Benchmarking By / Mahmoud Shaqria محمود محمد شقريه
1- Definition OF Benchmarking 2- Principles of Benchmarking 3- Types of benchmarking 4- Benchmarking Process 5- Advantages & Disadvantages of the benchmarking Out lines
Definition There are many definitions according to different perceptions and applications of the technique and philosophy . Benchmarking defined as a process for improving performance of any organization by continuously identifying, understanding & adopting outstanding practices and processes inside or outside the organization. Definition OF Benchmarking
1 . Improves practices, services or products . 2. Involves learning about ‘best practices’ from others . 3 . Accelerates the rate of progress and improvements. 4 . Contributes to continuous quality management; 5 . Is an ongoing process. Principles of Benchmarking
6. Promotes fresh and innovative thinking about problems. 7. Provides hard data on performance . 8. Focuses not only on what is achieved, but on how it is achieved. 9. Involves the adaptation, not merely adoption, of best practices. 10. Results in the setting of specific targets.
1-Internal benchmarking 2- External benchmarking Types of benchmarking
*The process of comparing an organization’s current data on productivity with its own past records to determine how its current performance compares with past performance . *Variations alert the manager to changes *Patterns and trends guide staffing/work processes 1-Internal Benchmarking
ADVANTAGES: 1- E asier to implement 2- E asier to access data DISADVANTAGES: - External ideas blocked Internal Benchmarking
*External benchmarking requires a comparison of work with external organizations in order to discover new ideas , methods, products and services. *The objective is continuously to improve one's own performance by measuring how it performs, comparing it with that of others and determining how the others achieve their performance levels . 2-External benchmarking
Advantages 1- Helps to measure one’s own performance 2- Helps to search for best practices Disadvantages 1- Takes time 2- Requires support External benchmarking
Basic Steps 1. Planning 2. Analysis 3. Integration 4. Action and Monitoring Benchmarking Process Planning Data Gathering and Analysis Action and Monitoring Integration Benchmarking Process
1- Planning Establish benchmarking roles and responsibilities. Decide what you wish to benchmark. Identify the process to benchmark. Decide against whom you need to benchmark Document the current process. Identify outputs required. Determine data collection methodologies.
2. Analysis Normalise the performance data. Construct a comparison matrix to compare your current performance data with your partners’ data. Identify outstanding practices. Analys the gaps. Analys factors that create the gaps. Isolate process enablers .
3. Integration Define Set stretching targets “Vision” an alternative process Consider the barriers to change Plan to implement the changes 4. Action and Monitoring Implementation planning Roll-out of new modus operandi (changes) Collecting data Evaluating progress Iterative change
Advantages of the benchmarking : 1- Learn from others experience & practices . 2- It allows examination of present processes 3- Aids change & improvement. 4-It g ives a chance for study & measurement of a competitor for the purposes of process or product quality improvement. Advantages & Disadvantages of the benchmarking
5-Benchmarking often proves particularly successful when comparing processes. 6-Helps the organizations to stay in the business with high performance. 7-Delight the customer of the organizations. 8-Continuous of Improvement and apply benchmarking increased the opportunity to be world class leader. 9-Sharing the best practices between benchmarking partners. 10-It I identifies opportunities for improvement.
Disadvantages of benchmarking : 1-Poorly defined benchmarks may lead to wasted effort and meaningless results. 2-Incorrect comparisons will effect the result of required improvement and what is best for someone else may not suit to other. 3-Some organizations have reluctance to share the information. 4-Benchmarking cannot change all required improvement at once .