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71 views44 pages

10 Chapter 2

chapter 2

Uploaded by

joko susanto
Copyright
© All Rights Reserved
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CHAPTER- 2

IN TR O D U CTIO N TO BENCH M ARK ING AND LITERATURE REVIEW

[Link] TRODUCTION TO BENCHM ARKING

Benchm arking is now regarded as a vital tool in the quality toolbox and the applications o f
benchm arking continue to grow in num ber and diversity as reflected in the literature. The
last two decades have witnessed a surge in the quest for quality as the markets are shrinking
due to stiff com petition. This sustained interest on using the technique o f benchm arking to

im prove quality has resulted in a surfeit o f articles and books.

D ecision-m akers are constantly on the look out for new techniques, to enable quality
im provem ent. While benchmarking, as a technique for quality im provem ent is not new or
unknown, it has now found more subscribers, and occupies a prom inent place in the action

agenda. Quite often, the benchm arking concept is understood to be an act o f im itating or
copying. But in reality this proves to be a concept that helps in innovation rather than
im itation, as stated by Thom pson, et. al. (1997).

2.2. BEN CH M A RK ING - CONCEPTS

2.2.1. A short history o f benchm arking


Throughout history, people have developed methods and tools for setting,
m aintaining and improving standards o f performance. One can trace the desire to improve
perform ance and the actual process o f im provem ent as far back as the early civilizations; the
ancient G reeks left us with exemplary w orks o f architecture, art and design. The Romans
who built upon the achievem ents o f both Egyptians and Greeks by developing the ability to
construct bridges and roads to standardised designs. In a real sense, benchm arking is a
natural evolution from principles o f Quality M easurem ent and TQM.
The early benchm arking phase began in the late 1950s. The Japanese visited many
thousands o f com panies round the world, m ainly in Am erica and W estern Europe,
specifically to absorb ideas that they could adopt and improve upon their manufacturing

14
processes. The Japanese investigated W estern products and processes to understand their
good and bad features, and build superior alternatives at low er cost.

A ccording to Camp (1993), benchm arking originated in the late 1970s in America
when the X erox Corporation adopted a sim ilar vigorous approach in 1979. During this time,
the X erox business plum m eted due to com petition from Japan. Then, X erox felt they had no
choice. Their com petitors were able to sell products more cheaply than X erox could make
them. To understand why this was, the product features and perform ance capabilities o f

com petitive m achines were rigorously evaluated and Xerox was able to investigate the
practices o f Fuji Xerox in Japan. The im provem ent opportunities that were identified and put
into place resulted in a swift turn around for X erox’s fortunes and led to Best Practice
Benchm arking becom ing a central part o f X erox’s business strategy. In the year 1982, Xerox
benchm arked its logistics and distribution unit against retailer [Link] to improve its
warehousing and material handling operations.
In 1985, M etro Toronto Reference library in Toronto, C anada conducted the first
known library benchm arking study o f its public service department. In the year 1991, the
term “benchm ark” was added to the guidelines for the prestigious ‘M alcolm B alridge’ award
and benchm arking became a qualifying condition for com panies aim ing at this award.
Benchm arking as a research strategy em erged in the 1990s, in the business sector. The
A merican Productivity and Quality Center (APQC) opened its ‘International Benchm arking
C learinghouse’ in the year 1992.
The history o f benchm arking as described by W atson (1993) has been categorised

under five generations o f benchmarking. The first generation was reverse engineering, which

was an engineering-based approach to product com parisons that included teardow n and
analysis o f technical product characteristics. The second generation was com petitive
benchm arking which Xerox refined starting in 1976. This type o f benchm arking went
beyond product-orientation com parisons to com paring processes with com petitors. In the
1980s, the third generation o f benchm arking was process benchm arking, w hich included
searching for best practices across industry boundaries. The fourth generation benchm arking
was strategic benchm arking; where it was used to fundamentally change the business, not
ju st alter the processes. Lastly, the fifth generation was global benchm arking, where

15
international trade, cultural and business process distinctions among com panies are abridged
and their im plications for business process im provem ent are understood.

Till date, benchm arking has naturally evolved as a technique encom passing concepts
o f com petitor and market analysis, quality im provement programm es, performance

m easurem ent and, perhaps most o f all, Japanese practices.


In summary, it can be said that the origins o f benchm arking, in one sense, be traced to
the early m ethod o f exam ining products o f com petitors to see how they are made and how
they could be made, whether the same or better.

2.2.2. Benchm arking - M eaning and definitions


Benchm arking as a Verb refers to a process o f com paring agencies’ operations and
perform ance against recognised standards and improving those operations to enhance the
effectiveness.
A benchm ark as a N oun refers to the numerical target or reference point for taking
measures against.
This w ord has migrated into the business world, where it has com e to mean: “A
benchm ark is a measured best-in-class achievem ent recognised as the standard o f excellence

for that business process” .


A ccording to W ebster’s dictionary (1990), the word benchm ark has its origin from
geographic surveying, where it means “A marked point o f known or assum ed elevation from

w hich other elevations may be established” .


The International Clearinghouse for Benchm arking (1992) defined benchm arking as the
“process o f continuously com paring and m easuring an organisation w ith business leaders
anywhere in the w orld to gain inform ation that will help the organisation take action to
im prove its perform ance” .
As stated by Me N air and Leibfried (1992), “To benchm ark is to shrug o ff history and to

em brace the future.


A ndersen (1994) states the generic definition, as “Benchm arking is the process o f
com paring som ething or someone with best practice” .
Best practices are collections o f activities w ithin an organisation that are done very well and
ultimately, are recognised as such by others.

