www.mpc.gov.my
Toll Free: 1-800-88-1140
MALAYSIA PRODUCTIVITY CORPORATION
Guidebook to e-Benchmark
Contents :
Part 1 : Benchmarking Tool for Raising Productivity
(a) Why we need benchmarking?
2
(b) What is benchmarking?
3
(c) What is best practices?
4
(d) What is a benchmark?
5
(e) What are Key Performance Indicators (KPIs)?
6
(f) What is a Community of Practices (CoP)?
9
(g) What is Code of Conduct for Benchmarking?
10
(h) What is e-Benchmark?
11
(i) What are the processes involved in e-Benchmark?
12
(i) What are the type of e-Benchmark users?
13
Part 2 : Step-by-Step in e-Benchmark
(i) Step-by-step e-Benchmark Guide for Manager of CoP
14
(a) How to access into e-Benchmark?
15
(b) How to create Indicator Group?
16
(c) How to create Indicator?
17
(d) How to create Organisation Profile (CoP member account)?
19
(e) How to create Login ID and Password?
21
(f) How to view Scores result?
22
(g) How to view Ranking result?
23
(h) How to view Overall result?
24
(ii) Step-by-step e-Benchmark Guide for CoP Members
25
(a) How to access into e-Benchmark?
26
(b) How to key-in data?
27
(c) How to view Scores result?
28
(d) How to view Ranking result?
29
(e) How to view Overall result?
30
(f) How to change the password?
31
1
Part
Benchmarking Tool for Raising Productivity
(a) Why we need benchmarking?
Improving the performance of public and private sectors in Malaysia through the use of
benchmarking tool and sharing of best practices are essential to raise the
competitiveness of the country. Benchmarking tool and best practices sharing are
the proactive process and structured approaches to improve operations towards
achieving superior performance. Through benchmarking, companies can add value to
their products and services to enhance their competitiveness based on cost, quality,
speed and
service, thus meeting customers’ needs. Among the impetus for
companies to embark on benchmarking are :
Figure 1 : Benefits of Benchmarking
2
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Part
Benchmarking Tool for Raising Productivity
(b) What is benchmarking?
The purpose of benchmarking is to improve own performance by learning how others
perform better . But it does not mean that benchmarking is simply copying what works
for others nor adopting similar systems or processes in a follow-the-leader attitude.
This is because the mere adoption of techniques and best practices would not make
that particular organisation most efficient, instead it just becomes “only as good as” the
other organisations. The real challenge and opportunity, therefore, is to leverage the
knowledge gained from benchmarking processes into competitive advantage for the
organisations.
Figure 2 : Definition of Benchmarking
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Part
Benchmarking Tool for Raising Productivity
(c) What is best practices?
Best practice is a relative term indicating outstanding business practices which have
been identified as contributing to improved performance significantly in leading
companies. It involves in keeping up to date with the ways that successful businesses
operate. Through benchmarking, companies are able to learn best practices from
excellent organisation. Then, they have to incorporate what they have learned to
change their performances for the better. To change, companies must be willing to
adapt, share information with others, be open to ideas from the "outside", and focus
"how to change."
Figure 3 : Overview of Best Practices
4
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Part
Benchmarking Tool for Raising Productivity
(d) What is a benchmark?
Benchmark can be defined as a measured “best-in-class” achievement, recognised as
the standard of excellence for a particular process. Measurement is critical to help
organisations measure and monitor how big the gap is between their own performance
and that of the best-in-class organisation's benchmark. By looking outward for
improvement, organisations will gain better understanding of their relative position in
the industry.
Figure 4 : Example of Benchmarks
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Part
Benchmarking Tool for Raising Productivity
(e) What are Key Performance Indicators (KPIs)?
Key Performance Indicators (KPIs) provide a series of measures against which internal
managers and external investors can judge the business and how it is likely to perform
over the medium and long term. The importance of KPIs is that they help a company to
assess how it is operating in terms of the targets that it has set itself, and they can act
to incentivise superior performance. In other words, KPIs help companies to
understand how well they are performing in relation to their strategic goals and
objectives. In the broadest sense, a KPI can be defined as providing the most
important performance information that enables companies or their stakeholders to
understand whether the company is on track or not.
