Benchmarking

BENCHMARKING

What is benchmarking?

• Benchmarking is a process of measuring and comparing the performance of a company's products, services, or processes againstthose of another business considered to be the best in the industry. The point of benchmarking is to identify internal opportunities for improvement.
• The intent of benchmarking is to generate ideas for improving processes, approaches, and technologies to reduce costs, increase profits and strengthen customer loyalty and satisfaction.

Why benchmarking is important?

• To promote best practices and processes for superior performance
• To build a culture for continuous improvements
• To gain competitive advantages

Benchmarking Processes:

• Planning

Identify the product and services or process to be benchmarked.

Determine data collection method and collect data.

• Analysis

Determine the gap between the company’s current performance and that of the competitors and identify the cause of significant gaps.

• Integration

Establish functional goals

• Action

Develop action plans, and team assignments, implement the plans, and monitor the process and recalibrate benchmark as improvements are made.

• Maturity

Attain leadership position, fully integrate practices into processes.

Let’s take an example to Benchmark presently available cars in the market for the following case.

• 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 found of big car

• Nowadays there are many cars to consider which are priced under 8 to 10 lakhs, hatchbacks, compact sedans, crossovers, compact SUVs and some of MPVs fall under this prices range.
• He requires a car for five family members and also he will be commuting to the office in the same car, considering that he is fond of big cars Compact SUV segment will be best suited for him.

Here is the list of cars which I would recommend Mr. D.S. Pughazhyendhii, to buy as per his requirements

1. Tata Nexon

2. Nissan Magnite

3. Renault Kigar

4. Honda Amaze

5. Hyundai Aura

1. Tata Nexon

2. Nissan Magnite

3. Renault Kigar

4. Honda Amaze

5. Hyundai Aura

Quick Tip:

• Visit multiple dealers, to check prices and discounts.
• Consider dealers who can give you better after-sales services.
• Fix your budget and do not go beyond it.

Conclusion:

• All Cars mentioned above are great at their respective segments and priced well.
• Here, I would recommend Tata Nexon as a perfect car for D.S. Pughazhyendhii, to buy as per his requirements.