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Benchmarking within the automotive supplier network
From February to April 2004, the benchmarking activities of the Czech Society for Quality included the realisation of the first stage of benchmarking project for suppliers of automotive sector.
The below mentioned team (in alphabetical order) collaborated in the first stage of the project:
- Libor Friedel - Benchmarking Consultant for BenchmarkIndex
- Adrian Gundy - Representative of the Centre for Competitiveness (licence owner of BenchmarkIndex)
- Stanislav Křeček - Project Manager
- Kateřina Myšková - Administrative Support of CSQ
- Milan Trčka - Benchmarking Consultant
For the first stage of the project, the database access to benchmarking has been chosen, and the BenchmarkIndex has been used as a "tool", i.e. the database of the British DTI (Department of Trade and Industry). The database access has been provided through co-operation with the Centre for Competitiveness of Dublin. This Centre has already been a partner in a pilot project of BenchmarkIndex, which has been organised for the engineering sector by the CzechInvest and the Moravia-Silesian region.
This project has been launched by an introductory workshop proceeded in Prague on February 2, 2004, with potential interested persons. The closing workshop with participants proceeded in Prague on April 8, 2004. Information and presentations from workshops and other details on BenchmarkIndex can be found on www.benchmarking.cz.
Benchmarking through BenchmarkIndex was based on two questionnaires:
- Core Questionnaire - obligatory for all participants.
- QCD Questionnaire (Quality-Cost-Delivery) - approved for the automotive sector in Great Britain. The questionnaire comprises comparisons based on eleven production parameters.
The core questionnaire comprises 47 financial and non-financial data and assessment of opinions of criteria in accordance with EFQM Model. The result comprises comparisons of approx. 60 indices within the following areas:
The core questionnaire comprises 47 financial and non-financial data and assessment of opinions of criteria in accordance with EFQM Model. The result comprises comparisons of approx. 60 indices within the following areas:
- Profitability
- Financial management
- Productivity
- Investments
- Growth
- Customer satisfaction
- Innovation
- Suppliers
- Human resources management
- Persons satisfaction
Comparisons are held with companies' sample in accordance with the staffing levels, annual returns and Industrial Classification of Economic Activities (CZ-NACE) (or defined business activities). All participants received a feedback on comparisons with defined international companies' sample within the core questionnaire (considering the mentioned selection criterion) and with the total sample of thirty Czech companies that are still included in the BenchmarkIndex database.
The QCD questionnaire generated results within indices relevant for the production (see the table).
QUALITY - COST - DELIVERY
P - primary effect on a process
S - secondary effect on a process |
Q |
C |
D |
| At first failed |
P |
P |
P |
| Productivity |
|
P |
|
| Stock turnover |
S |
P |
P |
| Keeping the delivery terms |
S |
S |
P |
| Added value per person |
|
P |
|
| Effective use of process area |
|
P |
|
In term of summary results within individual indices, it has been possible to evaluate the companies' performance as compared
with the sample as being good (above the performance level of the upper sample quartile) or as being poor (bellow the
performance level of the lower sample quartile).
Some of main summary results are as follows:
- The weaknesses prevailed slightly (as to the number) the strengths.
- Ten of thirteen companies (77 %) have problems with absenteeism (lost day due to absenteeism per one employee).
- Nine of thirteen companies (69 %) have problems with the added value per one employee (indeed it is necessary to consider the rate of exchange of CZK and EUR).
- The invested capital against returns constitutes a weakness in 69 % of companies involved as well as the invested capital against amortisation.
- Productivity within the meaning of returns against number of employees constitutes a weakness in seven of thirteen companies (54 %). Again, it is also necessary to consider a disadvantageous rate of exchange of CZK and EUR within the comparisons. This, however, is indicative of possible improvements.
- As concerns positive actions, only more than a half of companies has been remarkable, respectively companies that can manage well with the maturity of sales invoices (they possess good abilities to manage their debtors).
- In terms of QCD indices (only eleven companies were assessed), the results seemed to be a little bit better.
An excellent performance has been demonstrated by companies in the following parameters:
At first failed - 91 % of companies providing excellent quality supplies.
Effective use of process area - excellent for 100 % of companies.
Added value per direct employee - also excellent for 100 % of companies.
Stock turnover for more than a half of companies constitutes their weaknesses.
Further to the first stage of the "Benchmarking for Automotive" project that has been realised by means of BenchmarkIndex questionnaires, the CSQ is interested in organising the second "more open" project stage through consortium benchmarking in selected processes - spheres of interest of potential participants. To prepare this stage of benchmarking, a course and a workshop are being planned. Based on discussions with participants in the closing presentation of the first project stage results this course and workshop seem to be an "intermediate stage". The participants can than decide about their participation in consortium that will prepare a study on the best practices in the selected area using their own questionnaires and realised site visits. Both the course and the workshop are therefore intended to be used by parties or persons interested in consortium study irrespective of whether they took part in the first BfA project stage.
Primarily, the area of process performance and that of the performance and development of supply chain were proposed. Whereas the CSQ access is open in this respect, it is not out of question that the selected theme will differ; namely it will comply with actual needs of potential participants and other interested parties.
Further information can be found on www.benchmarking.cz or from Miss Myšková in the CSQ. The results of both stages and the discussions on issues with benchmarking for automotive industry will form the content of discussions and presentations within the section "Benchmarking in the automotive industry". This section will take place on November 10, 2004, and will be part of the International CSQ Conference held during the European week of quality. This project will be presented within the meeting of members of the Global Benchmarking Network (GBN) whose member CSQ is.
Everything mentioned as well as another activities within the area of benchmarking (training etc.) provide contributions of CSQ to development and enhancement of benchmarking application in the Czech Republic.
Participants involved are thanked; other parties (persons) interested in benchmarking are heartily invited.
On behalf of the realisation team
Libor Friedel
CSQ member, benchmarking consultant in BfA project
Ostrava on May 12, 2004
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