What Are The Four Types Of Benchmarking?

What Are The Four Types Of Benchmarking?
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  1. The four basic types are—
    Internal benchmarking is the process of comparing one specific operation within the organization with another. It is the easiest, both to research and to implement. Progress in this type is a subject of the right hand knowing what the left hand is doing. Productivity improvement gained in this type is just about 10 percent. Competitive benchmarking is the process of comparing an operation with that of your direct competitors. Thus it is the most difficult type of benchmarking to work out successfully, keeping in mind the legal considerations. Productivity improvement in this type is something about 20 percent. Functional benchmarking is the process of comparing an operation with that of similar ones within the broad range of your business. It is relatively easy to research and implement. Productivity improvement in this type can be 35 percent or better. Last is Generic one-It is the process of comparing operations from unrelated industries or businesses. The advantage of this type is that the problems of competition do not apply, increasing the access to information and reducing the possibility of legal problems. Productivity improvement is same as functional one.

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