IBFA/IBSA Company Benchmarking The IBFA/IBSA Scheme for International Company Benchmarking Steinbeis-Europa-Zentrum, Friday, 7 th June 2002
Export-Akademie POSTGRADUATE STUDIES International Marketing for graduates full-time, part-time (IM) distance study with block courses (FIM) FURTHER TRAINING Further education programmes for managers and junior managers from Germany and other countries Supplementary studies in Business Administration (OBS) Distance learning course in International Marketing (ZIM) Seminars for the export industry (SEFEX) International Management Institut (IMI)
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IBFA/IBSA Company Benchmarking Content 1. Benchmarking 2. International Best Factory Awards (IBFA) and International Best Service Awards (IBSA) 3. Effect of applying results of participation in IBFA/IBSA in the enterprise
IBFA/IBSA Company Benchmarking The Learning Company is characterised by 7 points: 1. System-thinking 2. Preparation of the long-term planning in the Team 3. Common development of the company culture
IBFA/IBSA Company Benchmarking Continued: The Learning Company 4. Professional teamwork 5. Constant learning 6. Learning from the customer, competitor, supplier and friendly companies 7. The people in the independent company
IBFA/IBSA Company Benchmarking Definition of Benchmarking:...the continuous search for solutions, which a focus on the best methods and procedures of the industry, the best practises, and lead the company to top performance. R.C.Camp, 1994, S.13
IBFA/IBSA Company Benchmarking Continued: Definition Benchmarking Best method and procedure of the industry Continuous Lead to top performance Search for solutions
IBFA/IBSA Company Benchmarking The Idea of Benchmarking Benchmarking is NOT a simple comparison of ones own company values from the balance sheet (profit and loss calculation, cost calculation) with those of competitors or with any consultant's ideal values especially not if this is done only once. Important: Comparison of all process values from the whole industry. Continuous comparison of values. Seeking solutions to become the best. Objective: The Learning Company.
IBFA/IBSA Company Benchmarking Steps in the benchmarking-process 1. Establish what we should be looking for in the benchmarking process 2. Find comparable companies 3. Determine the method of data collection 4. Check for any deficiencies in performance 5. Project future performance 6. Communicate results and gain acceptance 7. Fix the objectives in the processes 8. Plans activities 9. Initiate activities and monitor development 10.Motivate all who are involved.
International Best Factory Awards (IBFA) 2001 International Best Service Awards (IBSA) 2001
International Best Factory Awards (IBFA) 2001 International Best Service Awards (IBSA) 2001 Dienstleistung 21% Metall/ Kunststoff/ Zulieferer 45% Maschinen-/ Fahrzeugbau/ Elektrotechnik/ Elektronik 34%
International Best Factory Awards (IBFA) 2001 The processes are quantified in 234 Single Criteria: Main Criteria Plant Profile Structure of Costs Stock Profil Employee Profile Single criteria Cost per squaremeter area Output supplied off the shelf Active used data... Product Innovation Management Information Planned Changes/investments in the Production General Characteristics of the Plant
International Best Factory Awards (IBFA) 2001 Value Added per Production Employee 1000 800 Value Added per Produktion 600 400 200 0 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 All Respondants in Sector Company Position in Matrix Performance Index Median Linie (Horizontal) W ertschöpfung Median Linie (Vertikal) Performance Index
International Best Factory Awards (IBFA) 2001 Table: 2 Planned procurement lead time for the main bought out item / material Units: Days Responses: 57 Non-responses: 1 Decile Lead Time Lead Time by Plant Percentile Longer 78 1 78 80 0.00 7840% 2 58 70 0.00 5760% 3 41 60 0.00 58 4120% 4 30 0.00 3000% 50 41 5 21 0.00 2100% 40 6 20 0.00 2000% 30 30 7 14 0.00 1440% 21 20 20 14 8 6 6.20 620% 10 6 5 9 5 0.00 500% 10 0 0 0.00 10% Shorter Case Data: 10 Mean Average: 35 Median Average: 21 Lead Time (Days) 1 2 3 4 5 6 7 8 9 10 0
