Benchmarking
BENCHMARKING
INTRODUCTION:
Benchmarking is a process where we measure our company’s success against other similar companies to discover if there is a gap in performance that can be closed by improving your performance. Studying other companies can highlight what it takes to enhance your company’s efficiency and become a bigger player in your industry.
The Benefits of Benchmarking:
- Competitive Analysis:
By identifying areas, you wish to improve on in your business and benchmarking your existing performance against competitors, your business can strive to enhance your execution tenfold. Using benchmarking this way has allowed businesses to gain strategic advantages over competitors and grow industry averages.
- Monitor Performance:
Benchmarking involves looking at current trends in data and projecting future trends depending on what you aim to achieve. In order to know you have been successful, benchmarking needs to be a continuous process. Monitoring performance is an inherent characteristic of it.
- Continuous Improvement:
As well as monitor performance, continuous improvement is an essential attribute of benchmarking. This is because the aim of benchmarking is to improve a certain element of a business. This improvement should not merely be something that improves once and is forgotten, but something that improves over time and is continuous.
- Planning and Goal Setting:
Once benchmarking has been carried out, goals and performance metrics are set in order to improve performance. These goals are new, more competitive targets for a company but they must be achievable. If goals are unrealistic to achieve teams become demotivated and goals are destined to remain unfulfilled.
Benchmarking Process:
- Planning
The first stage of benchmarking is the most important in the process. Planning includes highlighting what you want to improve, who you will benchmark yourself against, and how you envisage success. Only once this step has been completed will you be able to move onto the next step as the results of planning will focus on the information you need to collect and what success will look like.
- Collection of Information
After planning, benchmarking is about collecting information on your processes and how competitors do them. If you are looking to improve your customer service satisfaction rating you should understand the processes involved in the department, how calls and communication are dealt with, and also how it differs from your competition. Maybe you can talk to someone in another call center, or call the center directly to gain first-hand knowledge of their processes. At this point, it is important to gather as much information as possible.
- Analysis of Data
Once you feel you have all the information you can gather, you can start to plot it and begin to understand the shortcomings you may have. It is important to remember at this point in the process that no business is perfect and you must have an open mind to be able to analyze information objectively. Once findings start to be uncovered you can draft a report and start discussing the next steps to achieve better performance in this area.
- Action
Presenting findings to a department is never an easy thing, especially when you are proposing changes. Gathering and analyzing information is only worthwhile when you can implement changes and better the company in the process. Gaining buy-in from a department can involve concessions so make sure the MVP you present is accepted and will likely equate to the success highlighted in the planning stage.
- Monitoring
No plan is ever complete without monitoring results to determine how successful the plan has been. The implementation phase will have highlighted metrics and goals for success within a time frame so monitoring these is the only way of knowing the efficacy of the changes. Monitoring can be over a short or long period of time depending on the desired outcomes.
BENCHMARKING REPORT:
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.
OBJECTIVE:
To find a suitable car for Mr.Pughazhyendhi considering the criteria’s.
Ford EcoSport
Prize :8.19 lakhs
Engine capacity : 999 cc
Fuel Economy :18.88 kmpl
Fuel type : Petrol, diesel
Power :125 PS @ 6000rpm
Torque :170Nm @ 1400-4500rpm
Body Style : SUV
Turning radius :5.3 metres
Boot space : 352 litre
MARUTI SUZUKI DZIRE:
Prize :8.36lakhs
Engine capacity :1197 cc
Fuel Economy :22 kmpl
Power :82bhp @ 6000rpm
Torque :113Nm @ 4200rpm
Body Style : Sedan
Boot space :378 litre
Turning radius :4.8 metres
SKODA RAPID:
Prize :8.34lakhs
Engine capacity :1598 cc
Fuel Economy :15 kmpl
Power :104bhp @ 5250rpm
Torque : 153Nm @ 3800rpm
Body Style : Sedan
Turning radius :5.3 metres
Boot space :460 litres
TATA NEXON:
Prize : 8.57 lakhs
Engine capacity :1497 cc
Fuel economy :22.07 kmpl
Power : 108.49bhp @ 4000rpm
Torque : 260nm @ 1500-2750rpm
Body type : SUV
Boot space : 350 liter
Turning radius :5.1 meters
COMPARISON:
- Tata nexon has the highest mileage in comparison
- Tata nexon has the lowest turning radius with which driving gets comfortable in traffic in comparison.
- Tata nexon has the highest torque in comparison.
- Skoda rapid has the highest boot space in comparison
CONCLUSION:
Tata nexon even though have low boot space compared to skoda rapid the dimensions of nexon is lower compared to rapid which helps a lot in traffic.
Considerin all these factors, the recommended car would be Tata Nexon.