A Strong Case for Benchmarking
Here's Why It's Important and How to Use It
By Dr. Stephanie Rutten, University of Minnesota
"Benchmarking" is a common buzzword in pork producer vocabularies. But what does it mean and why is it relevant? Most importantly, how can you use benchmarking to improve your operation?
The term "benchmark" was originally used by surveyors, who placed "benchmarks" on high points in the landscape that were then used as references for describing the area terrain. Most literally, then, a benchmark is a point for comparison. Pork producers have many benchmarks at their fingertips. In addition to annual government production reports, computerized databases such as PigCHAMP and PigCare are summarized periodically and offer producers industry performance information on select parameters. Such metrics, often reported as averages or percentiles, provide producers a sense of how their herd performance compares with the competition.
Unlike the term "benchmark", "benchmarking" refers to an active process. Specifically, it is the process of using benchmarks to identify areas for improvement, strategies to achieve improvement and implementation of those processes. Benchmarking is commonly used by corporations to improve productivity and efficiency, and to gain a competitive edge. Successful pork producers use benchmarking for the same reason.
Benchmarking Components
There are several key components to consider for effective benchmarking. First, identify the parameters that drive production. For example, if you want to increase pigs weaned per mated female per year, identify the factors that contribute to that number, such as litter size, piglet livability, conception rate and farrowing rate. To increase average market weight, look at factors such as pig age at market, average daily feed intake, health issues and feeding programs. Next, set realistic expectations for improvement. Since you are looking for processes that yield continuous, sustainable improvement, focus your energy on key areas of improvement, not just on simply "being the best".
Third, successful benchmarking requires accurate records and fair evaluations of all process components. It's difficult to address the processes you don't know are occurring, and it's not possible to accurately assess improvement with inaccurate information. At the end of the day, a successful benchmarking endeavor will provide not only better metrics, but also gains in efficiency/productivity and a stronger competitive edge. Lastly, identify the strengths in your operation as well as the strengths in other operations, to find the processes that yield successful benchmarks.
Tools for Benchmarking
How do you practice benchmarking? Large, multi-farm operations use production records to identify differences between struggling units and successful units, then implement changes to make all the farms more similar. Some producers make regular use of industry consultants, who, during visits and discussions, acquaint producers with outside ideas that have been successful in the industry. As well, producers may rely on industry newsletters, trade magazines and regional expos to bring information on other approaches to production.
There are internal sources of improvement, too. When you or your staff makes a change and results are monitored, the change that brings improvement will often be incorporated into standard practices. In this case, benchmarking is done through comparison of pre-change performance to post-change performance, and improvement is attributed to the new practice.
Here's How to Start
To begin benchmarking in your herd, first identify areas of opportunity. What would improve your productivity the most? Next, consider what factors directly and indirectly impact performance in that area. Are other operations more successful in achieving your desired results? Look at key production indicators to identify strengths that might contribute to success. Are there different protocols or processes that could be implemented in your operation? If so, and you decide to implement a new process, it is important to monitor and assess results to determine if it truly makes a difference. If not, repeat the process.
Practical Application
Let's consider this benchmarking example: A sow unit has been challenged by insufficient total weaned pig output, which has led to underutilized nursery and finisher space. Total weaned pig output is influenced by the number of sows bred, number of pigs born alive and piglet livability. To affect change, consider what drives each of those factors.
The number of sows bred is affected by the number of animals available to be bred, conception rate and subsequent farrowing rate. More factors affect born alive, including genetics, the type of sow bred (i.e., weaner, stale sow, gilt or rebreed), insemination practices (i.e., semen quality, mating timing, a.i. or natural) and farrowing practices. Farrowing practices also affect piglet livability, as do birth weight, health, weaning age and genetics.
Because this particular unit has good overall farrowing performance and a fixed genetic program, improvement efforts are focused on the number of animals available to be bred, conception and farrowing rates, and piglet birth weight. In-unit changes include establishment of a required inventory, thereby providing adequate animals in the unit to be bred; AI technician training to improve heat detection skills; regular feedback on individual technician conception rates; and late-gestation feeding practice modification to improve fetal weight gain. As a result of the implemented changes, the unit consistently fulfills weaned pig output requirements.
Added Value for Customers
PigCHAMP is now distributing quarterly performance benchmarking reports to customers who send in their production data in a timely manner. Each report provides producers with a sense of how his or her herd performance compares with other operations in the industry. Additionally, each report will explore a different performance parameter for those producers who choose to implement benchmarking, with analysis by researchers at the University of Minnesota. This provides producers with an added tool to benchmark and improve competitiveness within this dynamic, ever-changing industry. |