Best practices for the effectiveness of benchmarking in the Indonesian manufacturing companies

Benchmarking the practices of flexibility with maturity models and frameworks of organizational capabilities

Purpose

Organizational capabilities are crucial to achieve the objectives. A plethora of maturity models is available to guide organizational capabilities that create a perplexing situation about what stuff to improve and what to leave. Therefore, a unified maturity model addressing a wide range of capabilities is a necessity. This paper establishes that a flexibility maturity model is an unified model containing the operational, strategic and human capabilities.

Design/methodology/approach

This paper does a comparative analysis/benchmarking studies of different maturity models/frameworks widely used in the information technology (IT) sector with respect to the flexibility maturity model to establish its comprehensiveness and application in the organization to handle multiple goals.

Findings

This study confirms that the flexibility maturity model has the crucial elements of all the maturity models. If the organizations use the flexibility maturity model, they can avoid the burden of complying with multiple ones and become objective-driven rather than compliance-driven.

Research limitations/implications

The maturity models used in information technology sectors are used. This work will inspire other maturity models to adopt flexibility phenomena.

Practical implications

The comparative analysis will give confidence in application of flexibility framework. The business environment and strategic options across organizations are inherently different that the flexibility maturity model well handles.

Social implications

A choice is put to an organization to see the comparison tables produced in this paper and choose the right framework according to the prevailing business situation.

Originality/value

This is the first study that makes a conclusion based on comparative benchmarking of existing maturity models.

Benchmarking—A Way of Finding Risk Factors in Business Performance

The purpose of this study was to emphasize that the Data Envelopment Analysis (DEA) method is an important benchmarking tool which provides necessary information for improving business performance. To fulfil the abovementioned goal, we used a sample of 48 Slovak companies involved in the field of heat supply. As their position in the economic and social environment of the country is essential, considerable attention should be paid to improving their performance. In addition to the DEA method, we applied the Best Value Method (BVM). We found that DEA is a highly important benchmarking tool, as it provides benchmarks for units that have problems with performance and helps us to reveal risk performance factors. The DEA method also allows us to determine target values of indicators. The originality of this paper is in its comparison of the results of the BVM and the DEA methods.

Twenty-five years’ contribution of “Benchmarking: an International Journal” to manufacturing strategy: a scientometric review

Purpose

This study aims at reviewing the articles on the themes of manufacturing strategy (MS) published in “Benchmarking: An International Journal (BIJ)” and investigating the trends of publication for future research.

Design/methodology/approach

Five-stage methodology to conduct a literature review is adopted comprising: (1) article collection, (2) inclusion/exclusion criteria, (3) reviewing the articles, (4) analyzing the articles and (5) future research directions. A total of 57 articles specific to MS domain published in BIJ are reviewed. Further, a bibliometric analysis comprising keywords co-occurrence, citation and co-citation using a VOSviewer© software followed by content analysis to analyze the type of research, type of industry and type of tool/method used is carried out.

Findings

The study helps to find the scope of the journal and research gaps in the MS domain to provide future research directions. Most of the work found is survey-based or case-based in nature. However, there is a need for empirical research to be done in the field of MS.

Research limitations/implications

The study facilitates researchers willing to publish in BIJ to understand different themes of accepted papers concerning MS domain. The identified research gaps and future research direction can motivate researchers and practitioners to coin new approaches in the MS domain.

Originality/value

A comprehensive review and analysis of the MS literature published in BIJ has been provided. To the best of authors' knowledge, the current study is the only review study in MS domain focusing on one specific journal.

An empirical study on relationships amongst success in benchmarking, success in Kaizen, people mindset and organizational dimensions

Purpose

The purpose of this paper is to examine factors that most strongly influence success in benchmarking as attempted by Indonesian manufacturers and service companies. It investigates the impacts of success in Kaizen, people mindset and organizational dimensions with success in benchmarking.

Design/methodology/approach

A total of 100 questionnaires were distributed to senior managers at an 87 percent response rate.

Findings

This study reveals that success in benchmarking that companies undertake correlates positively with their success in Kaizen, people mindset and organizational dimensions.

Research limitations/implications

As an empirical study, this work has some limitations that need to be recognized. First, the sample only includes Indonesian companies. Second, as the small sample size resulted in only indicative outcome, more research is needed in this area. Furthermore, there may also have been other factors affecting success in benchmarking. It is, therefore, recommended that the framework be extended to include more variables such as information-technology competency, company status (being a single or group company) and to use other methodologies, such as multiple regression.

Practical implications

A company can achieve success in benchmarking through implementing success in kaizen, people mindset, formalization, centralization and integration. Industry-wise, formalization and centralization are the variables that impact the success in benchmarking significantly. For services companies, formalization and centralization is the significant variable affecting, whereas, for manufacturing companies success in Kaizen is the significant variable for success in benchmarking. Therefore, for services companies, having documented and implementation policies, regulations and procedures will influence success in benchmarking. The involvement of the top management, budgeting for every functions and unit performance evaluation will result in success in benchmarking. On the other hand, top management commitment and worker involvement are necessary to drive success in Kaizen in manufacturing companies.

Originality/value

Unlike most of the previous studies on a manufacturing company, this paper examines both manufacturing and services companies especially in Indonesia.

Exploring the success factors for examining the potential of manufacturing system output

Purpose

The purpose of this paper is to explore the success factors for the assessment of manufacturing system output.

