Friday, January 11, 2019

Benchmarking process

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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