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ACKNOWLEDGEMENTS
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We would like to thank PRAVEEN NAGPAL MADAM for providing us with an opportunity to work on the project and also for her help and guidance.

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INDEX
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TOPIC

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Motion studies
In contrast to, and motivated by, Taylors time study methods, the Gilbreths proposed a technical language, allowing for the analysis of the labor process in a scientific context.[23] The Gilbreths made use of scientific insights to develop a study method based upon the analysis of work motions, consisting in part of filming the details of a workers activities while recording the time.[24] The films served two main purposes. One was the visual record of how work had been done, emphasising areas for improvement. Secondly, the films also served the purpose of training workers about the best way to perform their work.[25] This method allowed the Gilbreths to build on the best elements of these work flows and to create a standardized best practice.[26] Taylor Vs. the Gilbreths Although for Taylor motion study remained subordinate to time study, the attention he paid to it demonstrated the seriousness with which he considered the Gilbreths method. The split with Taylor in 1914 on the basis of attitudes to workers meant the Gilbreths had to argue contrary to the trade unionists, government commissions and Robert Hoxie[27] who believed scientific management was unstoppable.[28] The Gilbreths were charged with the task of proving that motion study particularly, and scientific management generally, increased industrial output in ways which improved and did not detract from workers' mental and physical strength. This was no simple task given the propaganda fuelling the Hoxie report and the consequent union opposition to scientific management. In addition, the Gilbreths credibility and academic success continued to be hampered by Taylor who held the view that motion studies were nothing more than a continuation of his work. While both Taylor and the Gilbreths continue to be criticized for their respective work, it should be remembered that they were writing at a time of industrial reorganization and the emergence of large, complex organizations with new forms of technology. Furthermore, to equate scientific management merely with time and motion study and consequently labor control not only misconceives the scope of scientific management, but also misinterprets Taylors incentives for proposing a different style of managerial thought.[29

Ergonomics Ergonomics is the study of designing equipment and devices that fit the human body, its movements, and its cognitive abilities. The International Ergonomics Association defines ergonomics as follows: Ergonomics (or human factors) is the scientific discipline concerned with the understanding of interactions among humans and other elements of a system, and the profession that applies theory, principles, data and methods to design in order to optimize human well-being and overall system performance. Ergonomics is employed to fulfill the two goals of health and productivity. It is relevant in the design of such things as safe furniture and easy-to-use interfaces to machines and equipment. Proper ergonomic design is necessary to prevent repetitive strain injuries, which can develop over time and can lead to long-term disability. Overview Ergonomics is concerned with the fit between the user, equipment and their environments. It takes account of the user's capabilities and limitations in seeking to ensure that tasks, functions, information and the environment suit each user. To assess the fit between a person and the used technology, ergonomists consider the job (activity) being done and the demands on the user; the equipment used (its size, shape, and how appropriate it is for the task), and the information used (how it is presented, accessed, and changed). Ergonomics draws on many disciplines in its study of humans and their environments, including anthropometry, biomechanics, mechanical engineering, industrial

engineering, industrial design, information design, kinesiology, physiology and psychology. Typically, an ergonomist will have a BA or BS or BD in Psychology, Industrial/Mechanical Engineering or Industrial Design or Health Sciences, and usually an MA, MS or PhD in a related discipline. Many universities offer Master of Science degrees in Ergonomics, while some offer Master of Ergonomics or Master of Human Factors degrees. In the 2000s, occupational therapists have been moving into the field of ergonomics and the field has been heralded as one of the top ten emerging practice areas.[3] According to the International Ergonomics Association within the discipline of ergonomics there exist domains of specialization:
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Physical ergonomics: is concerned with human anatomy, and some of the anthropometric, physiological and bio mechanical characteristics as they relate to physical activity. Cognitive ergonomics: is concerned with mental processes, such as perception, memory, reasoning, and motor response, as they affect interactions among humans and other elements of a system. (Relevant topics include mental workload, decision-making, skilled performance, human-computer interaction, human reliability, work stress and training as these may relate to human-system and Human-Computer Interaction design.) Organizational ergonomics: is concerned with the optimization of socio technical systems, including their organizational structures, policies, and processes.(Relevant topics include communication, crew resource management, work design, design of working times, teamwork, participatory design, community ergonomics, cooperative work, new work programs, virtual organizations, telework, and quality management.)

