Benchmarking is a process which involves obtaining historic construction cost information collected. This historic information provides the benchmark against which a customer can assess their projects value for money at a base building level with set specifics separated out. Benchmarking also can defined as the continuous process of measuring products, services, and practices against the toughest competitors. To successful benchmarking are lies in analysis. Starting with companies own mission statement, a company should honestly analyze its current procedures and determine areas for improvement. Next, a company carefully selects competitors worthy of copying.
Reasons and benefits
Companies benchmark for many reasons. The reasons can be broad for example increasing productivity. The reasons also can be specific for example improving an individual design. Benchmarking is continuous improvement tool. Companies that use benchmarking strategies achieve a cost saving of 30 to 40 percent or more. It supports the process of budgeting, strategic planning and capital planning.
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