BENCHMARKING

Benchmarking

Introduction

Popularity of benchmarking has grown over the past five years. It can be used in various industries, including services and manufacturing (McNair Kathleen Leibfried 2002 22). Benchmarking process is more than just collect data on how well the company performs relative to others - is a method for identifying new ideas and new ways to improve processes and, ultimately, to better match customers' expectations.

Corporations use benchmarking as a tool to improve their strategic business processes and reengineering (Ross Joel 2005 12). According to Jeff Amen, benchmarking manager Sprint, the concept, to realize that the organization does and what its key components.

Benchmarking reasons and benefits

The company utilizes it for many reasons. The reasons can be broad (productivity) or specific (increase of individual design). Just looking outside itself, the company can identify breakthroughs in thinking.

Assesses the effectiveness of instruments

Benchmarking is defined as the process of identifying and exploring best practices in the world (Rainey Anthony 2007 44). By identifying best practices, organizations know where they stand in comparison with other companies. This is the perfect way to learn from more successful companies. Other companies may indicate areas of concern and provide possible solutions. When companies test they use for partners to share information and learn from each other. Benchmarking allows organizations to better understand their administrative activities and goal areas for improvement. In addition, benchmarking can eliminate waste and increase market share.

Continuous improvement tools

Benchmarking is growing in popularity as a tool for continuous improvement. Organizations that faithfully use benchmarking strategies achieve savings of 30 to 40 percent or more. Benchmarking establishes methods of measurement units of each area of production and costs. In addition, benchmarking supports the process of budgeting, strategic planning and capital planning. Because of the suffering of the automobile market in the early 1980's, Ford, needed to ...