A Selection of Benchmarking References Abstract

A Selection of Benchmarking References Abstract Information Centre Benchmarking at Fraunhofer IPK, Berlin Updated: 01/2012 1

Index Benchmarking Projects... 2 Process Benchmarking... 2 Key Figure Benchmarking... 10 Consortium Benchmarking... 12 Benchmarking Studies... 13 Benchmarking Services... 17 Updated: 01/2012 1

Benchmarking Projects Benchmarking Projects Process Benchmarking Process Benchmarking Conducting a benchmarking study on the efficient handling requirements in the field of design/ development series Companies from the automotive industry 3 companies from the automotive (OEM) - Engineering services (vehicles) and machinery and equipment (pump manufacturer) 7 months Within the framework of the project, the development process was analysed and evaluated in particular, including its interfaces for product planning (central group) and production (decentralized subsidiaries). The target was to determine an objective view of the efficiency and effectiveness of the development and to search for solutions in order to react flexible for changing and complex requirements. Benchmarking in research and development Leading German enterprise in the aircraft industry Three leading European air navigation service providers, one research organization in the field of transportation and automotive and one enterprise from the plant engineering and construction industry 8 months The goal of this project was a comparison in the department of research and development (R&D) for international leading enterprises. The principal task was to determine the position of relevant research and development activities in the international environment. In addition, comparability was achieved for the subject areas simulators and third party funds. Thus, the client was enabled to conduct R&D benchmarks on his own in the future. Updated: 01/2012 2

Benchmarking Projects Process Benchmarking Benchmarking corporate communications German car manufacturer Leading European enterprises from different sectors 7 months Comparison of organisational structure (organisation benchmarking) and selected processes (process benchmarking) in the area of corporate communication for nine globally active enterprises from different sectors. The data from the following areas was gathered through site visits: organisational structure of corporate communication, strategies, outsourcing, press relations, investor relations, internal communication, international coordination of communication, public relations and corporate history as well as new media. For each individual enterprise the team identified strengths and deducted and implemented areas of improvement. Benchmarking of the logistics external to the company Paper industry Leading German enterprises from different sectors 10 months The ICB described in detail the process of the logistics external to the company, identified measurement categories and compared the data with that of leading German companies from other sectors. The results of the exercise were subsequently summarised in an action plan for the implementation phase. Benchmarking in the area of purchasing Telecommunication companies Leading German enterprises from different sectors 9 months The ICB modelled the buying process and defined qualitative and quantitative measures. As a result of this successful project, the investigation area was extended and a wider benchmarking study was conducted. Updated: 01/2012 3

Benchmarking Projects Process Benchmarking Benchmarking in accounts payable department German car manufacturer Leading globally-active companies in the electronics sector and the plant engineering sector 7 months Due to time-consuming verification of invoices, the cash discount target could not be achieved in a significant quantity of accounts. The team analysed incoming invoices (transportation, supply and other invoices) that came by mail as well as by remote data transmission. The main focus was on the analysis of the different structures for computing, organisation and costs. Every process of accounts payable was considered for the comparison including all of the interfaces. Benchmarking in the area of new product launch Leading German enterprise in the ceramics industry Leading European companies in the ceramics and glass industry 7 months Analysis and assessment of product development processes from the product idea until the start of production. The main focus was on supporting software systems (CAD/CAM) as well as the cost and organisation structure. The outcome of this project was the new orientation of the marketing and sales department as well as the introduction of a product development entity with clearly structured responsibilities and process authorization. Updated: 01/2012 4

Benchmarking Projects Process Benchmarking Benchmarking of a test bay (testing of components) Leading German enterprise in the automotive industry Leading transportation manufacturer, automotive supplier Analysis and assessment of the component testing process. The main focus was on the preparation of a proposal for the unit under test, the optimisation of the stock system for adaptation devices and the optimisation of the supporting test bay processes. The result of this project was a reduction of the number of testing devices, an increase in efficiency as well as significant cost savings in the entire test bay area. International benchmarking project in the area of contract research for institutes of applied research and industry German research organisation Three research organisations from Germany, Sweden and Austria, one leading enterprise in the automotive supply industry 12 months The main focus of the project was on conducting an external process benchmarking concerning contract research for selected organisations. Subsequently, actions were developed in order to increase turnover while at least maintaining the economical result at the same time. The scope of analysis were the definition of the business segment (market-customer-perspective), the development of a business plan (conception-perspective), the analysis of an organisational and operational structure (process-perspective) as well as an order initiation for products and services (targeted acquisition). Updated: 01/2012 5

