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Bench Marking

Bench Marking

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Published by: 256-693 on Oct 02, 2011
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12/30/2011

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 Report produced for the EC funded project 
 INNOREGIO: dissemination of innovation management and knowledge techniques
by
Dr Vassilis Kelessidis
Thessaloniki Technology Park
J
ANUARY
2000
BBB
EEENNNCCCHHHMMMAAARRRKKKIIINNNGGG
 
B
ENCHMARKING
I
NNO
R
EGIO
project
Dr V. Kelessidis
Contents
1.D
ESCRIPTION
.....................................................................................................2
1.1.W
HAT IS THE TECHNIQUE
.............................................................................21.2.O
BJECTIVES OF THE
T
ECHNIQUE
...................................................................21.3.D
ESCRIPTION OF THE TECHNIQUE
 / M
ETHODOLOGY
 / A
LTERNATIVES
............31.4.E
XPECTED RESULTS
 / 
BENEFITS
 / 
PITFALLS
...................................................41.5.C
HARACTERISTICS OF FIRMS
 / 
ORGANIZATIONS
 / 
SERVICE PROVIDERS
...........6
2.A
PPLICATION
.....................................................................................................8
2.1.F
IRMS
 / O
RGANIZATIONS WHERE THE TECHNIQUE HAS BEEN APPLIED
............82.2.T
YPES OF FIRMS
 / 
ORGANIZATIONS CONCERNED
............................................82.3.I
MPLEMENTATION COST
&
TIME FRAME
........................................................92.4.C
ONDITIONS FOR IMPLEMENTATION
...........................................................122.5.E
UROPEAN ORGANIZATIONS SUPPORTING IMPLEMENTATION
.......................12
3.I
MPLEMENTATION
P
ROCEDURE
.......................................................................16
3.1.S
TEPS
 / P
HASES
.........................................................................................163.2.P
ARTIAL TECHNIQUES AND TOOLS PER STEP
................................................183.3.R
ELATED SOFTWARE
.................................................................................20
4.B
IBLIOGRAPHY
................................................................................................225.A
NNEX
.............................................................................................................24
5.1.G
UIDELINES FOR
B
ENCHMARKING
C
ONTACTS
............................................245.2.C
ODE OF
C
ONDUCT
....................................................................................265.3.B
ENCHMARKING
T
ERMS
............................................................................27
 
B
ENCHMARKING
I
NNO
R
EGIO
project Dr V. Kelessidis2
1D
ESCRIPTION
1.1What is the technique
Benchmarking is the process of improving performance by continuously identifying,understanding, and adapting outstanding practices and processes found inside and outsidean organization (company, public organization, University, College, etc.).It was pioneered by Xerox Corporation in the 1979s, as part of their response tointernational competition in the photocopier market, and originated from reverseengineering of competitors' products. Its scope was then enlarged to include businessservices and processes. Xerox now benchmarks nearly 240 performance elementsalthough, when they started benchmarking several years ago, considerably fewerelements were benchmarked.Benchmarking of business processes is usually done with top performing companies inother industry sectors. This is feasible because many business processes are essentiallythe same from sector to sector.Benchmarking focuses on the improvement of any given business process by exploiting"best practices" rather than merely measuring the best performance. Best practices are thecause of best performance. Companies studying best practices have the greatestopportunity for gaining a strategic, operational, and financial advantage.The systematic discipline of benchmarking is focused on identifying, studying, analysing,and adapting best practices and implementing the results. To consistently get the mostvalue from the benchmarking process, senior management may discover the need for asignificant culture change. That change, however, unleashes benchmarking’s fullpotential to generate large paybacks and strategic advantage.The benchmarking process involves comparing one’s firm performance on a set of measurable parameters of strategic importance against that of firms’ known to haveachieved best performance on those indicators. Development of benchmarks is aniterative and ongoing process that is likely to involve sharing information with otherorganizations working with them towards an agreeable metrology.Benchmarking should be looked upon as a tool for improvement within a wider scope of customer focused improvement activities and should be driven by customer and internalorganization needs. Benchmarking is the practice of being humble enough to admit thatsomeone else is better at something and wise enough to learn how to match and evensurpass them at it.
1.2
 
Objectives of the Technique
Benchmarking entails gathering information from one organization to beneficially applyit to another organization. The scope is to improve the processes performed at therecipient organization by applying efficient work processes (work done by people,equipment and information systems). It is a valuable Business Engineering Techniqueand its application not only identifies innovative work processes but also involvesdiscovering the thinking behind innovation.

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