The IBFA/IBSA Scheme for International Company Benchmarkingâ€œ

© Export-Akademie Baden-Württemberg

Institute for Simulation and BenchmarkingDirector: Prof. Dr. Rolf Pfeiffer

„The IBFA/IBSA Scheme forInternational CompanyBenchmarking“

Steinbeis-Europa-Zentrum,Friday, 7th June 2002

IBFA/IBSA Company Benchmarking



Export-AkademieBaden-Württemberg

POSTGRADUATE STUDIES

International Marketingfor graduates

• full-time, part-time(IM)

• distance study withblock courses (FIM)

FURTHER TRAINING

Further education programmes formanagers and junior managers fromGermany and other countries

• Supplementary studies inBusiness Administration (OBS)

• Distance learning course in International Marketing (ZIM)• Seminars for the export

industry (SEFEX)• International

Management Institut (IMI)




You can also find us on theINTERNETINTERNETOur address:

http://Export-Akademie.FH-Reutlingen.de



Content1. Benchmarking2. International Best Factory Awards (IBFA) and International Best Service Awards (IBSA)3. Effect of applying results of participation in IBFA/IBSA in the enterprise





The Learning Company is characterisedby 7 points:

1. System-thinking2. Preparation of the long-term planning in the Team3. Common development of the company culture




Continued: The Learning Company

4. Professional teamwork5. Constant learning6. Learning from the customer, competitor, supplier and friendly companies7. The people in the independent company




Definition of Benchmarking:

„...the continuous search for solutions, which a focus on the best methods and procedures of the industry, the best practises, and lead the company to top performance.“

R.C.Camp, 1994, S.13




Continued: Definition Benchmarking

„Best method and procedure of the industry“„Continuous“„Lead to top performance“„Search for solutions“



The Idea of BenchmarkingThe Idea of Benchmarking

Benchmarking is NOT a simple comparison of ones owncompany values from the balance sheet (profit and losscalculation, cost calculation) with those of competitors or withany consultant's ideal values – especially not if this is done onlyonce.

Important:� Comparison of all process values from the whole industry.� Continuous comparison of values.� Seeking solutions to become the best.

Objective: The Learning Company.





Steps in the benchmarking-process1. Establish what we should be looking for in the benchmarking

process2. Find comparable companies3. Determine the method of data collection4. Check for any deficiencies in performance5. Project future performance6. Communicate results and gain acceptance7. Fix the objectives in the processes8. Plans activities9. Initiate activities and monitor development10.Motivate all who are involved.

International Best Factory Awards(IBFA) 2001

International Best Service Awards(IBSA) 2001



IBFA/IBSA Company Benchmarking :International Best Factory Awards (IBFA) 2001International Best Service Awards (IBSA) 2001

Metall/Kunststoff/Zulieferer45%

Maschinen-/Fahrzeugbau/Elektrotechnik/Elektronik34%

Dienstleistung21%



IBFA/IBSA Company Benchmarking :International Best Factory Awards (IBFA) 2001

The processes are quantified in 234 Single Criteria:

Plant Profile

Structure of Costs

Stock Profil

Employee Profile

Product Innovation

Management Information

Planned Changes/investments in the Production

General Characteristics of the Plant

Main Criteria Single criteria

• Cost per squaremeter area• Output supplied off the shelf • Active used data

• ....




V a lu e Ad d e d p er P ro d u ctio n E m p lo yee

0

200

400

600

800

100 0

0 .0 0 .1 0 .2 0 .3 0 .4 0 .5 0 .6 0 .7 0 .8 0 .9 1 .0

P erfo rm ance Ind e x

Valu

e Ad

ded

per P

rodu

ktio

n

A ll R esponda n ts in S ec torC o m pan y P os ition in M a tr ixP e rfo rm an ce In dex M e d ia n L in ie (H o rizon ta l)W ertsch öp fun g M ed ian L in ie (V e rtika l)




Table: 2 Planned procurement lead time for the main bought out item / material

Units: Days Responses: 57 Non-responses: 1

Decile LeadTime Lead Time by Plant Percentile

Longer1 78 0.00 7840%

2 58 0.00 5760%

3 41 0.00 4120%

4 30 0.00 3000%

5 21 0.00 2100%

6 20 0.00 2000%

7 14 0.00 1440%

8 6 6.20 620%

9 5 0.00 500%

10 0 0.00 10%

ShorterCase Data: 10 Mean Average: 35 Median Average: 21

78

58

41

3021 20

146 5

00

10

20

30

40

50

60

70

80

1 2 3 4 5 6 7 8 9 10

Lead

Tim

e (D

ays)




