Benchmarking. Concepts and Highlights. Benchmarking

Benchmarking

Benchmarking

Concepts and Highlights

Topics

Topics

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Concepts

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Basic Concept

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Goals

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Value

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Profits

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Secrecy / Code of Conduct

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Organization

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Highlight

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Logistic - Outbound

Concepts

Benchmarking

Benchmarking

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Basic Concept

Basic Concept

“Benchmarking is the continuous process of measuring products, services,

and practices against the toughest competitors or those companies

recognized as industry leaders.”

David T. Kearns, former CEO of Xerox,

“Benchmarking is the continuous process of measuring products, services,

and practices against the toughest competitors or those companies

recognized as industry leaders.”

Benchmarking

Benchmarking

Benchmarking

Benchmarking Groups in Brazil

Benchmarking Groups in Brazil

~ IT – Information Technology ~ Controlling ~ Finance ~ Logistics - Outbound ~ Supply ~ Human Resources ~ Industrial Automation ~ Port Operations • ACESITA • ACINDAR (AR) • AÇOS VILLARES • ALCOA

• ALL - AMÉRICA LATINA LOGÍSTICA • ANDRADE GUTIERREZ • ARACRUZ CELULOSE • BANCO BONSUCESSO • BANCO BMG • BANCO SCHAIN • BELGO • CARBOCLORO • CENIBRA • COSIPA • CSN • CST • CVRD

• FCA –FERROVIA CENTRO ATLÂNTICA • FERROBAN • GERDAU • HOLCIM • INTERNATIONAL PAPERS • KLABIN • LÍDER AVIAÇÃO • MBR • MRS LOGÍSTICA • NOVELIS • SAMARCO

• SUZANO BAHIA SUL • TELEMAR • TRANSPORTADORA AMERICANA • USIMINAS • V&M DO BRASIL • VEGA DO SUL • VERACEL • VILLARES METALS • VOTORANTIM METAIS

There are several Benchmarking Groups in many corporative segments, covering 35 Brazilian Top

Companies.

All Processes conducted by

Benchmarking

Benchmarking

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Goals

Goals

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The Benchmarking Process main objective includes research, joint and

analysis that are going to provide a wide comparison between

administration practices and technologies used.

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Collect, join, analyze and compare :

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Process

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Practices

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Management Trends

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Key Performance Indicators and Ratings

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Management Tools used

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Information Technologies used

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Organization – Structures, Staff, Outsourcing Practices

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Lead specifics Surveys of the group interest

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Show the Best Practices between companies

Benchmarking

Benchmarking

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Profits

Profits

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Direct Profits:

9 LEARNING TOGETHER

9 CREATE NETWORKING

9 FIND NEW IDEAS

9 GET COMPETITIVE REFERENCE AND POSITIONING

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Mandatory Pre-requirement to PNQ - Prêmio Nacional da

Qualidade (National Quality Award) and to Corporative

Governance.

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Give Management total transparency.

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Reduce risks when adopting new trends in management

and technology.

Benchmarking

Benchmarking

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Secrecy / Code of Conduct

Secrecy / Code of Conduct

1. Principle of Legality 2. Principle of Exchange 3. Principle of Confidentiality 4. Principle of Use 5. Principle of Contact 6. Principle of Preparation 7. Principle of Completion

8. Principle of Understanding and Action

9. Principle of Providing and Sharing Performance Indicator Data

It is officially signed a Secrecy Term by the consulting company and adopted the Code of

Conduct by APQC - American Productivity and Quality Center.

Information is 100% open among (and only)

the partners. All of them know

everyone’s practices.

Benchmarking

Benchmarking

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Organization

Organization

Phase 1

It is composed by 4 Steps.

During this Phase all the companies' Processes, Practices, Key Performance Indicators and Ratings will be published. It usually takes non intensive, continuous 5 months.

Phase 2

Once Phase 1 is concluded, the Benchmarking Process will go on with the monthly updating of the Key Performance Indicators and Ratings.

During this Phase the group networking will be kept.

Planning Collecting Production Publishing

Phase 1

Phase 2

Collecting and

Benchmarking

Benchmarking

Highlights

Benchmarking

Benchmarking

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General Aspects

General Aspects

Next, it will be shown one case of the Benchmarking Processes and results samples

accomplished in the varied corporative areas developed

Some aspects are basically common apart from the researched area, such as:

• Company Profile

• Main Company Data – Production Volume, Revenue, etc. • Most used Management Tools

• Organization Charts – Corporative and Area • Head Count – Own Staff and Outsourcing • Team Formation

