Benchmarking Initiative

and
Industry Benchmark Awards
An Honest Intermediary to Facilitate Knowledge Sharing

Process Consulting

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Agenda  Mission & Objectives
 Benchmarking & Its Benefits
 The Benchmarking Process
 Feedback Reports & Sample Formats
 Benchmarking Code of Conduct
 Making a Benchmarking Request
 Our Credentials

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The Mission

To provide Process Benchmarks, Best Practices,

and management tools,

enabling

Progressive and focused companies

to operate

at higher levels

of competitiveness

Know How Good You Are and Know how to Improve…

A Practical and Effective Tool for Knowledge Sharing and Growth
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Objective
• To promote, facilitate, improve benchmarking
• To stimulate competitiveness
• To help organizations improve Productivity and Quality
• Benchmarking Awards for the Industry

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Each of our Products is aimed at different objectives along the journey to maturity
Scope of Details/ Remarks
Analysis
Corporate Assessment, • Akin to a “50,000 ft high Bird’s
Level I Business Excellence Eye view”
Assessment (or) Macro
Assessment • These types of assessments
are typically used for overall
business excellence awards
assessment
Micro-comparative • Akin to a 1,000 ft high Bird’s
Level II Assessment of Business eye view, where the
“resolution” is finer
Critical Review of
Results, Drivers, • An assessment based on
Enablers and processes specific business and
operational metrics.
• An assessment to capture Best
Practices and Information
items
Customized Assistance • An alternative to the usual
Level III in achieving the consulting approach; but far
enhanced state of more focused and decisive
performance /operations
through handheld • End-result oriented
Continuous Improvement
• End-result based on improving
to and beyond the best in class
Objective
Assess Strategic and Business
Process Level Gaps and identify
Scrutinize and compare Business
& Operational level differentiators
wrt profitability and performance
Identify specific improvement
initiatives required and outline the
roadmap for achieving them
Implement (in a prioritized manner)
all gaps identified during the
benchmarking process
Will be team oriented, but an
extremely focused journey
Will use and attempt to implement
the best practices identified
Product
F&S’s Business Excellence Model
Manufacturing Excellence Model
(for example: the IMEA)
Industry Benchmarking
(alongside the Industry
Benchmark Awards for each
specific Industry)
Continuous
Improvement
Model
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 Each of our Products is aimed at different objectives along the journey to maturity

Continuous
Level III
Improvement
Model

Industry
Benchmarking
Levels

Level II

Business Excellence
Assessments
Level I Manufacturing Excellence
Assessments

Across All Industries Industry Specific Customer Specific

Degree of Customization
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 Benchmarking
and
Its Benefits
F r o s t & S u l l i v a n’ s

Industry Benchmarking

2007

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 TARGET !!

Trend

•
Performance

Benchmark
GAP
•
Current Performance

Timeline

Benchmarking will tell you:

1. • Your Present Standing and Performance Levels

2. • How good you will need to be (it will give a practical vision)
3. • How to get there and what are others doing in a better way (a roadmap)
4. • and therefore help you to achieve your objectives, mission, vision, and goals
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Benchmark WHAT?
Understand and Study processes that are critical to results;
Select KPIs;
Identify partners;
Determine data collection elements.
Benchmarking
Who/What is BEST?
Select partners;
Develop data collection approach and tools;
Conduct detailed research

How do THEY do it?

Compare current performance with data collected
Identify performance gaps and Identify best practices;
Develop practices from the ‘best in class’.

How do WE do it?
Implement the practices developed;
Monitor and report on progress; and Consulting
Recalibrate benchmarks and identify new opportunities.
Continuously take corrective/iterative action
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Scope of The Exercise…
Benchmarking

Industry Benchmarking

Benchmark Matrices Best Practices

Data Matrices and their relative Comparison Robust Processes that have resulted in companies
having superior performances

(WHAT and by HOW MUCH) (HOW)

Quantifiable Matrices Qualifiable Comments and Analysis of
deployed processes

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 The METHODOLOGY…
is a closed iterative loop of PDCA:
for ease of understanding is broken into three execution phases…Grey, Blue, and Green

Finalize Topic Data Outline Data Collection

Definition, Collect Finalize
Points in each
Start Preliminary Benchmarking Collection
Scope and (Secondary and company/site and
Data Questionnaire
Measures Mail based) prepare for site visits

Finalization
Finalizationofof
Sponsors/Participants
Sponsors/Participants
Plan Site Visits

Data Collation
No
Act Do and Analysis

Understanding and
Evaluating Best
Check Practices

Other Satisfactory? Monitoring Implementation Recommend

Results of Best Practices Improvements
Areas
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Each Execution Phase has features with detailed activities to be undertaken…

