Benchmarking

BENCHMARKING

Benchmarking is the practice of comparing business processes and performance metrics to industry bests and best practices from other companies. Dimensions typically measured are quality, time and cost.

Also referred to as "best practice benchmarking" or "process benchmarking", this process is used in management in which organizations evaluate various aspects of their processes in relation to best-practice companies' processes, usually within a peer group defined for the purposes of comparison. This then allows organizations to develop plans on how to make improvements or adapt specific best practices, usually with the aim of increasing some aspect of performance. Benchmarking may be a one-off event, but is often treated as a continuous process in which organizations continually seek to improve their practices.

Procedure or methodology for benchmarking

There is no single benchmarking process that has been universally adopted, but the following criteria can be considered or followed for benchmarking

• Select subject
• Define the process
• Identify potential partners
• Identify data sources
• Collect data and select all partners
• Determine the gap
• Establish process differences
• Target future performance
• Communicate
• Adjust goal
• Implement
• Review and recalibrate

Types of benchmarking

• Process benchmarking
• Financial benchmarking
• Benchmarking from inverstor perspective
• Benchmarking in public sector
• Performance benchmarking
• Product benchmarking
• Strategic benchmarking
• Functional benchmarking
• Best – in class benchmarking
• Operational benchmarking

Case Study:

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, five-year-old boy, his father, and his mother. He visits his native place Madurai which is 500kms away from Bangalore once in 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 with options so that he will buy a good car for his family.

Note: Pughazhyendhii is fond of big cars

Client has daily use of his car for travelling to office in a crowded city like banglore and frequently has long distance travel. So the best options available within the budget range are shown below:

1.Mahindra XUV300 w4 – Petrol

2. Hyundai Venue E Diesel

3. Maruti Vitrara Brezza LXI- Petrol

4. Toyota Urban Cruiser Mid-Petrol

Model	Mahindra XUV300 w4 – Petrol	Hyundai Venue E Diesel	Maruti Vitrara Brezza LXI- Petrol	Toyota Urban Cruiser Mid-Petrol
On-road cost	Rs.9,22,826	Rs.9,79,800	Rs.8,58,327	Rs.9,74,050
Fuel type	Petrol	Diesel	Petrol	Petrol
Displacement	1197cc	998cc	1462cc	1462cc
Max Power	108.6bhp@5000rpm turbo charged	118.35bhp@6000rpm turbo charged	103.26bhp@6000rpm	103.26bhp@6000rpm
Gear Box	6 speed	6 speed	5 speed	5 speed
Mileage	17kmpl	23kmpl	17kmpl	17kmpl
Front suspension	MacPherson Strut with anti-roll bar	McPherson Strut with Coil Spring	MacPherson Strut with anti-roll bar	MacPherson Strut with anti-roll bar
Rear suspension	Twist beam suspension with Coil Spring	Coupled Torsion Beam Axle with Coil Spring	Torsion Beam With Coil Spring	Torsion Beam With Coil Spring
Seat capacity	5	5	5	5
Boot space ltrs.	259	350	328	328
ABS	Yes	Yes	Yes	Yes
Airbag	2 nos. front	2 nos. front	2 nos. front	2 nos. front
Anti Thief alarm	NA	NA	Avl.	Avl.
Seat belt	Avl.	Avl.	Avl.	Avl.
Side impact beam & front impact beam	Avl.	Avl.	Avl.	Avl.

Points observed

According to comparison chart Hyundai Venue is better in comparison to other 3 cars in following points.

Safety: ANCAP rated 4 Star rating to adult and child safety. This car equipped with air bag ,ABS and all other relevant feature available in this segment.

Mileage: Being a Diesel automotive in this price segement it has maximum milage output of 23kmpl and being the owner is daily commuter and do long ride once in month diesel vehicle suite best to the choice.

Boot space: Though body width is less compare to other variant it has maximum boot space of 350 litres which is ample space for passenger to seat and travel long trip comfortably.

Gear Transmission: It has Manual gear transmission with 6 speed gear box for smoother rider at higher speed. Automatic transmission variant is also available which is best suited for crowded city commuting.

Cost: Diesel Variant is available @ 9.79 lakh manual transmission whereas automatic transmission petrol variant is available @ 8.0 lakh on-road price.

Design : In term of looks and style it very stylish resembles mini SUV with sunroof option to add premium look to overall look. Curves and shapes are aerodynamic with stylish led headlamp.

Conclusion:

Considering all the above comparison among the similar segment variants and the requirements, Hyundai Venue Diesel variant is best option that falls in the budget range for Mr Pughazhyendhii