Absolute Benchmarking is a groundbreaking technique developed to understand how well your company is doing versus how well it could be doing. Absolute Benchmarking is a quantitative, practical technique that quickly identifies your company's biggest opportunities for improvement. Assigning "stretch" goals or making strategy without understanding the limits to which your value stream can stretch is potentially a recipe for a meltdown in performance. Stretch goals should not be used as a proxy for understanding performance drivers. For executives and managers Absolute Benchmarking is as fundamental to understanding operations performance and profit potential as revenue and expenses are fundamental for accountants to understand income statements.
There are two types of Absolute Benchmarking: Flow Benchmarking and Stock Benchmarking.
- Flow Benchmarking provides information on how well your process flow is working versus how well it could be working. Understand if your cycle times as short as they could be. Determine the optimal amount of WIP for your process. Get a quantitative understanding of your capacity. Click here for more description of this extremely powerful technique.
- Stock Benchmarking provides the answer to the constant questions we hear about inventory optimization: What is the optimal amount of inventory for your company? Click here for more information on this easy-to-use, powerful management tool for practical decision making.
FPI provides Absolute Benchmarking as an initial assessment and as part of ongoing efforts in our LeanPhysicsTM implementations to get the most effective results possible in improving performance. For information on conducting an Absolute Benchmark of your company contact:
Ed Pound
Factory Physics, Inc.
pound@factoryphysics.com
630-870-1163