This set of Total Quality Management Multiple Choice Questions & Answers (MCQs) focuses on “Types of Benchmarking – 1”.
1. In which form of benchmarking is comparison of a business process done with a similar process within the organization?
a) Internal benchmarking
b) Competitive benchmarking
c) Functional benchmarking
d) Generic benchmarking
View Answer
Explanation: In Internal benchmarking, comparison of a business process is done with a similar process within the organization. Comparable sites, branches, sections, departments within the business can be chosen for benchmarking.
2. Which of the following is not an advantage of internal benchmarking?
a) Low cost
b) High cost
c) Relatively easy
d) Deeper understanding of all the processes of the organization
View Answer
Explanation: Internal benchmarking is comparison of a business process that is done with a similar process within the organization. It is low cost, relatively easy and it leads to in-depth understanding of all the processes of the organization.
3. Which of the following is not a challenge to internal benchmarking?
a) Low performance improvement
b) Internal bias
c) It may not provide best-in-class comparison
d) High performance improvement
View Answer
Explanation: Internal benchmarking may lead to low performance improvement and it might not provide best-in-class comparison. Internal bias may also be an additional challenge. Hence, we must wisely use internal benchmarking as a comparison tool.
4. In which form of benchmarking is direct comparison with competitor done of a product, service, process or method?
a) Internal benchmarking
b) Competitive benchmarking
c) Functional benchmarking
d) Generic benchmarking
View Answer
Explanation: In competitive benchmarking, direct comparison with competitors is done of a product, service, process or method. This form of benchmarking is efficient in knowing where your organization stands compared to your competitors.
5. Competitor benchmarking can also open the possibility for partnership.
a) True
b) False
View Answer
Explanation: In competitive benchmarking, direct comparison with competitors is done of a product, service, process or method. Therefore, if mutual consensus is there to grow together between two competitors, a partnership can also happen.
6. Trade secrets may be a challenge in competitor benchmarking.
a) True
b) False
View Answer
Explanation: Trade secrets may be a challenge in competitor benchmarking. This can lead to improper comparison and may yield to improper results. Competitors can also capitalize on your weakness which may also pose a threat to your organization.
7. In which form of benchmarking is comparison of similar or identical practices within same or immediate industry is done?
a) Internal benchmarking
b) Competitive benchmarking
c) Functional benchmarking
d) Generic benchmarking
View Answer
Explanation: In functional benchmarking, comparison of similar or identical practices within same or immediate industry is done. This provides information about industry trends. The improvement rate of the organization becomes better too.
8. Which of the following is not a challenge to functional benchmarking?
a) Variation in corporate culture
b) Takes more time than internal benchmarking
c) Common functions are difficult to find
d) Takes less time compared to internal benchmarking
View Answer
Explanation: In functional benchmarking, comparison of similar or identical practices within same or immediate industry is done. Variation in corporate culture is a major challenge to functional benchmarking. It takes more time compared to internal benchmarking as common functions are difficult to find.
9. In which form of benchmarking unrelated business processes or functions that can be utilized are studied?
a) Internal benchmarking
b) Competitive benchmarking
c) Functional benchmarking
d) Generic benchmarking
View Answer
Explanation: In generic benchmarking, unrelated business processes or functions that can be utilized are studied. Bar coding concept used at an airport adopted from a grocery store is an example of generic benchmarking.
10. Which of the following is not a benefit of generic benchmarking?
a) Non-competitive
b) Lack of innovation
c) Non-threatening
d) High potential towards discovery
View Answer
Explanation: Generic benchmarking leads to innovation. It is non-competitive. It is non-threatening. It also has a high potential towards discovery.
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