Benchmarking

BENCHMARKING

Benchmarking involves a structured comparison between similar products, services or processes on some dimensions of performance. For example it can be used to compare the availability and delivery of features in a product and in this form often provides the basis of consumer tests and reviews. These look at products and services and provide recommendations based on which is best or some form of ranking amongst competitors.

It is particularly useful when comparing not only performance but also practice – in other words what do the different organizations do to enable that performance to be delivered? And applied in this way it is a powerful tool in process innovation studying how the ‘best’ achieve their performance and provide powerful clues for changing the way processes operate. Process benchmarking of this kind can operate at several levels:

• Between similar processes in the same factory or service branch
• Between different factories or service branches
• Between different competing organizations
• Between different sectors using the same process

While it offers a significant learning opportunity benchmarking between competing organizations is harder than the other three because competitors do not want to disclose their process information since it is a source of competitive advantage to tem. So benchmarking of this kind often involves a third party who can collect the data, make the comparison and provide feedback but all on a confidential basis.

There are four main types of benchmarking: internal, external, performance, and practice.

Performance benchmarking involves gathering and comparing quantitative data (i.e., measures or key performance indicators)

Practice benchmarking involves gathering and comparing qualitative information about how an activity is conducted through people, processes, and technology.

Internal benchmarking compares metrics (performance benchmarking) and/or practices (practice benchmarking) from different units, product lines, departments, programs, geographies, etc., within the organization.

External benchmarking compares metrics and/or practices of one organization to one or many others.

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.

Since Pughazheyendhii lives in Bangalore and loves big cars we will go for SUV or crossover class cars for him and check the on road prices of these cars in Bangalore. His Budget is around 8 to 10 Lakhs on road.

The cars suggested for him are as follows:

1. Maruti Suzuki Vitara Brezza

Version: LXi

Petrol, Manual transmission, 1462cc

On road price (Bangalore) ₹ 8,83,806

ARAI Mileage City Mileage Highway Mileage 17.03kmpl 15-17kmpl 17-19kmpl

FEATURES:

Fuel Tank Capacity (Litres)	48
Engine Max Power	103.26bhp@6000rpm
Emission Norm Compliance	BS VI
Turning Radius (Metres)	5.2 metres
Front Brake Type	Ventilated Disc
Rear Brake Type	Drum
Length(mm)	3995
Width(mm)	1790
Height(mm)	1640
Boot Space (litres)	328
Seating Capacity	5
Wheel Base (mm)	2500
ABS	Available
No. of air bags	2
EBD	Available

Pros:

• Good in Style, Comfort and style.
• Mileage is good.
• Maruti Service.

Cons:

Light Body. Need to focus more on safety parameters.

2. Hyundai Venue

Version: E1.2 Petrol

Petrol, Manual,1197cc

On Road Price (Bangalore) : ₹ 8,17,372

ARAI Mileage City Mileage Highway Mileage 18.15kmpl 15-21kmpl 17-23kmpl

FEATURES:

Fuel Tank Capacity (Litres)	45
Engine Max Power	81.86bhp@6000rpm
Emission Norm Compliance	BS VI
Turning Radius (Metres)	5.1 metres
Front Brake Type	Ventilated Disc
Rear Brake Type	Drum
Length(mm)	3995
Width(mm)	1770
Height(mm)	1605
Boot Space (litres)	350
Seating Capacity	5
Wheel Base (mm)	2500
ABS	Available
No. of air bags	2
EBD	Available

Pros:

Stylish Look.

Mileage is also good.

Cons:

Costly car with less features.

Not a good build quality.

Engine power is very less as compared to other cars of this range.

3. Ford EcoSport

Version: Ambiente 1.5L Ti - VCT

Petrol, Manual, 1496cc

On road Price (Bangalore): ₹ 9,42,480

ARAI Mileage City Mileage Highway Mileage 15 kmpl 15-21kmpl 17-23kmpl

FEATURES:

Fuel Tank Capacity (Litres)	52
Engine Max Power	120.69bhp@6500rpm
Emission Norm Compliance	BS VI
Turning Radius (Metres)	5.3 metres
Front Brake Type	Ventilated Disc
Rear Brake Type	Drum
Length(mm)	3998
Width(mm)	1765
Height(mm)	1647
Boot Space (litres)	352
Seating Capacity	5
Wheel Base (mm)	2519
ABS	Available
No. of air bags	2
EBD	Available

Pros:

A stylish look.

Comfortable space inside the car.

Cons:

Costly car and the service also.

Mileage is also not good.

4. Tata Nexon

Version: XE

Petrol, Manual,1199cc

On road price (Bangalore) ₹ 8,54,010

ARAI Mileage City Mileage Highway Mileage 17 kmpl 16-22kmpl 18-24kmpl

FEATURES:

Fuel Tank Capacity (Litres)	44
Engine Max Power	118.3bhp@5500rpm
Emission Norm Compliance	BS VI
Turning Radius (Metres)	5.1 metres
Front Brake Type	Ventilated Disc
Rear Brake Type	Drum
Length(mm)	3993
Width(mm)	1811
Height(mm)	1606
Boot Space (litres)	350
Seating Capacity	5
Wheel Base (mm)	2498
ABS	Available
No. of air bags	2
EBD	Available

Pros:

5 star safety rating NCAP.

Mileage is good.

Well built body with spacious cabin.

Cons:

After sales service needs to be improved by Tata.

The Car that I would suggest for Mr.Pughazhyendhii is TATA NEXON for the following reasons.

• It is one of the cheapest crossover available in the Indian Markets
• The mileage of Nexon is good as compared to other cars of this segment.
• Got a 5 star safety rating in NCAP. Tata stresses on the safety of the passengers more than any other car manufacturers.
• Suitable for Indian Roads. Got a high ground clearance.
• It has got a stylish look and spacious cabin.

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