Benchmarking

BENCHMARKING

• Benchmarking is a process of comparing or measuring the performance of a company's products or services, or processes against those of another business considered to be the best in the industry.
• The point of benchmarking is to identify best product in the market or to improve the performance of the product.
• By studying companies with superior performance, breaking down what makes such superior performance possible, and then comparing those processes to how your business operates, you can implement changes that will yield significant improvements.
• Benchmarking 1 is used for comparing of the price features and segments, whereas Benchmarking 2 is used for comparing the features of individual components.

Benchmarking 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 particularly useful when comparing not only performance but also 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

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

Note: Pughazhyendhii is fond of big car

Based on the above case, we can consider following as the requirements:

• Car should be comfortable for 5 members
• Need safe car for family
• Car should give good mileage
• Car should suit for long journey
• Budget is 8 -10 lakhs

Now we are comparing the 4 cars based on the above requirements –

1. Tata Nexon

• The Tata Nexon comes with a petrol variant 1.2 L Revotron I3-T (petrol), which gives a ARAI certified mileage of 17.88 kilometres per litre.
• It is powered by 1.2 litre Revotron engine which exerts a maximum power of 120 PS @5000 rpm and a maximum torque of 170 nm @ 1500-2750 rpm.
• It is priced at 9.02 lakhs (on road Bangalore). It stands at a decent price point at its segment.
• It has a fuel tank capacity of 44 litres.
• It is the first car launched with the self-shift gear technology.
• The dimensional length, width and height of the car are 3994 mm, 1811 mm and 1607 mm respectively. Also a wheelbase of 2498 mm. The ground clearance is outstanding with 209 mm which is best for Indian road conditions.

Mileage: ARAI - 17.88, Highway – 19, City - 17

Talking Points: Self Shift Gear, Child Seat Anchor, 3 Tone Interior (Best in terms of performance)

Bloopers: High Maintenance cost

2. Honda WR-V

• The WR-V IVTEC S (Petrol) is a mid-petrol variant in WR-V line up and is priced at 10.64 lakhs (on road Bangalore).
• It is powered by a 1.2 litre IVTEC petrol engine which produce a maximum power of 90 PS @ 6000rpm and maximum torque of 110 Nm @ 4800rpm.
• It has a fuel tank capacity of 40 litres.
• It comes with a six speed manual gear box.
• Honda also claims an average mileage of 17.5 kmpl for this mid edge edition IVTEC S variant.
• The dimensional length, breadth and height are 4000mm, 1740mm and 1600mm. Also a wheelbase of 2550 mm. It has a ground clearance of 188 mm.

Mileage: ARAI - 17.5, Highway – 18, City - 14

Talking Points: Keyless Entry, Best warranty (3 years)

Bloopers: Large difference in mileage between city and highway

3. Ford EcoSport

• Ford EcoSport 1.5 petrol Trend is the mid petrol variant is the EcoSport line up and is priced at 9.93 lakhs (on road Bangalore).
• It is powered by a 1.5 litre Ti-VCT which produces a maximum power of 121.36 bhp @ 6500 rpm and maximum torque of 150 nm @ 4500 rpm.
• The five speed manual transmission is a joy to drive.
• It has a fuel tank capacity of 52 litres.
• It also gives a mileage of 17 kmpl which is excellent for a 1.5 litre SUV.
• The dimensional length, width and length are 3998 mm, 1765 mm and 1647 mm respectively. Also a wheelbase of 2519 mm. It has a ground clearance of 200mm.

Mileage: ARAI – 17, Highway – 18, City - 15

Talking Points: Good looking Exterior, Highest Displacement

Bloopers: Old 5 speed manual transmission, Very costly service

4. Maruti Suzuki Vitara Brezza

• Maruti Suzuki Vitara Brezza is the starting variant in the Vitara Brezza line up and is priced at 9.2 lakhs (on road Bangalore).
• It is powered by a 1.3 litre solo engine which produces a maximum power of 90 bhp @ 4000 rpm and a maximum torque of 200 nm @ 1750rpm.
• It comes with a 5 speed manual transmission which is very smooth and light to drive.
• The fuel tank capacity is 48 litres.
• It gives mileage of 22 kmpl.
• The dimensional length, width and height are 3995 mm, 1790 mm and 1640 mm. Also a wheelbase of 2500 mm. It has a ground clearance of 198 mm.

Mileage: ARAI - 24.3, Highway – 24, City - 22

Talking Points: Impressive efficiency, Practical cabin, If last row is folded we get a lot of room for luggage

Bloopers: No petrol engine option

Summary

The cars were examined by using the requirements given by Mr. D. S. Pughazhyendhii. Maruti Suzuki Vitara Brezza was found to be the most suitable car. It has the best in class features and is the leader in terms of performance is concerned. It is also fully packed with a lot of features which are not given in all other three cars. It also comes with a very good triple tone interior and a very aggressive exterior which is most suitable for a SUV. Maintenance cost also very low comparing other three cars.

Hence, I would suggest Mr. D.S. Pughazhyendhii to go for Maruti Suzuki Vitara Brezza based on the above conclusion.