Download www.iapmei.pt

Applied Benchmarking for Competitiveness
A tailored response to the productivity deficit
Prof Emeritus Eddie O’Kelly
C RK 1998-2006
Applied Benchmarking for Competitiveness
The Problem
 EU
- GDP
33% below US
17% below Japan
EU productivity lags behind US and
Japan
EU employment grow slower than US
and Japan
C RK 1998-2006
Applied Benchmarking for Competitiveness
The Response
 Single
Market
 Single Currency
 Benchmarking for Competitiveness
 The Lisbon Agenda
C RK 1998-2006
Applied Benchmarking for Competitiveness
Why Benchmarking?
 Benchmarking
allows us to :
• Analyse & Improve Key
Business Processes
• Eliminate Waste
• Improve Performance
• Improve Profitability & Market
Share
 Based
C RK 1998-2006
on FACTS…..
Applied Benchmarking for Competitiveness
Benchmarking = Diagnosis
World Class = Medicine
Networks = Delivery Mechanism
Applied Benchmarking for Competitiveness
C RK 1998-2006
Applied Benchmarking for Competitiveness
Ireland – Then and Now
Unemployment was 20% now <5%
 2nd biggest software exporter in the world
 EU funding = 10% GDP growth in past ten
years
 SMEs ranked 15th in productivity
 Running out of people - Now looking to be
more EFFECTIVE with the people we have...

C RK 1998-2006
C RK 1998-2006
Lux
emb
our
g
Ge
rma
ny
Net
her
land
s
Den
ma
rk
Sw
itze
rlan
d
EU
UK
Aus
tria
Bel
gium
Sw
ede
n
No
rwa
y
Italy
Fra
nce
Finl
and
Irel
and
Po
rtug
al
Gre
ece
Spa
in
Applied Benchmarking for Competitiveness
RelativeSMEproductivity1996(%ofavg.Productivity)
110
100
90
80
70
60
50
Applied Benchmarking for Competitiveness
Productivity
of Irish SMEs only 68% of E.U. average
SME Performance - Ranking (18 countries)
Company Size
Ireland
Germany
C RK 1998-2006
0-9 10-49 50-250
15th
3rd
15th
3rd
2nd
3rd
Applied Benchmarking for Competitiveness
Building Capability
1 Introduction to Benchmarking
5
2 Quick Fix
4
3 Follow up Benchmarking
3
2
1
C RK 1998-2006
4 In Depth Improvements
5 Process Benchmarking
Applied Benchmarking for Competitiveness
The Diagnosis
C RK 1998-2006
Applied Benchmarking for Competitiveness
Benchmarking is a continuous
systematic process for
comparing business
processes for improvement...
C RK 1998-2006
Applied Benchmarking for Competitiveness
 Objective
 Compare
against international
database
 Learn from Best Practice
Examples
 Prioritise Actions… for
improvement
C RK 1998-2006
Applied Benchmarking for Competitiveness
 Access
to largest European
Databases for SMEs
 Quantitative and Qualitative
 Easily accessed
 Rapid response
 Building competitiveness for the
future
C RK 1998-2006
Applied Benchmarking for Competitiveness
Premier Division
Manchester United
Blackburn
Arsenal
.
.
.
Barnsley
Everton
C RK 1998-2006
P
15
15
15
15
15
…
…
…
F
36
27
30
A
12
13
17
Pts
31
30
27
…
…
12
16
40
23
13
12
Applied Benchmarking for Competitiveness
SCHOOL REPORT
MATHS
ENGLISH
IRISH
…….
75%
68%
80%
Comment:
Richard could focus on his English, particularly his grammar.
C RK 1998-2006
Applied Benchmarking for Competitiveness
Stage
Starting
On The Way
Mature
B/marking
Maturity of
Company
Top Class
Diagnostic
Holistic
Process
C RK 1998-2006
Applied Benchmarking for Competitiveness
The Medicine
C RK 1998-2006
Level 3
Applied Benchmarking
for Total
Competitiveness
Process
The Five
Overall
Six Sigma
Understand
Do
Benchmark
ing
S’s
Productive
Maintenanc
e
Equipment
Efficiency
Business
Excellence
Value
Analysis
&Managem
ent
Lean
Production
Target Cost
Manageme
nt
Level 2
Understand
Do
Look
ee
Understand
Do
ook
Facilitated
Assessment
Benchmarking
Physical&Proc
ess Flow in the
Office
Physical&Proc
ess
Development
Production
Control
Systems
Saving Time in
the Workplace
Maintenance
Practical
Quality Tools
Team Building
& Culture
Sales and
Growing them
Financial
Management
Supply Chain
& Logistics
Innovation&
Design
Business
Strategy
Implementatio
n
Level 1
See
Look
C RK 1998-2006
Self
Assessment
Benchmarking
Physical Flow
Process Flow
Set Up Time
Reduction
Check Sheets
Run Chart
People &
Teams
Basic
Maintenance
Applied Benchmarking for Competitiveness








C RK 1998-2006
JIT:
TQM:
Employee Involvement:
TPM:
WORLD CLASS DESIGN:
BPR
SUPPLIER DEVELOPMENT
MEASUREMENT SYSTEMS
Applied Benchmarking for Competitiveness



Company
Sector
Area of Focus
Keenans
Erin Foods
Laserform
• Profiling
• Dies
• Fabrication
Engr
Food
Sales Team Devel.
BPR, Purchasing
SubCEng
Print&Pkg
Engr
Prod Plan.&BPR
Process&Team Dev
Process Dev
C RK 1998-2006
Applied Benchmarking for Competitiveness






Company
Sector
Burnside Autocyl
Intl Meat Ingred.
Colourbooks
Tanco
PB M/cTech
Mc Nally Joinery
Engr
Food
Printing
Engr
Engr
Timber
C RK 1998-2006
Area of Focus
Cells&KanBan
BPR& Office
TPM
Supplier Dev
Costing&Quoting
Prod Plan&Layout
Applied Benchmarking for Competitiveness
Summary of Key Benefits







C RK 1998-2006
60% improvement in productivity
WIP down by 85%
Lead time reduced from 5 weeks to 1
week
Happier customers
Shortages from £13,000 to £1,200 / mth
Purchasing savings of £500,000 ++
People freed to improve business
processes...
Applied Benchmarking for Competitiveness
The Network
C RK 1998-2006
Applied Benchmarking for Competitiveness
World Class Networks





C RK 1998-2006
Companies learning with and from each other
Off-site training
On-site help with implementation
Site visits to other companies already using
World Class techniques
Using a proven process of World Class tools
Applied Benchmarking for Competitiveness





C RK 1998-2006
KEY POINTS:
Networking - 12 Companies - Cost &
Resource Effective
Benchmarking Qualitative &
Quantitative
Best Practice Introduction
Off-Site - Training, On-Site
Interpretation
Applied Benchmarking for Competitiveness
Working together!
C RK 1998-2006