Which of the following is the purpose of benchmarking?

Which of the following is the purpose of benchmarking?
A . To identify and adapt the best practices to improve organisation’s performance
B . To copy other organisation’s intellectual properties, processes and practices
C . To coerce all suppliers to sacrifice their profit
D . To resist continuous improvement

View Answer

Answer: A

Explanation:

According to US Department of the Navy, Benchmarking is a strategic and analytic process of continuously measuring an organisation’s products, services, and practices against a recognised leader in the studied area.

Successful benchmarking will help you:

– Find who does the process best and close the gap

– Recognise the leading organisations in a process or activity

– Create performance standards derived from an analysis of the best in business

– Ensure that comparisons are relevant

– Measure your performance, your processes, and your strategies against best in business

– Measure business processes

– Assess performance over time

– Accelerate continuous process improvement (CPI)

– Establish more credible goals for CPI

– Establish actionable objectives

– Discover and clarify new goals

– Establish customer expectations of business standards set by the best suppliers in industry

– Help your organisation achieve breakthrough improvements

– Create a sense of urgency for change

– Increase customer satisfaction

– Become direction setting

– Provide a positive, proactive structured process

Benchmarking does not:

– Copy the other’s processes

– Steal other business confidentiality

– Stop. Benchmarking is a continuous process.

Reference: – CIPS study guide page 49-51

– The Department of the Navy Benchmarking Handbook LO 1, AC 1.3