• Income Average • Main Area Activities

• Main Area Key Performance Indicators and Ratings • Area Costs

• Main Suppliers and Contracts • Information System used • Satisfaction Survey

Highlights

Highlights

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Logistics Benchmarking

Logistics Benchmarking

LOGISTICS

LOGISTICS

BENCHMARKING

BENCHMARKING

GROUP

GROUP

Benchmarking

Benchmarking

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Logistics

Logistics

Partners

Benchmarking

Benchmarking

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Logistics

Logistics

Relevant Facts

~ Workshops Accomplished :

ƒ CST – Vitória / ES - Jan /05

ƒ BELGO – Juiz de Fora / MG - Mar/05

ƒ GERDAU AÇOMINAS - Ouro Branco / MG - Jun /05

ƒ ABM – São Paulo / SP – Dec /05

ƒ VEGA DO SUL – Joinvile / SC – Aug /06

~ Subgroups:

ƒ Sea - Set/05;

ƒ Road – Mai/06

~ Informations by Web

ƒ ABM Site – Dec/05 (http://www.abmbrasil.com.br/redeabm/logistica/)

Gross Sales of Logistics

Gross Sales of Logistics

Benchmarking Partners Benchmarking Partners represent 2,7 % of the represent 2,7 % of the Brazilian PIB Brazilian PIB

Brazilian PIB 2005 = R$ 1,937 Trillions * Gross Domestic Product

Net Sales represent 84 %

Net Sales represent 84 %

of the sector Global Sales

of the sector Global Sales

IBS* 2005 = R$ 48.378 millions

*Brazilian Steel Institute

Companies Gross Sales (R$ Millions) 2005 Net Sales (R$ Millions) 2005 ACESITA 3.765,29 2.963,63 AÇOS VILLARES 2.173,00 1.706,00 BELGO JUIZ DE FORA

BELGO JOÃO MONLEVADE BELGO VITÓRIA CST 6.057,00 5.144,00 COSIPA 6.853,00 5.295,00 GERDAU AÇOMINAS GERDAU LONGOS USIMINAS 8.483,00 6.956,00 V&M 2.165,16 1.764,61 VEGA DO SUL 1.600,00 1.205,00 TOTAL 52.011,45 40.764,83 5.733,00 13.260,00 9.997,60 7.655,00

Benchmarking

Benchmarking

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Logistics Highlights

Logistics Highlights

Work Organization

ƒ Organization Chart – Up to Logistic level

ƒ Corporative Head Count

ƒ Revenues - R$ Millions

ƒ Supported Markets

ƒ Most used Management Tools

7 of 10 biggest Brazilian 7 of 10 biggest Brazilian Steel Producers, Steel Producers, according to Ranking of according to Ranking of EXAME

EXAME --MelhoresMelhorese e Maiores Maiores20062006 CSN 4.337,10 GERDAU AÇOMINAS 4.061,70 USIMINAS 3.916,40 COSIPA 2.905,70 CST - ARCELOR BRASIL 2.588,60 BELGO SIDERURGIA 2.503,10 ACESITA 1.629,50 GERDAU AÇOS LONGOS 1.301,10 CBA 1.202,00 Gross Sales US$ Millions 2005 Companies This is a sample of several presented results

Highlights

Highlights

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Logistics Benchmarking

Logistics Benchmarking

Work Organization

~ Logistics Area Organization

ƒ Structures

ƒ Organization Chart – Logistics Area

ƒ Activities by Function

ƒ Human Resources Data

ƒ Logistics Information Systems

Used Technologies 50,0% 25,0% 16,7% 7,0% 50,0% 50,0% 100,0% 8,3% Bar Code RFID Optical Scanning Hand-helds WMS Others Computer Conduct Vehicle GPS

Samples

Average Working Time (Years)

≥ 1 e < 5 8,3% ≥ 5 e < 10 33,3% ≥ 10 e < 15 25,0% ≥ 15 e < 30 33,3% Average = 12 Y and 6 M

Highlights

Highlights

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Logistics Benchmarking

Logistics Benchmarking

Work Organization

~ Logistics Profile

ƒ Logistics Links Chart

ƒ Performance per Modal

ƒ Main Suppliers

ƒ Distribution Centers Used

Samples

Ton Modal Performance (%)

Rail 35,0% Sea 25,3% Road 39,7%

Highlights

Highlights

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Logistics Benchmarking

Logistics Benchmarking

Work Organization

~ Logistics Processes & Practices

ƒ Quantitative of Process Documents

ƒ Support Models

9 Orders Properties

9 Clients Support - Time Measure

ƒ Logistics Effort

ƒ Logistics Mission

ƒ Logistics Functions / Activities

ƒ Performance Measurement / Bowersox Ratings

ƒ Customer Relationship

ƒ Customer’s Conjoint Planning

ƒ Logistics Communication Orders Profile Make to Order 86,7% Make to Stock 13,3% Samples Answers TOTAL % Not Established 0 0,00% < 1 Year 0 0,00% > 1 Year - < 5 Years 7 58,33% > 5 Years 5 41,67%

Logistic Peformance Metrics

Highlights

Highlights

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Logistics Benchmarking

Logistics Benchmarking

Logistics Key Performance Indicators

~ Monthly

9 OTIF - On Time In Full

ƒ Domestic Market

ƒ Global Market

9 Road and Rail

ƒ Accomplishment of Dispatch Time Index

ƒ Acceptance percentage of The Company's Shipping Plan by The Rail Company.