16
A ccording to the APQC (1997), benchm arking is “the process o f identifying,
understanding and adapting outstanding practices from other organisations to help an
organisation im prove performance” .

The core o f the current benchm arking interpretation is;


■ M easurem ent o f own and the benchm arking partners’ performance level, both for
com parison and for registering im provements. Comparison, o f perform ance levels,
processes, practices etc.
■ Learning, from the benchm arking partners to introduce im provem ents in one’s own
organisation.
■ Im provem ents as the ultimate objective o f any benchm arking study. Improvements
encom pass incremental change, m ajor steps and innovations.

The concept o f benchm arking, like TQM , has the concept o f the internal business process
as one o f its central ingredients. The crucial internal processes o f the business need to be
identified, and measures and m easurem ent points have to be established. C om parisons in
processes and process performance have to be made externally, as well as internally, and
process im provem ents need to be put in place.
In a nutshell, benchm arking is an advanced quality im provem ent methodology, which
may be integrated into a TQM system. It is the m ost important contribution by the W estern

w orld to quality im provem ent methodology, since the foundations o f quality revolution were
laid by W alter A. Shewhart, Dr. W illiams Edward Dem ing and Dr. Joseph Juran.

2.2.3. The need for External Com parisons


Today, com petition is on the global level for many businesses and in many critical areas,
the only sensible goals are the ‘W orld’s best practice’. For many other companies,

com peting in sm aller arenas, the targets may m ot always be as stringent, but the need for
realistic goal setting is ju st as important. Benchm arking is a method o f m aking sure that the
targets aim ed for are relevant to m arket demands. The technique is equally applicable in
m anufacturing and service organisations.
M aking com parisons with com petitors is not a new idea. Acquiring data about how
com petitors are performing, what their product range comprises, w hat prices are they able to
com m and, and perhaps their operating methods, has always been part o f a businesses modus
operandi. Thus benchm arking is a highly - respected proactive m anagem ent tool which is

17
increasingly being used to identify and focus im provem ent activities with the goal o f
international com petitiveness.

2.2.4. Benchm arking Barriers and M isconceptions

Gift, [Link]. (1994) have reported a few reasons for not conducting benchm arking. The
barriers identified include:

• Lack o f action
• N ot involving the appropriate people (process owners)
• N ot understanding that learning can happen even without inventing it.
• Lack o f understanding the internal processes
• W eak leadership
• Inability to see opportunity to improve
• O rganisation not promoting entrepreneurial behaviors, innovation or risk taking
• Failure to see need for change

As benchm arking emerged, an organisation that conducted any type o f com parisons, such
as com paring data w ith national norms, com petitive analysis, or unstructured discussions
with counterparts in other organisations, claimed it was benchm arking, as reported by
Keehley (1997). A quantitative com parison o f performance is only a small part o f
benchm arking process. An organisation needs to define the true meaning, role, and use o f

benchm arking in its own environment, including how it uses com parative data, as stated by
Gift (1996).
Com m on misconceptions for benchm arking can be com monly grouped under the

following:

• Benchm arking leads to rating and ranking o f performance


• Participation in benchm arking is revealing trade secrets that would lead to com prom ising
com petitive advantage.
• Benchm arking leads to explicit cause-effect relationships with best practices.
• Benchm arking is a panacea.
• It is a one-tim e programme
• It is a reactive tool
• Benchm arking is ju st copying others.
In summary, benchm arking is not simply data comparison, a fad, a means for reducing
resources, a quick-fix program, or consolidation o f visits to different industrial
establishm ents. Benchm arking is a means o f doing business, a continuous and disciplined
m anagem ent process w ith a structured methodology.

18
2.3. BEN CH M A RK ING MODELS

2.3.1. R equirem ents for a successful benchm arking M odel


A benchm arking model should have logical flow o f ideas. The attributes o f the model
should be clear so that people can describe it to others and the listener can understand in
order to translate into action.

A benchm arking model should have the following requirements built in:

• A clear understanding o f benchm arking requirements


• Identification o f benchm arking team
• Use o f effective project planning tools and techniques
• The model has to create a set o f expectations regarding the inform ation; how it is to be
gathered, reported and used to review and adjust progress o f activity.
• Identification and analysis o f gaps.
• Feed back provision to take action and recycle.

2.3.2. A review o f Benchm arking M odels


Benchm arking is usually treated as a structured process. The structure is best provided by
the developm ent o f a step-by-step model. The process models provide structure so that the
user can see the benchm arking route. They provide a com m on process in a language
understandable to all, by allowing a basic framework for successful planning and execution

o f a benchm arking exercise.


The literature has frequently cited benchm arking models. A few profound m odels have
been noted for review. It is also true that every organisation will approach the benchm arking
process from its own perspective and will need to custom ise the generic benchm arking model

accordingly. A few o f the models reviewed are:

• The Cam p M odel


• M eta-m odel developed by International Benchm arking Clearinghouse
• Baxter Benchm arking Model
• Spendolini’s 5-stage Benchm arking Process
• W atson M odel
• Leibfried and M e N air Model
• Benchm arking process Model
• The A PQ C M odel

19
Each o f these models have exhibited benchm arking as a continuous process with
successive phases being critical to the successful execution o f the process. A B rief summary
o f these m odels is given in Table. 2.1.
Table - 2.1. Sum m ary o f Benchm arking M odels

