Benchmarking Brief

8/10/2019 Benchmarking Brief

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EPIC, GOLEM IMS GMBH, Austria 1

BENCHMARKING:

A CONTINUOUS PROCESS OF MEASURING OWN

VITAL FACTORS AGAINST OWN PAST OR LEADERSOR COMPETITORS

Benchmarking is the process of comparing

Benchmarking tools are simple or complex ratios(indicators)

Indicators are made up of business results such as revenue,costs, added value, etc.

Issues: Id

entifying indicators, availability of data, comparisons at enterprise

level vs. own past results or between enterprises.


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BENCHMARKING EXAMPLES

Comparing

similar

factors in

the same or

different

enterprises

e.g.:

==>

Performance of wood furniture manufacturingin two different enterprises e.g. how materials are purchased how suppliers are paid how inventories are managed how employees are trained how payrolls are processed how fast new products get to the market

how quality is managed

KPI change in given industrial sector over

time Comparing performance of key industrial

sectors in a region or country Comparing performance of regions or

countries


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BENCHMARKING - CONCLUSION

Important tool for entrepreneurs, consultants and policymakers

Difficulties in obtaining data

Sensitivity of entrepreneurs to releasing data Data validity verification Incentives for entrepreneurs taking part Cultural differences

It is a critical technique for making organizational transformation easy It requires a certain threshold of organizational willpower

companies unable to muster the willpower to compare themselves with itspast and with the world's best cannot implement any quality approach

benchmarking demonstrates the requisite willpower or its absence


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SUMMARY:

Benchmarking is a Process!

Benchmarking is not a goal in itself but

helps identifying areas requiring furtheranalysis and improvements.

Extensive and systematic comparison

using more than one variable.

Trend implementing a benchmarkingapproach.


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Pharos Benchmarking

Objectives Obtaining information about absolute and relative change

of major business indicators for the current datecompared to some reference date in the past.

Presenting this information in easy way for analysis suchas radar graph and time series graphs.

Providing trend identification and analysis tools by usingsimple variable averaging method.

Allowing flexibility in defining any desirable averagingperiod within interval of 1-12 months.

Using actual data available in Pharos and Produce Plusenterprise databases for obtaining objective results.


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Objectives

Minimizing possibilities for subjective judgmentsby individuals due to diversity of qualificationsmethods and errors.

Avoiding questionnaires, sensitive proprietary

information,its processing, human errors,incompetence as well as delays in getting results.

Obtaining benchmarking results easy, simple andquickly at any moment of time.

Supporting presenting only relative change figuresin percent in business reports avoiding revealingsensitive key performance indicators

Facilitating public discussions of performancemanagement issues and knowledge distribution.


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7 Indicators

Net Profit (Pre Tax)

Expenses Overall

Sales Revenue Overall Added Value

Overall Added Value per Employee

Labor Ratio (Produce Plus) OEE (Overall Equipment Efficiency, ProdPlus)


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Formats

Radar Chart

Time series

Period

Averaged

Brief Summary Report

Detailed Summary Report


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Reference Benchmarking:Added Value per Employee


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Reference Benchmarking:

Expenses


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KPI Change: Absolute & Relative


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Pharos Benchmarking:

Definition of parameters


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Conclusions Pharos Benchmarking is simple and effective tool The source data is real enterprise database not

questionnaires or third party interviews It presents both absolute and relative values of change Available for entrepreneur in continuous improvement

process by mouse click at any time Relative improvement reports can be easily presented to

prospective investors, banks or important customers The report is be additional validation to business proposal Benchmarking helps evaluating business development

scenarios, decision consequences, innovations, strategies Excellent educational and business gaming tool The benchmarking reports can be used for support of

policy making for clusters, regions, countries Can be used for multiple enterprises (XML reports) Can be further extended with benchmarking indexes

Documents

Benchmarking Brief