Benchmarking

Benchmarking is one of continuous improvement processes.
First introduced by Xerox Corporation in the mid 1990s.

Definition:
The continuous measurement of an organization's products and processes against a company
recognized as a leader in that industry.

Simple Definition:
The measurements against defined standard (benchmark).

Benchmarking refers to the actual activity of establishing benchmarks and best practices.
It is not a method for 'copying' the practices of competitors, but a way of seeking superior
process performance by looking outside the industry.

Benefits:

1. Allows examination of present processes - as benchmarking need to establish the standard
2. Learn from others experiences and practices
3. Performance improvement - as the primary goal of benchmarking
4. Creates an atmosphere conductive to continuous improvement

Issues:

1. Poorly defined benchmarks may lead to wasted effort and meaningless results
2. Incorrect comparison
3. What is best for someone else may not suit you
4. Reluctance to share information

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