The
most
popular
approach
used
in
developing
KPIs
is
the
Balanced
Scorecard (BSC). This approach was developed by Kaplan and Norton to help
organisations succeed by embedding a strategy of balanced focus and performance
monitoring into the heart of organisational culture.
Figure 5 : Perspectives in Balanced Scorecard
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1
Part
Benchmarking Tool for Raising Productivity
Examples of Indicators for each four perspectives in Balanced Scorecard.
Financial Perspective :
KPIs
Definition
Formula
Net Profit Margin
(%)
This indicates the amount of net
profit per RM1 of turnover a
business has earned.
(Profit Before Tax /Total
Turnover) X 100
Return on Capital
Employed (%)
This indicates the return being
generated on the total capital
invested in a business.
(Profit Before Tax / (Longterm Loans + other Longterm liabilities + Shareholder’
Funds)) X 100
Staff Costs as a
Percentage of
Sales (%)
This indicates the amount that is
spent on salaries as a proportion to
turnover.
(Staff Costs/Total Turnover)
X 100
Creditor Days
This indicates how many days on
average it takes a business to pay
its bills.
(Trade Creditors/Cost of
Bought-in Materials and
Services) X 365
Sales Growth (%)
It measures the ability of the client
to boost sales in the future.
((Total Turnover - Total
Turnover prev year)/Total
Turnover prev year) X 100
Customer Perspective :
KPIs
Definition
Formula
Customer Growth
(%)
This indicates how the business is
expanding, it terms of its customer
base.
(Number of New
Customers / number of
Customers) X 100
Complaints per
Customer (#)
This indicates the average number
of complaints per customer,
independent of the number of
orders.
Number of recorded
Customer Complaints
Received/Number of
Customers
Percentage of
Orders Rejected
During Warranty
Period (%)
This indicates the percentage of
orders that have failed during the
warranty period.
(Number of Orders Rejected
by the Customer during the
specified Warranty period /
number of Orders Received)
X 100
Delivery Schedule This indicates how well a business
Deviation (%)
is meeting its commitment for
delivery promises.
(Number of Customer
Orders which were not
delivered when promised /
Number of Orders Received)
X 100
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Part
Benchmarking Tool for Raising Productivity
Learning & Growth (People) Perspective :
KPIs
Training
Expenditure to
Turnover (%)
Definition
This indicates the business‘s
investment in its employees.
Formula
(Training Expenditure/Total
Turnover) X 100
Accidents per FTE It demonstrates the level of
Employee
commitment to safety that the
business displays and the
importance that is attached to
providing a safe working
environment.
(Number of Accidents or
Incidents / Number of FTE
Employees)
Absenteeism per
FTE Employee
This indicates the amount of time
that people spend away from work
due to sickness, unexplained
absence etc.
Absenteeism (Number of
Days per Year) / Number of
FTE Employees
Total Leavers per
FTE Employee
(%)
This indicates staff turnover. It can
give an idea as to how happy staff
are with their workplace.
(Number of FTE Employees
who leave the organisation /
Number of FTE Employees)
X 100
Process Perspective :
KPIs
Definition
Formula
Time Spent on
Rework or
Reprocessing per
FTE Employee
(Hours per Annum)
This indicates the annual
percentage average of production
capacity used for rework or
reprocessing.
Time spent on Rework or
Reprocessing / Number of
FTE Employees
Product Lead Time
per Order (Days)
This indicates the business’s
efficiency in the ability to deliver its
orders.
Total Product Lead Time
(Days) / Numbers of
Orders
Percentage of
Supplies Delivered
on Time (%)
This indicates the ability of the
business’s suppliers to deliver on
time as a percentage of total
purchases.
(Supplies Delivered on
Time / Cost of Bought-in
Materials and Services) X
100
Stock Turnover (#)
This indicates the number of times
stocks are turned over during a
year.
Cost of Bought-in Materials
and Services / Stock
8
1
Part
Benchmarking Tool for Raising Productivity
(f) What is a Community of Practices (CoP)?
One of the platforms to implement external benchmarking is though Community of
Practices (CoP). CoP is a group of organisations/companies within similar or dissimilar
industries who share some common areas of interest that :
 Undertake continuous data collection and analysis
 Establish performance measurements and benchmarks, and
 Conduct regular sharing of best practices for performance improvement.
Members of a CoP are grouped together on a voluntary basis to initiate some form of
benchmarking activities, where MPC serves as the facilitator.
