Benchmarking
BENCHMARKING
Benchmarking is a process of measuring the performance of a company's products, services, or processes against those of another business considered to be the best in the industry, aka “best in class.” The point of benchmarking is to identify internal opportunities for improvement.
In automobile industry 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.
There are two basic kinds of improvement opportunities: continuous and dramatic. Continuous improvement is incremental, involving only small adjustments to reap sizeable advances. Dramatic improvement can only come about through reengineering the whole internal work process.
Benchmarking is a simple, but detailed, five-step process:
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Choose a product, service, or internal department to benchmark
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Determine which best-in-class companies you should benchmark against which organizations you’ll compare your business to
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Gather information on their internal performance, or metrics
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Compare the data from both organizations to identify gaps in your company’s performance
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Adopt the processes and policies in place within the best-in-class performers
In order to benchmark anything, you need to have quantitative data available to study. That means breaking down internal processes to calculate performance metrics. Quantify everything, because only quantifiable information can be accurately compared.
Benefits-
In addition to helping companies become more efficient and profitable, benchmarking has other benefits, too, such as:
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Improving employee understanding of cost structures and internal processes
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Encouraging team-building and cooperation in the interests of becoming more competitive
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Enhancing familiarity with key performance metrics and opportunities for improvement company-wide
CASE STUDY
Problem Statement-
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
Approach-
Since Mr. D.S. Pughazhyendhii has a family of 5 members we will have to select a car where 5 people can sit comfortably in a car. And since he visits his native place once in a month he will need a car which is comfortable and has an decent amount of boot space to carry the luggages.
First we will have to decide which category of car he will buy. So considering all the above requirements he can go for a premium hatchback, compact SUV or a compact sedan. We will not cosider smaller hatchback because 5 people cannot sit comfortably and since he has a buget of upto 10 lakhs he can go for premium hatchback. Sedans and SUVs are above the budget.
List of cars-
Here are some list of cars and its specification which we shortlited considering all the requirements.
And all the specifications are according to the variants of the car which are under 10 lakh.
1.Tata Altroz
Engine-
Engine : 1199 cc, 3 Cylinders Inline, 4 Valves/Cylinder, DOHC
Engine Type: 1.2 L Revotron
Fuel Type:Petrol
Max Power (bhp @rpm): 85 bhp @ 6000 rpm
Max Torque (Nm@rpm): 113 Nm @ 3300 rpm
Mileage (ARAI): 19.05 kmpl
Driving Range: 704.85 Km
Drivetrain: FWD
Transmission-
Manual - 5 Gears
Emission Standard: BS 6
Dimensions & Weight-
Length: 3990 mm
Width: 1755 mm
Height: 1523 mm
Wheelbase: 2501 mm
Ground Clearance: 165 mm
Kerb Weight: 1461 kg
Safety-
Airbags: 2 Airbags (Driver, Passenger)
Child Seat Anchor Points: Yes
Seat Belt Warning: Yes
NCAP Rating: 5 star
Capacity-
Doors: 5 Doors
Seating Capacity: 5 Person
No of Seating Rows: 2 Rows
Bootspace: 345 litres
Fuel Tank Capacity: 37 litres
