ASSIGNMENT WRITING OF
“ BENCHMARKING ”
SUBMITTED FOR
QAULITY MANAGEMENT SYSTEMS (MQA102T)
OF
MASTER OF PHARMACY
[SEMESTER- I (2023-24)]
PATEL KRUTARTH MUKESHKUMAR
Enrolment No:-192470290072
Guided By:- Ms. KRUTIKA PATEL
SUBMITTED TO
SARASWATI INSTITUTE OF PHARMACETICAL SCIENCE
GANDHINAGAR-382610, GUJARAT
BENCHMARKING
➢ Benchmarking is the contious ,systematic process of measuring one’s output
and or work process aginst the toghest competitiors or those recognized best
in the industry
Author Defination
Camp 1989 The continous process of measuring
products , services and practices
against the thoghest competitors or
those companies recognized as
industry leaders.
Geber 1990 A process of finding the world-class
examples of a product,services or
operational system and then adjusting
own products,services or systems to
meet or beat those standars.
Codling 1992 An ongoing process of measuring and
improving products,services and
practices against the best.
Vaziri 1992 A continous process comparing an
organization`s performance against
that of the best in the industry
considering critical consumer needs
and determining what should be
improved.
Watson 1993 The continous input of new
information to an organization
Evans 1993 Measuring own performance aginst
best in class organizations to
determine how they achieve their
performance levels and use the
knowledge to improve own
performance
Kleine 1994 An excellent tool use in order to
identify a performance goal for
improvement,identify partners who
have accomplished these
goals,identify applicable practices to
incorporate into redesign effort.
Cortada 1995 A method for finding how to improve
processes quickly by learning from
others dealing with similar issues.
Cook 1995 A kind of performance improvement
process by identifying,understanding
and adopting outstanding practices
from within the same organization or
from other buisnesses.
APQC 1999 The process of continously comparing
and measuring an organiztion against
buisness leaders anywhere in the
world to gain information which will
help the organization take action to
improve its performance.
BENEFITS OF BENCHMARKING
➢ Helps organisations understand strrengths and weekness
➢ Helps better satisfy the customers needs by establishing new standars and
goals
➢ Motivates employees to reach new standars and to be keen on new
devlopments
➢ Allows organizations to realise what levels of performance is really possible
by looking at others
➢ Documents reasons as to why these differnces exist
➢ Helps organizatins improve their competitive advantage
➢ Is a cost-effective and time-efficient way of establishing a pool of innovative
ideas
BENCHMARKING PROCESS
➢ Bm must for key buisness process (KBPs)
➢ Product devlopment
➢ Customer service
➢ Hr practices
➢ Inventory control
➢ Reserch and devlopment etc.
BENCHMARKING PROCESS AND STAGES
BENCHMARKING PROCESS
❖ PLAN
✓ Select the process
✓ Form team
✓ Understand and document process
✓ Establish performance measure
❖ SEARCH
✓ Listing criteria for partner selection
✓ Conduct general / secondary reserch
✓ Decide the level to benchmark
✓ Identify potential partners and conatct
❖ OBSERVE
✓ Questionaries sent to partner
✓ Telephone contact
✓ Direct observation/site visit
❖ ANALYZE
✓ Sort information and data
✓ Quality control information and data
✓ Normalise data if necessary
✓ Identify gaps in performance level
✓ Identify causes for gaps
❖ ADAPT
✓ Identify improvement opputunities
✓ Set target for improvement
✓ Devlop implementation plan,moniter the progress
✓ Write final report
APPROCHES TO BENCHMARK
➢ Internal and external benchmarking
➢ Performance or competitive benchmarking
➢ Functional and generic benchmarking
➢ Strategic benchmarking
➢ Process benchmarking
➢ International benchmarking
INTERNAL BENCHMARK
➢ Establishing good practices in the organization
➢ Comparison of similar functions in different operating units within the
organization
➢ ADVANTAGE
✓ Easier to implement
✓ Easier to access data
➢ DISADVANTAGE
✓ No external ideas
✓ Time-consuming
EXTERNAL BENCHMARK
➢ Comparison of organiztional functions and key processes against good
practices
➢ ADVANTAGE
✓ Helps to measure one`s own performance
✓ Helps to search for best practices
➢ DISADVANTAGE
✓ Take time
✓ Requires support
✓ Cross-cultural differences
FUNCTIONAL BENCHMARK
➢ Comparison of similar functions against external best in any industry
➢ ADVANTAGE
✓ Devloping networks
✓ Discovering innovative practices
➢ DISADVANTAGE
✓ Not suitable for every organisation
PROCESS BENCHMARK
➢ Focus on specific operations or processes
➢ Examples :-
✓ In higher education-enquiry management,enrolment
✓ In logistics-delievery,safety
✓ In hotels- housekeeping,customer care
GENERIC BENCHMARK
➢ Comparison of instructions which are generic in nature in any industry
➢ Example
✓ Hospital in the US routinely benchmark their patient management against
hotel`s guest management
✓ Mobil benchmark their customers services with 5 star hotels
