Benchmarking

Objective:

1. What is Benchmarking and how is related and used in the Automobile Industry? Write a detail Report on Benchmarking .
2. Benchmark with presently available cars in the market for the given case. Finding a suitable car for Mr. D.S. Pughazhyendhii and family of 5 members with a baby of 5 years old. He is fond of big cars , used to travel 500 long drive to his native once in a month. He lives in the Bangalorecity. His budget is 8 - 10 lakh’son-road price. Give a Detail report of minimum 4 cars and suggest him a suitable car that satisfies all his considerations.

BENCHMARKING :

Benchmarking refers to the process of measuring and comparing the performance of a system, device, application, component , object or it can be the Automobile etc... against a set of predetermined standards or criteria.

• The purpose of benchmarking is to identify areas where performance can be improved and to determine how well a particular system or application is performing relative to similar systems or applications.
• Benchmarking is also used in business to compare the performance of one company or industry against another.
• By benchmarking industry leaders or best practices, companies can identify areas where they need to improve and implement strategies to become more competitive.
• Benchmarking is done in two steps that they categorize it and then they develop the detail report on the particular category.

Automobile Bemchmarking :

Automobile benchmarking is the process of measuring and comparing the performance, quality, and features of automobiles against predetermined standards or criteria.

• This helps automobile manufacturers to identify areas where they need to improve and determine their products and components are performing relative to similar products in the market.
• It helps to get updated to the present market.
• It also develops the competition level with in the market.
• It is also a kind of strategy tool used to compare the performance of the business processes and products with inside and outside of Companies & Industries.
• It is the search for industry best practices that lead to superior performance.
• It has the two stages that is primary benchmarking or Benchmarking-1 is comparing with existing component or existing one. Then is the Benchmarking-2 or the detailed Benchmaeking , here the detail report of the completed design or developed thing that satisfies the purpose of the Benchmarking. If not so then it is developed again to met or overcome the purpose of Benchmarking.
• It is a cyclic process that is repeated again and again to get the best results.

• There are several areas of Automobile Benchmarking that are commonly used, they are explained below.
  1. Competitive benchmarking: This type of benchmarking involves comparing the performance, features, and pricing of a company's products against its competitors' products. This helps automobile manufacturers to identify areas where they are lagging behind their competitors and develop strategies to close the gap.

  2. Process benchmarking: This type of benchmarking involves comparing the efficiency and effectiveness of a company's manufacturing processes against those of its competitors. This helps automobile manufacturers to identify best practices and improve their own processes to become more efficient and competitive.

  3. Strategic Benchmarking: Compares the strategies of successful businesses with those of your own, It helps you define strategic goals and steps forward for better results. Competitive Benchmarking. Compares company metrics directly to the competitors' metrics.

  4. Functional benchmarking: This type of benchmarking involves comparing specific functions or systems within a company's products against those of its competitors. For example, an automobile manufacturer might compare the fuel efficiency of its engines against those of its competitors.

  5. Internal benchmarking: This type of benchmarking involves comparing the performance of different departments or functions within a company to identify best practices and improve overall performance. For example, an automobile manufacturer might compare the efficiency of its production line in one plant to that of another plant.

  6. External benchmarking: This type of benchmarking involves comparing a company's performance against industry standards and best practices. This helps automobile manufacturers to identify areas where they need to improve to meet industry standards and remain competitive.

  7. Performance benchmarking: This type of benchmarking involves measuring the speed, acceleration, handling, and other performance factors of automobiles to compare against industry standards or competitors. This helps manufacturers to identify areas where they can improve the performance of their vehicles.

  8. Quality benchmarking: This type of benchmarking involves measuring the quality and reliability of automobiles, including components such as engines, transmissions, and electrical systems. This helps manufacturers to identify areas where they can improve the quality of their products to meet industry standards and customer expectations.

  9. Cost benchmarking: This type of benchmarking involves measuring the cost of manufacturing and producing automobiles, including labor, materials, and overhead. This helps manufacturers to identify areas where they can reduce costs and improve their profitability.

  10. Design benchmarking: This type of benchmarking involves measuring the design features and aesthetics of automobiles, including interior and exterior design, comfort, and convenience. This helps manufacturers to identify areas where they can improve the design of their vehicles to meet customer expectations and market trends.

