ABSTRACT
Benchmarking is a continuous process of measuring products, services, and process against the company’s toughest competitors or those companies renowned as world class or industry leaders (Camp 1989). Most organisations have their own definition. Alcoa defines benchmarking as “‘managing for quality’ process that uses the talents of those responsible for the process, service, and/or product to assess current activities and set up future priorities where competitive advantage can be gained” (Alcoa 1990). 3M defines benchmarking
as “a tool used to search for enablers that allow a company to perform as a bestin-class level (benchmark) in a given business process” (Willhite 1991). Xerox pioneered the use of benchmarking in 1979. It helped Xerox to revive its fortune. Benchmarking is employed by more and more companies (Geber 1990). A recent survey of Fortune 1000 companies revealed that 65 percent of respondents used benchmarking (Foster 1992). In many companies benchmarking is a key component of the TQM process (Whitting 1991). The importance of benchmarking as an improvement tool is recognised by leading quality awards. For example, in the case of Malcolm Baldrige Award, a quarter of the total points are allocated to benchmarking.
