Question

Which of the following best describes process benchmarking?

A. Studying operations of organizations with similar processes regardless of industry.
B. Studying an organization in the same industry.
C. Comparing a process in one operation with a similar process but in a different industry.
D. Applying best practices in one part of the organization to its other parts.

Answer 1

Process benchmarking involves comparing a process in one operation with a similar process but in a different industry option (c) to identify best practices and opportunities for improvement.

Step-by-step explanation:

The best description of process benchmarking is option C: comparing a process in one operation with a similar process but in a different industry.

Process benchmarking involves studying and analyzing the practices and performance of organizations in different industries that have similar processes. This allows for the identification of best practices and opportunities for improvement. By comparing processes across industries, organizations can gain valuable insights and ideas for enhancing their operations.

For example, a manufacturing company could benchmark its supply chain process against a similar process in the healthcare industry. This cross-industry comparison can provide insights and innovative ideas that can be applied to improve the efficiency and effectiveness of the manufacturing company's supply chain.