  11. Generic benchmarking : This type is the process of analyzing two companies in different industries and comparing their general business functions. This refers to any type of function or feature that's common across industries, such as website functionality, hiring practices and administrative processes.

Process of Benchmarking:

Benchmarking is the Cyclic process that repets countaniously to obtain the better results while improving it considarbly.

1. Ientification and Planning Objectives: The first step in the benchmarking process is to identify the specific objectives and goals of the benchmarking activity. This might include improving product performance, reducing costs, or enhancing customer satisfaction.

2. Data Collection: Once the benchmarking partners have been identified, data collection begins. This may involve conducting surveys, collecting performance data, or conducting site visits to observe processes and procedures.

3. Analyze data: Once the data has been collected, it is analyzed to identify areas where the benchmarking partner is performing well and areas where improvements can be made. This analysis may involve comparing performance metrics or identifying best practices.

4. Implement or integration of improvements: Based on the data analysis, then develop and implement strategies to improve its performance or processes. This may involve adopting best practices, investing in new technology, or restructuring operations.

5. Monitor and evaluate: After improvements have been implemented, it's important to monitor and evaluate their effectiveness. This can help to identify further areas for improvement and ensure that the benchmarking process is delivering the desired results.

6. Repeat from step 1

Bechmarking uses and benefits in Automobile Industry:

Benchmarking has a number of uses in the automobile industry, majorly we are considering the five factors,

1. Product design: Benchmarking is used to identify best practices and industry standards in automobile design, materials, and manufacturing processes. This information is used by automobile manufacturers to design and build better products that are more reliable, durable, and efficient.

2. Manufacturing processes: Benchmarking is used to improve manufacturing processes by identifying areas where processes can be streamlined, quality can be improved, and costs can be reduced. This helps automobile manufacturers to produce vehicles more efficiently and at a lower cost.

3. Quality control: Benchmarking is used to improve quality control by identifying best practices and industry standards in quality control processes. This helps automobile manufacturers to ensure that their vehicles meet or exceed industry standards for safety, reliability, and performance.

4. Marketing and sales: Benchmarking is used to identify industry trends and customer preferences in the automobile market. This information is used by automobile manufacturers to design and market products that meet the needs and preferences of their customers.

5. Competitive Survival : Benchmarking solutions help Companies or Industries overcome the challenges, stay a step ahead of competitors, adopt innovative and new strategies, and champion their industry. It also provides companies with industry benchmarks, enabling them to improve their processes, systems, and business decisions.

There are also the some limitations and disadvantages of Benchmarking in Automobile Industry:

1. High costs: Benchmarking can be a costly process, particularly if it involves travel, data collection, reverse engineering, analysis etc... This can make it difficult for smaller companies to engage in benchmarking activities.

2. Limited availability of data: Benchmarking data may not be readily available or accessible, particularly if it involves confidential or proprietary information. This can limit the scope and accuracy of benchmarking activities. Here most of the companies uses the Reverse Engineering Methodology to obtain the benchmark details. But it takes a longer time and cost also will be high.

3. Difficulty in comparing different types of vehicles: It can be challenging to compare performance, features, and quality across different types of vehicles, such as sedans, SUVs, and trucks. This can limit the usefulness of benchmarking data for certain types of companies or products.

4. Time-consuming: Benchmarking requires a significant amount of time and effort to collect, analyze, and interpret data. This can be a drain on resources, particularly for companies with limited staff or expertise in benchmarking.

5. Over-reliance on competitors: Benchmarking can lead to over-reliance on competitors and limit innovation and creativity. Companies may become too focused on matching or surpassing competitors rather than developing unique products or processes.

6. Incomplete comparison: Benchmarking may not account for all relevant factors, such as differences in regulations, local conditions, or customer preferences. This can result in incomplete or inaccurate comparisons.

7. Copying of others: It is also leads to the copying the data and producing the same things or applying the same as the other companies follows , this leads to the copyright and patent violation issues

Even the Automobile benchmarking can provide valuable and useful data of product and process improvements, it's important to weigh the advantages against the potential disadvantages or limitations and to approach benchmarking activities thoughtfully and strategically to fulfill the need and reason of Benchmarking.

