Benchmarking

Is defined by CIMA as The Establishment, through info gathering of targets and comparators, through whose use relative levels of effect (and under execution of instrument) gouge be identified. CIMA, 2008 This definition explains in my mind that bench marking is the comparison of one/ some(prenominal) social clubs comparison of relative factors to anothers. Therefore seeing how a companys best practise differs to your own. There argon several types of benchmarking that a company may use Internal, Functional, Competitive and Strategic.A company may use internal benchmarking to compare different processes at bottom the same departments. If they use functional benchmarking then they are mainly aspect their departments and which runs better regardless of their different outputs. Competitive benchmarking is information gathered nigh direct competitors and finally strategic is a longer term benchmark technique. This is used for companies looking for organisational change.The main advantage for benchmarking is to set the foundation for performance improvement to help better competitors Nayab, 2010 and overall be the best company in the Market place. On the other hand a detriment is how readily available is all the information you require to benchmark? line of reasoning Process Re-engineering Is defined by Drury as examining seam processes and making pregnant changes to how the company operates. Drury C, 2008 BPR is a major tool used by business because they want gains in performance and quality, and they need to cost reductions to strive for lettuce maximisation.When re-engineering processes they look at what has been done and try to improve it. A regular example may be Building a motorcar by hand takes a considerable long time, however if they changed the process to the car being built by a robot, then they could increase performance and quality. However there are many negatives to usage of BPR. It has an uncertain go out because it is an all or noth ing technique (high risk). In addition it is verbalise that