PERFORMANCE OR COMPETITIVE BENCHMARKING
➢ Organizations using performances measure to compare themselves against
similar oraganiztions
➢ Example
✓ FMCG`s comparing with each other for market share, retention ,rates,
profits, costs
STRATEGIC BENCHMARK
➢ Used where organizations seek to improve their overall performance by
focusing on specific strategies or processes
➢ Examples
✓ Benchmarking against organizations which have won awards or some
other distinctions
WHAT TO BENCHMARK
➢ Products and services
✓ Finished goods
✓ Products and
✓ Services feautures
➢ Work processes
✓ Manufacturing
✓ Supplying
✓ Ordering
✓ Maintenance
➢ Support functions
✓ Human resource department
✓ Financial management
✓ Marketing
➢ Organizational performance
✓ Sales
✓ Profitability
✓ Cost
✓ Quality
✓ Manpower
➢ Strategies
✓ Cost leadership
✓ Differentiation
BENCHMARKING PARTNER
➢ A benchmarking partner is any person or organization that participates in open
exchange of information for the purpose of learning from each other in areas
of interest
➢ Identification steps
✓ Design a list of criteria for focused search of partners
✓ Conduct general
✓ Decide the level to benchmark
✓ Identify potential partner & establish contact
➢ Criteria for selection
- Similarity of process
- Geographical location
- Size of the organization
- Product
- Technology
- Mangement style
- Company culture
- Easy accesibility of information
BENCHMARKING COMPONENTS
ENABLER ASSESMENT
OUTCOMES
COMPONENTS
➢ Assessment: Measuring own and partner's performance
➢ Enablers: Practices leading to performance improvement
➢ Outcomes: Performance outcomes yielded by implementing the findings.
➢ "It is a lot easier to benchmark a process than to benchmark an output" (Kaplan
1993)
➢ Process: a specific investigation
➢ Output: rather complex and extensive
BENCHMARKING IS.....
➢ A tool to identify, establish, and achieve standards of excellence
➢ A structured process of continually searching for the best methods, practices,
and processes and either adopting or adapting their good features and
implementing them to become the .best of the best..
➢ The practice of measuring your performance against world-class
organizations.
➢ An ongoing investigation and learning experience ensuring that best practices
are uncovered, adapted, and implemented.
➢ A disciplined method of establishing performance goals and quality
improvement projects based on industry best practices.
➢ A searching out and emulating of the best practices of a process that can fuel
the motivation of everyone involved, often producing breakthrough results.
➢ A positive approach to the process of finding and adapting the best practices
to improve organizational performance.
➢ A continuous process of measuring products, services, and practices against
the company's
➢ Toughest competitors or those companies renowned as industry leaders.
➢ Learning how leading companies achieve their performance levels and then
adapting them to fit your organization.
➢ A research project on a core business practice.
➢ A partnership where both parties should expect to gain from the information
sharing.
➢ Both a business tool and a quality tool for improving key business processes.
BENCHMARKING WILL HELP YOU.....
➢ Find who does the process best and close the gap.
➢ Recognize the leading organizations in a process or activity.
➢ Create performance standards derived from an analysis of the best in buisness.
➢ Measure your performance, your processes, and your strategies against best in
business.
➢ Measure business processes.
➢ Assess performance over time.
BENCHMARKING REQUIRES.....
➢ A thorough understanding of your organization's business processes before
any comparisons areattempted.
➢ Planning to identify the best-in-class for comparison and data collection.
➢ Analysis to determine the performance gaps.
➢ Integration to set new goals and standards.
➢ An action plan to implement the changes to the process.
➢ Constant updating to keep the standard of excellence.
➢ A means to measure.
➢ Commitment by leadership.
➢ Resources, including time.
BENCHMARKING WORKS BEST WHEN.....
➢ It supports an organization's strategic plan.
➢ Its done on existing processes that are well-defined.
➢ The organizational leader is knowledgeable and committed to total quality
(tq).
➢ It is utilized as a tool in a tq organization.
BENCHMARKING IS NOT …
➢ Fool proof.
➢ Free.
➢ Subjective.
➢ A panacea.
➢ A program.
➢ A cookbook process.
➢ A mechanism for determining resource reductions.
➢ Business as usual.
➢ A management fad.
BENCHMARKING DOES NOT.....
➢ Copy... Instead, you must adapt the information to fit your needs, your
culture, and your system. And, if you copy, you can only be as good as your
competitor, not better.
➢ Steal... To the contrary, it is an open, honest, legal study of another
organization's business practices.
➢ Stop... Rather, it is a continuous process that requires recalibration.
