Benchmarking

Benchmarking:-

Benchmarking is the practice of comparing business processes and performance metrics to industry bests and best practices from other companies. Quality, time, and money are the most commonly measured dimensions.

This method, also known as "best practice benchmarking" or "process benchmarking," is used in management to analyse various aspects of a company's processes in comparison to best-practice firms' processes, usually within a peer group designated for comparative reasons. This enables businesses to devise strategies for improving or adapting specific best practices, intending to improve some aspect of performance. Benchmarking can be a one-time event, but it's more commonly viewed as a continuous process in which companies strive to improve their procedures.

Procedure for Benchmarking-

1. Select a subject
2. Define the process
3. Identify potential partners
4. Identify data sources
5. Collect data and select all partners
6. Determine the gap
7. Establish process differences
8. Target future performance
9. Communicate
10. Adjust the goal
11. Implement
12. Review and recalibrate

Types of Benchmarking-

-Process benchmarking

-Financial benchmarking

-Performance benchmarking

-Product benchmarking

-Strategic Benchmarking

Aim:-

Benchmark with presently available cars in the market for the following 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, 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 fond of big cars.

Suggestions:-

1. Tata Punch

Specifications-

Mileage -18.82 KMPL

Engine -1199 cc(3 Cylinders Inline, 4 Valves/Cylinder, SOHC)

Transmission AMT - 5 Gears, Manual Override

Driving Range 696 KMS

Fuel Tank Capacity 37 Litres

NCAP Rating 5 Star (Global NCAP)

Seating Capacity 5 Seater

2. Hyundai I20

Specifications-

Mileage 20.25 KMPL

Engine 998 cc(3 Cylinders Inline, 4 Valves/Cylinder, DOHC)

Transmission Automatic (Dual Clutch) - 7 Gears Manual Override

Driving Range 749 KMS

Fuel Tank Capacity 37 Litres

NCAP Rating 3 Star (Global NCAP)

Seating Capacity 5 Seater

3. Maruti Suzuki Swift

Specifications-

Mileage 23.2 KMPL

Engine 1197 cc(4 Cylinders Inline, 4 Valves/Cylinder, DOHC)

Transmission Manual - 5 Gears

Driving Range 858 KMS

Fuel Tank Capacity 37 Litres

NCAP Rating 2 Star (Global NCAP)

Seating Capacity 5 Seater

4. Hyundai Aura

Specifications-

Mileage 21 KMPL

Engine 1197 cc(4 Cylinders Inline, 4 Valves/Cylinder, DOHC)

Transmission Manual - 5 Gears

Driving Range 777 KMS

Fuel Tank Capacity 37 Litres

NCAP Rating 2 Star (Global NCAP)

Seating Capacity 5 Seater

Conclusion:-

According to Mr. D.S. Pughazhyendhii requirements, I would suggest Tata Punch for their family, Punch is an excellent offering that is the safest car in its segment. This is justified by the Global NCAP results. The Tata Punch has achieved a 5-star safety rating for adult occupant protection and a 4-star safety rating for child occupant protection in Global NCAP's crash tests. So surely it is a value-for-money product.