In the rapidly changing, highly competitive global economy of today, companies have been compelled to consider, and in most cases implement or adopt, a broad range of advanced management techniques and program. One example of programs that have been applied widely is an all-inclusive management philosophy called Total Quality Management (TQM). Nevertheless, TQM will simply be effectively applied in a business if management is dedicated and support a continuous process of improving unceasingly when compared with competitors through always benchmarking against the top in the sector. Benchmarking basically is an essential piece of the TQM procedure where a company assesses and equates its processes, products, and strategies with that of the toughest competitors or the topmost. The aim is to study exactly how they attain superiority and then set forth to match and even outdo them. The current paper seeks to discuss the importance of benchmarking in TQM.
Benchmarking is considered a significant strategic instrument of total quality management (TQM). Benchmarking refers to the process of surveying competitive practices or industry, products, and functions and establishing techniques to meet or boost them. Corporations from all diverse industries employ benchmarking to weigh their achievements and identify their weaknesses. Successful quality management necessitates the careful application of benchmarking (Cassell, Nadin & Older 2001). Because quality outcomes must be gauged against a mark, benchmarking is critical for businesses to measure their performance with the intention of staying competitive. Benchmarking is a practice utilized by businesses to aim at main areas for perfection in their operations in order to upsurge their competitiveness, productivity, as well as quality. The overall procedure of benchmarking includes ascertaining problem areas, choosing key rivals who shine where a corporation fails and making the needed adjustments (Siddiq, Baloch & Takrim, 2016). Benchmarking entails matching the companies operating and financial performances against the performance of a competitor or equating the performance of different internal units against one another. Therefore, companies should undertake efforts to upsurge the insight of its rivals exhaustively (Cassell, Nadin & Older 2001). By matching themselves with the top-performing rivals in all aspects of the business effort, businesses, therefore, establish both high-quality marks and numerous likely sources of data about how to execute each facet better. Benchmarking may and must be used as a necessary aspect of an inclusive TQM plan.
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The types of benchmarking are grounded in who matching parts are (Siddiq, Baloch & Takrim, 2016). Internal benchmarking involves a comparison between comparable operations inside an individual’s own organization. It forms operating criteria in organizations and entails comparing two or more units in the organization. On the other hand, Competitive benchmarking entails a comparison of businesses in similar bazaars which have rival work processes, services, or products. Here, the comparison is conducted directly against the challenger. Functional benchmarking is a comparison with companies with comparable processes in the identical function outer one's industry. Generic benchmarking compares work processes with that of companies that have innovative, ideal work processes. It is believed to be very effective but challenging to apply.
Companies that apply benchmarking are likely to realize numerous tangible as well as intangible advantages. Through the fruitful use of benchmarking, firms gain substantial boosts in consumer satisfaction, lower costs and better communication whereas establishing the significance of the internal client. Benchmarking exceeds just competitively evaluating the rivalry; it centers on evaluating organizational methods and processes to evaluate how opponents reached their positions (Siddiq, Baloch & Takrim, 2016). At one fell swoop, businesses may familiarize with their rivals’ weaknesses and strengths through staff experience and secondary information.
Experts highlight that the advantage of benchmarking may be classified into financial, strategic, and operational benefits (Cassell, Nadin & Older 2001). Benchmarking is a vital keystone for firms to stay at the front position of superiority in an equal playing field market. The outcomes of benchmarking plainly reveal that benchmarking translates into greater profitability (Siddiq, Baloch & Takrim, 2016). Also, benchmarking is linked to improved financial outcomes, business performance, and operational performance. Furthermore, benchmarking results in strategic thinking as well as action. Firms may enhance their familiarity by carrying out primary marketing exploration with suppliers, consumers, as well as dealers. Although the advantage obtained from benchmarking may differ from company to company, the mutual advantages focus toward “value creation” and “improvement.”
A firm that implements benchmarking to boost its operations, functions, products, as well as services, can enjoy upsurges in sales in addition to profits. Consumers are expected to notice these perfections, consequently increasing sales, particularly amongst primary customers. Businesses that run more competently as a result of benchmarking can significantly reduce their costs (Siddiq, Baloch & Takrim, 2016). These savings may result in bigger profits.
In a nutshell, management failure to commit and support lasting process, matching their companies with rivals by frequently benchmarking against the top companies can result in poor outcomes and wastage of resources in business organizations. Benchmarking offers an idea which focuses every person in a company on quality development. The hunt for quality enhancement is not merely necessitated by the market but is fueled by the necessity to survive as well. Businesses ought to create quality products in a better, quicker, and inexpensive ways than those of their rival firms. Implementation of fruitful benchmarking tactics as an instrument of Total Quality Management would be among the most critical elements for accomplishment in any business.
References
Cassell, C., Nadin, S., & Older Gray, M. (2001). The use and effectiveness of benchmarking in SMEs. Benchmarking: An International Journal , 8 (3), 212-222.
Siddiq, A., Baloch, Q. B., & Takrim, K. (2016). Quality of Healthcare Service in Public And Private Hospitals Of Peshawar, Pakistan: A Comparative Study Using SERVQUAL. City University Research , 6 (02), 242-255.
