Title: Improving efficiency through internal benchmarking
Author: Sebastian M. Durst, Mario Binder
Competence Center Operations Strategy, Roland Berger Strategy Consultants, Loffelstr. 44, 70597 Stuttgart, Germany.
Operations and Information Management Group, Aston Business School, Aston University, Birmingham B4 7ET, UK
Abstract: This paper gives an account of a real in-depth case study showing the successful application of internal benchmarking to a complex industrial environment. It focuses on improving the efficiency of the 'Distribution Logistics' process of a multinational cable manufacturer spanning three production sites in three European countries. Challenges addressed in this paper are how internal benchmarking was applied as a structured and systematic approach for improving a business process based on its productivity and its cost. Special attention is paid to the development of an inclusive and a consistent efficiency measurement system for the 'Distribution Logistics' process of the company. In the end, challenges and success factors for applying benchmarking projects to a complex business environment are presented by the authors to guide the potential 'benchmarker'.
Keywords: internal benchmarking; efficiency measurement system; performance metrics; distribution logistics; case study; multinational corporation; cable manufacturing; business process improvement; cost; productivity; success factors; Germany; Poland; Hungary.
Int. J. of Business Performance Management, 2006 Vol.8, No.4, pp.290 - 306
Available online: 02 May 2006