样本案例分析2.pptx

Benchmarking for performance evaluationNorthlake BookstoreCase overviewvNorthlake Bookstore is located in the Northlake University in Dallas,a metropolitan in the Midwest.vIt serves the university community with a profit-centered presence and also dedicated to providing service excellence that meets or exceeds the needs of each customer and university department.vRecently,textbook sale of Northlake in fall in 2004 decreased about$180,000,or 3%of annual textbook sales.vThis was primarily due to the increase in the average price of a textbook from$50 to$150 over the last five years,as complained by the customers(students).2009-5-302vIt was realized that a significant contributor of this increase was publisher updates to textbooks more often than prior period.vWendy,the manager,reported the decreased textbook sales to the boss Chuck,and was asked to conduct a benchmarking analysis to identify performance gap with competitors.vThis benchmarking will not be limited to book department only,but will serve as a decision-making guideline for resources,process and people.vMoreover,tactics should be developed to correct such gap.2009-5-303Case overviewvWe first assume the environmental condition is simple and static,therefore,historical analysis,benchmarking,forecasting,and formal planning make sense.vIn addition,we presume current organization culture and structure is appropriate and does not impede business development.vA culture does not pose pressures for a for-profit business with aggressive sales and earning target vThe business structure functions well,facilitates communication and information.vFinally,we suppose all information provided in this cases is all what Wendy get and use,may or may not be sufficient.2009-5-304Assumptions2009-5-305Benchmarking analysis report:Performance indicators benchmarking and Problem Identification Main issuesSWOT analysisSolutions and Action Plan123After January 2004,the textbook price is relative higher than the average level,and this trend continues.In Sep 2003,Northlakes textbook price,on average,is 0.5%cheaper than the standard cost.However,in Sep 2004,its price is 3.5%expensive than the average cost.Sep 2003Jan 2004Mar 2004Sep 20040.0%0.5%1.0%1.5%2.0%2.5%3.0%3.5%4.0%-0.5%-1.0%Northlake Quarterly Textbook Benchmarking Average PricesFavourable Price DifferenceUnfavourable Price Difference2009-5-1062009-5-307COGS72.5%Labour expense12.6%All other expenses2.8%Net income12.1%Northlake Bookstore:2004 Expense and income as%of saleABCDStrategy and objective:being a profit center for UniversityNorthlakes cost structure ispresented on the left.COGS and labour expensesare two largest items.If bothof them can be reduced,thentotal cost could be reduced significantly2009-5-308%of saleBest practicie10.3%10.8%11.3%11.8%12.3%12.8%Northlake 12.6%10.30%Average 12.9%Labour expense benchmark%of saleBest practice71.30%71.80%72.30%72.80%73.30%73.80%74.30%Northlake 72.50%71.30%Average74.20%COGS benchmarkABLabor expense is a main expenditure apart from COGS.This expenditure,12.6%of saleis higher than the best practice,10.3%of sale.This is a source of cost reductionCOGS accounts for 72.5%oftotal sales.This cost can be further reducedas suggested by benchmarking results.2009-5-3090.0%0.2%0.4%0.6%0.8%1.0%1.2%1.4%1.6%1.8%2.0%2.2%2.4%2.6%2.8%3.0%3.2%All other expenses benchmarkNorthlakeBest practiceAverageTravelConsumablesInsuranceOutside ServiceTelephonePostage&PrintingRentMaintenanceOperating-UtilityC%of saleThese expenses togetherconstitute 2.8%of total sales.Overall,they are well controlledwith one exception:Proportion of operating-utilityas%of sales is above theaverage level.It offers anothercost reduction alternative.2009-5-3010DDespite the fact that labor and operation-utility costs need further cutback,its net income as a%of total sale is favourable.2002200320043.733.924.052.32.11.2Other performance measures(1/2)Faculty overall satisfactionCustomer Queing TimeStrategy and objective:service excellenceFaculty overall satisfaction and customer queing time feedbackreflect service excellent objectiveis achieved to some extent.But what about customer suggestion form?Neither any information is provided nor does Wendy intended to analyze it.2009-5-301120022003200492%93%94%95%96%97%98%99%100%95%96%97%99.4%99.5%99.6%Other performance measures(2/2)%of