HB 80-1996 Benchmarking Explained - A Guide for Undertaking and Implementing Benchmarking
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SAA/SNZ HB80:1996
HANDBOOK
This is a free 6 page sample. Access the full version at http://infostore.saiglobal.com.
Benchmarking Explained—
A Guide for Undertaking and
Implementing Benchmarking
SAA/SNZ HB80:1996
HANDBOOK
This is a free 6 page sample. Access the full version at http://infostore.saiglobal.com.
Benchmarking Explained—
A Guide for Undertaking and
Implementing Benchmarking
PUBLISHED JOINTLY BY:
STANDARDS AUSTRALIA
1 The Crescent,
Homebush NSW 2140 Australia
STANDARDS NEW ZEALAND
Level 10, Standards House,
155 The Terrace,
Wellington 6001 New Zealand
ISBN 0 7337 0628 2
SAA/SNZ HB80:1996 2
F O R E W O R D
This Handbook was prepared by Standards Australia to provide guidance to those
seeking a basic understanding of benchmarking, the benchmarking process and the
applications of benchmarking.
It is not intended to provided detailed and comprehensive information on the subject
but does indicate some references for those seeking a more extensive treatment of the
topic.
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First publi shed as SAA/SNZ HB80:1996.
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3 SAA/SNZ HB80:1996
OVERVIEW
Benchmarking is something we have all done at some stage of our lives. When we
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competed against others, for example at, sport, in exams, at work or in any other
activity, one of the questions we were asking wa s ‘how do I compare with the
others?’
This Handbook aims to provide a basic introduction to the subject of benchmarking
and is not intended to provide an in depth treatise on the subject. Additional
information is available from the literature listed in References.
Benchmarking in its simplest sense is comparing one thing against another. It may
be how well your latest product is selling compared with competing products or
finding out if your manufacturing processes are competitive. However, simply
knowing that you are doing well or badly is of little help unless you are prepared to
act on the information. It is what you can achieve with the information gained by
benchmarking that makes it such a potentially powerful tool.
Benchmarking is one of many tools that businesses can use to evaluate their
performance and to identify the need for improvements. It is important to recognize
which is the right tool to be used in each particular circumstance. Some areas where
benchmarking might be used include:
business practices;
products;
services;
work processes;
operations.
Benchmarking in itself is not a magic tool that will bring about instant solutions to
problems. Properly applied, it can be used to provide information on wa ys and
means of doing things better or faster or more economically.
Generally, it should not be a ‘one off’ process. Or ganizations successfully using
benchmarking regard it as an ongoing management tool that can be used to provide
information to be acted upon.
Benchmarking complements a quality system, since it can provide the basis for
improvement. It should not be regarded as copying what others do, but rather
learning from others and adapting practices that work for your business.
SAA/SNZ HB80:1996 4
There are many texts wr itten on the subject. While there are many approaches and
systems described in the literature, they all can be summarized into a few key
operations:
Decide on what is to be benchmarked and plan the operation.
Decide on the benchmarking partners.
Agree on the program; what is to be measured and how.
Carry out the actual benchmarking.
Analyse the results, decide on actions and implement them.
Measure the effectiveness of the actions taken.
Decide on the next phase of benchmarking program.
In this Handbook, each of the above operations are describe with examples and
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applications.
5 SAA/SNZ HB80:1996
TABLE OF CONTENTS
WHY BENCHMARK? ... .. .. .. .. ... ............. ... .. .. .. .. ... ... 7
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WHAT IS BENCHMARKING? ... .. .. .. .. ... ............. ... .. .. .. .. 9
TYPES OF BENCHMARKING ... .. .. .. .. . .. . ... ......... ... .. .. .. .. 12
Internal Benchmarking .. . .. .. .. .. ... . ... ... ...... ... .. .. .. .. ... 12
External Benchmarking . . . .. .. .. .. ... . ... ... ...... ... .. .. .. .. ... 13
Competitive ... .. .. . . .. ... ....... ... ... ... .. .. .. .. ... ...... 13
Functional . . . . . . . . . . . ... ......... ... . .. . .. .. .. .. ... ........ 13
Industry . . . . . . . . . . . . .. .......... ... ... .. .. .. .. ... ......... 13
Customer . . . . . . . . . . . ... ......... ... . .. . .. .. .. .. ... ........ 14
Supplier . . . . . . . . . . . . .. .......... ... ... .. .. .. .. ... ......... 14
Best Practice Benchmarking ... .. .. .. .. ... ... .......... ... .. .. .. . 14
Generic Benchmarking .. . .. .. .. .. ... . ... ... ...... ... .. .. .. .. ... 14
HOW TO BENCHMARK . . . . . . . . . . . . . . . . . . . . .. ..... ... .. .. .. .. ... . 15
Process Analysis . . . . . . . . . . . . . . . . . . . . . . . . .. . ... .. .. .. .. ... ..... 17
Define and Measure the Process ... .. .. .. .. . .. ............. ... .. .. 17
Selection of Benchmarking Partners ... .. .. .. .. ... ............. ... . 18
Benchmarking Process Data Collection ... .. .. .. .. ... ............. 19
Questionnaires ... .. .. .. .. ... ......... .. .. ... .. .. .. .. ... .... 19
Personal/Panel Interviews ... .. .. .. .. ... .. ........... ... .. .. .. 19
Site Tour/Study ... .. .. .. .. ... ........ .. ... ... .. .. .. .. ... ... 20
Other Methods . . . . . . . . . . . . . . . . . . . . . . . .. .. ... .. .. .. .. ... .... 20
Analysis of Results . . . . . . . . . . . . . . . . . . . . . . .. ... ... .. .. .. .. ... ... 20
Recalibrate Operations ... .. .. .. .. ... ..... .. ...... ... .. .. .. .. ... 21
REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
(PAGE 6 IN THE HARD COPY IS BLANK)
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HB 80:1996, Benchmarking Explained - A Guide
for Undertaking and Implementing Benchmarking
This is a free 6 page sample. Access the full version at http://infostore.saiglobal.com.
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