BENCHMARKING

AZARRAGA | DALUMPINIZ | ESGUERRA | VILLARAZA

It is a collection of linked tasks A set of activities and tasks
which find their end in the that once completed
delivery of a service or will accomplish an
product to a client organizational goal.

The process must involve

clearly defined inputs and
a single output
 KEYS TO HAVE A WELL-DEFINED
BUSINESS PROCESS

Set approvals to Standardize a

Improve ensure set of procedures
accountability to complete tasks
efficiency
and an optimum that really matter
use of resources to your business
Streamline
Identify what communication Keep chaos from
tasks are between people, creeping into
important to functions your day-to-day
your larger departments operations
business goals
 7 STEPS
OF BUSINESS Define your goals
What is the purpose of the process? Why was it created?

PROCESS Plan and map your process

What are the strategies needed to achieve these
goals?

Set actions and stakeholders

Repeat
Identify the individual tasks of your teams and
If the process achieve the goals the machines needed to execute the plan.
set for it, replicate it for future STEPS
processes. Test the process
Run the process on the small scale to see
Monitor the results how it performs. Observe any gaps and adjust.
Review the process and analyze its
patterns. Better to document the process Implement the process
history. Start running the process in a live environment. Properly
communicate and train all the stakeholders.
BENCHMARKING
It is a process of comparison of two or
01 more products, services, processes or
organizational practices.

It is a basis for establishing rational

performance goals through the search
02 for industry's best practices that will
lead to superior performance.

The point of benchmarking is to

03 identify internal opportunities for
improvement.
 TRIGGERS FOR
BENCHMARKING

PROBLEM PROCESS
BASED BASED
Arises out of the organizations Part of process improvement
problem strategy of an organization.

✓ Adverse feedback from customer

✓ Increasing quality cost
✓ Defined mission
✓ Alarming error Rates ✓ Defined objectives
✓ Increasing cycle time ✓ Defined priorities
REASONS FOR BENCHMARKING

Efficient way Speeds up organization’s Compare business

to make ability to make practices with those of
improvements improvements world class organizations

Change the perspect Create improved goals Challenge

ive of executives and and practices for the current practices
managers. organization and processes
 10 TYPES OF
BENCHMARKING
 It’s where we go beyond
performance measures and
compare how business FINANCIAL
processes are performed. BENCHMARKING
1

2 Performing a financial analysis

PROCESS
and comparing the results to
BENCHMARKING assess your overall
competitiveness.
Allows the initiator firm to assess their
competitive position by comparing
products and services with
those of target firms. PRODUCT
3 BENCHMARKING

PERFORMANCE
4 The process of designing new
products or upgrades to
BENCHMARKING
current ones to find
strengths and weaknesses.
 Comparison of strategic decisions
and dispositions at a higher level. It
involves observing how others compete
FUNCTIONAL
BENCHMARKING
5

6
STRATEGIC Comparison against organizations
BENCHMARKING that are not necessarily competitors,
but that performs related tasks within
the same technological area.
Comparison against within the
same class or benchmarking
COMPETITIVE
within your own class.
7 BENCHMARKING

8 Comparison against best

INTERNAL
direct competitors or
BENCHMARKING
Benchmarking against
someone in parallel class
 Seeking outside organizations
that are known to be best in class.
INTERNATIONAL
BENCHMARKING
9

EXTERNAL
10 Used where partners are sought
BENCHMARKING from other countries because
best practitioners are located
elsewhere in the world.
 IDENTIFYING
PROCESS TO BENCHMARK
❑ Benchmarking is quantitative and qualitative and
involves both competitor comparison and
exploration outside your industry. However,
benchmarking is not a silver bullet; it must be
managed correctly and methodically to be
successful.
 IDENTIFYING
PROCESS TO BENCHMARK

Step One: Step Two: Step Three:

Select the Determine Determine

process and current perfor where performance
build support mance. should be.
 IDENTIFYING
PROCESS TO BENCHMARK

Step Four: Step Five: Step Six and Beyond:

Determine the Design an Continuously
performance action plan. improve
gap.
 BENCHMARKING
PARTNERS
Benchmark partners are usually those that
are perceived to be the best performers in their
class. The purpose of benchmarking is to
identify and adopt best known practices that
can lead to superior performance.
TYPES OF BECHMARKING PARTNERS

01 02 03 04
INTERNAL COMPETITIVE FUNCTIONAL GENERIC

which pertains to which pertains which pertains to which pertains to

departments, factorie to direct compe best-in-class organizati leading organiza
s, etc. of the same co titors; ons who are in tions from various
mpany; the same field or fields and
activities industries
 BENCHMARKING
PROCESS

The composition and structure

of the project improvement
team is instrumental to its
success.

The team assembled must be

Selection of a knowledgeable about process
Process and diverse in their
A well written description of
Improvement team thinking styles.
any project makes it possible
for the audience to understand
the context of the proposed
Prepare a project and realize whether to
Project approve and finance the project
Description or not.
 BENCHMARKING
PROCESS

As the main purpose for

conducting a benchmarking
study is to learn best
practices from top Adopt a Suitable Use a process model, e.g.
performing organizations, Benchmarking PDCA Cycle.
the identification and Model
selection process of the
Identification of ideal benchmarking
Benchmarking partners is a critical factor
Partners for the success of the study.

Carry out Continuous implementation

Benchmarking of benchmarking.
 WHY DOES
BENCHMARKING FAIL?
Lack of commitment

Wrong selection of process

Wrong selection of team members

Not being cost effective

Lack of involvement of management
END