Complete guide to understanding the role of benchmarking in Six Sigma
Benchmarking: What is it?
When you mention the word “benchmarking” how do ordinary people process it? Moreover, what’s “ordinary”? That looks like an honest subject for benchmarking. Someone building a computer might imagine of microprocessors and memory modules. These metrics change after you want to induce the fastest processor and dependable memory that you just can afford. However, life gets easier after we address the benchmarking sites. But alas, what will we find after we look deeply into the details? We see all kinds of irregularities. Different systems used for various memory modules. Well, meaning different buses and different processors, which might really skew the results. to not mention differences in temperature on interchangeable systems after you test several modules in a very row. The same happens to entrepreneur in their normal lives. A decision-maker that's unacquainted with six-sigma has to know what to try and do first. This dilemma is particularly the case in start-ups and little companies able to grow and be competitive on a bigger scale. Executives depend on their own experiences. Benchmarking gets confused with competitor analysis. In competitor analysis, how are you able to find all of the critical details? Who will share these details? So, the chief committee performs an ad-hoc analysis. Perhaps opinions are gathered from material experts within the company. And even after you make critical decisions, you notice no improvements. Many companies fail at now. Now here comes the Six Sigma professional, that jack of all trades within the misunderstood world of Continuous Improvement. we all know the deal; the proper tools for the proper job. Competitor analysis has its time and place, but that comes after a company’s processes are well- entrenched. So that’s where benchmarking comes in.
What is the objective of Benchmarking in Six Sigma?
Benchmarking may be a method that companies use to check the performance of their output thereto of a customary. the method of benchmarking is performed as a Six-Sigma DMAIC project. During the measurement phase, the “company” benchmarks the “standard.” The standard is also a compliance standard employed in the business, or it's going to be an industry leader. For this discussion, the quality are going to be an industry leader. It’ll have similar outputs, but a distinct customer base. The standard is also a vendor or a customer, but not a competitor. Outputs is also a process, a service, or a product. Benchmarking isn't competitor research that compares the performance of a competitor company to achieve a bonus. It’s a process of correlate your processes with an industry leader to find out a way to be better. Benchmarking affords a competitive edge through the event of best practices. So it focuses on the best
Types of Benchmarking
Benchmarking comes in four types:
1. Strategic This benchmark investigates how companies compete within the marketplace. the corporate and therefore the standard is also from different industries. Albeit, the competitive positioning within an industry should be the identical.
2. Project This benchmark examine techniques, like project management and products inauguration. Again, the corporate and therefore the standard can come from different industries. Development cycles should be similar in complication and time.
3. Performance This benchmark is an assessment of competitive positioning. the main focus would be either on price or quality. an organization can rarely be challenge while specializing in both.
4. Process The process is that the actual work. it's going to consider best-operating method, customer service, or manufacturing.