Process benchmarking: a new tool to improve the performance of overhead areas

Abstract

PurposeThis paper aims to present an empirically developed and tested process to address the limitations in the literature on the lack of appropriate performance measures and benchmarks for recording activity and sub‐process related cost. The process presented integrates performance measures, process cost accounting tools and benchmarking.Design/methodology/approachA special type of research methodology called innovative action research is utilized to develop and test the new process benchmarking tool.FindingsThe new tool provides information not only about costs, but also about the following non‐financial indicators: process volumes, process‐related time (cycle times), and used capacity/resources of processes. Also, the tool can be used in a very economical way.Research limitations/implicationsThe findings of the study are limited to the German mechanical engineering industry. Further research is needed for generalization of the proposed model.Practical implicationsAlthough, the mechanical engineering industry is used to demonstrate the proposed framework, it can be applied to other industries with a little modification.Originality/valueA new, effective and efficient tool for cost reduction and performance improvement is developed and empirically tested.

An analytic hierarchy process for benchmarking of automobile car service industry in Indian context

“…It can be used to identify what type of management practices is advisable to apply in individual firm to achieve desired concert goals. In order to compete today's environment, many organizations have recognized benchmarking as strategic important for improved performance and commitment to achieve competitive advantage (Gleich et al, 2008). There are many studies that investigated the method about performance evaluation (Singh & Grover 2015a;2015b;Gleich et al, 2008;Wynn-Williams, 2005).…”

“…In order to compete today's environment, many organizations have recognized benchmarking as strategic important for improved performance and commitment to achieve competitive advantage (Gleich et al, 2008). There are many studies that investigated the method about performance evaluation (Singh & Grover 2015a;2015b;Gleich et al, 2008;Wynn-Williams, 2005). It is essential for the application of performance measurement that a company's tangible and intangible targets are defined in a way that is more appropriate to the requirements.…”

A performance evaluation model by integrating fuzzy AHP and fuzzy TOPSIS methods

“…In order to compete in today's competitive environment, many organizations have recognized benchmarking as being of strategic important in the drive for better performance and commitment to achieve a competitive advantage (Gleich, Motwani, & Wald, 2008;Neely, Gregory, & Platts, 1995). There are many studies that investigated the method about performance evaluation (Chalasani & Sounderpandian, 2004;Gleich et al, 2008;Maiga & Jacobs, 2004;Wynn-Williams, 2005).…”

“…There are many studies that investigated the method about performance evaluation (Chalasani & Sounderpandian, 2004;Gleich et al, 2008;Maiga & Jacobs, 2004;Wynn-Williams, 2005). Some literatures identified the different key performance indicators, including tangible and intangible aspect (Chin, Pun, Lau, & Lau, 2001;Himes, 2007;Jones & Kaluarachchi, 2008;Mukherjee, Nath, & Pal, 2002;Robson & Prabhu, 2001;Wainwright, Green, Mitchell, & Yarrow, 2005;Welch & Mann, 2001).…”

Production and Productivity Improvement Through Efficiency Sugar Mill.

“…Sugar mill performance measurement is defined as the quantify the efficiency and effectiveness process from an action [17], [18], [19]. Performance measurement system using benchmarking approach, it can be used to improve the performance in various areas [20]. Benchmarking is a process for measuring the best company performance in its class and using analysis to meet and exceed the company.…”