Benchmarking

Benchmarking: In automobile Industry it is a structured comparison between similar products, services or processes on the basis of some dimensions of performance.

The point of benchmarking is to identify internal opportunities for improvement. By analyzing competitors with some set of parameters such as superior performance; by breaking down what makes such superior performance possible, and then comparing those processes to our business operations, we can implement changes that will lead to significant improvements.

There are two basic kinds of improvement opportunities:

1. Continuous
2. Dramatic

• Continuous improvement is incremental process where only small adjustments are made to reap sizeable advancements.
• Dramatic improvement can only come about through reengineering the whole internal work process.

  Step-by-Step Benchmarking:

  Benchmarking is a detailed five-step process that can be summarized into the following 5 steps

  1. Choose a product, service, or internal department to benchmark
  2. Determine which best-in-class companies you should benchmark against – which organizations you’ll compare your business to
  3. Gather information on their internal performance, or metrics
  4. Compare the data from both organizations to identify gaps in your company’s performance
  5. Adopt the processes and policies in place within the best-in-class performers

In order to benchmark anything, we need to have quantitative data available to study that will be the basis for comparision.

BENEFITS

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

• Improving employee understanding of cost structures and internal processes
• Enhancing familiarity with key performance metrics and opportunities for improvement company-wide
• Encouraging team-building and cooperation in the interests of becoming more competitive

So benchmarking let the organisation know where they are standing and gives them opportunities to improve.

Problem statement:

Mr. D.S. Pughazhyendhii has a budget of 8-10 lakhs on road and he is going to use this car to commute his office as well as to visit his native place once a month. on the basis of his budget and family menbers the following 5 models can be considered for benchmarking.

KEY SPECIFICATIONS	HYUNDAI VENUE	TATA NEXON XE	KIA SONET HTE	FORD ECO SPORT	MARUTI SUZUKI VITARA BREZZA
On-Road price (Rs.)	9,17,700	9,28,000	9,43,000	9,89,000	9,62,000
ARAI Mileage (kmpl)	18.14	21.5	18.4	21.7	19.8
Engine Displacement (cc)	998	1497	1493	1498	1462
Max Torque (nm@rpm)	171.6Nm@1500-4000rpm	260Nm@1500-2750rpm	172nm@1500-4000rpm	215Nm@1750-2500rpm	138Nm@4400rpm
Max Power (bhp@rpm)	118.35bhp@6000rpm	108.5bhp@4000rpm	99 bhp @ 4000 rpm	98.63bhp@3750rpm	103.26bhp@6000rp
Transmission Type	Manual, Automatic (TC) & Automatic (CVT)	Manual, Clutchless Manual (IMT) & Automatic (DCT)	Manual & Automatic (AMT)	Manual	Manual, Clutchless Manual (IMT), Automatic (DCT) & Automatic (TC)
Seating Capacity	5	5	5	5	5
Boot Space (Litres)	350	350	392	352	328
Body Type	SUV	SUV	SUV	SUV	SUV
Fuel Tank Capacity	45	44	45	52	48
Warranty (Years)	3	2	3	3	2
Warranty (Kilometres)	unlimited	75000	60,000	1,00,000	40,000
Safety	4 stars NCAP rating	16.06/17	5 stars NCAP rating	4 stars NCAP rating	12.51/17
Length X width X height (mm)	3995 X 1770 X 1592	3993 X 1811 X 1606	3995 X 1790 X 1642	4096 X 1765 X 1653	4175 X 1775 X 1610

1.HYUNDAI VENUE:

2.TATA NEXON XE:

3. KIA SONET:

4. FORD ECO

5.MARUTI SUZUKI VITARA BREZZA:

Conclusion:

As he lives in a crowded city and he is going to use his car for commutting as well as to visit his native place so safety must be the top most priority. He is found of big cars also. So i would recommend him to buy KIA SONET HTE that provides large BOOT space than the other models but a little smaller in length in comparision to BREZZA and FORD ECO. It safety rating is highest among all the models.