Benchmarking

CASE STUDY: BENCHMARKING

Problem Statement:

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

Introduction:

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.

A specific distinctive vehicle attribute branding is essential to make cars unique and competitive. As a first step on the way, vehicle manufacturers have to benchmark their vehicles in the competitive environment to understand and strengthen or improve their potential of their vehicles.

For example, it can be used to compare the availability and delivery of features in a product and in this form often provides the basis for consumer tests and reviews. These look at products and services and provide recommendations based on which is best or some form of ranking amongst competitors.

It is particularly useful when comparing not only performance but also practices in other words what do the different organizations do to enable that performance to be delivered? When applied in this way it is a powerful tool in process innovation since studying how the 'best' achieve their performance can provide powerful clues for changing the way processes operate process benchmarking of this kind can operate at several levels:

• Between similar processes in the same factory or service branch.
• Between different factories or service brands.
• Between different competing organizations.
• Between different sectors using the same process.

Steps in the Benchmarking process:

1. Select a subject to benchmark.
2. Decide which organizations or companies you want to benchmark.
3. Document your current processes.
4. Collect and analyze data.
5. Measure your performance against the data that has been collected.
6. Create a plan.
7. Implement the changes.
8. Repeat the processes.

Importance of Benchmarking:

1. Improve processes & procedures.
2. Gauge the effectiveness of past performance.
3. Gives a better idea of how the competition operates, which will help to identify best practices to increase performance.
4. Increases efficiency & lower costs, making your business more profitable.
5. Improve quality & customer satisfaction.

Types of Benchmarking:

• Internal Benchmarking- If other teams or organizations within your company have established best practices in processes similar to yours internal benchmarking involves analyzing what they are doing so you can find areas where you can improve and be more efficient.
• Competitive Benchmarking- This type of benchmarking is a comparison of products, services, processes & methods of your direct competitors. This gives you insight into your position within your industry and what you may need to do to increase productivity.
• Strategic Benchmarking- Use this type of benchmarking when you need to look beyond your industry to identify world-class performance & best practices so you can look for ways to adapt their methods to your procedures and processes.

Suggestible Cars:

Conclusion:

• Upmarket looks, five-star G-NCAP safety.
• Spacious cabin compared to rivals.
• Easy to drive and live with.

I would suggest Tata Nexon for Mr. D.S. Pughazhyendhii's family, Nexon is an excellent offering and is the safest car in its segment. It is also value for money product with class-leading features.