Benchmarking is a method of improving performance in a systematic and logical way. It is with constant measuring and comparing of performance against others of SIMILAR caliber or scope to get “target”. This however will then be used as a lessons learned from the best to make targeted improvements.
Note this article uses the phrase:
“SIMILAR caliber or scope”
How does this apply to you who could just be a bottom end stake-holder who is in charge of purchasing or sourcing? Well, often we hear that when products are in place, comparing of which is the best always comes to every one’s mind. Which company do you buy from, which company do you switch to. But when that process goes on, DO WE REALLY use the same caliber to measure if the later product is better?
Often we use price to decide which to choose. It could be a sole reason why we switch from company A to B because B is cheaper BUT do we know what quality are we paying for? This is where bench marking comes to play. Benchmarking and using the same specification to compare is the only best system one should adopt when making choices comparing performance.
It means knowing the answers to the following questions “Who performs better?”, “Why are they better?”, “What actions do we need to take in order to improve our performance?”. Even when we are not talking about choosing / sourcing for equipment, we can also apply companies into play. How is such company better then the other and what is an average ‘score’ of company for you to even think about considering working with them. Examples like do they supply Noise Control Barriers that have 100% pass rate for Noise Test? Are they getting a good track record of enabling companies to qualify for QCF?
Benchmarking focuses a company’s improvement efforts on its ‘success-critical’ issues. It makes an average “score” be the to look at figure when making comparison. It creates a line for other to go above it and exceeding it and not doing so means the cut is not made. With most things not quantifiable, bench marking makes something measurable.
This Framework would provide you with some ease at creating the “cut”:
Construction / Materials Supplier
client satisfaction
Time
Cost
Quality
Safety
Productivity
Profitability
Respect for People
do they connect with clients promptly
give much value add information
a joy and ease talking to
Though this few things are short and simple, this are the little-little things that one can look at. After all, this things play a big part in creating that bench mark for others to follow. Not surprisingly, we actually meet all the criteria.
Till Then. God Bless.
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