Benchmarking

Presented by Group 4
1. Kagalkar Utkarsh.122
2. Kamble Amit.123
3. Kangutkar Swapnil..124
4. Kansara Jatin...125
5. Kokate Suhas127
INDEX
Benchmarking

Importance / Benefits

Types of benchmarking

Benchmarking process

Cost of benchmarking

Benchmarking tools

Common challenges in benchmarking

BPIR in benchmarking

conclusion


Benchmarking
Benchmarking is a systematic process for identifying and implementing best or better practices.

Benchmarking is the process of comparing one's business processes and performance metrics to industry bests or best
practices from other companies.

Dimensions typically measured are quality, time and cost.

In the process of best practice benchmarking, management identifies the best firms in their industry, or in another
industry where similar processes exist, and compares the results and processes of those studied (the "targets") to one's
own results and processes.

In this way, they learn how well the targets perform and, more importantly, the business processes that explain why
these firms are successful.

Large and highly successful organizations use best practice benchmarking as a tool to continually learn and improve.
Here resources needed to carry out repeated best practice benchmarking projects properly and in a way that maximizes
the learning.

Many organizations (large and small) may not have necessary resources to undertake best practice benchmarking.
BPIR website has been designed to assist in every step of a benchmarking process.

Many organizations follows comparative or competitor benchmarking in which organization must know main
competitors product price to stay in business.
Importance of Benchmarking
companies use benchmarking as a point of reference
companies use benchmark as a way to help become more competitive
By looking at how other companies are doing, company can identify areas where they are underperforming.
Companies are also able to identify ways that can improve their own operations without having to recreate the wheel.
They are able to accelerate the process of change because they have models from other companies in their industry to
help guide their changes.
comparing key metrics of their operations to other similar companies
companies use benchmark reports as a dashboard to quickly determine the health of the business by examining key
matrices revenue, expenses, production amounts, employee productivity, etc.
Benchmarking occurs across all types of companies (including private, public, profit, non-profit) as well as industries
(e.g. technology, education, manufacturing)
Many companies have positions or offices in the company that are in charge of benchmarking. Some of the positions
include:

Institutional researcher

Information officer

Data Analyst

Consultant

Business analyst

Market researcher
Benchmarking Benefits
Benchmarking enables an organization to learn from the outside, and to develop relevant measures
and implement company-specific solutions. On principle, a company may benefit directly as well as
indirectly.

Direct Benefits of Benchmarking

The company is analyzed.
The companies or sections of companies are compared.
Best practices are defined.
Performance deficits are identified.
Alternative solutions are evaluated.


Indirect Benefits of Benchmarking

Promote an understanding of the own business processes.
Question the objectives of the company.
Verify the corporate strategy.
Strengthen the competitive position.
Initiate the process of continuous improvement (KAIZEN).
Types of Benchmarking
Benchmarking Process
Cost of Benchmarking
The three main types of costs in benchmarking are:

Visit Costs : 1)Travel cost
2) Hotel room ,meals etc

Time Costs -1) Investing time in research
2) Finding companies fro comparison
Benchmarking Database Costs -1) database creating cost
2) maintaining cost
The cost of benchmarking can substantially be reduced through
utilizing the many internet resources that have sprung up over
the last few years. These aim to capture benchmarks and best
practices from organizations, business sectors and countries to
make the benchmarking process much quicker and cheaper.

Benchmarking tools
Benchmarking software:1)organise,Analize & compare
complex amount of information
2) Use of software can help to reduce the costs
Ex: Zendesk Benchmark: data-driven reporting tools
that make it easy to measure and improve your
customer satisfaction

Common challenges in Benchmarking
A few difficulties involved in benchmarking :

finding suitable partners
difficulties in comparing data (50% of organisations found this)
resource constraints (time, finance and expertise)
staff resistance

In a survey of UK organizations findings indicated that among some of those
involved in benchmarking there were difficulties encountered during the
process.

The main reasons given by respondents for not being involved in
benchmarking at all were:
ignorance
resource constraints
data comparability
too small to gain
not appropriate

BPIR in Benchmarking
Business performance improvement Resource
(www.bpir.com)

A membership with BPIR assures you with the following benefits:-
1) simplifies the whole process of benchmarking .

2) Organizations whether small or large can benefit from this
powerful technique of "learning from the experience of others".

3) Real Life case studies of organizations around the world.

4) Directly shares good ideas from leading organizations through
the hundreds of case studies provided

Conclusion
The process of benchmarking will help :
1) Improve own performance
2) Improve performance of colleagues
3) Improve organizations business process