2. Case :

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

Note: Pughazhyendhii is fond of big cars

2. Prepare a report explaining what is Bench-Marking

3. Compare at least 4 vehicles.

4. Provide a proper conclusion for the report, suggesting a single suitable vehicle among the comparison

Summary/Synopsis:

By studying the given case it is understand that to finding a suitable car for Mr. D.S. Pughazhyendhii and family of 5 members with a baby of 5 years old. He is fond of big cars , used to travel 500kms long drive to his native once in a month. He lives in the Bangalorecity. His budget is 8 - 10 lakh’son-road price. Give a Detail report of minimum 4 cars and suggest him a suitable car that satisfies all his considerations. Benchmarking the detail report on it.

Introduction:

In the Indian Automobiles the starting price of the four wheeler passenger vehicle is 3.5Lakhs onwards.

• Maruthi Suzuki has cost affordable cars than the other Brands its has over 10 models and various variants under 10Laks of price range .
• Our trusted brand TATA has the starting price of 5.4Lakhs and it has the world record of best affordable car at the price of a two wheeler (2-3.5Lakhs on-road0 unfortunately it has been stopped now.
• similarly there are various brands cars are available in the Indian Automobile market.
• Now the market is occuping fastly with Elecric Vehicsls and Hybrid vehicles market is also raising graduvally.
• But the Price of the Electric vehicle(EV) and Hybrid Electric Vehicle(HEV) is high compare to the regular combustion vehicles Petrol and Diesel Versions.
• The starting price of EV is 8.5Lakhs by the TATA Tiago EV, this year Mahindra E400 is launched with the agrassive range of 15lakhs and many other are launching their EV models and Some of them have their HEV versions also .
• Recently Tayota Urban Cruiser has launched the Hybrid version with a price range of 16Lakhs and offers millage of 24-28KMPL.

Selecting Suiatable Car

• Based on the case study of Mr. D.S. Pughazhyendhii here are the cars listed bellow for the price range of 8-10Lakhs

SL NO	COMPANY	MODEL	PRICE RANGE ONROAD (LAKHS)	TYPE OF MODEL	COCEDARATION	REASON
1	Citrogen	C3	6.5 - 9.0	Sedan	NO	Not SUV
2	Honda	Amaze	7.50 - 11.75	Sedan	NO	Not SUV
3	Honda	Jazz	8.80 - 11.60	Hatchback	NO	Not SUV
4	Hyundai	I-20	7.30 - 11.50	Mini Hatchback	NO	Not SUV
5	Hyundai	Aura	6.99 - 10.5	Sedan	NO	Not SUV
6	Hyundai	Venue	8.50 - 13.75	Hatchback	NO	Not SUV
7	Kia	Sonet	8.60 - 14.89	SUV	NO	No AMT in the price range
8	Mahindra	KUV 100	6.40 - 8.20	Hatchback	NO	Not SUV
9	Mahindra	XUV 3OO	9.20 - 16.50	Compact SUV	YES	Worth Buying
10	Suzuki	Shift	6.75 - 9.85	Sedan	NO	Not SUV
11	Suzuki	Dezire	6.98 - 9.20	Hatchback	NO	Not SUV
12	Suzuki	Baleno	7.45 - 10.65	Hatchback	NO	Not SUV
13	Suzuki	Ciaz	9.50 - 13.10	Hatchback	NO	Not SUV
14	Suzuki	Eartiga	9.45 - 11.80	Sedan	NO	Not SUV
15	Suzuki	Brezza	8.20 - 15.10	Compact SUV	YES	Worth Buying
16	Nissan	Magnite	5.75 - 10.20	Compact SUV	YES	Worth Buying
17	Renault	Triber	6.40 - 9.00	MUV	NO	Failure
18	Renault	Kiger	6.45 - 10.90	Crossover SUV	NO	Failure
19	TATA	Tiago	6.50 - 12.90	Hatchback	NO	Not SUV
20	TATA	Tiago EV	8.8 - 12.30	Hatchback	NO	Not SUV
21	TATA	Altroz	7.25 - 11.30	Hatchback	NO	Not SUV
22	TATA	Tigor	7.10 - 14.29	Sedan	NO	Not SUV
23	TATA	Punch	6.99 - 10.55	SUV	YES	Worth Buying
24	TATA	Nexon	8.50 - 15.20	SUV	YES	Worth Buying
25	Tayota	Glangza	7.59 - 12.00	Hatchback	NO	Not SUV
26	Tayota	Urban Cruiser	9.50 - 12.60	SUV	NO	Rebadged car of Suzuki Brezza

Based on the requirements and Cost limitations out of 26 cars only 5 are selected for the Benchmarking. The detailed Benchmarking along with Images of it are attached bellow.

