BENCHMA

RKING
Andres, David
Azucena, Angela
Calumpong, Raphael
Carreras, Jeremy
David, Jaydee
Romana, Jose
Vergel, Lorenzo
 TABLE OF CONTENTS

1. Introduction
1.1 Benchmarking meaning
1.2 Benchmarking definition
2. Discussion
2.1 Importance of Benchmarking
2.2 Benchmarking types
2.3 Benchmarking Process
2.4 Companies that use benchmarking
2.5 Advantages and disadvantages of benchmarking
3. Conclusion
4. Article
5. Interview
6. Bibliography/References
What is benchmarking?
Benchmarking is the process of
measuring an organization’s internal
processes then identifying,
understanding and adapting
outstanding practices from other
organizations considered to be best-
in-class
DEFINI
TION
The systematic search for the best
practices, innovative ideas, and highly
effective operating procedures

“Measuring our performance against

that of the best-in-class companies,
determining how the best-in-class
achieve those performance levels using
the information as a basis for our own
company’s targets, strategies and
implementation.”
IMPORTAN
CE OF
BENCHMA
RKING
 IMPORTANCE
Benchmarking is a increasingly effective popular tool
used extensively in both manufacturing and service
organizations to:
➢ Obtain external perspective of
what is possible
➢ Assist in Setting Strategic
Targets
➢ Promote improvements in
performance
➢ Establish a competitive edge
➢ Reduce cost
➢ Improve employee morale
➢ Achieve quality awards
➢ Survive
WHEN TO
BENCHMA
RK
➢ If the company’s Quality Management
WHEN
System is not properly developed and
implemented
If company’s opportunities are not
measured
If customers needs are not assessed
and rectified
If company’s great strength and
weaknesses areas are not measured
TYPES OF
BENCHMA
RKING
 Benchmarking types

Strategic Process
benchmarking benchmarking

It is used when businesses need to It is used by the organization when

the focus is on improving specific
improve overall performance by
critical processes and operations
examining general approaches used
by high performers
Functional External
benchmarking benchmarking

Used when organizations look to Comparing the methods and

benchmark with partners drawn from performance of the organization with
different business sectors or areas of other competitors in the industry.
activity
 Benchmarking types

Internal Competitive
benchmarking benchmarking

Comparing methods and Performance is compared with direct

performance inside the organization. competitors by considering their
Performance of various departments positions in relation to performance
are compared to the various characteristics of key products and
locations within the organization services.
International
benchmarking

Thus is used when the best

practitioners are located in other
countries. This is due to globalization
and advances in information
technology
BENCHMA
RKING
Process
 Benchmarking Process

1. planning 2. Analysis

Determining subjects to be Assessing the strengths of best

benchmarked by identifying relevant practice companies and compare the
best practices that other companies org’s performance with that of its
use and developing the most competitors to determine gaps
appropriate data collection technique present between the two

3. integration 4. action

Establishing necessary goals, on the Implementing action plans

basis of data collected, to attain best established and assess them
performance then integrate to
periodically to determine whether
company’s formal planning
processes. the company is achieving its
objectives. Deviations are also
 Benchmarking Process

5. Maturity

Determining whether the company

has reached a superior level. This
stage also determines if the
benchmarking process has become
an integral part in the operation of
the business
Companie
s that use
benchmar
king
General
electrica,
Google, and
starbucks
 General
electrica
General Electric is recognized as the
benchmarking firm when it comes to
performance culture, and that is how they
have achieved having the best overall
talent management strategy.
 google
Taken from Google support’s website, their
definition of benchmarking means allowing
one’s company to compare and contrast
other companies’ data within the same
industry.
 starbucks
Starbucks’s supply chain has improved
drastically due to benchmarking. After
Starbucks focused on revamping their
supply chain, their performance went up by
as much as 90% and that mark is still
continuously improving until this day.
Advantage
s and
disadvant
ages
- Help you gain an independent perspective
advantages
about how well your organization is
performing compared to other companies
- Makes you find performance gaps and
identify areas for improvement
- Gives a mindset of continuous improvement
to your work culture
- Sets expectations for organization
performance
- Monitor organization performance to
manage and implement changes.
 disadvantage
- Lack of information regarding
companies’ performance and data
other
s
- Increases tendency to copy other
companies’ work
- Some companies ought to rely more on
other companies’ work in order to be
successful
- Decreases the chance for a company to
have its own unique way of handling their
operations
- May be costly since it requires a team of
personnel with excellent analytical skills
thus adding more expense to the company
conclusion
Benchmarking is a way for industries to improve on
their products and taking internal opportunities
through comparison. Comparing is not always bad
because it can have benefits especially if companies
are looking to be more competitive. Benchmarking
for industries to analyze what they have compared to
what others have so that they can improve and
increase their competition to enhance the direction of
their companies performance. Benchmarking is also a
good way to distinguish your company from others. It
allows you to focus on your best practices from your
competitors. The point of it is not just competition but
internal improvement of the company.
 article

