Lean Six Sigma is a process improvement methodology that can help businesses achieve dramatic performance improvements. But what is Benchmarking, and why is it an essential part of Lean Six Sigma?
In this post, I explain the basics of Benchmarking and how it can help you achieve success with Lean Six Sigma.
Benchmarking is the process of comparing your company’s performance against that of other businesses in your industry. Benchmarking aims to identify areas where your company can improve its efficiency and effectiveness.
Lean Six Sigma is a methodology that relies on benchmarking to help organizations identify areas where they can improve their operations. This blog post will discuss what benchmarking is, how it is used in Lean Six Sigma, and when you should use it in your own organization.
How Benchmarking Is Used in Lean Six Sigma
The Lean Six Sigma methodology uses benchmarking as a tool to help organizations identify areas where they can improve their operations. To do this, Lean Six Sigma practitioners compare their company’s performance against that of other businesses in their industry. This allows them to see where their company falls short and make changes accordingly.
There are two main types of benchmarking: internal and external. Internal benchmarking compares your company’s performance against its historical performance. This can be useful for tracking your company’s progress over time, but it does not provide insight into how it stacks up against its competitors. External benchmarking, on the other hand, compares your company’s performance against that of other businesses in your industry. This provides valuable insights into where your company needs to improve its operations.
When Should You Use Benchmarking?
Benchmarking is a valuable tool that can be used to identify areas where your company needs to improve its operations. However, it is crucial to use benchmarking wisely. Over-reliance on benchmarking can lead to “paralysis by analysis.” This occurs when organizations become so focused on data and comparisons that they lose sight of their goals and objectives. As such, it is essential to use benchmarking as one tool in a more extensive arsenal of improvement tools.
To benchmark different processes against each other, you can also use the sigma, DPMO or perhaps Capability Analysis. This can be useful to compare overall delivery quality of different services against each other.
Benchmarking is a valuable tool that can be used to identify areas where your business needs to improve its operations. However, it is essential to use benchmarking wisely so as not to fall into the trap of “paralysis by analysis.” Benchmarking can help you take your business to the next level when used correctly!