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BANUPRIYA.J
       SIVASUBRAMANIAM
        SUMIYA FATHIMA
       THANGAPANDIYAN
         UDAYA SANKAR
          VINODINI.K.R



BENCHMARKING
DEFINITIONS OF
              BENCHMARKING
 Benchmarking is the process of comparing
  the cost, cycle time, productivity or quality of
  a specific process or method to another that
  is widely considered to be an industry
  standard or best practice.
 Benchmarking is the process of continually
  searching for the best methods, practices
  and processes, and either adopting or
  adapting     their    good     features     and
  implementing them to become “best of the
  best.”
BENCHMARKING
   COMPLIANCE(CONFIRMITY)

Policy regarding benchmarking protocol
 should be communicated to all
 employees      employed,    prior    to
 contacting    external   organizations.
 Guidelines    should    address     the
 following areas:
 1. Misrepresentation.
 2. Information requests.
 3. Sensitive/proprietary information.
 4. Confidentiality.
WHEN TO BENCHMARK
Benchmark early and often.
During design
 Helps make decisions about table
  structure, indexes, etc.,
 Know early on if you have sufficient
  hardware.
Before launch.
Anytime you’re wondering “which is faster A
 or B?”
WHEN NOT TO BENCHMARK

Target is not critical to the core
 business functions.
Customer’s requirement is not clear.
Key stakeholders are not involved.
Inadequate resources to carry through.
No plan for implementing findings.
Fear of sharing information with other
 organizations.
PERFORMANCE GAP
Performance




                            Performance Gap




                     Time
BENCHMARKING PROCESS

             Planning


Improving               Collecting
 Practices                Data

             Analysis
1. PLANNING
 Determine the purpose and scope of
  the project.
 Select     the    process      to   be
  benchmarked.
 Choose the team.

 Define the scope.

 Develop a flow chart for the process.

 Establish process measures.

 Identify benchmarking partners.
2. COLLECTING DATA
   Conduct background research to gain
    thorough understanding on the
    process and partnering organizations
   Use    questionnaires   to      gather
    information      necessary         for
    benchmarking
   Conduct site visits     if   additional
    information is needed
   Conduct interviews if more detail
    information is needed
3. ANALYSIS
   Analyze quantitative data of partnering
    organizations and your organization.
   Analyze qualitative data of partnering
    organizations and your organization.
   Determine the performance gap.
4. IMPROVING PRACTICES
   Report findings and brief management.
   Develop an improvement implementation
    plan.
   Implement process improvements.
   Monitor performance measurements and
    track progress.
   Recalibrate the process as needed.
COST OF BENCHMARKING
• The three main types of costs
 are:
  Visit costs.
  Time costs.
  Database costs.
APPROACHES TO
         BENCHMARKING

1. Identify the process to be
     benchmarked.
2.   Establish management commitment to
     the benchmarking process.
3.   Identify and establish the
     benchmarking team.
4.   Define and understand the process to
     be benchmarked.
5.   Identify metrics and collect process
1. IDENTIFY AN APPROPRIATE
    BENCHMARKING MODEL

The generic model is selected as the
 most appropriate.
The approach ensures elements crucial
 to customer satisfaction.
Facilitates an in depth scrutiny of the
 way operations are currently run.
A learning experience.
Comparisons with other organizations
 enable participants to exchange ideas
2. PROCEDURES REPRESENTING
     THE APPROACH TAKEN
Identify a key process, critical to the success
 of the service.
Document or map the sub-process.
Take measurements of factors critical to the
 success of the process.
Analyze the results of exercise and identify
 gaps in performance.
Select benchmarking partners, arrange visit
 to compare the results of the exercise.
Identify “best practice” e.g. methods used by
3. SELECTING
   BENCHMARKING PARTNERS

Most difficult aspects of benchmarking.
Partners are selected from organizations.
Interested in benchmarking and willing to
 participate in the exercise.
Not in competition with the demonstration
 organization.
Formal letter will be sent stating procedures
 for the exercise to the partners.
Demonstration organizations will arrange for
4. THE BENCHMARKING
             VISIT


Meeting is set up by the demonstration and
 the benchmarking partner.
Aim - to compare the data and exchange
 ideas on the process.
Meeting is informal, to be led by
 demonstration organizations with
 researchers observing.
Best practice will be identified and establish.
NECESSARY UNDERPINNINGS
(SUPPORT) OF BENCHMARKING

