Seminar on Benchmarking

7/27/2019 Seminar on Benchmarking

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Seminar On

Benchmarking


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Outline

Benchmarking Definition

Benchmarking Background

Why Benchmarking?

Benchmarking, Dimensions & Types

Benchmarking Process


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What is Benchmarking?

Benchmarking is the process of improving

performance by continuously identifying,

understanding, and adapting outstanding

practices found inside and outside theorganization.


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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 ?



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Benchmarking is critical to formulating a

knowledge-based plan of action to achieve

objectives. A benchmark is a standard thatprovides a measuring-stick for relative

performance.

Benchmarking means to measure the best

practices of leading businesses, and learn and

adapt them for use in your business.


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Continuous method of measuringand comparing a firms business

processes against those of anotherfirm.

Discover performance gaps betweenones own processes and those of

leading firms.

Incorporate leading firms

processes into ones own strategy

to fill the gaps and improveperformance.

Benchmarking has three main features:


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Operational Definition of

Benchmarking

Benchmarking is a technique of identifying,understanding and adapting superior practices

from organizations locally and world wide to

improve performance and achieve

priority business results.

Comparing business processes,not only performance measures

Improvement, not evaluationExternal focusLearn from others

A structured technique


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Benchmarking is not a method for 'copying'

the practices of competitors, but a way of

seeking superior process performance by

looking outside the industry.


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Benchmarking is a tool for continuous

improvement of the management of processes in

companies to help them to gain world leadership.

"Improving ourselves by learning

from others."


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Benchmark

A benchmark is an organization recognized for its

desirable operational performance.

There are many benchmarks in the world including:

Toyota for

Scandinavian Airlines for

Motorola for

Intel for

Honda for

Processes

Design

Training

Service

Rapid product development


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Actual Benchmarking Examples

Las Vegas CasinosEmployee theft reductionIBM

L. L. BeanWarehousing operationsXerox

Indy 500 pit crewsFaster plane turnaround timeSouthwest Airlines

Target FirmImprovement SoughtInitiator


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Background of Benchmarking

The term benchmarking was first used by

cobblers to measure people's feet for shoes.

They would place someone's foot on a

"bench" and mark it out to make the pattern

for the shoes.
http://en.wikipedia.org/wiki/Shoemakinghttp://en.wikipedia.org/wiki/Shoemaking


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Background of Benchmarking

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 (Kolarik,

1995).


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Continuous and Breakthrough Improvement

Time


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Why Benchmarking?

Survival lies in emulating best and not in

lagging behind. Bench marking is time and

cost efficient because it involves imitation and

adaptation rather than pure invention.

Prevents the Re-inventing the wheel.


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Why Benchmarking?

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


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Why Benchmarking

.

.

.

.

Cope with

Competitive

Markets

Keep Pace with

Science and

Technology

Changes

Innovation

In

Management

Methods

Meeting

Quality

Standards

Performance

Improvement

Creative

Thinking

Meeting

Customers

Expectations

Benchmarking


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Three Major Benefits of Benchmarking

Product and Process Improvement

Cost Reduction

Competitive Strategy


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Dimensions of Benchmarking

Benchmarking

encompasses

Total Qualityaspects of the

organization

leading to

Business

Excellence:

.

.

..

Benchmarking

Vision and

Mission

Organizational

Structure

Employee

Behavior

Management

Systems

Leadership

Style


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TOP-10 Benchmarking Organizations

