Benchmarking: a signpost to excellence in quality and productivity
In the industrialized world, it is widely accepted that a free market leads to greater efficiency in terms of productivity and cost. But how can competition be introduced into situations where for example alternative suppliers cannot be used? Benchmarking provides an effective substitute for competition. Benchmarking
is a continuous, systematic process for comparing your own efficiency in terms of productivity, quality and practices with those companies and organizations
that represent excellence. It has been demonstrated to have a profound effect in numerous situations where conditions of a `planned economy' exist.
Benchmarking: A Signpost to Excellence in Quality and Productivity explains the concept of efficiency and how benchmarking can be utilized to improve performance. The authors identify three categories of benchmarking:
Internal: between units of an organization
External: between competitors
Functional: equivalent operations in different organizations
To set up your own project, the book provides a step-by-step guide through the
following essential stages:
Deciding what to benchmark
Identifying benchmarking partners
Gathering and analyzing information
Implementing for effect
This is a must have book for any organization embarking on the Benchmarking process.
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Aspects and Categories of Benchmarking
Implementation of Benchmarking
Decide What to Benchmark
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ABC analysis ability achieve activities Activity Based Costing aims analyze applied areas bar chart benchmarking method benchmarking process benchmarking project benchmarking study benchmarking team Best Demonstrated Practice businessmanship companies and organizations company's comparison competition competitors component contribution core business critical performance factors customer-perceived quality customer-perceived value customers databases delivery document efficiency elements of knowledge employees example excellence experience external Figure focus focussed functional benchmarking Goal management goals graph identify and understand IKEA implementation important industry internal benchmarking interview involved large number leadership development learning organization level of resolution make-or-buy analysis marginal utility measure non-comparable factors norm-related quality organization's performance-oriented personnel Peter Senge planned economy potential for improvement problem process of change profitability programmes project manager project team questions reports Sauger stage strategy structure successful behaviour suppliers telephone term Trabant underlying operative content units Value Chain video conference