FOUR STAGES OF BENCHMARKING; 

While each stage is important and must be completed thoroughly, the more time spent at the planning stage the less is likely to be wasted later on.  

        Relevant figure of stages could be found here. 

4.1      STAGE 1: Planning 

Step 1: 

Select the broad subject area in which to benchmark- manufacturing, warehousing, marketing, for example. 

Step 2: 

Define the process within that subject area which is to be benchmarked- e.g. changeover time, picking, or a new product launch 

Step 3: 

Preliminary identify the potential partners against which benchmarking may be possible and beneficial. 

Step 4: 

Identify the most likely sources of data substantiate initial perceptions and select the most appropriate method of collection. 

  

4.2      STAGE 2: Analyses

Step 5: 

Collect the data and from this confirm the most likely benchmark partners which should be contacted. 

Step 6: 

Determine the gap between the existing performance and that produced by the benchmark company. Contact and arrange to visit the benchmark company to validate or substantiate information. 

Step 7: 

Compare the existing process with that at the benchmark company and establish the differences, enhancements and modifications. 

Step 8: 

Target future performance to take into account process improvemnts. 

  

4.3      STAGE 3: Action

Step 9: 

Communicate benchmarking objectives and results throughout the organization, the outside world and the benchmarking partner where possible and relevant. 

Step 10: 

Adjust goals in the light of desired performance improvemnts stimulated by comparison with benchmark partner, and develop corrective improvemnt plans to achieve these. 

Step 11: 

Implement and monitor the corrective improvement plans. 

Step 12: 

Review progress and calibrate performance improvements and targets. 

  

4.4      STAGE 4: Review and Recyle 

It is the last of the 12 squential steps in the process of benchmarking, but it also interweaves at various points throughout the Planning, Analysis and Action Stages. 

For example, collecting the data and selecting benchmark partners (Step 5) may throw up some information previously not available to help identify potential benchmarking partners (Step 3) which necessitates a Review of the partners previously listed.