Strategic Supply Chain Management - Supply Chain Online

APPENDIX A Source and Methodology for Benchmarking Data 265
In order to remove industry bias within the metric values, each of
the four components of the index was normalized for each organization
over the industry average for the organization. For example, if a specific
consumer-goods company’s delivery performance is 99 percent, and
the consumer goods industry average for delivery performance is 90
percent, then the company’s normalized delivery performance value =
(99/90), or 1.1. The score derived from the sum of the four normalized
values produces the BICC index.
The BICC index was used to segment the population into three subpopulations:
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◆
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Best-in-class companies (BICCs). Top 25 percent of the population,
or 22 companies in this case.
Median companies (median). Middle 26 to 75 percent of the
population, not the statistical median, or 45 companies.
Worst-in-class companies (WICCs). Bottom 25 percent of the
population, or 22 companies.
FIGURE A–3
BICC population by industry segment.
Process 9%
Consumer Goods 32%
High Tech 59%
Number of Businesses / Data Sets = 22
© Copyright 2004 The Performance Measurement Group, LLC