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Benchmarking is a one of the component that used by our company in the total quality management. Benchmarking including choosing a standard of performance, products, services, costs or practices that represents the ideal performance. In short, benchmarking is the identification of best ways to improve the quality of operations process. There are several types of benchmarking which are commonly used which include external and internal benchmarking and industry-focused benchmarking.

External benchmarking is a process involved in helping our company to search for opportunities outside a company which are helpful in business operations. External benchmarking helps to observe opportunities of learning from those who are on leading level, although not every practice in the company can be transferred to us. This is due to the differentiation that each company is trying to create in the view of customers. This is a method that is imitable and precious, thus they will not easily transfer their company practice. External benchmarking may use up more time and resource to compare the data and information. Examples of external benchmarking are other good practices which found in other organizations.

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Our company use internal benchmarking to organizing a company divisions or business units. It seeks partners within organization, for example different business units will locate in different location. Perhaps the most beneficial advantage gained by our company is internal benchmarking can easily carry out access of internal data and information, this can save times. Besides, through internal benchmarking, fewer resources are needed because standardized data is already available.

Industry Benchmarking has applied by our company to identifying different competitors in our business field and strategized suitable plan to compete with them. Various services have evolved to aid companies in the process of seeking benchmarking information. Industry benchmarking can contribute in introducing approaches that give better organizations operations; we can also develop a plan of improvement on the company in various aspects. New ways of working and innovative solutions can be identified through industry benchmarking to differentiate our company and then operates more efficient compare to other companies.


The above chart is a framework showing on efficient way for learning from those companies which are doing things well. Benchmarking has been recognized as a key tool for effective and efficient to improve a company business operations and recognition on the field that needed improvement.

Reason focus on Benchmarking

The reason our company chooses to focus on benchmarking is we can plan and keep up with current changes in our company performance in our operations. Besides, we will be more able to improve our products quality and productivity in both labor and human capital. Benchmarking can also have a beneficial effect on enhancing continuous improvement because through benchmarking analysis we can raise company management department awareness about performance and greater recognition of our strengths and weaknesses in different areas. This is important for our company because we can identify our strengths to overcome our weaknesses to enable better performance in future operations and management.

Besides, through benchmarking we can abstract others companies ability that performs well and operates over the standards benchmarking. By learning from them, we can operates more systematic and in cost-effective ways. We can observe if the new planning has been implementing by other company before and see if it is efficient in improving future operation. Moreover, benchmarking can assist in better involvement and motivation of their staff in program changes and raise people willingness to share their opinions to solve the problems, suggestions of proper way that is needed to accommodate changes and increasing interactions within and between organizations.

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