• The suiatable type of car is SUV because Mr. D.S. Pughazhyendhii is fond of big cars and he travels 500Kms every month with family
• Automatic Transmission will be the best option, to drive easily in th highly crouded and high trafic areas in Banglore.
• Electric Varients is not prefarable as Mr. D.S. Pughazhyendhii requires long range of 500Kms of Drive. There are no cars available and for charging he may face the issues.
• Child safety is also cosidered as Mr. D.S. Pughazhyendhii has 5 year old child.

All the details of the vehicle is provided for the AMT (Automatic Transmission) version

1. MAHINDRA XUV-3OO:

Manufacturer - MAHENDRA & MHINDRA

Model - XUV 3OO W6 Petrol

Fuel Type - Petrol

On-Road Price - 10,50,500/-

Mialege - 17kmpl Highway, 14.5 kmpl city

Type : mStallion - Turbo Charged intercooled Gasoline Direct injection (TGDi) engine

Capacity : 1.2 L

No of Cylinders : 3

Max. Power : 96 kW & 110 Hp @ 5000 r/min

Max. Torque : 230 Nm @ 1500-3750 r/min

Transmission Type : 6-speed AutoSHIFT

Key Features - Electric Sunroof, Infotainment with Bluetooth Connectivity, Steering-mounted Controls, Supervision Cluster with 8.89 cm TFT Screen, Rear Parking Sensors,

LxWxH : 3995 mm x 1821 mm x 1627 mm

Wheelbase : 2600 mm

Boot Space : 257Ltrs

Front Suspension : MacPherson Struts Anit-roll Bar

Rear Suspension : Twist Beam Suspension with Coil Spring

Brakes : Front & Rear Disc Brakes

Wheels & Tyres : 205/65 R16 (Steel & Alloy)

Fuel Tank Capacity : 42L

Travel Range : 650 - 700 km

Airbags : 2

Ground Clearence : 190mm

Child Safety : ISOFIX Child seat mounts available on rear.

Safety Ratings - Achived Global NCAP's 'Safer Choice' Award

Driver Safety - 5 Star

Child Safety - 4 Star

Best For : Price, handling, performance

Against: Not much

Alternatives or compitators: 1. Hyundai Venue 2. Maruti Suzuki Vitara Brezza 3. Renault Kiger

2. Suzuki Brezza :

Manufacturer - Maruthi Suzuki Motors

Model - Brezza ZXI AT

Fuel Type - Petrol

On-Road Price - 10,30,000/-

Mialege - 19.80 kmpl combined

Engine Type : K15C Smart Hybrid

Capacity : 1462 cc

No of Cylinders : 3

Max. Power : 75.8 kW @ 6000 rpm

Max. Torque : 136.8 Nm @ 4400 rpm

Transmission Type : 6-speed AutoSHIFT

Key Features - Electric Sunroof, Infotainment with Bluetooth Connectivity, Steering-mounted Controls, Supervision Cluster with 8.89 cm TFT Screen, Rear Parking Sensors, 360 deg camera,

LxWxH : 3,994 mm L x 1,758 mm W x 1,572 mm H

Wheelbase : 2500 mm

Ground Clearence : 205mm

Boot Space : 336Ltrs

Front Suspension : Mac Pherson Strut & Coil Spring

Rear Suspension : Torsion Beam & Coil Spring

Brakes : Front-Ventilated Disc & Rear-Drum

Wheels & Tyres : 215/60 R16 (Steel & Alloy)

Fuel Tank Capacity : 48 L

Airbags : 6

Child Safety :ISOFIX Child Seat Restraint System

Adult Safety - 4 Star

Child Safety - 2 Star

No of Colours : 4

Best For: Space, practicality, ride quality

Against: Steering feel, inadequate power. Verdict: Stylish new compact crossover on a budget

Alternatives: 1. Mahindra XUV300 2. Hyundai Venue 3. Renault Kiger

3. NISSAN MAGNITE:

Manufacturer - NISSAN

Model - MAGNITE CVT

Fuel Type - Petrol

On-Road Price - 9,50,000/-

Mialege - 18.75 kmpl combined

Engine Type : HRA0 1.0 TURBO PETROL

Capacity : 999 cc

No of Cylinders : 3

Max. Power : 98.63BHP @5000RPM

Max. Torque : 152nm@2200-4400rpm

Transmission Type : CVT AUTOMATIC

LxWxH : 3995 mm x 1790 mm x 1685 mm

Wheelbase : 2500 mm

Boot Space : 328Ltrs

Brakes : Front Disc & Rear-Drum

Wheels & Tyres : 215/60 R16 (Steel & Alloy)

