EMGT 364
John Checco
Joe Dashiell
EMGT 364
28 Feb 01
BENCHMARKING
EMGT 364
AGENDA
• References
• Benchmarking Defined
• Concept of Benchmarking
• Application in Product Development
• Legal Aspects
• Conclusion
BENCHMARKING
EMGT 364
Application in Product Development
References
(1 of 4)
Product Design and Development
Karl T. Ulrich
Steven D. Eppinger
BENCHMARKING
EMGT 364
Application in Product Development
References
(2 of 4)
• The Product Development Benchmarking
Association
www.pdba.com
• Competitive Benchmarking Associates
www.competitiveanalysis.com
• The Benchmark Exchange
www.benchnet.com
BENCHMARKING
EMGT 364
Application in Product Development
References
(3 of 4)
• Quirk’s Marketing Research Review
“Measuring Competitiveness”
By Michael Branham, Oct 1997
• Marketing Tools Magazine
“Measuring What Matters”
By Michael Branham, Apr 1997
BENCHMARKING
EMGT 364
Application in Product Development
References
(4 of 4)
• Re-Engineering at Work Michael Loh
• Business Process Improvement Toolbox
Bjorn Anderson
• Global Cases in Benchmarking Robert
Camp
BENCHMARKING
EMGT 364
Benchmarking Defined
• Judging and modifying one’s business
product, service, or process based on
standards developed from performance
measures of other selected businesses.
• Benchmarking Versus Indexing
• Same Industry Versus Different Industry
BENCHMARKING
EMGT 364
Concept of Benchmarking
Core Components
• Measurement - Self and Partners
• Comparison -
Performance, Process, Pracitces
• Learning -
Introduce Ideas
• Improvement - Objective
BENCHMARKING
EMGT 364
Concept of Benchmarking
Types of Comparisons
WHO?
• Internal • Competitive • Functional • Generic -
Same Orgainization
Competitor or Parallel Class
Related Tasks / Technologies
Best in Any Class
WHAT?
• Performance - Key Figures
• Process How Performed
• Strategic Higher Level
BENCHMARKING
EMGT 364
Concept of Benchmarking
BENCHMARKING
Generic
Functional
Competitor
Internal
Benchmarking Value
Performance
M H M L
Process
M L H H
Strategic
L H L L
EMGT 364
Concept of Benchmarking
Conducting a Study
• Plan:
Select Focus, Study Self
• Search:
Find Benchmark Partners
• Observe:
Document Partner
• Analyze:
Identify Gaps and Causes
• Adapt:
Implement Change
BENCHMARKING
EMGT 364
Application in Product Development
• Generic Development Process
• Concept Development
• Case Study
• Data Sources
BENCHMARKING
EMGT 364
Application in Product Development
Generic Development Process
• Planning
• Concept Development
• System Level Design
• Detail Design
• Testing and Refinement
• Production Ramp-Up
BENCHMARKING
EMGT 364
Application in Product Development
Concept Development
Mission
Statement
Identify
Customer
Needs
Establish
Target
Specs
Apply
Benchmarking
Generate
Product
Concepts
Select
Product
Concept
Apply
Benchmarking
BENCHMARKING
Refine
Specs
Plan
Remaining Development
Plan
Project
EMGT 364
Application in Product Development
Case Study
(1 of 7)
• Specialized Bicycle Components
• Establish Target Specifications
– Develop List of Metrics
– Collect Competitive Benchmark Data
– Develop Competitive Benchmarking Charts
BENCHMARKING
EMGT 364
Application in Product Development
Case Study
(2 of 7)
Competitive Benchmarking Chart Based on Metrics
Metric
No. Need
1
1,3
2
2,6
3
4
5
Metric
Attenuation from
dropout to
Spring Preload
Maximum value
1,3 from the Monster
Minimum descent
1,3 time on test track
Damping coefficient
4 adjustment range
BENCHMARKING
Rox Rox
Gunhill
ST Maniray Tahx Tahx Tonka Head
Imp. Units Tritrack
2
Quadra TI 21 Pro Shox
3
dB
8
15
10
15
9
13
3
N
550
760
500
710
480
680
5
g
3.6
3.2
3.7
3.3
3.7
3.4
5
s
13
11.3
12.6 11.2 13.2
11
0
0
3 N-s/m
0
200
0
0
EMGT 364
Application in Product Development
Case Study
(3 of 7)
Competitive Benchmarking Chart Based on Needs
No.
1
2
3
4
5
Need
Reduces vibration
to the hands
Allows easy
traversal
Enables high-speed
descents
Allows sensitivity
adjustment
Preserves steering
characteristics
BENCHMARKING
Rox Rox
Gunhill
ST Maniray Tahx Tahx Tonka Head
Imp. Tritrack
2
Quadra TI 21 Pro Shox
3
*
****
**
*****
**
***
2
**
****
***
*****
***
*****
5
*
*****
**
*****
**
***
3
*
****
**
*****
**
***
4
****
**
*
**
******
*
EMGT 364
Application in Product Development
Case Study
(4 of 7)
• Set Ideal and Marginally Acceptable Target Values
• Develop Solution Concept
Metric
No. Need
1
1,3
2
2,6
3
4
5
BENCHMARKING
Metric
Attenuation from
dropout to
Spring Preload
Maximum value
1,3 from the Monster
Minimum descent
1,3 time on test track
Damping coefficient
4
adjustment range
Marginal
Imp. Units Value
>10
Ideal
Value
3
dB
>15
3
N
5
g
<3.5
<3.2
5
s
<13.0
<11.0
3
N-s/m
0
>200
480-800 650-700
EMGT 364
Application in Product Development
Case Study
(5 of 7)
• Refining the Specifications
– Develop Technical Models of the Product
– Develop a Cost Model of the Product
– Refine the Specifications, Making Trade-offs
Where Necessary
BENCHMARKING
EMGT 364
Application in Product Development
Case Study
(6 of 7)
Estimated Mfc. Cost ($)
Competitive Map
120
110
100
Maniray
Rox Tahx Ti
90
80
Gunhill
Rox Tahx Q
Marginal Values
Tonka Pro
70
60
Ideal
Values
ST Tritrack
50
3
3.2
3.4
3.6
Score on Monster (g's)
BENCHMARKING
3.8
EMGT 364
Application in Product Development
Case Study
(7 of 7)
The Refined Specifications
Metric
No.
1
2
3
4
5
BENCHMARKING
Metric
Attenuation from
dropout to
Units
Value
dB
>12
Spring Preload
N
600-650
Maximum value
from the Monster
g
<3.4
Minimum descent
time on test track
s
<11.5
Damping coefficient
adjustment range N-s/m >100
EMGT 364
Application in Product Development
Data Sources
• Time Investment
• Purchasing
• Competitors Catalogs and Supporting
Literature
• Outside Firms
BENCHMARKING
EMGT 364
Concept of Benchmarking
Ethical and Legal Aspects
• Treat Partners Fairly
• Refrain from Questionable Activity
• International Considerations
• Avoid Competitors for
 Pricing
 Marketing
 Production Capacity
 Product Standards
 Sensitive Information
BENCHMARKING
EMGT 364
Conclusion
Benchmarking is the practice of being humble
enough to admit that someone else is better at
something, and being wise enough to learn how
to match them and even surpass them at it.
(APQC, 1993)
BENCHMARKING