PRESANTATION ON BENCHMARKING

SUBMITTED TO:PROF.ANUBHA VALIYA

SUBMITTED BY:ATINDRA KUMAR PADMAJA TRIPATHI SECTION:-MM-1

BENCHMARKING
Benchmarking is the process of continually searching for the best methods, practices and processes, and either adopting or adapting their good features and implementing them to become the best of the best.
Why are other better? How are others better? What can we learn? How can we catch-up? How can we became the best in our sector?

BENCHMARKING CONCEPT
What is our Performance level? How do we do it What are others Performance levels? How did they get there?

Creative Adaptation

Breakthrough Performance

WHY BENCHMARKING
To Obtain an External Perspective of What Is Possible To Assist in Setting Strategic Targets To Promote Improvements in Performance To Establish a Competitive Edge To Enhance Customer Satisfaction To Reduce Costs To Improve Employee Morale To Achieve Quality Awards To Survive

TYPES OF BENCHMARKING
1) Comparison: (Partner Selection)
Internal Best in Firm Competitive Best in Industry Functional Generic

2) Form: Performance Benchmarking Process Benchmarking Strategic Benchmarking

SELECTING BENCHMARKING PARTNERS

BENCHMARKING TYPE INTERNAL POTENTIAL BENCHMARKING PARTNERS Comparable sites, branches, sections, departments within the business

COMPTITIVE

Within the same industry sector

FUNCTIONAL GENERIC

Same function across all industry fields All industry fields

INTERNAL BENCHMARKING
Comparison of similar functions in different

operating units within the organization Example

Tata

Steels Colliery divisions benchmarking their maintenance practices with that of the Maintenance division inside the Steel Works at Jamshedpur.

COMPETITIVE BENCHMARKING
Comparison of organization functions and

key processes against practice organization.

external

good

FUNCTIONAL BENCHMARKING
Comparison of similar functions against

external best in any industry Example

Hindustan Max GB Ltd , a pharmaceutical

company, benchmarking their maintenance function with that of Tata Steel.

GENERIC BENCHMARKING
Comparison of functions which are generic

in nature in any industry Examples

Hospital in the U.S. routinely benchmark

their patient management against hotels guest management.

Airlines benchmark their customers service

with 5 star hotels.

PERFORMANCE OR COMPETITIVE
Organizations

using performance measures to compare themselves against similar organizations

Example
FMCGs comparing with each other for

Market costs.

share,

Retention

rates,

profits,

PROCESS BENCHMARKING
Focus on specific operations or processes

Examples
In higher education - Enquiry Management,

Enrolment
In Logistics - Delivery, Safety. In hotels - Housekeeping, Customer Care.

STRATEGIC BENCHMARKING
Used where organizations seek to improve

their overall performance by focusing on specific strategies or processes Example

Benchmarking against organizations which

have won distinctions

awards

or

some

other

BENCHMARKING PROCESS
PHASES PLANNING STEPS
1) define what is to be Bench Marked? 2) Identify the best competitor 3) Determine the data collection method and start collecting data

ANALYSIS

4) Determine the current performance GAP 5) Project future performance levels

INTEGRATION 6) Communicate bench mark findings and gain

acceptance 7) Establish Functional Goals A) Communicate Data For analysis B) Acceptance for Analysis

BENCHMARKING PROCESS
PHASES ACTON MATURITY STEPS
8) Develop Action Plans 9) Implement specific actions and monitor Progress 10) Recalibrate Benchmarks 11) Attain the Leadership position 12) Integrate Practice into the Process

Problems in Benchmarking
Finding suitable partners.Difficulties in

comparing data (50% oforganizations found this) andExpertise)

Resource constraints (Time, Finance Staff resistance.

CONCLUSION
Quality management programs include quality control, quality

assurance, Continuous Quality Improvement and Total Quality Management. strength and reduce weakness.

Benchmarking is one of the tool to help organizations develop BM can inspire managers and organization to compete. Performance BM is to compare ones own performance with

that of some other organization.

Process of BM is to compare the methods and practice for

performing progress.

THANK YOU