Benchmarking for Business :

Benchmarking is essential for comparing company’s business performance metrics to best industry business performance metrics. Measures are productivity, efficiency, quality, cost and delivery. Improvements mean doing things better, faster, and cheaper. Benchmarking is mostly used to measure performance using a specific indicator resulting in a metric of performance that is then compared to others. Organization has to develop plans to make improvements or adopt specific best practices with the aim of increasing trend of performance. Cobblers used benchmarking to measure people's feet for shoes. They place foot on a "bench" and mark it out to make the pattern for the shoes. Benchmarking is mostly used for the key performance indicators of the business. Benchmarking shows the status of the key performance indicators, whether we are in green zone or in red zone. Green zone means we achieved Key performance indicator (KPI) i.e. we achieved KPI above the target value means we are in green zone. If KPI is below the target value we are in red zone. To achieve KPI we have to prepare action plan that in what way we are going to achieve KPI. To achieve KPI we have to initiate Continual Improvement Projects .CI Project is an ongoing effort to improve products, services or processes.. These CI projects are for the period of three to six months. To complete the projects tools are used i.e. 5S, TPM, Quality circles, Kaizen, Poka-yokes, etc.