Benchmarking Projects Process Benchmarking Benchmarking project Finishing Process Systems supplier in the automotive industry (Tier 1, with high versatile products) Four enterprises in the automotive, aeronautical and plant engineering and construction industry 9 months The project focused on the analysis and improvement of both, main processes and supporting processes. To realise the goals, a benchmarking project was conducted in order to implement best practice processes from enterprises from external sectors. Four enterprises which possess a wide range of products and their production distributed over many networked locations were selected as benchmarking partners. Substantial processes were modelled, analysed and compared on the basis of key performance indicators (KPI). These processes and KPI provided a basis for identification, presentation and evaluation of individual best practices. Relevant action plans were derived from these valuated best practices for all involved enterprises in order to implement best practice processes. Follow-up projects resulting from this benchmarking project are mentioned below: Implementation of technical sales and distribution Implementation of a start-up management process Introduction of team work in production Introduction of idea management Updated: 01/2012 6

Benchmarking Projects Process Benchmarking Benchmarking project in purchasing Public German research organisation none 7 months The target of the benchmarking project was to investigate process flows, information flows, structures and monetary value limits in purchasing. The processes and structures were analysed within the supply chain. The operational capability, cost effectiveness and internal service quality of according organisational units from research organisations were investigated with regard to purchasing. Subsequently, suggestions for improvements and measures were identified. Besides the consideration of processes inside the research organisations (internal benchmarking) a comparison with other excellent research institutions and organisations (external benchmarking) was conducted. Implementation of idea management as a result of the benchmarking project Finishing Process System supplier in the automotive industry None During the benchmarking project Refinement Process, among others, Idea Management was identified as a possible source of savings for the system supplier. The main focus was on the implementation of Idea Management in two pilot factories. In addition to the implementation, the client s project team should be enabled and coached for self-contained and independent application of Idea Management in other factories in the future. The project was implemented by supporting the design of internal communications, executive development, personnel development and coaching of Idea Managers. Subsequently, verification has been conducted on the basis of surveys. The implementation was evaluated to make adjustments. As a result, two functional Idea Management Systems were available in the pilot factories. Updated: 01/2012 7

Benchmarking Projects Process Benchmarking Implementation of start-up management as a result of the benchmarking project Finishing Process System supplier in the automotive industry None During the benchmarking project Refinement Process, among others, Start-up Management was identified as a possible source of savings for the system supplier. The main target of the project team was the implementation of Start-up Management in corporate headquarters and a pilot factory of the system supplier. Objectives for the implementation were development of a detailed concept and definition of target process. In addition to the implementation, the project team should be enabled and coached for self-contained and independent application of Startup Management in other factories in the future. The implementation has been accomplished by coaching the project team and controlling the current process. The implementation was evaluated to make adjustments. As a result a functional start-up management was available in the pilot factory. One start-up was accomplished in real-time. Implementation of technical sales and distribution as a result of the benchmarking project Finishing Process System supplier in the automotive industry None During the benchmarking project Refinement Process, the establishment of Technical Sales and Distribution was identified as a possible key subject for the improvement of the sales process as well as for an increase in new customers but also total turnover. The objective was to develop a detailed concept for the establishment of Technical Sales and Distribution and to make organisational adjustments of the system supplier s existing sales department. The focus was on the definition of a target process for Sales and Distribution. Organisational change and action plans were defined in accordance with the project team. The project was finished within the estimated time. As a result, the top management received the coordinated action plans which were realized within a period of six to nine months. Updated: 01/2012 8

