A Model for Streamlining Benchmarking in Sustainable Development of Industries

By inergency On Mar 21, 2024

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3.1. The Company Activity

The company has a wide portfolio of activities. The entire concern is divided into four main areas, which are construction, residential development, commercial development, and infrastructure. From the point of view of the global group, it operates in the Czech and Slovak Republics in all the aforementioned areas; however, the company is only active in construction and residential development. Other spheres of activity fall under other branches of the holding. The core business mainly concerns construction activities, especially in the fields of transport, civil, housing, engineering, and industrial construction, as well as the development activities and facility management. The company undertakes its business mainly through its activity, but also through subsidiaries with different focuses in the Czech Republic and Slovakia.

It is advisable to further specify the individual subjects of the activity. In the field of housing construction, the company also focuses on the construction of housing units and complexes in terraced or individual houses. In civil buildings, the company is a supplier of business premises in shopping centers, administrative buildings, sports centers, hotels, airport terminals, and educational facilities. At the same time, it also focuses on the reconstruction of historical buildings. The company is a supplier of various industrial buildings, mainly production halls with a load-bearing structure made of reinforced concrete or steel, including engineering and telecommunication networks. It also focuses on the construction of logistics and warehouse centers.

Activities in engineering and ecological constructions are most often associated with water supply and sewerage, pipe systems, wastewater treatment plants, low-energy buildings, and landscape and orchard improvements.

In the area of road construction, the company mainly implements expressways and motorways. Together with this, it is a supplier of linear constructions, urban roads, cycle paths, and airport areas. From a technological point of view, it deals with concrete and asphalt roads and airport areas, as well as the production of asphalt mixtures and concrete mixtures. The company is also an important contractor of railway construction. In this area, the company is most active in the modernization, optimization, and reconstruction of railway corridors and regional lines, as well as the construction and reconstruction of railway stations and sidings. The company also deals with urban rail transport and owns a network of concrete plants, manufactures steel and reinforced concrete structures for other construction entities, engages in specialized construction activities (for example, ecological disposal of asbestos or geodetic surveys), and, for external customers the company offers the rental of construction mechanization, as well as services and facility management.

3.2. Analysis of Heavy Machinery in Selected Quarries

Within the company, as mentioned above, a benchmark concerning the best parameters within the machines located in the quarries will be discussed. The company needs to find out which of the subsidiaries could serve as a model example for the improvement of the parameters and even the convergence of others. A very interesting part is the environmental component, which is also monitored in the company in order to reduce the burden on the environment introduced by emissions, and the company wants to know which of its branches has the idlest engine hours (a situation where machines are waiting to work with the engine on). The following groups of machines were selected from the overall list, taking into account their work directly in the quarry. The data obtained from the company for selection and processing for the year 2022, a period determined due to the pandemic, were not relevant enough. If we were to use the pandemic period, it would not be possible to objectify the information, as the years 2019–2021 were not within the standard because the company was partly closed due to the situation with COVID-19, and from this point of view, the data are not sufficiently relevant for processing. The year 2022 was the first in which it was possible to realistically evaluate consumption and motor hours, as the operations worked without restrictions during the entire monitored period.

The first examined group comprised tracked excavator machinery. In selected countries, a group of excavators over 35 T was selected. A tracked excavator differs from a typical excavator, due to the added tracking system instead of wheels on most excavators. The steel tracks provide the excavator with further resistance and grip on the surface they are operating on. Tracked excavators, also known as crawler excavators, are heavy equipment machines commonly used in construction, mining, and other industries for digging and excavation tasks. They are designed with a set of tracks or crawlers that provide stability and mobility on rough terrain, allowing them to operate in a variety of conditions.

Tracked excavators are typically equipped with a long, articulated arm or boom that is attached to a bucket at the end. The arm is operated by hydraulic cylinders, allowing the operator to move the bucket in a wide range of motions and to dig deep into the ground. The bucket can also be swapped out with other attachments, such as a breaker or grapple, to perform other tasks.

Often referred to as cranes or hoes, a track excavator is a common piece of equipment that is used when digging large holes. There are many uses for a track excavator. Digging ditches and basements, demolition, and breaking up structures are just a few. Table S1 (Supplementary Materials) describes the devices located in the studied countries as well as their average consumption in terms of engine hours (L/wh). Figure 1 presents a comprehensive summary of devices by manufacturer and country, with the cumulative number of single machines.

For tracked excavators, the priority areas were set for benchmarking evaluation. Among the investigated companies, three that are important in terms of data complexity were selected, which vehicle fleets were interesting due to their wide range (Figure 2). For tracked excavators, items such as the average consumption of the given stationary equipment in the global context of all participating countries were used, as this totalized value reflects more accurate values that give a better perspective on the reality of the consumption of individual machines. Another important component was the age of the self-heating equipment, as this has a significant effect on consumption as well as the necessity of shutdowns due to unrefined repairs that cost a lot of money. Subsequently, the actual service routines that are performed every 250 motor hours were considered. One of the monitored areas was the utilization of the given devices, mainly related to the correct setting of the number of devices. More comments on Figure 2 can be found in Section 3.3.

