【正文】 municating clearly about goals, deadlines, and responsibilities。Author: Laird Reed Reviewers: Sarah Millard, Jason Trevison bc BDP March 1998 Copyright169。 1998 Bain Company, Inc. 1 CU7030298IMB BDP Agenda ?The Best Demonstrated Practices (BDP) Concept ?Applications ?BDP Steps ?Client Example ?Key Takeaways 2 CU7122997KRA BDP Agenda ?The Best Demonstrated Practices (BDP) Concept ?Applications ?BDP Steps ?Client Example ?Key Takeaways 3 CU7122997KRA BDP Description *Whereas an RCP always deals with costs, a BDP could deal with costs or revenues BDP is used to identify the best practices those leading to the most revenue at the least cost inside of or outside of a pany. BDP practices leading to the most revenue at the least cost* Internal External Between anizations Historical Competitors Companies in different industries 4 CU7122997KRA BDP Internal vs. External Internal BDPs are more straightforward to conduct than are external BDPs, but they tend to lead to less dramatic, though often significant, change. Gathering data: Degree of change: BDP Internal External Between anizations Historical Competitors Companies in different industries Straightforward Continuous improvement Difficult Dramatic change 5 CU7122997KRA BDP Possible Reasons for Better Performance ?More consolidated supply (VMRs) ?Lower cost raw materials ?Higher quality raw materials ?More parts outsourced ?More parts made in lowercost countries Products ?Simpler products ?Fewer product variations Plants ?Fewer, more highlyfocused plants ?More efficient production process (longer runs, less waste) ?Better equipment ?Better quality control Labor ?Longerterm contracts ?Better structured incentives ?Better supervisortolabor ratio Following is a list of possible reasons some panies perform better than others: Purchasing Manufacturing Distribution Selling ?Better delivery method (truck vs. train vs. airplane) ?More (or less) frequent deliveries ?Larger (or smaller) delivery sizes ?Better trained salesforce ?Larger salesforce ?Better anized salesforce (by region, by product, by industry) ?Better structured incentives 6 CU7122997KRA BDP BDP in Theory In theory, by applying BDP practices, you could create a BDP pany. Purchasing Manufacturing Distribution Selling Corporate Purchasing Manufacturing Distribution Selling Corporate Purchasing Manufacturing Distribution Selling Corporate Client Competitor A Competitor B BDP Company NonBDP BDP 7 CU7122997KRA BDP BDP in Practice In practice, BDP analysis is used only in areas of the pany where it can have a significant impact. Manufacturing BDP Salesforce BDP NonBDP BDP Situation: Before BDP: After BDP: Corporate Purchasing Manufacturing Distribution Selling Corporate Purchasing Manufacturing Distribution Selling Manufacturing costs are a significant portion of total costs, and the client is far from BDP in manufacturing. Revenue per sales representative is a major driver of profitability, and the client’s sales representatives are far from BDP in revenue per representative. Corporate Corporate Actions: ?Purchase new equipment ?Rearrange equipment to improve production flow ?Recycle waste ?Decrease supervisor to labor ratio ?Increase amount of training ?Reanize salesforce by industry ?Restructure incentives to encourage crossselling 8 CU7122997KRA BDP Reasons for Using BDP Because BDP is simple, pragmatic, and positive (it focuses on what the client does best), it helps us achieve results. BDP helps us achieve results Simple Pragmatic Positive ?Simple methodology ?Easy to explain to client ?Straightforward to implement ?Easy to measure results ?Focuses on existing business ?Focuses on most leveraged areas ?Allows for quantification of potential improvement ?Leads to concrete actions ?Builds morale at the client by focusing on what client does best ?Provides a framework for continuous learning 9 CU7122997KRA BDP Agenda ?The Best Demonstrated Practices (BDP) Concept ?Applications ?BDP Steps ?Client Example ?Key Takeaways 10 CU7122997KRA BDP Applications ?A large European paperboard manufacturer operated seven plants throughout Europe. A Bain team analyzed unit costs at each plant and identified a number of best practices worth $20MM or 40% of total operating expenses. ?A Spanish steel producer’s margins wer