Case Study of Nestle and Sbo Benchmarking

Topics: Supply chain management, Supply chain, Management Pages: 12 (3399 words) Published: March 8, 2013
Part A

Summary of Case Study

At the beginning of the 90’s actually software process improvement was invested by many organizations . Military industry was the first that invested on software process improvement, but nowadays process improvement widely used in many industry segments. The models and standards help to describe it not only on paper but also use them in the working way. However there should be a pay off. Are there any increment on the quality of product ? Are there any improvement on efficiency? Are products coming to market time decreasing? And an overall question compared to what?

Benchmarking is the key point here. This technique helps companies for external comparison to evaluate real capability and for the future identifying possible actions in a better way. Satisfying model sor standarts are involving no guarentee for real performance imprevements. Multi –Dimensional way of looking from benchmarked results is recommended to focus on.

To explain importance of benchmarking there can be asked a question. Why benchmarking? If standarts are not known by you, measurement which is done by you for yourself are not true. For example when customer ask you about your serving time and your time is six hours. If the standarts in your sector are between 5-7 hours you are at the middle. But if some different company is serving in 4 hours, Which will be chosen by customer?

Steering our actions in the industry is mainly managed by the numbers by us. In software industry this concept of numbers are growing everyday for real software development. But Software industry still has problems about managing by the numbers. Players in the industry accept basicly Numbers should be used. But most of the projects are still managed by three basic things, Dead-lines, budgets and at the end of Project removing critical defects. This is not so suitable for a multi-dimensional Project. Just compare situation with a formula one race looking at only fuel and speed. But Oil pressure, tyre pressure, pit stop planning, weather and many other variables are not taken into account and this will cause many problems during the race those will make team lose the race definitely.

According to Sassenburg(2006) software organizations especially known as succesful have noticed six measurement objectives ;

- By analyzing historical of Project data, learning the capability of one’s organization. -To have credible commitments in terms of what will be delivered when against what cost. -For optimizing Project objectives, finding some investigating ways. -Managing Development

-Decide when to release a product.
-By investigating how capability is affected, analyzing the impact of new initiatives.

A measurement process is required to be able to meet these objectives that turns measured process and product specialities to significant management information. Management has to have the ability to run away from details and notice the bigger Picture. Dashboards can only perform that function if right information is with them.

Defining the appropriate Key Performance Indıcators ( KPIs) in each category is the success factor. The important point about KPIs is that KPIs make management enabled for informed decision-making.

Problems, Benchmarking Implementations, Benefits, and Results

According to Camp “ Benchmarking is comparing one’s own performance and operating methods with industry averages or best in class examples, with the goal of locating and improving one’s own performance” (Camp,1989) Based on this benchmarking is an essential device for companies to put an effort for improvement. Software development organizations, mainly measure their performance by using productivity rate, Project time-to-market, and Project deliverable quality. Many years there was not many benchmark information was available. That situation rescued software managers from analyzing real economics of software. Nowadays...
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