1. Introduction
Benchmarking is a systematic tool that allows a company to determine whether its performance of organizational processes and activities represent the best practices. Benchmarking models are useful to determining how well a business unit, division, organization or corporation is performing compared with other similar organizations. A benchmark is a point of reference for a measurement. The term 'benchmark' presumably originates from the practice of making dimensional height measurements of an object on a workbench using a gradual scale or similar tool, and using the surface of the workbench as the origin for the measurements.
2. Benchmarking Definitions
Benchmarking is the process of measuring an organization's internal processes then identifying, understanding, and adapting outstanding practices from other organizations considered to be best-in-class.
However, there are several generic definitions of benchmarking that provide varying insight. For example Xerox define the term Benchmarking like the continuous process of measuring company’s products, services, and practices against toughest competitors or those companies known as leaders. Also there is quality definition that identifies standard process used to assess success in meeting customer requirements. Moreover dictionary definition as a standard against which something can be measured. A survey mark of previously determined position used as a reference point. And the last but not in list is generic definition. This is a basis of establishing rational performance goals through the search for business best practices that will lead to higher performance.
3. Cost of benchmarking
Very interesting is a question about costs. There are three main types of ...