Benchmarking

OBJECTIVE:

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

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

2. Prepare a report explaining what is Bench-Marking

3. Compare at least 4 vehicles.

4. Provide a proper conclusion for the report, suggesting a single suitable vehicle among the comparison made with images.

INTRODUCTION:

BENCH MARKING:

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 been classified into two distinct categories: technical and competitive.

Technical BenchMarking

Technical benchmarking is performed by design staff to determine the capabilities of products or services, especially in comparison to the products or services of leading competitors. For example, on a scale of one to four, four being best, how do designers rank the properties of your organization’s products or services? If you cannot obtain hard data, the design efforts may be insufficient, and products or services may be inadequate to be competitive.

Competitive Benchmarking

Competitive benchmarking compares how well (or poorly) an organization is doing with respect to the leading competition, especially with respect to critically important attributes, functions, or values associated with the organization’s products or services. For example, on a scale of one to four, four being best, how do customers rank your organization’s products or services compared to those of the leading competition? If you cannot obtain hard data, marketing efforts may be misdirected and design efforts misguided.

BenchMarking Procedure

Considerations

• Before an organization can achieve the full benefits of benchmarking, its own processes must be clearly understood and under control.
• Benchmarking studies require significant investments of manpower and time, so management must champion the process all the way through, including being ready and willing to make changes based on what is learned.
• Too broad a scope dooms the project to failure. A subject that is not critical to the organization’s success won’t return enough benefits to make the study worthwhile.
• Inadequate resources can also doom a benchmarking study by underestimating the effort involved or inadequate planning. The better you prepare, the more efficient your study will be.

Plan

1. Define a tightly focused subject of the benchmarking study. Choose an issue critical to the organization’s success.
2. Form a cross-functional team. During Step 1 and 2, management’s goals and support for the study must be firmly established.
3. Study your own process. Know how the work is done and measurements of the output.
4. Identify partner organizations that may have best practices.

Collect

1. Collect information directly from partner organizations. Collect both process descriptions and numeric data, using questionnaires, telephone interviews, and/or site visits.

Analyze

1. Compare the collected data, both numeric and descriptive.
2. Determine gaps between your performance measurements and those of your partners.
3. Determine the differences in practices that cause the gaps.

Adapt

1. Develop goals for your organization’s process.
2. Develop action plans to achieve those goals.
3. Implement and monitor plans.

Benchmarking with available cars:

Requirements of Mr. D.S. Pughazhyendhii

• It should be minimum 5passenger car
• The cost of a car should be between 8-10lakhs
• He likes big cars

Suggestable cars:

1. Maruti Brezza
2. Tata Nexon
3. Hyundai venue
4. Kia sonet

1. Maruti Brezza

Key Specifications of Maruti Brezza

2. Tata Nexon

Key Specifications of Tata Nexon