Question

You are a member of a consultant team providing services to Dinosaur, LLC. Dinosaur is considering using benchmarking as it is interested in cost reduction. Your supervisor assigns you to prepare a brief memo explaining benchmarking to Dinosaur's management.

Answer 1

Benchmarking is the process of evaluating own performance and compare with the other business organisations for the purpose of improvement in the organisation’s internal process and performance. These comparisons are mainly related with the quality, time, and cost of production etc. of the other business organisation of same sector. There are different types of benchmarking process which can be used for improving the performance of current business process like process benchmarking, product benchmarking, and strategic benchmarking etc.

Therefore, following are the way that can be used by Dinosaur, LLC for successful implementation of benchmarking:

Process Evaluation: This is required for successful implementation of benchmarking in order to improve the performance of current business process. After evaluation the own business process it should be compare with the other business organisation to find out the process strength of other organisations. Therefore, Dinosaur, LLC can improve the performance of own business process by adopting the strength of other business organisations.

Quality Evaluation: This is also required for improving the performance of the organisation. The quality of product and services are the key activity that may affect the performance of any organisation. After evaluating the quality of own product and services, it should be compare with the other organisation and their products and services. New product and improving the quality of current product and services will help the organisation to gain competitive gain.

Management & Strategy Evaluation: This is also the key factor that may affect the performance of any organisation because the success of any process is mainly depends upon the management and the strategies adopted by any organisation. Therefore, it should be properly evaluated and thereafter should be compare with other successful organisation in order to improving the quality of product and services by controlled management and better strategies.