Figure 6 : Benefits of Being A CoP Member
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Part
Benchmarking Tool for Raising Productivity
(g) What is Code of Conduct for Benchmarking?
Most organisations follow a set of ethical and legal guidelines for benchmarking
exchange known as the Benchmarking Code of Conduct. These guidelines establish
the ground rules to follow when asking for, exchanging, or providing information.
The following guidelines are adapted from the American Productivity and Quality
Center (APQC).
Figure 7 : Benchmarking Code of Conduct
10
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Part
Benchmarking Tool for Raising Productivity
(h) What is e-Benchmark?
e-Benchmark is a web-based tool which enables benchmarking community to have a
win-win situation in communicating their scores and identifying benchmarks. This
system is another MPC initiative to promote organisational excellence through
performance measures and best practices.
Figure 8 : Benefits of e-Benchmark
11
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Part
Benchmarking Tool for Raising Productivity
(i) What are the processes involved in e-Benchmark?
The system allows CoP members to key-in data, compute indicators, rank performance
and benchmark comparison, all within a submission of data via the internet. This real
time e-benchmark system had encouraged many industries to measure performance
and benchmark comparison in Malaysia as well as in other countries. There are six
initial steps involve when CoP members utilise the system :

Step 1 : CoP agreed on benchmarking measures and set up e-benchmark
framework.

Step 2 : Manager issues Login ID and Password to each member.

Step 3 : Members enter own data through Internet.

Step 4 : Data is transmitted to e-Benchmark hub for real-time data processing.

Step 5 : Real-time benchmark reports (competitive scores) are generated.

Step 6 : Provide useful inputs for decision making and strategic planning.
Figure 9 : Processes involve in e-Benchmark
12
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Part
Benchmarking Tool for Raising Productivity
(j) What are the type of e-Benchmark users?
There are three types of e-Benchmark users, namely super admin (who manages the
system), manager (MPC officers of respective CoP or autorised person from
organisations that embark on internal benchmarking project) and CoP members
(designated / autorised persons from organisations of participating communities that
are involved in external benchmarking).
Figure 8 : Scope and responsibilities of e-Benchmark users
13
2
Step-by-step in e-Benchmark
Part
Step-by-step e-Benchmark
Guide for Manager of CoP
Key :
A
B
C
D
:
:
:
:
Indicator Admin Button
Indicator Group Button
Organisation Admin Button
Score Button
E
F
G
H
:
:
:
:
Ranking Report Button
Organisation Report Button
Overall Report Button
Edit Profile Button
2
Part
Step-by-step in e-Benchmark
(a) How to access into e-Benchmark?
Steps :
Go to MPC website http://www.mpc.gov.my
Select ‘Our Services’ main menu and click
Benchmarking Online Networking Database
(BOND).
Click on e-Benchmark link.
Click on Home and e-Benchmark menu at
the top of right side.
Type your “id” in the Login ID box, and your
“password” in the Password box.
Click the “Sign-In” button or press “Enter”.
HOT TIP
As a manager, your password will be issued by Super Admin.
15
2
Step-by-step in e-Benchmark
Part
(b) How to create Indicator Group?
Steps :
Click on Indicator Group button in the Menu
Bar.
Type the name of your Indicator Group in the
space provided.
Please rank according to the group order.
Select Save.
DEFINITION


Indicator Group Name is the sub-heading title for a group of indicators.
Group Order is the sequence of the Indicator Groups in the list.
16
2
Part
Step-by-step in e-Benchmark
(c) How to create Indicator?
Steps :
Click on Indicator Admin button in the menu
Bar.
Click on “Add New Indicator” button to add
indicator.
Fill in the necessary fields according to the
required information (refer to page 19 for
detail explanation on each field).
Select Save.
Repeat the same steps for the next
subsequent indicators.
HOT TIP
If you need to create an indicator involving a formula, each indicator used must be
enclosed with square brackets [ ].
17
2
Part
Step-by-step in e-Benchmark
Table 1 : Information required to create an indicator in the Indicator Admin page.
Field Name
Detail
Question Text
Type the indicator (beginning with Indicator 1).
Description
Type the definition for the indicator (Describe).
Result Abbreviation
Give an abbreviation for the indicator.
Result Unit Type
Unit of measure (e.g. Quantity, hour, etc.)
Order
Give a number to arrange the sequence of the indicators.
