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News Release from: ARC Advisory Group | Subject: Benchmarking
Edited by the Processingtalk Editorial
Team on 27 June 2007
Benchmarking analysis tool with
on-demand reports
A new on-line benchmarking analysis tool gives benchmarking subscriber companies the ability to create their own reports and view benchmarking data in a way that's most useful
The new tool helps companies break down the complexity of various measures and help determine what actions they need to take to improve operations The ARC Benchmarking Consortium has been maturing over the last few years
This article was originally published on Processingtalk on 21 Nov 2003 at 8.00am (UK)
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Participating global companies have been using the data to compare with their colleagues, and are now able to take the analysis of metrics data one step further.
"Not only are we comparing detailed metrics from 79 different plants around the world and showing how a single plant compares to each of the others, but we can also make further assumptions based on the interdependency of different metrics," said Dick Hill, ARC Vice President and General Manager, and leader of the ARC Benchmarking Consortium.
Dick adds, "We need to look at the metrics beyond their face value and determine what is optimal for each plant.
For example, can you really deduce that fewer people are better in a plant? When compared to another metric, like the number of alarms, you might see that in some instances, more people mean fewer alarms, but in others, more people still correlate to more alarms.
This is a red flag that more work needs to be done at this plant".
Many automation metrics are focused on the cost side, rather than the value side, of the business.
Two factors clearly co-exist in value metrics: efficiency and effectiveness.
While it is important to compare "efficiency" metrics, like the number of people managing a plant, the effectiveness metric can portray whether the operations are really running smoothly.
An "effectiveness" metric might tell whether a plant was making more profit with the same labour cost as another of the benchmarked plants.
The ARC Benchmarking Consortium was formed in January 2005 by a number of major companies in the process industries and has expanded to include hybrid companies.
For more information on the Benchmarking Consortium and to find out how to join, contact John Wason at ARC.
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