Benchmarking Projects Process Benchmarking Benchmarking project in the area testing and development of components - A study for the efficient handling of QS 9000/VDA 6.1 requirements German enterprise from the automotive industry Leading enterprise from the chemicals industry, producer of micro-electronics, leading pharmaceuticals enterprise 9 months As part of this project, the ICB conducted an extensive analysis and assessment of the component and pieces process concerning the engine cooling circuit. Special emphasis was put on testing the efficiency and optimizing the QS 9000/VDA 6.1 documentation requirements by examining documentation effort, documentation resources as well as documentation steps and comparing them with benchmarking partners. As a result of this project, a control level was implemented for the controlling of documentation processes. Furthermore, the documentation structure was standardised. Project-Partner: Benchmarking project in the field of process analysis German enterprise in the area of fundamental research None 3 months For this project, a process admission of the purchase-relevant tasks and processes for the range building took place during a workshop. The goal was an analysis of the existing processes with consideration of substantial aspects like the four-eye principle. Updated: 01/2012 9

Benchmarking Projects Key Figure Benchmarking Key Figure Benchmarking Key figure benchmarking in the building material industry German industry group Leading European enterprises in the building material sector 8 months The ICB developed and implemented a key figure system for three companies at four different sites. For a representative product group, the team mapped out a model for the entire business process chain from the producer to the customer and undertook an evaluation using key indicators. The ICB has tested cost and quantity data with regard to its plausibility and summarised it in benchmarks for the main process. These results have been used to derive action points that were subsequently implemented by the project partner. Key figure benchmarking German automotive supplier Small and medium-sized German automotive suppliers 7 months The ICB developed a basic key figure system that was handed over to 50 companies from the automotive supplier sector. The answers from these companies were used to deduct valuable information about the performance status of other enterprises. At a Best Practice Conference, a standard for the automotive industry was defined in accordance with the companies that ranked best in the exercise. Updated: 01/2012 10

Benchmarking Projects Key Figure Benchmarking Benchmarking of small and medium-sized enterprises in Indonesia Deutsche Investitions- und Entwicklungsgesellschaft mbh (DEG) (German Association for Investment and Development) Sector independent Ten Indonesian companies were compared with regard to the performance standards of their major processes using a metric system. The ICB developed an action plan for each enterprise. Sector benchmarking in four sectors EU International Partners from the following industries: foundry, textile, furniture and automotive supplier In these four projects, 14 enterprises from three countries of the same sector were compared by using a metric system. An action plan was developed in order to close the productivity gaps based on the partially significant differences. Benchmarking for small and medium-sized enterprises BenchmarkIndex/ a European study European Commission, DG Enterprise Austria (WIFI), Ireland (Enterprise Ireland), Greece (EOMMEX), Italy (ECIPAR), Netherlands (KDI), Portugal (IAPMEI), Spain (SPRI), Great Britain (Enterprise Agency of East Kent; DTI, Winning Moves) 2 1,450 European small and medium-sized enterprises were compared as part of a metric-based benchmarking project. A standardised questionnaire was used to gather key financial and management data as well as business excellence statements. As a result of these findings, each company received a profile of strengths and weaknesses in relation to the sector. Furthermore, the benchmark analysis was used to create an optimisation concept for the enterprises. Updated: 01/2012 11

Benchmarking Projects Consortium Benchmarking Consortium Benchmarking Consortium benchmarking exercise on the status of knowledge management in Germany and Europe Consortium of leading German enterprises Leading European Enterprises from different sectors 7 months Based on new research results and the conceptual knowledge management approach of the IPK, a bi-lingual benchmarking questionnaire (German and English) was developed and distributed among the top 1,000 German companies and 200 European companies with the largest turnover. The high return of these questionnaires enabled the ICB to identify Best Practice companies and write case studies about those Best Practices. Updated: 01/2012 12