NAM E O F TH E M O DEL STEPS/STAG ES REM ARK S


a. Cam p M odel (1989) Planning Extrem ely detailed
- Also called the X erox’s 10 Analysis Leaves no flexibility
step model Integration in term s o f chosen
Action procedure__________
b. G eneric “M eta-M odel” Plan Information given in
- Depicted by Andersen Collect the model is
(1994) Analyse extrem ely limited
- Developed by Adapt/Im prove Can be structured to
International Benchm arking suit the needs o f the
C learinghouse (IBC)_______ user
c. Baxter Benchm arking Preparation Phase: M odel is based on
M odel 5 Steps the prem ise that the
- D eveloped by Baxter Analysis Phase: best ideas com e
Corporate Consulting 10 Steps from people who are
- Portrayed by Lenz, S., closest to the
[Link]. ((1994) process
- 15 Steps model_________
d. Spendoloni’s Five - Determ ine what to A C ircular model
Stage Benchm arking benchm ark M odel portrays
Process Form a concept o f
- M odel conceived by benchm arking team ‘Recycling’ to
S p en d o lo n i(1992) Identify denote the concept
- 5 Stage Model benchm arking o f continuous
partners im provem ent
Collect and analyse
benchm arking
inform ation
Take action
NAM E OF TH E M ODEL STEPS/STAG ES R EM ARK S
e. The W atson - M odel Plan It contains fewer
- D eveloped by W atson Search steps than the
(1992) Observe Cam p-model
- Six Steps Model Analyse Describes all steps
Adapt in a com plete
Improve benchm arking study

20
Sum m ary o f B enchm arking M odels jContd..]

f. The Leibfried and Identify core issues Based on a logical


M cN air - M odel Internal baseline sequence to the
- M odel put-forth by data learning process that
M cN air and LeibFried External Data is em bedded in
(1992) Collection benchm arking
Analysis It is more a system ’s
Change Implement model w ith input /
output criteria______
g. Benchm arking Process Plan Sim ilar to
M odel Search Spendoloni’s Five
- Also called the Observe State benchm arking
“Benchm arking W heel” Analyse process
- A Circular model Adapt Steps are sim ilar to
depicting 5 steps_________ the W atson M odel
h. The A PO C M odel Plan This model is
- The Benchm arking Collect sim ilar to the ‘meta-
M anagem ent Guide (1993) Analyse m odel’
published by the American Adapt/Improve Follows the ‘plan-
Productivity and Quality do-check-act’
Center (A PQ C) proposed a sequence
four-phased benchm arking
m ethodology as a generic
approach to benchmarking.

In summary, it can be said that models merely contributed structure and a common
language for a process. These models in the literature review showed benchm arking to be a

planned, formal, and structured process. Further, there should always be some flexibility
built into any process or model to accom m odate situational variation.

2.4. TY PES OF BENCHM ARKING

Literature does not suggest consensus on the types o f benchm arking. A num ber o f
authors seem to capture different categories o f benchmarking. However, in general there are

four types o f benchmarking:


• Internal Benchm arking
Internal benchm arking means com parison o f internal operations between different divisions
or sim ilar functions in different operating units within an organisation. Internal

21
benchm arking com pares similar internal functions within an organisation, and it often serves

as a pilot project for conducting external benchmarking.

• C om petitive Benchm arking

Com petitive benchm arking compares a work process with that o f the best com petitor in the
same m arket. It reveals the performance m easure levels to be surpassed. Competitive

benchm arking is basically benchm arking against external direct product com petitors.

• Functional Benchm arking

Functional benchm arking compares a w ork function to that o f the functional leader in the
same industry or cross-industry. Functional benchm arking is done w ith functional
com petitors or industry leader firms, even if the industries themselves are dissimilar.

• G eneric Benchm arking


This focuses on the best work processes. Instead o f focusing on a com pany’s business

practices, sim ilar procedures and functions are benchmarked.


Further, as reported by Zairi and Pervaiz (1999), one recent categorisation has been from
the European Com m ission initiative that proposes three levels in benchm arking:

• Com pany
• Sectorial
• Benchm arking o f framework conditions.
Table 2.2. shows the different categories o f benchm arking. It is clear that at the mom ent
several varieties o f benchm arking exist and there could be some overlapping also. However

it is pertinent here to look at the categories as suggested by different authors.

22
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In an interview to the journal ‘M anagem ent R eview ’ [Anonym ous-l (1994)], Juran used an
interesting anecdote to describe functional benchm arking. Early in the century, some German

generals decided to follow an American circus to learn about deployment. In those days, the

circus perform ed under tents, moved from city to city in a short period o f tim e transporting all

kinds o f people, animals, and gear, and were very efficient at it. The m ilitary had the same
problem , m oving large numbers o f horses, tents, am m unition, and food. The generals conducted
functional benchm arking with a circus, an operation not related to army.

2.5. BEN CH M A RK ING - A LITERATURE REVIEW

M any authors have contributed to the literature on benchm arking resulting in more than 350
publications as o f June 2002. Considering the growth o f publications, some attem pts have been

made in the past to review the literature. However, the present attempt as a part o f the research
work is different from the earlier reviews and more broad based in coverage. This review o f
literature, covers the following objectives:
" Arranging the publications in an orderly m anner to enable easy and quick search
" Classification o f literature
" Scrutiny o f outcom e o f publications
" Identifying gaps and providing hints for further research.
The review process first starts by providing a com parison among the earlier reviews on
benclimarking and highlights the outcome in each case. Next, a new methodology for classifying
the literature is suggested. The growth and categorisation o f publications are presented in a

graphical form for easy understanding.

