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What is Benchmarking?
Home » Quality Control » Benchmarking » What is Benchmarking?The origin of the term benchmark can be traced back to woodworking, where a mark was placed as a point of reference from which comparative lengths could be measured. In the context of indicators, a benchmark is an accurate data point which is used as a reference for future comparisons and companies can compare themselves against those standards, whether internal or external.
From the business perspective, benchmarking is considered the continuous measurement of a process, product, or service compared to those of the toughest competitor - those organizations considered to be leaders in a particular industry. Benchmarking can also be the measurement of similar activities within an organization in order to find and implement ways to improve.
Benchmarking is one of the fundamentals of both total quality management and constant quality improvement. Internal benchmarking occurs when related processes within the same organization are compared. Competitive benchmarking occurs when an organization's processes are compared with best practices within the industry. Functional benchmarking refers to benchmarking a similar function or process, such as scheduling, in another industry.
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