Table: 13Change of the stock value within the past 2 years

Units: Quantity Responses: 57 Non-responses: 1

StockChange

No of Plants Number of Plants by Stock Change

Worse>+50% 2 0.00 200%

+25%zu+50% 10 0.00 1000%

+10%zu+24% 15 15.00 1500%

+01%zu+09% 9 0.00 900%

Constant 6 0.00 600%

-01%zu-09% 7 0.00 700%

-10%zu-24% 5 0.00 500%

-25%zu-50% 2 0.00 200%

>-50% 1 0.00 100%

0.00

BetterCase Data: +10%zu+24% Category Analysis

2

10

15

9

67

5

21

02468

10121416

>+50% +25%zu+50%

+10%zu+24%

+01%zu+09%

Const. -01%zu-09%

-10%zu-24%

-25%zu-50%

>-50%

Num

ber o

f Pla

nts




Recommendations:In Comparison with the TOP 25% do you have:

• A longer time procure for the most important parts. Find a possibility to accelerate the procurement• A high increase of the stock. Analyse the reasons and try to reduce the stock



IBFA/IBSA Company Benchmarking :International Best Factory Awards (IBFA) 2001UK and Germany

Table: 15 Employees: average rate of absenteeism

Units: Percentage Responses: 69 Non-Responses: 0

Decile AbsenteeismRate Absenteeism Rate by Plant Percentile

Worse1st 6.8% 0.07 0.00

2nd 5.8% 0.06 0.00

3rd 5.0% 0.05 0.00

4th 4.7% 0.05 0.00

5th 4.0% 0.04 0.00

6th 3.5% 0.03 0.00

7th 3.0% 0.03 0.00

8th 2.5% 0.02 0.00

9th 2.0% 0.02 0.00

10th 0.0% 0.00 0.00

BetterMean Average: 4.3% Median Average: 4.0%

6.8%

5.8%5.0% 4.7%

4.0%3.5%

3.0%2.5%

2.0%

0.0%0%

1%

2%

3%

4%

5%

6%

7%

8%

1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th

Abse

ntee

ism

Rat

e (%

)



IBFA/IBSA Company Benchmarking :International Best Factory Awards 2001UK and Germany

RecommendationTable 15:The percentage of sick leave taken by the employeesthroughout the year should remain as low as possible.Possible measures for reducing illness/injury:- Analysis of causes of accidents and additional training forthe employees- Steps in the production process showing a highaccident/injury rate can be machine automated- Motivation through visualisation of performance- Transfer of responsibility to the employees (for example,through group projects)




Benefit for the Company:1. Clear definition of the objective and the course for the benchmarking-process2. The questionnaire provides a number of indicators

to control the real processes3. Own strength and weakness in comparison to the participants4. Realistic estimate of own position




Continued: Benefit...

5. Ideas to improve the processes6. Start with activities with own project-teams, the EA, consultants,...7. To get a benchmarking-partner direct or with the benchmarking-bourse8. How do other companies ensure future

improvement9. PR and advertising, motivation of the employees




Choose the winner (IBFA und IBSA)Four steps:1. Frequency on the places 1 to 5 over 53 resp. 23 important processes2. Very good position in the productivity-performance- matrix (turnover per head-performance-matrix)3. Visits of the audit-teams to the 3 bests per category4. Choose the Winner in every category and the total winner esp. with qualitative criteria by the audit- teams



IBFA/IBSA Company Benchmarking :International Best Service Award (IBSA) 2000The presentation of the award: Dr. Walter Döring



International Best Factory AwardsInternational Best Service AwardsWinners 2001



IBFA/IBSA Company Benchmarking :IBFA General Comparison D / UK / IAverage and Top 25%: 1998

Performance MeaasureLeistungsdaten

Number of stock turnsLagerumschlagshäufigkeit

AbsenteesimFehlzeit

Trainings (new starters)Weiterbildungstage

TrainingsWeiterbildungstage

Delivery performanceLiefergenauigkeit

UnitsEinheit

#

%

DaysTage

DaysTage

MonthMonate

D

7,0(13,9)

5,0(2,3)

12,4(30,0)

4,6(10,1)

89,8(99,0)

UK

9,7(10,8)

3,3(2,1)

13,6(21,7)

4,7(5)

86,3(97,5)

I

8,3(9,4)

4,7(2,5)

18,9(20,0)

4,0(5,0)

84,9(96,0)



Performance MeasureLeistungsdaten

Problem solving teamsProblemlösungsgruppen

First time pass...Fehlerquote nach...

Innovation rate(last 3 Years)

Time to marketProduktinnovationszeit

UnitsEinheit

%

%

%

MonthMonate

D

34,5(78,8)

97,2(99,8)

5,7(17,1)

15,5(4,7)

IBFA/IBSA Company Benchmarking :IBFA General Comparison D / UK / I (2)Average and Top 25% :1998

UK

40,1(70)

92,8(98,4)

1,7(8,3)

15(7,5)

I

---

94,5(99,4)

1,0(2,0)

13,0(12,0)

Documents

The IBFA/IBSA Scheme for International Company Benchmarkingâ€œ