Tuesday, May 7, 2024

Benchmarking Process Productivity and Cost


Industrial engineers have to engage in benchmarking activity to improve their organization's processes.


For benchmarking, you have to use every bit of information that you come across to become aware of the improvements and improvement possibilities that are emerging due to research, development and design activities of various persons and organizations in the academic, agriculture, industry and business environments. You have to compare your process requirements with what is happening elsewhere to find better processes or process tasks in the environment. That will put you on a task to understand in detail what is happening elsewhere. Your benchmarking is complete when you improve your process further in response to the information revealed in the benchmarking project.


Applied Industrial Engineering. Industry 4.0 Technologies and Realized Benefits. List of Industry 4.0 Light Houses - WEF - McKinsey - Have You Benchmarked with the Best in Industry 4.0 Implementation?

https://nraoiekc.blogspot.com/2024/01/list-of-industry-40-light-houses-wef.html


Industrial Engineering 4.0 - Industry 4.0 - Productivity Benchmarking Resource

https://nraoiekc.blogspot.com/2024/05/industrial-engineering-40-industry-40.html


Industrial Engineering 4.0


Industrial Engineering 4.0 - IE in the Era of Industry 4.0

https://nraoiekc.blogspot.com/2017/12/industrial-engineering-40-ie-in-era-of.html


List of Industry 4.0 Light Houses - WEF - McKinsey.  

https://nraoiekc.blogspot.com/2024/01/list-of-industry-40-light-houses-wef.html


Posts on Companies and Factories/Plants. 

Read the information available on each plant to become aware of the effective use made by these companies of Industry 4.0 Technologies in various processes and systems.



Apple Inc. - Industrial Engineering Activities - Industrial Engineering 4.0


Bosch Automotive - Bursa - Industrial Engineering 4.0 - WEF - McKinsey Light House Plant


CEAT - Halol, India Plant - Industrial Engineering 4.0 - WEF - McKinsey Light House Plant.


4. Dr Reddy's - Hyderabad Plant - Industrial Engineering 4.0 - WEF - McKinsey Light House Plant


5. .Ericsson - Lewisville Plant - Industrial Engineering 4.0 - WEF - McKinsey Light House Plant

6. Foxconn - Shenzen Plant - Industrial Engineering 4.0 - WEF - McKinsey Light House Plant


8. GlaxoSmithKline (GSK) Hertfordshire Plant - Industrial Engineering 4.0


9. Haier - Hefei Plant - Industrial Engineering 4.0 - Industry 4.0 WEF-McKinsey Lighthouse


10. Ingrasys - Taoyuan, Taiwan Plant - Industrial Engineering 4.0 - WEF - McKinsey Light House Plant


11. Johnson & Johnson - Industrial Engineering - Productivity Improvement Activities - Industry 4.0 Lighthouse Plant


12. K-Water - Hwaseong - REPUBLIC OF KOREA - Industrial Engineering 4.0 - WEF - McKinsey Light House Plant


13. LONGi Solar - Jiaxing Plant - Industrial Engineering 4.0 - WEF - McKinsey Light House Plant

15. Mondelēz - Beijing Plant - Industrial Engineering 4.0 - WEF - McKinsey Light House Plant
Mondelez - Sricity

16. Novo Nordisk - Hillerød Plant - Industrial Engineering 4.0 - WEF - McKinsey Light House Plant

17. Otis - Industry 4.0 - Industrial Engineering 4.0 - Productivity and Quality Engineering and Improvement.


18. Procter & Gamble - Takasaki Plant - Industrial Engineering 4.0 - WEF - McKinsey Light House Plant

19. Quaker Houghton - Industrial Engineering 4.0 - Intelligent Die Casting

20. Renault - Industrial Engineering 4.0


22. S   Schneider Electric - Hyderabad

23. T  The Coca-Cola Company - Ballina

24. U  Unilever - Sonepat

25. V   Volkswagen - Industrial Engineering 

26. W   Western Digital - Bang Pa-In

27. X    Xiaomi Corporation - Industrial Engineering 4.0  - vacuum cleaner

29. Y   Yamaha - Industrial Engineering 4.0

30. Z   Zymergen - Emeryville






What is Benchmarking

Benchmarking is understanding the currently superior processes or process elements that other companies are using and improving internal processes based on the information obtained. 

