results of pilot benchmark study
DESCRIPTION
Results of pilot benchmark study. Anfried Sauerborn/René Colin. EAQG Metrics WGt. April 2008. Content. KPI’s overview Proposed indicators Customer service indicators Production factors indicators Pilot Study results. Based on the work done by Anfried Sauerborn. KPIs overview. - PowerPoint PPT PresentationTRANSCRIPT
Results of pilot benchmark study
Anfried Sauerborn/René Colin
EAQG Metrics WGt April 2008
2
Content
1. KPI’s overview
2. Proposed indicators1. Customer service indicators
2. Production factors indicators
3. Pilot Study results
Based on the work done by Anfried Sauerborn
3
KPIs overview
Among its duties, Space will provide for benchmarking services, with two objectives :
• Allow sub-tier suppliers to self-assess their level of performance through a benchmark study
• Provide a yearly global assessment of the industrial performance of the Supply Chain.
The purpose of this presentation is to define the indicators that will be used to support this service.
Purpose of the KPI’s
4
KPIs overview
• Improve the efficiency of the European civil aeronautical supply chain
The indicators must reflect these objectives- with a number of 10 maximum
Objectives of SPACE
5
KPIs overview
What is the efficiency of a supply chain?
Efficiency =output
input
More output with less input!
Customer view
Resources
6
KPIs overview
What to measure in terms of output for a supply chain?
Customer service
OUTPUT INDICATOR
Product Quality Customer returns
Deliveries quality Customer delivery achievements
7
KPIs overview
What to measure in terms of input for a supply chain?
Production efficiency
INPUT INDICATOR
Manpower Added value per employee
Turnover per employee
Materials Cost of waste (scraps, reworks)
Suppliers under evaluation
Inventory investment Inventory turns
Floor space Floor space utilization
8
Pilot study results
• The pilot study was conducted in Febr/March 08• 45 companies invited:
– Randomly selected– Electric/mechanics activities– Across Europe
• 11 answers (25%, achieved with a lot of interventions/reminders) (In automotive, the return is 45-60%, there were a lot of interventions needed to achieve this result)
9
Pilot study results:
Customer returns:Customer returns
All activities
Average 2007
1
10
100
1000
10000
100000
1000000
5 6 7 11 10 1 4 8
ppm
Industrial Performance2007/2006
Average 2006* : 7264 Average 2007* : 3855
Evolution 07/06 : J
Total number of answers : 8 sites
Customer Returns:
Unit: p.p.m. (Parts Per Million)
Definition: total quantity of unacceptable products rejected by the customers during the last three months and acknowledged as such by the Supplier, divided by the total quantity of components delivered to all customers during the same period, multiplied by 1 million.
Average 2005* : 604
Average 2006* : 542
Evolution 06 / 05 :
*Constant Perimetre : 146 sitesTotal Number of answers : 161 sites
Automotive:
10
Pilot study results:
Customer delivery achievements:
Customer Delivery Achievement:
Unit : % - percentage
Definition : total quantities delivered on-time* during the last three months, in acceptable quality, divided by total number of “lines of order” supplied during the same period, multiplied by 100.
On-time = +2 days to -7 days of the due date.
Automotive:
Customer Delivery AchievementAll activities
Average 2007
50
60
70
80
90
100
10 2 1 8 9 11 4 7 6
%
Industrial Performance2007/2006
Average 2006* : 77Average 2007* : 83Evolution 07/06 : J
Total number of answers : 9 sites
2006 2007 Deterioration Improvement2007 2006
Average 2005* : 93,2
Average 2006* : 93,3
Evolution 06 / 05 :
*Constant Perimeter : 142 sitesTotal number of anwers : 159 sites
11
Pilot study results:
Added Value per employee:
Added Value per Employee:
Unit : K€/person
Definition : sales value of all products manufactured excluding trading, less cost of raw materials, purchase of components and overheads for the year, divided by the total number of employees including interim and temporary hired people.
