How to Benchmark? Is Benchmarking of any value? Seeking advice

Re: How to benchmark (seek advice)? Is Benchmarking of any value?

hjilling said:

I think it was Truman who said, "Use all the brains you have, plus all the brains you can beg, borrow or steal."

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Helmut, I found this:

I not only use all the brains that I have, but all that I can borrow.
- Woodrow Wilson

Stijloor.

Re: How to benchmark (seek advice)? Is Benchmarking of any value?

Stijloor said:

Helmut, I found this:

I not only use all the brains that I have, but all that I can borrow.
- Woodrow Wilson

Stijloor.

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I borrowed all the brains that I have, so I do not use them.
- Jim Wynne

Re: How to benchmark (seek advice)? Is Benchmarking of any value?

Is there any forum on Benchmarking. There is One Set of parameters which are Training Hours/ Person Employees, Direct Manpower to Indirect manpower , Inventory Turnover ratio, Absenteeism etc. which could be easily Benchmarked. Besides this Industries also would not have much problem to share in comparison to Functional ratio and Productivity ratios.

Regards,

Manoj

Re: How to benchmark (seek advice)? Is Benchmarking of any value?

Manoj Mathur said:

Is there any forum on Benchmarking. There is One Set of parameters which are Training Hours/ Person Employees, Direct Manpower to Indirect manpower , Inventory Turnover ratio, Absenteeism etc. which could be easily Benchmarked. Besides this Industries also would not have much problem to share in comparison to Functional ratio and Productivity ratios.

Regards,

Manoj

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I don't know of any benchmarking forums offhand, but since there are Internet forums for just about everything, I'd be surprised if there weren't. You might want to start with a simple Google search and go from there.

I wouldn't put very much credence in any information found regarding actual performance numbers that can't be verified, but there could be some value in learning about how others do things. I still say that the best way to get to "best practices" is to get the best people--that's why the best companies are the best. And as far as learning about how others do things, the Cove is the best place I know of.

Re: How to benchmark (seek advice)? Is Benchmarking of any value?

Though I am stretching the definition here....

To me: Benchmark to gain insight / not to imitate. It is always nice to know where you stand with regards to competitors/other plants but it seems to drive imitators and "late-comers" mentality. However, I am not totally against benchmarking outside of your core business in order to find creative solution. Think of communicating with customers the same way as Avon (etc.). If you go outside your category you can often create interesting systems that piggyback on the best of the best. But, once again, why would you want to limit yourself by benchmarking to a competitor.

Re: How to benchmark (seek advice)? Is Benchmarking of any value?

QualityKangaroo said:

To me: Benchmark to gain insight / not to imitate.

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I think both possibilities are fair game. Maybe imitate with further improvement? Remember the Japanese approach? It appears the Chinese are applying this approach, too.

QualityKangaroo said:

It is always nice to know where you stand with regards to competitors/other plants but it seems to drive imitators and "late-comers" mentality.

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That 'mentality' is a common, legitimate business model - especially if you improve upon the imitation with cost or quality improvements.

QualityKangaroo said:

But, once again, why would you want to limit yourself by benchmarking to a competitor.

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True - anywhere you can find a source of improvement is valid.

Re: How to benchmark (seek advice)? Is Benchmarking of any value?

darkafar said:

Assumptions:
1. Every manufacturing factory has to have several major customers to survive. These customers are the market.

2. The customers have their own supply evaluation system, they do the evaluation of their supply performance on a monthly or quarterly basis, and they have the rating data of their suppliers.

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Yes, organizations have a growing need to get a clear view on their own qualities and performances with regard to their competitors and eye of their customer. It isn't sufficient any more to have self-assessment report on the status of performance.

darkafar said:

So the benchmarking is simply getting the customers’ rating data and using them.

Benchmarking steps:
1. Select a well educated employee from the organization as contact window to do the benchmarking.
2. This person negotiates an agreement with the major customers to get access to the customers’ supply rating data.
Note: the organization doesn’t have to know the customers’ supplier name, so the customer can use letters to represent suppliers.
3. The organization can then use the data to decide its position in market (the customer’s rating), adjust its KPIs, do gap analysis, and take suitable measures to close the gaps.

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I think the first step is to identify your problem areas. Because benchmarking can be applied to any business process or function.

darkafar said:

I see no reason why the customers would not cooperate, so it is operable.

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Yes, it actually requires cooperation with others as benhmarking partners learn from each other where improvements can be made. Otherwise, it's not benchmarking but an industrial espionage. It’s more challenging and more expensive process.

darkafar said:

My first question is: is this benchmarking?

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Again, it's benchmarking partners.

darkafar said:

Second question: how do you think of this?

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well, it's moderately expensive process, but most organizations find that it more than pays for itself.

Re: How to benchmark (seek advice)? Is Benchmarking of any value?

dQApprentice said:

well, it's moderately expensive process, but most organizations find that it more than pays for itself.

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Evidence? Data?

Re: How to benchmark (seek advice)? Is Benchmarking of any value?

Jim Wynne said:

Evidence? Data?

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You mean something like these:
Xerox: The Benchmarking Story

Benchmarking for Best Practices: Winning Through Innovative Adaptation

(broken link removed)

...etc. .... etc. ... etc. ...

I am sure you will find nicely filtered stories of the benefits - or costs - of benchmarking if one sifts through the internet, research and marketing media.

Will it benefit every case? Not always. As you peruse the citations, one of the biggest downsides is inadequate preparation for benchmarking. I think and other is interpretation. What you might interpret as a good idea on the surface simply might not be one. Benchmarking holds many of the same issues as surveys.

Re: How to benchmark (seek advice)? Is Benchmarking of any value?

Jim Wynne said:

Evidence? Data?

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Benchmarking is sometimes free. I wrote a procedure and I compared my work for similar stuff available in this forum. I can think of so many people who can benefit from this forum. Thank you, Marc. Two thumbs up!!!