History and etymology

The foundations of the science of ergonomics appear to have been laid within the context of the culture of Ancient Greece. A good deal of evidence indicates that Greek civilization in the 5th century BC used ergonomic principles in the design of their tools, jobs, and workplaces. One outstanding example of this can be found in the description Hippocrates gave of how a surgeon's workplace should be designed and how the tools he uses should be arranged (see Marmaras, Poulakakis and Papakostopoulos, 1999).[4] It is also true that archaeological records of the early Egyptians Dynasties made tools, household equipment, among others that illustrated ergonomic principles. It is therefore questionable whether the claim by Marmaras, et al., regarding the origin of ergonomics, can be justified (I G Okorji, 2009). The term ergonomics, from Greek , meaning "work", and , meaning "natural laws", first entered the modern lexicon when Wojciech Jastrz bowski used the word in his 1857 article Rys ergonomji czyli nauki o pracy, opartej na prawdach poczerpni tych z Nauki Przyrody (The Outline of Ergonomics, i.e. Science of Work, Based on the Truths Taken from the Natural Science). The coining of the term Ergonomics, however, is now widely attributed to British psychologist Hywel Murrell, at the 1949 meeting at the UK's Admiralty, which led to the foundation of The Ergonomics Society. He used it to encompass the studies in which he had been engaged during and after the II World War. Applications More than twenty technical subgroups within the Human Factors and Ergonomics Society[5] (HFES) indicate the range of applications for ergonomics. Human factors engineering continues to be successfully applied in the fields of aerospace, aging, health care, IT, product design, transportation, training, nuclear and virtual environments, among others. Kim Vicente, a University of Toronto Professor of Ergonomics, argues that the nuclear disaster in Chernobyl is attributable to plant designers not paying enough attention to human factors. "The operators were trained but the complexity of the reactor and the control panels nevertheless outstripped their ability to grasp what they were seeing [during the prelude to the disaster]."
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Physical ergonomics is important in the medical field, particularly to those diagnosed with physiological ailments or disorders such as arthritis (both chronic and temporary) or carpal tunnel syndrome. Pressure that is insignificant or imperceptible to those unaffected by these disorders may be very painful, or render a device unusable, for those who are. Many ergonomically designed products are also used or recommended to treat or prevent such disorders, and to treat pressure-related chronic pain. Human factors issues arise in simple systems and consumer products as well. Some examples include cellular telephones and other hand held devices that continue to shrink yet grow more complex (a phenomenon referred to as "creeping featurism"), millions of VCRs blinking "12:00" across the world because very few people can figure out how to program them, or alarm clocks that allow sleepy users to inadvertently turn off the alarm when they mean to hit 'snooze'. A user-centered design (UCD), also known as a systems approach or the usability engineering life cycle aims to improve the user-system. Design of ergonomics experiments There is a specific series of steps that should be used in order to properly design an ergonomics experiment. First, one should select a problem that has practical impact. The problem should support or test a current theory. The user should select one or a few dependent variable(s) which usually measures safety, health, and/or physiological performance. Independent variable(s) should also be chosen at different levels. Normally, this involves paid participants, the existing environment, equipment, and/or software. When testing the users, one should give careful instructions describing the method or task and then get voluntary consent. The user should recognize all the possible combination's and interactions to notice the many differences that could occur. Multiple observations and trials should be conducted and compared to maximize the best results. Once completed, redesigning within and between subjects should be done to vary the data. It is often that permission is needed from the Institutional Review Board before an experiment can be done. A mathematical model should be used so that the data will be clear once the experiment is completed.
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The experiment starts with a pilot test. Make sure in advance that the subjects understand the test, the equipment works, and that the test is able to be finished within the given time. When the experiment actually begins, the subjects should be paid for their work. All times and other measurements should be carefully measured and recorded. Once all the data is compiled, it should be analyzed, reduced, and formatted in the right way. A report explaining the experiment should be written. It should often display statistics including an ANOVA table, plots, and means of central tendency. A final paper should be written and edited ,after numerous drafts to ensure an adequate report is the final product. Ergonomics in the workplace Bilaterally symmetric operating areas of the stationary human body Outside of the discipline itself, the term 'ergonomics' is generally used to refer to physical ergonomics as it relates to the workplace (as in for example ergonomic chairs and keyboards). Ergonomics in the workplace has to do largely with the safety of employees, both long and short-term. Ergonomics can help reduce costs by improving safety. This would decrease the money paid out in workers compensation. For example, over five million workers sustain overextension injuries per year. Through ergonomics, workplaces can be designed so that workers do not have to overextend themselves and the manufacturing industry could save billions in workers compensation. Workplaces may either take the reactive or proactive approach when applying ergonomics practices. Reactive ergonomics is when something needs to be fixed, and corrective action is taken. Proactive ergonomics is the process of seeking areas that could be improved and fixing the issues before they become a large problem. Problems may be fixed through equipment design, task design, or environmental design. Equipment design changes the actual, physical devices used by people. Task design changes what people do with the equipment. Environmental design changes the environment in which people work, but not the physical equipment they use.
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Fields of ergonomics Engineering psychology Engineering psychology is an interdisciplinary part of ergonomics and studies the relationships of people to machines, with the intent of improving such relationships. Macro ergonomics Macro ergonomics is an approach to ergonomics that emphasizes a broad system view of design, examining organizational environments, culture, history, and work goals. It deals with the physical design of tools and the environment. It is the study of the society/technology interface and their consequences for relationships, processes, and institutions. It also deals with the optimization of the designs of organizational and work systems through the consideration of personnel, technological, and environmental variables and their interactions. The goal of macroergonomics is a completely efficient work system at both the macro- and micro-ergonomic level which results in improved productivity, and employee satisfaction, health, safety, and commitment. It analyzes the whole system, finds how each element should be placed in the system, and considers all aspects for a fully efficient system. A misplaced element in the system can lead to total failure. History Macro ergonomics, also known as organizational design and management factors, deals with the overall design of work systems. This domain did not begin to receive recognition as a sub-discipline of ergonomics until the beginning of the 1980s. The idea and current perspective of the discipline was the work of the U.S. Human Factors Society Select Committee on the Future of Human Factors, 1980-2000. This committee was formed to analyze trends in all aspects of life and to look at how they would impact ergonomics over the following 20 years. The developments they found include:

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1. Breakthroughs in technology that would change the nature of work, such as the desktop computer, 2. The need for organizations to adapt to the expectations and needs of this more mature workforce, 3. Differences between the post-World War II generation and the older generation regarding their expectations the nature of the new workplace, 4. The inability of solely microergonomics to achieve reductions in losttime accidents and injuries and increases in productivity, 5. Increasing workplace liability litigation based on safety design deficiencies. These predictions have become and continue to become reality. The macroergonomic intervention in the workplace has been particularly effective in establishing a work culture that promotes and sustains performance and safety improvements. Methods[6]
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Cognitive Walkthrough Method: This method is a usability inspection method in which the evaluators can apply user perspective to task scenarios to identify design problems. As applied to macroergonomics, evaluators are able to analyze the usability of work system designs to identify how well a work system is organized and how well the workflow is integrated. ansei Method: This is a method that transforms consumer s responses to new products into design specifications. As applied to macroergonomics, this method can translate employee s responses to changes to a work system into design specifications. High Integration of Technology, Organization, and People (HITOP): This is a manual procedure done step-by-step to apply technological change to the workplace. It allows managers to be more aware of the human and organizational aspects of their technology plans, allowing them to efficiently integrate technology in these contexts.
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Top Modeler: This model helps manufacturing companies identify the organizational changes needed when new technologies are being considered for their process. Computer-integrated Manufacturing, Organization, and People System Design (CIMOP): This model allows for evaluating computer-integrated manufacturing, organization, and people system design based on knowledge of the system. Anthrop technology: This method considers analysis and design modification of systems for the efficient transfer of technology from one culture to another. Systems Analysis Tool (SAT): This is a method to conduct systematic trade-off evaluations of work-system intervention alternatives. Macro ergonomic Analysis of Structure (MAS): This method analyzes the structure of work systems according to their compatibility with unique sociotechnical aspects. Macro ergonomic Analysis and Design (MEAD): This method assesses work-system processes by using a ten-step process. Virtual Manufacturing and Response Surface Methodology (VMRSM): This method uses computerized tools and statistical analysis for workstation design.

Neonatal ergonomics Neonatal ergonomics is the field that studies the newborn's development (premature, ill, low birth weight, or healthy newborn) in his or her environment, whether in a Neonatal Intensive Care Unit or at home, and in an incubator, bed or in Kangaroo Care. This field enhances the quality of life of the baby by using ergonomics principles and best practice by providing sound physical/musculoskeletal, physiological, neurological, and psychological/social/emotional development, and decreasing life threatening events that may be caused by poor habitat/environment, such as bradycardia/apnea of prematurity.