1. Time management.
2. Communications.
3. Formal vs. informal approaches.
4. Confidentiality and Learning organization.
1. TIME MANAGEMENT
Consuming time might be better spent on other
 task or more important matters.
To survive, libraries must give up the quick fix
 philosophy and understand the change is now
 the norm and stability is a thing of the past.
Quality management is a gradual or organic
 process involve cultural change and holistic
 approach to management.
benchmarking   is time consuming process,
 requires planning, team work and frequent
2.COMMUNICATIONS


essential for quality management initiative,
 lines of communications may affect location
 of the library, availability of channels of
 communication e.g. E-mail, telephone, fax
 et.al.
Meetings between senior management and
 staff involved in the exercise should be
 setup in advanced and reporting mechanism
 in place.
3. FORMAL VS. INFORMAL
           APPROACHES
• Formal methods are:
   theoretical
   impractical
   bureaucratic.
• Informal methods of evaluation may be used such as:
    Regular team meetings and storming sessions.
   Service level agreements; service standards.
   Student course evaluation.
   Liaison thru Library Advisory Committee.
   Course review document.
   Informal comparison of statistics.
   Participation in university wide survey.
   Access the board comparison with a member of other
4. CONFIDENTIALITY AND
   LEARNING ORGANIZATION

compare work practices and establish best
 practices.
areas of concern : confidentiality as a
 problem.
misapprehensions      : information about
 procedures are compared and no need for
 confidential information to be implicated.
those who are apprehensive about showing
 information are not ready to participate in
TYPES OF BENCHMARKING
Competitive benchmarking
Functional benchmarking
Product benchmarking
Process benchmarking
Best practices benchmarking
Strategic benchmarking
Performance benchmarking
Financial benchmarking
COMPETITIVE
        BENCHMARKING
Comparison of performance among
 direct competitors.
           FUNCTIONAL
Uses SWOT analysis.

        BENCHMARKING

Single function benchmarking is to
improve the operation if that particular
function.
Complex functions are directly
comparable in cost and efficiency
PRODUCT BENCHMARKING
Process of designing new products or
 upgrades to new ones.
Comparison of processes.

PROCESS BENCHMARKING
Focuses on discrete work
processes and operating systems.
Identify most effective operating
practices.
Power lies in its ability to produce
BEST PRACTICES BENCHMARKING
Don’t reinvent what others have learnt
 to do better!
Borrow shamelessly!
Adopt, adapt, advance!
Imitate creatively!
Adapt innovatively!
 FINANCIAL BENCHAMRKING
 Performing financial
 analysis.
 Comparing the
STRATEGIC BENCHMARKING
 Identify winning strategies.
 Influences the longer term competitive
  patterns of the company.
PERFORMANCE BENCHMARKING
  Enable managers to assess their
  competitive positions.
  Focus on elements.
  Primary techniques are applied.
REASONS FOR BENCHMARKING
cost comparison.
reduction in turn around times.
reduction in error rates.
establishing meaningful performance
 indicators /realistic output measures.
feasibility of collaboration to achieve
 cost saving.
investigate in sourcing, outsourcing
 and collaborative opportunities.
establish individual performance
REASONS FOR BENCHMARKING

explore appropriate roles and activities
 of cataloguers.
develop improved outcomes for
 customers.
pilot benchmarking / instill value of
 benchmarking.
as an instrument to achieve change.
develop bet practice model.
validation measure.
develop statements of good practice.
PROBLEMS WITH
        BENCHMARKING

 Problems   with   benchmarking   occur
 where
 Data is not obtained for the process
  being measured – and analysis
  becomes subjective
 No peer group/best practice identified
  (including data available)
 The gap between current state and
  best practice is captured but nothing
  is done about it
 Assumed best practice isn't best
APPLICATIONS AND
           BENEFITS
Improves organizational quality.
Leads to lower cost positions.
Creates buy-in for change.
Exposes people to new ideas.
Broadens the organization’s operation
 perspective.
Creates a culture open to new ideas.
Serves as a catalyst to learning.
Tests the rigor of internal operating
 targets.
APPLICATIONS AND
           BENEFITS
Raises the organization’s level of
 maximum potential performance.
Setting and refining strategy.
Reengineering work processes &
 business systems.
Continuous improvement of work
 processes and business systems.
Strategic planning and work setting.
Problem solving.
Education and idea enrichment.
CRITICAL SUCCESS
           FACTORS
 Adopt,  adapt & advance: a well
 designed performance measurement
 and benchmark system is essential, but
 there are other critical success factors:
 Senior management support.
 Benchmarking training for the project
   team.
 Useful      information      technology
   systems.
 Cultural practices that encourage
LIBRARY PROCEDURES
SCOPE:
    Acquisition of Books Purchase

