Applied Benchmarking for Competitiveness

C RK 1998-2006

Prof Emeritus Eddie O’Kelly

A tailored response to the productivity deficit

Applied Benchmarking for Competitiveness

C RK 1998-2006

The Problem EU - GDP

33% below US17% below Japan

EU productivity lags behind US and Japan

EU employment grow slower than US and Japan

Applied Benchmarking for Competitiveness

C RK 1998-2006

The Response

Single Market Single Currency Benchmarking for Competitiveness The Lisbon Agenda

Applied Benchmarking for Competitiveness

C RK 1998-2006

Why Benchmarking? Benchmarking allows us to :

• Analyse & Improve Key Business Processes

• Eliminate Waste

• Improve Performance

• Improve Profitability & Market Share

Based on FACTS…..

Applied Benchmarking for Competitiveness

C RK 1998-2006

Benchmarking = Diagnosis

World Class = Medicine

Networks = Delivery Mechanism

Applied Benchmarking for Competitiveness

Applied Benchmarking for Competitiveness

C RK 1998-2006

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...

Ireland – Then and Now

Applied Benchmarking for Competitiveness

C RK 1998-2006

Relative SME productivity 1996 (% of avg. Productivity)

50

60

70

80

90

100

110

Applied Benchmarking for Competitiveness

C RK 1998-2006

SME Performance - Ranking (18 countries)

Company Size 0-9 10-49 50-250

Ireland 15th 15th 2ndGermany 3rd 3rd 3rd

Productivity of Irish SMEs only 68% of E.U. average

Applied Benchmarking for Competitiveness

C RK 1998-2006

1

23

45

1 Introduction to Benchmarking

2 Quick Fix

3 Follow up Benchmarking

4 In Depth Improvements

5 Process Benchmarking

Building Capability

Applied Benchmarking for Competitiveness

C RK 1998-2006

The Diagnosis

Applied Benchmarking for Competitiveness

C RK 1998-2006

Benchmarking is a continuous systematic process for comparing business processes for improvement...

Applied Benchmarking for Competitiveness

C RK 1998-2006

Objective Compare against international

database Learn from Best Practice

Examples Prioritise Actions… for

improvement

Applied Benchmarking for Competitiveness

C RK 1998-2006

Access to largest European Databases for SMEs

Quantitative and Qualitative Easily accessed Rapid response Building competitiveness for the

future

Applied Benchmarking for Competitiveness

C RK 1998-2006

Premier Division

P F APts

Manchester United 15 … 36 12 31

Blackburn 15 … 27 13 30

Arsenal 15 … 30 17 27

.

.

.

Barnsley 15 … 12 40 13

Everton 15 … 16 23 12

Applied Benchmarking for Competitiveness

C RK 1998-2006

SCHOOL REPORT

MATHS 75%

ENGLISH 68%

IRISH 80%

…….

Comment:

Richard could focus on his English, particularly his grammar.

Applied Benchmarking for Competitiveness

C RK 1998-2006

Stage

B/markingMaturity ofCompany

Starting On The Way Mature

DiagnosticHolistic

Process

Top Class

Applied Benchmarking for Competitiveness

C RK 1998-2006

The Medicine

Applied Benchmarking for Competitiveness

C RK 1998-2006

Do

Look

See

Understand

Do

Look

See

DoUnderstand

Process Benchmarking

The Five S’s

Total Productive

Maintenance

Overall Equipment Efficiency

Six Sigma

Business Excellence

Value Analysis &Management

Lean Production

Target Cost Management

Facilitated Assessment

Benchmarking

Physical&Process Flow in the Office

Physical&Process

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

Implementation

Self Assessment Benchmarking

Physical Flow Process Flow Set Up Time

Reduction

Check Sheets Run Chart People & Teams

Basic

Maintenance

Level 1

Level 2

Level 3

LookSee

Understand

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

C RK 1998-2006

Company Sector Area of Focus Keenans Engr Sales Team

Devel. Erin Foods Food BPR, Purchasing Laserform

• Profiling SubCEng Prod Plan.&BPR

• Dies Print&Pkg Process&Team Dev

• Fabrication Engr Process Dev

Applied Benchmarking for Competitiveness

C RK 1998-2006

Company Sector Area of Focus Burnside Autocyl Engr Cells&KanBan Intl Meat Ingred. Food BPR& Office Colourbooks Printing TPM Tanco Engr Supplier Dev PB M/cTech Engr Costing&Quoting Mc Nally Joinery Timber Prod Plan&Layout

Applied Benchmarking for Competitiveness

C RK 1998-2006

Summary of Key Benefits 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

C RK 1998-2006

The Network

Applied Benchmarking for Competitiveness

C RK 1998-2006

World Class Networks 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

C RK 1998-2006

Working together!