· Benchmarking is a method for organizations to compare their processes, practices and performance with others.
· Benchmarking is the process of determining who is the very best, who sets the standard, and what that standard is. It is a process of re-engineering or Quality Improvement Initiative.
· There are two major approaches to Benchmarking these are performance and process benchmarking.
Performance Benchmarking is the collection of (generally numerical) performance information and making comparisons with other compatible organizations. It answers the question: What are the most important performance yardsticks and where do we rank, compared with others in our industry and other analogous industries?
Total Quality Management (TQM)
TQM is a form of management that focuses on the customers, an environment of trust and openness, working in teams, breaking down internal organizational barriers, team leadership and coaching, shared power, and continuous improvement; use of this approach often involves fundamental changes in the organization’s culture.
It is a set of management pratices throughout the organization consistently meets or exceeds customer requirements.
Process Benchmarking is the comparison of practices, procedures and performance, with specially selected benchmarking partners, studying one business process at a time. It answers the question: What is the best practice in this topic, where are the best practitioners and what can we learn from them?