Challenge

Benchmarking

AAnuvind M17 May 2022

BENCHMARKING IN AUTOMOTIVE INDUSTRIES

Benchmarking involves a structured comparison between similar products, services or processes on same 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 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 since 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

Benchmarking helps organizations to identify the areas where the gap between their standard and that of the industry is the largest. This helps organization to prioritize the areas that they need to work on

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 source of competitive advantage to team. So bench marking 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

An example of Benchmarking for the done for the following requirements of a customer is given below

Requirements

The car should be for 5 members including a baby

Must be suitable for daily use in city

Must be suitable for long rides with family

Budget 8-10 lakhs

For this we have selected four cars for benchmarking

Maruti Vitara Brezza, Hyundai Venue, Tata Nexon, Hyundai Venue, Ford ecosport

TATA NEXON

VITARA BREZZA LXI

HYUNDAI VENUE

FORD ECOSPORT

CONCLUSION

By comparing the cars according to the requirements we found Tata Nexon XM will be more suitable for the client even there is a tight competition with Hyundai venue

Because TATA NEXON have

5 Star NCAP safeties

A mileage of 17.4 kmpl

A good engine (1199cc, 3 cylinders inline, 2 valves/cylinder, SOHC) with enough power (118 bhp @ 5500 rpm)

Have air bags as well as child Seat Anchor points

Price of the car is within the budget of the customer 10 lakhs