ƒ Acceptance Percentage of Shipping Plan Accepted by The Rail Company.

ƒ Total Time in The Company's Premises for Loading - Vehicles (Trucks) / Wagons

ƒ Transit Time Accomplishment Index

ƒ Dead Freight - Road

9 Freight Costs Evolution

ƒ Road

ƒ Rail

9 Sea

ƒ Ship Arrived at Port in accordance with the Lay Days

ƒ Average of Productivity of Loading Ship (slabs)

ƒ Average of Productivity of Loading Ship (coils)

ƒ Average Demurrage - Per Ship

Highlights

Highlights

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Logistics Benchmarking

Logistics Benchmarking

Logistics Ratings

~ Half Yearly

9 Modal Mix Distribution

9 % of “No Freight” Boardings by Ton Boarded :

ƒ Domestic Market

ƒ Global Market

9 % of Utilization of Road Private Fleet (Private + Aggregation)

9 Sea - % of Presence of Stevedores

Highlights

Highlights

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Logistics Benchmarking

Logistics Benchmarking

Logistics Key Performance Indicators and Ratings

Total Time in The Company's Premises for Loading - Vehicles (Trucks)

00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 General 04:09 01:00 AÇOS VILLARES 02:27 02:30 02:32 02:25 02:35 02:18 02:27 02:26 02:22 02:36 02:21 BM-JF 05:15 05:36 05:41 06:52 05:36 04:54 03:57 04:25 05:15 04:58 06:12 BM-MLV 01:51 01:12 01:00 02:00 01:06 01:36 02:30 01:50 02:00 03:30 03:50 BM-VIX 05:46 05:48 06:24 05:27 04:31 06:15 04:58 05:04 06:32 07:03 06:45 COSIPA 05:29 04:45 04:08 04:49 06:22 05:35 05:20 06:27 05:31 06:27 05:01 CST 03:02 04:13 03:29 03:35 03:31 02:57 02:35 02:35 02:08 02:20 03:45 GERDAU Açominas 04:38 04:48 04:27 05:00 05:31 05:24 04:38 04:07 03:54 04:00 GERDAU DIVINOP. 01:38 01:31 01:36 01:38 01:29 01:31 02:04 01:38 01:43 USIMINAS 03:12 03:16 02:58 03:35 03:04 03:12 03:23 03:08 03:04 03:11 02:49 V&M 10:20 08:21 10:13 08:22 11:52 10:50 10:43 11:02 09:51 11:48 VEGA DO SUL 01:40 01:43 01:50 01:55 01:38 01:42 01:36 01:33 01:37 01:30 01:26 2006 Average BENCH JAN FEB MAR APR MAI JUN JUL AUG SEP OCT

h

our

s

Highlights

Highlights

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Logistics Benchmarking

Logistics Benchmarking

Logistics Key Performance Indicators and Ratings

Mês:

Ship Arrived at Port in accordance with the Lay Days JUN/2006 38,89 54,54 33,33 33,33 5,56 14,00 18,18 8,33 8,33 22,22 14,00 18,18 16,67 16,67 11,11 43,00 9,09 25,00 11,11 11,11 _16,67 41,67 14,00 14,00 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Out Laydays 11,11 14,00 16,67 41,67 11 to 15 Days 11,11 8 to 10 Days 11,11 43,00 9,09 25,00 5 to 7 Days 22,22 14,00 18,18 16,67 16,67 2 to 4 Days 5,56 14,00 18,18 8,33 8,33

BELGO COSIPA CST GERDAU AÇOMINAS USIMINAS VEGA JUN/2006

%

Highlights

Highlights

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Logistics Benchmarking

Logistics Benchmarking

Logistics Key Performance Indicators and Ratings

Mês

Modal MIX - 2006 - JAN / JUN

% 65,00 58,50 36,00 39,54 39,96 13,58 27,80 59,06 51,90 49,34 86,27 7,60 9,19 7,21 4,70 1,63 8,60 13,37 13,73 39,65 79,21 0,15 11,00 17,50 1,13 10,19 4,71 23,00 1,44 2,00 _9,00 59,33 1,01 0,43 1,20 8,42 22,00 24,00 20,00 67,50 34,20 15,30 27,42 92,40 29,00 6,00 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Road-Rail-Sea Rail-Sea 22,00 24,00 20,00 67,50 34,20 15,30 27,42 Road-Sea 2,00 9,00 59,33 1,01 0,43 1,20 8,42 Road-Rail 11,00 17,50 6,00 1,13 10,19 4,71 23,00 1,44 Seal 39,65 79,21 0,15 Rail 7,60 29,00 9,19 7,21 4,70 1,63 8,60 13,37 13,73 Road 65,00 92,40 58,50 36,00 39,54 39,96 13,58 27,80 59,06 51,90 49,34 86,27

