The Role of Benchmarking for Decision Making to Ethiopian Manufacturing Industry

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Addis Ababa University


Today Benchmarking is one of the most important improvement tools the leading organizations have been using, to reach world-class levels of performance. The Ethiopian leather and leather product industries are not as efficient as it could be therefore, this research work makes an assessment on benchmarking related problems in Ethiopian LLPMI in order to develop an applicable Benchmarking model so that the over all performance of the sector can be improved and also this research work aimed at finding best practice work to improve the competitiveness and business Excellency of our leather products and to indicate that if benchmarking is properly practiced and implemented in the sectors, it is a weapon for decision making on the way to competitiveness and business excellence. Some benchmarking process models of more recognized companies were surveyed on how leading companies in other world are performing benchmarking processes with their partners. To undertake this research, a sample size of 25 ELLPMI was taken. Primary and secondary data were collected and analysed to identify the level of understanding and implementation of benchmarking process and their current status in terms of competitiveness in the local and international market and their effort in using process improvement tools for better achievement using a well structured questionnaire, interviews, personal observations and review of previous research works. As well gap analysis with 14 parameters and 185 activities of selected shoe industries of Ethiopia (Tikur Abay Shoe with best in practice is performed. The findings from this research work reveal that benchmarking process is not being used by ELLPI for decision making on the way to competitiveness and business Excellency as well for performance improvements and even the basic concept is not well understood. The other finding from gap analysis indicates in all of the parameters more than 50% of the companies activity have gap when compared with the best practice and some activities of the best practice are not known in the company. These indicates that our industries are enjoying false sense of accomplishment from short term profitability and so they need to stick their neck further out of the box, and seem to be able to learn some thing new each time they look. Based on research findings, Generic Benchmarking Process Model with five phases and twenty two possible steps has been developed and recommended as a solution to start benchmarking and to see its role for decision making on the way to competitiveness and business Excellency.



Benchmarking, Competitiveness, Business Excellency, Decision making