International Best Factory Awards (IBFA) 2001 Table: 13 Change of the stock value within the past 2 years Units: Quantity Responses: 57 Non-responses: 1 Stock Change No of Plants Number of Plants by Stock Change Worse >+50% 2 16 0.00 200% 15 +25%zu+50% 10 14 0.00 1000% +10%zu+24% 15 12 15.00 1500% 10 +01%zu+09% 9 10 0.00 900% Constant 6 8 0.00 600% -01%zu-09% 7 6 0.00 700% -10%zu-24% 5 4 0.00 500% 2-25%zu-50% 2 2 0.00 200% >-50% 1 0 0.00 100% Better Case Data: +10%zu+24% Number of Plants >+50% 0.00 +25%zu+ 50% +10%zu+ 24% 9 +01%zu+ 09% 6 Const. Category Analysis 7-01%zu- 09% 5-10%zu- 24% 2-25%zu- 50% 1 >-50%
International Best Factory Awards (IBFA) 2001 Recommendations: In Comparison with the TOP 25% do you have: A longer time procure for the most important parts. Find a possibility to accelerate the procurement A high increase of the stock. Analyse the reasons and try to reduce the stock
International Best Factory Awards (IBFA) 2001 UK and Germany Table: 15 Employees: average rate of absenteeism Units: Percentage Responses: 69 Non-Responses: 0 Decile Absenteeism Rate Absenteeism Rate by Plant Percentile Worse 8% 1st 6.8% 6.8% 0.07 0.00 7% 2nd 5.8% 5.8% 0.06 0.00 6% 3rd 5.0% 0.05 5.0% 0.00 4.7% 4th 4.7% 5% 0.05 0.00 4.0% 5th 4.0% 4% 0.04 0.00 3.5% 3.0% 6th 3.5% 3% 0.03 0.00 2.5% 2.0% 7th 3.0% 0.03 0.00 2% 8th 2.5% 0.02 0.00 1% 9th 2.0% 0.02 0.00 10th 0.0% 0% 0.00 0.00 Better Mean Average: 4.3% Median Average: 4.0% Absenteeism Rate (%) 0.0% 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th
International Best Factory Awards 2001 UK and Germany Recommendation Table 15: The percentage of sick leave taken by the employees throughout the year should remain as low as possible. Possible measures for reducing illness/injury: - Analysis of causes of accidents and additional training for the employees - Steps in the production process showing a high accident/injury rate can be machine automated - Motivation through visualisation of performance - Transfer of responsibility to the employees (for example, through group projects)
International Best Factory Awards (IBFA) 2001 International Best Service Awards (IBSA) 2001 Benefit for the Company: 1. Clear definition of the objective and the course for the benchmarking-process 2. The questionnaire provides a number of indicators to control the real processes 3. Own strength and weakness in comparison to the participants 4. Realistic estimate of own position
International Best Factory Awards (IBFA) 2001 International Best Service Awards (IBSA) 2001 Continued: Benefit... 5. Ideas to improve the processes 6. Start with activities with own project-teams, the EA, consultants,... 7. To get a benchmarking-partner direct or with the benchmarking-bourse 8. How do other companies ensure future improvement 9. PR and advertising, motivation of the employees
International Best Factory Awards (IBFA) 2001 International Best Service Awards (IBSA) 2001 Choose the winner (IBFA und IBSA) Four steps: 1. Frequency on the places 1 to 5 over 53 resp. 23 important processes 2. Very good position in the productivity-performancematrix (turnover per head-performance-matrix) 3. Visits of the audit-teams to the 3 bests per category 4. Choose the Winner in every category and the total winner esp. with qualitative criteria by the auditteams
International Best Service Award (IBSA) 2000 The presentation of the award: Dr. Walter Döring
International Best Factory Awards International Best Service Awards Winners 2001
IBFA General Comparison D / UK / I Average and Top 25%: 1998 Performance Meaasure Leistungsdaten Units Einheit D UK I Number of stock turns Lagerumschlagshäufigkeit # 7,0 (13,9) 9,7 (10,8) 8,3 (9,4) Absenteesim Fehlzeit % 5,0 (2,3) 3,3 (2,1) 4,7 (2,5) Trainings (new starters) Weiterbildungstage Days Tage 12,4 (30,0) 13,6 (21,7) 18,9 (20,0) Trainings Weiterbildungstage Days Tage 4,6 (10,1) 4,7 (5) 4,0 (5,0) Delivery performance Liefergenauigkeit Month Monate 89,8 (99,0) 86,3 (97,5) 84,9 (96,0)
IBFA General Comparison D / UK / I (2) Average and Top 25% :1998 Performance Measure Leistungsdaten Units Einheit D UK I Problem solving teams Problemlösungsgruppen % 34,5 (78,8) 40,1 (70) --- First time pass... Fehlerquote nach... % 97,2 (99,8) 92,8 (98,4) 94,5 (99,4) Innovation rate (last 3 Years) % 5,7 (17,1) 1,7 (8,3) 1,0 (2,0) Time to market Produktinnovationszeit Month Monate 15,5 (4,7) 15 (7,5) 13,0 (12,0)