Benchmarking is a process for obtaining a measure – a benchmark. Simply
stated, benchmarks are the “what,” and benchmarking is the “how.” But
benchmarking is not a quick or simple process tool. Before undertaking a
benchmarking opportunity, it is important to have a thorough understanding of
the company’s guidelines. Some companies have strict guidelines as to what
information can be gathered, and whom practitioners can contact to get that
information. Depending on the size of the company, practitioners may be
surprised at what is readily available in-house.
Benchmarking is not just a matter of making inquiries to other companies
or touring and documenting another company’s facilities or processes. When
making use of benchmarking, a company should not limit the scope to its own
industry, nor should benchmarking be a one-time event.
Benchmarking Versus Competitor
Research
While competitor research is neither a better nor a worse practice than
benchmarking, the important thing is to understand that there is a difference
between the two. Available time and resources will help decide which tool will
add the most value. The following table represents experience in dealing with
the two practices:
Steps Involved in Benchmarking
It is important that Six Sigma practitioners have a thorough understanding
of their own company’s guidelines before undertaking a benchmarking
opportunity. The following is a list of the vital few steps involved in
benchmarking. These steps should be tailored based on company policies,
resource availability and the project or process one is dealing with:
1.
Understand the company’s current process performance gaps. This will help decide what needs benchmarking.
2.
Obtain support and approval from the executive leadership team. That approval and support will assist with eliminating roadblocks,
providing adequate resources and expediting the benchmark-gathering process.
3.
Document benchmarking objectives and scope. This is a
necessity for any project.
4.
Document the current process. Without up-to-date knowledge of
the current process:
a. Time and resources can
be wasted collecting process documentation and data that already exists.
5. Agree on the primary metrics. Benchmarking
measurements are used as the basis of many comparisons:
a.
To determine the gap between current performance and that of partner
organizations.
6. The metrics should be put in writing. In particular:
a.
What is being measured
7.
Agree on what to benchmark. Everyone must be in agreement
on what to benchmark prior to any benchmark gathering initiative in order to:
a. Understand gaps of low
performers.
8.
Develop a data collection plan.
9.
Identify research sources and initiate data gathering.
10.
Design a screening survey to assist with partner selection. Characteristics of the survey are important:
a. Crisp focus on indicators
of excellence
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