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Feedback
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Benchmarking
the
Best Practices

Europe





Procter & Gamble Executives with 
Barry Macy on a Benchmarking the 
Best Practices trip in Europe.

Benchmarking The Best Practices

Organizational Excellence In ..1

1. Business Environment
2. Organizational Structures
3. Human Resource Systems
4. Technologies

Benchmarking The Best Practices

Organizational Excellence In ..2

5. Total Quality Management Leadership
6. Work Teams (Manufacturing and Office)
7. Innovative Pay Systems
8. EVA Results 

Sample 3

S. I. O. Manufacturing Results: 1

Quantity Results:

  • Output per Employee
  • Labor Efficiency
  • Overall Performance (Productivity: Output/Input)
  • Sales per Employee
  • Other Quantity Improvement
  • Overall Average QUANTITY Improvement

S. I. O. Manufacturing Results: 2

Product/Service Quality Results

  • Customer Returns
  • Cycle Time
  • Rejects/Defects (Internal)
  • Scrap Rate
  • Redo/Rework (Internal)
  • Customer/Service Delivery
  • Yield (Internal)
  • Other Quality Improvement
  • Overall Average PRODUCT/SERVICE QUALITY Improvement

S. I. O. Manufacturing Results: 3

Cost Improvements:

  • Manpower Hours (Reduction)
  • Repairs
  • Downtime
  • Other Cost Improvements
  • Overall Average COST Improvements

S. I. O. Manufacturing Results: 4

Behavioral Results:

  • OSHA Accidents & Injuries
  • Complaints & Grievances
  • Minor Accidents & Injuries
  • Turnover
  • Absenteeism
  • Illnesses
  • Overall Average BEHAVIORAL Improvement

S. I. O. Manufacturing Results: 5

Quality of Work Life Results:

  • Employee Involvement
  • Growth & Skill Development
  • Commitment and Trust
  • Job Satisfaction
  • Job Security
  • Overall Average QUALITY OF WORK LIFE Improvement

S.I.O. Manufacturing Results: 6
Other Indicators

  • Maintenance as a Percent of Worksite Replacement
  • Scrap Percent (of Total Production)
  • Rework Percent (of Total Production Time)
  • Internal Productivity (units/employee) at Business/Worksite
  • Sales Volume per Employee at Business/Worksite
  • Average Business/Worksite Gross Revenue Per Full-time Employee
  • Capacity Utilization Percent
  • Uptime Percent
  • Average Labor Budget (Fixed & Variable) as a Percent of Gross Business Revenue
  • Quality (Defects/Million) Red tagged
  • Average Work Order Maintenance as Percent of Replacement Capital
  • Percent Planned and Scheduled Maintenance Work (of Total Maintenance)
  • Ratio of Maintenance Planners to Mechanics
  • Cost of Implementing HPS/CI/Work Innovation as Percent of Yearly Labor Budget

Benchmarking the Best Manufacturing Practices:

  • National Sample N=102
  • Petro/Chemical Sub-Sample N=41
  • Consumer Products Sub-Sample N=39
  • Other S.I.C.’s N =22
Sample 4

Example S.I.O. Benchmark Organizations-1

Consumer Products-Non Food (N=21)

  • 3M
  • Clorox
  • James River
  • Lever Brothers
  • P & G
  • Johnson Wax
  • Weyerhauser
  • Sony

Consumer Products-Food ( N=18)

  • A.E. Staley Mfg. Co.
  • Coca Cola USA
  • Kraft General Foods
  • Miller Brewing Co.
  • Nabisco
  • Quaker Oats
  • The Dannon Company
  • Lipton Tea

Example S.I.O. Benchmark Organizations-2

Petro-Chemical (N=41)

  • Amoco Chemical
  • Bayer
  • Hercules
  • Cheveron
  • Dow Chemical
  • Eastman Chemical
  • Eastman Kodak
  • Exxon
  • Monsanto

Auto/Steel/Heavy Equip (N=9)

  • Alumax of S. Carolina
  • Alcoa
  • Bethlehem Steel
  • Delphi Packard Electric
  • Packard Electric Div of GM
  • Saturn Corp
  • Goodyear Tire and Rubber
  • Westcast Industries

Example S.I.O. Benchmark Organizations-3

Service/White-Collar (N=10)

  • Hannaford Bros.
  • James River
  • Monsanto World HQ
  • Johnson Wax
  • Syncrude Canada
  • Eastman Chemical
  • Lipton Tea
  • Union Carbide

High Tech (N=4)

  • Lucent Technologies
  • Boeing
  • U. S. Precision Lens
Sample 6
Sample 7

HIGH PERFORMANCE WORK PRACTICES

1993 % of Worksites/ Businesses (N=61)

2002 % of Worksites/ Businesses (N=102)

TOTAL SAMPLE: DEMOGRAPHICS

Age of Design/Re-design or CI Effort

6 yrs

7 yrs

  • Number of Parent Organizations

40

62

  • Number of Business/ Worksite in Benchmarking Study

61

102

  • Number of Worksites per Parent Organization

42

44

  • Parent Organizations
  • Number of Employees    

        - U.S.

          - Non U.S.

28,895

20,888

27,173

21,139

  • SBU’s per Parent Organization

N/A

16

  • Number of Products per Business

N/A

17

  • Average Business/Worksite Age (in years)

14

15.2

  • Average Age of Technology (in years)

14

15.2


Organization Demographics

*Union

*Non-Union

46%

54%

44%

56%

  • Following Industrial Classification Groups:

          - Consumer
            Products-Non Food

          - Consumer
            Products-Food

          - Petro-Chemical

          - Auto Steel

          - Service

          - High Tech

12

10

21

8

7

3

21

17

41

9

10

4

  • Percent Located in:

          - Rural Area

          - Metropolitan/ Urban
            Area

          - Suburban Area

43%

33%

25%

42%

30%

28%

  • Gender Percent

          - Male

          - Female

71%

29%

73%

27%

  • Average Labor Budget (last 3 years) at Business/Worksite

N/A

$59,634,940

  • Average Labor Budget as a Percent of Gross Business/ Worksites Revenue

N/A

12%