Automotive:
Added value per employeeAll activities
Average 2007
0
50
100
150
200
250
300
10 8 4 1 9 6 5 11 7
K€/empl
Industrial Performance2007/2006
Average 2006* : 108Average 2007* : 97
Evolution 07/06 : L
Total number of answers : 9 sites
2006 2007 Deterioration Improvement2007 2006
Average 2005* : 61
Average 2006* : 60,8
Evolution 06 / 05 :
*Constant Perimeter : 126 sitesTotal number of answers: 145 sites
12
Pilot study results:
Turnover per employee:
Turnover per Employee:
Unit : K€/person
Definition: sales value of all products manufactured excluding trading, divided by the total number of employees, including interim and temporary hired people.
Automotive:
Turnover per employeeAll activities
Average 2007
0
100
200
300
400
500
600
7 3 10 2 4 8 1 5 6 9 11
K€/empl
Industrial Performance2007/2006
Average 2006* : 217Average 2007* : 152
Evolution 07/06 : L
Total number of answers : 11 sites
2006 2007 Deterioration Improvement2007 2006
Average 2005* : 169
Average 2006* : 164
Evolution 06 / 05 :
*Constant Perimeter : 155 sitesTotal number of answers : 174 sites
13
Pilot study results:
Cost of waste:
Cost of Waste, Scraps & Reworks:
Unit : % - percentage of Turnover
Definition: total annual costs of internal waste, scrap & internal rework divided by the total annual cost of goods sold, excluding trading, and multiplied by 100.
Automotive:
Cost of Waste, scraps and reworksAll activities
Average 2007
0
1
2
3
4
5
6
7
8
9
10
8 5 1 6 11 7 10 9
% TO
Industrial Performance2007/2006
Average 2006* : 1,76Average 2007* : 1,82
Evolution 07/06 : L
Total number of answers : 8 sites
2006 2007 Improvement Deterioration2007 2006
Average 2005* : 2,1
Average 2006* : 1,9
Evolution 06 / 05 :
*Constant Perimeter : 146 sitesTotal number of answers : 166 sites
14
Pilot study results:
Supplier under evaluation:
Suppliers under evaluation :
Unit : % - percentage
Definition : Number of suppliers under evaluation* divided by total number of suppliers.
* OTD and/or quality achievement of their own suppliers
Suppliers under evaluationAll activities
Average 2007
0
10
20
30
40
50
60
70
80
90
100
9 6 11 10 7 8 1
%
2006 2007 Deterioration Improvement2007 2006
Average 2006* : 25,50Average 2007* : 26
Evolution 07/06 : J
Total number of answers : 7 sites
Automotive: no information
15
Pilot study results:
Inventory turns:
Inventory Turns:
Unit: number
Definition : Annual cost of goods sold divided by the appropriate value of total inventory (raw materials, work in-progress and finished goods). This indicator should be calculated on a calendar year basis i.e. from 1st January to 31st December. All products owned or controlled should be taken into account even if they are not physically located on-site e.g. consignment stocks held at customers.
Automotive:
Inventory turnsAll activities
Average 2007
0
10
20
30
40
50
11 8 10 7 9 5 6
Number
Industrial Performance2007/2006
Average 2006* : 9,91Average 2007* : 13,78
Evolution 07/06 : L
Total number of answers : 7 sites
2006 2007 Improvement Deterioration2007 2006
Average 2005* : 20,7
Average 2006* : 20,3
Evolution 06 / 05 :
*Constant Perimeter: 142 sitesTotal number of answers : 157 sites
16
Pilot study results:
Space Utilisation:
Space Utilization:
Unit : K€/m²
Definition: Annual cost of goods sold divided by the total production floor space including all storages and production offices areas, but excluding specialist R&D facilities. period,
Automotive:
Space UtilizationAll activities
Average 2007
0
1
2
3
4
5
6
7
8
9
10
11
12
10 2 4 9 7 5 11 6 8
K€/m²
Industrial Performance 2007/2006
Average 2006* : 4,63Average 2007* : 4,39
Evolution 07/06 : L
Total number of answers : 9 sites
2006 2007 Deterioration Improvement2007 2006
Average 2005* : 3,4
Average 2006* : 3,4
Evolution 06 / 05 :
*Constant Perimeter : 141 sitesTotal number of answers : 161 sites