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Simulation-based performance analysis and benchmarking

Author

Listed:
  • Gert Zulch
  • Andreas Rinn

Abstract

Benchmarking has become a famous slogan in the recent past, so many companies are in discussion about measuring their performance and comparing the results with other enterprises. Due to confidentiality of information, companies tend to be cautious about comparing themselves with competitors. Therefore, one idea is to introduce generic benchmarking by comparing totally different business processes that are similar only in a specific way. Another approach is to use computer-based simulation methods and to run alternative models of companies in the simulation, then compare the results. This approach is based on two factors: a clear definition of key performance indicators and the availability of sophisticated simulation tools. This paper intends to demonstrate how both factors can be supported by a structured performance analysis and the benefit of simulation-based benchmarking. Furthermore, the paper will show how continuous benchmarking will be supported by simulation in the future.

Suggested Citation

  • Gert Zulch & Andreas Rinn, 1999. "Simulation-based performance analysis and benchmarking," International Journal of Business Performance Management, Inderscience Enterprises Ltd, vol. 1(2), pages 200-218.
    • Handle: RePEc:ids:ijbpma:v:1:y:1999:i:2:p:200-218
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