Benchmarks can be established but they are somewhat limited as they work with single measurements one at a time. For this reason, benchmarking is often used in managing service operations, because service standards (benchmarks) are more difficult to define than manufacturing standards. Performance evaluation and benchmarking are a widely used method to identify and adopt best practices as a means to improve performance and increase productivity, and are particularly valuable when no objective or engineered standard is available to define efficient and effective performance. To improve performance, one needs to constantly evaluate operations or processes related to producing products, providing services, and marketing and selling products. Managers are often under great pressure to improve the performance of their organizations.
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