Benchmarking

1) What is Benchmarking?

Benchmarking is defined as the process of measuring products, services, and processes against those of the organization known to be leaders in one or more aspects of their operations. Benchmarking provides necessary insights to help you understand how your organization compares with similar organization, even if they are in a different business or have a different group of customers. By studying companies with superior performance, breaking down what makes such superior performance possible, and then comparing those processes to how your business operate, you can implement changes that will yield significant improvement.

That might mean tweaking a product’s features to more closely match a competitor’s offering, or changing the scope of services you offer, or installing a new customer relationship management (CRM) system to enable more personalized communications with customers.

Levels of Benchmarking

1. Internal Benchmarking

• Between similar processes in the same factory or branch.
• Between different factories or branch of the same organization.

2. Competitive Benchmarking

• Between different competing organization

3. Functional Benchmarking

• Between different sectors using the same process.

Case:

Mr. D.S. Pughazhyendhii is a married man who lives in Bangalore, a highly crowded city. His family members included his wife, a five-year-old boy, his father, and his mother. He visits his native place Madurai which is 500 km 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 for his family.

Benchmarking for Mr.D.S. Pughazhyendhii -

As Mr.D.S. Pughazhyendhii is fond of big cars, having 5 members in his family including him and his budget is 8 to 10 lakhs, looking for a car that should be convenient for both his office, family and long travel use, following are some of the cars that meet his requirements and one of the best in market.

• Nissan Magnite
• Hyundai Venue
• Kia Sonet
• Tata Nexon
• Maruti Suzuki Vitara Breeza

Conclusion - Based on specifications like Safety, mileage, Boot Space, Fuel Capacity, Max Power, Maximum Torque, Kerb Weight, Ground Clearance, and Dimension, I would suggest Mr.D.S. Pughazhyendhii to consider buying Tata Nexon as the car offers the best mileage and is the safest among the rivals and also offers most torque and power in the given price range. Also considering that Mr.D.S. Pughazhyendhii travels more than 500 km every month to his hometown, the electric version of Tata Nexon can help save him a fortune in terms of fuel bills.