[Link] R eview s o f Literature on Benchm arking


It w as found out during the current research that at least six literature reviews have been
made in the past and all but one were studied by the authors. The different reviews in

chronological order are:


1) “Roadm ap to Current Benchm arking Literature” ., Andrew [Link] Robert R. Safford
and W illiam W .Swart, 1994, Journal o f M anagem ent in Engineering., N ovem ber /

Decem ber., pp: 60-67.

26
2)a. “ A Review o f key publications on Benchmarking: Part I” ., M oham ed Zairi, and
M oham ed [Link], 1995., Benchm arking for Quality M anagem ent and Technology,
V o l.2 ,N o .l,p p : 65-72.

b. “A Review o f key publications on Benchmarking: Part 11” ., M oham ed Zairi, and

M oham ed [Link], 1996, Benchm arking for Quality M anagem ent and Technology
V ol.3, N o .l, pp: 45-49.

3) “Benchm arking: A Select Bibliography” ., [Link], 1995, [Link].36, No.3,


October-December.

4) “A review o f benchm arking literature”, Czuchry, A.J., Yasin, M .M ., and Darsch, J.J.,
1995, International Journal o f Product Technology, V o l.10., N o s.1/2, pp: 27-45.

5) “A fram ework for benchm arking in the public sector Literature review and directions for
future research” ., Jeffrey [Link] and M ahmoud M. Yasin, 1998, International Journal

o f Public Sector M anagement., V ol.l 1, No.2/3, pp: 91-115.


6) “Theory and practice o f benchmarking: then and now ”., M ahm oud M. Yasin, 2002,

Benclimarking: A n International Journal., Vol. 9, No.3., pp: 243.


O ut o f the six publications cited here, the fourth one namely ‘A review o f benchm arking

literature’, by Czuchry, [Link]. (1995) was not available to the authors at the time o f literature
survey and hence the authors could not use the valuable inform ation o f this publication for a
com parative study.
Further, a com parison am ong the earlier attem pts to review literature on benchm arking is made
using certain attributes. Outcome o f the different reviews are shown in Table - 2.3.

The attributes considered for com parisons are:

• Focus and Objectives: This refers to a b rief coverage o f the publications in term s o f the
content and the applicability.
• N um ber and Type o f Publications covered: The num ber o f publications listed and
w hether they are Text Books, Journal Papers, Conference Proceedings or Periodicals.
• Review methodology: It looks at the way in which the literature has been reviewed and
classified.

27
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Apart from these distinguishing attributes, certain com m on param eters like, the N am e o f
PubHcation, A uthor(s), Year o f publication. Journal o f publication are also used.

2.5.2, Pream ble to Literature review

There is a proliferation o f literature on the topic o f benchm arking in the last 15 years,

as revealed in this literature review. Considering the gamut o f publications it can be said that
the benchm arking technique has seen a steady growth and appears to be heading towards
maturity level.

As a part o f the research it was decided to classify and analyze the literature in detail. The
course o f action included the following steps:

■ U pdating the database to ensure that literature is as current as possible. The collection o f
literature has been reviewed till June 2002.

" For literature search, both hardcopy search in established libraries in India and electronic
search in W orld W ide Web were made. The w ell-known search engines available at
w w w .g o to .c o m ,[Link] and w [Link] were specifically used to

ferret the literature pertaining to benchm arking from a wide variety o f sources on the

internet. A n honest attempt has been made to include as many publications as possible,
w ithout claim ing that the listing is com plete or exhaustive in nature.
" D eveloping a classification scheme was the next step. First a bibliographical list o f all
publications was developed and a file was created in Excel spreadsheet.
" The review process in a different way and is illustrated in the subsequent sections.

2.5.3. M ethodology and Scheme o f Review


The classification scheme proposed includes a simultaneous parallel categorization that
highlights the growth o f literature from time to tim e and also the coverage o f benchm arking

specific to different groups like;


1. Benchm arking: General aspects or Fundam entals
All publications under this category deal with very general and fundamental concepts o f
benchm arking, essentially for first time readers. Fundamentals are usually covered to a large
extent particularly when the discipline is in the introduction and growth stage. This can be

32
confirm ed by the num ber o f publications, w hich appeared in the early time period o f the time
scale considered.

2. Benchm arking - Specific A pplications and Case Studies

People are m ore interested to know about applications and success stories. Therefore this

should be a useful group. Under this categorisation, all literature dealing w ith applications
specific to m anufacturing and non-manufacturing sectors are shown.
3. Benclim arking - Innovations / Extensions / N ew Approaches
When the technique reaches a saturation stage in term s o f its popularity, novel approaches
and innovations start appearing in the literature. This category is considered to recognise and
appreciate the novel approaches or paradigm shifts in benchm arking techniques or its
applications.
4. Benchm arking - Applicable to education sector

This categoiy is specially included here for the benefit o f academicians and also forms a
m ajor aspect o f the present research.
It is understandable that a very strict dem arcation in the categorisation is not possible
since there may be certain overlaps in the publications analysed.

A Pareto diagram o f the number o f publications in different categories is given in Figure -

2 . 1.

120
<0 100
c
_o
80
ra I Percent
60 --
n ■Cumilative Percent
3 40 --
Q.
5? 20
0 -
Categ Categ Categ Categ
ory-1 ory-2 ory-3 ory-4
Publication Categories

Legend:
Category-1 Benchmarking: General/Fundamentals/Models
Category-2 -> Benchmarking: Specific Applications / Case Studies
Category-3 -> Benchmarking - innovations and Extensions / N ew Approaches
Category-4 -> Benchmarking - Education
Figure - 2.1. A Pareto diagram o f the num ber o f publications in different categories

33
All the publications in the categories described earlier have further been coded based on the

chronological appearance o f the article, for the convenience o f the readers. The first code in
the form a num ber from 1 to 4, refers to the categories 1 to 4 illustrated above. Coding has
been done from 1980 onwards, since the concept o f benchm arking em erged during the

1980s. Also, the tim e interval for the first category is taken as 10 years.

