Benchmarking

BENCHMARKING

Benchmarking involves a structured comparison between similar products, services or processes on some dimensions of performance. For example it can be used to compare the availability and delivery of features in a product and in this form often provides the basis of consumer tests and reviews. These look at products and services and provide recommendations based on which is best or some form of ranking amongst competitors. It is particularly useful when comparing not only performance but also practice – in other words what do the different organizations do to enable that performance to be delivered? And applied in this way it is a powerful tool in process innovation sin e studying how the ‘best’ achieve their performance can provide powerful clues for changing the way processes operate. Process benchmarking of this kind can operate at several levels:

• Between similar processes in the same factory or service branch
• Between different factories or service branches
• Between different competing organizations
• Between different sectors using the same process

A good example of this was the Automobile Industry Benchmarking Study at the heart of a long-running programme organized by MIT with other academic partners around the world called ‘The future of the automobile’. This programme was co-funded by most of the major auto industry players and explored a variety of aspects of the industry including product design and innovation, service delivery, retailing and supply chain management. Its results appeared in many books and articles and over a sustained period of time provided a powerful stimulus for change in the industry. The benchmarking study was the most influential, giving birth to the concept of ‘lean’ thinking which revolutionized first car making and then other manufacturing before diffusing into services and the public sector. Comparision of different cars shown below:

Submitted By,

Yellendula Hari Krishna,

Date: 20/06/2022