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Seating ergonomics The best way to reduce pressure in the back is to be in a standing position. However, there are times when you need to sit. When sitting, the main part of the body weight is transferred to the seat. Some weight is also transferred to the floor, back rest, and armrests. Where the weight is transferred is the key to a good seat design. When the proper areas are not supported, sitting in a seat all day can put unwanted pressure on the back causing pain. The lumbar (bottom five vertebrate in the spine) needs to be supported to decrease disc pressure. Providing both a seat back that inclines backwards and has a lumbar support is critical to prevent excessive low back pressures. The combination which minimizes pressure on the lower back is having a backrest inclination of 120 degrees and a lumbar support of 5 cm. The 120 degrees inclination means the angle between the seat and the backrest should be 120 degrees. The lumbar support of 5 cm means the chair backrest supports the lumbar by sticking out 5 cm in the lower back area. One drawback to creating an open body angle by moving the backrest backwards is that it takes ones body away from the tasking position, which typically involves leaning inward towards a desk or table. One solution to this problem can be found in the kneeling chair. A proper kneeling chair creates the open body angle by lowering the angle of the lower body, keeping the spine in alignment and the sitter properly positioned to task. The benefit of this position is that if one leans inward, the body angle remains 90 degrees or wider. One mis-perception regarding kneeling chairs is that the body's weight bears on the knees, and thus users with poor knees cannot use the chair. This misperception has led to a generation of kneeling chairs that attempt to correct this by providing a horizontal seating surface with an ancillary knee pad. This design wholly defeats the purpose of the chair. The Variable balans is recognized as being the original modern kneeling chair, from which all subsequent designs have been derived. Created by Peter Opsvik, in the balans, some of the weight bears on the shins, not the knees, but the primary function of the shin rests (knee rests) are to keep one from falling forward out of the chair. Most of the weight remains on the buttocks. Another way to keep the body from falling forward is with a saddle seat. This type of seat is generally seen in some sit stand stools,
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which seek to emulate the riding or saddle position of a horseback rider, the first "job" involving extended periods of sitting. Another key to reducing lumbar disc pressure is the use of armrests. They help by putting the force of your body not entirely on the seat and back rest, but putting some of this pressure on the armrests. Armrest needs to be adjustable in height to assure shoulders are not overstressed. Organizations The International Ergonomics Association (IEA) is a federation of ergonomics and human factors societies from around the world. The mission of the IEA is to elaborate and advance ergonomics science and practice, and to improve the quality of life by expanding its scope of application and contribution to society. As of September 2008, the International Ergonomics Association has 46 federated societies and 2 affiliated societies. The International Society of Automotive Engineers (SAE) is a professional organization for mobility engineering professionals in the aerospace, automotive, and commercial vehicle industries. The Society is a standards development organization for the engineering of powered vehicles of all kinds, including cars, trucks, boats, aircraft, and others. The Society of Automotive Engineers has established a number of standards used in the automotive industry and elsewhere. It encourages the design of vehicles in accordance with established Human Factors principles. It is one the most influential organizations with respect to Ergonomics work in automotive design. This society regularly holds conferences which address topics spanning all aspects of Human Factors/Ergonomics. In the UK the professional body for ergonomists is The Institute of Ergonomics and Human Factors and in the USA it is the Human Factors and Ergonomics Society. In Europe professional certification is managed by the Centre for Registration of European Ergonomists (CREE). In the USA the Board of Certification in Professional Ergonomics performs this function. In Canada the professional body for ergonomists is the Association of Canadian Ergonomists.
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The Human Factors and Ergonomics Society (HFES) is the world's largest organization of professionals devoted to the science of human factors and ergonomics. The Society's mission is to promote the discovery and exchange of knowledge concerning the characteristics of human beings that are applicable to the design of systems and devices of all kinds. In the UK, one organisation which has a long history of the practical application of ergonomics is the Institute of Occupational Medicine (IOM). Founded by the coal industry in 1969, from the outset the IOM employed ergonomics staff to apply ergonomics principles to the design of mining machinery and environments. To this day, the IOM continues ergonomics activities, especially in the fields of musculoskeletal disorders; heat stress and the ergonomics of personal protective equipment (PPE). Like many in occupational ergonomics, the demands and requirements of an ageing UK workforce are a growing concern and interest to IOM ergonomists. Benchmarking Benchmarking is the process of comparing one's business processes and performance metrics to industry bests and/or best practices from other industries. Dimensions typically measured are quality, time and cost. In the process of benchmarking, management identifies the best firms in their industry, or in another industry where similar processes exist, and compare the results and processes of those studied (the "targets") to one's own results and processes. In this way, they learn how well the targets perform and, more importantly, the business processes that explain why these firms are successful. The term benchmarking was first used by cobblers to measure people's feet for shoes. They would place someone's foot on a "bench" and mark it out to make the pattern for the shoes. Benchmarking is used to measure performance using a specific indicator (cost per unit of measure, productivity per unit of measure, cycle time of x per unit of measure or defects per unit of measure) resulting in a metric of performance that is then compared to others.
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Also referred to as "best practice benchmarking" or "process benchmarking", this process is used in management and particularly strategic management, in which organizations evaluate various aspects of their processes in relation to best practice companies' processes, usually within a peer group defined for the purposes of comparison. This then allows organizations to develop plans on how to make improvements or adapt specific best practices, usually with the aim of increasing some aspect of performance. Benchmarking may be a oneoff event, but is often treated as a continuous process in which organizations continually seek to improve their practices. Benefits and use In 2008, a comprehensive survey on benchmarking was commissioned by The Global Benchmarking Network, a network of benchmarking centers representing 22 countries. Over 450 organizations responded from over 40 countries. The results showed that: 1. Mission and Vision Statements and Customer (Client) Surveys are the most used (by 77% of organizations of 20 improvement tools, followed by SWOT analysis(72%), and Informal Benchmarking (68%). Performance Benchmarking was used by 49% and Best Practice Benchmarking by 39%. 2. The tools that are likely to increase in popularity the most over the next three years are Performance Benchmarking, Informal Benchmarking, SWOT, and Best Practice Benchmarking. Over 60% of organizations that are not currently using these tools indicated they are likely to use them in the next three years.