Grey Phase

Evaluate Benchmarking Topic Ideas Requested (Requests can also be made by Industry) and Finalize Topics
Plan for the Benchmarking projects chosen
Identify and Brief Participants and Sponsors
Finalize scope of project, measures to be used and definitions of matrices and terms (national or international)
Finalization of Data Collection and Analysis approach
Choose data Collection Methods and appropriate tools
Collect Preliminary Data from Participants

Blue Phase

Plan and Prepare Questionnaire. Confirm through Industry Interaction

As per approach outlined in Grey Phase, get mail-based and secondary researched information
Plan and Execute Site Visits and related Data Collection
Study and Document Best Practices and Information Items

Green Phase

Recommend Improvements
Plan for and Conduct Learning Workshops
Compile and Distribute the Benchmarking Report (Matrices and best Practices)
Follow up with best practice organizations (for further learning’s if need be)
Plan for implementation and develop action plans for organization (a macro guiding light) 11
The Three Execution Phases deal with matrices and best practices that fall under 3 broad
categories
Generic
Process Performance
&
Strategic Benchmarking or Competitive Benchmarking
benchmarking

3. HRM 7. People results

9. Key performance
5. Process and results
change
6. Citizen/
1. Leadership management
2. Strategy customer results

4. Partnership 8. Society results

&
Resources
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 Performance Process Benchmarking Strategic Benchmarking
Benchmarking

Tools • Ratio Analysis • Process Mapping • Strategic Management tools

Results/ • Identification of Strength and • Improved Process in terms of • Alternative strategies

Deliverables Weaknesses efficiency and effectiveness

• Improved mechanism for

Performance management

• Knowledge about Industry Profile

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 Used for collecting Quantitative data, PEFORMANCE BENCHMARKING
Objective Physical or Financial
to compare the performance
of different organizations in the same Industry

Performance comparison
Scope with other participating firms

Selection of performance criteria

in key result areas
Data collection with Questionnaire
Steps Site visits, meeting with heads
Data processing and analysis
Report presentation

Tools RATIO ANALYSIS

Identification of Strength and Weaknesses

Results/ Improved mechanism for
Deliverables Performance management
Knowledge about Industry Profile
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 Benchmarking discrete processes
Objective against organizations with
PROCESS BENCHMARKING
performance leadership in these processes

Comparison of processes across

Scope Industries irrespective of
the nature of Industry

Determine what process

is to be benchmarked
Identify who does that process best
Steps Collect Information
Analyze Gap
Implement the findings

Tools PROCESS MAPPING

Results/ Improved Process in terms

Deliverables of efficiency and effectiveness

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 Systematic process of evaluating alternatives,

Objective
implementing strategies and STRATEGIC BENCHMARKING
improving performances by understanding
and adapting successful
strategies from external partners

Applicable irrespective
Scope of nature of the Industry

Steps Qualitative research

Strategic Management Tools

Tools

Results/ Alternative strategies

Deliverables

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 Comparison of customer perception
of goods and services supplied by the PRODUCT BENCHMARKING
Objective
specific business unit
against products and services
in the same market

Performance of attributes
Scope of the competing products
within the same Industry This is an Optional
insertion in the
Determine the Attributes exercise…the fourth
of both Product and Services benchmarking area
and assigning weightages
Rating of a company vis-à-vis
Steps
its competitors against various attributes
Survey to find out the Perception
of customers
Identification of Gaps in perception

Brainstorming
Tools Interviewing

Gap in perceptions of Customers

and Management on attributes
Results/
Value Maps
Deliverables
Positioning of the Product in the Market
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Feedback Reports & Sample Formats

F r o s t & S u l l i v a n’ s

Industry Benchmarking

2007

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Report
Part- I
Profiling & Graphics

Part- II
Tables of Results

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Part- I

Profile 2-3 year trend of Performance ratios and Graphics, for example:
• Key performance profile
• Key performance ratios
• Chart-pack
• Specific Customized and Industry relevant trends of ratios

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Part- II
Tables of results, for example:
• Profitability & asset utilization • Manpower structure
• Production cost & asset utilization • Avg. departmental wages
• Detailed production costs • Downtime and Quality analysis
• Manufacturing overheads & Energy
• Vendor assessment
costs
• Marketing performance
• Marketing & distribution expenses
• General overheads & current asset • Marketing budgeting & monitoring
levels • Overall company training
• Sales analysis • Performance appraisal
• Market share • Human resource development
• 5-Year growth in sales
• Growth and product innovation
• Productivity
plus other customized comparative data that will be industry or case specific
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Key Performance profile Industry: Pharmaceutical

