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Benchmarking: a Permanent Process for Excellence

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Benchmarking: A permanent Process for Excellence

Benchmarking is a process in which organizations evaluate various aspects of their processes in relation to best practices, usually within their own sector. It is also a process of identifying other organizations that are best at some facet of our operations and then modeling our organization after them (Operations Management, 9/e, Jay Heizer & Barry Render). It selects a demonstrated standard of performance that represents the very best performance for a process or activity. Benchmarking is `the continuous process of measuring products, services and practices against the toughest competitors or those companies recognized as industry leaders,
(that is) ... the search for industry best practices that will lead to superior performance (Camp,
1989, 10). According to these definitions benchmarking helps organizations increase their performance. They compare and measure their policies, practices, philosophies, and performance measures against those of high-performing organizations. Benchmarking could be a onetime event but rather a continuous process in which organizations continually seek to challenge their practices. It is a continuous, systematic process of measuring products, services and practices against organizations regarded to be superior with the aim of rectifying any performance ``gaps’’ because of the existence of strong dynamics in the current business world. The aim of benchmarking is to identify competitive targets which render the weak points of the benchmarking organization visible and to establish means of improvement. In other words, it is not to find out ``by how much others are doing better but, rather, how they make it to do better in certain areas'' (Horvath and Herter).
Essay Two
There are steps in developing benchmarks. These are determining what to benchmark, forming a...

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