BENCHMARKING
“A CONTINUOUS PROCESS OF MEASURING OWN VITAL FACTORS AGAINST OWN PAST OR LEADERS OR COMPETITORS”
Benchmarking is the process of comparing
Benchmarking tools are simple or complex ratios (‘indicators’)
Indicators are made up of business results such as revenue, costs, added value, etc.
Issues: Identifying indicators, availability of data, comparisons at enterprise level vs. own past results or between enterprises.
Performance of wood furniture manufacturing in two different enterprises e.g.
how materials are purchased
how suppliers are paid
how inventories are managed
how employees are trained
how payrolls are processed
how fast new products get to the market
how quality is managed
KPI change in given industrial sector over time
Comparing performance of key industrial sectors in a region or country
Comparing performance of regions or countries
It is a critical technique for making organizational transformation easy
It requires a certain threshold of organizational willpower
companies unable to muster the willpower to compare themselves with its past and with the world's best cannot implement any quality approach
7 Indicators
Net Profit (Pre Tax)
Expenses Overall
Sales Revenue
Overall Added Value
Overall Added Value per Employee
Labor Ratio (Produce Plus)
OEE (Overall Equipment Efficiency, ProdPlus)
Formats
Radar Chart
Time series
Period
Averaged
Brief Summary Report
Detailed Summary Report
benchmarking demonstrates the requisite willpower or its absence
Benchmarking is the process of comparing
Benchmarking tools are simple or complex ratios (‘indicators’)
Indicators are made up of business results such as revenue, costs, added value, etc.
Issues: Identifying indicators, availability of data, comparisons at enterprise level vs. own past results or between enterprises.
Performance of wood furniture manufacturing in two different enterprises e.g.
how materials are purchased
how suppliers are paid
how inventories are managed
how employees are trained
how payrolls are processed
how fast new products get to the market
how quality is managed
KPI change in given industrial sector over time
Comparing performance of key industrial sectors in a region or country
Comparing performance of regions or countries
It is a critical technique for making organizational transformation easy
It requires a certain threshold of organizational willpower
companies unable to muster the willpower to compare themselves with its past and with the world's best cannot implement any quality approach
7 Indicators
Net Profit (Pre Tax)
Expenses Overall
Sales Revenue
Overall Added Value
Overall Added Value per Employee
Labor Ratio (Produce Plus)
OEE (Overall Equipment Efficiency, ProdPlus)
Formats
Radar Chart
Time series
Period
Averaged
Brief Summary Report
Detailed Summary Report
benchmarking demonstrates the requisite willpower or its absence