Coursepacks available 1st day%of Textbooks Available 1st dayService excellence is further proved by another two indicators:percentageof coursepacks availability and textbook availability,and the results from survey are presented on the left.However,one might suspect that whether these performance indicators are sufficient evidences to conclude that both Northlake bookstores customer service and faculty satisfaction are excellent.A major customer(student)might,for example,need bookstore to help them to enhance study experience,to facilitate essay writing in term of resource provider.By intuition,these criteria should be listed in survey and be analyzed for further progress.Unfortunately,they are not readily available.Hence,customer survey is incomplete in this respect,but it is not to say that its service standard does not meet anticipation.Given information available,we tend to argue that Northlakes service,generally,is excellent but need more supporting evidences.2009-5-3012Computer hardwareClass NotesNew TextsSoftware&Accessor.General BooksUsed TextsSupplies&SundriesClothing0.0%5.0%10.0%15.0%20.0%25.0%30.0%35.0%40.0%45.0%50.0%Gross Margin Over Sales2002:GM over sales2003:GM over Sales 2004:GM over SalesNew Texts,46.7%Used Texts,13.4%Class Notes,4.7%General Books,3.0%Supplies&Sundries,6.3%Clothing,11.7%Computers Hardware,7.8%Software&Accessor.,6.5%2004 Sales by Product Lines%of salesvClothing,supplies&Sundries,used textbooks and general books are Four MostProfitable Products(FMPP).vHowever,in Northlake Bookstore,thesefour items contributed only 34.4%of sales in total in fiscal year 2004.25%gross margin2009-5-30130123456789101112131415Inventory Turnovers 2004 benchmarkAverageBookstoreNew Course BookUsed Course BookTotal Course BookGeneral BooksTotal BooksComputer HardwareSoftware&AccessoriesSupplies&SundriesClothingInventory TurnoverSalesInventoryHowever,it is the relative sizedetermines the inventory turnover.The inventory turnovers for these items,which account for more half of total sales,are apparently higher than average.This may suggest inadequate inventory stocks.2009-5-3014AverageBest practiceNorthlake020040060080010001200140016001,0251,1871,338Sales per FTE student($)12,708#FTE students19,788#FTE studentsThousandsAverageBest practiceNorthlake0100200300400500600445537383Sales per FTE employee($)30#full-time30.1#FTE 30#full-time26.4#FTE Employees sales is below average level.Either inspect working efficiency or considers full-time personnel reduction.Students market saturates,given number of students andsales per FTE students.2009-5-3015Percentile quartile comparisonNorthlakeAverage75th percentile 0-25th25th-50th 50th-75th 75th-100th Total Space in Square Feet22,50023,49532,025Sales per sq.ft.of Total Space$741$1,229$1,323Sales per sq.ft.of Selling Space$1,112$1,857$1,881Ratio:Selling to Storage Space3.3:13.4:15.8:1Average#of part-time employee92341#of Hrs Store is Open per week525558These figures indicate Northlakes bookstore is relative large,and may signals better customer service.This benchmark criteria implies Northlake could shrink its storage space,in other words,to rearrange its bookstore layout.Hypothesis made here could be hiring part-time employee as a means of labor expense reduction.It is possible to change bookstores employees structure.Does open hour affect sale revenue?Apparently,bookstores working hour per week is less than average.2009-5-30160.0%10.0%20.0%30.0%40.0%50.0%60.0%52.45%28.70%Used textbook sales as%of new text sales northlakeAverage41.49%0.0%10.0%20.0%30.0%40.0%37.93%20.70%Used textbook sales as%of course book salesnorthlakeAverage28.23%vUsed text sales as a percentage of both new text sales and course book sales is relatively lower compared with both average and 75th percentile.vHowever,used textbook are the most profitable selling item in BOOK category.vIf proportion of used textbook is structurally promoted,there will be a positive impact on revenue after all.2009-5-301725th percentile75th percentileNorthlake1.0%4.5%1.9%Online sales as%of total sales Average3.1%vThe online sales is only 1.9%of total sales,which is much lower than 3.1%industry level,and 4.5%best practice.vWeb/Web and mail ratio from 2003 to 2004 implies no advancement in online sales.vHowever,online sales is a main source of future sale growth,as well as