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Types of Benchmarking

Competitive Benchmarking is a Direct Competitor
Competitive Benchmarking is a Direct Competitor

Competitive benchmarking is a direct competitor-to-competitor comparison of a product, service, process, or method. Functional benchmarking is a comparison to similar or identical practices within the same or similar functions outside the immediate industry.

source: oshatrain.org
Step 1-Determine Processes to be Benchmarked
Step 1-Determine Processes to be Benchmarked

Step 1-Determine processes to be benchmarked This step involves defining as accurately as possible the process to be benchmarked. It is the cornerstone of the entire benchmarking process. An incorrect identification at this stage could result in a waste of precious resources at later stages.

Step 2-Determine Organizations
Step 2-Determine Organizations

Step 2: Deciding the Benchmarking Organization (Whom to Benchmark) – The next step in the process is to decide the organization whose processes will serve as the benchmark. Obviously some companies, such as direct competitors, will not be available as places to gather certain types of benchmark data.

source: isixsigma.com
Step 3-Gather Data
Step 3-Gather Data

Step 3. Gather data. The third step involves creating a plan for collecting data from selected targets, conducting site visits, and creating a site visit report. Upon finishing step 3, our organization will have complete, accurate and relevant data with which to compare its own processes with β€œthe best of the best.” Step 4. Analyze for gaps.

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Step 4-Analyze for Gaps
Step 4-Analyze for Gaps

Step 4-Analyze for gaps This step involves analyzing the data collected, discovering to what degree present performance lags behind the best in each area and combining the best features from the best practices into an ideal process.

Step 5-Determine Future Trends
Step 5-Determine Future Trends

Step 5-Determine future trends During this step, your team will examine your organization's past performance in relation to its competitors, forecast potential change in your industry and project future performance, both with and without the proposed benchmarking changes.

Step 7-Achieve Consensus
Step 7-Achieve Consensus

7. Achieve consensus on revised goals. 8. Establish procedures. 9. Implement procedures and monitor results. 10. Recalibrate benchmarks. About the author . . . Charles J. Burke is a benchmarking consultant with KPMG Peat Marwick LLP in Dallas, Texas.

Step 8-Establish Action Plans
Step 8-Establish Action Plans

Four phases are involved in a normal benchmarking process – planning, analysis, integration and action. And in the four phases are 10 practical steps that can help any Lean Six Sigma practitioner involved in a benchmarking a process.

source: isixsigma.com