Certified Production & Operations Manager (POM) Practice Exam

In quality control, what does benchmarking involve?

1. Establishing standards based on regulations

2. Comparing performance against best practices

3. Regular inspections of outputs

4. Setting internal quality goals

The correct answer is: Comparing performance against best practices

Benchmarking in quality control is a systematic process of comparing an organization's processes, performances, and metrics against those considered to be the best practices in the industry. This practice allows organizations to identify areas of improvement, understand competitive performance, and adopt strategies that lead to enhanced efficiency and effectiveness. By benchmarking against the best, companies can gain insights into how they can enhance their operations, reduce waste, and increase quality. For context, establishing standards based on regulations primarily focuses on compliance rather than performance improvement. Regular inspections of outputs are more about monitoring quality rather than comparing it to other benchmarks. Setting internal quality goals involves establishing targets for quality within the organization but does not necessarily incorporate external best practices for comparison. Thus, benchmarking is distinct in its focus on external comparisons to drive improvements.