Organization Ranking

Xerox 1

U.S. Army 2

Corning 3

Abu Dhabi Food Control Authority 4

Internal Revenue Service 5

United Technologies 6

DynMcDermott 7

Dubai Municipality 8

Dubai Chamber of Commerce and Industry 9

Allergan 10
http://www.benchdb.com/TBE_Members2/PB4/ResultsBppf2002e.CFM?ltr=0&bppf2002e__ProcessGen=EMPLOYEE%20RECOGNITION&bppf2002e__org=&bppf2002e__message=http://www.benchdb.com/TBE_Members2/PB4/ResultsBppf2002e.CFM?ltr=0&bppf2002e__ProcessGen=EMPLOYEE%20RECOGNITION&bppf2002e__org=&bppf2002e__message=http://www.benchdb.com/TBE_Members2/PB4/ResultsBppf2002e.CFM?ltr=0&bppf2002e__ProcessGen=EMPLOYEE%20RECOGNITION&bppf2002e__org=&bppf2002e__message=http://www.benchdb.com/TBE_Members2/PB4/ResultsBppf2002e.CFM?ltr=0&bppf2002e__ProcessGen=EMPLOYEE%20RECOGNITION&bppf2002e__org=&bppf2002e__message=http://www.benchdb.com/TBE_Members2/PB4/ResultsBppf2002e.CFM?ltr=0&bppf2002e__ProcessGen=EMPLOYEE%20RECOGNITION&bppf2002e__org=&bppf2002e__message=http://www.benchdb.com/TBE_Members2/PB4/ResultsBppf2002e.CFM?ltr=0&bppf2002e__ProcessGen=EMPLOYEE%20RECOGNITION&bppf2002e__org=&bppf2002e__message=http://www.benchdb.com/TBE_Members2/PB4/ResultsBppf2002e.CFM?ltr=0&bppf2002e__ProcessGen=EMPLOYEE%20RECOGNITION&bppf2002e__org=&bppf2002e__message=http://www.benchdb.com/TBE_Members2/PB4/ResultsBppf2002e.CFM?ltr=0&bppf2002e__ProcessGen=EMPLOYEE%20RECOGNITION&bppf2002e__org=&bppf2002e__message=http://www.benchdb.com/TBE_Members2/PB4/ResultsBppf2002e.CFM?ltr=0&bppf2002e__ProcessGen=EMPLOYEE%20RECOGNITION&bppf2002e__org=&bppf2002e__message=http://www.benchdb.com/TBE_Members2/PB4/ResultsBppf2002e.CFM?ltr=0&bppf2002e__ProcessGen=EMPLOYEE%20RECOGNITION&bppf2002e__org=&bppf2002e__message=http://www.benchdb.com/TBE_Members2/PB4/ResultsBppf2002e.CFM?ltr=0&bppf2002e__ProcessGen=EMPLOYEE%20RECOGNITION&bppf2002e__org=&bppf2002e__message=http://www.benchdb.com/TBE_Members2/PB4/ResultsBppf2002e.CFM?ltr=0&bppf2002e__ProcessGen=EMPLOYEE%20RECOGNITION&bppf2002e__org=&bppf2002e__message=http://www.benchdb.com/TBE_Members2/PB4/ResultsBppf2002e.CFM?ltr=0&bppf2002e__ProcessGen=EMPLOYEE%20RECOGNITION&bppf2002e__org=&bppf2002e__message=http://www.benchdb.com/TBE_Members2/PB4/ResultsBppf2002e.CFM?ltr=0&bppf2002e__ProcessGen=EMPLOYEE%20RECOGNITION&bppf2002e__org=&bppf2002e__message=http://www.benchdb.com/TBE_Members2/PB4/ResultsBppf2002e.CFM?ltr=0&bppf2002e__ProcessGen=EMPLOYEE%20RECOGNITION&bppf2002e__org=&bppf2002e__message=http://www.benchdb.com/TBE_Members2/PB4/ResultsBppf2002e.CFM?ltr=0&bppf2002e__ProcessGen=EMPLOYEE%20RECOGNITION&bppf2002e__org=&bppf2002e__message=http://www.benchdb.com/TBE_Members2/PB4/ResultsBppf2002e.CFM?ltr=0&bppf2002e__ProcessGen=EMPLOYEE%20RECOGNITION&bppf2002e__org=&bppf2002e__message=http://www.benchdb.com/TBE_Members2/PB4/ResultsBppf2002e.CFM?ltr=0&bppf2002e__ProcessGen=EMPLOYEE%20RECOGNITION&bppf2002e__org=&bppf2002e__message=http://www.benchdb.com/TBE_Members2/PB4/ResultsBppf2002e.CFM?ltr=0&bppf2002e__ProcessGen=EMPLOYEE%20RECOGNITION&bppf2002e__org=&bppf2002e__message=http://www.benchdb.com/TBE_Members2/PB4/ResultsBppf2002e.CFM?ltr=0&bppf2002e__ProcessGen=EMPLOYEE%20RECOGNITION&bppf2002e__org=&bppf2002e__message=http://www.benchdb.com/TBE_Members2/PB4/ResultsBppf2002e.CFM?ltr=0&bppf2002e__ProcessGen=EMPLOYEE%20RECOGNITION&bppf2002e__org=&bppf2002e__message=http://www.benchdb.com/TBE_Members2/PB4/ResultsBppf2002e.CFM?ltr=0&bppf2002e__ProcessGen=EMPLOYEE%20RECOGNITION&bppf2002e__org=&bppf2002e__message=http://www.benchdb.com/TBE_Members2/PB4/ResultsBppf2002e.CFM?ltr=0&bppf2002e__ProcessGen=EMPLOYEE%20RECOGNITION&bppf2002e__org=&bppf2002e__message=http://www.benchdb.com/TBE_Members2/PB4/ResultsBppf2002e.CFM?ltr=0&bppf2002e__ProcessGen=EMPLOYEE%20RECOGNITION&bppf2002e__org=&bppf2002e__message=http://www.benchdb.com/TBE_Members2/PB4/ResultsBppf2002e.CFM?ltr=0&bppf2002e__ProcessGen=EMPLOYEE%20RECOGNITION&bppf2002e__org=&bppf2002e__message=http://www.benchdb.com/TBE_Members2/PB4/ResultsBppf2002e.CFM?ltr=0&bppf2002e__ProcessGen=EMPLOYEE%20RECOGNITION&bppf2002e__org=&bppf2002e__message=http://www.benchdb.com/TBE_Members2/PB4/ResultsBppf2002e.CFM?ltr=0&bppf2002e__ProcessGen=EMPLOYEE%20RECOGNITION&bppf2002e__org=&bppf2002e__message=http://www.benchdb.com/TBE_Members2/PB4/ResultsBppf2002e.CFM?ltr=0&bppf2002e__ProcessGen=EMPLOYEE%20RECOGNITION&bppf2002e__org=&bppf2002e__message=http://www.benchdb.com/TBE_Members2/PB4/ResultsBppf2002e.CFM?ltr=0&bppf2002e__ProcessGen=EMPLOYEE%20RECOGNITION&bppf2002e__org=&bppf2002e__message=http://www.benchdb.com/TBE_Members2/PB4/ResultsBppf2002e.CFM?ltr=0&bppf2002e__ProcessGen=EMPLOYEE%20RECOGNITION&bppf2002e__org=&bppf2002e__message=


