BENCHMARKING Amalia, ST, MT

OUTLINE

• Benchmarking Definition

• Benchmarking Features & Concept

• Why Benchmarking?

• Benchmarking Types

• Benchmarking Advantages & Disadvantages

What is Benchmarking?

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.

• Learning from others what they do right and then imitating it to avoid

“reinventing the wheel”

• Measuring yourself against the “best in class”

• The continuous process of measuring products, services, and practices

against the company’s toughest competitors or those renowned as

industry leaders

• Benchmarking is the practice of being humble enough to admit that

someone else is better at something and wise enough to try and learn

how to match and even surpass them at it.” - APQC, 1998 -

What is Benchmarking?

What is Benchmarking

• Benchmarking adalah proses terus menerus mengukur dan membandingkan proses bisnis seseorang terhadap proses sebanding dalam organisasi terkemuka untuk mendapatkan informasi yang akan membantu organisasi mengidentifikasi dan melaksanakan perbaikan

• Suatu proses yang biasa digunakan dalam manajemen atau umumnya manajemen strategis, dimana suatu unit/bagian/organisasi mengukur dan membandingkan kinerjanya terhadap aktivitas atau kegiatan serupa unit/bagian/organisasi lain yang sejenis baik secara internal maupun eksternal.

Benchmarking Features

Metode mengukur dan membandingkan proses bisnis suatu perusahaan terhadap orang-orang dari perusahaan lain secara terus menerus

menemukan ”performance gaps” antara proses sendiri dengan perusahaan terkemuka

menggabungkan proses perusahaan terkemuka ke dalam strategi perusahaan sendiri untuk mengisi “gap” dan meningkatkan kinerja

Three Main Features of Benchmarking:

Ruang Lingkup Benchmarking…

• Fokus dari kegiatan benchmarking diarahkan pada praktik terbaik dari perusahan lainnya.

• Ruang lingkupnya makin diperluas yakni dari produk dan jasa menjalar kearah proses, fungsi, kinerja organisasi, logistik, pemasaran, dll.

• Benchmarking juga berwujud perbandingan yang terus-menerus, jangka panjang tentang praktik dan hasil dari perusahaan yang terbaik dimanapun perusahaan itu berada.

As its simplest, benchmarking means:

“Improving

ourselves by

learning from

others”

EVOLUSI KONSEP BENCHMARKING Watson (dalam Widayanto, 1994)

Reverse Engineering

Competitive Benchmarking

Process Benchmarking

Strategic Benchmarking

Global Benchmarking

Evolusi Konsep Benchmarking (1)

• Reverse Engineering

• Perbandingan karakteristik produk, fungsi produk dan kinerja terhadap produk sejenis dari pesaing.

• Competitive Benchmarking

• Benchmarking terhadap karakteristik produk, dan proses yang memungkinkan produk yang dihasilkan adalah produk unggul

• Process Benchmarking

• Memiliki lingkup yang lebih luas dengan anggapan beberapa proses bisnis perusahaan terkemuka yang sukses memiliki kemiripan dengan perusahaan yang akan melakukan benchmarking

Evolusi Konsep Benchmarking (2)

• Strategic Benchmarking

• Proses sistematis untuk mengevaluasi alternatif, implementasi strategi bisnis dan memperbaiki kinerja dengan memahami dan mengadaptasi strategi yang telah berhasil dilakukan oleh mitra eksternal yang telah berpartisipasi dalam aliansi bisnis. Membahas tentang hal-hal yang berkitan dengan arah strategis jangka panjang

• Global Benchmarking

• Mencakup semua generasi yang sebelumnya dengan tambahan bahwa cakupan geografisnya sudah mengglobal dengan membandingkan terhadap mitra global maupun pesaing global.

Types of Benchmarking

• Product

• Performance (functional)

• Process

• Strategic

• Internal vs External

• Generic

• International

• Best in Class

• Best of the Best

Internal Benchmarking

• Establishing good practices in the organization

• Comparison of similar functions in different operating units within the organization

• Advantages

• Easier to implement

• Easier to access data

• Disadvantages

• No external ideas

• Time-consuming

External Benchmarking

• Comparison of organization functions and key processes against Good Practices

• Advantages

• Helps to measure one’s own performance

• Helps to search for best practices

• Disadvantages

• Takes time

• Requires support

• Cross-cultural differences

Functional Benchmarking

• Comparison of similar functions against external best in any industry

• Advantages:

• Developing networks

• Discovering innovative practices

• Disadvantage:

• Not suitable for every organisation

Process Benchmarking

• Focus on specific operations or processes

• Examples:

• in higher education-enquiry management, enrolment

• in Logistics- delivery, safety

• in hotels—housekeeping, customer care,

Generic Benchmarking

• Comparison of functions which are generic in nature in any industry

• Example

• Hospitals in the U.S. routinely benchmark their patient management against hotel’s guest management.