This is adopted, since the number o f publications during the first ten years are not many.
Publications after 1990 have been categorised on a tim e interval o f two years. Thus, the time

periods are represented as “a” (ten years: January, 1980 - December, 1989), “b” to ‘h” (two
years each; January, 1990 to January, 2002). This tim e based coding is displayed in Table -
2.4.

Table - 2.4. The coding pattern for classification based on time o f publication

TIME FRAME
January January January January January January January January
1980 1990 1992 1994 1996 1998 2000 2002
. - - - - - - Onwards
Dec. Dec. Dec. Dec. Dec. Dec. Dec.
1989 1991 1993 1995 1997 1999 2001
Category CO DE
a b c d e f g h
1 1 -a 1 -b 1-c 1 -d 1- e 1-f 1 -g 1-h
2 2-a 2 -b 2 -c 2 -d 2 -e 2 -f 2 -g 2 -h
3 3-a 3 -b 3 -c 3 -d 3-e 3 -f 3 -g 3 -h
4 4-a 4 -b 4-c 4 -d 4-e 4 -f 4 -g 4 -h

As an exam ple, the article, ‘M easuring the U nm easurable’ by Brisley (1983) is coded under
1- a. This m eans the publication was made during January 1980-December 1989 and it deals
with Category - 1, nam ely “Fundamentals o f Benchm arking”. Similarly, a publication coded
under 4 - c m eans the publication came out during January 1992-D ecem ber 1993 and is

related to Category - 4, “Benchm arking Education Sector” .


Similarly, all the publications, based on this coding pattern, are identified in Table - 2.5, by
their serial num ber as given in the bibliographical list.

34
Table -2 .5 . C ategorisation o f all publications

Category -1 Benchmarking: G eneral/Fundamentals/M odels


CODE ORDER IN TH E BIBLIOGRAPHICAL INDEX
1- a Brisley (1983), Camp (1989a, b, c, d, e) Fuld (1989), Furey (1987), G uilm etle and
Carlene (1984), Johne and Snelson (1988), Pryor (1989), Tucker et al. (1987)
1-b Benson (1991), Biesada (1991), Bowers (1991), Camp (1990), Davis (1990), Dickey
(1991), Faidley and M usser (1991), Geber (1990), Linsenmeyer (1991), M artin
(1991), M aturi (1990), Meyer (1991), Tyndall (1990), W alleck et al. (1991),
W elleck et al. { \9 9 \), W hiting (1991)
1-c A ltany (1992), Atherton (1993), Biesada (1992), Bogan and English (1993),
Bookhart (1992), Brown (1992), Bruder (1992), Camp (1992, 1993), Chappie
(1992), Chung (1993a, b). Dale (1992), Day (1992), Enslow (1992), Ettorre (1993),
Fink (1993), Fitz-Enz (1992a, b, 1993), Flower (1993), Forger (1992), Foster
(1992), Gardner (1992), Hall (1992), Haserot (1993), H enricks (1993), Hequet
(1993) H iebler (1993), Hogg and Hogg (1993), H RFocus (1993), H unter and
Shearman (1992), Istvan (1992), Jennings and W estfall (1992), Julien (1993),
K harbanda (1993), Kimm erling (1993), King (1993), Kobe (1993), Lenckus
(1993b), M ain (1992), M cGonagle and Flem ing (1993), M icklewright (1993), M iller
(1992b), M ittelstaedt (1992), M onczka and M organ (1993), N andi (1993), N ew m an
(1992), Ogilvie (1993), O verm an (1993), Pansley (1993), Payne and Blackboum
(1993), Port and Smith (1992), Prestly (1993), Pryor and Katz (1993), Ransley
(1993), Richardson (1992), Ryan (1993), Sasenick (1993), Sharm an (1992a),
Sheridan (1993a, b), Shetty (1993), Sillyman (1992), Singleton-Green (1992a, b),
Soderberg and O ’Halloran (1992), Spendolini (1992), Sprow (1993), St C lair (1993),
Stratton (1993), Tuttle (1993), Vaziri (1992, 1993), Venetucci (1992), W eatherly
(1992), W eim er (1992), W eisendanger (1992, 1993)
]-d A nderson (1994a), Anderson and Pettersen (1994), A nderson and Cam p (1995),
Burgess (1995), Carris and Bartlett (1994), Czuchry et al. (1995), Fleisher and
Burton (1995), Goldwasser (1995), Grayson (1994), Hollstein (1995), Jackson et al.
(1994), Kinni (1994a, b), Lem a and Price (1995), Longowitz and Rao (1995), M alec
(1994), M oad (1994), Ottenliouse (1994), Pulat (1994a, b). Purchasing (1994),
Rigby (1995), Tutcher (1994), Vig (1995), Zairi and Y oussef (1995 a, c)
] -e Balm (1996), Bassi and Cheney (1997), Colding (1997), Dhawan (1996), Elmuti et
al. (1997), Elmuti (1998), Fow ler (1997), Harrington (1997), Lincoln and Price
(1996), M alcolm (1997), M organ (1996), Powers (1996/1997), Rogers (1997),
Schum ann (1996), Shen-Then (1996), Simm ons (1996), Singh (1997), Sm ith (1997),
Thom pson and Cox (1997), Zairi and Ahmed (1996)
1-f A m m ons (1999), Bhutta Khurrum and Huq (1999), Dorsch and Yasin (1998), Fetter
(1998), H illier et al. (1998), Holloway et al. 0 9 9 8 ), M cG onagle and Flem ing
(1998), W ah-Fond et al. (1998), Zoins (1998)
1-g B attaglia and M usar (2000), Dervitsiotis (2000), Longbottom (2000), Per and
H ollensen (2001), Prado and Prado (2001)
1-h Carpinetti and De M elo (2002), Strategic D irection (2002), Yasin (2002)

