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Benchmarking

By-Kshitij Mohan Chitranshi Roll No.- 07

. How? • Dimensions typically measured: -Quality -Time -Cost Why? • 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.??? What? • Process of comparing one's business processes and performance metrics to industry bests and/or best practices from other industries.

it must become an ongoing. . (2) Analyze the business processes of others. • Note: Benchmarking should not be considered a one-off exercise. integral part of an ongoing improvement process with the goal of keeping abreast of ever-improving best practice. (4) Implement the steps necessary to close the performance gap.Procedure Application of benchmarking involves four key steps: (1) Understand in detail existing business processes. To be effective. (3) Compare own business performance with that of others analyzed.

• Process Benchmarking -Focuses on improving specific critical processes and operations.Types of Benchmarking • Strategic Benchmarking -To improve overall performance.(Companies or organization having similar characteristics or similar work) . • Performance or Competitive Benchmarking -Position in relation to performance characteristics of key products and services.

• Functional Benchmarking -Find ways of improving similar functions or work processes. • External Benchmarking -Provides opportunities of learning from those who are at the "leading edge". • Internal Benchmarking -Involves benchmarking businesses or operations from within the same organization. • International Benchmarking -Best practitioners are identified and analzsed elsewhere in the world .

Aids change & improvement. . Overall industry improvement.Advantages • • • • • Learn from others experience & practices. Implementation / changes more likely. Allows examination of present processes.

Disadvantages • What is best for someone else may not suit you. • Reluctance to share information. • Incorrect comparisons. . • Poorly defined benchmarks may lead to wasted effort and meaningless results.

Thank You .