ame/apqc benchmarking cop virtual networking event ...€¦ · benchmarking presentation...
TRANSCRIPT
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AME/APQC Benchmarking CoP Virtual Networking Event February 19, 2013
Real-Time Case Studies on Benchmarking
Ron Webb, AME/APQC Benchmarking CoP Travis Colton, APQC Don Davies, General Dynamics John Mellin, GlaxoSmithKline
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2 ©2013 APQC. ALL RIGHTS RESERVED.
Housekeeping All lines are muted.
You can submit questions/comments at any time. We will address all questions during the Q&A session at the end of today’s presentation.
Links to the recording and slides will be made available to all attendees via e-mail.
Follow-up survey to provide more feedback.
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AME/APQC Benchmarking CoP Virtual Networking Event February 19, 2013
Real-Time Case Studies on Benchmarking
Ron Webb, AME/APQC Benchmarking CoP Travis Colton, APQC Don Davies, General Dynamics (pre-recorded) John Mellin, GlaxoSmithKline (pre-recorded)
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4 ©2013 APQC. ALL RIGHTS RESERVED.
Session Agenda 10:00 a.m. Welcome/Housekeeping
10:05 CoP Business
10:10 Benchmarking Presentation
10:45 Open Q&A
11:00 Adjourn
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5 ©2013 APQC. ALL RIGHTS RESERVED.
2013 Benchmarking CoP Calendar
Send your topic or presenter recommendations via the Q&A tab or email at [email protected].
Month Date Session Presenter
February 2/19/2013 Real-Time Case Studies in Benchmarking
Travis Colton, APQC Don Davies, General Dynamics John Mellin, GlaxoSmithKline
March 3/19/2013 Why Organizations Misbehave: Looking Beyond Lean Tools UL
April 4/15/2013 AME Spring Conference (San Antonio, Texas) TBD
April 4/30/2013 APQC Knowledge Management Conference (Houston, Texas)
May 5/21/2013
June 6/18/2013 July 7/16/2013
August 8/20/2013 September 9/17/2013 October 10/21/2013 AME Annual Conference (Toronto)
October 10/24/2013 APQC Process Conference (Houston, Texas)
November 11/19/2013 Continuous Improvement and Knowledge Management at Eaton Eaton
December 12/17/2013
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6 ©2013 APQC. ALL RIGHTS RESERVED.
AME Events (www.ame.org)
02/27 - 02/28 Salt Lake City, Utah Cost Effectively Produce One Item at a Time
02/27 - 02/28 Minden, Nevada Lean Safety
02/27 Newark, Delaware 3P Application
03/06 - 03/08 West Point, New York Building Leaders for Tomorrow - Today!
03/07 Making Materials Flow
03/12 - 03/13 Philadelphia, Pennsylvania Lean Bronze Certification Preparation Course & Exam
03/12 Chicago, Illinois Compression and Risk Management Workshop
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7 ©2013 APQC. ALL RIGHTS RESERVED.
APQC Events http://www.apqc.org/events
02/20 Finance Webinar The Last Mile of Finance
02/21 Knowledge Management Webinar Addressing Knowledge Erosion at Wipro
02/26 Human Capital Management Webinar Current Challenges in HR
03/06 APQC Orientation Overview for Industry Organizations
03/13 APQC Orientation Overview for Professional Service Firm Organizations
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8 ©2013 APQC. ALL RIGHTS RESERVED.
APQC Research Agenda http://www.apqc.org/research_agenda
Active Research Mobility and Finance
Financial Analysis Becomes Financial Analytics
Managing the Financial Risks of Supply Chain Disruption
How Leading Organizations are Using the PCF
Using Social Media to Collaborate and Share Knowledge
Upcoming Research Managing Knowledge Within Projects
How Shingo Prize Winners Manage Their Supply Chains
Avoiding Pitfalls in Fixing Finance
What Makes Top Performing HR Functions Different?
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Benchmarking Presentation Benchmarking Case Studies
All lines are muted. Please send your questions via chat to the Organizer. We’ll cover them at the end of this session.
We WILL send out a link to the recording of the event in the coming days.
Travis Colton, APQC Don Davies, General Dynamics John Mellin, GlaxoSmithKline
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10 ©2013 APQC. ALL RIGHTS RESERVED.
Background: APQC Benchmarking Assessment Survey
APQC conducted an assessment of benchmarking practices among our members.
We’ll present some of the results here.
Provide attendees the opportunity to participate in the assessment survey.
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Travis Colton, APQC
All lines are muted. Please send your questions via chat to the Organizer. We’ll cover them at the end of this session.
