ExpertMedium2 marksMultiple Choice
ACCA · Question 34 · Performance measurement
Section A
A city's metro rail network wants to improve its train maintenance turnaround times. They decide to study the pit-stop techniques used by Formula 1 racing teams.
What type of benchmarking is this?
Section A
A city's metro rail network wants to improve its train maintenance turnaround times. They decide to study the pit-stop techniques used by Formula 1 racing teams.
What type of benchmarking is this?
Answer options:
A.
Internal benchmarking
B.
Competitive benchmarking
C.
Functional benchmarking
D.
Strategic benchmarking
How to approach this question
Identify the relationship between the two entities. A metro rail and an F1 team are in completely different industries but share a similar 'function' (rapid maintenance).
Full Answer
C.Functional benchmarking✓ Correct
Functional (or generic) benchmarking involves comparing a specific business process or function (e.g., rapid maintenance, customer service) against the 'best-in-class' organizations, regardless of what industry they are in. Comparing train maintenance to F1 pit stops is a classic example of functional benchmarking.
Common mistakes
Confusing functional benchmarking with competitive benchmarking.
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