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Quality Management Benchmarking Chapter 10. Achieving Organizational Success. Benchmarking. Benchmarking

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benchmarking
Benchmarking
  • Benchmarking
    • During the benchmarking process, a company compares its performance against a set of standards or against the performance of a best-in-class company. With the information provided by the comparison, a company can determine how to improve.
benchmarking4
Benchmarking
  • What is benchmarking?
    • It is a tool that will:
      • Compare and measure your business performance against world class companies.
      • Highlight areas where your business performance is sub-optimal.
      • Highlight worldwide best practices that lead to superior performance.
      • Help to continuously improve your performance.
      • Introduce new ideas.
benchmarking5
Benchmarking
  • What are the major benefits of benchmarking?
    • Identifies opportunities for improvement
    • Motivates action by external example of excellence
    • Clarifies current status
    • Stimulates change
    • Identifies strengths and assets
    • Provides an urgency for change
    • Uncovers new ways of improving processes
    • Promotes improvement
benchmarking6
Benchmarking
  • What are the different standards for comparison?
  • AWARDS/CERTIFICATIONS
    • Malcolm Baldrige National Quality Award
    • ISO 9000 – qualitydigest.com
    • Deming Prize
    • Supplier Certification Requirements
    • Best-in-field organizations
benchmarking7
Benchmarking
  • What are the other standards for comparison?
  • Public (free) studies
    • Industry Week Magazine
    • The BenchMark Exchange
      • www.benchnet.com -you have to contribute
benchmarking8
Benchmarking
  • What are the other standards for comparison?
  • Private (pay-to-see) studies
    • Example: mpi-group.net
      • MPI’s U.S. Benchmarking Toolkit for one year for $995
    • Many many others…
benchmarking9
Benchmarking
  • How is benchmarking done?
    • Determine the focus
    • Understand your organization
    • Determine what to measure
    • Determine whom or what to benchmark against
    • Benchmark
    • Improve Performance!