Art Of Benchmarking

Questions to ask

Typical pitfalls

POBOSTM approach

Are definitions of data input clear?

Are definitions of data input clear? “Number of products” can be a brand family, a formulation, or an SKU All data input fields have a pop-up with a definition and examples. Pitfalls are discussed 1 on 1, based on an instruction manual. Input is checked for consistency before further analyses are made through a software and our analysts

Are definitions of KPIs clear?

Are definitions of KPIs clear? Forecast accuracy defined: “actual orders received compared to the annual sales forecasts.” A specification of the time horizon (e.g., 1 or 3 months) and the aggregation level (by SKU, SDU) is missing All KPIs are clearly defined with all necessary details to allow for a correct interpretation

Are KPIs harmonized across companies?

Are KPIs harmonized across companies? Maximum machine output (basis for OEE) does not specify total days per year (340, 350, 365?) or the maximum run speed validated For KPIs where every company has its own definition (e.g., OEE), POBOS™ collects raw data and not the KPI and provides the KPI based on a common definition

How is complexity considered?

How is complexity considered?

 

Output unit is just counted (e.g., number of tablets). However, the effort to make an uncoated tablet is half of that of a capsule Major complexity drivers are considered, i.e., technology, batch size, depth of value chain, factor costs, and size of portfolio

Are questions leading to a clear “so what?”

Are questions leading to a clear “so what?” “On-time delivery is our philosophy” or “our employees strive to keep our plant neat and clean.” No pharma company will answer “no” to these statements POBOS™ is designed starting with the key distinguishing value drivers. The questions are then derived from this and tested with clients. All irrelevant questions have been eliminated

Are participants able to give objective answers?

Are participants able to give objective answers? “Our company is situated at the leading edge of new technology in our industry.” Participants do not have the transparency and oversight to answer this question, which is why they participate in a benchmarking Ask only for facts, not opinions based on self-assessments

Is there a clear link between a low KPI score and low performance?

Is there a clear link between a low KPI score and low performance? Headcount ratio between direct and indirect labor (or similar ratios) are the same for a company that is very productive in both and one that is very unproductive in both areas; other example is “number of suggestions for improvement per employee” – what is the size, speed, sustainability per idea? Headcount ratios are not considered. POBOS™ uses performance models based on proprietary empirical research

Is the impact of performance gaps on the overall performance clear?

Is the impact of performance gaps on the overall performance clear? KPIs are not placed in a KPI tree that links individual performance gaps with overall gap Clear link of top management and shop-floor KPIs, e.g., plant unit cost is broken down by area overall gap

Is benchmark focused on “what” can be improved or “how” it can be improved?

Is benchmark focused on “what” can be improved or “how” it can be improved? “Total productive maintenance system in place” – the tool is only a very small part of what matters to improve. Especially performance management and mindset are critical Focus on the “what” only in the data exercise. Site diagnostics, cross-site visits, roundtables, and other offered through POBOS™