WHY BENCHMARKING
In the present context, developing countries like India is facing major challenges of free & borderless global market. To remain in the rat race, it is necessary to outperform by innovations / value additions & manufacture required quality at competitive prices. Modernisation / Automation alone will not deliver quality products at competitive prices unless some standard levels of process performance, machinery / labour performance are achieved at each stage of manufacturing. Thus considering the importance of productivity & superior quality, one of the continuous improvement tools i.e Benchmarking methodology is applied. This methodology assists in ascertaining best practices amongst similar kind of industries. Furthermore the best practices are implemented for necessary performance improvements
WHAT IS BENCHMARKING
Benchmarking is a continuous / iterative process, which involves sharing of information inside & outside the organization. Its method of identifying best practices & their associated performances with an intention to facilitate process improvement resulting in superior performance & competitive edge in the market place. Benchmarking which is normally carried out within the same industry is a learning activity for improving key process performance. Thus one can say, the objective of the benchmarking is to search for best of best practices with an emphasis on how one can apply the benchmark data to the existing process to achieve
superior results.
STEPS INVOLVED IN BENCHMARKING
Normally Benchmarking Exercise consists of four phases, which involves:
● Planning
This involves identification of subject area & the criteria that will be used to assess success. After identifying potential benchmarking partners & making project plan, a common document format is created for exchange of information by developing communication strategies such as E-mails, phones etc. Then team members for benchmarking are appointed & finally for the purpose of the visits of the team members [If any], visit schedules & agenda are prepared.
● Data Collection & Information of Process to be Benchmarked
Prerequisites for data collection are to develop mutual understanding between benchmarking partners about the procedures & required formats to be prepared & to be followed. This is called as benchmarking protocol. Then data collection is to be carried out by chosen methods, for instance E-mails, phones etc. followed by schedule of questionnaires on agreed terminology & performance measures. After one to one meeting of team members, finally compile the findings to carry out necessary analysis.
● Data Analysis to determine Best of Best
For the ease of analysis & findings, preferred way of information is either in the form of spreadsheets or databases. Analysis can be done as per the convenience & simplicity i.e. by using charts, tables etc. Identify & seek explanation in the performance lacking areas by data comparisons & finally list the opportunities for performance improvement to determine the best.
● Implementation of Results & Monitoring / reviewing
After identifying the performance & non-performance areas & knowing what others are doing, the comparative benchmark data is used to improve the performance, keeping in mind the feasibility of the conditions that apply within the organization. Once these conditions are assessed, produce a report on benchmarking project in which recommendations & action plans for performance enhancement are included. Implement the said action plan in phase wise manner for the ease of monitoring & reviewing. Monitor the progress & record changes in performance by making progress reports from time to time, so that periodically re-consideration can be done with respect to those conditions that impact the performance relative to best practice. All these reports should be made available per person for reviewing.
BENEFITS OF BENCHMARKING
Organisations can make most out of the Benchmarking Exercise if it is properly planned, conducted & implemented. Benchmarking Exercise should be promoted as a learning culture. This exercise should be integrated with others tools & initiatives to reap rich benefits. This in turn will always encourage spreading of information on best practices. Benchmarking always makes the organization to change & learn the good of achieving competitive excellence. Striking example of this is Japan. Lessons to be learnt from Japanese, as they are world leaders in Benchmarking Exercise. They attribute their success largely to dantatsu which means, strive to become best of best.
Comments