Benchmarking Studies Benchmarking Studies Execution of world-wide benchmarking study in the field of information and communication technology (ICT) Telecommunication enterprise The survey was performed among the 40 world-wide leading enterprises in the field of research and development in the information and communication technology. 2 months One part of this worldwide benchmarking study was to determine practices and strategies in research and development of the world's leading ICT enterprises. In addition, the results of the study contributed to the future potential of professional, technological and financial challenges in the field of ICT R&D. The aim of this benchmarking study was to provide an overview of the worldwide research and development activities in the field of ICT and to provide results based on the trends, strategies and best practices in the field of ICT R&D and deduce all organisations involved in a benchmarking study available. Benchmarking study in the area of documents logistics German research institution The survey was conducted in German enterprises from different sectors (insurance, banking, automotive, energy provider, telecommunication) 9 months The objective of this study was to analyse the status quo of Documents Logistic processes in selected enterprises in Germany. In addition, existing and new approaches and solutions should be investigated. Thus, the fundament was established for further research concerning new outsourcing models and processes in context of rapid technological change. Furthermore, problem areas and the need for operative action were identified. The potential for existing Documents Logistics services were analysed as well. The study provides a basis for determining the current situation and identifying trends in Documents Logistic services. Updated: 01/2012 13

Benchmarking Studies Benchmarking trends in real estate and urban development Initiative/ non-corporate partner The survey was conducted among the top 500 companies in Germany (rated by turnover) The objective of this study was to asses the current state of the art and direct practical advantages of benchmarking in German companies and organisations which do project development in the real estate industry (e.g. amongst others: banking houses, project developer, communes). In an additional step, a basic framework was compiled for an integrated benchmarking within the project development processes. In particular, the following specific parameters in the real estate sector were considered: interdisciplinarity, uniqueness of products, multiplicity of internal and external stakeholders and financing model. Another objective was to identify the operational areas of benchmarking within the participating companies and their immediate practical benefits for preventing future problems. Feasibility study for a knowledge management system in an electronics enterprise Leading Enterprise from the electronics industry None The team defined the demand for information and knowledge as well as conducive and hindering factors in the corporate culture for the establishment of knowledge management in an electronics enterprise (1,500 employees). Subsequently, the team developed a concept and a roadmap for the introduction of knowledge management. This included design principles for the areas of corporate culture, process design, information technology, data and knowledge demand, personnel management and leadership. Based on this study, the enterprise has developed a design concept. Updated: 01/2012 14

Benchmarking Studies Benchmarking study Measurement and evaluation of the innovation ability from small and medium-sized enterprises (SME) in Germany Consulting engineers and Advisory bureau K+K Wissenstransfer e.k., Association of German Engineers (VDI), Information Centre Benchmarking (IZB) Survey among 350 German small and medium-sized enterprises 3 months The objective of this study was to constitute and evaluate the need for improvement of the innovation ability through concepts of best practices in SME. The development of concepts shall be conducted subsequently in relevant industry sectors. The background of this study was a practical analysis with the scope to identify the strengths and weaknesses of innovation ability in German SME. Afterwards the requirement-based concepts of best practises were developed for sustainable strengthening of competitiveness. The unique selling point of this study is to investigate the specific role of structure, relationship and human resources in the generation of innovations. Contrary to the result-oriented perspective, the conducted study takes into account the innovation potentials in processes, co-operations and the knowledge of employees of an enterprise. Benchmarking exercise on the status of benchmarking in Germany Own initiative The survey was conducted among the top 1,000 companies in Germany (rated by turnover) 5 months The team generated a questionnaire aiming to collect relevant data and activities for the assessment of benchmarking activities in leading companies. Special emphasis was put on questions of method, organisation of benchmarking, success factors, results and framework conditions. Updated: 01/2012 15

Benchmarking Studies Benchmarking study for future application fields German company in the field of metal and plastic processing None 3 months The client succeeded to develop a component which led to significant cost advantages because of its material-saving production methods. In order to benefit from substitution effects, the first objective of the study was to find new product groups to which the component can be transferred. The second aim was the determination of new fields of application and alternative products concerning the production technology. A national competition analysis regarding producers of similar machines and components, especially besides the existing markets was the third part of the study. This included an examination of benchmarks like market requirements, market volume and market access conditions. As a final result, a determination of position and a strategy recommendation for the client were derived. Updated: 01/2012 16