• Mobil benchmark their customers service with 5 star hotels

Performance or Competitive Benchmarking

• Organizations using performance measures to compare themselves against similar organizations

• Example

• FMCG’s comparing with each other for Market share, Retention rates, profits, costs

Strategic Benchmarking

• Used where organizations seek to improve their overall performance by focusing on specific strategies or processes

• Example

• Benchmarking against organizations which have won awards or some other distinctions

Diagram of benchmarking concept

What is our performance level? How do we do it?

What are others’ performance levels? How did they get there?

Creative Adaptation

Breakthrough Performance

Figure 8-1 Benchmarking Concept (pg. 208)

Reprinted with the permission of the Institute of Industrial Engineers, 3577 Parkway Lane, Suite 200,

Norcross, GA 30092, 770-449-0461. Copyright © 1995.

Continuous & Breakthrough Improvement

Benchmark

What to Benchmark

• Product & services • Finished goods, product & services features

• Work processes • Manufacturing, supplying, ordering, maintenance

• Support functions • HRD, financial management, marketing

• Organizational performance • Sales, profitability, cost, quality, manpower

• Strategies • Cost leadership, differentiation

What to Benchmark Identifying “resources” & “capabilities” that can add value

Commonly Benchmarked Performance Measures

Kapan Benchmark digunakan?

Digunakan ketika:

• Proses yang ditargetkan adalah kritis bagi keberhasilan organisasi

• Peluang pertumbuhan yang signifikan terjadi dalam bisnis, namun korporasi tidak mampu mengambil keuntungan tersebut

• Organisasi memahami proses saat ini dan ukuran kinerjanya

• Memiliki komitmen untuk perubahan

Tidak digunakan ketika:

• Organisasi tidak memahami proses yang ditargetkan

• Manajemen tidak mengetahui bagaimana kinerja organisasi dibandingkan sendiri dengan pesaingnya

• Manajemen tidak memahami apa yang dibutuhkan pelanggan dari proses ini

• Manajemen belum melakukan pemetaan proses dan tidak memiliki ukuran kinerjanya

Why Benchmarking

• Lingkungan dan pasar berubah dengan cepat dan kompetitif

• Harapan pelanggan di”dorong” oleh standar yang ditetapkan oleh pemain terbaik

• Benchmarking gives (us) the chance of gaining “Better Awareness of Ourselves” – what/how/how well we are doing it?

• Benchmarking gives (them) the chance of gaining “Better Awareness of the Best” – what/how/how well they are doing it?

• More efficient way to make improvement

• To bring your performance up as a whole significantly

• Learn from others experiences

TUJUAN PELAKSANAAN BENCHMARKING

Menentukan kunci atau rahasia sukses dari perusahaan pesaing yang paling unggul kemudian mengadaptasikan dan memperbaikinya secara lebih baik untuk diterapkan, yang akhirnya akan mengungguli pesaing yang di-benchmarking

(memperoleh gambaran dalam (insight) mengenai kondisi

kinerja organisasi sehingga dapat mengadopsi best practice untuk meraih sasaran yang diinginkan)

Advantages of Benchmarking

• Product and process Improvement

• Organisasi dapat memperbaiki proses operasi, perbaikan budaya, perbaikan kinerja, perbaikan kemampuan SDM

• Time & Cost Reduction

• Melibatkan mitasi dan adaptasi daripada “pure invention”

• Competitive Strategy

• Perbaikan proses operasi sebagai strategi kompetitif

Advantages of Benchmarking: Competitive Strategy • Membangun “kompetensi inti”

• Akses pasar

• Manfaat produk/jasa meningkat

• Produk/jasa sulit ditiru

• Low-cost leader

• Target “specific” shift in strategy

• Entering new markets

• Developing new product

• Membuat perusahaan lebih “fleksibel”

Disadvantages…

• What is best for someone else may not suit you

• Poorly defined benchmarks may lead to wasted effort and meaningless results

• Incorrect comparison

• Reluctance to share information

Benchmarking requires…..

• a thorough understanding of your organization’s business processes before any comparisons are attempted.

• planning to identify the best-in-class for comparison and data collection.

• analysis to determine the performance gaps.

• integration to set new goals and standards.

Benchmarking requires…..

• an action plan to implement the changes to the process.

• constant updating to keep the standard of excellence.

• a means to measure.

• commitment by leadership.

• resources, including time.

Benchmarking works best when…..

• it supports an organization’s strategic plan.

• its done on existing processes that are well-defined.

• the organizational leader is knowledgeable and committed to total quality (TQ).

• it is utilized as a tool in a TQ organization.

Benchmarking is not….. • just looking for a better way to do things; it looks for

the best way.

• a mere comparison.

• only competitive analysis.

• site briefings.

• industrial tourism

• spying

• easy

• quick

Benchmarking does not….. • Copy... Instead, you must adapt the information

to fit your needs, your culture, and your system. And, if you copy, you can only be as good as your competitor, not better.

• Steal... To the contrary, it is an open, honest, legal study of another organization’s business practices.

• Stop... Rather, it is a continuous process that requires recalibration.