35
Categorisation o f ail publications [Contd.

C ategory 2 Benchmarking: Specific applications/case studies


2-a Cavento (1988), Drozdowski (1983), Fifer (1989), Lowis and A lbert (1985),
Subram anian (1984)
2-b Bem owski (1991), Eccles (1991), Press (1991), Quality a n d Productivity
M anagem ent A ssociation (1991)
2-c A llan (1993), Azzolini and Shillaber (1993), Bean and Gros (1992), Bracken
(1992), Bredin (1993), Brown (1992), Cecil and Ferraro (1992), Crow and Van Epps
(1992), Chung (1993c), Crespy et al. (1993), Davis and Patrick (1993), Ford (1993),
Gable et al. (1993), Gamble (1993), G off (1993), Harari (1993), Inger (1993),
Johnson (1992), Karch (1992), Krause and Liu (1993), Lenckus (1993a), M arkin
(1992), M cGaughey (1993), M iller (1992b), Owen (1992), Prairie (1993), Richman
and K oontz (1993), Roth (1992), Schefczyk (1993), Schmidt (1992), Sharman
(1992b), Shaughnessy (1993), Spitzer (1993), Verschoor (1993), W alsh (1992),
W atson (1993), W endel (1993), Zairi (1992)
2-d A dam and Vandewater (1995), Anderson (1994b), Baker (1994), Bell and Morey
(1994), Bhat (1995), Bowm an and Faulkner (1994), Bruder and Gray (1994), Chao
(1994), Chen (1994), Clayton and Luchs (1994), Cooper and K leinschm idt (1995),
Delbridge et al. (1995), Holt (1994), Lee and Howard (1994), Lorence (1994),
M aheshw ari and Zhao (1994), M atzko and W ingfield (1995), M orey and Dittman
(1995), O binata (1994), Oliver and M cDonald (1995), Petrick et al. (1994), Poirier
(1994), Sinclair and Zairi (1995), Sohal and Lu (1995), Sweeney (1994), Voss et al.
(1994), W allace (1995), Zairi and Y oussef (1995 b), Zhao et al. (1995)
2-e Bergstrom (1996), Buscaglia (1997), Chapm an and Hyland (1997), Clarke and
M anton (1997), Edgett and Snow (1996), Epperheim er (1997), Evans and Dale
(1997), Floch et al. (1997), Frederickson (1996), Fuller (1997), G oodm an et al.
(1996), Hamilton and Gibson (1996), Hiltrop and Despris (1997), Johnston and
K irch (1996), Keehley and M ac-Bride (1997), Lagoe and Aspling (1997), Le Sueur
and Dale (1997), Millen et al. (1997), M in and M in (1996), M in and M in (1997),
N acker (1997), Ogava and K etner (1997), Prior-Sm ith and Perrin (1996),
Ram abadron et al. (1997), Relihan (1997), Roche (1997), Schioeder (1996), Voss
and Blackm on (1997), Yasin and Zim m er (1996)
2-f A hm ed and Rafiq (1998), A hm ed and Zairi (1999), Badrinath et al. (1998),
Beaum ont and Sohal (1999), Beretta and Dossi (1998), Blinn (1998), Burgess
(1998), Buyukozkan and M arie (1998), Coe (1999), Colding (1998), C orbett (1998),
D avis (1998), Elmuti and K athaw ala (1997), Gilm our (1999), Glass (1998), Hsien-
Chen (1998), Jane-Davies and K um ar-K ochhar (1999), Jones (1999), Lagoe et al.
(1999), M ann et al. (1998), M ann (1998), M entzer et al. (1999), Parker (1998),
Pfohl and Ester (1999), Simpson et al. (1999), Sohal et al. (1999), Tang and Zairi
(1998a, b, c), Treadwell (1998), W hymark (1998), Zairi (1998a, b), Zairi and
A hm ed (1999)

36
C ategorisation o f all publications [Contd..]

C ategory 2 Benchmarking: Specific applications/case studies [Contd.. ]


2-g Brah et al. (2000), Chung-W oon (2000), Chung-W oon (2001), D arm ont and
Schm eider (2000), H anderson and Evans (2000), Johnson and Cham bers (2000a, b),
K um ar and Chandra (2001), Lagoe et al. (2000), M orling and Tanner (2000), M uthu
et al. (2000), N ath and M rinalini (2000), Robson and Prabhu (2001), Rodwell et al.
(2000), Sarkis (2001), Shen et al. (2000), Simpson and Kondouli (2000), Ulusoy and
Ikiz (2001), Zairi and W hym ark (2000a, b)_______________________________________
2-h D avis and Kochhar (2002), Hyland and Beckett (2002), M cAdam and Kelly (2002),
M ukherhee et al. (2002), U nderdow n and Talluri (2002)

