Benchmarking: Can you benchmark XYZ?
Your operational dept encounters production defect at the rate of 3 defects per 1000 lines of code. During a vendor meet you come across another company XYZ that is of the same size of yours and in the same industry. This company’s production defect is 2 defects per 1000 lines of code.Can you conclude that the XYZ operation dept is better that yours. Can you use this for benchmarking. Explain.
The company cannot be used as benchmarking unless 2 defects per 1000 is considered to be acceptable or best in industry.
This sample or case is not sufficient to conclude that company XYZ is better than ours. Although they have 1 defect less. A greater sample or consistent performance from XYZ could be taken to determine if XYZ's processes are really better than ours.
In order to determine whether to adopt XYZ's process, we will need to do the following:
*) Identify our problem areas. - This can be done by analyzing the defects and determining the root causes. Make a list of your problem areas and then use Pareto to shortlist the critical ones.
*)Identify other industries that have similar processes
*)Identify if XYZ is a leader or best in these areas -For this to happen you will have to visit XYZ company.
*)Identify which companies are the leaders in implementing the processes which are your problem areas. You may need to visit those companies too.
*) Implement new and improved business practices - After this analysis you should have a good information to make a decision whether or not to follow any of XYZ's process or practices.