It is highly recommended to use block allocation (e.g. 10,
20, 30 ….). This will allow you to slot in other indicators in
between existing indicators later if necessary (e.g. 12,
22 ..).
Choose type of data either in decimal or without decimal.
Data Type
No. of Decimal Point
This option will be appeared If the data is in decimal, then
select the number of decimal point (e.g. 1,2…5).
Show Indicator
If the indicator is meant for comparison, choose YES. It
will appear in all e-Benchmark reports. If the data is a raw
data and it is not purposely for comparison, then choose
NO. It is designed especially to hide raw data involved in
calculating indicators.
Ranking Option
If benchmark value of indicator is the highest value, tick
the Best = Highest button. The Hide Highest Value box is
an option for the system to select the second highest value as the benchmark value. Same goes to if
benchmark value is the lowest value, tick the
Best = Lowest button.
Indicator Group
Choose appropriate Indicator Group to create a systematic
Indicator Form. The Indicator Group Drop-Down menu is
based on input keyed-in previously.
Indicator Type
If indicator type is normal, select ordinary at the Indicator
Type. If the indicator type is a formula, select auto
calculated. Type the formula in the formula box based on
abbreviation given for the indicator. Indicators must be
enclosed with square brackets [ ]For example : [HTTC]/
[HTNHC].
Existing Parameters
As the Manager creates new indicators, they will be
displayed on the right hand side of the screen to help you
with abbreviations (must be unique) and sequencing
(ordering).
18
2
Part
Step-by-step in e-Benchmark
(d) How to create Organisation Profile (CoP member account)?
Steps :
Click on Organisation Admin button in the
Menu Bar.
Click on “Add New Organisation” button to
add organisation.
Fill in the necessary fields according to the
required information (refer to page 21 for
detail explanation on each field).
Select Save.
Repeat the same steps for the next
subsequent organisation.
HOT TIP
It is possible to compare data internationally, as e-Benchmark provides feature that
can segregate the results based on the country selected. Super Admin will create any
country/s upon request by CoP manager.
19
2
Step-by-step in e-Benchmark
Part
Table 2 : Information required to create an organisation in the Organisation Admin
page.
Field Name
Detail
Associated Country
This feature allows CoP to benchmark internationally.
By default, Malaysia will be the only country to appear in
the drop-box. Super Admin will create other country upon
request by CoP manager.
Organisation Code
Each organisation must be coded for confidentiality
purpose.
Organisation Name and
Address
Tel
Fax
Nature of Business
No. of Employees
Contact Person
Fill-in the necessary fields according to the
required information for future references.
Designation
Email
Homepage
Country
Clusters
Tick any type of cluster that suits to the organisation.
Super Admin will create any relevant clusters upon
request by CoP manager.
Indicators
By default, all indicators created in Indicator Admin page
are listed and ticked by the system.
Choose appropriate indicators for benchmarking purpose.
Should there be any new indicators added in later, you
need to go back to all those organisations created earlier
to manually tick the appropriate new boxes for the New
Indicators.
HOT TIP
For the purpose of confidentiality, each organisation must be ‘coded’, otherwise CoP
members will be able to recognise the best organisations in all e-Benchmark report.
20
2
Part
Step-by-step in e-Benchmark
(e) How to create Login ID and Password?
Steps :
Click on Organisation listed in Organisation
Admin Page.
Click on “Add New User” button at the
bottom of the page.
Key-in Login ID, Password, Name and Email
for the CoP member of this organisation.
Select Save.
Click on Save button for the second time in
the next page.
Repeat the same steps for the next
subsequent organisations.
21
2
Part
Step-by-step in e-Benchmark
(f) How to view Scores result?
Steps :
Click on Scores button in the Menu Bar.
Select any organisation to view Scores
result.
Choose respective period or year by clicking
Select Period drop-down button.
Scores result is based on the performance of
selected organisation against the
minimum, median and maximum value of
that community.
Click on show at Trend Column of each
indicator to view the trend.
Click on show at Graph Column of each
indicator to view performance and ranking.
22
2
Part
Step-by-step in e-Benchmark
(g) How to view Ranking result?
Steps :
Click on Ranking button in the Menu Bar.
Select any organisation to view Ranking
result.
Choose respective period or year by clicking
Select Period drop-down button.
Ranking result reveals the ranking position
of the selected organisation against the
benchmark value of that community.