GENERAL POLICIES AND
 GUIDELINES:
     Determination of the educational
 resources of the SHL library is a
 professional    consideration      of  great
 magnitude,      requiring the cooperative
 efforts of the acquisition librarian and the
 faculty members with the College deans
PROCEDURES
1. The Director of Libraries directs the
   Acquisition Librarian to invite book
   suppliers in batches and assigns
   staffs to attend book fairs and
   coordinates with the College Deans for
   faculty members to attend book fairs
2. The Property Officer receives books
   from suppliers
3. The Acquisition Librarian segregates
   books per college and prepares book
   acquisition to go with the books
PROCEDURES
6. The          College         Secretary
   returns/transmits    all   books     to
   Acquisition Librarian
7. The Director of Libraries re-evaluates
   books recommended and endorse
   acquisition
8. The Acquisition Librarian prepares list
   of books as “recommended” and “not
   recommended”       per   supplier    in
   triplicate
9. The Acquisition Librarian transmits all
   books to Property Office with the duly
PROCEDURES
11. The VP/Treasurer approves the
    P.R./P.O.
12. The Purchasing Officer sends
    approved P.O. to supplier; then
    forward the approved P.O. to Property
    Officer and to Accounting for payment.
13. The Property officer returns books
    “not recommended” to suppliers,
    prepares RR for the purchased books
    per the approved P.O. and transmits
    books per approved P.O.
14. The Acquisition Librarian records all
XEROX-12 STEP
BENCHMARKING PROCESS
Phase 1: Planning
  1. Identify what to benchmark.
  2. Identify comparative companies.
  3. Determine data collection method
     and collect data.
Phase 2: Analysis
  4. Determine current performance gap.
  5. Project future performance levels.
Phase 3: Integration
  6. Communicate finding and gain
XEROX-12 STEP
 BENCHMARKING PROCESS
Phase 4: Action
  8. Develop action plans.
  9. Implement specific actions &
      monitor progress.
  10. Recalibrate benchmarks.
Phase 5: Maturity
  11. Attain leadership positions.
  12. Fully integrate practices into
      processes.
Benchmarking

