HOW IS BENCHMARKING CARRIED THROUGH
There are many ways in which benchmarking can be applied. Rank Xerox, for one, has its own procedure divided into 10 steps. Benchmarking is the only real way to assess industrial competitiveness and to determine how one company's process performance compares to other companies.
The PDCA circle of benchmarking
It is a model for the implementation of benchmarking based on the ideas behind the so-called Deming cycle or the PDCA cycle.
- Firstly, benchmarking is considered an eternal process (a closed loop) meaning that as soon as the benchmarking procedure is implemented and the improvements started, a new plan and search for improvements starts.
- Secondly, the benchmarking is implemented in four natural stages:
1. PLAN: planning
2. DO: search and observe
3. CHECK: analyze the results
4. ACT: adapt results and carry through improvements
The planning stage (Plan) comprises the initial activities in connection with benchmarking. The stage will typically consist of the following four points:
1. Determination of what shall be benchmarked.
2. The determination of criteria for the selection of benchmarking partners.
3. The determination of methods for data collection.
4. The determination of use of resources.