Benchmarking technique

1. Benchmarking

2. Benchmarking : Quality by comparison

3. FICCI CE
Benchmarking
Benchmarking is quality by comparison for achieving better
standards. In the global movement today , the competition is
increasing at a faster rate , and the only way to improve your
relative quality and move upwards is to benchmark with the best
in the class.

4. Benchmarking :-
Stages of improvement
World Class
Recognized as the best.
Benchmarked by others even in other sectors
Best in Class
Exceeds customer expectations,outperforms
all competitors and has clear competitive edge
Efficient
Meets all internal requirements for cost margins,
asset utilization,cycle-time and measures of excellence
Incapable
Is ineffective , inefficient and at the risk of failing.
Needs major redesign
Effective
Satisfies all customer requirements

5. FICCI CE
Benchmarking
methodology
Benchmarking can be of various types - Competitive benchmarking,
product benchmarking, process benchmarking and best practices
benchmarking. Whatever be the category chosen by the organization,
the benchmarking methodology remains the same in each case.
Benchmarking methodology is explained through 5 simple steps in
the following slides.

6. FICCI CE
A. Identify processes to benchmark
•Select processes to benchmark.
•Measure current process capability.
•Understand detailed process which needs improvement.

7. FICCI CE
B. Select organization to benchmark
•Select organizations which perform your process.
•Compile a list of world class process parameters.

8. FICCI CE
C. Compile the required information
•Develop a detailed questionnaire to obtain desired information.

9. FICCI CE
D. Analyze gaps
Identify the performance gaps and develop an action plan to close
the gaps. Also highlight and quantify the consequences of not
closing the gap.

10. FICCI CE
E. Develop an action plan
•Review observations of the gap analysis.
•Set new performance standards.
•Develop an action plan for meeting the new performance
standards.

11. FICCI CE