Benchmarking

BENCHMARKING

Benchmarking is the process of comparing your company's success to that of other similar companies in order to determine if there is a performance gap that can be closed by improving your performance.

Benchmarking in the automobile industry

Benchmarking involves a structured comparison between similar products, services or processes on some dimensions of performance. For example it can be used to compare the availability and delivery of features in a product and in this form often provides the basis of consumer tests and reviews. These look at products and services and provide recommendations based on which is best or some form of ranking amongst competitors.

Types of Benchmarking.

• Internal benchmarking. Internal benchmarking is pretty straightforward.
• External benchmarking. External benchmarking is comparing an internal process to that of a competitor or even several other organizations.
• Competitive benchmarking.
• Performance benchmarking.
• Strategic benchmarking.
• Practice benchmarking.

Process benchmarking of this kind can operate at several levels:

• Between similar processes in the same factory or service branch
• Between different factories or service branches
• Between different competing organizations
• Between different sectors using the same process

The Benefits of Benchmarking

1. Competitive Analysis – A company can seek to increase execution tenfold by identifying areas in which the company want to make improvements and measuring its current performance against competitors. By using benchmarking in this manner, organisations have been able to outsmart competitors and raise industry averages.
2. Monitor Performance - Depending on company goals, benchmarking involves examining existing data trends and estimating future trends. Benchmarking needs to be a constant practise in order to be successful. Its very nature calls for performance monitoring.
3. Continuous Improvement - Benchmarking requires continuous improvement in addition to monitoring performance. This is due to the fact that the goal of benchmarking is to improve a specific aspect of a business. This improvement should not be something that happens once and then disappears, but something that develops over time and is continuous.
4. Planning and Goal Setting - Following benchmarking, goals and performance metrics are established in order to improve performance. These are newer, more challenging targets for a company, but they must be met. If goals are too challenging to achieve, teams become demotivated and objectives go unfulfilled.
5. Understand Your Companies Advantages - Benchmarking identifies where your company is right now compared to where you want it to go. If you are looking at improving any process in your business, benchmarking is a way of looking at how you can excel and become more successful through outlining the steps needed to achieve your goal.

REQUIREMENT

Mr. D.S. Pughazhyendhii is a married man who lives in Bangalore which is a highly crowded city. His Family comprises five members including his wife, a five-year-old boy, his father, and his mother. He visits his native place Madurai which is 500kms away from Bangalore once a month. Also, he will be using his car to commute to his office. His budget falls between 8 to 10 lakhs on road. Please suggest to him options so that he will buy a good car for his family.

Note: Pughazhyendhii is fond of big cars.

Suggestion

1. Maruti Suzuki Brezza
2. Tata Nexon
3. Hyundai i20
4. Kia Sonet

COMPARISION

CONCLUSION

I Would like to suggest Tata Nexon XE to Mr. D.S. Pughazhyendhii as its 5 Seater and Crossover of SUV and Sports coupe with the Price of 9.32 Lakhs in Bengaluru(On Road). It has NCAP Rating of 5 to Adults and 3 to Children when comes to safety. This is a excellent offering and safest car with good features.