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BPI Test 2 Benchmarking Questions and
Answers
Bechmarking - Correct Answers -The study of a competitor's product or business practices in order to improve performance of one's own company
The process of improving performance by continuously identifying, understanding, and adapting outstanding practices and processes found inside and outside the organization
Benchmarking seeks to improve any given business process by exploiting best practices rather than merely measuring the best performance True/False - Correct Answers -True
Best practices are the causes of WORST performance True/False - Correct Answers -False
Studying best practices provides the greatest opportunity for gaining a strategic, operational, and financial advantage True/False - Correct Answers -True
Benchmarking is simply copying another successful process exactly True/False - Correct Answers -False
Benchmarking is understanding the conditions that allow for success of process and attempting to replicate the success within existing conditions True/False - Correct Answers -True
The use of benchmarking in a conscientious effort at change is a major requirement for the Malcom Bald ridge award True/False - Correct Answers -True
Benchmarking is only limited to competitors True/False - Correct Answers -False
Benchmarking involves knowing your own performance and circumstances True/False - Correct Answers -True
Benchmarking involves knowing where you want your performance to be True/False - Correct Answers -True
Benchmarking involves an identified examplar of that future performance True/False - Correct Answers -True
Benchmarking involves understanding the gaps between NOW and FUTURE True/False - Correct Answers -True
Benchmarking involves a clear plan to close the gap with measurable improvements True/False - Correct Answers -True
Best in class is usually the top 10% of reported performance in quantitative studies True/False - Correct Answers -False
The reason we benchmark is to increase profits True/False - Correct Answers -True
2 key types of benchmarking - Correct Answers -Quantitative
Qualitative
Quantitative benchmarking - Correct Answers -Demonstrates results
Qualitative benchmarking - Correct Answers -Demonstrates best practice
Think Decathletes example
CSCMP has published minimum and best practice standard for each process True/False - Correct Answers -True
CSCMP stands for? - Correct Answers -Council of Supply Chain management Professionals
CSCMP - Correct Answers -
Practice generates results True/False - Correct Answers -True
Improve practices to obtain best results True/False - Correct Answers -True
With CSCMP standards you can rank selected processes against the standard and identify the process changes required to achieve the target True/False - Correct Answers -True
Implementing results Comparable processes Available resources Standard definitions Clear goals for benchmarking Willingness to share Finding the right partner Senior management support
A study by APQC found that companies that were most successful in benchmarking provided LOWER level management engagement and had a WEAK financial focus True/False - Correct Answers -False
7 steps of benchmarking - Correct Answers -1. Set benchmarking priorities
- Identify the key processes
- Collect data operational and managerial
- Identify examplar
- Identify gaps
- Identify roadmap
- Close gaps and improve process
Steps 1 and 2 are for MEASURING True/False - Correct Answers -False
Step 3 is where you PLANNING metrics True/False - Correct Answers -False
Step 4, 5, and 6 are where you COMPARE True/False - Correct Answers -True
Step 7 is where you ACT True/False - Correct Answers -True
PDCA cycle - Correct Answers -Plan -Set priorities -Determine critical process Measure -Collect data Compare -ID examplar -ID gaps -ID roadmap Act -Close gaps
Step 4 - Correct Answers -Research and compare best in class performance
Step 5 - Correct Answers -Define reasons for low performance
Step 6 - Correct Answers -Develop an improvement road map and set priorities
Benchmarking is more easily driven in an environment that has a tradition of continuous improvement True/False - Correct Answers -True
Ultimately, culture will NOT determine whether performance improvement is embraced True/False - Correct Answers -False
Efforts of benchmarking can be tremendously improved with an effective changed management plan True/False - Correct Answers -True
Consider narrowing down your list of what you would like to benchmark against when selecting critical processes to benchmark (Step 2) True/False - Correct Answers -True
Collecting accurate/comparable data is NOT the biggest challenge for companies trying to benchmark (Step 3) True/False - Correct Answers -False
Where can you go to collect your benchmark data? - Correct Answers -Internal Customers Industry associations Formal benchmarking services Karmic benchmarking
It is better to benchmark against best in class vs. best in your industry True/False - Correct Answers -True
When looking at quantitative data first determine which core process you will benchmark (Step 3) True/False - Correct Answers -True
Once the gap is known, the processes can be classified as need improvement, maintain, or reevaluate True/False - Correct Answers -True
Improve - Correct Answers -Processes that are most important to strategic goals
Maintain - Correct Answers -Performance in those processes in which there is no competitive advantage to be gained
