BEnchmarking

Introduction

Over the past ten years B & M Analysts has become a leader in the field of benchmarking and competitiveness analysis through development and utilisation of its cutting-edge benchmarking methodologies.

Using our world-class methodologies and extensive competitiveness database, B&M Analysts provides a comprehensive benchmarking service for companies across a range of industry sectors and sub-sectors.

Value Proposition

Each company that participates in B & M Analysts' benchmarking service receives a detailed report outlining its comparative performance over 30 key measures in the areas of:

• Financial performance
• Cost control
• Quality
• Value chain flexibility
• Value chain reliability
• Human resource development
• Innovation capacity

The analysis combines hard quantitative data with the qualitative findings of an expert consultant that visits each plant. This is in turn scrutinised and cross-referenced to a set of surveys from key customers and suppliers to give a detailed understanding of the competitiveness of each company.

The outcome of this process is a concise understanding of:

• The firm's ability to understand and meet customer demands
• The firm's ability to match and/or exceed competitor performance levels

Methodology

B&M Analysts benchmarking tool comprises five complementary components:

1. A comparative company-level benchmark against appropriate international, national/regional and sub-sector comparators
2. A customer competitiveness profiling tool
3. A supplier competitiveness profiling tool
4. Management and labour interviews
5. Factory observations

International experience suggests that there are numerous key variables to benchmark across all industries. However, in addition to these general benchmarks, each industry also has specific parameters to be considered.

"Like-with-like" benchmarks (i.e. benchmarks between firms competing in the same or similar market segments) are therefore the most useful, particularly when the findings are being used to direct management action. Getting management to accept the need for change with this type of information is therefore often made easier.

Our "like with like" benchmarking approach makes it necessary for us to have an intimate knowledge of the firms that we benchmark. A key part of our benchmarking approach therefore involves us performing a process benchmark at our clients' facilities to generate a qualitative feel for a company's operational dynamics.

The process benchmark, encompassing management and labour interviews, as well as detailed factory measurements, gives us an in-depth understanding of how process issues impact on firm performance levels.

In addition to this, questionnaires are sent to each firm's major customers and suppliers. The customer questionnaires allow for, amongst other things, a more detailed understanding of the ability of the firm to meet its specific customer requirements, while the supplier questionnaires allow for the firms to understand the extent to which they are effectively communicating and engaging with their own supply base around competitiveness pressures.

Once the five facets of the benchmarking process are completed, a detailed report is compiled for clients, outlining their comparative and customer/supplier benchmark performance, as well as the principal reasons underpinning evident gaps. The report is then presented to the company in the form of a management workshop to ensure open and active engagement with the findings.

Benchmarking process

The list below outlines the major steps from inception of the project to the final report and presentation of the benchmarking results.

1. Project Inception

Once the scope of the project is agreed, the date for the main on-site process benchmark is set. Performance questionnaires are distributed to management, sales/marketing, logistics, production, quality and HR functions within the company or manufacturing facility, as well as to 10 suppliers to the company and 10 customers.

2. Data Processing - Stage 1

Internal, supplier and customer questionnaires are collected. The data is analysed and benchmarked, and discrepancies in the collected data are flagged for discussion on the day of the on-site process benchmark.

3. Process Benchmark

The process benchmark takes place at the manufacturing facility - or facilities - to be benchmarked. We start off with presenting an overview of the role of benchmarking in achieving global competitiveness to the management team present.

After this we conduct in-depth interviews with top management, sales/marketing, logistics, production, quality and HR functions within the company or manufacturing facility, focusing on specific aspects of their individual functions, as well as working through any issues that have become apparent from the Stage 1 data collection.

Following the interviews, we perform a visual factory floor evaluation, facilitated by a floor supervisor, and conclude with a feedback session with top management.

4. Data Processing - Stage 2

Having completed the process benchmark, we analyse all data collected and prepare a comprehensince written report outlining key findings as well as detailed statistical comparisons on the areas of:

• Financial performance
  
• Cost control
  
• Quality
  
• Value chain flexibility
  
• Value chain reliability
  
• Human resource development

5. Final report and presentation of findings

The report is submitted to management and we do a formal on-site presentation of the key findings, which is followed by a formal workshop exploring the findings in depth.

Sectors

Well established initiatives are currently running in the following industries:

• Automotive (spanning 14 automotive component manufacturing sub-sectors)
• Clothing (spanning 7 clothing sub-sectors)
• Textile (both local and international)
• Furniture (both local and international)

Examples

B & M Analysts' most well established benchmarking initiatives are as follows: (see also our Links page)

The effectiveness of B&M Analysts' benchmarking methodology as a management tool is best demonstrated through testimonies from companies.

Joining existing sector programmes

Enquire about opportunities to establish new sector programmes

To enquire about the possibility of establishing a programme in a sector, please contact the appropriate sector contact.

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