Fuel Tank Capacity : 40 L

Airbags : 2

Adult Safety - 4 Star

Child Safety - 2 Star

No of Colours : 8

Best For : Value, space, comfort, design

Against: Not as sturdy as rivals

Alternatives: 1. Hyundai Venue 2. Maruti Suzuki Vitara Brezza 3. Toyota Urban Cruiser

4. TATA PUNCH:

Manufacturer - TATA Motors

Model - 1.2 Revotron Engine

Fuel Type - Petrol

On-Road Price - 9,20,000/-

Mialege - 18.80 kmpl combined

Capacity : 1199 cc

No of Cylinders : 3

Max. Power : 87.8 kW @ 6000 rpm

Max. Torque : 115 Nm @ 3250 rpm

Transmission Type : 5-speed AutoSHIFT

LxWxH : 3827 mm L x 1,742 mm W x 1,615 mm H

Wheelbase : 2445 mm

Ground Clearence : 190mm

Boot Space : 366Ltrs

Front Suspension : Independent , lower wishbone, Mac Pherson Strut & Coil Spring

Rear Suspension : Semi-Independent twist beam Beam with Coil Spring & Shock absorber

Brakes : Front Disc & Rear-Drum

Wheels & Tyres : 185/70 R15 (Steel & Alloy), 195/60 R16 (Steel & Alloy)

Fuel Tank Capacity : 37 L

Airbags : 2

Adult Safety - 4 Star

Child Safety - 2 Star

No of Colours : 8

Besr For: Style, equipment, safety

Against: Quality and consistency

Alternatives: 1. Maruti Suzuki Ignis 2. Renault Triber

5. TATA NEXON:

Manufacturer - TATA Motors

Model - 1.2ltr Revotron Engine Turbo charged

Fuel Type - Petrol

On-Road Price - 10,30,000/-

Mialege - 17.05 kmpl combined

Capacity : 1199 cc

No of Cylinders : 3

Max. Power : 88.2 kW @ 5500 rpm

Max. Torque : 170 Nm @ 1750-4000 rpm

Transmission Type : 6-speed AutoSHIFT

LxWxH : 3993 mm L x 1811 mm W x 1606 mm H

Wheelbase : 2498 mm

Ground Clearence : 209mm

Boot Space : 350Ltrs

Front Suspension : Independent , lower wishbone, Mac Pherson Strut & Coil Spring

Rear Suspension : Semi-Independent , closed twist beam Beam with Dual path strut

Brakes : Front Disc & Rear-Drum

Wheels & Tyres : 195/60 R16 (Steel & Alloy), 215/60 R16 (Steel & Alloy)

Fuel Tank Capacity : 44 L

Airbags : 2

Child Safety :ISOFIX Child Seat Restraint System

Adult Safety - 5 Star

Child Safety - 3 Star

No of Colours : 8

Best For: Exterior styling, equipment.

Against: Ergonomics, fit-and-finish, practicality.

Alternatives: 1. Maruti Suzuki Brezza 2. Kia Sonet 3. Renault Kiger

Conclusion:

Based on the detailed benchmarking and comparision of 5 automobiles Mahindra XUV 3OO and TATA Nexon are similar and have the highest values of effeciency , fuel economy and Safety.

My Suggestion to Mr. D.S. Pughazhyendhii is Mahindra XUV 3OO is the best choice in my openion. It has the best Global NCAP award of safest car and the rating is high. The engine is more refigned , High Asthetic appreance, and decent miliage also. Once if he fuel fill that is enough to go his native village. The ridequality is also quite impressive. It has the additional features of Sunroof , 360 deg Camera, ISOFIX Child Seat Restraint System, and 6 airbags in total and it is also one of the top selling car model in the market. The brand of Mahinra Automobiles have the resale value and sevice cost is moderate among the others. So that I suggest the Mahindra XUV 3OO is best suitable and fullfils all the requirements of Mr. D.S. Pughazhyendhii and his family and easy to drive in Banglore Trafic conditions with Automatic transmission.