Benchmarking

AIM: DETAILED REPORT ON BENCHMARKING

To prepare a report explaining what is Bench-marking , Compare at least 4 Vehicles and Provide a Preoper conclusion for the report ,suggesting a suitable vehicle among the comparison made.

WHAT IS BENCHMARKING ?

It is the process of comparing one's business process and performance metrics to industries bests and/or best practises from other industries.Process benchmarking includes studying process flows, operating system, process technologies and the operation of target firms and departments.

Also it can be defined as the way of discoveing what is the best performance being acived-whether in a particular company ,by a competiter or by entirely different industry. this information can then used to identify gaps n an organization' process to achieve a competative adavantage.

Three primary classification of Benchmaking :

Althrough there are many forms of benchmarking, they can classified into three categories-internal, competative and strategic.

INTERNAL BENCHMARKING :s used when a company already has established and proven best practices and they smply need to share them.internal benchmarking also may be necessary if comparable industries are not readyly available.

COMPETITIVE BENCHMARKING: is used when a company wnats to evaluate its position wthn its when a company needs to identfy industry leadership performance targets.

STRATEGIC BENCCHMARKING:is used when identifying and analysng world-class performance.Ths form of benchmarking is used most a company needs to go outside of its industry.

STEP-BY-STEP ABOUT BENCHMARKING:

Benchmarking is a simple,but detailed,five -step process.

• Choose a product , service , or nternal department to benchmark.
• Determine which best -in-class companies you should benchmarking against, which organizations you will comapre your business to.
• Gather information on therir internal performance,or matrics.
• compare the data from both organizations to identify gaps n your company's performance.
• adpot the processes and policies in place within the best-in-class performers.

Benchmarking process may vary from one firm to another, but it boils down to two types

• Benchmarking 1 – It is an eagle-eye view comparison of two products as a whole rather than dealing with specific parts. For eg., Two vehicles as a whole would be compared.
• Benchmarking 2 – It involves a much more detailed comparison. Specific components are compared and studied in detail. For eg., a door panel engineer will study door panels of different cars and will see which one is better. Then as per the study, changes are made to achieve good results and be at par with the best ones available in the market.

In order to benchmarking anything, you need to have quantitative data available to study. That means breaking down internal processes to calculate performance metrics.Quantify everything, because only quantfable normation can be accurately compred.

BENIFITS:

In addition to helping companies become more efficient and profitable ,benchmarking has other benefits, too much as:

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 monitoring performance, continuous improvement is an essential attribute of benchmarking. This is because the aim of benchmarking is to improve certain elements 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.

• Encourage Ownership

When companies look at their processes and metrics they need to ask hard questions to get all the answers they need. This includes talking to everyone in the business and understanding their roles. By asking these questions and gaining a better understanding of everyone’s role, ownership of processes and performance is encouraged. This means that employees will take pride in their job and the work they do. This pride leads to better performance and higher-quality end results.

REQUIREMENTS:

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, 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

In my view,

Mr . D.S. Pughazhyendhii's family requires what Safe Car yet the value which offers an Equilibrium strike of Mileage, Maintenance with Good space, Features and a Social Status too of not to be owning a car which is of entry segment but one which offers Value.

With Transformation happening in Mindsets - Safety along with Good Interiors, Features are also making an important buying aspect.

Mr . D.S. Pughazhyendhii's major requirements in a car:

• 5-7 seats for his family members.
• Budget: Rs. 8-10 Lakhs/-, on road price
• Good Mileage
• Good car for easy commuting within city and long drive as well.
• He is also fond of big cars.

According to the problem statement given, 4 vehicles currently present in the Indian market have been compared.

