Topics: Management, Process management, Business process Pages: 19 (2969 words) Published: June 18, 2013
E&S Tucson - November 1999

Benchmarking from A to Z
Using Benchmarking to Achieve Improved Process Performance

Kay Kendall Director, Quality and Six Sigma

E&S Tucson - November 1999

from Webster’s Collegiate Dictionary

Benchmark (n.)
• a mark on a permanent object indicating elevation and serving as a reference in topographical surveys and tidal observations • a point of reference from which measurements may be made • something that serves as a standard by which others may be measured

E&S Tucson - November 1999

• • • • • • • • • Why Benchmark? Selecting Targets Terminology Cost/Benefit Analysis Keys to Successful Benchmarking The Benchmarking Process Tools of Benchmarking Identifying Candidate Partners The Site Visit and Beyond

E&S Tucson - November 1999

Why Benchmark?
+ + + + + + + Identify opportunities Set realistic but aggressive goals Challenge internal paradigms on what is possible Understand methods for improved processes Uncover strengths within your organization Learn from the leaders’ experiences Better prioritize and allocate resources Performance Improvement

E&S Tucson - November 1999

Comparing Scenarios
DEFINING CUSTOMER REQUIREMENTS ESTABLISHING EFFECTIVE GOALS DEVELOPING TRUE MEASURES OF PRODUCTIVITY BECOMING COMPETITIVE Without Benchmarking • Based on history/gut feel • Acting on perception • • • • • Lack external focus Reactive Lagging industry Pursuing pet projects Strengths and weaknesses not understood • Internally focused • Evolutionary change • Low commitment • • • • • • • With Benchmarking Based on market reality Acting on objective evaluation Credible, customer-focused Proactive Industry leadership Solving real problems Performance outputs known, based on best in class

INDUSTRY PRACTICES • Not invented here • Few solutions • Continuous improvement

• Understand the competition • Revolutionary ideas with proven performance • High commitment • Proactive search for change • Many options • Breakthroughs

E&S Tucson - November 1999

Selecting Benchmarking Targets

Do It! (already!)
Impact of Performance Improvement

Benchmarking Targets

Back Burner

Don’t Do It!



Current Difficulty in Achieving Needed Performance Improvement


E&S Tucson - November 1999

Evaluating Targets
• • Is this process important to our customers? Would improvements in this process support our business goals and objectives? Is the process owner committed to making changes in this process? (Do we know who the process owner is?)

E&S Tucson - November 1999

Types of Benchmarking • Internal
– Comparisons between yourself and similar operations within your own organization

• Competitive
– Comparisons among competitors for a specific product

• Functional
– Comparisons to similar functions within the same industry

• Generic
– Comparisons of processes independent of industry or overall functions

E&S Tucson - November 1999

• The latest approach to benchmarking • Continuous monitoring of specific process performance with a select group of benchmarking partners 1st Benchmarking project
Your performance Partner’s performance

Performance measure

2nd Benchmarking project


E&S Tucson - November 1999

Cost/Benefits Analysis
• Costs Costs associated with conducting a benchmarking study: – Direct labor for team members – Data gathering/data analysis – Research to identify potential benchmarking partners – Publication and distribution of final report

• Improving processes critical to our business - Enhanced customer satisfaction - Cost reduction - Cycle time reduction - Enhanced employee satisfaction Establishing market-driven goals Gaining professional development and personal enthusiasm from seeing "the best" in action Identifying additional opportunities for improvement beyond the scope of the benchmarking project Establishing professional...
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