Benchmarking

AIM:

To prepare a report explaining what is Bench-marking , Compare at least 4 Vehicles and Provide a Preoper conclusion for the report ,suggesting a suitable vehicle among the comparison made.

Benchmarking :

*Benchmarking in the automobile industry involves a structured comparison between similar products.

*It is the process of comparing one's business process and performance metrics to industries bests and/or best practises from other industries.Process benchmarking includes studying process flows, operating system, process technologies and the operation of target firms and departments.

Also it can be defined as the way of discoveing what is the best performance being acived-whether in a particular company ,by a competiter or by entirely different industry. this information can then used to identify gaps n an organization' process to achieve a competative adavantage.

Three primary classification of Benchmaking :

Althrough there are many forms of benchmarking, they can classified into three categories.

* internal

* competitive

* strategic

INTERNAL BENCHMARKING :s used when a company already has established and proven best practices and they smply need to share them.internal benchmarking also may be necessary if comparable industries are not readyly available.

COMPETITIVE BENCHMARKING: is used when a company wnats to evaluate its position wthn its when a company needs to identfy industry leadership performance targets.

STRATEGIC BENCCHMARKING:is used when identifying and analysng world-class performance.Ths form of benchmarking is used most a company needs to go outside of its industry.

Advantage:

*Benchmarking will improve customer requirements.

*Help to overcome weakness.

*It will help to increase the production rate and quality of the product.

*Improve learning methodology and company standards.

Disadvantage:

*The most criticism of benchmarking comes from the idea of copying others.

*Data exchange is expensive and delicate.

*Some organizations have a reluctance to share the information.

*Finally, many organizations make the mistake of understanding benchmarking as a stand-alone activity.

STEP-BY-STEP ABOUT BENCHMARKING:

Benchmarking is a simple,but detailed,five -step process.

*Choose a product , service , or nternal department to benchmark.

*Determine which best -in-class companies you should benchmarking against, which organizations you will comapre your business to.

*Gather information on therir internal performance,or matrics.

*compare the data from both organizations to identify gaps n your company's performance.

*adpot the processes and policies in place within the best-in-class performers

BENEFITS

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

*Improving employee understanding of cost structures and internal processes

*Encouraging team-building and cooperation in the interests of becoming more competitive

*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, just as one employee’s contributions can lead to a big win.

REQUIREMENT

Benchmark with presently available cars in the market for the following case.