What does benchmarking involve in TQM?

Benchmarking in the context of Total Quality Management (TQM) is a systematic process for measuring an organization's performance against those considered to be industry leaders or best practices. This process involves identifying, understanding, and adapting successful practices from other organizations to enhance one’s own outcomes. The goal of benchmarking is to make measurable improvements in an organization’s performance by learning from others who excel in particular areas.

When businesses benchmark, they typically compare various aspects such as quality, time, and cost against competitors or industry leaders. This comparison can reveal gaps in performance and highlight areas where improvements are necessary, driving innovation and efficiency.

Setting quality targets for employees, conducting customer surveys, and developing in-house training materials might contribute to a broader TQM strategy but do not capture the essence of benchmarking. Benchmarking specifically focuses on the comparison aspect to inform strategic decision-making and foster continuous improvement based on performance standards established by top performers in the industry.