Management of Business presentation on Benchmarking.pdf

Helps with understanding benchmarking

1. BENCH-MARKING

BY: GROUP 5

2. What is Bench-marking?
•Benchmarking is another method for
improving quality. It is the process
where by a firm identifies the best
practices of another firm then
implements them to improve its own
product. It can be a very good source
of quality improvement, as the
strategies used by other firms in the
industry or other industries have been
tested and proven.

3. Main steps in Bench-marking
•Identify the area for improvement - The firm must
examine its operations carefully and identify the
areas that need improvement. It will then decide
which of these areas will be improved through
benchmarking. In identifying the area of the
business that needs improvement, the firm may
gather information from sources such consumers
and workers.
•Choose the right company - Once the areas for
benchmarking have been identified, the next
step is to procure a company that will be studied
and assessed. The company under study must
be contacted and the relevant parameters
established.

4. CONTINUED……
•Gather information - The next step is
to gather information from the
company to be benchmarked. This
information can be gathered through
the use of questionnaires, interviews
or observation. The firm should
ensure that the information collected
is relevant to the areas that need
improvement and is also credible.

5. CONTINUED…..
•Analyze the information gathered -
The information collected is of little
help unless it is carefully analysed
and decisions made regarding
variances between both firms. A
comparison should be done between
what the firm is doing and what the
benchmark company is doing. The
analysis will help the firm to identify
the areas of the benchmark findings
to implement.

6. CONTINUED….
•Implement and evaluate the findings -
Finally, the firm must now implement
the findings of the benchmarking
exercise. In addition, it should
reassess its operations over time to
ascertain whether or not the policies
that were implemented as a result of
benchmarking are working.

7. ADVANTAGES
•Usually much cheaper than some of
the other methods that are used to
improve quality.
•Proper implementation will help to
reduce waste and improve
productivity
•Can improve the competitiveness of
the firm both locally and
internationally

8. DISADVANTAGES
•The search for a suitable firm to
benchmark can be a very tedious
process, as not all firms will want to
share information.
•While possible, what works for one
firm may not necessarily work for the
another.