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Applied Benchmarking for Competitiveness C RK 1998-2006 Prof Emeritus Eddie O’Kelly A tailored response to the productivity deficit
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Applied Benchmarking for Competitiveness C RK 1998-2006 The Problem n EU - GDP 33% below US 17% below Japan EU productivity lags behind US and Japan EU employment grow slower than US and Japan
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Applied Benchmarking for Competitiveness C RK 1998-2006 The Response n Single Market n Single Currency n Benchmarking for Competitiveness n The Lisbon Agenda
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Applied Benchmarking for Competitiveness C RK 1998-2006 Why Benchmarking? n Benchmarking allows us to : Analyse & Improve Key Business Processes Eliminate Waste Improve Performance Improve Profitability & Market Share n Based on FACTS…..
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Applied Benchmarking for Competitiveness C RK 1998-2006 Benchmarking = Diagnosis World Class = Medicine Networks = Delivery Mechanism Applied Benchmarking for Competitiveness
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C RK 1998-2006 n Unemployment was 20% now <5% n 2nd biggest software exporter in the world n EU funding = 10% GDP growth in past ten years n SMEs ranked 15th in productivity n Running out of people - Now looking to be more EFFECTIVE with the people we have... Ireland – Then and Now
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Applied Benchmarking for Competitiveness C RK 1998-2006
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Applied Benchmarking for Competitiveness C RK 1998-2006 Productivity of Irish SMEs only 68% of E.U. average
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Applied Benchmarking for Competitiveness C RK 1998-2006 1 2 3 4 5 1 Introduction to Benchmarking 2 Quick Fix 3 Follow up Benchmarking 4 In Depth Improvements 5 Process Benchmarking Building Capability
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Applied Benchmarking for Competitiveness C RK 1998-2006 The Diagnosis
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Applied Benchmarking for Competitiveness C RK 1998-2006 Benchmarking is a continuous systematic process for comparing business processes for improvement...
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Applied Benchmarking for Competitiveness C RK 1998-2006 n Objective n Compare against international database n Learn from Best Practice Examples n Prioritise Actions… for improvement
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Applied Benchmarking for Competitiveness C RK 1998-2006 n Access to largest European Databases for SMEs n Quantitative and Qualitative n Easily accessed n Rapid response n Building competitiveness for the future
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Applied Benchmarking for Competitiveness C RK 1998-2006 Premier Division PFAPts Manchester United15…361231 Blackburn15…271330 Arsenal15…301727. Barnsley15…124013 Everton15…162312
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Applied Benchmarking for Competitiveness C RK 1998-2006 SCHOOL REPORT MATHS75% ENGLISH68% IRISH80% ……. Comment: Richard could focus on his English, particularly his grammar.
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Applied Benchmarking for Competitiveness C RK 1998-2006 Stage B/marking Maturity of Company StartingOn The WayMature Diagnostic Holistic Process Top Class
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Applied Benchmarking for Competitiveness C RK 1998-2006 The Medicine
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Applied Benchmarking for Competitiveness C RK 1998-2006 Do Look See Understand Do Look See Do Understand Process Benchmark ing The Five S’s Total Productive Maintenanc e Overall Equipment Efficiency Six Sigma Business Excellence Value Analysis &Managem ent Lean Production Target Cost Manageme nt Facilitated Assessment Benchmarking Physical&Proc ess Flow in the Office Physical&Proc ess Development Production Control Systems Saving Time in the Workplace MaintenancePractical Quality Tools Team Building & Culture Sales and Growing them Financial Management Supply Chain & Logistics Innovation& Design Business Strategy Implementatio n Self Assessment Benchmarking Physical FlowProcess FlowSet Up Time Reduction Check SheetsRun ChartPeople & Teams Basic Maintenance Level 1 Level 2 Level 3 Look See Understand
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Applied Benchmarking for Competitiveness C RK 1998-2006 n JIT: n TQM: n Employee Involvement: n TPM: n WORLD CLASS DESIGN: n BPR n SUPPLIER DEVELOPMENT n MEASUREMENT SYSTEMS
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Applied Benchmarking for Competitiveness C RK 1998-2006 CompanySectorArea of Focus n KeenansEngr Sales Team Devel. n Erin FoodsFood BPR, Purchasing n Laserform ProfilingSubCEngProd Plan.&BPR DiesPrint&PkgProcess&Team Dev FabricationEngrProcess Dev
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Applied Benchmarking for Competitiveness C RK 1998-2006 CompanySector Area of Focus n Burnside Autocyl Engr Cells&KanBan n Intl Meat Ingred.Food BPR& Office n ColourbooksPrintingTPM n TancoEngr Supplier Dev n PB M/cTechEngr Costing&Quoting n Mc Nally JoineryTimber Prod Plan&Layout
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Applied Benchmarking for Competitiveness C RK 1998-2006 Summary of Key Benefits n 60% improvement in productivity n WIP down by 85% n Lead time reduced from 5 weeks to 1 week n Happier customers n Shortages from £13,000 to £1,200 / mth n Purchasing savings of £500,000 ++ n People freed to improve business processes...
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Applied Benchmarking for Competitiveness C RK 1998-2006 The Network
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Applied Benchmarking for Competitiveness C RK 1998-2006 World Class Networks n Companies learning with and from each other n Off-site training n On-site help with implementation n Site visits to other companies already using World Class techniques n Using a proven process of World Class tools
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Applied Benchmarking for Competitiveness C RK 1998-2006 n KEY POINTS: n Networking - 12 Companies - Cost & Resource Effective n Benchmarking Qualitative & Quantitative n Best Practice Introduction n Off-Site - Training, On-Site Interpretation
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Applied Benchmarking for Competitiveness C RK 1998-2006 Working together!
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