The first step in the process is becoming aware that another company has a better process or process element. Then trying to understand the result of the process. Once there is recognition that better results are being achieved elsewhere thinking starts to improve the internal process. Externally, there will be attempts to understand the better process. Consultants are invited to offer help. The final step in benchmarking is develop a still better process. But before that the company may match the best process found in benchmarking. Benchmarking activities point of the possibility for improvement.

Benchmarking Against Competitors and Noncompetitors 


Benchmarking against the competition, poses some problems. Getting information about competitors is obviously difficult. 

Where do you find well-run noncompetitors for the purpose of comparison? Annual reports and other easily available publications can uncover gross indicators of efficient operation. Universally recognized measures like ROA, revenue per employee, inventory turns, and percent SG&A expenses will help identify the well-managed companies.

The first step in the process is to identify what will be benchmarked—expense-to-revenue ratios, inventory turns, service calls, customer satisfaction—whatever the “product” of the particular function is. Then pinpoint the areas that need improvement.

In Xerox’s experience, managers tend to concentrate first on comparative costs. Then attention shifts to  understanding practices, processes, and methods. it is more important and useful because these define the changes necessary to reach the benchmark costs. 

To identify superior performance in particular functions, Xerox relies especially on trade journals, consultants, annual reports and other company publications in which “statements of pride” appear, and presentations at professional and other forums. The same well-run organizations keep turning up.

Getting a noncompetitor’s cooperation in the venture is usually easier because professionals in a function are eager to compare notes. They want to know how their system stacks up. Indeed, several non-competitors have agreed to share the expense of benchmarking studies with Xerox.

https://hbr.org/1987/01/how-to-measure-yourself-against-the-best


What are the steps to benchmarking your company's performance?

Powered by AI and the LinkedIn community

https://www.linkedin.com/advice/1/what-steps-benchmarking-your-companys-performance-pvb7f

https://www.linkedin.com/advice/3/what-best-ways-use-benchmarking-process-improvement-tfpze


WHAT IS BENCHMARKING? - ASQC

https://asq.org/quality-resources/benchmarking


Benchmarking Construction Processes

https://nap.nationalacademies.org/read/11344/chapter/5#23



Benchmarking & Metrics Productivity Report

BMM-Productivity Topic Summary

Overview

Productivity measures how efficiently resources (e.g., human resources) are used to produce outputs. Benchmarking productivity has long been regarded as a better instrument for companies and projects to drive their work process improvement than the traditional project controls measurement: cost and schedule.

This report provides a summary of CII’s benchmarking capacity in both engineering and construction productivity, built on decades of industry studies.


https://www.construction-institute.org/resources/knowledgebase/best-practices/benchmarking-metrics/topics/bmm-productivity


2019
A Decade of Benchmarking Harvesting Cost and Productivity (2019)
 HTN12-01 Decade of Benchmarking Visser 2019.pdf (452.9Kb)
UC Permalink https://hdl.handle.net/10092/104547
Publisher Forest Growers Research
Authors Visser, Rien 



2002
https://www.proquest.com/openview/4a74f1c854aec6eb99e326101f80b772/1?pq-origsite=gscholar&cbl=27161



1996
The ESA Initiative for Software Productivity Benchmarking and Effort Estimation
D. Greves & B. Schreiber
ESA Cost Analysis Division, ESTEC, Noordwijk, The Netherlands
K. Maxwell, L. Van Wassenhove & S. Dutta
INSEAD, Fontainebleau, France
https://www.esa.int/esapub/bulletin/bullet87/greves87.htm




Ud. 7.5.2024, 26.1.2024
Pub. 16.5.2023


1 comment:

  1. Construction processes benchmarking
    https://nap.nationalacademies.org/read/11344/chapter/5#23

    ReplyDelete