hi seniors, i need some help regarding the examples of comapnies which are using different types of benchmarking techniques, kindly help me and reply to the thread. thanks pragya
From India, Pune
Hi Pragya,

Am not sure of the industry in which your operates as these differ from the industries to industries and from your profile – we understand that you are a Management Student.

Benchmarking is a process to test/evaluate their process compared to the Industry standards.

For example, my company manufactures X product and we assess the same in terms of the cost, capacity utilization , manpower utilization etc with the best company in the same segment which throws light as how & where we need to improve upon or do we have the cost competitive advantage etc, if not phase it out.

It’s easier said than done and it involves survey , focus group discussions and most importantly number crunching.

Also, we do for the delivery of the products to customers, response time to the customer’s projects etc.

Hope this helps you.



From India, Pune
Hello Pragya,

I am not sure what exactly you are looking for companies or benchmark techniques. Either you are interested in companies or in techniques what is true objkective.

I believe you are interested in comprehensive information on benchmerking and how it is being conducted. We are in middle conducting such practices particularly oil and gas companies. I am not sure about in India because its very expensive and out side global professional consulting companies are engaged into this because no industry so easily offer access to their procss and benchmark prectices because there is secrecy agrements amonng participant companies not to disclose data and imfprmation which is more crucial. This is very tedious job and it take minimum six months to oen year to complete if we desire perfect results not manipulations.

Lets have detail information as below:

Benchmarking is systematic tool that allows a company to determine whether its performance of organizational process and activities represent the best practices.
Benchmarking practices models are useful to determining how well a business unit, division, organization or corporation is performing compared with other similar organizations. A benchmark is a point of reference for a measurement. The term benchmark presumably originated from practices of making dimensional height measurements of an object on a workbench using a gradual scale or similar tool, and using the surface of the workbench as the origin for the measurement.
Business benchmark is related to kaizen and competitive advantage thinking.
· Improving communication
· Professionalizing the organization/process or for
· Budgetary reasons
· In outsourcing projects
Traditionally, performance measures are compared with previous measures from the same organization at different times. Although this can be good indication of the speed of improvement within the organization, it could be that although the organization is improving, the competition is improving faster……..
1. Internal benchmarking(benchmarking within a corporation, for example between business units)
2. Competitive benchmarking ( benchmark performance or processes with competitors)
3. Functional benchmarking 9benchmarking similar processes within an industry
4. Generic benchmarking ( comparing operations between unrelated industries)
5. Collaborative benchmarking [carried out collaboratively by group of companies (eg. Subsidiaries of a multinational in different countries or an industry organization]
· Scope definition
· Choose benchmark partner(s)
· Determine measurement methods, units, indicators and data collection method
· Data collection
· Analysis of the discrepancies
· Present the results and discuss implications/improvement areas and goals
· Make improvement plan or new procedures
· Monitor progress and plan ongoing benchmark
There are cost of benchmarking, although many companies find that it pays for itself. The three main types of costs are:
· Visit cost- This includes hotel rooms, travel cost, meal a token gift and lost labor time.
· Time cost- Member of the benchmarking team will be investing time in researching problem, finding exceptional companies to study, visits and implementation. This will take them away from their regular tasks for part of each day so additional staff might be required.
· Benchmarking database cost- Organizations that instutionalize benchmarking into their daily procedure find it is useful to create and maintain a database of best practice and the companies associated with each best practice.
· Benchmarking is a tough process that needs a lot of commitment to succeed
· Time-consuming and expensive
· More than once benchmarking projects end with the ‘they are different from us syndrome or competitive sensitivity prevents the free flow of information that is necessary
· Comparing performance and process with best in class is important and should ideally be dome on a continuous basis (the competition is improving its processes also….)
· Is the success of target companies really attributable to the practice that is benchmarked? Are the companies comparable in strategy, size, model, culture?
· What are downsides of adopting a practice?



From Saudi Arabia
thanks for your valuable inputs, what actually i require is a list of companies famous as best practice companies for various processes. regards pragya
From India, Pune

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