Benchmarking

Challenge: 1. 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 made with images.

Answer:

Bench marking is the process that used to measure the performance of company’s product, service & process against the other competitors in the market. It will help the companies to search for the best techniques/methods to improve their productivity & performance of the product.

It is a continuous & repeated process in order to produce the products which are best-in-market.

Benefits of benchmarking

• To understand the customer requirements.
• To understand the performance gaps inside & outside the company.
• To monitor & improve company performance in the market.
• To setting goals & measuring productivity.
• To identify the competitors & to become more competitive in market.

Steps involved in Bench Marking

1. Identify the Customer requirement for the product: In this stage based on customer requirement or market demands, the product will be decided. Product development has to be initiated with the employees who has the knowledge regarding the product.
2. Identify the Competitor: Identify all the competitor producing similar product. Observe their products & variants.
3. Understand the process: Identify the procedures to produce the parts.
4. Data Collection & Analysis: Collect the data from different sources to know better about competitor’s product & its performance.
5. Set Goal: In this stage set a goal & improve your performance by adopting the best organisation practices.
6. Monitor & Repeat: Monitor the productivity, continuously change or improve production techniques to become more competitive in market

Types of Bench Marking

1. Internal Bench Marking: It is help the company to improve the internal performance of the company. For example one assembly line of the production unit do the work effectively & quickly compare to other assembly line. Learn the techniques from the best assembly line & apply to all the assembly lines in the company.
2. External Bench Marking: In this we identify all the competitors in market. All the data regarding their product will be collected & analysed using different sources such as magazines, company website, research papers…etc. With all the information we need to search for the new technologies/methods to improve our product quality & productivity.
3. Strategic Bench marking: We need to observe & learn from the successful companies. We need to find their strategy to get the top position in the market. Decode the success formula & apply to your organisation.
4. Competitive Benchmarking: In this our process & merits compared with competitor is process & merits. With this method it can be known that why the competitor has more growth in the market.

Mr. D.S. Pughazhyendhii requirements

1. Seating capacity 5-7 as his family consist of 5 members.
2. Suitable for city ride & long rides.
3. Budget 8-10 Lac.
4. Mileage, as he want to travel to his native place which is 500km away from his current location.
5. Big car

Comparison of best of the market

	Tata Nexon	Maruti Brezza	Mahindra XUV300	Hyundai Venue
On Road Price	Rs.9,84,936	Rs.9,18,520	Rs.9,39,491	Rs.8,66,012
Engine Type	1.2l Turbocharged Revotron Engine	K15C Smart Hybrid	1.2L Petrol	1.2 Kappa Petrol
Displacement (cc)	1199	1462	1197	1197
No Of Cylinder	3 Cylinder	4 Cylinder	3 Cylinder	4 Cylinder
Max Power (bhp@rpm)	118.35bhp@5500rpm	101.65bhp@6000rpm	108.62bhp@5000rpm	81.80bhp@6000rpm
Max Torque (nm@rpm)	170Nm@1750-4000rpm	136.8nm@4400rpm	200Nm@2000-3500rpm	113.8Nm@4000rpm
Valves Per Cylinder	4	4	4	4
Transmission Type	Manual	Manual	Manual	Manual
Gear Box	6 Speed	5-Speed	6 Speed	5-Speed
Fuel Type	Petrol	Petrol	Petrol	Petrol
Mileage	17.33 kmpl	20.15 kmpl	16.82 kmpl	16.0 kmpl
Fuel Tank Capacity	44.0 (Litres)	48.0 (Litres)	42.0 (Litres)	45.0 (Litres)
Emission Norm Compliance	BS VI	BS VI	BS VI	BS VI
Length (mm)	3993	3995	3995	3995
Width (mm)	1811	1790	1821	1770
Height (mm)	1606	1685	1627	1617
Ground Clearance Unladen (mm)	209	-	-	-
Wheel Base (mm)	2498	2500	2600	2500
Seating Capacity	5	5	5	5
Boot Space (Litres)	350	328	-	-
No. of Doors	5	5	5	5
Global NCAP Rating	5	5	4	4
Anti Lock Braking System	Yes	Yes	Yes	Yes
Brake Assist	Yes	-	-	No
Central Locking	Yes	Yes	Yes	Yes
Power Door Locks	-
No Of Airbags	2	2	2	2
Driver Airbag	Yes	Yes	Yes	Yes
Passenger Airbag	Yes	Yes	Yes	Yes

Conclusion: I would suggest Tata Nexon will be the best choice for Mr. D.S. Pughazhyendhii.

Reasons

1. As per my consideration Safety is the prime factor, as the Global NCAP rating is 5.
2. Ground clearance is good, so it is suitable for off roads.as per the information provided Mr. D.S. Pughazhyendhii travels 500kms to reach his home town.
3. The overall performance is good.