What is Benchmarking

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Benchmarking is a lean tool to compare organisations lean competencies to other companies in same or similar industry.

Why use Lean Benchmarking

Benchmarking provides you with information on how your performance compare to others at a snapshot in time. The gap analysis will show you the opportunities for improvements and where to focus.

Benchmarking as a Lean Tool

Doing a benchmark is not a quick or simple process. Also it is important to understand the company’s guidelines before starting the analysis, as there might be some strict guidelines as to what information can be used.
When used, benchmarking should not be a onetime exercise, as the development over time then won’t be captured. Also the scope should not be limited by your own industry, use companies from other industries as well to see how you compare to their best practice.

Benchmarking Steps to Take

As already mentioned, then it is important to understand the companies guidelines before starting the process. Otherwise you might find out later that some of the areas you wanted to benchmark is not possible
Below are some of the crucial steps to take when doing the benchmark.

  • Get an understanding of where there are performance gaps in order to better plan the benchmarking.
  • Get all the needed approvals from senior management, as this will help with roadblocks you meet on the way, as well as additional resources if needed.
  • Define the scope and objective of the benchmark before you start
  • Document your own process to get a better understanding of how and whom to benchmark against.
  • Define what measurement matrixes to use, in order to capture the data you need. Tracking development over time for your own company or of the ones you Benchmark against, is only valid is same method is used all the time
  • Document everything you need to do, what need to be measured and how.
  • Create a data collection plan

If you are interested in lean and how to make your organisation more efficient, then our 5S Training might be interesting for you. 5S is usually one of the first elements implemented when starting out with lean, as it gives a great foundation for further improvements.

Alternatively you can continue to our Quality Training page to see some of the other training we offer.

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Lean Benchmarking