International Journal of Mechanical & Mechatronics Engineering IJMME-IJENS Vol: 12 No: 03 14 1210503-1919 IJMME-IJENS © June 2012 IJENS I J E N S Industrial Benchmarking: A Critical Research and Practices in Automotive Manufacturing Unit Mohammad Israr* Anshul Gangele**, * [Research Scholar] Department of Mechanical Engineering, Suresh Gyan Vihar University, Jaipur (Raj.) 302025E-mail: isainik@yahoo.co.in **Institute of Technology & Management, Gwalior (M.P.) 474001 E-mail: anshulgangele@gmail.com Abstract This paper is based on a survey conducted on top management’s awareness and understanding of benchmarking in Indian automotive manufacturing companies. The main objective of this paper is to provide empirical evidence on top management’s awareness and understanding of the benchmarking technique and its role towards business survival and competitiveness. To achieve this objective, the authors developed a questionnaire comprising of fifthteen questions, checked for reliability and validity by experts and practitioners. The survey results and findings revealed that almost 17% are in the very good category, about 55% of the respondents companies are still in the moderate category, nearly 22% are in the low category and 6% have very little understanding and knowledge as regards to benchmarking. In summary, the survey analysis showed large majority of the Indian companies involves in the automotive manufacturing sector still experiencing lack of knowledge as regards to the benchmarking concept and its role towards enhancing their business process effectiveness and competitiveness. The paper culminates with discussions and conclusions, focusing on recommending the steps that should be taken by the Indian government through its agencies such India Productivity Corporation (IPC) and Small & Medium Industry Development Corporation (SMIDEC) in encouraging more companies to use the benchmarking A Survey on Benchmarking Understanding and Knowledge Among Indian Automotive Components Manufacturing SMEs 386 technique in their pursuit to survive and be more competitive in the local, regional and global market. Keywords: Benchmarking, competitiveness, survey, performance, survival, customer satisfaction Introduction In this day and age, stiff competition, technology advancement and the globalisations of markets, most of the companies have been forced to consider and implement a wide variety of innovative management philosophies, approaches, and techniques (Lee et al. 2006). The globalisation of markets, growing inter-diffusion of economies, and increased inter-dependence of economic agents are reshaping national and international competitive environment and economic performance (Ghobadian and Gallear, 1996; OECD, 1993). These fundamental changes are prompting the far-sighted organizations to re-examine and modify their competitive strategies. To survive in the global competition and the ever-increasing customer demands, local business organizations must demonstrate the ability to understand and assess things quickly like their international competitors. Competitive analysis has been utilized by organizations for decades as a way of collecting data and measures regarding the markets, sales, products, production costs, or budgets of competitors (Yasin, 2002). Gathering intelligence about competitors is not a new idea. Historically, industries growth and development has been advanced by imitation of technology, business practices and organizations of the other countries. Bolton (1993) as quoted by Drew (1997) describes how industrialization in the United States of America benefited from imitating and exploiting Britain’s knowledge of technologies such as metallurgy and steam engine. For example, in the mid 1880s, American engineers visited Britain, copied and made major changes to British engines to adapt them to different fuel prices and the characteristics of North American