Marketing Working capital

Profitability Cost ratios Productivity Growth
Efficiency efficiency

Total
Operating Production Average Finished goods
Operating Production Production Marketing Sales per Debt
profit as a % of Rate of asset Value added Sales per assets per annual growth stocks in terms
profit as a % materials cost labor cost as a expenses as marketing colletion
operating turnover per employee employee Production in sales over of days
of Sales as a % of % of SVOP a % of Sales employee period
assets employee last 5 yrs production
SVOP

% Times % % % Lakhs Lakhs Lakhs Lakhs % Days Days

28.83 19.15 1.96 24.62 3.67 - 7.85 21.51 8.45 38 32.1 16 20

28.43 18.08 1.7 31.36 4.97 6.55 4.46 19.36 5.83 37 29.2 27 41

24.1 17.31 1.48 33.85 5.28 10.59 v3.22 11.05 5.53 31 19.4 32 44

21.62 16.99 1.45 41.03 6.31 11.21 2.82 10.36 5.22 25 18.1 40 47
v

19.4 16.62 1.39 43.37 9.47 11.28 2.28 9.66 4.48 22 16.9 47 76

17.83 14.93 1.37 44.81 9.57 11.38 2.23 9.28 3.71 22 13.5 47 78

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 Focus on Customers
100.0 86.4

Quality Systems Orderliness, Safety & Environment

80.0

69.7
YOU
62.1
60.0

Supply Chain Visual Management

77.3 40.0
69.7

20.0 Comparati
ve
0.0 Average
72.2 75.8
Operational Flexibility Scheduling Systems

60.0
66.1

Machine Up-time Layout & Material Handling Systems

69.7
Maximum
77.8 Possible
Internal Competence Inventory Levels

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 Fo
cu
O s Score (10 00max)
rd on
er C

0
10
20
30
40
50
60
70
80
90
100
lin us
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s, m
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E

73
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61
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54
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62

in
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ys
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In
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71

to
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67

om
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ac
62

hi
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55

na
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companies (average of) and the worst 3 companies (average of)

bi
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57

Su
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63

l it
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61

A
da
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at
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The Facility Score is being compared with scores of the IMEA 2005 Awards best 3

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 Statistical Information on Overall Score Comparison (on 1100)

Summary for Score

A nderson-Darling N ormality Test
A -S quared 0.23
P -V alue 0.807

M ean 719.16
S tD ev 79.94
V ariance 6391.03
S kew ness -0.083630
Kurtosis -0.594080
N 55

M inimum 542.00
1st Q uartile 663.00
M edian 724.00
3rd Q uartile 773.00
560 640 720 800 880 M aximum 870.00
95% C onfidence Interv al for M ean
697.55 740.78
95% C onfidence Interv al for M edian
696.93 744.43
95% C onfidence Interv al for S tDev
9 5 % C onfidence Inter vals
67.30 98.48
Mean

Median

690 700 710 720 730 740 750

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Benchmarking Code of Conduct

All information and reports will be kept strictly confidential.

However, data and information will be compiled into meaningful reports that will be generic (not
company specific).

Data Requirements and Discussions shall not delve into areas that get classified as a unique
competitive differentiator or a trade secret (that is, a competitive advantage that a company attains over its
rivals)

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Companies that Can Participate…have to fulfill a bare minimum expectation
Organizations, which have undergone at least one awards process like any
Business Excellence, Quality Award, Manufacturing Excellence Awards, etc.
or
ISO certified organizations..
or
Organizations that pioneer(s) in Productivity and Quality, not content with mere
improving internally, year-on-year (demonstrated)

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Sectors that will Benefit
Industries Services

Automobiles Process Industry Financial Services

NBFCs
Automotive Ancillaries Organic Chemicals
Banks
Exhaust Systems Speciality Chemicals
Hospitals
Steering Systems Adhesives
Hotels
Power Train Industrial Chemicals
Cinemas and Multiplexes
Electrical Systems (incl Batteries) Laboratory Chemicals Departmental Stores
Braking Systems Edible Oils Cellular Service Providers
Body Shops (if relevant to ancillaries) Food processing Internet Service Providers
Tyres Metals
Seating Systems ISPs
Engine * HR/CR
Safety Systems * Copper
Fuel Systems * Zinc
Cement (Including Crushing Units) Aluminium
Paper Engineering Products
Textiles Components
Pharmaceuticals Machinery
API Electrical
Formulations Components
Machinery
IT Hardware
* Only Benchmarking Requests having
International scope will be accepted 35
Making a Benchmarking Request ?

