PMPA/MPI Statistics and PMPA/MPI Statistics and Benchmarking - - PowerPoint PPT Presentation

PMPA/MPI Statistics and PMPA/MPI Statistics and Benchmarking Project Benchmarking Project

Magda Magda Popescu Popescu Jasvinder Awla Jasvinder Awla Chickery J. Kasouf Chickery J. Kasouf

Cowboy up! Cowboy up!

Year 4 of the Project Year 4 of the Project

n n Data analysis started mid-August; both

Data analysis started mid-August; both reporrs reporrs released released

n n Report A:

Report A: 40 responses (29 members/11 40 responses (29 members/11 non-members) non-members)

n n Report B:

Report B: 41 responses (32 members/9 41 responses (32 members/9 non-members) non-members)

n n Report C: will be released in a month

Report C: will be released in a month

Improvements in 2003 Improvements in 2003

n n MUCHG faster process

MUCHG faster process

n n Summary benchmarking page

Summary benchmarking page

n n Color

Color

n n Four year trend

Four year trend

n n Ranking within group

Ranking within group

n n Cleaner data

Cleaner data

Ranking Ranking

n n Each company ranked in the industry

Each company ranked in the industry

n n Responses ranked from the highest

Responses ranked from the highest (highest value = 1) to the lowest value, (highest value = 1) to the lowest value, with ties being assigned the lower value with ties being assigned the lower value

Value for the industry Value for the industry

n n Access to industry averages

Access to industry averages

– – Breakdown by size Breakdown by size

n n Benchmarking

Benchmarking

– – Firm performance vis- Firm performance vis-à à-vis competition

• vis competition

n n Trend analysis

Trend analysis

n n Identification of upstream value opportunities

Identification of upstream value opportunities

New tooling costs and expenses New tooling costs and expenses

15 11 13 N =

GROUP

Small Medium Large

Net new tooling costs and expenses

12 10 8 6 4 2

• 2
• 4

R & D expenses R & D expenses

1.05% 1.16% 1.35% 1.09% 1.10% 0.49% 0.60% 1.00%

0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 2000 2001 2002 2003 Mean Median

Total manufacturing expenses Total manufacturing expenses

GROUP

Small Medium Large

Total manufacturing expenses

100 80 60 40 20

62.76% 67.30% 71.20% 62.90% 68.70% 76.00% 72.00% 68.58%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 2000 2001 2002 2003 Mean Median

Income before interest and taxes Income before interest and taxes

GROUP

Small Medium Large

Income before interest and taxes

30 20 10

• 10
• 20

3.67% 5.86% 7.17% 8.94% 5.15% 6.70% 7.67% 2.01%

0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 2000 2001 2002 2003 Mean Median

12 8 14 N =

GROUP

Small Medium Large

Average raw materials inventory

175 150 125 100 75 50 25

12 8 14 N =

GROUP

Small Medium Large

Average work in progress inventory

160 120 80 40

Average raw materials inventory Average work in progress inventory

Total pounds of P/M parts shipped Total pounds of P/M parts shipped

5,883,895 7,710,130 6,156,753 7,400,229 4,750,000 4,375,350 4,000,000 4,854,000

• 1,000,000

2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 2000 2001 2002 2003 Mean Median

Total pounds of P/M parts shipped Total pounds of P/M parts shipped per employee per employee

32,667 35,318 38,257 36,162 29,000 30,000 31,000 32,000 33,000 34,000 35,000 36,000 37,000 38,000 39,000 2000 2001 2002 2003 Median

Net sales of P/M parts Net sales of P/M parts

47,593,182 34,036,535 21,426,900 15,438,914 $10,500,000 $11,607,008 $12,012,950 $13,196,089

• 5,000,000

10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 50,000,000 2000 2001 2002 2003 Mean Median

Net sales of P/M parts/ employee Net sales of P/M parts/ employee

$114,186 $120,000 $118,750 $112,797

108,000 110,000 112,000 114,000 116,000 118,000 120,000 122,000 2000 2001 2002 2003 Median

