Benchmarking

Is defined by CIMA as The Establishment, through and through data gathering of targets and comparators, through whose use relative levels of performance (and under performance) can be identified. CIMA, 2008 This definition explains in my mind that benchmarking is the proportion of one/ several federations comparison of relative factors to anothers. Therefore seeing how a companys best practise differs to your own. There ar several types of benchmarking that a company may use Internal, Functional, Competitive and Strategic.A company may use internal benchmarking to compare different processes within the same departments. If they use functional benchmarking then they are mainly looking their departments and which runs better regardless of their different outputs. Competitive benchmarking is information gathered about direct competitors and finally strategic is a longer edge benchmark technique. This is used for companies looking for organisational change.The main advantage for ben chmarking is to set the foundation for performance improvement to help better competitors Nayab, 2010 and overall be the best company in the Market place. On the other hand a disadvantage is how readily available is all the information you require to benchmark? Business emergence Re-engineering Is defined by Drury as examining business processes and making substantial changes to how the company operates. Drury C, 2008 BPR is a major tool used by business because they want gains in performance and quality, and they need to cost reductions to strive for profit maximisation.When re-engineering processes they look at what has been done and try to improve it. A typical example may be Building a car by hand takes a considerable long time, however if they changed the process to the car being built by a robot, then they could increase performance and quality. However there are many negatives to usage of BPR. It has an uncertain result because it is an all or nothing technique (high risk). In addition it is said that