C ategory 3 -^Benchmarking: innovations and extensions/new approaches


3-a Lewis et al. (1985)
3-b
3-c Crespy and Becker (1993), Harkleroad (1992), M cGonagle (1992)
3-d Elnathan and Kim (1995), Guim araes and Langley (1994), H utton and Zairi (1994),
Lu et al. (1994), Lucertini et al. (1995), M onkhouse (1995), Partovi (1994), W ebster
and L u(1995)_________________________________________________________________
3-e Behra and Lemmink Jos (1997), H iebeler (1997), Yun (1997)
3-f Anderson and M oen (1999), Bhattacharjee (1999), K um ar et al. (1999), M adu and
H ua (1998), M cNamee and Greenan (1999), O ’Dell et al. (1999)___________________
3-g Featherm an (2000), Fuller (2000), Razmi et al. (2000), Talluri and Sarkis (2001)
3-h Jeffcoate et al. (2002), Sharif (2002)_________________________________________

Category 4 -> Benchmarking: Education


4-a -

4-b -

4-c Shafer and Coate (1992)


4-d Brennan (1995), Houshm and et al. (1995), W illiams (1995)
4-e D ittenhofer et al. (1996), Fredenberger et al. (1996), King (1996), Parisean (1997),
W eeler(1996)
4 -f D ’M ello (1999), Epper (1999), Godfrey and Godfrey (1999), Howe and M artin
(1998), Lom as (1999), Payne and W hitfield (1999), Raghunath (1998),
4-g Fiekers et al. (2000), Jackson (2001), W an Endut et al. (2000)
4-h Laugham e (2002), Shaw and Green (2002)

2.5.4. O bservations and Comments


In this review, 384 publications in total are analysed for the purpose o f providing
insights to the growth and developm ent o f benchm arking concept. These publications
include specific papers in national/international journals, and conferences. O ther articles
such as exclusive reports in newsmagazines, newsletters, special columns and editorials are
left out as the authors feel that they deal with general inform ation in a lim ited mamier.

37
Similarly books w ritten on benchm arking are also omitted from the review. Further, 170

publications belong to general aspects or fundam entals o f benchm arking, 166 papers pertain
to specific applications/case studies in benchm arking, 27 publications com e under
innovations/extensions/new approaches in benchm arking and finally, 21 publications fall
under the category o f benchm arking applicable to education sector.

As seen in Figure-2.1., alm ost h alf o f the publications speak about the general aspects o f
benclimarking. O ften it is mentioned in literature that the benchm arking concepts were
initiated during 1989, after Xerox publicized it. A t this point, it is worthw hile to note that
attem pts to use this concept were made first, in the year 1983-1984 as indicated by Brisley,
(1983). In term s o f its application in the industry, Guilm etle and Carlene (1984), explore the

utility o f benchm arking in employee training whereas Lowis, et. Al. (1985), illustrate this

concept as a viable tool for com puter perform ance evaluation during the year 1985. It is also
interesting to note that, as publicized by Subramanian (1984) certain interfirm com parisons
were made in the A sian region as early as in the year 1984.
Regarding the application o f benchm arking concepts to industry and service sectors,
published literature started appearing in a noticeable way only after the 1980’s.

The contributions in the form o f technical papers on general aspects o f benchm arking are
m axim um in num ber during the period 1992 - 95. This is probably due to the initial
curiosity and interest generated on the topic. Thereafter there has been a decline, as seen in
the chronological listing o f publications num ber-w ise in the line graph in Figure - 2.2.

In the sam ple o f literature collected it is seen that there are 166 papers, specific to the
category “Benchm arking - Specific application / Case studies” . Regarding Case Studies
group, it is observed that one o f the first applications, namely benchm arking o f purchasing
activities w as done in the year 1983 as reported by Drozdowski, (1983). Subsequently many
case studies have been conducted in the m anufacturing sector and also in the service sector.
Even here, the num ber o f publications during 1993 -9 9 are maxim um and there after there is

a decline.

38
Figure. 2.2. Graph Showing C hronological A ppearance o f all publications
This suggests that the concept has been applied successfully to alm ost all functional areas.
Table - 2.6, shows the application o f benchm arking to different functional areas.

T able - 2.6. Different functional areas covered by various authors

Specific A reas o f Application o f O rder in the Bibliographical Index


Benchm arking
Accounting Processes Beretta and Dossi (1998), Sharnian (1992b),
V erschoor (1993)
Banks M ukherjee et al. (2002), W endel (1993)
Benchm arking O perations Bredin (1993), Cecil and Ferraro (1992)
Business re-engineering A dam and V andewater (1995), Rishm an and
K oontz (1993), Sim pson et al. (1999)
Career M anagem ent Epperheim er (1997)
Change M anagem ent Clarke and M anton (1997)

39
Specific Areas o f Application o f O rder in the Bibliographical Index
Benchm arking
Core Com petencies Per and Hollensen (2001)
Credit Function Chung (1993c), Gamble (1993)
Education D ittenhofer et al. (1996), D ’M ello (1999),
Epper (1999), Godfrey and Godfrey (1999),
H owe and M artin (1998), Lomas (1999),
Laugham e (2002), Payne and W hitfield
(1999), Raghunath (1998)
Employee A ttitudes Bracken (1992)
Environm ent B hat(1995), K a rch (l9 9 2 )
Facility M anagem ent Johnson (1992)
Finance Schmidt (1992), Spitzer (1993), W hymark
(1998)
Food and D rinks Industry M ann (1998)
Health and Safety M anagem ent Fuller (1997), Inger (1993), Lorence (1994)
Hotel Services M in and M in (1996, 1997), M orey and
D ittm an (1995)
H um an Resources Ford (1993), Hiltrop and Despris (1997), Holt
(1994), Parker (1998), Prior-Sm ith and Perrin
(1996), Rodwell et al. (2000)
Information Technology Allan (1993), G off (1993), Lowis and Albert
(1985), Quality and Productivity M anagem ent
Association (1991)
Law Courts Buscaglia (1997)
Library Shaughnessy (1993)
Logistics Cavento (1988)
M anufacturing Sarkis (2001), Sweeney (1994), V oss et al.
(1994)
M arketing Gable et al. (1993)
Operational Perform ance Voss and Blackmon (1997)
Perform ance M easurem ent E ccles(1991), M iller (1992b)
Physician W orkforce Floch et al. (1997), Goodman et al. (1996),
S ch ro ed er(1996)
Pre-project Planning Ham ilton and Gibson (1996)
Preventive M aintenance Practices Chen (1994), M uthu et al. (2000)
Product D evelopm ent Ogava and Ketner (1997)
Public Sector Bruder and Gray (1994), Coe (1999), Davis
(1998), Frederickson (1996)
Purchasing D rozdowski (1983)
Research and D evelopm ent Bean and Gros (1992), K iause and Liu (1993),
N ath and M rinalini (2000), Press (1991)
Retail D istribution Strategy M atzko and W ingfield (1995)

