L20 Bench Marking

Benchmarking is …… “Benchmarking is the practice of being humble enough to admit that someone else is better at something and being wise enough to learn how to match and even surpass them” Benchmark is a “Standard used as test” “Used to compare one’s performance against , best in class-achievement” e.g. in production department Continuous Improveme nt 10/17/08

 Re-engineering  [email protected]; VIM Pune

Benchmarkin g 1

Benchmarking usually follows the path.. Comparing financial performanc Comparing e with past Financial data of the Performanc Company- e with competitor ROI s performanc e ROI, ROA

10/17/08

Comparing Performance with Best Performance Achievers in benchmarkin the Industry g with own best More processes, detailed with best analysisTime, Cost, practices in the industry Quality

[email protected]; VIM Pune

2

Benchmarking- Process 1. Select an area/activity to apply benchmark 2. Define/Identify the processes to benchmark 3. Identify the benchmarks (Partners) 4. Determine the GAP 5. Set revised targets based on GAP 6. Communicate the benchmarking process to teams 7. Implement changes 8. Evaluate the improvements

10/17/08

[email protected]; VIM Pune

3

Benchmarking- Significance 1. Leads to excellence through improvement, initiates healthy competition. 2. Going out of organization’s framework in search of better ideas. 3. Initiates learning process in the organization, for finding & adapting to new ideas. 4. Better understanding of one’s own programs at first. 5. Better , ambitious but attainable goals can be set & pursued. 6. Gives reference point for performance measurement (added meaning to performance). 7. Removes complacency (self satisfying attitude). Evokes the urgency of purpose and achievement. 10/17/08

[email protected]; VIM Pune

4

Benchmarking- Points to note 1. It can be quantitative as well as qualitative. 2. As it is application of “Benchmark” is not advisable some kind of molding is needed. 3. Take care that it may not lead to worst case situation.(disbelief, denial & despair) 4. Acquisition and ownership of data & information is required. 5. It is a continuous process. 6. Note the aim is not reinvent the wheel, but at the same time it should not become a copy cat. 7. Fear of sharing of information especially competitive advantage is always there. 8. Arrogance & over confidence is of no use. 10/17/08

[email protected]; VIM Pune

5

Thanks…..

10/17/08

[email protected]; VIM Pune

6