I used newrelic_rpm(2.13.1) (http://www.newrelic.com/) - Ruby performance management system in my rails application to find out the performance bottlenecks and it helped me a lot.
First, it took me only 2 minutes to set up newrelic into my application. Second, the detailed level of information that it provided helped me to debug at granular level starting from sql query execution time to individual template load time. I also liked the Pie chart representation of the analysis.
Here are the installation steps :-
http://support.newrelic.com/faqs/docs/ruby-agent-installation
Readme doc :-
http://github.com/newrelic/rpm/blob/master/README.rdoc
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