https://academicjournals.org/journal/AJBM/article-full-t
ext-pdf/94C94A923521
 interview

Mr. Joey S. Romana is the Vice President Director (Country

Manager) of Darya-Varia Laboratoria, Tbk. Indonesia. It is a
partner company of the well-known Unilab here in the Philippines.
DVL is a pharmaceutical company involved in manufacturing, sale
and distribution of quality pharmaceutical and personal care
products in Indonesia. The company also exports products to
Unilab and its affiliates in other parts of Asia. DVL also contract
manufactures for other pharma and consumer companies. (e.g.
P&G, Sanofi)
 What is benchmarking in your
own words

Benchmarking means measuring or comparing

your company performance or processes versus
the industry, competitors, or even against
historical performance of the company.
 Does your company use it? If
so, how?

Our company DVL, uses benchmarking to gauge the performance of the company. Some
examples of benchmarking we use include the following:
Sales Benchmark:
a. Sales growth vs. pharmaceutical industry's sales growth
b. Sales growth vs average historical growth of past 3 years
Profitability:
c. Gross profit growth vs pharmaceutical industry's sales growth
d. Profit growth vs average historical growth rate of past 3 years
Manufacturing:
e. Company Good Manufacturing Process systems adopted by the Food and Drug
administration that assure proper design, monitoring, and control of manufacturing
processes and facilities
f. International standard organization to measure manufacturing quality process versus
global standards
 Would you recommend other
companies using this method

Yes, it would be easier to track and measure performance of the company and its
employees (for salary increase and bonuses, even promotion). I would
recommend it to all pharmaceutical companies since most of the pharmaceutical
products are life saving products and it is necessary to benchmark
manufacturing process and product quality for the best healthcare.
 What advantages/disadvantages did
benchmarking give you with your
experience

Advantage: Definite goals and objectives are set. Provides measures for
company and employee performance.
Disadvantage: being ISO certified for manufacturing process and quality is
expensive and requires a lot of time and resources.
 What processes did you go through for
benchmarking your company

Planning, identifying benchmarks and company capabilities,

execution and evaluation process (quarterly and at the end of
the year).
 bibliography/references

Foley, A., & Buster, M. (2019, February 6). 4 Types Of Benchmarking In Healthcare (& The Benefits Of Each). Retrieved from
https://www.clearpointstrategy.com/4-types-of-benchmarking-in-healthcare-benefits-of-each/

Jaiswal, V. (2015, November 2). Xerox - Benchmarking. Retrieved from https://www.slideshare.net/VikashJais/xerox-benchmarking-54654048

Patrick Gleeson, P. (2019, March 04). Examples of Benchmarking. Retrieved March 16, 2020, from
https://smallbusiness.chron.com/examples-benchmarking-81426.html

Process Benchmarking: IBNET English. (n.d.). Retrieved from

https://www.ib-net.org/benchmarking-methodologies/other-benchmarking-methodologies/process-benchmarking/

Reddy, C. (2020, January 20). Benchmarking: Types, Features, Purpose & Limitations. Retrieved from
https://content.wisestep.com/benchmarking-types-features-purpose-limitations/

What is Benchmarking? Definition, Types, Process ... (n.d.). Retrieved March 16, 2020, from https://theinvestorsbook.com/benchmarking.html
THANK
S
Does anyone have any questions?

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