Benchmarking Services Benchmarking Services Creation of the Slovak Benchmarking Information Centre (SBIC), Bratislava Kreditanstalt für Wiederaufbau (Credit Institution for Rebuilding), Slovak Ministry of Economics, Trade Association Slovak Ministry of Economics, employers federations, sector associations, chambers of commerce, Slovak Productivity Centre 4 months Analysis and assessment of the Slovak business and economy structure. Creation of a business plan for Slovak Benchmarking Information Centre. Creation of a benchmarking centre in Poland National certification organization None 3 months The objective of this project was the assistance of the client to establish a benchmarking centre in Poland. The client wanted to offer benchmarking services for his previous and prospective customers in the future. The benchmarking centre should present the central coordination point for benchmarking activities. The Information Centre Benchmarking (ICB) at Fraunhofer IPK assisted with the creation of a benchmarking centre in Poland in co-operation and in accordance with Global Benchmarking Network (GBN). To support this new local benchmarking centre, the ICB provided information and instructions for the implementation of benchmarking projects as well as assistance for establishing a central information and advisory office for various different questions concerning benchmarking. Updated: 01/2012 17

Benchmarking Services Creation of a benchmarking centre in China Beijing Academy of Science and Technology (BJAST) None The objective of this project was the assistance of the client to establish a benchmarking centre in Beijing. The client wanted to offer benchmarking services in order to support local companies and to increase their competitiveness in core industry sectors. The Information Centre Benchmarking (ICB) at Fraunhofer IPK assisted with the creation of a benchmarking centre in China in co-operation and in accordance with Global Benchmarking Network (GBN). To support this new local benchmarking centre, the ICB provided information and trainings for the implementation of benchmarking projects as well as assistance for establishing a central information and advisory office for various questions concerning benchmarking. Creation of a benchmarking centre in Guangdong Guangdong Science and Technology Evaluation Center None The objective of this project was the assistance of the client to establish a benchmarking centre in Guangdong province, China. The client intended to establish benchmarking as a method to systematically compare and strengthen regional competitiveness with the help of best practices. The Information Centre Benchmarking (ICB) at Fraunhofer IPK assisted with the creation of a benchmarking centre in China in co-operation and in accordance with Global Benchmarking Network (GBN). To support this new local benchmarking centre, the ICB provided information and trainings for the implementation of benchmarking projects as well as assistance for establishing a central information and advisory office for various questions concerning benchmarking. Among other things, this included the creation of a product catalog for potential benchmarking services for Chinese enterprises and the development a business plan. Updated: 01/2012 18

Benchmarking Services Secondary data analysis: Evaluation of the market for limited lot production in the automotive industry Development services provider from the automotive industry None The client is a development services provider for automotive manufacturers and has not implemented limited-lot production so far. A secondary data analysis of the market was ordered to evaluate the opportunities of a market entry. For these purposes, a secondary data analysis has been carried out with consideration and evaluation of prevalent studies to this subject as well relevant specialist literature. The main focus was on the automotive electronic system. Implementation of the BenchmarkIndex in Poland National certification organisation Database operator from Great Britain, system integrator The objective of this project was to compare national and international KPI in Polish companies. Therefore an interface for the database of the BenchmarkIndex was developed. Differences between Polish accounting and the reference system of the BenchmarkIndex (UK GAAP) should be balanced out by harmonising data acquisition. Further objectives were the training of two super-users and two instructors for the Polish BenchmarkIndex. The management consultants received assistance for the interpretation of results and deriving suitable action plans in Polish companies. Updated: 01/2012 19

Benchmarking Services Implementation of BenchmarkIndex in Czech Republic Czech agency for economic and investment assistance Database operator from Great Britain, system integrator, project developer The objective of this project was to compare national and international KPI in Czech companies. Therefore an interface for the database of the BenchmarkIndex was developed. Differences between Czech accounting and the reference system of the BenchmarkIndex (UK GAAP) should be balanced out by harmonising data acquisition. Further objectives were the training of two super-users and two instructors for the Czech BenchmarkIndex. The management consultants received assistance for the interpretation of results and deriving suitable action plans in Czech companies. Implementation of the BenchmarkIndex for SME in Malaysia National production centre Database operator from Great Britain, system integrator, project developer The objective of this project was to compare national and international KPI in Malaysian companies. Therefore an interface for the database of the BenchmarkIndex was developed. Differences between Malaysian accounting and the reference system of the BenchmarkIndex (UK GAAP) should be balanced out by harmonising data acquisition. Further objectives were the training of two super-users and two instructors for the Malaysian BenchmarkIndex. The benchmark advisors received assistance for the interpretation of results and deriving suitable action plans in Malaysian companies. Updated: 01/2012 20