40
D ifferent functional areas covered by various authors (C o n td ..]:
Specific Areas o f Application of O rder in the Bibliographical Index
B enchm arking
Risk M anagem ent Blinn (1998), Lenckus (1993b)
Sales Perform ance M ann et al. (1998)
Safety M anagem ent R elihan(1997)
Sales Forecasting M entzer et al. (1999)
Small and M edium Industries B adrinath et al. (1998), M cA dam and Kelly
(2002)
Spare Parts Logistics Le Sueur and Dale (1997), Pfohl and Ester
(1999)
Supply Chain Operations Ahmed and Zairi (1999), G ilm our (1999)
T elecom m unications N acker(1997)
Travel M anagem ent Bell and M orey (1994)
Treasury Treadwell (1998), W allace (1995)
W orld Class M anufacturing Owen (1992)

It can be seen in Figure - 2.2 that under the category o f “Benchm arking Innovations and

N ew A pproaches” , the num ber o f publications increased from 4 in 1990-91 to 38 in 1992-93.


However, 1999 onw ards there appears to be a drop in the number o f publications.
Here, the paper by O ’Dell, [Link]. (1999) is worth mentioning since the paper details

the applicability o f benchm arking in analysing how organisations seek to incorporate various
knowledge m anagem ent approaches into their business. Also, the paper by Guimaraes, et. al.
(1994) speaks about the relationship between overall company innovativeness and company
performance. They also point out that benclimarking innovation involves developing a plan,
which include dim ensions o f innovation success: seeking, evaluating, using and fostering
innovation.
A nother new approach to benchm arking has been highlighted by Fuller, (2000), w here the
use o f benefit curves for benchm arking processes has been extensively discussed. Similarly,

the paper by Featherman, (2000) uses uncertainty m odeling as a com ponent o f


benclimarking, w hich is a new approach towards benchmarking.
Among the 8 papers reviewed under the "Benchm arking-New Approaches" category, it is
w orthwhile to m ention the coverage o f two papers. First one by M cNamee, [Link].{\999)
reports about the Com petitive Analysis M odel, a new approach to strategic benchm arking o f
small firms. The second one by Talluri, [Link]., (2001) describes some geom etrical equations
that will help analyse benchm arking data.

41
Finally, in the category dealing with “Benchm arking in Education” , 21 papers have been
reviewed. These papers deal with benchm arking o f m anagement education, engineering
education, schools and student relations.

2.5.5. Critical View on Review o f Literature

A scrutiny o f the publications show that several aspects o f benchm arking along with
many interesting and diversified applications, have been covered in sufficient detail. These

publications can serve a great deal towards quality improvement. Thus academicians,

practitioners and researchers have a good num ber o f sources in the form o f more than 300
articles to study, discuss and debate over many aspects o f benchmarking.
The present review o f literature on benchm arking, carried out as a part o f on-going research,
has identified certain issues which have not been satisfactorily addressed or not been

addressed at all. These issues can be regarded as inadequacies and they offer scope for
further research and exploration. The issues identified are as follows:

a. Cost aspects o f benclimarking


The overall cost incurred in carrying out a benchm arking exercise needs to be established,

say in tem is o f cost models or cost equations. This would enable the decision-m akers to

decide upon financial com m itm ent before em barking on the benclimarking exercise.
Further it would allow to estimate the return on investment, and to convince the top
management. W hile a precise model is difficult, because o f variability o f factors involved,
an approxim ate m ethod w ould be quite useful.

b. Duration o f benchm arking exercise


G uidelines regarding setting up o f a tim efram e for conducting benchm arking are not
available. If a m ethod can be described to decide upon the total tim e involved in
benclmiarking exercise, it would prove very helpful in setting targets and deadlines.

42
c. H um an Resources in benchm arking activities
Rationale behind formation o f cross-functional benchm arking teams, identification o f tasks

o f benchm arking team s, and responsibility sharing among benchm arking team s, have not
been discussed in sufficient detail. The hum an role in benchm arking activities needs to be
clarified in com plete depth to ensure better team w ork in a benchm arking project.

d. Selecting benchm arking partner


Selection o f partner or superior performer, their duties and responsibilities, legal and business

aspects are to be further elaborated.


Sometimes, the superior perform er as recognised in terms o f m arket leadership or

achievem ents/success rate, may not be w illing to disclose the business practices. This could
be a m ajor deterrent in the benchmarking process. Further best practices followed in a

certain successful organisation may not necessarily be the best when adopted by other

organisations. Eventually, success rate may also significantly differ across organisations.

43
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47
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