Benchmarking

BENCHMARKING: Benchmarking in the automobile industry 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 beneficial when comparing performance and 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 sin e studying how the ‘best’ achieve their performance can 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.

Whilst 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 competitive advantage totem. 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.

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 the road. Please suggest to him options so that he will buy a good car for his family.

Note: Pughazhyendhii is fond of big cars.

SUGGESTED CARS

1. NISSAN SUNNY XL (Diesel)
2. MARUTI SUZUKI Ciaz 1.3L Sigma Smart Hybrid (Diesel)
3. TATA NEXON XZ Plus (Petrol)
4. HYUNDAI AURA SX Plus 1.2 AMT (Diesel)
5. MARUTI SUZUKI Vitara Brezza VDI (Diesel)

TECHNICAL SPECIFICATION OF ABOVE CARS :

1. NISSAN SUNNY XL (Diesel)

Pros

• Excellent boot space
• Spacious interior, good legroom
• Revised exteriors are enticing

Cons

• Loose handling
• Low ground clearance

2. MARUTI SUZUKI Ciaz 1.3L Sigma Smart Hybrid (Diesel)

Pros

• Automatic LED Projector Headlamp
• LED Fog Lamp
• New 1.5-litre Petrol Engine with SHVS Technology

Cons

• No Diesel Automatic

3. TATA NEXON XZ Plus (Petrol)