ACS AVL BM-JF BM-MLV BM-VIX COSIPA CST GERDAU A GERDAU

LONGOS USIMINAS V&M VEGA

%

JAN / JUN

Highlights

Highlights

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Logistics Benchmarking

Logistics Benchmarking

Main Comparative Statistics

~ Logistics Manager participation in Corporative Decision’s (%)

~ Logistics Area Costs vs. Revenues

~ Team % per Function

~ Own Team vs. Outsourcing

~ Team Head Count vs. Corporative Head Count

~ Team Average Working Time in Company

~ Team Formation Levels (%)

~ Delivery Times

~ Team Salary Ranges

~ Information Systems Used

~ Ton moved per Modal

~ Ton moved per Distribution Center

~ Average Ton per Order

~ Average Ton per Outbound Ticket

~ Orders Profile

• Publishing of around 160 Questions and Indicators

Highlights

Highlights

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Logistics Benchmarking

Logistics Benchmarking

Published Graphics

Average Ton per Outbound Ticket

85 94 104 106 117 150 189 194 200 273 408 124 0 50 100 150 200 250 300 350 400 450

USM ACS CSP V&M VDS AVL BVI BJM BJF GEA GLG

Average

This is a sample of several presented graphics

Highlights

Highlights

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Logistics Benchmarking

Logistics Benchmarking

Published Graphics

Ton Moved per Modal

100,0% 88,0% _86,0% 65,3% 58,7% 57,3% _54,7% 49,3% 40,6% _36,8% 23,5% 14,7% 12,0% 42,7% _45,3% 50,7% 19,1% 49,9% 76,5% 6,5% 13,3% 41,3% 34,7% 13,7% 78,8% 40,3% 0,3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

BVI ACS VDS GLG BJF BJM AVL V&M CSP USM GEA CST

Road Rail Sea

Consulting

The Consulting Company

The Consulting Company

~ It is been in the market since 1990.

~ It offers corporative consultancy to IT Planning, Management, Integration and Training. ~ It also offers Benchmarking Business Process groups development.

~ Brazilian leadership in consultancy in Benchmarking Business Process. ~ Main IT corporative consultancy in Minas Gerais - Brazil.

~ Headquarters in Belo Horizonte – MG – Brazil. ~ International actions in Argentina and Portugal.

Chosen as the IT most profitable Brazilian company by INFO Exame

Main Clients

Main Clients

ƒ FUNDAÇÃO DOM CABRAL

ƒ GASMIG

ƒ GERDAU LONGOS

ƒ GERDAU AÇOMINAS

ƒ GLOBAL VALUE SOLUÇÕES (FIAT/IBM)

ƒ HOLCIM ƒ INDUSTRIAL CATAGUASES ƒ INTERNATIONAL PAPER ƒ KLABIN ƒ LÍDER AVIAÇÃO ƒ Grupo ORGUEL ƒ MBR ƒ MINCOM INTERNACIONAL ƒ MINER CONSULT ƒ MRS LOGÍSTICA ƒ MSL MINERAIS ƒ NOVELIS DO BRASIL ƒ PUC MINAS

ƒ REFRIGERANTES DEL REY

ƒ SALESIANAS

ƒ SAMARCO

ƒ SEBRAE MINAS

ƒ SENAI MG

ƒ SESI MG

ƒ SUZANO BAHIA SUL

ƒ TELEMAR ƒ UNIMED MG ƒ USIMINAS ƒ V&M DO BRASIL ƒ VEGA DO SUL ƒ VERACEL CELULOSE ƒ VILLARES METALS ƒ VOTORANTIM METAIS ƒ WWF BRASIL ƒ A MADEIRA ƒ ACESITA ƒ ACINDAR ƒ AÇOS VILLARES ƒ ALCOA ALUMÍNIO ƒ ARACRUZ CELULOSE ƒ BARTOFIL ƒ BELGO SIDERURGIA ƒ BIOBRÁS ƒ BANCO BONSUCESSO ƒ CADAM ƒ CAEMI ƒ CARBOCLORO ƒ CENIBRA ƒ COPASA ƒ CORREIO BRAZILIENSE ƒ COPESUL ƒ COSIPA ƒ CSN

Contacts

Contacts

Rua Raul Pompéia, 77 – Cj. 301

São Pedro - 30330-080 – Belo Horizonte – MG

TELEFAX (31) 3281-9020

CELULAR (31) 9136-6997

[email protected]