Benchmarking

what is benchmarking?

Benchmarking is defined as the process of measuring products, services, and processes against those of organizations known to be leaders in one or more aspects of their operations. Benchmarking provides necessary insights to help you understand how your organization compares with similar organizations, even if they are in a different business or have a different group of customers.

Benchmarking can also help organizations identify areas, systems, or processes for improvements—either incremental (continuous) improvements or dramatic (business process re-engineering) improvements.

Benchmarking has several other benefits as well:

• Improved Quality: Benchmarking helps organizations to continuously improve the quality of their products & services. Organizations observe the current standard, and then try to surpass that.
• Better performance: Benchmarking helps organizations overcome complacency. They continuously strive to improve their performance standards in order to stay relevant in the market.
• Cost efficiency: Benchmarking provides organization with valuable data on the last technology, and processes followed in the business environment. These are aimed at increasing productivity while reducing cost. For example, a manufacturing company might learn about a certain machine used by its competitor, which can do the work for five workers. This company might also adopt similar technology to lower its labor cost.
• Prioritizing areas of improvement: While organizations understand the importance to develop continuously, they might be unsure at times about where to start the improvement from. Benchmarking helps organizations to identify the areas where the gap between their standard and that of the industry is the largest. This helps organizations to prioritize the areas that they need to work on.
• Leveraging strength areas: Benchmarking can also throw light on the areas where the organization is doing much better than what is observed in the market. Having this information can help organization to

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, five-year-old boy, his father, and his mother. He visits his native place Madurai which is 500kms away from Bangalore once in 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 with options so that he will buy a good car for his family.

1. He has 5 members in his family.
2. He is fond of big cars.
3. The car should be suitable to travel in the city as well as on high ways.
4. His budget is 8 to 10 lakhs.

By the study of cars in the market, I have listed down some cars

Maruti Suzuki Vitara Brezza.7.86 Lakh

Ford EcoSport. 8.04 - 9.63 Lakh.

Renault Duster. 8.49 - 9.99 Lakh.

Maruti Suzuki Ciaz. 9.98 Lakh.