Question 72 - CPIM-Part-2 discussion

Providing a realistic basis for setting internal performance targets can be accomplished through benchmarking. Benchmarking is a process of comparing one's own performance, processes, or practices with those of other organizations that are recognized as leaders or best in class in a specific area. Benchmarking can help identify gaps, strengths, weaknesses, opportunities, and threats in one's own performance, as well as learn from the experiences and successes of others. Benchmarking can also help set realistic, achievable, and challenging goals and targets for improvement, based on external standards or benchmarks. Benchmarking can be done internally (within the same organization), externally (with other organizations in the same industry or sector), or functionally (with other organizations that perform similar functions or processes).

Beta testing is not a way of providing a realistic basis for setting internal performance targets. Beta testing is a stage of product development where a sample of potential users or customers test a product or service before it is released to the general public. Beta testing can help identify and fix any bugs, errors, or issues in the product or service, as well as collect feedback and suggestions for improvement. Beta testing can also help evaluate the usability, functionality, and quality of the product or service, as well as measure customer satisfaction and loyalty. Beta testing is not related to setting internal performance targets, as it is focused on the product or service, not the organization.

Breakthrough innovation is not a way of providing a realistic basis for setting internal performance targets. Breakthrough innovation is a type of innovation that creates significant value for customers and markets by introducing new products, services, or business models that are radically different from existing ones. Breakthrough innovation can help create competitive advantage, disrupt existing markets, or create new markets. Breakthrough innovation is not related to setting internal performance targets, as it is focused on the outcome, not the process.

Best practices are not a way of providing a realistic basis for setting internal performance targets. Best practices are methods or techniques that have been proven to be effective and efficient in achieving desired results or outcomes. Best practices can be derived from one's own experience, research, or benchmarking. Best practices can help improve performance, quality, or productivity by adopting proven solutions or standards. Best practices are not related to setting internal performance targets, as they are focused on the implementation, not the measurement.