Benchmarking Services Evaluation and international benchmarking of the Vietnamese science, research and technology structures for strengthening of innovation system in Vietnam Federal Ministry of Education and Research (BMBF) Ministry of Science and Technology Vietnam 18 months This project was comprised of three modules which complement each other and intersect chronologically: Module 1: Analysis for the national requirement and industrial demand on research and development services as well as on technology transfer Module 2: Evaluation of existing structures and establishments in the area applied research and technology innovation Module 3: Derivation of measures for a re-orientation of the national research and innovation policy Evaluation and international benchmarking of the Indonesian science, research and technology structures for the strengthening of the innovation system in Indonesia Federal Ministry of Education and Research (BMBF) Ministry for Research and Development Indonesia 18 months This project was comprised of three modules which complement each other and intersect chronologically: Module 1: Analysis for the national requirement and industrial demand on research and development services as well as on technology transfer Module 2: Evaluation of existing structures and establishments in the area applied research and technology innovation Module 3: Derivation of measures for a re-orientation of the national research and innovation policy Updated: 01/2012 21

Benchmarking Services Evaluation of the Egyptian science, research and technology landscape for the design of the Egyptian innovation policy and strategy Ministry of Higher Education and Scientific Research (MHESR) Egypt None 7 months This project was comprised of three modules which complement each other and intersect chronologically: Module 1: Selection of current and future major industries and industrial regions in Egypt. This was followed by an analysis for the national requirement and industrial demand on research and development services as well as on technology transfer. Module 2: Evaluation of existing structures and establishments in the area applied research and technology innovation. Benchmarking of the R & D relevant economic indicators in Egypt. Module 3: Derivation of measures for a re-orientation of the national research and innovation policy. Assistance on development and implementation of a valuation method for systematic planning of service schedules German airline company None 2 months The objective of this project was to develop a valuation method based on an existing list of criteria. By using a cause-effect-matrix, the potential of single parameters as well as their consequences on the whole system were identified. Updated: 01/2012 22

Benchmarking Services Fit for Service - International benchmarking of the German service sector BMBF (German Ministry for Education and Research), IAO Stuttgart Fraunhofer IAO 3 Scientific support and supervision of systematic search, description and implementation of benchmarking methods and tools for the service sector. (www.fit4service.com) Development of a Business plan for Dubai TechnoPark (DIT) Ministry Dubai Institut for Technology 9 months Development of a business plan for a research and a technology park. Principal purposes of the project: Development of the organisation and process structure related to a planned strategic controlling systems (BSC) Development of a science and & technology of management system Updated: 01/2012 23

Benchmarking Services Introduction of the Winning Measures characteristic figurebased benchmarking system for SME in Australia Australian government Data base operator from Great Britain, system integrator, project developer The goal of the project was the development of an interface with the data base of the Winning Measures, which makes comparisons of national and international characteristic numbers for Australian enterprises possible. Partial goal was a harmonisation in the field of data acquisition in order to adjust differences between Australian accounting and the reference system of the Winning Measures (UK GAAP). Further goals were the training courses of first group users. The Winning Measures Advisors received support during the interpretation of the reports and the finding of suitable action plans for the Australian enterprises. Development of a Strategy Concept for an Chinese Heavy Industry Company Chinese Heavy Industry None At first, the ICB performed an evaluation. In order to elaborate the master plan, the ICB developed a strategy concept consisting alternative approaches to improve the capabilities of the heavy industry company according to current and future market needs. Updated: 01/2012 24

Fraunhofer-Institute for Production Systems and Design Technology IPK Division Corporate Management Pascalstr. 8-9 D-10587 Berlin / Germany Information Centre Benchmarking Contact: Dr.-Ing. H. Kohl Dipl.-Ing. Dipl. Wirt.-Ing O. Riebartsch Phone: +49 (0)30 / 390 06-168 / -262 Fax: +49 (0)30 / 393 25 03 www.benchmarking.fhg.de