Collaborative benchmarking Benchmarking, originally described as a formal process by Rank Xerox, is usually carried out by individual companies. Sometimes it may be carried out
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collaboratively by groups of companies (e.g. subsidiaries of a multinational in different countries). One example is that of the Dutch municipally-owned water supply companies, which have carried out a voluntary collaborative benchmarking process since 1997 through their industry association. Another example is the UK construction industry which has carried out benchmarking since the late 1990s again through its industry association and with financial support from the UK Government. Procedure There is no single benchmarking process that has been universally adopted. The wide appeal and acceptance of benchmarking has led to the emergence of various benchmarking methodologies. One seminal book on benchmarking is Boxwell's Benchmarking for Competitive Advantage (1994).[2] The first book on benchmarking, written and published by Kaiser Associates,[3] is a practical guide and offers a 7-step approach. Robert Camp (who wrote one of the earliest books on benchmarking in 1989)[4] developed a 12-stage approach to benchmarking. The 12 stage methodology consists of: 1. Select subject 2. Define the process 3. Identify potential partners 4. Identify data sources 5. Collect data and select partners 6. Determine the gap 7. Establish process differences 8. Target future performance 9. Communicate 10. Adjust goal 11. Implement 12. Review and recalibrate

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The following is an example of a typical benchmarking methodology: 1. Identify your problem areas - Because benchmarking can be applied to any business process or function, a range of research techniques may be required. They include: informal conversations with customers, employees, or suppliers; exploratory research techniques such as focus groups; or in-depth marketing research, quantitative research, surveys, questionnaires, re-engineering analysis, process mapping, quality control variance reports, or financial ratio analysis. Before embarking on comparison with other organizations it is essential that you know your own organization's function, processes; base lining performance provides a point against which improvement effort can be measured. 2. Identify other industries that have similar processes - For instance if one were interested in improving hand offs in addiction treatment he/she would try to identify other fields that also have hand off challenges. These could include air traffic control, cell phone switching between towers, transfer of patients from surgery to recovery rooms. 3. Identify organizations that are leaders in these areas - Look for the very best in any industry and in any country. Consult customers, suppliers, financial analysts, trade associations, and magazines to determine which companies are worthy of study. 4. Survey companies for measures and practices - Companies target specific business processes using detailed surveys of measures and practices used to identify business process alternatives and leading companies. Surveys are typically masked to protect confidential data by neutral associations and consultants. 5. Visit the "best practice" companies to identify leading edge practices Companies typically agree to mutually exchange information beneficial to all parties in a benchmarking group and share the results within the group. 6. Implement new and improved business practices - Take the leading edge practices and develop implementation plans which include
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identification of specific opportunities, funding the project and selling the ideas to the organization for the purpose of gaining demonstrated value from the process. Costs The three main types of costs in benchmarking are:
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Visit Costs - This includes hotel rooms, travel costs, meals, a token gift, and lost labor time. Time Costs - Members of the benchmarking team will be investing time in researching problems, finding exceptional companies to study, visits, and implementation. This will take them away from their regular tasks for part of each day so additional staff might be required. Benchmarking Database Costs - Organizations that institutionalize benchmarking into their daily procedures find it is useful to create and maintain a database of best practices and the companies associated with each best practice now.

