Benchmarking

What is Benchmarking?

Benchmarking is a way of discovering what is the best performance being achieved – whether in a particular company, by a competitor or by entirely different industry.

This information can then be used to identify gaps in an organization’s processes to achieve a competitive advantage.

Objectives of Benchmarking

• Understand fully the purpose and use of benchmarking.
• Understand the difference between benchmarking and competitor research.
• Gain insight to ensure that benchmarking is in alignment with the company’s management objectives.

Three Primary Classifications of Benchmarking:

Although there are many forms of benchmarking, they can be classified into three categories – internal, competitive and strategic.

1. Internal benchmarking is used when a company already has established and proven best practices and they simply need to share them. Again, depending on the size of the company, it may be large enough to represent a broad range of performance (i.e., cycle time for opening new accounts in branches coast to coast). Internal benchmarking also may be necessary if comparable industries are not readily available.

2. Competitive benchmarking is used when a company wants to evaluate its position within its industry. Also, competitive benchmarking is used when a company needs to identify industry leadership performance targets.

3. Strategic benchmarking is used when identifying and analysing world-class performance. This form of benchmarking is used most when a company needs to go outside of its industry.

Question:

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.

According to the Budget range which is 8 to 10 Lakhs (On-road), with respect to carwale site we can compare the Compact SUV's in the price range as he is fond of big cars.

Suitable Cars :

• Tata Nexon
• Hyundai Venue
• Mahindra XUV300
• Maruti Suzuki Brezza

Basic characteristics of cars:

1. Good seating arrangement.
2. Safety.
3. BS6 Engine used.
4. Good Mileage.
5. Good Interiors.

{Other options eliminated due to either they are sister brands or due to brand value concerns}

Models and Specifications:

(Considered are base models)

Models	Tata Nexon	Mahindra XUV300	Hyundai Venue	Maruti Suzuki Brezza
Engine	1199 cc, 3 Cylinders Inline, 2 Valves/Cylinder, SOHC	1197 cc, 3 Cylinders Inline, 4 Valves/Cylinder, DOHC	1197 cc, 4 Cylinders Inline, 4 Valves/Cylinder, DOHC	1462 cc, 4 Cylinders Inline, 4 Valves/Cylinder, DOHC
Engine Type	1.2L	1.2L	1.2 Kappa	K15B
Fuel Type	Petrol	Petrol	Petrol	Petrol
Max Power (bhp@rpm)	118 bhp @ 5500 rpm	109 bhp @ 5000 rpm	82 bhp @ 6000 rpm	103 bhp @ 6000 rpm
Max Torque (Nm@rpm)	170 Nm @ 1750 rpm	200 Nm @ 2000 rpm	114 Nm @ 4000 rpm	138 Nm @ 4400 rpm
Mileage (ARAI) (kmpl)	17.4	17	17.5	17.03
Driving Range (Km)	765.6	714	789	817.44
Drivetrain	FWD	FWD	FWD	FWD
Transmission	Manual - 6 Gears	Manual - 6 Gears	Manual - 5 Gears	Manual - 5 Gears
Emission Standard	BS6 PHASE 2	BS6 PHASE 2	BS6 Phase 2	BS6 PHASE 2
Seating Capacity	5	5	5	5
Safety	5 STAR	5 STAR	4 STAR	4 STAR
Pros	Upmarket looks, Five-star G-NCAP safety Spacious cabin compared to rivals Easy to drive and live with	Powerful motors AMT is among the best in its class Comfortable ride quality	Quality interiors Lots of powertrain options Features list	High seating, easy to drive Peace of mind ownership Popular compact SUV
Cons	Interior quality Motor's low-end grunt Infotainment screen not as good as rivals	Top-end variants are pricey Interior fit and finish is not the best Looks disproportionate	Cabin space isn’t generous 1.2-litre petrol only available in entry-level trims Top-spec variants are costly	Unexciting engine response and exterior design Firm slow-speed ride Ordinary fit and finish
Images

Conclusion :-

• I would suggest Tata Nexon for Mr.D.S.Pughazhyendhii because of the Five star G-NCAP Safety and it has more power (BHP),BS6 Complaint and spacious cabin compared to rivals.
• Overall it has good performance, good mileage capabilities and is a value for money.