HOT TIP
Manager of CoP is able to view each data and benchmarking results of all CoP
members, thus allowing them to identify which organisation is the best among the CoP
members.
23
2
Step-by-step in e-Benchmark
Part
(h) How to view Overall result?
Steps :
Click on Overall button in the Menu Bar.
Choose respective period or year by clicking
Select Period drop-down button.
The result is generated based on
benchmark, average, minimum, median,
maximum, lower and upper quartile values of
each indicator.
HOT TIP
In a nutshell, each CoP Manager must follow the sequences below for managing
e-Benchmark account.
No.
1
2.
3.
Task
Indicator Admin
Organisation Admin
User Admin
Description
Indicators have to be created before anything else.
This step will generate the survey questionnaires
Create the organisations and profiles
Create Users’ Login ID and password
24
2
Step-by-step in e-Benchmark
Part
Step-by-step e-Benchmark
Guide for CoP members
Key :
A
B
C
D
:
:
:
:
Data Entry Button
Indicator Admin Button
Indicator Group Button
Organisation Admin Button
E
F
G
H
:
:
:
:
Scores Button
Ranking Report Button
Overall Report Button
Edit Profile Button
2
Part
Step-by-step in e-Benchmark
(a) How to access into e-Benchmark?
Steps :
Go to MPC website http://www.mpc.gov.my
Select ‘Our Services’ main menu and click
Benchmarking Online Networking Database
(BOND).
Click on e-Benchmark link.
Click on Home and e-Benchmark menu at
the top of right side.
Type your “id” in the Login ID box, and your
“password” in the Password box.
Click the “Sign-In” button or press “Enter”.
HOT TIP
As a CoP Member, your password will be issued by your CoP Manager.
26
2
Part
Step-by-step in e-Benchmark
(b) How to key-in data?
Steps :
By default, the window pop-up will be the
Indicator Form.
Click on Select Period drop-down
button to choose designated period
or year for data entry.
User can then enter the data on the
Indicators Form.
Click on the Save button to save the data
entered.
“Your record has been saved” will be
appeared as an indication that the data is
successfully stored in the e-Benchmark hub.
HOT TIP
Select Period drop-down button is most important step as user tends to key-in data in
a wrong period of data collection.
27
2
Part
Step-by-step in e-Benchmark
(c) How to view Scores result?
Steps :
Click on Scores button in the Menu Bar.
Choose respective period or year by clicking
Select Period drop-down button.
CoP member can view his own
organisation’s performance and that of the
community’s in terms of minimum, median
and maximum value.
Click on show at Trend Column of each
indicator to view the trend.
Click on show at Graph Column of each
indicator to view performance and ranking.
HOT TIP
e-Benchmark is able to segregate data and generate benchmarking results based on
types of cluster. Thus, this will lead to more meaningful comparison among the
members. Super Admin is responsible to create clusters in e-Benchmark upon request
by CoP Manager.
28
2
Part
Step-by-step in e-Benchmark
(d) How to view Ranking result?
Steps :
Click on Ranking button in the Menu Bar.
Choose respective period or year by clicking
Select Period drop-down button.
The result generated allows CoP member to
compare his own performance against the
best-in-class performance of the CoP.
“Your Ranking” column indicates the position
of the respective CoP member for each
indicator.
HOT TIP
For future references, e-Benchmark allows CoP members to update information in
Organisation Admin page. However, CoP members can only view information stored
in Indicator Admin and Indicator Group pages.
29
2
Step-by-step in e-Benchmark
Part
(e) How to view Overall result?
Steps :
Click on Overall button in the Menu Bar.
Choose respective period or year by clicking
Select Period drop-down button.
The result generated shows community’s
performance in terms of Benchmark value,
Average, Minimum, Median, Maximum, Lower and Upper Quartile values for the year data has been entered.
DEFINITION


Lower Quartiles value refers to
Upper Quartiles value refers to
30
2
Part
Step-by-step in e-Benchmark
(f) How to change the password?
Steps :
Click on Edit Profile button in the Menu Bar.
CoP member may change the password at
this page.
Select Save.
“Your profile has been updated” will be
appeared as an indication that CoP member
can start using new password.
HOT TIP
CoP members may contact your CoP Manager if there is a difficulty in accessing
e-Benchmark upon changing the password.
31