EMGT 364

John Checco
Joe Dashiell

EMGT 364
28 Feb 01

BENCHMARKING
 EMGT 364

AGENDA
• References

• Benchmarking Defined

• Concept of Benchmarking

• Application in Product Development

• Legal Aspects

• Conclusion

BENCHMARKING
 EMGT 364
Application in Product Development

References
(1 of 4)

Product Design and Development

Karl T. Ulrich
Steven D. Eppinger

BENCHMARKING
 EMGT 364
Application in Product Development

References
(2 of 4)

• The Product Development Benchmarking Association

www.pdba.com

• Competitive Benchmarking Associates

www.competitiveanalysis.com

• The Benchmark Exchange

www.benchnet.com

BENCHMARKING
 EMGT 364
Application in Product Development

References
(3 of 4)

• Quirk’s Marketing Research Review

“Measuring Competitiveness”
By Michael Branham, Oct 1997

• Marketing Tools Magazine

“Measuring What Matters”
By Michael Branham, Apr 1997

BENCHMARKING
 EMGT 364
Application in Product Development

References
(4 of 4)

• Re-Engineering at Work Michael Loh

• Business Process Improvement Toolbox

Bjorn Anderson

• Global Cases in Benchmarking Robert

Camp

BENCHMARKING
 EMGT 364

Benchmarking Defined

• Judging and modifying one’s business

product, service, or process based on
standards developed from performance
measures of other selected businesses.

• Benchmarking Versus Indexing

• Same Industry Versus Different Industry

BENCHMARKING
 EMGT 364
Concept of Benchmarking

Core Components
• Measurement - Self and Partners

• Comparison - Performance, Process, Pracitces

• Learning -Introduce Ideas

• Improvement - Objective

BENCHMARKING
 EMGT 364
Concept of Benchmarking

Types of Comparisons
WHO?
• Internal - Same Orgainization
• Competitive - Competitor or Parallel Class
• Functional - Related Tasks / Technologies
• Generic - Best in Any Class

WHAT?
• Performance - Key Figures
• Process - How Performed
• Strategic - Higher Level
BENCHMARKING
 EMGT 364
Concept of Benchmarking

Benchmarking Value

Competitor

Functional

Generic
Internal
Performance M H M L
Process M L H H
Strategic L H L L

BENCHMARKING
 EMGT 364
Concept of Benchmarking

Conducting a Study

• Plan: Select Focus, Study Self

• Search: Find Benchmark Partners
• Observe: Document Partner
• Analyze: Identify Gaps and Causes
• Adapt: Implement Change

BENCHMARKING
 EMGT 364

Application in Product Development

• Generic Development Process

• Concept Development

• Case Study

• Data Sources

BENCHMARKING
 EMGT 364
Application in Product Development

Generic Development Process

• Planning

• Concept Development

• System Level Design

• Detail Design

• Testing and Refinement

• Production Ramp-Up
BENCHMARKING
 EMGT 364
Application in Product Development

Concept Development
Mission Identify Establish
Customer Apply
Statement Target
Needs Benchmarking
Specs

Generate
Product
Concepts

Select
Product
Concept

Apply Plan
Refine
Benchmarking Remaining Development
Specs
Project Plan
BENCHMARKING
 EMGT 364
Application in Product Development

Case Study
(1 of 7)

• Specialized Bicycle Components

• Establish Target Specifications

– Develop List of Metrics

– Collect Competitive Benchmark Data

– Develop Competitive Benchmarking Charts

BENCHMARKING
 EMGT 364
Application in Product Development

Case Study
(2 of 7)

Competitive Benchmarking Chart Based on Metrics

Rox Rox Gunhill
Metric ST Maniray Tahx Tahx Tonka Head
No. Need Metric Imp. Units Tritrack 2 Quadra TI 21 Pro Shox
Attenuation from
1 1,3 dropout to 3 dB 8 15 10 15 9 13
2 2,6 Spring Preload 3 N 550 760 500 710 480 680
Maximum value
3 1,3 from the Monster 5 g 3.6 3.2 3.7 3.3 3.7 3.4
Minimum descent
4 1,3 time on test track 5 s 13 11.3 12.6 11.2 13.2 11
Damping coefficient
5 4 adjustment range 3 N-s/m 0 0 0 200 0 0

BENCHMARKING
 EMGT 364
Application in Product Development

Case Study
(3 of 7)

Competitive Benchmarking Chart Based on Needs

Rox Rox Gunhill
ST Maniray Tahx Tahx Tonka Head
No. Need Imp. Tritrack 2 Quadra TI 21 Pro Shox
Reduces vibration
1 to the hands 3 * **** ** ***** ** ***
Allows easy
2 traversal 2 ** **** *** ***** *** *****
Enables high-speed
3 descents 5 * ***** ** ***** ** ***
Allows sensitivity
4 adjustment 3 * **** ** ***** ** ***
Preserves steering
5 characteristics 4 **** ** * ** ****** *

BENCHMARKING
 EMGT 364
Application in Product Development

Case Study
(4 of 7)

• Set Ideal and Marginally Acceptable Target Values

• Develop Solution Concept

Metric Marginal Ideal

No. Need Metric Imp. Units Value Value
Attenuation from
1 1,3 dropout to 3 dB >10 >15
2 2,6 Spring Preload 3 N 480-800 650-700
Maximum value
3 1,3 from the Monster 5 g <3.5 <3.2
Minimum descent
4 1,3 time on test track 5 s <13.0 <11.0
Damping coefficient
5 4 adjustment range 3 N-s/m 0 >200

BENCHMARKING
 EMGT 364
Application in Product Development

Case Study
(5 of 7)

• Refining the Specifications

– Develop Technical Models of the Product

– Develop a Cost Model of the Product

– Refine the Specifications, Making Trade-offs

Where Necessary

BENCHMARKING
 EMGT 364
Application in Product Development

Case Study
(6 of 7)

Competitive Map

120
Estimated Mfc. Cost ($)

110 Maniray
100 Rox Tahx Ti
90 Gunhill
80 Marginal Values Rox Tahx Q
70 Tonka Pro
60 Ideal ST Tritrack
Values
50
3 3.2 3.4 3.6 3.8
Score on Monster (g's)

BENCHMARKING
 EMGT 364
Application in Product Development

Case Study
(7 of 7)

The Refined Specifications

Metric
No. Metric Units Value
Attenuation from
1 dropout to dB >12
2 Spring Preload N 600-650
Maximum value
3 from the Monster g <3.4
Minimum descent
4 time on test track s <11.5
Damping coefficient
5 adjustment range N-s/m >100
BENCHMARKING
 EMGT 364
Application in Product Development

Data Sources

• Time Investment

• Purchasing

• Competitors Catalogs and Supporting

Literature

• Outside Firms

BENCHMARKING
 EMGT 364
Concept of Benchmarking

Ethical and Legal Aspects

• Treat Partners Fairly
• Refrain from Questionable Activity
• International Considerations
• Avoid Competitors for
 Pricing

 Marketing

 Production Capacity

 Product Standards

 Sensitive Information

BENCHMARKING
 EMGT 364

Conclusion

Benchmarking is the practice of being humble

enough to admit that someone else is better at

something, and being wise enough to learn how

to match them and even surpass them at it.

(APQC, 1993)

BENCHMARKING