Benchmarking

BenchMarking:

Benchmarking is a process where you measure our company’s success against other similar companies to discover if there is a gap in performance that can be closed by improving your performance. Studying other companies can highlight what it takes to enhance your company’s efficiency and become a bigger player in your industry.

• Benchmarking can be applied against any product, process, function or approach in business.
• Benchmarking helps companies learn about improving their business practices by observing what other companies do.
• Benchmarking can help businesses reduce costs, increase profits, strengthen customer loyalty and satisfaction.
• Companies can learn from business practices from of internal teams, competitors within their industry or companies operating in completely unrelated sectors.
• Benchmarking in an automobile industry involvesa structural comparision between similar products,services (or) processes on some dimension of performance.
• There are two basic kinds of improvement opportunities: continuous and dramatic. Continuous improvement is incremental, involving onlysmall adjustments to reap sizeable advances. Dramatic improvement can only come about through reengineering the whole internal work

In below picture we can see types or on what basis the benchmarks are done.

Benifits:

In addition to helping companies become more efficient and profitable, benchmarking has other benefits, too, such as:

1. Improving employee understanding of cost structures and internal processes
2. Encouraging team-building and cooperation in the interests of becoming more competitive
3. Enhancing familiarity with key performance metrics and opportunities for improvement company-wide

In essence, benchmarking helps employees understand how one small piece of a company’s processes or products can be the key to major success.

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Now I'm going to suggest a best or suitable car for Mr. D.S. Pughazhyendhii by doing bench-mark on Currently available Carsin market.

Lets see the requirements of Mr.Pughazh ->

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

Basic characteristics of cars:

1. Good utility space.
2. Safety.
3. BS6 and BS6.2 Engine used.
4. Good Mileage.
5. Good Interiors.
6. Lightweight Car body.
7. Performance of cars.
8. Reliability of car.

Car Models and Specifications:

• My suggestion for Mr.D.S.Pughazhyendhii is TATA Nexon because of the Five star G-NCAP Safety and it has more power (BHP),BS6.2 Complaint and good build quality compared to rivals.
• It has decent Drive range & bootspace so he can travel with his family for Long rides.