What is internal benchmarking?

• A. Comparison against the best elsewhere in the organisation
• B. Comparison against the best elsewhere in the Industry
• C. Comparison against the best functional area in any industry
• D. Calculate the quantity of materials required for each type of material and when they will be required

Answer: (A)

Internal benchmarking means comparing performance across different parts of the same organization to find the best-performing area and then adopting its practices elsewhere. It uses data from within the company, so the comparisons reflect the organization’s own context, processes, and constraints, making the lessons easier to implement. This differs from external benchmarking, which compares to other companies or industry leaders, and from options that describe unrelated tasks like material planning.