Design/methodology/approach

Exploratory factor analysis and second-order confirmatory factor analysis were used to analyze data and test hypotheses, respectively. A total of 36 observed variables were transformed into nine success factors, namely role of management (ROM), technical strength, employee strength, organizational strength (OS), resources (RS), production system, market research, effective planning, and research and development (RD).

Findings

The finding indicates that only four success factors, namely ROM, RS, OS, and RD, are positively related to all four outputs. Moreover, all nine success factors are positively associated with profit.

Research limitations/implications

The outcomes of the present work provide meaningful implications for researchers and practitioners as well.

Originality/value

Earlier studies have laid focus on single output only in the manufacturing system. In the present study, an effort has been made to focus on four output dimensions, namely final product, customer relationship, reputation, and profit, which are further strengthened by incorporating the concept of performance in manufacturing systems.

Attitudes of Nigerian facilities management professionals to the benefits of benchmarking

Purpose

The purpose of this paper is to examine the benefits of benchmarking among Nigerian facilities management (FM) practitioners.

Design/methodology/approach

Data collection was through semi-structured interviews with 34 FM heads from three selected cities in Nigeria. Of this number, 16 were from Lagos, 10 from Abuja, while 8 managers were from Port Harcourt. These managers were selected using purposive sampling based on their experience in the field of FM across the various sectors of the economy. The interviews were analysed with Nvivo 10 software qualitative computer software so as to reduce manual tasks, discover tendencies and recognize themes on the practice, meaning and benefits of benchmarking. Matrix coding of the Nvivo software was used to distinguish between benefits realized by those that conduct formal and informal benchmarking.

Findings

The paper found that those that perform informal benchmarking find that the benchmarking tool helps them to improve performance, service quality and their processes. On the other hand, those that perform formal benchmarking affirmed that benchmarking helped them in making strategic plans, striving to be the best in the industry and obtaining explanations for those improvements that are made now and in the near future.

Practical implications

The results, therefore, suggest that formal benchmarking in Nigeria is needed in performing strategic role in FM, as well as in making good business case agitations. Practitioners also need to know the benefits of benchmarking to improve its usage.

Originality/value

The paper categorised FM benchmarking benefits. Also, there are limited empirical studies on benchmarking benefits in developing countries.

Strategic benchmarking of service pricing based on the value added

Purpose

– The purpose of this paper is to investigate opportunities to move benchmarking studies toward a strategic level. The authors benchmarked how service prices are defined based on the value added for the customer.

Design/methodology/approach

– A multi-case research investigated how manufacturers can increase their service revenues; how corporate reputation can be analyzed to enhance financial and market performance; how customer satisfaction and price acceptance are related; and how benchmark studies can move to a more strategic level based on a conjoint analysis of value and price.

Findings

– Price’s benchmarking studies must combine the customers’ value demands; the customer expectations associated to each value demand; the competitor prices; and the revenue alternatives that a supplier can explore (e.g. sale of new goods, services for new goods, services for non-new goods, and repair parts). The combination of these elements reveals several opportunities for revenue generation. This combination may also help to explain the existence of different prices for similar goods and services. The authors referred to this as a flexible pricing policy. Flexible pricing may help manufacturers maximize revenues, and win and maintain customers.

Research limitations/implications

– The following research questions are suggested for future studies: What other elements should be considered in strategic benchmarking studies? What other elements can influence a flexible pricing policy for goods, spare parts, and services? In what contexts can a flexible pricing policy be applied? How should flexible pricing practices be benchmarked?

Practical implications

– A strategic benchmarking study must first identify the customers’ value demands. It is then necessary to analyze customer expectations associated to each value demand. As shown, customers may have different expectations for the same product or service. Similar expectations must be grouped together in order to allow a well-structured benchmark.

Originality/value

– The authors’ findings suggest interesting points to be observed by the manufacturers who supply integrated solutions with a long life cycle.

Performance measures of ISO 9001 certified and non-certified manufacturing companies

Purpose

– The purpose of this paper is to compare ISO 9001 certified and non-certified manufacturing companies with regard to performance measures, both financial and non-financial.

Design/methodology/approach

– A research study was carried out in 140 Greek manufacturing companies by means of a questionnaire. The questionnaire was sent by e-mail and it was requested that it should be answered by a company representative. Exploratory factor analysis is applied in order to extract the latent factors of performance measures. The differences between the ISO 9001 certified and non-certified manufacturing companies are determined through non-parametric tests such as the χ2-test and the Mann-Whitney U-test.

Findings

– The ISO 9001 certified manufacturing companies significantly outperform the non-certified with regard to product quality, customer satisfaction, operational, market and financial performance. This is evident in a business environment where an economic downturn and financial crisis dominates.

Research limitations/implications

– The sub-samples of the responding ISO 9001 certified and non-certified manufacturing companies are small sized and they are limited to small- and medium-sized enterprises. The subjective character of the data collected through the company representatives involves the risk of receiving biased responses regarding the performance measures. The above limitations suggest future research recommendations.

Practical implications

– The increased performance measures of the ISO 9001 certified manufacturing companies may motivate the non-certified ones to implement the ISO 9001 standard and apply for the certification in order to increase their performance and withstand the current economic downturn and financial crisis. The present study may also stimulate manufacturing companies to adopt traditional and modern benchmarking techniques, in an additional effort to improve their businesses and competitiveness.

Originality/value

– The present study compares performance measures of ISO 9001 certified and non-certified manufacturing companies operating under unprecedented circumstances due to the current economic downturn and financial crisis.