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 Popescu Popescu Magda 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 Data analysis started mid-August; both Data analysis started mid-August; both n reporrs released released reporrs n Report A: Report A: 40 responses (29 members/11 40 responses (29 members/11 n non-members) non-members) n Report B: Report B: 41 responses (32 members/9 41 responses (32 members/9 n non-members) non-members) n Report C: will be released in a month Report C: will be released in a month n

Improvements in 2003 Improvements in 2003 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 n

Ranking Ranking 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 n (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 Access to industry averages Access to industry averages n – Breakdown by size Breakdown by size – n Benchmarking Benchmarking n – Firm performance vis- Firm performance vis-à à-vis competition -vis competition – n Trend analysis Trend analysis n n Identification of upstream value opportunities Identification of upstream value opportunities n

New tooling costs and expenses New tooling costs and expenses 12 10 Net new tooling costs and expenses 8 6 4 2 0 -2 -4 N = 13 11 15 Large Medium Small GROUP

R & D expenses R & D expenses 1.60% 1.35% 1.40% 1.16% 1.20% 1.05% 1.00% 1.09% 1.10% Mean 1.00% 0.80% Median 0.60% 0.60% 0.40% 0.49% 0.20% 0.00% 2000 2001 2002 2003

Total manufacturing expenses Total manufacturing expenses 100 80.00% 72.00% 76.00% 68.58% 68.70% 70.00% 80 71.20% 67.30% 60.00% Total manufacturing expenses 62.90% 62.76% 50.00% 60 Mean 40.00% Median 40 30.00% 20.00% 20 10.00% 0 0.00% N = 13 11 15 Large Medium Small 2000 2001 2002 2003 GROUP

Income before interest and taxes Income before interest and taxes 30 10.00% 8.94% 9.00% 20 8.00% Income before interest and taxes 7.67% 7.17% 7.00% 5.86% 10 6.70% 6.00% Mean 5.00% Median 0 5.15% 4.00% 3.67% 3.00% -10 2.00% 2.01% 1.00% -20 0.00% N = 14 11 15 Large Medium Small 2000 2001 2002 2003 GROUP

Average raw materials inventory Average work in progress inventory 175 160 150 Average work in progress inventory 120 Average raw materials inventory 125 100 80 75 50 40 25 0 0 N = 14 8 12 N = 14 8 12 Large Medium Small Large Medium Small GROUP GROUP

Total pounds of P/M parts shipped Total pounds of P/M parts shipped 9,000,000 8,000,000 7,400,229 6,156,753 7,000,000 7,710,130 6,000,000 5,883,895 5,000,000 Mean 4,854,000 4,750,000 Median 4,000,000 4,375,350 4,000,000 3,000,000 2,000,000 1,000,000 - 2000 2001 2002 2003

Total pounds of P/M parts shipped Total pounds of P/M parts shipped per employee per employee 39,000 38,257 38,000 37,000 36,000 36,162 35,000 35,318 34,000 Median 33,000 32,667 32,000 31,000 30,000 29,000 2000 2001 2002 2003

Net sales of P/M parts Net sales of P/M parts 50,000,000 47,593,182 45,000,000 40,000,000 34,036,535 35,000,000 30,000,000 Mean 25,000,000 21,426,900 Median 20,000,000 15,438,914 $13,196,089 15,000,000 10,000,000 $12,012,950 $11,607,008 $10,500,000 5,000,000 - 2000 2001 2002 2003

Net sales of P/M parts/ employee Net sales of P/M parts/ employee 122,000 $120,000 120,000 $118,750 118,000 116,000 Median $112,797 114,000 $114,186 112,000 110,000 108,000 2000 2001 2002 2003

Net sales per square foot of P/M Net sales per square foot of P/M operations operations 700 Net sales per square foot of P/M operations 220 $216 600 215 500 $215 $206 400 210 Median 300 205 200 $203 200 100 0 N = 14 12 14 195 Large Medium Small 2000 2001 2002 2003 Group

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 100 15.00% % rate of sales growth /decline prev.yr.($) 13.84% 75 50 10.00% 7.83% 25 8.85% 3.95% 5.00% 0 Mean 4.20% 3.70% -25 Median 0.00% -50 2000 2001 2002 2003 -2.46% -75 -5.00% -100 N = 15 12 14 -6.00% Large Medium Small -10.00% Group

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 90 16.00% % rate of sales growth/decline prev. yr. (Lb) 14.95% 14.00% 60 12.00% 9.49% 10.00% Mean 30 8.00% Median 8.00% 4.84% 6.00% 0 4.00% 1.15% 0.97% 2.00% -30 0.74% 0.00% N = 15 12 14 0.00% Large Medium Small 2000 2001 2002 2003 Group

Next year Next year n Continue improvements Continue improvements n – 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 Challenges Challenges n – 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 Requested by membership at the spring Requested by membership at the spring n 2003 meeting 2003 meeting n “ “Mini Delphi Mini Delphi” ” n – Objective: Establish research priorities Objective: Establish research priorities – – Strategy: Two round survey Strategy: Two round survey – ß Open-ended w/ a constant sum scale follow-up Open-ended w/ a constant sum scale follow-up ß n New development: Sloan seed funding New development: Sloan seed funding n

Priority Areas Priority Areas 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 n

Globalization (29) Globalization (29) 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 n

Customer/Supplier Relationships Customer/Supplier Relationships (18/12) (18/12) 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 n part producers/suppliers 30 part producers/suppliers 30

IT Issues (10) IT Issues (10) 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 n

Impact of Industry Impact of Industry Consolidation (23) Consolidation (23) n Competitiveness/viability of small suppliers Competitiveness/viability of small suppliers 12 12 n n Effective opportunity recognition Effective opportunity recognition n and project selection 38 and project selection 38 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 n firms increase share 34 firms increase share 34