Business

For example, quality performance in the 96 to 98% range was considered excellent in the early 1980's. However, Japanese companies, in the meantime, were measuring quality by a few hundred parts permillion by focusing on process control to ensure quality consistency.
Thus, benchmarking is the only real way to assess industrial competitiveness and to determine how one company's processperformance compares to other companies'.

Types of Benchmarking
There are four types of benchmarking. They are not mutually exclusive and companies can choose any one or a combination to meet theirobjectives. It is recommended that strategic benchmarking is conducted first to create a context and rationale that will enhance all other benchmarking efforts.

Strategic Benchmarking

Analyses thestrategies with particular reference to:
* strategic intent
* core competencies
* process capability
* product line
* strategic alliances
* technology portfolio
It should beginwith the needs and expectations of the customer. This can be achieved through surveys to measure customer satisfaction and the gaps between a company's performance and its customers' standards.
Ensuresa co-ordinate strategic direction regarding benchmarking and reduces the possibility that one improvement project will cancel out the effect of another. Benchmarking candidates are normally directcompetition.
The main difficulty is persuading the benchmark partner to discuss their strategy. However, there is a great deal of information which can be obtained from customers, common suppliers andpublic domain information.

Functional Benchmarking
* Investigates the performance of core business functions.
* Do not need to focus on direct competition but, depending on the function tobe benchmarked; the benchmark partner may need to be in a similarly characterized industry for useful comparisons to be made.

Best Practices Benchmarking
* Applies to business processes.
*...