样本案例分析2.ppt

1、Benchmarking for performance evaluation,Northlake Bookstore,Case overview,Northlake Bookstore is located in the Northlake University in Dallas, a metropolitan in the Midwest. It serves the university community with a profit-centered presence and also dedicated to providing service excellence that me

2、ets or exceeds the needs of each customer and university department. Recently, textbook sale of Northlake in fall in 2004 decreased about $180,000, or 3% of annual textbook sales. This was primarily due to the increase in the average price of a textbook from $50 to $150 over the last five years, as

3、complained by the customers (students).,2009-5-30,2,It was realized that a significant contributor of this increase was publisher updates to textbooks more often than prior period. Wendy, the manager, reported the decreased textbook sales to the boss Chuck, and was asked to conduct a benchmarking an

4、alysis to identify performance gap with competitors. This benchmarking will not be limited to book department only, but will serve as a decision-making guideline for resources, process and people. Moreover, tactics should be developed to correct such gap.,2009-5-30,3,Case overview,We first assume th

5、e environmental condition is simple and static, therefore, historical analysis, benchmarking, forecasting, and formal planning make sense. In addition, we presume current organization culture and structure is appropriate and does not impede business development. A culture does not pose pressures for

6、 a for-profit business with aggressive sales and earning target The business structure functions well, facilitates communication and information. Finally, we suppose all information provided in this cases is all what Wendy get and use, may or may not be sufficient.,2009-5-30,4,Assumptions,2009-5-30,

7、5,Benchmarking analysis report: Performance indicators benchmarking and Problem Identification,Main issues,SWOT analysis,Solutions and Action Plan,After January 2004, the textbook price is relative higher than the average level, and this trend continues. In Sep 2003, Northlakes textbook price, on av

8、erage, is 0.5% cheaper than the standard cost. However, in Sep 2004, its price is 3.5% expensive than the average cost.,2009-5-10,6,2009-5-30,7,A,B,C,D,Strategy and objective: being a profit center for University,Northlakes cost structure is presented on the left. COGS and labour expenses are two la

9、rgest items. If both of them can be reduced, then total cost could be reduced significantly,2009-5-30,8,A,B,Labor expense is a main expenditure apart from COGS. This expenditure, 12.6% of sale is higher than the best practice, 10.3% of sale. This is a source of cost reduction,COGS accounts for 72.5%

10、 of total sales. This cost can be further reduced as suggested by benchmarking results.,2009-5-30,9,Travel,Consumables,Insurance,Outside Service,Telephone,Postage provide eTextbooks to students, faculty, and institutions. Build up mailing service with customers to upgrade goods/service information.

11、Redesign website in a better format.,2009-5-10,22,Action plan: Short-term goals,2. Optimize sales structure Increase 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 st

12、udents 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,2009-5-10,23,Action plan: Short-term goals,3. Increase operational efficiency The service quality of temporary staff must be guarante

13、ed. 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 sho

14、uld be in verbal form: it is communication between staff and customers matters.,2009-5-10,24,Action plan: Short-term goals,4. Cost reduction Labor expense and operating-utility cost can be further reduced. Is it possible to reduce full-time employees without reducing service quality? How many full-t

15、ime 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 b

16、e guaranteed. Wendy should consider designing a service training program for new personal and refresher training for continuing personnel.,2009-5-10,25,Action plan: Short-term goals,5. 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.,2009-5-30,26,Long-term Measurement,From long-term perspective, to promote sale amount and change sale structure, Northlakes measure