Performance
Benchmarking
By
Douglass Keller
Introduction
• What is performance
benchmarking?
• Why use benchmarking?
• Who benefits?
• How does the process work?
• Significant results of an
example.
Usefulness of
Benchmarking
• Pareto rule
• PDCA
• Increase profit
• Greater customer satisfaction
What Is It?
• Benchmarking
• Initiator
• Target
• Performance
Performance Categories
• Productivity
• Research and development
• Marketing
• Quality
• Cost analysis
Why?
• Competitive advantage
• Increased market share
• Lower costs
• Increase sales
Who Benefits?
• Initiator
• Target
• Industries
• Consumers
How Does It Work?
1.
2.
3.
Determine
weaknesses
Establish a
benchmark team
Brainstorm
potential partners
4a. Gather and study
information
4b. Use third party
consultant
5. Apply benchmark
results
Determine Weakness
• Comparisons
• Shortcomings
• Goals
Form a Team
• Find experts
• Involve related departments
• Set objectives
Set Targets
• Brainstorm
• Research
• Contact
• Learn
• Reciprocate
Analyze Benchmarked
Information
• Gather
• Analyze
• Plan
Third Party Consultants
• Integrity
• Benefits
• Risks
Take Action
• Re - address the plan
• Test the plan
• Study the results
• Act
Dell Computers
• JIT
• Online ordering
• Mass customization
Dell Computers
• Excellence in turns
• Advantages
• Disadvantages
Dell Computers
• Ordering online
• Advantages
• Disadvantages
Dell Computers
• Mass customization
• Advantages
• Disadvantages
Exercise
Research Dell Computers’
inventory information and
compare those results with the
results from Compaq Computers’
inventory statistics. Which
company is the leader and
which has something to learn
from their superior?
Summary
•
•
•
•
•
•
Initiator
Target
Industry
Customer
Necessary
Beneficial
Bibliography
• Internet, Dell Computers, Benchmarking, and
Consultants
• Managing Quality, S. Thomas Foster 2001. Pages
152 – 167.
• Value Line October 2001.
• Operations Management, Chase, Aquilano,
Jacobs 2001 Pages 5, 100, and 272.
• Operations Management, Heizer, Render 2001.
Pages 176 – 177.