Introduction
Due to the search for improvements, in industrial and commercial processes, there are processes that bring positive results for the entities. That is why Benchmarking was born as a result of wanting to know how other companies are working and obtain information that serves to improve the company and become competitive in the market.
Xerox is the company that started with Benchmarking in a meeting about its organizational aspect and they talked about a process to understand the competitors and about the general processes of the product.
It is also mentioned that a hospital wanted to speed up its ambulance service and that is why Dominós Pizza began to analyze that, as we know, it manages its policy that if pizza is not delivered in 30 minutes it is free.
Benchmarking is based on 2 Asian proverbs "if you know your enemy, you know yourself" and "fight to be the best of the best".
Benchmarking is the tool that will help us detect and apply the examples of processes from other companies to improve quality and have greater productivity.
Concept
Benchmarking is a technique for comparing the processes of one company with those of a similar one to improve the entity's processes. That is, it helps us to be better about the success of others.
Companies in different industries use it to measure their successes and to detect their failures. This refers to identifying the problem areas and looking for competitors that have improvements where the company has problems and thus make the necessary changes.
goals
- Quality. The value of the product (price and manufacturing costs). Know the quality system of other companies and use it in favor of the company. Also design quality systems to meet specifications and standards. Productivity. Production and consumption level. Seek excellence in areas that control resources. Time. Time study for an industrial development. Development of programs that focus on time.
Types of benchmarking
Internal Benchmarking
This is done mainly in multinational companies, so it begins by comparing activities internally. This helps to identify best business practices internally and will be a starting point as it will be like a preliminary study before going externally.
This is important since despite being the same company, there are organizational, geographic or cultural differences and this affects work processes.
Competitive Benchmarking
This guides competitors about their products, services and processes. The information obtained is of utmost importance since the practices of the competition have effects on customers and suppliers, added that similar processes are carried out, so we will learn from them.
Functional Benchmarking (Generic)
This also focuses on products, services and work processes, but the comparison is not precisely with similar or direct companies.
The aim is to obtain information on the practice of a company considered a leader in a specific area
It is called generic because it applies to functions or processes that are common to many companies.
In addition to this classification, we have another:
Performance benchmarking
Its purpose is to detect who will perform in the best way (company to follow) taking into account their productivity. This will include all research based studies and will be from competitor and functional leader data.
In addition, less resource support is needed as it depends on data analysis obtained from databases and surveys.
It is also a way to start without having to have direct contact with the companies under study.
Strategic benchmarking
This is done through alliances with non-competing companies and requires a limited investment.
Process benchmarking
It takes deep commitment and more experience. Best practices will be sought through personal studies and observations of administrative processes, regardless of who the company is.
It requires an expert in the field, the person in charge of a process and the people who carry out the process to carry out the investigation. So it takes a bigger investment but it will bring good rewards.
Core items
To improve Benchmarking, use innovation and techniques for organizational areas and cultures, but each company adapts it to its needs and established objectives. There are basic elements along with these tools:
1. Continuity. It is done for a long-term period.
2. Methodology. It is a systematic process where situations are established and performance is measured. What stimulates change in the company.
3. Evaluation objective. Practices, work processes, products, services, etc. are investigated.
4. Object of evaluation. It is comparing the company with other similar ones.
Best competitor
These are some points to consider to find the best competitor or functional leader.
- Competitor in broader terms. It is to take into account that the company has the best practices in the industry and carries out comparable operations and best practices can be established. Companies with similar activities should be sought. Remain within the same industry. Industry broadly defined Best business practices It refers to discovering innovative practices wherever they exist. One of the most important points in Benchmarking is about the management of the information, so that it is well used and does not harm the company that provides it.
Phases development
Planning phase
It is planning the investigations, with the questions what, who and how.
Process identification
It is to identify the product, either production or service, which will be Benchmarked. It is vitally important to document the company's processes and view performance evaluation systems.
Identification of Comparable Companies
Determine the type of Benchmarking to apply, since it will depend on which company the comparison will be made with. It should not be forgotten that the company with the best practices should be searched, so it can be helped through the database or other means.
Advantages and disadvantages
Among the advantages obtained from Benchmarking is being able to identify opportunities for innovation since we can discover new technologies. By finding significant differences, we can see it as a stimulus for change and improve practices.
In addition, it allows us to know the position of the company compared to others, which prevents companies from stagnating. Knowing new trends and strategic directions and being able to implement a suitable change.
It can be applied to any process, which will be useful for us to establish forecasts of market behavior and the risk that implementing a strategy would imply. It also allows us to establish objectives and goals, which is reflected in the company's strategic planning.
Among the disadvantages that we can have with Benchmarking, the creativity of companies is reduced, and it can even become a copy.
If not handled carefully, the process can be wrong and cause losses in the company. It can be a long process, which translates into a lot of time and money, and the success of the process cannot be guaranteed.
It is possible to go in the wrong direction, of not carrying out an adequate study.
Put it into practice in your company
Know yourself: It is to make a diagnosis of your company through a SWOT analysis, to know the current performance. What will determine the strengths and weaknesses. Planning must be made, specifying what is expected and what the research method will be.
Know your competition: establish who is the direct and indirect competition, and possible substitutes. Know how the market is and detect the leading company in the industry.
Find your strengths: Physically know the company, its website, ask for references, know its advertising, etc. All this to detect their strengths and weaknesses of the chosen company.
One should focus on the practices that led to the success of the company, since they will serve to empower our company. Do not forget the incorrect practices, for you to improve them.
Apply it in your company: Use the information obtained to improve the situation of the company. Certain practices can be copied, improved or even improved to your company.
Evaluation: When applying new practices or strategies in the company, you need to evaluate performance. This should be periodic, as it is a continuous improvement.
Example of success
The best known case was that of Xerox since it faced a crisis in the 70s. At this time the company was a monopoly in America but its income began to decline, due to Japanese competition, which they sold to the US at lower prices.
To face this, it was decided to use Benchmarking, to be at the level of others. The first point to deal with was the control of the warehouse, since they had a problem in this area, which made the shipping and receiving cycle impossible.
A magazine provided information on a computer-assisted inventory management system, which was used by another company. Benchmarking started here and the partner company was visited. Important information was obtained from this visit and improvements were implemented.
Between 1989 and 1992, nearly 200 studies were carried out with various companies, of which certain problem areas were detected: information system, workstations, document processing, parts service logistics, among others.
The improvements that were implemented were reflected in the level of customer satisfaction, reduction of personnel and material expenses. They even won awards such as the Malcolm Baldrige National Quality Award and the European Quality Award.
conclusion
It is a useful tool to innovate the company but it all depends on the degree to which we study the company.
The study must be done in a quick time, since if the information is very old it will not be useful due to the various changes in the market. We must investigate to the depths of the company since this will be our starting point to detect the areas to be analyzed.
Finally, it is a business practice that by adapting and implementing it in our company, will improve our company in work processes and allow us to be competitive and have a place in the market.
Bibliography
- http://www.soyentrepreneur.com/22889-por-que-hacer-benchmarking.htmlhttps://www.e-conomic.es/programa/glosario/definicion-de-benchmarkinghttp://www.gestiopolis.com/ benchmarking-conceptual-development-and-practical-case / http: //www.luismaram.com/2013/08/28/como-hacer-benchmarking-en-sustentabilidad/
