Benchmarking Benchmarking PRESENTED BY Pankaj kumar Tomar WHAT IS BENCHMARKING

							  Benchmarking

  PRESENTED BY


Pankaj kumar Tomar
     WHAT IS BENCHMARKING?
Benchmarking is the continuous, Systematic process
of measuring one’s output and or work processes
against the toughest competitors or those recognized
best in the Industry.


Benchmarking is a process of measuring and comparing
an organization's business process against leaders
anywhere in the world, to gain information which will
help the organisation to improve its performance.
WHY BEST PRACTICE
   Best practice refers to techniques, methods or processes
    that are more effective at delivering a desired outcome.


   Incorporating best practice into your organization can
    lead to greater efficiency and effectiveness and a happier
    customer.
EVOLUTION OF BENCH MARKING



                                                   5th Generation
                                                Global Bench marking
                                             4th Generation
                                        Strategic Bench marking
         Sophistication




                                      3rd Generation
                                  Process Bench marking
                                 2nd Generation
                             Competitive Bench marking
                             1st Generation
                          Reverse Engineering

                                                               Time
BENCHMARKING PROCESS

4 questions

   What should we benchmark?
   Whom should we benchmark?
   How do we perform the process?
   How do they perform the process?
BENCHMARKING PROCESS

BM must for Key Business Processes
 (KBPs)

   Product development
   Customer Service
   Inventory Control
   Research & Development etc
BENCHMARKING PROCESS

BM must for Critical Success Factors
 (CSFs)

   Cost Management
   Product Quality
   Product Design
   Organisation Image etc
BENCHMARKING PROCESS
5 STAGES OF BENCHMARKING




      Decide    Identify   Gather
      What to   BM         info     Analyse   Implement
       BM       Partners
APPROACHES TO BENCHMARKING
   Internal & External Benchmarking
   Performance or Competitive Benchmarking
   Functional and Generic Benchmarking
   Strategic Benchmarking
   Process Benchmarking
   International Bench marking
INTERNAL BENCHMARKING

   Establishing good practice organisation
   Comparison of similar functions in different
    operating units within the organisation
Example:
    Tata Corus Steel’s Colliery divisions benchmarking their
    maintenance practices with that of the Maintenance
    division inside the Steel Works at various other unit.
EXTERNAL BENCHMARKING

   Comparison of organisation functions and   key
    processes against
   Good Practice Organisation


Example:
Search for improvement or breakthrough
  Opportunities in business processes
PERFORMANCE OR COMPETITIVE
BENCHMARKING

Organizations using performance measures to
compare themselves against similar organizations

Example

FMCG’s comparing with each other for
Market share, Retention rates, profits, costs
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

    Involves organizations that are not direct competitors
     but share similar organisational practices and
     procedures


Example :
   An insurance company may Benchmark a bank loan
    application process against its insurance claims process.
STRATEGIC BENCHMARKING


Used where organizations seek to improve their overall
  performance by focusing on specific strategies.

Example

Benchmarking against organizations which have
won awards or some other distinctions
PROCESS BENCHMARKING

Focus on improving specific critical processes and
  operations.


Examples
in hotels—housekeeping, customer care,
INTERNATIONAL BENCHMARKING
   Best practitioners are identified and analysed
    elsewhere in the world.
   The aim is to achieve world class status or simply
    because there are insufficient "national" businesses
    against which to benchmark.
BENEFITS OF BENCHMARKING
   Benchmarking helps identify the gaps between the
    organization that is undertaking the benchmarking
    assessment and best practice.
   Undertaking benchmarking can lead to improvements
    being incorporated into processes and systems delivering
    gains in efficiency and effectiveness
   Benchmarking can help align improvement activity with
    strategic goals and objectives
PROBLEMS WITH BENCHMARKING
   Problems with benchmarking occur where
     Data is not obtained for the process being measured –
      and analysis becomes subjective
     No peer group/best practice identified (including data
      available)
     The gap between current state and best practice is
      captured but nothing is done about it
     Assumed best practice isn't best practice
     Benchmarking happens as a one off event and not
      reviewed periodically
CONCLUSION
THANK YOU
QUESTIONS