSIFICATION
IMPORTANCE OF BENCHMARKING

1. PRESENTER: MR. AMOGH P. DANDEKAR FIRST YEAR M.PHARM DEPARTMENT OF PHARMACEUTICAL QUALITY ASSURANCE REG.NO: NH0117005 DATE : 13 /11/2017 1

2. CONTENT Introduction of benchmarking Definition of benchmarking Reasons for benchmarking Benefits of benchmarking Types of benchmarking 2

3. introduction Benchmarking was originally defined by D.T. Kearns, the CEO of Xerox Corporation, in 1981 as the continuous process of measuring products, services, and practices against the toughest competitors or non-competitors who is the leader in their industry 3

4. benchmarking Benchmarking is the process of improving performance by continuously identifying, understanding, and adapting outstanding practices found inside and outside the organization . Benchmarking is Making Best Practices Your Daily Practice. 4

5. benchmarking Benchmarking is the process of comparing one's business processes and performance metrics to industry bests and/or best practices from other industries. Why are others better ? How are others better ? What can we learn ? How can we catch up ? How can we become the best in our sector ? 5

6. Features of benchmarking 6

7. Why Benchmarking? 7

8. Benchmarking gives us the chance of gaining : Better Awareness of Ourselves (Us) What we are doing ? How we are doing it ? How well we are doing it ? Better Awareness of the Best (Them) What they are doing ? How they are doing it ? How well they are doing it ? 8

9. Why Benchmarking ? Benchmarking Meeting Quality Standards Performance Improvement Creative Thinking Keep Pace with Science and Technology Changes Meeting Customers Expectation Cope with Competitive Markets Management Methods 9

10. Three Major Benefits of Benchmarking 10

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12. Types of benchmarking On the basis of “ What ” is being compared with other organizations and “ Who ” is being compared with our organization, we can classify benchmarking. 12

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14. Strategic benchmarking Strategic benchmarking deals with top management. It deals with long term results. Strategic benchmarking focuses on how companies compete. This form of benchmarking looks at what strategies the organizations are using to make them successful. 14

15. Strategic benchmarking This is concerned with comparing different companies' strategies and assessing the success of those strategies in the marketplace 15

16. Performance benchmarking Performance benchmarking focuses on assessing competitive positions through comparing the products and services of other competitors. When dealing with performance benchmarking, organizations want to look at where their product or services are in relation to competitors on the basis of things such as reliability, quality, speed, and other product or service characteristics. 16

17. Process benchmarking Process benchmarking focuses on the day-to-day operations of the organization. It is the task of improving the way processes performed every day. Some examples of work processes that could utilize process benchmarking are the customer complaint process, the billing process, the order fulfillment process, and the recruitment process 17

18. Internal Benchmarking This refers to the analysis and comparison of one or more units within the same organization. It is often the case when organizations have an in-house best practice area. 18

19. Competitive benchmarking Competitive benchmarking is the most difficult type of benchmarking to practice. For obvious reasons, organizations are not interested in helping a competitor by sharing information. This form of benchmarking is measuring the performance, products, and services of an organization against its direct or indirect competitors in its own industry. 19

20. External Benchmarking Where examples of good practices can be found in other organizations and there is a lack of good practices within internal business units . Comparison with external organizations leads to discovery of new ideas, methods, products 20

21. External Benchmarking 21

22. Functional benchmarking Functional benchmarking - a company will focus its benchmarking on a single function to improve the operation of that particular function. Complex functions such as Human Resources, Finance and Accounting and Information and Communication Technology are unlikely to be directly comparable in cost and efficiency terms and may need to be disaggregated into processes to make valid comparison. 22

23. Generic benchmarking Comparisons of business process or functions that are very similar, regardless of industry. 23

24. reference Key Benchmarks at a Glance: Pharmaceutical Industry (Collection) [Internet]. Apqc.org. 2017 [cited 16 September 2017]. Available from: http:// www.apqc.org/knowledge-base/collections/key-benchmarks-glance-pharmaceutical-industry-collection Ernst S. Pharmaceutical Benchmarking: A Contract Manufacturing Perspective [Internet]. Pharmtech.com. 2017 [cited 16 September 2017]. Available from: http:// www.pharmtech.com/pharmaceutical-benchmarking-contract-manufacturing-perspective KPIs for Pharmaceutical Industry - Pharmaceutical Benchmarking | OpsDog [Internet]. Opsdog.com. 2017 [cited 16 September 2017]. Available from: https:// opsdog.com/industries/pharmaceuticals/pharmaceuticals-kpis-and-benchmarks JURAN’S QUALITY HANDBOOK. Benchmarking Robert C. Camp and Irving J. DE Toro 24

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