Welcome

To

Presentation
on
Benchmarking
For
Employees of
BTPS
1

Benchmarking
process for achieving superior performance in
any critical area of work become more effective
by comparing with best in class
Benchmarking determines why a best
company is best, processes they use, targets for
improvement and steps for implementing
change

Benchmarking
helps learn about innovations or best
practices
leads to significant improvements in cost,
quality, cycle time and competitive ability
benchmark can include any skill,
behaviour or process that sets a standards
of excellence against which performance
can be compared and judged
3

Benchmarking
Finding work groups that are best at what
they do and modeling that behaviour
follows PDCA cycle
Plan
what, why,who & where, when and how

Do
collect information
compare
determine gap
set goals
action plans

Benchmarking
Check
monitor progress and improvement
Act
improve established benchmark using
quality improvement process
Followed by

Benchmarking
Identify benchmarking topic
reducing costs
increasing revenue

benchmarking can evaluate any process

that affects these
indicators must be available, objective,
collected reliably and easily compared
6

Benchmarking
Identify best people or company to
benchmark
direct or potential competitors
non-competitors
groups within company
need 5 - 7 diverse companies

How and when to benchmark

publications
conferences and seminars
7

Benchmarking
interviews with customers, suppliers,
distributors, competitors, industry experts, exemployees
market research
reverse engineering of customer products
formal survey to identify ingredients of success
face-to-face interviews
compare results and processes

Benchmarking
Collect information in benchmarking,
from companies and own work group
contrastive analysis indicates gap
between present and desired states
set goals for improvements
detailed action plans

Benchmarking
Monitor progress and observable
improvements
use quality indicators
focus on characteristics of inputs, outputs
and processes
Constantly improve established
benchmark using quality improvement
process
10

Benchmarking
Identifying and selecting benchmarking topics
brainstorm list of key customers (5-7)
for each customer brainstorm a list of products
provided by your group
for each product or service, list processes used
to deliver
brainstorm potential benchmarking topics with
list of customers, products and processes
11

Benchmarking
make brainstormed topics more specific
who, why, what, when, how
use term definition matrix to define each of
words in benchmarking topic
identify measurements to be used in
evaluating benchmark

12

Benchmarking
Who to benchmark against
other groups within company
inexpensive
easy access

other groups in non-competing companies

broader slice of knowledge
groups in competing companies
industry periodicals, public documents,
reverse engineering
13

Benchmarking
what is best in field
calculate gap between where are we and
where want to be
gap = 1 - (pos/benchmark)
How do we do it
flowchart of process
customers and their requirements
who owns process
14

Benchmarking
How do they do it
be honest and open about information requesting
select method for collecting data

identify benchmarking partners and get

permission to work together
establish dates and times for gathering data
develop questionnaire and pilot it
(apply 5W&1H)
15

Benchmarking

initiate data collection

set date for sharing analysis
begin implementing key findings
Need top management support

16

BENCHMARKING
Comparison of business
processes, not only
performance measures

Gives opportunity
to learn from other
organisations

Benchmarking
Benchmarking is
isaa technique
technique of
of identifying,
identifying,
understanding
understandingand
andadapting
adaptingor
oradopting
adoptingsuperior
superior
practices
practicesfrom
fromorganisations
organisationsanywhere
anywherein
in the
theworld
world
to
toimprove
improvebusiness
businessperformance.
performance.

A structured
improvement tool

Creates
win-win situation

17