SPIN Benchmarking

Content

• Introduction to D4S Benchmarking. What? Why? How?

• Different kinds of Benchmarking• The 10 Step D4S Benchmarking approach• Lessons learnt

Benchmark

4

D4S benchmarking

Benchmarking is the process of improving the performance of an existing product by continuously identifying, understanding, and adapting outstanding practices and processes found both within and outside of the organization.

PlantBottle PET

soilwrap

Why D4S Benchmarking?

• Copying or benchmarking is often the most common way of product development in SME (as well as in bigger companies).

• By looking at and learning from competitors new products for the company itself are developed or improved.

• Often however the environmental aspect is being ignored. As a result often the ‘copy’ products are even more worse for the environment compared to the original products.

• D4S Benchmarking supports the company to make its products more competitive, cost efficient as well as cost-effiecient

Why D4S benchmarking of products?

• Know what you are talking about.

• Know where you stand with respect to demands for customers, legislation.

• Find out where you can save money.

• Know where you stand with respect to competition

• Be able to set priorities and to integrate environment into product development process.

Characteristics of Benchmarking

• Comparison with competition; relative not absolute

• Technical language and tangible units instead of environmental indicators: , kg, %, m, l, …

• Learning by doing; do it yourself – visible.

• Easy to integrate into business process; environmental specification of products

Environmental benchmarking

Advantages:• Improvement potential• Learning by doing• Time / money • Business link• Communication• Control • Feasibility • Relative

Limitations:• Only redesigns• Only incremental

Different kinds of Benchmarking

D4S benchmarking

Processes/ Strategies

Products / Services

Internal Against internal targets

Against previous models

External Traditional benchmarking

D4S benchmarking

Comparing against older models

Comparing with competitors or other product lines

Different kinds of D4S BenchmarkingThe D4S Benchmark can be based upon:1. Physical products of competitors which can be measured, dismantled

and being analysed in detail.2. Information of products of competitors gathered form the internet,

visiting fairs and looking in shops. The first provides more insights but is also more cost and time intensive

since the products have to be purchased and analysed in details.

The D4S Benchmark can be done in two ways:1. Light version: An all in one worksheet. This suitable for simple

products as well as when the financial and staff resources are limited. 2. Extended version: 10 worksheets

Different kinds of D4S Benchmarking

The 10 Step D4S Benchmark approach

Step 1 – 5 D4S Benchmark

Step 6 – 10 D4S Benchmark

Step 1: What are the objectives of the D4S Benchmark?• There are many reasons to initiate a D4S Benchmark. It

is essential to discuss the objectives. This will have an impact on the D4S Benchmark design and will assist in identifying the the products to be studied and the parameters used to make comparisons.

• Possible objectives for a D4S Benchmark could be:• To Learn from worldwide competition in order to enter an

international market.• To know-how the product scores in comparison to local

competitors• To get inspiration for environmental improvements• Etc.

Step 2: How to select products for the D4S Benchmark

Based upon the defined objectives in Step 1 the product could be selected by:

1. Identifying the leading products in the sector (local, regional or international)

2. Select products in the same specific market (target group, price/quality etc.)

3. Identify products that illustrate ‘best practice’ or ‘worst practice’

Step 3: What is the functional unit and system boundary of the D4S Benchmark• The context in which a product will be used

influences the result of a benchmark. To make a clear comparison of products it is essential to describe the function, the context, user scenario and system boundaries.

• This is usually referred to as ‘functional unit’ and enables a ‘fair’ comparison.

Functional Unit: drinking 1,5 liter bottled water

But how much is used….

Exercise

• 5 groups• Each group 1-2 experts from Seafood or Tea

group

• Choose one of the products to be ‘your’ product

• Fill in Worksheet 2.6.A, B1 2 3

Step 4: What are the focal areas for the D4S Benchmark?

• To determine the main product variables to be benchmarked, it is necessary to identify what issues or focal areas are of ‘environmental relevance’.

• Typical Focal areas for pakaging:• Environmental aspects of food and packaging:Materials, amount, layers, reuse, recyclability, ….• Protection of the food• Distribution • Communication• Ease of use• Perception/value for users

Step 5: How to translate the focal areas into measurable parameters?• With the focal areas identified, the next step is

to translate them in measurable variables.• The challenge is to translate these ‘qualitative’

focal areas into quantifiable variables.

Exercise: Fill in 2-6-B, B5

• Define focal areas• What topics?• Objective to choose the focal area?• If possible describe parameters (soemtimes

only qualitative description)

Step 6: How to organize a disassembly sessionIn a ‘physical’ D4S benchmark, the next step is to organize a disassembly session. To get the best results it is worthwhile to plan well and structure it methodologically

Disassembly session for food (packaging)

•Opening the packaging, easy - difficult?•Food quality ?•Amount of packaging, number of packaging layers, double/triple packaging, printing•Packaging materials•Protection of the products when open?•Storing/closing of packaging•Distribution when open?•Taste the products , taste, texture …•User aspects•Perception

Step 7: How to process and compare the outcomes of the D4S Benchmark• After the collection of all the relevant

information for the D4S Benchmark focal areas, the next step is to process the data.

• It is advisable to prepare fact sheets for each focal area summarizing the compiled information to make the information more easily interpretable.

Step 8: How to review the results and to generate improvement options

• During the disassembly session and the other steps of the benchmark “smart solutions” of competitors and “silly solutions” in the company’s own product will be encountered. Use these findings to generate improvements for your product

• Go through the list of options in the Guide on page 80, sub-strategies for SPIN

Compostable cellulose film packaging line

Organic Kiwis

Twinings tea

Step 9: How to evaluate and prioritize the improvement options• Environmental benefits: an assessment of whether the

improvement option reduces environment impacts along the product life cycle.

• Consumer benefits: an assessment of whether the consumer is likely to accept the option as a benefit.

• Societal benefits: an assessment of to what extent society will benefit from the proposed improvement.

• Company feasibility• Technical feasibility: an assessment of whether the improvement options are

technically feasible (and timely). • Financial feasibility: an assessment of the financial viability each of the

improvement options.

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Evaluating options: Ecodesign Matrix

Options Benefit Feasibility

Environment

Business Customer Tech Financial

#1

#2

#3

#4

#5

Exercise step 1

• find improvements form the silly and smart solutions

• Find other improvement options• Make a list of the improvement options (fill

worksheet B8)

Exercise step 2

• Select the best feasible 5 options , put in worksheet B9

• Evaluate the improvement options on the criteria,

(--,-,0,+,++) worksheet B9• Environmental benefits• Consumer benefits• Company benefits• Technical benefits• Financial benefits• Managerial benefits

Step 3: How to implement the improvement options?

• We move to Phase 3, Product Development (same as redesign steps done yesterday)

• We will skip the project brief (same as yesterday)

• Starting from the improvement options:• Concept generation (only one concept)• Present sketch of your companies improved product

Lessons learned from Benchmarking• Awareness

• I never realized that …• my competitor is better in …

• Big differences• for ‘new’ products • also for products at end of learning curve

• Improvement potential • no brand scores consistently best

• All focal areas affected

• Strong basis for improvement