The cost of benchmarking can substantially be reduced through utilizing the many internet resources that have sprung up over the last few years. These aim to capture benchmarks and best practices from organizations, business sectors and countries to make the benchmarking process much quicker and cheaper. Technical/product benchmarking The technique initially used to compare existing corporate strategies with a view to achieving the best possible performance in new situations (see above), has recently been extended to the comparison of technical products. This process is usually referred to as "technical benchmarking" or "product benchmarking". Its use is well-developed within the automotive industry ("automotive benchmarking"), where it is vital to design products that match precise user expectations, at minimal cost, by applying the best technologies available worldwide. Data is obtained by fully disassembling existing cars and
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their systems. Such analyses were initially carried out in-house by car makers and their suppliers. However, as these analyses are expensive, they are increasingly being outsourced to companies who specialize in this area. Outsourcing has enabled a drastic decrease in costs for each company (by cost sharing) and the development of efficient tools (standards, software). Types
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Process benchmarking - the initiating firm focuses its observation and investigation of business processes with a goal of identifying and observing the best practices from one or more benchmark firms. Activity analysis will be required where the objective is to benchmark cost and efficiency; increasingly applied to back-office processes where outsourcing may be a consideration. Financial benchmarking - performing a financial analysis and comparing the results in an effort to assess your overall competitiveness and productivity. Benchmarking from an investor perspective- extending the benchmarking universe to also compare to peer companies that can be considered alternative investment opportunities from the perspective of an investor. Performance benchmarking - allows the initiator firm to assess their competitive position by comparing products and services with those of target firms. Product benchmarking - the process of designing new products or upgrades to current ones. This process can sometimes involve reverse engineering which is taking apart competitors products to find strengths and weaknesses. Strategic benchmarking - involves observing how others compete. This type is usually not industry specific, meaning it is best to look at other industries. Functional benchmarking - a company will focus its benchmarking on a single function to improve the operation of that particular function. Complex functions such as Human Resources, Finance and Accounting
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and Information and Communication Technology are unlikely to be directly comparable in cost and efficiency terms and may need to be disaggregated into processes to make valid comparison. Best-in-class benchmarking - involves studying the leading competitor or the company that best carries out a specific function. Operational benchmarking - embraces everything from staffing and productivity to office flow and analysis of procedures performed.[5] Energy benchmarking - process of collecting, analysing and relating energy performance data of comparable activities with the purpose of evaluating and comparing performance between or within entities[6]. Entities can include processes, buildings or companies. Benchmarking may be internal between entities within a single organization, or subject to confidentiality restrictions - external between competing entities.

Tools Benchmarking software can be used to organize large and complex amounts of information. Software packages can extend the concept of benchmarking and competitive analysis by allowing individuals to handle such large and complex amounts or strategies. Such tools support different types of benchmarking (see above) and can reduce the above costs significantly. Metric benchmarking Another approach to making comparisons involves using more aggregative cost or production information to identify strong and weak performing units. The two most common forms of quantitative analysis used in metric benchmarking are data envelope analysis (DEA) and regression analysis. DEA estimates the cost level an efficient firm should be able to achieve in a particular market. In infrastructure regulation, DEA can be used to reward companies/operators whose costs are near the efficient frontier with additional profits. Regression analysis estimates what the average firm should be able to achieve. With regression analysis firms that performed better than average can be rewarded while firms that performed worse than average can be penalized.
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Such benchmarking studies are used to create yardstick comparisons, allowing outsiders to evaluate the performance of operators in an industry. A variety of advanced statistical techniques, including stochastic frontier analysis, have been utilized to identify high performers and weak performers in a number of industries, including applications to schools, hospitals, water utilities, and electric utilities. One of the biggest challenges for metric benchmarking is the variety of metric definitions used among different companies and/or divisions. Definitions may also change over time within the same organization due to changes in leadership and priorities. The most useful comparisons can be made when metrics definitions are common between compared units and do not change over time so improvements can be verified.

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