We WILL send out a link to the recording of the event in the coming days.
Benchmarking Assessment Survey Results
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12 ©2013 APQC. ALL RIGHTS RESERVED.
Benchmarking Assessment Survey
APQC launched a self-assessment survey in 2012 to help organizations:
Determine the current state of their internal benchmarking capabilities.
Understand their ability to obtain benchmarking information through internal means.
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13 ©2013 APQC. ALL RIGHTS RESERVED.
How do you rate your organization’s ability to obtain good benchmarking information?
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Why Benchmark?
If we invest in improvement what kind of return can we expect?
Which sites are performing well compared to others in the organization?
What is working and what isn’t?
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15 ©2013 APQC. ALL RIGHTS RESERVED.
Are We Ready?
Readiness Need
Usability Validity
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16 ©2013 APQC. ALL RIGHTS RESERVED.
Assessment Results Overview
Need Usability Validity Readiness
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17 ©2013 APQC. ALL RIGHTS RESERVED.
The Business Need
Has a business need for benchmarking been identified?
Senior management understands and supports benchmarking as a key improvement strategy.
73% 27%
69% 31%
Perceived need for benchmarking content by your management.
75% 25%
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18 ©2013 APQC. ALL RIGHTS RESERVED.
Readiness
56%
35%
9%
Low Medium High N=82
Overall Benchmarking Readiness Score for All Participants
Right now our readiness is low We need to be at a higher level
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19 ©2013 APQC. ALL RIGHTS RESERVED.
Why Do We Struggle?
Benchmarks that are easy to get are often not trusted by stakeholders.
To get the few trusted benchmarks often requires a lot of resources.
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Travis Colton, APQC
All lines are muted. Please send your questions via chat to the Organizer. We’ll cover them at the end of this session.
We WILL send out a link to the recording of the event in the coming days.
Benchmarking Applications
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21 ©2013 APQC. ALL RIGHTS RESERVED.
Applications of Benchmarking
Internal External
Metrics
Process
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Which type of benchmarking is most needed by your organization?
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23 ©2013 APQC. ALL RIGHTS RESERVED.
Which type of benchmarking will provide the greatest value to your organization?
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Ron Webb, APQC
All lines are muted. Please send your questions via chat to the Organizer. We’ll cover them at the end of this session.
We WILL send out a link to the recording of the event in the coming days.
The Cost of Not Knowing
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25 ©2013 APQC. ALL RIGHTS RESERVED.
Cost of Not Knowing
CONK
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26 ©2013 APQC. ALL RIGHTS RESERVED.
Benchmarking Brings Innovation to Improvement
Time
Pe
rfo
rman
ce
Initial Rollout
Back to the “Old Way”
Goal
Recommitment
We’re getting the hang of this
Backslide
Let’s learn how others are doing this
Breakthrough performance
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Benchmarking Assessment
APQC’s benchmarking self-assessment survey:
www.apqc.org/custom-benchmarking-services
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GlaxoSmithKline Case Study
Travis Colton, APQC
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GlaxoSmithKline Background
Our products are used by millions of people around the world, helping them to do more, feel better and live longer.
Focus areas of: pharmaceuticals, vaccines and consumer healthcare
We have offices in more than 115 countries and employee more than 97,000 workers
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How does GSK spending on core facilities activities stack-up against peers?
Core Intent of Benchmarks
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31 ©2013 APQC. ALL RIGHTS RESERVED.
Background
Project began in late December 2011 Selection of services and sites at GSK to include in
benchmarking
Define parameters for benchmarks to ensure comparability
Secondary research to find the best sources of benchmark data
Ten GSK sites selected that represent a wide-range of facility uses
Fourteen high-level services selected
Final deliverables in May 2012
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The Value Question
? Pharmaceutical Peers Other Industries
Are the services we receive a good value to GSK?
How do services compare across sites?
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33 ©2013 APQC. ALL RIGHTS RESERVED.
The GSK ‘Landscape’
Benchmarks have provided insight about the ‘high and low’ spots for costs from both an internal and external perspective
Validation of the benefit of outsourcing where applicable
Opportunity to understand why variations exist
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Reaction to Benchmarking
Overall costs were where we hoped they would be
Variations by site provided view of potential areas for review/improvement
Happy with results
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Next Steps
Review variations and look for root causes for them
List potentials and prioritize
Look for ways to standardize services if deemed appropriate.
Review CMMS capabilities to further enhance site data.
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Question and Answer?
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Thank You for Attending!
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or recommended topics to