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Vidya Vikas Universal College: Benchmarking

This document discusses benchmarking, which is comparing business processes and performance metrics to best practices. There are different types of benchmarking such as internal, competitive, and generic. Benchmarking benefits include better customer satisfaction, productivity, and profits. Common factors for measuring business excellence are leadership, policy, customer satisfaction, and business results. Successful benchmarking involves planning, analysis, action, review, and repetition as a continuous process.

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134 views

Vidya Vikas Universal College: Benchmarking

This document discusses benchmarking, which is comparing business processes and performance metrics to best practices. There are different types of benchmarking such as internal, competitive, and generic. Benchmarking benefits include better customer satisfaction, productivity, and profits. Common factors for measuring business excellence are leadership, policy, customer satisfaction, and business results. Successful benchmarking involves planning, analysis, action, review, and repetition as a continuous process.

Uploaded by

shaikh420
Copyright
© Attribution Non-Commercial (BY-NC)
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Download as PPT, PDF, TXT or read online on Scribd
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VIDYA VIKAS UNIVERSAL COLLEGE

BENCHMARKING

Presented by- Shaikh Altaf S.Y.BMS- 20

Introduction

Benchmarking is the process of comparing one's business processes and performance metrics to industry bests or best practices from other industries.

Dimensions typically measured are quality, time and cost.


Benchmarking is used to measure performance using a specific indicator (cost per unit of measure, productivity per unit of measure or defects per unit of measure) resulting in a metric of performance that is then compared to others.

Types of benchmarking
Benchmarking can take the form of several different types:
Internal benchmarking a comparison of internal operations such as one site (or project team) against another within the same company. Competitive benchmarking a comparison against a specific competitor for the product, service or function of interest. Generic benchmarking Method of comparing the performance and

processes of organizations in unrelated industries.

The Benefits of Benchmarking in the Construction Industry


Benefits include:
Better performance in meeting customer needs & requirements.
Establishing effective business goals and objectives.

Measuring true productivity.


Becoming competitive. Increasing Sales and Profits. Improving Product Quality.

Business Process Improvement


Commonly accepted factors of measuring business excellence:
Leadership. Policy & strategy. People management. Resource management. Business Process. Customer satisfaction. Business results.

What are the side effects to successful benchmarking?


Benchmarking has some inadequacies which must be clearly recognised and understood before continuing the exercise: Don't try and benchmark too many things to begin with.Select two or three key areas, and then gradually add others over time.. Be precise in defining what is to be measured.A lack of clearity can lead to confusing an inappropriate benchmarks.. Test the benchmarks internally before consulting with outside companies.. Remember that your organisation's priorities may change with time,and so your benchmarks should be regularly reviewed (and changed if necessary) to reflect this.

5 steps to successful benchmarking


Plan: Clearly establish what needs to be improved make sure it is
important to you and your customers and determine the data collection methodology to be used (including any KPIs).

Analysis: Gather the data and determine the current performance gap against a competitor, the industry or internally and identify the reasons for the difference. targets.

Action: Develop and implement improvement plans & performance

Review: Monitor performance against the performance targets. Repeat: Repeat the whole process benchmarking needs to become
a habit if you are serious about improving your performance.

Conclusion
Benchmarking must be a continuous process with

the extent and scope of the project being dependent on the resources that the company has available. The above key steps to benchmarking are detailed further along with a list of factors to be aware of in the companion document "Guide to Benchmarking".

Bibliography
www.google.com www.wikipedia.com www.benchnet.com

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