Benchmarking is the process of comparing the current project, methods, or processes with the best practices and using the information gathered to drive improvement of overall company performance.
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These applications can be grouped into distinctive types such as the following:
Process benchmarking places emphasis on discrete work processes and operating systems which include customer complaint process, the billing process, or the strategic planning process. The aim of this form of benchmarking is to identify the most effective operating practices from many companies that perform similar work functions.
In this, managers are able to assess their positions in the competitive market through product and service comparisons. This form of benchmarking placed high emphasis on elements of price, technical quality, ancillary product or service features, speed, reliability, and other performance characteristics.
This form of benchmarking is easier than many other business processes, because of the opportunities for selecting outside of the group of direct competitors. Areas such as new product introduction, construction, or new services are activities common to many types of organizations. Even if the project objectives are different, the projects still share the same constraint factors of time, costs, resources, and performance. This type of benchmarking can be used in selecting new techniques for planning, scheduling, and controlling a project endeavor.
Strategic benchmarking is focused on examining how companies compete. This type of benchmarking isn’t always focused on specific industries. It cuts across industries with the goal of trying to identify the winning strategies that have enabled high-performing companies to be successful in their marketplaces.
Benchmarking activities most times follow the DIAMR sequence below:
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Adebayo is a thought leader in continuous process improvement and manufacturing excellence. He is a Certified Six Sigma Master Black Belt (CSSMBB) Professional and Management Systems Lead Auditor (ISO 9001, 45001, ISO 22000/FSSC 22000 etc.) with strong experience leading various continuous improvement initiative in top manufacturing organizations.
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