The second compared group comprised wheel loaders. These are pieces of heavy equipment usually found in construction projects and building sites. Wheel loaders are heavy equipment machines used in construction, mining, agriculture, and other industries for loading materials such as dirt, gravel, sand, rocks, and other loose materials. They are typically equipped with a large bucket at the front, which can be raised and lowered using hydraulic cylinders, and can also be tilted to dump the load into a truck or other receptacle. Wheel loaders can load and transport a variety of materials, such as earth, sand, gravel, and rocks. Since they use wheels, their mobility on roads is better, and they do not damage asphalt or concrete. Wheel loaders come in a range of sizes and configurations to suit different applications. They are typically powered by diesel engines and are equipped with large, heavy-duty tires for traction on rough terrain. They can be operated by a driver seated in a cab or by remote control. In this study, large loaders with a power of more than 135 kW, which are suitable for work in quarries, were selected. As for the tracked excavators and wheel loaders, the number of devices from specific manufacturers was considered to measure the preferences of the investigated company. Table S2 (Supplementary Materials) describes the devices located in the studied countries as well as their average consumption in terms of engine hours (L/wh). Figure 3 presents the number of individual devices by country and manufacturer.

For wheel loaders, the priority areas were set for benchmarking evaluation. Among the investigated companies, three were important in terms of the complexity of the data, and the vehicle fleets were also interesting for their wide range (Figure 4). Subsequently, the service processes, as already mentioned above, were considered. These were carried out in regular cycles according to the manufacturer’s recommendations. One of the monitored areas was the utilization of the given devices, mainly via the correct setting of the number of devices as well as the optimization of costs. It is important to mention that the COVID-19 period affected the age of the given equipment, as there was an interruption of supplies from the supplier. As with passenger cars, chips, and other technological devices needed in the supply chain, they also failed. In this case, the delivery time was extended from 6 months to 18 months. In another case, equipment that, under other circumstances, would no longer be in the company’s fleet had to be used. More comments on Figure 4 can be found in Section 3.3.

The last comparison group is composed of rigid dumper payloads. As part of the investigation, the number of countries in which the given equipment is used in mining works and quarries was assessed. Rigid dumpers, also known as rigid dump trucks, are heavy equipment machines commonly used in mining, construction, and other industries for hauling materials. They are designed with a rigid frame and a dump body that is mounted on top of the frame. The dump body is hydraulically operated and can be raised and lowered to dump the load. The payload capacity of a rigid dumper depends on the size and configuration. Smaller rigid dumpers used in quarries and construction sites typically have a payload capacity of 20–30 tons. Larger rigid dumpers used in mining applications can have a payload capacity of up to 400 tons or more. The payload capacity of a rigid dumper is determined by several factors, including the size of the dump body, the strength of the frame, and the power of the engine. Other factors that can affect the payload capacity include the weight of the machine itself, the terrain, and the distance that the materials need to be transported. Table S3 (Supplementary Materials) describes the devices located in the studied countries, as well as their average consumption in terms of engine hours (L/wh). The heavy machinery used in selected companies is overviewed in Figure 5.

For rigid dumper payloads Figure 6). It is also important to mention that the COVID-19 period affected the age of the given equipment, as there was an interruption of supplies from the supplier. In this study, equipment that under other circumstances would no longer be in the company’s fleet also had to be used. More comments on Figure 4 can be found in Section 3.3.

Based on the findings, countries that did not have all the necessary data were eliminated from the group of subsidiaries of interest, as benchmarking would not be suitable for them. In this case, when all relevant information is not fully represented, it is necessary to completely exclude countries like Croatia, Poland, and Slovakia from the benchmarking.

3.3. Benchmark Identification and Prioritization

In order to establish a benchmark, the overall state of all sub-variables was evaluated (Figure 7). As not only the company branches but also the provided services were considered, the KPIs for the identification of benchmarking for the partners were related not only to the studied machines, but also to other equipment. This fact resulted in different KPIs. While Figure 7 includes all the considered countries, Figure 2, Figure 4 and Figure 6 present an exact comparison of the real state of the benchmarked company, and only include the selected countries as discussed in Section 2.1 and Section 2.2. The values of the score (Equation (1)) were obtained as a sum of weights based on keywords. The given levels of the indicators (Target/Benchmark/Std) were quantified directly by the analyzed company. The red dash lines represent the values of particular parameters that were set based on the internal requirements of the company, not representing an average value but the highest limit value, determined by the type of vehicle. After the detailed analysis, the individual quarries in the countries and their equipment were sufficiently mapped, and thus the overall summary was much more effective. Using the processed data, after the basic evaluation, the countries that did not meet all the variables entering the process were eliminated. It was necessary to exclude these countries, as they would distort the overall process and course of benchmarking. These items included reducing the time when devices are idle. This activity can be monitored by telematics, which is a system for collecting operational data. Telematics collects information and data for GPS monitoring, consumption, engine speed, error messages, and others. Based on this information, it is possible to predict the overall condition of the machine, as well as its optimal use. Another item investigated was the length of maintenance for operational machines, which is carried out after every 250 motor hours. As part of the given maintenance, the time per machine is approximately one work shift, but of course, its utilization and the space itself wherein the equipment is located have a high influence on the length. If the machine is operated in difficult conditions, usually the maintenance time reaches the upper limit of the required time. If hidden defects are discovered during routine maintenance, it is even longer, depending on the difficulty of the repair, the availability of spare parts, etc. The number of vehicles and their age were also investigated, as the state of the vehicle fleet has a direct impact on cost optimization and repair requirements. Fuel consumption and its monitoring are important for determining average values for calculating total costs. In this case, telematics is also used, which monitors deviations from the set values given by the manufacturer as well as within the internal monitoring of operations. Then, the monitoring of devices and performing of additional analyses that should help optimize consumption can be started.

