Benchmarking

Benchmarking

Benchmarking is a process to discover what is the best standard of performance seen in a specific company, by a particular competitor or by a completely different industry.
The process of benchmarking involves four distinct steps:

• Identifying the areas where the organization is keen to identify actionable insights. These could range from cost of production to number of critical to quality errors to employee engagement scores.
• Once the areas have been identified, the organization then shortlists the companies/industries to benchmark.
• The third step that follows is to collect data from these identified companies/industries across the areas of interest that were zeroed in earlier.
• Finally, when the data has been collected, the organization studies the gaps between their standard and that of the benchmark.

Sometimes companies might confuse benchmarking with competitor research. However, there are some key differences between the two.

Benchmarking:

• Focuses on best practices to identify next practices
• Strives for continuous improvement
• Partnering to share information
• Needed to maintain a competitive edge
• Adapting based on customer needs after examination of the best

Competitor Research:

• Focuses on performance measures
• Bandage or quick fix
• Considered corporate spying by some
• Simply a “nice to have”
• Attempting to mirror another company/process

Why are benchmarks important?

It is observed that companies at times might be reluctant to use benchmarks. One of the most popular reason for this is the belief that they are their own organization, and hence, do not need to emulate any other organization. This is where it is critical to underline the fact that benchmarking does not mean blindly ‘copying’ what competitors do.

It simply means to understand what is the acceptable standard in the industry, and where does the organization stand that standard. Benchmarking helps organizations to stay in sync with the market and customer needs.

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.

Comparison of 4 cars with the good benchmark.

1. Maruti Suzuki Ciaz

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2. Maruti Vitara Brezza

User Review

4.4

Exterior

4.4

Comfort

4.4

Performance

4.1

Fuel Economy

4.3

Value for Money

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3. Tata Punch

Price	₹ 5.83 Lakh onwards
Mileage	18.82 to 18.97 kmpl
Engine	1199 cc
Transmission	Manual & Automatic (AMT)
Fuel Type	Petrol
Seating Capacity	5 Seater

User Review

4.5

Exterior

4.3

Comfort

4.0

Performance

3.9

Fuel Economy

4.0

Value for Money

Images

4. Ford Aspire

Price	₹ 7.28 Lakh onwards
Mileage	18.5 to 24.4 kmpl
Engine	1194 to 1499 cc
Transmission	Manual
Fuel Type	Petrol & Diesel
Seating Capacity	5 Seater

User Review

4.4

Exterior

4.4

Comfort

4.5

Performance

4.1

Fuel Economy

4.4

Value For Money

Images

Overall

All the above four cars are the best in the segment. Each of the car is not less to one another. According to mysuggestion is that if you need to take milege oriented car go for the maruti suzuki Ciaz which has best milege and good cabin space.

The punch is good comfort sub suv car nice to ride with the good safety feature. Compared to ciaz gets a bit low milege and has a tight shoulder for three at rear. If you are looking for the safety can go with the punch.

According to the vitara brezza, the car is a good suv with high seating and easy to ride but lacks in low speed and other it is good car with descent milege.

This car ford aspire is loaded with feature value for money and good ride and handling of the car best in all 3 cars.

Conclusion

The best for the family car can be ford aspire. which has a lot of space in rear seat and with the descent boot space.