Benchmarking

Common card · No. 293253

Benchmarking is the practice of comparing business processes and performance metrics to industry bests and best practices from other companies. Dimensions typically measured are quality, time and cost. Benchmarking is used to measure performance using a specific indicator (cost per unit of measure, productivity per unit of measure, cycle time of x per unit of measure or defects per unit of measure) resulting in a metric of performance that is then compared to others. Also referred to as “best practice benchmarking” or “process benchmarking,” this process is used in management, in which organizations evaluate various aspects of their processes in relation to the processes of best-practice companies, usually within a peer group defined for comparison. This allows organizations to develop plans to make improvements or adopt specific best practices, usually with the aim of increasing some aspect of performance. Benchmarking may be a one-off event, but it is often treated as a continuous process...

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