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Benchmarking
Pages 100-106

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From page 100...
... Others may need to be estimated based on limited available data. However it is accomplished, benchmarking is a critical foundation for the successful operation of a manufacturing enterprise.
From page 101...
... Profit per unit for each product type Number of employees Average sales per employee Average hourly wage of each employee Average hourly benefit cost for each employee Cash flow Equity ratio Annual volume at which the break-even point occurs . PRODUCT PERFORMANCE METRICS The performance of the product in the hands of the consumer is a key indicator of the capability of the development, production, and marketing
From page 102...
... The "appropriate response" must be determined, of course, within the context of the needs and wants of the customer. The following are some of the actions that successful enterprises have institutionalized to obtain this information: Evaluation of competing products under conditions similar to those used to test your products · Tear down analysis of competing products Reverse engineering of competing products Customer surveys of competing products From tests and evaluations of the type described above, one obtains information on the following important metrics: Part counts Material types used Material utilization in each component Processes used in production, e.g., assembly techniques Product costs Service capability, e.g., field repair versus field replacement FMEA (failure modes effects analysis)
From page 103...
... . 103 Time required to accomplish a unit process Time a product spends in a process versus nonproductive time spent In waiting and setup Buffer sizes used for each unit process Machine reliability Yield and quality of unit processes Machine utilization rate Amount of material scrap Labor hours per unit process Energy use per unit process Time required to change a process, e.g., a die change Determining these metrics for a competitor may be very difficult.
From page 104...
... DALE COMPTON . Fraction of time facilities are used Fraction of production facilities that are new or fully depreciated Extent of uniform use of all unit operations Time required to respond to a changing market demand Time required to introduce a new product or service Extent to which just-in-time methods are employed Extent to which concurrent/simultaneous engineering is practiced AGGREGATED MEASURES OF PERFORMANCE In addition to the above metrics, the successful competitor must be concerned with some aggregate characteristics of the enterprise.
From page 105...
... Some of the metrics that are useful in assessing one's capability relative to competition are Fraction of technical work force with professional degrees Fraction of technical work force with advanced degrees Fraction of technical work force regularly involved in continuing education · Level of recognition that has been afforded technical personnel by outside organizations, e.g., honors, membership on national committees, officers of professional societies, invited lectures Level of involvement of technical personnel in assessment of opportunities for new products, processes, or services
From page 106...
... have an impact on a host of other metrics, for example, process yield, product costs, use of facilities, levels of employment, material scrappage, labor hours per process, and fraction of repeat sales to customers. It is evident that care must be taken in interpreting a combined list of metrics.


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