	Suzuki Ertiga VXi	KIA Carens Premium	KIA Sonet 1.2 HTK Plus	TATA Nexon XMA (S)
Price (in Lakhs)	9.49	9.59	9.19	9.84
Fuel Type	Petrol	Petrol	Petrol	Petrol
ARAI Mileage	20.5	15.7	18.4	16.3
NCAP Ratings	3 Star	3 Star	Not Tested	5 Star
Airbags	2	6	4	2
Engine Size	1462 cc	1497 cc	1197 cc	1199 cc
Aspiration	Natural	Natural	Natural	Turbocharged
Peak Power	102 bhp @ 6000 rpm	113 bhp @ 6300 rpm	81.86 bhp @ 6000 rpm	113.4 bhp @ 6300 rpm
Peak Torque	136 Nm @ 4400 rpm	144 Nm @ 4500 rpm	115 Nm @ 4200 rpm	170 Nm @ 1750 rpm
Emission Standard	BS 6	BS 6	BS 6	BS 6
Transmission Type	Manual 5 Gears	Manual - 6 Gears	Manual - 5 Speed	AMT - 6 Gears
Fuel Tank Capacity	45 L	45 L	45 L	44 L
Drive Range	923 km	707 km	828 km	719 km
Boot Space	550 L (After seat fold)	216 L	392 L	350 L
Seating Capacity	7	7	5	5
Length	4395 mm	4540 mm	3995 mm	3993 mm
Width	1735 mm	1800 mm	1790 mm	1811 mm
Height	1690 mm	1708 mm	1642 mm	1604 mm
Wheelbase	2740 mm	2780 mm	2500 mm	2498 mm
Ground Clearance	185 mm	195 mm	205 mm	209 mm

1. Suzuki Ertiga

The MPV offered by Suzuki is a great package for big families, which not only is pocket friendly but offers a ton of features. The new facelift version now comes with new CNG variants along with the trusted petrol and diesel variants. This version is hybrid and offers regenerative braking and idle start-stop.

	PROS	CONS
	Cruising capability – The ride quality is smooth making it easy to travel long distances. Easy Ride – Though an MPV, easy to manoeuvre like a hatchback. Lightweight – Being light on weight enhances the performance and makes it fuel efficient Big boot space – 550 litres of cargo space makes it an ideal choice for big families.	Inferior Interior quality – The quality of the material is not good for such a car. The third row of seats needs to be compromised for utilizing the full boot space. The leg room is not sufficient for people sitting in the third row.

2. KIA Carens

The exciting new Carens from the South Korean manufacturers KIA comes with a stealthy look and massive power. The Seltos and Carens share the same powertrain which is a massive 1.4l turbo petrol churning out a peak power of 138bhp and 242Nm of torque.

	PROS	CONS
	The powertrain options are plenty and have is power packed. Since the wheelbase is longer compared to its counterparts. Focuses on cabin experience	At this price range lacks some premium features The exterior design is a kind of acquired taste. Not for everyone.

3. KIA Sonet

KIA Sonet is a rugged designed car that is nothing short of performance. This easy-to-drive car is packed with state-of-the-art features. Sonet provides the most features when compared to its counterparts. It lacks when we see it in terms of safety. Though the car is equipped with 6 airbags, there are no NCAP test results.

	PROS	CONS
	The rugged design gives it a much stronger stance. The powertrain is refined and gives optimal performance. Due to its compact size, it is easy to drive. The material used feels premium and is of good quality. The boot space is good enough to be packed with a lot of bags.	The rear seat is quite congested and cannot easily fit 3 people. The ride is bit bouncy and never feels firm The rear visibility is poor due to massive C-Pillars and tiny rear windscreen.

4. TATA Nexon

The updated BS-6 Tata Nexon is a performance-packed car. Offering a variety of engine and transmission options comes with an NCAP rating of 5 stars. The updated looks provide a muscular feel to the car. The turbocharged engine is having the most power and torque when compared to the other 3 cars in this report.

	PROS	CONS
	NCAP Rating 5 star Offers much more space in the cabin Easy to drive and manage Offers good mileage making it perfect for daily commuting and the long run.	The refinement of the motor could be better because of the low-end grunt from the motor. The interior quality doesn’t feel premium and could be better. Fuel Economy is not the best in segment and could be a little better.

VERDICT

According to me, TATA Nexon would be a perfect fit for Mr D.S. Pughazhyendhii. Since he needs a good family car, safety should be given the utmost priority. Tata Nexon being the safest among all already gains an advantage over others. Having a good turning radius of 5.1m makes it ideal for crowded cities like Bangalore and with a great mileage of 16 km/l, it is an ideal choice for daily commuting as well. The automatic transmission would also make the daily commuting experience much better. A big boot space of 350 litres will carry the luggage of his whole family when going to Madurai. Not only the car looks big and muscular (which Mr D.S. Pughazhyendhii is fond of), its turbocharged 1.2l of engine packed with 118bhp and 170 Nm of torque can take it to any place without any difficulty. Mr D.S. Pughazhyendhii should look no further and go with Tata Nexon XMA (S) variant.