To derive a better set of priorities, a prioritization matrix was applied as the basis for the evaluation of which part should occupy a leading place for the company in order to ensure effective management. Figure 8 shows the calculation, as well as the inputs that were identified as problematic and the subsidiaries, and evaluated them as the most problematic areas. As mentioned in the comments below the figure, the weights were obtained based on the prioritization of the company, and the assessment criteria were also identified based on the company’s internal requirements. The values were set as 1—cannot perform, 2—perform with help, 3—perform, 4—perform effectively, and 5—perform superior (benchmark leader).

The company should show increased vigilance over unauthorized start-ups of motors, as some workers do not switch off the equipment, and this leads to an increase in fuel consumption, while, at the same time, technical service becomes more expensive, as it is established based on an internal directive and manufacturers’ recommendations every 250 motor hours. After evaluating the performed analyses, the problem areas in the investigated companies are mainly fuel consumption, machine downtime, the age of the mechanisms, as well as the frequency of service in relation to their operating time. Based on the results for the strategic profile, obtained via the analysis performed, we found where companies are lagging, or where they have a competitive advantage. After the analysis, we have inferred that the management’s efforts should be aimed at eliminating weaknesses and strengthening the company’s competitive advantages. The main benchmark among internal companies is the company based in company CZ, which received the highest number of points from our calculations. The strategic profile thus addresses the question of how to create and strengthen a long-term competitive market position and subsequently fulfill the individual goals of a company that is progressing in the given area [42].

Benchmarking in quarry mechanization enables the company to constantly monitor and assess its performance as regards its operating techniques against other company branches [44]. The services connected to quality control and improvements in team spirit and morale result are connected to the behaviors of the parties involved—employees working with the equipment (machines) and the employees of the service—who have significant influence over sustainability. Simply put, if the machine is idle and the employees do not turn the engine off when not in use, the machine must be serviced more often, which means increased costs. The process is important for the continuous improvement of an industry’s maintenance and expense levels, as some of the benefits derived from benchmarking in mechanization industries include and identify information that will enhance throughput and lower expense [45]:

Improvement in information flow between all departments;
Improvements in services and quality control;
Reduced overall expenses;
Improvements in team spirit and morale.

3.4. Model for Improvement in Benchmarking for Industries

A methodology was proposed for the development of an internal benchmarking model for the company under survey. The model was created using algorithmization based on the results of the benchmarking. In the created model, the potential of improving the activity and its efficiency by undertaking simple steps was raised. The goal of the model in Figure 9 is, for any company, for it to be applied across the board in all its branches, which would unify the structure and content and thus facilitate internal benchmarking. Within the internal processes, the variables must be unified, as this speeds up the benchmarking process, making it more efficient from the points of view of both human resources and costs.

Given the needs of the benchmarking model proposed for streamlining internal processes, it is necessary to exactly define the platform for comparing the performance parameters obtained from detailed analyses of the internal environment of industrial enterprises. If the input parameters necessary to create a comparative platform are not available, it is essential to obtain an expert evaluation of the internal processes of data collection with the aim of its construction. In the absence of input parameters containing the necessary qualitative or quantitative benchmarking data, it is necessary to choose an effective method allowing the clear conversion of benchmarking factors. The thus-obtained benchmarking factors will be quantified by weight levels determining their importance in the benchmark, with an emphasis on the exact quantification of the permissible value of the partial input parameters of the comparative benchmarking platform. After the exact quantification of the performance parameters, in a logical sequence, the company proceeds to their mutual comparison and the creation of benchmarks, the summarization of which determines the performance category: poor, moderate, or good. If benchmarking reveals the poor performance of the company, significant streamlining is necessary to ensure continuous performance improvement. If benchmarking shows the moderate performance of the company (the performance is lower than the requirements), a small amount of streamlining is necessary, determining the continuous improvement of performance. If benchmarking shows the good performance of the enterprise (performance is better than requirements), there is no need to seek any continuous improvement in performance.

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