Despite the importance of being able to compare your company’s performance against the “best practices” of similar companies in your industry segment, you are likely to find such comparisons difficult to make.
To help companies like yours establish and sustain a culture of continuous improvement, Missouri Enterprise uses a sophisticated benchmarking system that includes comparisons to a large national manufacturing company database.
Make Comparisons In Nine Critical Areas
The national manufacturing database that is an integral part of the Missouri Enterprise benchmarking system is divided into nine major sections: Personnel, Plant, Operational, Lead Times, Costs, Inventory, Response to Customer Demand, Environmental Management and Quality Systems.
Using the Benchmarking System
Using this sophisticated benchmarking system is easier than you might think. After your Missouri Enterprise project manager does an initial assessment and introduces you to the system, you will be asked to gather data in the nine sections and complete a detailed questionnaire. The more thoroughly and accurately you are able to complete the questionnaire, the better the results. All information provided is completely confidential and will not be shared.
Each of these nine major sections addresses a variety of specific and tightly focused areas. Here are examples of data that you will be asked to collect in each area.
- Personnel – Average hourly pay rate, annual employee turnover and total number employed.
- Plant – Total square footage and days/hours of operation.
- Operational – Average number of hours (per year) a typical machine is available for use, critical resources for meeting production schedules and scrap and rework rate.
- Lead Times – Current lead times for customer service, design, scheduling and manufacturing.
- Costs – Utilities, direct and indirect labor, cost of goods sold and average monthly receivables.
- Inventory – Average amount invested in raw materials, work in process and finished goods.
- Response to Customer Demand – Percentage of production made to stock and made to order.
- Environmental Management – Disposal costs, emission controls and recycling efforts.
- Quality Systems – Status of ISO 9001:2000, AS9100 and Six Sigma.
Getting the Results
The information from your completed questionnaire will be entered into a computer program that runs the comparison in all of the key areas of the nine major sections. In a very short time, you will receive a detailed report that will present an accurate picture of your performance and specific areas where your operations can be most easily improved to impact your bottom line.
This report will show you how you are doing compared to your peers in these categories.
- Operating Margins
- Inventory Turns
- Days Receivables
- Scrap and Rework
- Utility Expenses
- Annual Employee Turnover
- On Time Delivery
- Premium Freight
You can use this information internally or work with Missouri Enterprise experts to develop and implement process improvements to address areas of concern. Missouri companies using the benchmarking system have found a number of areas where they can realize significant improvement. Some of these include scrap and rework, accounts receivable, employee communications and utilization of plant floor space.
The Cost of Benchmarking
The cost of using this system can vary, depending on a number of factors. Your Missouri Enterprise Area Business Manager will evaluate your company’s individual situation and present a no obligation proposal and cost quotation.