competition.vTherefore,online marketing is pivotal short-term and long-term strategy.1st 20032nd 20033rd 20034th 20031st 20042nd 20043rd 20044th 200487.40%81.10%88.30%84.30%93.40%80.80%88.50%79.80%Web/Web and mail ratio 2009-5-3018Benchmarking analysis report:Performance indicators benchmarking and Problem Identification Main issuesSWOT analysisSolutions and Action Plan1232009-5-3019StrengthsThreatsOpportunityWeaknessvExcellent service and one-stop back-to-school provider.vAbundant academic resources.vAmple goods and service available:textbooks,supplies,clothing and gifts,computer and software,and much more vOperation-utility cost is ineffective controlled and labor expense does not adjusted accordingly.vCustomer service survey is inadequate to support decision making,and customer suggestion does not incorporated in the decision process.vFull-time employees working inefficiency and#of part-time employee is below average level.vOnline-sale is below average.vInappropriate sale structure vOnline vendors textbook price competition.vIncreasing unfavorable price difference with best practice.vLate or inaccurate book orders from faculty.vFocus on used textbook advertising and exploit its benefits.vOnline textbook vendor partnership and e-Textbook development.vCorporation with University Alumni Advancement(funding)Office and contract for sole merchandise supplier.2009-5-3020Benchmarking analysis report:Performance indicators benchmarking and Problem Identification Main issuesSWOT analysisSolutions and Action Plan123Key Existing Problems1.Low online sale as a percentage of total sale2.Inappropriate sale structure3.Undesirable employees operational efficiency4.Unfavourable labour and operation-utility expenses5.Further concerns2009-5-3021Action plan:Short-term goals1.Promote online saleOnline-sale is a vital channel to expand markets.Provide new e-business.For example,to offer a collection of links to vendors whose products can enhance students college experience;provide eTextbooks to students,faculty,and institutions.Build up mailing service with customers to upgrade goods/service information.Redesign website in a better format.2009-5-1022Action plan:Short-term goals2.Optimize sales structureIncrease the sales of Four Most Profitable Product(FMPP),clothing,supplies&sundries,general books and used textbooks by advertising on website and promoting sales in bookstore.Expand students used textbook product line by communicating with university professors to find out which used textbooks could be re-used,in order to increase their usage rate 2009-5-1023Action plan:Short-term goals3.Increase operational efficiencyThe service quality of temporary staff must be guaranteed.Wendy should consider designing a service training program for new personal and refresher training for continuing personnel.Customer perceived values are pivotal indicators for business to search operational excellence,thus customer survey criteria should be refreshed.Customer suggestions should be in verbal form:it is communication between staff and customers matters.2009-5-1024Action plan:Short-term goals4.Cost reductionLabor expense and operating-utility cost can be further reduced.Is it possible to reduce full-time employees without reducing service quality?How many full-time employees are plausible and accepted?(Solely depends on superior performance does no make any sense but to realize the unique attributes,objectives and policies of Northlake bookstore)If full-time employees are cutoff and recruit temporary staff,then service quality of temporary staff must be guaranteed.Wendy should consider designing a service training program for new personal and refresher training for continuing personnel.2009-5-1025Action plan:Short-term goals5.Further concerns:Possible inadequate inventory management,particularly for books.More historical sales data needed.Late or inaccurate faculty book order.Wendy needs to design another on-time and accurate booking system.2009-5-3026Long-term MeasurementFrom long-term perspective,to promote sale amount and change sale structure,Northlakes measurements should include following:A dynamic pricing model:closely compare textbook prices with the benchmark pricesRegularly examine sales per FTE employeeOnline-sale as a%of total saleFMPP*as a%of total sale 2009-5-1027*FMPP=Four Most Profitable Products