Bench Marking Brief

8/2/2019 Bench Marking Brief

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EPIC, GOLEM IMS GMBH, AustriaEPIC, GOLEM IMS GMBH, Austria 11

BENCHMARKING:BENCHMARKING:

A CONTINUOUS PROCESS OF MEASURING OWNA CONTINUOUS PROCESS OF MEASURING OWNVITAL FACTORS AGAINST OWN PAST OR LEADERSVITAL FACTORS AGAINST OWN PAST OR LEADERS

OR COMPETITORSOR COMPETITORS Benchmarking is the process of comparingBenchmarking is the process of comparing

Benchmarking tools are simple or complex ratios (indicators)Benchmarking tools are simple or complex ratios (indicators)

Indicators are made up of business results such as revenue,Indicators are made up of business results such as revenue,

costs, added value, etc.costs, added value, etc.

Issues: Identifying indicators, availability of data, comparisons at enterpriseIssues: Identifying indicators, availability of data, comparisons at enterprise

level vs. own past results or between enterprises.level vs. own past results or between enterprises.


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BENCHMARKING EXAMPLESBENCHMARKING EXAMPLES

ComparingComparing

similarsimilar

factors infactors in

the same orthe same or

differentdifferent

enterprisesenterprises

e.g.:e.g.:

==>==>

Performance of wood furniture manufacturingPerformance of wood furniture manufacturing

in two different enterprises e.g.in two different enterprises e.g. how materials are purchasedhow materials are purchased how suppliers are paidhow suppliers are paid how inventories are managedhow inventories are managed how employees are trainedhow employees are trained how payrolls are processedhow payrolls are processed how fast new products get to the markethow fast new products get to the market how quality is managedhow quality is managed

KPI change in given industrial sector over timeKPI change in given industrial sector over time

Comparing performance of key industrialComparing performance of key industrialsectors in a region or countrysectors in a region or country

Comparing performance of regions orComparing performance of regions orcountriescountries


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BENCHMARKING -BENCHMARKING -

CONCLUSIONCONCLUSION Important tool for entrepreneurs, consultants and policyImportant tool for entrepreneurs, consultants and policymakersmakers

Difficulties in obtaining dataDifficulties in obtaining data

Sensitivity of entrepreneurs to releasing dataSensitivity of entrepreneurs to releasing data Data validity verificationData validity verification Incentives for entrepreneurs taking partIncentives for entrepreneurs taking part Cultural differencesCultural differences

It is a critical technique for making organizational transformation easyIt is a critical technique for making organizational transformation easy It requires a certain threshold of organizational willpowerIt requires a certain threshold of organizational willpower companies unable to muster the willpower to compare themselves with itscompanies unable to muster the willpower to compare themselves with its

past and with the world's best cannot implement any quality approachpast and with the world's best cannot implement any quality approach benchmarking demonstrates the requisite willpower or its absencebenchmarking demonstrates the requisite willpower or its absence


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SUMMARY:SUMMARY:

Benchmarking is a Process!Benchmarking is a Process!

Benchmarking is not a goal in itself butBenchmarking is not a goal in itself but

helps identifying areas requiring furtherhelps identifying areas requiring furtheranalysis and improvements.analysis and improvements.

Extensive and systematic comparisonExtensive and systematic comparison

using more than one variable.using more than one variable. Trend implementing a benchmarkingTrend implementing a benchmarking

approach.approach.


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Pharos BenchmarkingPharos Benchmarking

ObjectivesObjectives Obtaining information about absolute and relative changeObtaining information about absolute and relative change

of major business indicators for the current date comparedof major business indicators for the current date compared

to some reference date in the past.to some reference date in the past.

Presenting this information in easy way for analysis such asPresenting this information in easy way for analysis such as

radar graph and time series graphs.radar graph and time series graphs.

Providing trend identification and analysis tools by usingProviding trend identification and analysis tools by using

simple variable averaging method.simple variable averaging method.

Allowing flexibility in defining any desirable averagingAllowing flexibility in defining any desirable averaging

period within interval of 1-12 months.period within interval of 1-12 months. Using actual data available in Pharos and Produce PlusUsing actual data available in Pharos and Produce Plus

enterprise databases for obtaining objective results.enterprise databases for obtaining objective results.


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ObjectivesObjectives

Minimizing possibilities for subjective judgments byMinimizing possibilities for subjective judgments byindividuals due to diversity of qualificationsindividuals due to diversity of qualificationsmethods and errors.methods and errors.

Avoiding questionnaires, sensitive proprietaryAvoiding questionnaires, sensitive proprietary

information,information,its processing, human errors,its processing, human errors,incompetence as well as delays in getting results.incompetence as well as delays in getting results. Obtaining benchmarking results easy, simple andObtaining benchmarking results easy, simple and

quickly at any moment of time.quickly at any moment of time.

Supporting presenting only relative change figuresSupporting presenting only relative change figuresin percent in business reports avoiding revealingin percent in business reports avoiding revealingsensitive key performance indicatorssensitive key performance indicators

Facilitating public discussions of performanceFacilitating public discussions of performancemanagement issues and knowledge distribution.management issues and knowledge distribution.


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7 Indicators7 Indicators

Net Profit (Pre Tax)Net Profit (Pre Tax)

Expenses OverallExpenses Overall

Sales RevenueSales Revenue Overall Added ValueOverall Added Value

Overall Added Value per EmployeeOverall Added Value per Employee

Labor Ratio (Produce Plus)Labor Ratio (Produce Plus) OEE (Overall Equipment Efficiency, ProdPlus)OEE (Overall Equipment Efficiency, ProdPlus)


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FormatsFormats

Radar ChartRadar Chart

Time seriesTime series PeriodPeriod

AveragedAveraged

Brief Summary ReportBrief Summary Report

Detailed Summary ReportDetailed Summary Report


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Reference Benchmarking:Reference Benchmarking:

Added Value per EmployeeAdded Value per Employee


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Net ProfitNet Profit


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ExpensesExpenses


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KPI Change: Absolute & RelativeKPI Change: Absolute & Relative


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Pharos Benchmarking:Pharos Benchmarking:

Definition of parametersDefinition of parameters


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SummarySummary


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ConclusionsConclusions Pharos Benchmarking is simple and effective toolPharos Benchmarking is simple and effective tool The source data is real enterprise database notThe source data is real enterprise database not

questionnaires or third party interviewsquestionnaires or third party interviews It presents both absolute and relative values of changeIt presents both absolute and relative values of change Available for entrepreneur in continuous improvementAvailable for entrepreneur in continuous improvement

process by mouse click at any timeprocess by mouse click at any time Relative improvement reports can be easily presented toRelative improvement reports can be easily presented to

prospective investors, banks or important customersprospective investors, banks or important customers The report is be additional validation to business proposalThe report is be additional validation to business proposal Benchmarking helps evaluating business developmentBenchmarking helps evaluating business development

scenarios, decision consequences, innovations, strategiesscenarios, decision consequences, innovations, strategies

Excellent educational and business gaming toolExcellent educational and business gaming tool The benchmarking reports can be used for support of policyThe benchmarking reports can be used for support of policymaking for clusters, regions, countriesmaking for clusters, regions, countries

Can be used for multiple enterprises (XML reports)Can be used for multiple enterprises (XML reports) Can be further extended with benchmarking indexesCan be further extended with benchmarking indexes

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Bench Marking Brief

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