General Questions
Why should I benchmark?
Benchmarking is an important tool in measuring and improving your company’s performance. This repeatable process enables you to identify your performance gaps and target the improvement areas that will provide the most benefit and ROI.
How much time will it take and what types of resources will we need?
The entire benchmarking process from project kick-off to interpreting results readout is typically completed in 6-10 weeks. It takes about 40 “man hours” to complete the questionnaires, spread out across 4-8 functional departments. The process is minimally invasive and is not meant to take away resources that are already assigned for higher priority projects.
Typically, an experienced manager would contribute most of the time, and a skilled financial analyst would execute the balance. A dedicated PMG Analyst will be available via phone and email throughout the data collection process to answer any questions related to metric definitions and calculations.
Will I know who I am being compared against in my benchmark reports?
YES! Typically participants choose to add one or more “custom population(s)” to compare their performance against. This allows participants to see the names of companies that are included in the benchmark population. Currently, there are over 750 companies in PMG’s Supply Chain Benchmarking database and over 75 companies in PMG’s Product Innovation Benchmarking database, with additional companies being added on a continuous basis.
Additionally, the “Create a Benchmark” feature allows you to customize your reports based on the criteria that you choose (revenue, industry, etc.).
How is data confidentiality ensured?
The Performance Measurement Group, LLC (PMG) employs the same rigorous confidentiality standards that made PRTM the leader in benchmarking for over 10 years. No company-specific performance data will ever be divulged, and participants are only able to access aggregate data. Both the data entry and reporting sites employ password-protected registration so that only authorized users can access data.
PMG is using the latest in encrypted Internet technology that provides additional security to ensure the highest level of protection against unauthorized access to your data exchange across the Internet. Our data entry system utilizes Windows 2003 64-bit Server security and VeriSign Extended Validation SSL custom security protocols. Security is achieved by encrypting the information being transmitted across the Internet. Encryption is a means of scrambling information for transmission between your computer and PMG. Information that is encrypted at one end is decrypted (decoded) upon receipt at the other end. The level of encryption is described by the number of bits—the greater the number, the stronger the encryption. PMG uses 128 bit encryption, the highest level of encryption publicly available. This is the same standard that web-based companies routinely use when requesting credit card numbers and other sensitive materials over the Internet.
What do I receive?
Participants typically receive the following:
- Kick-off meeting via teleconference
- Data collection support
- One custom benchmark population
- Executive Interviews (on-site)
- Interpretation of results and suggestion on improvement initiatives (on-site)
- Performance Scorecards (quantitative and qualitative) and Data Tables
- Access to PMG database
Supply Chain Benchmarking Questions
We have multiple supply chains…..should we benchmark each individually or simply submit one survey that captures data for all areas of the company in a rolled-up fashion?
Each supply chain should be benchmarked individually. For example, if you have a consumables and equipment business, then we would recommend benchmarking each separately and against different populations. A full organization response can be easier to execute, and the comparative statistics will allow managers to highlight general issues, but the results will not be actionable.
What metrics will be used?
We have developed industry averages and best-in-class statistics in the areas of Plan, Source, Make, and Deliver. Target metrics are based on the Supply-Chain Operations Reference-model (SCOR®), developed by PRTM and adopted by the Supply Chain Council. Click here for a partial list of metrics.
Product Innovation Benchmarking Questions
How many product lines should we benchmark, and can we simply submit one survey that captures data for all areas of the company in a rolled-up fashion?
PMG recommends submitting data by product line. Responses at the product line level, while requiring additional effort, provide more granular information and can therefore be used to pinpoint specific tactical issues. This also allows participants to compare product development performance and practices of product lines against one another.
What metrics will be used?
Metrics are based on our parent company, PRTM’s, Product and Cycle-time Excellence (PACE®) model which was developed to help companies gauge their "stage of process capability." This model has been correlated to product development performance:Click here for a partial list of metrics.