Performance benchmarking[1]

Performance Benchmarking By Douglass Keller

Introduction
What is performance benchmarking?
Why use benchmarking?
Who benefits?
How does the process work?
Significant results of an example.

Usefulness of Benchmarking
Pareto rule
PDCA
Increase profit
Greater customer satisfaction

What Is It?
Benchmarking
Initiator
Target
Performance

Performance Categories
Productivity
Research and development
Marketing
Quality
Cost analysis

Why?
Competitive advantage
Increased market share
Lower costs
Increase sales

Who Benefits?
Initiator
Target
Industries
Consumers

How Does It Work?
Determine weaknesses
Establish a benchmark team
Brainstorm potential partners
4a. Gather and study information
4b. Use third party consultant
5. Apply benchmark results

Determine Weakness
Comparisons
Shortcomings
Goals

Form a Team
Find experts
Involve related departments
Set objectives

Set Targets
Brainstorm
Research
Contact
Learn
Reciprocate

Analyze Benchmarked Information
Gather
Analyze
Plan

Third Party Consultants
Integrity
Benefits
Risks

Take Action
Re - address the plan
Test the plan
Study the results
Act

Dell Computers
JIT
Online ordering
Mass customization

Dell Computers
Excellence in turns
Advantages
Disadvantages

Dell Computers
Ordering online
Advantages
Disadvantages

Dell Computers
Mass customization
Advantages
Disadvantages

Exercise
Research Dell Computers’ inventory information and compare those results with the results from Compaq Computers’ inventory statistics. Which company is the leader and which has something to learn from their superior?

Summary
Initiator
Target
Industry
Customer
Necessary
Beneficial

Bibliography
Internet , Dell Computers, Benchmarking, and Consultants
Managing Quality , S. Thomas Foster 2001. Pages 152 – 167.
Value Line October 2001.
Operations Management, Chase, Aquilano, Jacobs 2001 Pages 5, 100, and 272.
Operations Management, Heizer, Render 2001. Pages 176 – 177.

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Performance benchmarking[1]

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Performance benchmarking[1] — Presentation Transcript