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A tailored response to the productivity deficit. Prof Emeritus Eddie O’Kelly. The Problem. EU - GDP 33% below US 17% below Japan EU productivity lags behind US and Japan EU employment grow slower than US and Japan. The Response. Single Market Single Currency
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A tailored response to the productivity deficit Prof Emeritus Eddie O’Kelly
The Problem • EU - GDP 33% below US 17% below Japan EU productivity lags behind US and Japan EU employment grow slower than US and Japan
The Response • Single Market • Single Currency • Benchmarking for Competitiveness • The Lisbon Agenda
Why Benchmarking? • Benchmarking allows us to : • Analyse & Improve Key Business Processes • Eliminate Waste • Improve Performance • Improve Profitability & Market Share • Based on FACTS…..
Benchmarking = Diagnosis World Class = Medicine Networks = Delivery Mechanism Applied Benchmarking for Competitiveness
Ireland – Then and Now • Unemployment was 20% now <5% • 2nd biggest software exporter in the world • EU funding = 10% GDP growth in past ten years • SMEs ranked 15th in productivity • Running out of people - Now looking to be more EFFECTIVE with the people we have...
Building Capability 1 Introduction to Benchmarking 2 Quick Fix 3 Follow up Benchmarking 4 In Depth Improvements 5 Process Benchmarking 5 4 3 2 1
Benchmarking is a continuous systematic process for comparing business processes for improvement...
Objective • Compare against international database • Learn from Best Practice Examples • Prioritise Actions… for improvement
Access to largest European Databases for SMEs • Quantitative and Qualitative • Easily accessed • Rapid response • Building competitiveness for the future
Premier Division P F A Pts Manchester United 15 … 36 12 31 Blackburn 15 … 27 13 30 Arsenal 15 … 30 17 27 . . . Barnsley 15 … 12 40 13 Everton 15 … 16 23 12
SCHOOL REPORT MATHS 75% ENGLISH 68% IRISH 80% ……. Comment: Richard could focus on his English, particularly his grammar.
Stage Starting On The Way Mature B/marking Maturity of Company Top Class Diagnostic Holistic Process
Level 3 Do Understand See Level 2 Understand Do Look See Do Understand Look Level 1 See Look
JIT: • TQM: • Employee Involvement: • TPM: • WORLD CLASS DESIGN: • BPR • SUPPLIER DEVELOPMENT • MEASUREMENT SYSTEMS
CompanySectorArea of Focus • Keenans Engr Sales Team Devel. • Erin Foods Food BPR, Purchasing • Laserform • Profiling SubCEng Prod Plan.&BPR • Dies Print&Pkg Process&Team Dev • Fabrication Engr Process Dev
Company SectorArea of Focus • Burnside Autocyl Engr Cells&KanBan • Intl Meat Ingred. Food BPR& Office • Colourbooks Printing TPM • Tanco Engr Supplier Dev • PB M/cTech Engr Costing&Quoting • Mc Nally Joinery Timber Prod Plan&Layout
Summary of Key Benefits • 60% improvement in productivity • WIP down by 85% • Lead time reduced from 5 weeks to 1 week • Happier customers • Shortages from £13,000 to £1,200 / mth • Purchasing savings of £500,000 ++ • People freed to improve business processes...
World Class Networks • Companies learning with and from each other • Off-site training • On-site help with implementation • Site visits to other companies already using World Class techniques • Using a proven process of World Class tools
KEY POINTS: • Networking - 12 Companies - Cost & Resource Effective • Benchmarking Qualitative & Quantitative • Best Practice Introduction • Off-Site - Training, On-Site Interpretation