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Bench Marking Presentation

This document discusses benchmarking, which is the process of comparing business processes and performance metrics to industry best practices. The objective is to understand a business's current position and identify areas for improvement. Benchmarking has advantages like overcoming "paradigm blindness" and opening organizations to new ideas. Costs include visit costs, time costs, and benchmarking database costs. Different types of benchmarking are described like process, financial, performance, strategic, product, functional, best-in-class, and energy benchmarking. The benchmarking procedure and methodologies are outlined, along with characteristics of a good benchmark and common mistakes to avoid.

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abu1jubair
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27 views

Bench Marking Presentation

This document discusses benchmarking, which is the process of comparing business processes and performance metrics to industry best practices. The objective is to understand a business's current position and identify areas for improvement. Benchmarking has advantages like overcoming "paradigm blindness" and opening organizations to new ideas. Costs include visit costs, time costs, and benchmarking database costs. Different types of benchmarking are described like process, financial, performance, strategic, product, functional, best-in-class, and energy benchmarking. The benchmarking procedure and methodologies are outlined, along with characteristics of a good benchmark and common mistakes to avoid.

Uploaded by

abu1jubair
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Benchmarking

By:
Abdul-Muhsin Al-Mulhim 200576930 Riyadh Al-Malki 200631620 Ayman El-Badawi 200378590

Outline
I.


II. III. IV. V.

Introduction Objective Advantages Costs Types Benchmarking Procedure Benchmarking Methodologies Characteristic of A Good Benchmark Common Mistakes in Benchmarking

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.


Improvements from learning mean doing things better, faster, and cheaper.

Objective
The objective of benchmarking is to:
Understand and evaluate the current position of a business or organization in relation to "best practice" and to identify areas and means of performance improvement.

Advantages
Benchmarking is a powerful management tool because it overcomes "paradigm blindness. Benchmarking opens organizations to new methods, ideas and tools to improve their effectiveness.

Costs
Visit Costs Time Costs Benchmarking Database Costs
The cost of benchmarking visits can be reduced through utilizing the internet resources to .

Types
Process benchmarking
focuses its observation and investigation of business processes with a goal of identifying and observing the best practices from one or more benchmark firms

Financial benchmarking
performing a financial analysis and comparing the results in an effort to assess your productivity

Types
Performance benchmarking

allows the initiator firm to assess their competitive position by comparing products and services with those of target firms

Strategic benchmarking

involves observing how others compete

Types
Product benchmarking
the process of designing new products or upgrades to current ones

Functional benchmarking
a company will focus its benchmarking on a single function to improve the operation of that part

Types
Best-in-class benchmarking
involves studying the leading competitor or the company that best carries out a specific function

Operational benchmarking
embraces everything from staffing and productivity to office flow and analysis of procedures performed

Types
Energy benchmarking
developing an accurate model of a building's energy consumption with the purpose of measuring reductions in usage

Benchmarking Procedure
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Select subject ahead Define the process Identify potential partners Identify data sources Collect data and select partners Determine the gap Establish process differences Target future performance Communicate Adjust goal Implement Review

Benchmarking Methodology
Identify your problem areas
Before embarking on comparison with other organizations it is essential that you know your own organization's function, processes; base lining performance provides a point against which improvement effort can be measured.

Benchmarking Methodology
Identify industries with similar processes
For instance if one were interested in improving hand offs in addiction treatment he would try to identify other fields that also have hand off challenges.

Benchmarking Methodology
Identify organizations that are leaders
Look for the very best in any industry and in any country. Consult customers, suppliers, financial analysts, trade associations, and magazines to determine which companies are worthy of study

Benchmarking Methodology
Survey companies for measures and practices
Companies target specific business processes using detailed surveys of measures and practices used to identify business process alternatives and leading companies.

Benchmarking Methodology
Visit the "best practice" companies
To identify leading edge practices - Companies typically agree to mutually exchange information beneficial to all parties in a benchmarking group and share the results within the group.

Benchmarking Methodology
Implement new and improved business practices
Take the leading edge practices and develop implementation plans which include identification of specific opportunities, funding the project and selling the ideas to the organization for the purpose of gaining demonstrated value from the process.

Characteristic of A Good Benchmark


A benchmark should:
be domain specific the more general the benchmark, the less useful it is for anything in particular) be a distillation of the essential attributes of a workload use multiple independent metrics to express the overall performance

Characteristic of A Good Benchmark


A benchmark should:
define the playing field provide a tool enabling quantitative comparisons Provide a mean to accelerate the work progress enabling better engineering by defining measurable and repeatable objectives Establish performance agenda measure tact time, defects rate, out of stock events, etc set goals to meet be understandable and useful also to the people not having the expertise in the field (managers, etc.)

Common Mistakes in Benchmarking


1. Ambiguity in defining goals
for an effective result of a benchmarking process, the goal must be clearly defined un understood by the benchmarking team.

2. Using Single metric for comparison.


single metric benchmarking could lead to misleading results, for example taking the mean as comparison base hide the variance effect on the process.

Common Mistakes in Benchmarking


3. Improper team selection
the team should include experts on the related process or topic of benchmarking, an expert on benchmarking and an external-eye.

4.

Clumsy final presentation of the Benchmark


include only information that clearly related to the benchmarking topic or objective dont bother the reader with extra information.

Common Mistakes in Benchmarking


5. Using vague symbols in place of text
Remember one of the characteristics of a good benchmarking is to be understandable for nonspecialized people

6. Graphs showing extraneous information


dont confuse the audience with information that is irrelevant

Q&a

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