Benchmarks for Excellence in Manufacturing Operations

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"Benchmarks for Excellence in Manufacturing Operations"

Study Overview
Government regulations and cost pressures are forcing many companies across industries to evaluate and refine manufacturing processes. In this quest to do more and better with less, companies look for benchmarks to gauge their own progress and set appropriate goals. Benchmarks become answers to common questions, such as: how many of "product x" do competitors produce, and with what resources and strategy and at what costs? This research will benefit manufacturing leaders who are responsible for sourcing, production, distribution and delivery.

Key Metrics
This data-rich presentation covers production, sourcing and distribution/delivery across a range of manufacturing functions for 16 products at 15 companies. A unique aspect of the study is its segmented comparison of FDA-regulated versus non-FDA-regulated companies for the following metrics:

• First pass yield rates
• Final yield rates
• Extent of automation
• Equipment effectiveness scores
• Change in production cycle time
• Number of inventory turns
• Average lead time for delivery
• Average and top quartile perfect order scores
• % of workforce that is direct labor
• # of base products manufactured
• # of stock keeping units per product manufactured
• % of participation in self-directed work teams
• % of base product materials by lead time for receipt at plants
• Methods of ordering base product materials
• Sourcing origin for key product

Other cost metrics in this presentation include: overhead cost and cost as a % of total sales.

Also featured are strategies used that had the greatest impact on the company over the past three years with the greatest perceived potential impact over the next three years.

Key Findings
One key finding is that a majority of the benchmark class companies realized production cost reductions of up to 5% between 2003-03 and 2003-04. The FDA segment experienced fewer cost reductions compared to the rest of the benchmark class. By contrast, the FDA-regulated segment achieved lower costs for facilities and distribution (as a % of total sales) compared to the benchmark class.

Methodology
This research originated from Best Practices, LLC's Business Excellence Board and its Research and Consulting services.

Industries Profiled:
Distribution; Manufacturing; Aerospace; Chemical; Pharmaceutical; Automobile; Transportation; Medical Device; Health Care


Companies Profiled:
Access Business Group; Nordic Ware; AVCORP; RALLIS; Cardinal Health; RECKITT BENCKISER; Dana Corporation; Tuff Toro; Draeger Medical; Sunny Fresh; Festo Controls; LifeScan; Medrad; Medtronic; Pactiv

Cover Page	Participating Companies
Study Overview

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