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Tag: TQM Tools

Benchmark As TQM Tools

Posted in Total Quality Management

Benchmark is the process of comparing the performance of business processes and metrics including cost, cycle time, productivity, or other qualities that are widely regarded as the industry standard benchmark or best practice. Basically, Benchmark provides a snapshot of the performance of your business and help you understand where you are in relation to a particular standard.

Type of Benchmark

• Process benchmarking – start a company that focused on the observation and investigation of business processes with the goal of identifying and observing the best practices from one or more benchmark firms. Activity analysis will be required where the objective is to compare the costs and efficiency; increasingly applied to back-office processes where outsourcing may be a consideration.
• Financial benchmarking – financial analysis and comparing the results in an attempt to assess the overall competitiveness and productivity.
• Benchmarking from an investor perspective comparisons broaden the perspective of the universe to also compare with peer companies that can be considered as an alternative investment opportunities from the perspective of an investor.