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Benchmarking

  • 1. BANUPRIYA.J SIVASUBRAMANIAM SUMIYA FATHIMA THANGAPANDIYAN UDAYA SANKAR VINODINI.K.R BENCHMARKING
  • 2. DEFINITIONS OF BENCHMARKING  Benchmarking is the process of comparing the cost, cycle time, productivity or quality of a specific process or method to another that is widely considered to be an industry standard or best practice.  Benchmarking is the process of continually searching for the best methods, practices and processes, and either adopting or adapting their good features and implementing them to become “best of the best.”
  • 3. BENCHMARKING COMPLIANCE(CONFIRMITY) Policy regarding benchmarking protocol should be communicated to all employees employed, prior to contacting external organizations. Guidelines should address the following areas: 1. Misrepresentation. 2. Information requests. 3. Sensitive/proprietary information. 4. Confidentiality.
  • 4. WHEN TO BENCHMARK Benchmark early and often. During design Helps make decisions about table structure, indexes, etc., Know early on if you have sufficient hardware. Before launch. Anytime you’re wondering “which is faster A or B?”
  • 5. WHEN NOT TO BENCHMARK Target is not critical to the core business functions. Customer’s requirement is not clear. Key stakeholders are not involved. Inadequate resources to carry through. No plan for implementing findings. Fear of sharing information with other organizations.
  • 6. PERFORMANCE GAP Performance Performance Gap Time
  • 7. BENCHMARKING PROCESS Planning Improving Collecting Practices Data Analysis
  • 8. 1. PLANNING  Determine the purpose and scope of the project.  Select the process to be benchmarked.  Choose the team.  Define the scope.  Develop a flow chart for the process.  Establish process measures.  Identify benchmarking partners.
  • 9. 2. COLLECTING DATA  Conduct background research to gain thorough understanding on the process and partnering organizations  Use questionnaires to gather information necessary for benchmarking  Conduct site visits if additional information is needed  Conduct interviews if more detail information is needed
  • 10. 3. ANALYSIS  Analyze quantitative data of partnering organizations and your organization.  Analyze qualitative data of partnering organizations and your organization.  Determine the performance gap.
  • 11. 4. IMPROVING PRACTICES  Report findings and brief management.  Develop an improvement implementation plan.  Implement process improvements.  Monitor performance measurements and track progress.  Recalibrate the process as needed.
  • 12. COST OF BENCHMARKING • The three main types of costs are: Visit costs. Time costs. Database costs.
  • 13. APPROACHES TO BENCHMARKING 1. Identify the process to be benchmarked. 2. Establish management commitment to the benchmarking process. 3. Identify and establish the benchmarking team. 4. Define and understand the process to be benchmarked. 5. Identify metrics and collect process
  • 14. 1. IDENTIFY AN APPROPRIATE BENCHMARKING MODEL The generic model is selected as the most appropriate. The approach ensures elements crucial to customer satisfaction. Facilitates an in depth scrutiny of the way operations are currently run. A learning experience. Comparisons with other organizations enable participants to exchange ideas
  • 15. 2. PROCEDURES REPRESENTING THE APPROACH TAKEN Identify a key process, critical to the success of the service. Document or map the sub-process. Take measurements of factors critical to the success of the process. Analyze the results of exercise and identify gaps in performance. Select benchmarking partners, arrange visit to compare the results of the exercise. Identify “best practice” e.g. methods used by
  • 16. 3. SELECTING BENCHMARKING PARTNERS Most difficult aspects of benchmarking. Partners are selected from organizations. Interested in benchmarking and willing to participate in the exercise. Not in competition with the demonstration organization. Formal letter will be sent stating procedures for the exercise to the partners. Demonstration organizations will arrange for
  • 17. 4. THE BENCHMARKING VISIT Meeting is set up by the demonstration and the benchmarking partner. Aim - to compare the data and exchange ideas on the process. Meeting is informal, to be led by demonstration organizations with researchers observing. Best practice will be identified and establish.
  • 18. NECESSARY UNDERPINNINGS (SUPPORT) OF BENCHMARKING 1. Time management. 2. Communications. 3. Formal vs. informal approaches. 4. Confidentiality and Learning organization.
  • 19. 1. TIME MANAGEMENT Consuming time might be better spent on other task or more important matters. To survive, libraries must give up the quick fix philosophy and understand the change is now the norm and stability is a thing of the past. Quality management is a gradual or organic process involve cultural change and holistic approach to management. benchmarking is time consuming process, requires planning, team work and frequent
  • 20. 2.COMMUNICATIONS essential for quality management initiative, lines of communications may affect location of the library, availability of channels of communication e.g. E-mail, telephone, fax et.al. Meetings between senior management and staff involved in the exercise should be setup in advanced and reporting mechanism in place.
  • 21. 3. FORMAL VS. INFORMAL APPROACHES • Formal methods are: theoretical impractical bureaucratic. • Informal methods of evaluation may be used such as:  Regular team meetings and storming sessions. Service level agreements; service standards. Student course evaluation. Liaison thru Library Advisory Committee. Course review document. Informal comparison of statistics. Participation in university wide survey. Access the board comparison with a member of other
