ASSIGNMENT

Assignment



Assignment

Question 1: How a company could use benchmarking to measure themselves again their competitors?

Benchmarking is a process used to compare the performance with that of competitors. Practice benchmarking is to go in search of the best methods used in manufacturing, those that will enable the company to improve its performance. Benchmarking is a continuous process of evaluating our products, services and processes against those of most serious competitors or companies recognized as leaders (Andersen and Pettersen, 1996, 21-24).

The concept of benchmarking, the English benchmark, the terminal, the reference is widely practiced in the United States. It is of Japanese origin. It is based on the idea of changing the outside world and is to compare his company to one or more other companies identified as referring to a specific area. This comparison can be made with companies engaged in similar activity. Benchmarking is a way to determine how well a company performs (or unit thereof), compared to other companies (or units).

Traditionally, companies measured their performance and compared it with its own past performance. This was a very good indication of the improvement is achieved. However, although the company is improving, it is possible that other companies are getting better, so improve on previous years may not be enough. Benchmarking performance places the company in a broad context, and to determine best practices (Boxwell, 1994, 87-90).

The process for benchmarking includes four phases, which are:

Phase 1: Planning

This phase is to prepare research by defining what, who and how:

What should you look?

Who and what should we compare?

How to collect the data?

It is important to consider benchmarking as a process of discovery and analysis of best practices that will achieve the objectives

Phase 2: Analysis

The analysis involves a thorough knowledge of its own methods, a rigorous assessment of its strengths and weaknesses, and equally rigorous analysis methods and benchmarking partners. The answers will give the measure of the performance gap negative, positive or zero. This gap provides an objective basis for action: the gap or to capitalize on the advantage gained. This difference is calculated on a projection of the results, it is likely to change gradually as methods evolve. Benchmarking should be an ongoing process to ensure a constant reassessment of the goals.

Phase 3: Integration

Integration is the process that allows you to use the findings of the benchmarking survey for the setting of objectives. This requires careful planning to incorporate alternative methods to the functioning of the company. Integration is also to obtain the agreement of management and all staff. This requires communication at all levels and demonstrate the credibility and accuracy of the findings of the investigation.

Phase 4: Action

The findings of the benchmarking and operational principles set must be translated into practical applications that will be evaluated periodically to measure progress. The process of benchmarking means that companies are ready and willing to make public their measurements. This is usually done through a third party, which reflects the number of different organizations, and published without identifying the ...