2. Hyundai i20
Engine and Transmission-
Engine: 1197 cc, 4 Cylinders Inline, 4 Valves/Cylinder, DOHC
Engine Type: 1.2 l Kappa
Fuel Type: Petrol
Max Power (bhp@rpm): 82 bhp @ 6000 rpm
Max Torque (Nm@rpm): 115 Nm @ 4200 rpm
Mileage (ARAI): 20.35 kmpl
Driving Range: 753 Km
Drivetrain: FWD
Transmission-
Manual - 5 Gears
Emission Standard: BS 6
Dimensions & Weight-
Length: 3995 mm
Width: 1775 mm
Height: 1505 mm
Wheelbase: 2580 mm
Ground Clearance: 170 mm
Safety-
Airbags: 2 Airbags (Driver, Front Passenger)
Tyre Pressure Monitoring System (TPMS): Yes
Seat Belt Warning: Yes
NCAP Rating- Not yet rated
Capacity-
Doors: 5 Doors
Seating Capacity: 5 Person
No of Seating Rows: 2 Rows
Bootspace: 311 litres
Fuel Tank Capacity: 37 litres
3.Maruti Suzuki Baleno
Engine-
Engine Type:1.2L VVT
Fuel Type: Petrol
Max Power (bhp@rpm): 82 bhp @ 6000 rpm
Max Torque (Nm@rpm): 113 Nm @ 4200 rpm
Mileage (ARAI): 19.56 kmpl
Driving Range: 723.72 Km
Drivetrain: FWD
Transmission-
Automatic (CVT): CVT Gears
Emission Standard: BS 6
Dimensions & Weight-
Length: 3995 mm
Width: 1745 mm
Height: 1510 mm
Wheelbase: 2520 mm
Ground Clearance:170 mm
Kerb Weight: 865 kg
Safety-
Airbags: 2 Airbags (Driver, Passenger)
Child Seat Anchor Points: Yes
Seat Belt Warning: Yes
NCAP Rating: 3 star
Capacity-
Doors: 5 Doors
Seating Capacity: 5 Person
No of Seating Rows: 2 Rows
Bootspace: 339 litres
Fuel Tank Capacity: 37 litres
4.Tata Nexon
Engine-
Engine:1199 cc, 3 Cylinders Inline, 2 Valves/Cylinder, SOHC
Engine Type: 1.2L Turbocharged Revotron
Fuel Type: Petrol
Max Power (bhp@rpm): 118 bhp @ 5500 rpm
Max Torque (Nm@rpm): 170 Nm @ 1750 rpm
Mileage (ARAI): 17.4 kmpl
Driving Range: 765.6 Km
Drivetrain: FWD
Transmission-
Manual - 6 Gears, Sport Mode
Emission Standard: BS 6
Dimensions & Weight-
Length: 3993 mm
Width: 1811 mm
Height: 1606 mm
Wheelbase: 2498 mm
Ground Clearance: 209 mm
Safety-
Airbags: 2 Airbags (Driver, Passenger)
Child Seat Anchor Points: Yes
Seat Belt Warning: Yes
Capacity-
Doors: 5 Doors
Seating Capacity: 5 Person
No of Seating Rows: 2 Rows
Bootspace: 350 litres
Fuel Tank Capacity: 44 litres
5.Honda Amaze
Engine-
Engine: 1199 cc, 4 Cylinders Inline, 4 Valves/Cylinder, SOHC
Engine Type: i-VTEC
Fuel Type: Petrol
Max Power (bhp@rpm): 89 bhp @ 6000 rpm
Max Torque (Nm@rpm): 110 Nm @ 4800 rpm
Mileage (ARAI):18.3 kmpl
Driving Range: 640.5 Km
Drivetrain: FWD
Transmission-
Automatic (CVT) - 7 Gears, Paddle Shift
Emission Standard: BS 6
Dimensions & Weight-
Length: 3995 mm
Width: 1695 mm
Height: 1498 mm
Wheelbase: 2470 mm
Kerb Weight: 905 kg
Safety-
Airbags: 2 Airbags (Driver, Passenger)
Child Seat Anchor Points: Yes
Seat Belt Warning: Yes
Capacity-
Doors: 4 Doors
Seating Capacity :5 Person
No of Seating Rows: 2 Rows
Bootspace: 420 litres
Fuel Tank Capacity: 35 litres
Conclusion-
There are many cars in this 8-10 lakh budget but the top 5 cars which we thought was suitable was mentioned above. Mr. D.S. Pughazhyendhii is fond of big casr but he did not mention which category of car he wanted so we included premium hatchbacks and compact SUV and a compact sedan. We have mentioned all the basic specifications of the car but there are more many features too which we did not mention which some cars have and some doesn't.
Now taken into cosideration all the comditons we decided that Tata Altroz is the car Mr. D.S. Pughazhyendhii should buy because Tata Altroz may not be the most spacious among others but more comfortable for all the three passengers, especially the middle passenger since it has a flat floor and also it the most safest car in this price range with 5 star rating. It packs in all the feature while in other car model it will exceed 10lakh mark to get all the features. The driving dynamics is aslo better in Tata Altroz which boosts confidence in the driver.
Because of all these reasons Tata Altroz is the most suitable car for Mr. D.S. Pughazhyendhii.