Benchmarking

BENCHMARKING

• What is benchmarking?

Benchmarking is a process of comparison between similar products in a structured manner. In general, it is a tool used in many industries to provide an effective comparison between competitors so as to positively improve the internal design processes and thereby better the outcomes.

From the viewpoint of the automotive industry, which is the scope of this project, it simply means comparing vehicles belonging to the same class and price bracket to improve designs (from the manufacturer point of view) and to make a suitable selection (from the customer point of view).

• Why do we need benchmarking?

Aftermarket activities like customer satisfaction surveys and maintenance reports prove to be a valuable tool when planning the concept for a new vehicle. However, to improve the designs in a substantial and effective manner, a proper comparison should be made with a similar product either from the same company or from a competitor. This is where benchmarking proves to be a valuable and unavoidable tool. This tool, when used in a competitive environment, helps the vehicle manufacturer to strengthen or improve the potential for their vehicles.

Benchmarking- Case Study Example

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 cars

REPORT

• Considerations for benchmarking

In this case, the customer is looking for a car which serves all the purpose that is mentioned in the case statement. The considerations and inferences for selecting a suitable car can be listed as follows:

1. The customer lives in Bangalore which is a highly crowded city- a traffic friendly car can be a boon to the customer and based on the present trend, a car with an automatic gearbox can be a good option since constant manual shifting can cause discomfort while driving.
2. The customer's family consists of 5 people which means a budget hatchback might not be a good option. A compact SUV can be a good option in this case and considering the fact that the customer is fond of big cars, this seems to be a viable option
3. Once in a month, the customer makes a visit to his native place of Madurai, 500 kms away from Bangalore which is a considerable distance. Based on our previous consideration, a car with an automatic gearbox can prove to be uneconomical as mileage for automatic vehicles is less compared to manual vehicles. Keeping this consideration, it is safe to assume that the customer might be satisfied with a car having a manual gearbox and thereby provide a better mileage as compared to an automatic car.
4. Since the customer is a daily car user, specifications like, mileage, driving comfort, less maintenance, better safety standards, etc may prove to be valuable for selecting a suitable car. Driving comfort, Space for both passengers and luggage (boot space) may prove to be valuable during long drives as well, which, in this case, the customer makes once in every month.
5. The budget for the customer falls between 8-10 lakhs on road. Considering the fact that the customer is from Bangalore, let us compare some suitable options as per the above mentioned on road price range in Bangalore.

• Options for a suitable vehicle

In this study, we are comparing four cars which fall into this budget category:

1. Tata Nexon XE Petrol

2. Hyundai Venue S 1.2 Petrol

3. Mahindra XUV300 1.2 W4

4. Kia Sonet HTK 1.2

• Comparison of features- Benchmarking

1.ENGINE:

• Compared to the 4 valves/cylinder DOHC (Dual Overhead Camshaft) engine configuration present in the Hyundai Venue, Mahindra XUV300 and Kia Sonet, the 2 Valves/cylinder SOHC (Single Overhead Camshaft) engine configuration in the Tata Nexon might offer a lesser volumetric efficiency
• A DOHC engine configuration, despite all its advantages increases the kerb weight of the car and due to higher power consumption, fuel efficiency might be lesser compared to SOHC. In comparison with its competitors the Tata Nexon with its turbocharged engine produces a maximum power of 118bhp@ 5500 rpm and a maximum torque of 170 Nm@ 1750 rpm and at the same time provides a better fuel efficiency than the XUV300 and only slightly lesser than the Venue.
• While the Venue and Sonet has engines which produce similar power and torque, the XUV300 and Nexon offers better engine power at a lower price range making Tata Nexon as a good choice in this category

2.DIMENSIONS:

• While all four cars compare similarly in overall dimensions, a 2600mm wheelbase for the XUV300 makes it more spacious than its competitors.
• The Kia Sonet with its 211mm ground clearance makes it a suitable choice for dealing with bad roads and speed breakers. The Nexon with its 209mm ground clearance is just behind the Sonet in this category
• Lower heights for the Venue and Nexon ensures that body roll concerns are less compared to the other two making the ride more comfortable
• Despite being disproportionate, the Mahindra XUV 300 is a better choice in this category since it offers a good ride quality and is generous with interior space

3.TRANSMISSION:

• All four cars offer manual transmission. However, the XUV300 and Nexon offers a 6 speed gearbox making them efficient performers in comparison
• The Nexon, however has a sport mode which further helps the drive quality making it slightly edge over the XUV300 in this category
• The Tata Nexon is a good choice in this category

4.FUEL:

• The Kia Sonet outperforms all its competitors in this category making it a suitable choice
• The Nexon and Venue offers similar fuel efficiencies making them a secondary choice
• The XUV300 with its kerb weight of around 1368kg (more than its competitors) makes a much lesser fuel efficiency compared to its rivals

5.CAPACITY

• With its generous boot space of 392 litres, and a fuel tank capacity of 45 litres the Kia Sonet is a better choice in this category
• The Sonet is followed by the Nexon and Venue that offers a somewhat similar capacity
• The XUV300, however, with a much lesser boot space and fuel tank capacity is not a suitable choice while choosing a car based on this category

6.SAFETY

• A 5 star global NCAP Rating make the Nexon and XUV 300 equally good choices in this category
• Even though all four has safety systems such as overspeed warning and dual airbags, the absence of an official NCAP rating makes the Venue and Sonet poor choices in the safety category

7.PRICE

• A deal breaker for most car choices, the pricing in addition to all the features play a key role in car selection.
• In this benchmarking test, it can be clearly seen that with all the features available, the Tata Nexon with its on road price of ₹9.02lakh is a suitable choice in this category
• The Nexon is followed by the Venue and Sonet with XUV300 being the last in this category

Verdict: The Tata Nexon has more positives compared to its competitors

• Satisfying the considerations for the customer

On going through the considerations of the customer, the following can be inferred:

• Traffic friendly car for daily commuting - Tata Nexon with its comparatively smaller dimensions and decent ground clearance makes it a compact SUV fit for the customer purposes
• Once in a month journey to native place 500 kms away- A car with a decent mileage and comfortable passenger and boot space- Tata Nexon edges both XUV300 and Sonet in this choice because of the following reasons:

1. While the Sonet clearly has more boot space and mileage, a budget friendly spacious choice with a decent mileage is offered by Nexon with a superior gearbox making long drives much more comfortable and safer thanks to its 5 star NCAP rating
2. The XUV300 might be more spacious and given the customer's fondness towards big cars it could have been a viable choice. However, the Nexon offers better ground clearance, lesser chances of body roll and most importantly a better boot space and mileage making it a better choice

• A budget SUV with less maintenance- The Tata Nexon even with its SOHC engine configuration is priced much below than all its competitors making it a perfect choice for the customer.

• Final Verdict

Based on this case study, the conclusion is that the best choice of a car for the customer is Tata Nexon.

CONCLUSION

This project imparted a great deal of knowledge regarding benchmarking and provided a glimpse into the inner working of the automobile industry not just from a design point of view but also from a customer satisfaction point of view.