  • 22. 4. CONFIDENTIALITY AND LEARNING ORGANIZATION compare work practices and establish best practices. areas of concern : confidentiality as a problem. misapprehensions : information about procedures are compared and no need for confidential information to be implicated. those who are apprehensive about showing information are not ready to participate in
  • 23. TYPES OF BENCHMARKING Competitive benchmarking Functional benchmarking Product benchmarking Process benchmarking Best practices benchmarking Strategic benchmarking Performance benchmarking Financial benchmarking
  • 24. COMPETITIVE BENCHMARKING Comparison of performance among direct competitors. FUNCTIONAL Uses SWOT analysis. BENCHMARKING Single function benchmarking is to improve the operation if that particular function. Complex functions are directly comparable in cost and efficiency
  • 25. PRODUCT BENCHMARKING Process of designing new products or upgrades to new ones. Comparison of processes. PROCESS BENCHMARKING Focuses on discrete work processes and operating systems. Identify most effective operating practices. Power lies in its ability to produce
  • 26. BEST PRACTICES BENCHMARKING Don’t reinvent what others have learnt to do better! Borrow shamelessly! Adopt, adapt, advance! Imitate creatively! Adapt innovatively! FINANCIAL BENCHAMRKING Performing financial analysis. Comparing the
  • 27. STRATEGIC BENCHMARKING Identify winning strategies. Influences the longer term competitive patterns of the company. PERFORMANCE BENCHMARKING Enable managers to assess their competitive positions. Focus on elements. Primary techniques are applied.
  • 28. REASONS FOR BENCHMARKING cost comparison. reduction in turn around times. reduction in error rates. establishing meaningful performance indicators /realistic output measures. feasibility of collaboration to achieve cost saving. investigate in sourcing, outsourcing and collaborative opportunities. establish individual performance
  • 29. REASONS FOR BENCHMARKING explore appropriate roles and activities of cataloguers. develop improved outcomes for customers. pilot benchmarking / instill value of benchmarking. as an instrument to achieve change. develop bet practice model. validation measure. develop statements of good practice.
  • 30. PROBLEMS WITH BENCHMARKING  Problems with benchmarking occur where Data is not obtained for the process being measured – and analysis becomes subjective No peer group/best practice identified (including data available) The gap between current state and best practice is captured but nothing is done about it Assumed best practice isn't best
  • 31. APPLICATIONS AND BENEFITS Improves organizational quality. Leads to lower cost positions. Creates buy-in for change. Exposes people to new ideas. Broadens the organization’s operation perspective. Creates a culture open to new ideas. Serves as a catalyst to learning. Tests the rigor of internal operating targets.
  • 32. APPLICATIONS AND BENEFITS Raises the organization’s level of maximum potential performance. Setting and refining strategy. Reengineering work processes & business systems. Continuous improvement of work processes and business systems. Strategic planning and work setting. Problem solving. Education and idea enrichment.
  • 33. CRITICAL SUCCESS FACTORS  Adopt, adapt & advance: a well designed performance measurement and benchmark system is essential, but there are other critical success factors: Senior management support. Benchmarking training for the project team. Useful information technology systems. Cultural practices that encourage
  • 34.
  • 35. LIBRARY PROCEDURES SCOPE: Acquisition of Books Purchase GENERAL POLICIES AND GUIDELINES: Determination of the educational resources of the SHL library is a professional consideration of great magnitude, requiring the cooperative efforts of the acquisition librarian and the faculty members with the College deans
  • 36. PROCEDURES 1. The Director of Libraries directs the Acquisition Librarian to invite book suppliers in batches and assigns staffs to attend book fairs and coordinates with the College Deans for faculty members to attend book fairs 2. The Property Officer receives books from suppliers 3. The Acquisition Librarian segregates books per college and prepares book acquisition to go with the books
  • 37. PROCEDURES 6. The College Secretary returns/transmits all books to Acquisition Librarian 7. The Director of Libraries re-evaluates books recommended and endorse acquisition 8. The Acquisition Librarian prepares list of books as “recommended” and “not recommended” per supplier in triplicate 9. The Acquisition Librarian transmits all books to Property Office with the duly
  • 38. PROCEDURES 11. The VP/Treasurer approves the P.R./P.O. 12. The Purchasing Officer sends approved P.O. to supplier; then forward the approved P.O. to Property Officer and to Accounting for payment. 13. The Property officer returns books “not recommended” to suppliers, prepares RR for the purchased books per the approved P.O. and transmits books per approved P.O. 14. The Acquisition Librarian records all
  • 39.
  • 40.
  • 41. XEROX-12 STEP BENCHMARKING PROCESS Phase 1: Planning 1. Identify what to benchmark. 2. Identify comparative companies. 3. Determine data collection method and collect data. Phase 2: Analysis 4. Determine current performance gap. 5. Project future performance levels. Phase 3: Integration 6. Communicate finding and gain
  • 42. XEROX-12 STEP BENCHMARKING PROCESS Phase 4: Action 8. Develop action plans. 9. Implement specific actions & monitor progress. 10. Recalibrate benchmarks. Phase 5: Maturity 11. Attain leadership positions. 12. Fully integrate practices into processes.