Continuous improvement entails determining where an operation stands and planning how to make it better.
Benchmarking is a process of continual improvement. Through analysis and action, benchmarking provides a systematic approach to improving production efficiency and profitability.
Analysis begins with asking questions, such as: What is the standard level of performance? Who is the best? How do I compare with the best? How do I compare to others across the industry?
Answers to such questions are now available through the National Pork Producers Council (NPPC) Production and Financial Database. In a benchmark percentile table of breeding herd productivity (Figure 1), a popular standard measure of the output of the breeding herd is weaned pigs/breeding female/year. (WP/BF/Y).
Referring to the values in the body of the table, we see that the 90th percentile value for WP/BF/Y is 22.77. This means that less than 10% of herds in the database are producing more than 23 WP/BF/Y.
The value for our farm (org value) is 20.31, shown in the column at the far right. The shaded cell for this standard measure of output provides more information about our farm. Our value of 20.31 is closest to the 60th percentile value of 20.24. By interpolation, we can estimate that our value is at about the 61st percentile. This tells us that our productivity is better than 60% of the 55 farms represented, but it also shows that 39% of the farms are producing more pigs/breeding female/year.
Once we know where we stand, the benchmarking process continues by digging deeper. If 39% of the comparable farms are producing more WP/BF/Y, there is definitely scope for improvement. How, then, can we improve?
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