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Benchmarking Process

There are various methods of benchmarking

and a variety of methodologic processes in

benchmarking mechanisms and

implementation. Some important

organizations have developed their own

benchmarking process.


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Plan

Select Process

Understand Process

Select Partners

Act

Communicate actionsDevelop improvement

plan

Implement

Review Progress

Analyze

Collect Data

Establish the gap

Identify process changes

Target future goals

General Benchmarking Process


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Xerox Experience-1(Brogan, 1994)

The Xerox of today is not the Xerox of the sixties and

seventies. During that time period the organization

experienced market erosion from competitors, primarily

Japanese. These competitors were marketing higherquality products in the United States at the same price or

lower as Xerox. Xerox found that the Japanese were able

to assemble quality products at a low price. This was hard

for Xerox to grasp because they were the first to develop

the photocopy and their name had come to be

synonymous with photocopies.


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Xerox Experience-2 (Brogan, 1994)

How could the Japanese be beating them at their own

game? Xerox found that they had to regroup. In doing

this they made competitive benchmarking a fundamental

part of their operations. Xerox began to study otherorganizations within and out of their industry. By 1983,

Xerox had bench marked more than 230 process

performance areas in their operation. Identifying the best

processes used by others, Xerox adapted them for their

own use. This is how they regained their core competency

and strategic advantage in the photocopying industry.


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Xerox-Step Benchmarking Process-1

Phase 1: Planning

1. Identify what to benchmark;

2. Identify comparative companies;

3. Determine data collection method & collect data.

Phase 2: Analysis

4. Determine current performance gap;

5. Project future performance levels.

Phase 3: Integration

6. Communicate finding and gain acceptance;

7. Establish functional goals.


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Xerox-Step Benchmarking Process-2

Phase 4: Action

8. Develop action plans;

9. Implement specific actions & monitor progress;

10. Recalibrate benchmarks.

Phase 5: Maturity

11. Attain leadership position ;

12. Fully integrate practices into processes.


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Conclusion:

Benchmarking does not come as a natural

process for many competitiveness does, but

not benchmarking, because benchmarking

requires a team approach.


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Thanking You.

Documents

Seminar on Benchmarking