Net sales per square foot of P/M Net sales per square foot of P/M

• perations
• perations

$203 $215 $206 $216 195 200 205 210 215 220 2000 2001 2002 2003 Median

Group

Small Medium Large

Net sales per square foot of P/M operations

700 600 500 400 300 200 100

The percentage rate of sales growth or The percentage rate of sales growth or decline from previous year in dollars decline from previous year in dollars

Group

Small Medium Large

% rate of sales growth /decline prev.yr.($)

100 75 50 25

• 25
• 50
• 75
• 100

13.84% 3.70%

• 2.46%

7.83% 3.95%

• 6.00%

8.85% 4.20%

• 10.00%
• 5.00%

0.00% 5.00% 10.00% 15.00%

2000 2001 2002 2003

Mean Median

The percentage rate of sales growth or The percentage rate of sales growth or decline from the previous year in pounds decline from the previous year in pounds

Group

Small Medium Large

% rate of sales growth/decline prev. yr. (Lb)

90 60 30

• 30

0.74% 0.97% 9.49% 14.95% 0.00% 8.00% 1.15% 4.84% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 2000 2001 2002 2003 Mean Median

Next year Next year

n n Continue improvements

Continue improvements

– – TOC and TOC and pagenation pagenation – – Rankings (should all be high to low)? Rankings (should all be high to low)? – – Electronic transmission Electronic transmission

n n Challenges

Challenges

– – Data quality Data quality – – Early Fall Management Meeting Early Fall Management Meeting

Research Priorities Research Priorities

Diran Apelian Diran Apelian Chickery Kasouf Chickery Kasouf

Research Prioritization Research Prioritization

n n Requested by membership at the spring

Requested by membership at the spring 2003 meeting 2003 meeting

n n “

“Mini Delphi Mini Delphi” ”

– – Objective: Establish research priorities Objective: Establish research priorities – – Strategy: Two round survey Strategy: Two round survey

ß ß Open-ended w/ a constant sum scale follow-up Open-ended w/ a constant sum scale follow-up

n n New development: Sloan seed funding

New development: Sloan seed funding

Priority Areas Priority Areas

n n Globalization

Globalization 29 29

n n Customer relationships

Customer relationships 18 18

n n Upstream supply relationships

Upstream supply relationships 12 12

n n IT impact

IT impact 10 10

n n Effects of consolidation

Effects of consolidation 23 23

Globalization (29) Globalization (29)

n n Market entry

Market entry 24 24

n n Managing partnerships

Managing partnerships 19 19

n n Protecting technology

Protecting technology 18 18

n n Changes in home markets

Changes in home markets 30 30

n n Differences in buying criteria

Differences in buying criteria10 10

Customer/Supplier Relationships Customer/Supplier Relationships (18/12) (18/12)

n n Project selection/termination

Project selection/termination29 29

n n Resource allocation

Resource allocation 25 25

n n Upstream relationships

Upstream relationships w/ w/ intl intl 12 12

n n Effective communication btw

Effective communication btw part producers/suppliers part producers/suppliers 30 30

IT Issues (10) IT Issues (10)

n n Managing reverse auctions

Managing reverse auctions 29 29

n n Managing intranets

Managing intranets 18 18

n n Managing extranets

Managing extranets 16 16

n n Managing ERP systems

Managing ERP systems 14 14

n n Managing corporate web sites

Managing corporate web sites 19 19

Impact of Industry Impact of Industry Consolidation (23) Consolidation (23)

n n Competitiveness/viability of small suppliers

Competitiveness/viability of small suppliers 12 12

n n Effective opportunity recognition

Effective opportunity recognition and project selection and project selection 38 38

n n Entrepreneurship in P/M parts industry

Entrepreneurship in P/M parts industry 14 14

n n Changes in customer expectations as large

Changes in customer expectations as large firms increase share firms increase share 34 34