F r o s t & S u l l i v a n’ s

Industry Benchmarking

2007

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 Please Address Benchmarking Requests to:

Madhusudhan V Nishit Lakra

Program Manager, Program Manager,

Frost & Sullivan Frost & Sullivan

#101, Prestige Loka 7th Floor, Karumuttu Center
No.7/1, Brunton Road 498 Anna Salai
Bangalore - 560025, India Nandanam
Chennai-600 035, India

Tel: 91 (80) 41530930/31/32/33 Tel: 91 (44) 24314263 / 42044500

Fax: 91 (80) 41530934 Fax: 91 (44) 24314264
Email: Email: nlakra@frost.com
madhusudan.veeraraghavan@frost.com

Quotes will depend upon the scope of the benchmarking request and will be given within a week of
receipt of the same. (Size of industry, geographical spread, domestic versus international, degree of sensitivity attached to data sharing, etc).
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 Our Credentials?

F r o s t & S u l l i v a n’ s

Industry Benchmarking

2007

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Client Reach (Global sample)

ABB Allen-Bradley Alstom

Asian Paints Supreme Industries Cello Group
APC Corp. Analog Devices Babcock & Wilcox
Cadence Design Cooper Bussman Cummins
Eaton Corporation EDS Emerson Electric
Fisher-Rosemount Fuji Electric GEC - Marconi
General Dynamics General Electric GTE
Hewlett-Packard Hitachi Honeywell
ITT Larsen & Toubro Leeson Electric
Mitsubishi Electric Motorola NEC
Omron Corporation PerkinElmer Philips
Reliance Electric Rockwell Automation Robert Bosch
Siemens Sony Toshiba
TRW Tata Special Steels Westinghouse

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Our Local Reach: Supply Chains of almost 150 Companies across industries
assessed so far… and increasing

Others
11% Pharma
Auto
5%
30%
Metals
9%

Engineering
11%

Process
Electrical
17%
17%

Others include Foods, Cement, Paper, Textiles and IT Hardware

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Sample list of Indian companies that have been through Level 1
Aditya Cement
Ador Welding Limited
Alembic Ltd
Astra Zeneca Pharma India Ltd
Audco India Ltd.
Bajaj Auto Limited
Balasore Alloys Limited
Ballarpur Industries Ltd.
Bharat Electronics Limited
Bharti Teletech Ltd
Caparo Maruti
Carborundum Universal Limited
Crompton Greaves
Delphi-TVS Diesel Systems Ltd
Dorf Ketal Chemicals (I) Pvt Ltd
Durovalves (India) Private Ltd
Elecon Engineering company ltd
Exide Industries Ltd.
Ganage Pressings Pvt. Ltd
Godrej Consumer Products Ltd
Granules India
Gujarat Alkalis and Chemicals Limited
Henkel India Ltd.
Hewlett- Packard India Sales Pvt. Ltd.
Hindustan Zinc Ltd.
India Nippon Electricals Ltd.
India Pistons Ltd
Indian Oil Corporation Limited
Indo Kopp
Indo Schottle Auto Parts Pvt Ltd
IP Rings Ltd.
ITC Limited Paperboards & Specialty Papers
J.K.Industries Ltd.
Jain Irrigation Systems Ltd.
JSW Steel Ltd.
KHS Machinery Private Limited
Kirloskar Oil Engines
Krishna Maruti Ltd.
L&T Komatsu Limited
L&T, Electrical Standard Products
Lakshmi Precision Screws Ltd.
Larsen & Toubro Limited
Lucas TVS Limited
Marico Limited
Mark Auto Industries Ltd
Menon and Menon Pvt Ltd
Minda Stoneridge Instruments Ltd
Nagarjuna Fertilizers & Chemicals Limited
Napino Auto & Electronics Ltd
Nicholas Piramal India Ltd
Orient Cement
Pricol Limited
Rajashree Cement
Rallis India ltd
Rane Madras Limited
Rane NSK Steering Systems Ltd.
Sandhar Industries
Sandhar Locking Devices (Mirror Division)
Sandhar Locking Devices Limited
Schwing Stetter (India) Private Limited
Sharadha Terry Products Ltd
Shri Govindaraja Mills Ltd
SKM Egg Products
Solectron Centum Electronics Ltd.
Sona Koyo Steering Systems Ltd
Spentex Industries Ltd.
Sterlite Industries (India) Ltd.
Sundaram Clayton Limited
Tata BP Solar India Ltd
Tata Cummins Limited
Tata Motors Limited (CVBU)
Tata Motors Limited (PCBU)
The Madras Aluminium Company Ltd
The Tata Iron & Steel Company Limited
Thirumalai Chemicals Ltd.
Timken India Ltd.
Titan Timeproducts Limited
Tudor India Limited
TVS Srichakra Limited
UCAL Fuel Systems Limited
UCAL Fuel Systems Ltd.
UNI Abex Alloy Products Ltd
United Phosphorus Ltd
Varroc Engineering Pvt. Ltd.
VIP Industries Ltd.
Wendt (India) Limited
Wipro Limited-Computer Factory
Wockhardt Ltd
Zuari Industries Ltd.
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Please benefit From The Benchmarking Movement

Thank You

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